DORA CERAMIC TILES

Meeting supply Chain Challenges of Tomorrow

Presented byJimmy Sandeep Ekka Dipty Jaitly Soudip Ghosh

Summary of the case

Dora

Tiles started its operations in the year 1990 and established its first plant in the rural areas of Gujarat as an organise sector with a manufacturing capacity of 50000 sq per annum.

The

company mainly focused on the institutional sales to contractors.

The

Capacity utilization in the industry is 80 to 85 percent.

It

offers products at 30 to 40 percent cheaper prices.

Present scenario of the company

Dora The

purchased the technology from a leading Italian tiles manufacturer. company marketed its products through dealer network. sales were done directly by the Companys Sales Force.

Institutional Dora The

had a sales growth of 20 to 25 percent in the first five years of its operations and achieved a market share of 6 percent in 1995.
company invested Rs. 500 million in a new plant in Karnataka. With the latest technology involving the dry process of tiles manufacturing.
The

technology had advantages of Faster production cycle, lower rejections and lower input cost.

SWOT Analysis
STRENGTH .The only industry dealing in ceramic tiles having greater market share. .Available in various designs. WEAKNESS .Not concern with retail marketing. .They were not utilizing full capacity of the plant.
S t r e n g t h

OPPURTUNITY .Life style product. .More market growth in rural areas.

THREATHS .New entrance. .Substitutes.

1.Discuss how Dora should go about to meet the future challenges?

They

should focus on more on retailing as they have only focused on in sales.

They

have to invest more in marketing or brand promotion, and reduce cost of freight.

Invest more in logistics for smooth operation of distribution.

Contd

Company installed DRP software and online connectivity of all department with branches and the factories, so they also have to connect with dealers for up to date information

Utilization of full production capacity, as their product demand is increasing in the market.

2. How does Doras present SCM initiative has been successful in keeping pace with the environmental changes?

Role of distribution channel has diversified, through channel it

educates it customer and solving their problem.

Distribution channel working towards value addition, productivity,

channel goodwill.

Channel increases the speed of data collection, faster decision on customer service, reporting.

Report of sales from depot and payment collection on daily basis.

Contd

Inventory level has come down to 25 days as against 40 to 45 days earlier. The order cycle time reduced to 48 hrs.

Engaged in 3PL firms for primary transportation of goods from the factories to depot.

3.Discuss the various key operational, tactical, control and strategic issues in the supply chain that Dora will have to address in future?

STRATEGIC:

They have to optimize the strategic network, including the location and size of warehouse.

They have to match the organizational strategy with supply strategy.

Maintain a proper IT system. Cost cutting strategy at the right time.

TACTICAL

Transportation strategy, including frequency routes as they have fleet of vehicles for transportation. Focus in markets as there are some strong competitors and change the product according to customers demand. Market segment issue- it has to be according types of customers and their needs.

OPERATIONAL

Production scheduling. Inbound and out bound operation has to be smooth. Material flow of finish goods has to be maintained.

4. Explain the roles that logistic has to play in the coming years in the title industries?

If Company would focus on retail market then logistics has to expand.

For getting tax relaxation Dora establish his factory in rural areas. So that he had to pay a lot for the transportation.

Logistics should be easy that product can be reachable to everyone and also help in getting market share back.

It can help in reducing the wastage and emission must grow to a point where the strategy and vision of the company incorporates environmental issues.

THANK YOU..