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India is the 2nd largest smoking market in the

world consuming 950 billions sticks per year. e.g.

biddies, cigarettes, cigar etc.

India consume 102 billions cigarettes per year .

The cigarettes industry in India is growing at therate of 3.5% per year.

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The management of NTC has identified three

different goals for the distribution of supply chain:

To make available 45 SKUs at the 1 million

outlets to search 50 million smokers.

To ensure freshness of stocks- product shelf life 2months.

Operating a cost-effective logistic supply chain.

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7/31/2019 N-joy Tobacco Company

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The dealers place the order on branch office. TheBranch Office consolidates the dealers requirement,which is conveyed to Marketing HO and the branchoffice draws the requirement from the factory.

BranchStock requirementsOrders on factories

Dealer

Materials

Marketing HOConsolidate Requirement

Manufacturing Programme

Factories

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Yes, agreed with the proposals.

Increase the no. of transportation medium.

Recruit more people for collection of payments.

Holding the inventory for less time, maximumfor 6 days.

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For maintaining the right balance between highand low inventory to minimize cost.

Planning on whatinventory to stockand how to acquire

it

Forecastingparts/product

demand

Controllinginventory levels

Feedback measurement torevised plans and forecasts

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No, because they have a good supply chain oftheir own.

The total process is under their own control.

Third party service provider may lead to increasethe cost and damages.

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In order to meet the requirement of the channelmembers we should implement proper:

Distribution system

Transportation medium

More capacity of godowns

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We pointed out the following limitations:

Dealer can provide manipulated information to the

company.

There is no direct link between wholesales andcompany, therefore the wholesalers are not aware ofthe company policies.