case study on tushar enterprises ppt
TRANSCRIPT
![Page 1: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/1.jpg)
BY – ABHIJIT SAH (302) VIVEK RAJ (361) YOGENDRA SHARMA (362)
![Page 2: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/2.jpg)
CASE STUDY NO – 23.17
![Page 3: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/3.jpg)
TUSHAR ENTERPRISE
FMCG
Fan division
PHARMA
![Page 4: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/4.jpg)
There are three fan units in Mumbai, Nasik and panjim(Goa) manufacturing 1 million fans annually and a sales figure of INR 1000 million. The marketing and distribution network now consists of four regional warehouses 1200 dealers, 12 C&F agents, four regional offices and 12 branch offices
The pharma products are marketed and distributed through a network of four regional warehouses, 16 C&F agents, 75 stockists and more than 5500 retail outlets (pharma shops). The marketing set- up consists of four regional office and 10 branch offices(resident executives).
FMCG products are marketed through 22 C&F agents, 80 distributers, 300 sub –stockists and the retail shops (over1000). They have for regional offices and 25 branch offices for the sales administration. This division has achieved sales of INR 4000 million in 2001.
![Page 5: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/5.jpg)
Q.1. IS THIS A CASE FOR CONSOLIDATION OF THE
DISTRIBUTION SYSTEM OF THREE DIVISION INTO ONE
SYSTEM USING A FEW WAREHOUSING HUBS?
![Page 6: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/6.jpg)
ANSWER:-
Yes, the case is for consolidation of the distribution system of the three division into one system using a few warehousing hubs.
![Page 7: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/7.jpg)
Q.2 .HOW WILL YOU GO ABOUT REDES IGN ING THE WAREHOUS ING NETWORK TO SERV ICE THE CUSTOMER AND REDUCE THE OPERAT ING COST?
![Page 8: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/8.jpg)
ANSWER…. For redesigning the warehousing network to service the customer and reduce
the operating cost the following problem should be solved :-
The company hold too much inventory stock in many warehouses spread across a wider geographical area. The reason are :-
The Complex Transportation System
Historical ownership patterns
More lenient to customer satisfaction.
Delay in delivery
Cost of Warehouse is Higher
Duplication of logistic operation.
Transit Damage due to Not proper handling and packaging
Full utilisation of Warehouse space
![Page 9: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/9.jpg)
Q.3. DO THE DISTRIBUTION SYSTEMS OF THE THREE
DIVISIONS HAVE SYNERGY IN OPERATIONS IN THE MARKETS THEY ARE SERVING? COMPARE
AND CONTRAST THE OPERATING REQUIREMENTS OF THE THREE
DISTRIBUTIONS SYSTEMS.
![Page 10: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/10.jpg)
Solution- No, the distribution systems of the three divisions have not synergy in operations in the markets they are serving. In the total outbound logistics cost the ratio of transportation, warehousing & administrative cost respectively was 60:25:15 for the pharma division, 57:30:13 for the fan division and 63:20:17 for the soap division.
The outbound logistics cost for the Tushar Pharmaceuticals is 3.50 as compared to 1.75- 2.25 of the industry. For the fans it is 4.75 as compared to that of the later which is 2.75- 3.50 and for the soaps & detergents it was 7.50 as compared to 4.50 – 6.00.
Distribution of fan – 4 regional warehouses, 1200 dealers, 12 C & F agents.
Distribution of Pharma- 4 regional warehouses, 16 C & F agents, 75 stockists
Distribution of FMCG- 5 regional warehouses, 22 C& F agents, 80 distributors, 300 sub-stockists.
For the pharma products better cold warehousing are needed, therefore it have an effect on the cost as compared to other 2 types. Product handling, product packaging also are the factors which will increase the cost of the pharma inventories.
![Page 11: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/11.jpg)
Q.4. DISCUSS THE IMPLICATIONS OF
ELIMINATION OF REGIONAL WAREHOUSES FROM THE DISTRIBUTION NETWORK
AND ORGANIZING THE DISPATCHES DIRECTLY FROM
THE C & F AGENTS.
![Page 12: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/12.jpg)
Solution- The implications of elimination of regional warehouses from the distribution network and organizing the dispatches directly from the C& F agents are:
One warehouse can be eliminated in Mumbai because there are 2 factories of pharma & fans are placed, one each. Both can use a common warehouse to minimise the cost.
One from Indore also can be eliminated. It can operate all the warehousing functions in Mumbai only.
Some of the C&F agents can be reduced in all the three divisions to minimise the cost to achieve economy of scale.
Tushar Enterprises can also achieve the economy of distance through competitive strategies to achieve its objective with the customer satisfaction.
![Page 13: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/13.jpg)
Q. 5. ANALYZE THE OPTION OF OUTSOURCING THE ENTIRE LOGISTIC OPERATION TO A 3 PL FIRM.
![Page 14: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/14.jpg)
ANSWER…
Advantage and challenges of Tushar Enterprise of outsourcing the entire logistic operation to a 3 PL firm.
Advantage:- Economies of scale save on capital investments
Challenges:-
Reliable 3PL Provider And cost-effective partnership
![Page 15: Case Study on Tushar Enterprises Ppt](https://reader036.vdocuments.site/reader036/viewer/2022082309/54408f35afaf9f7c338b4825/html5/thumbnails/15.jpg)
THANK YOU !