Britannia Supply Chain & Distribution

About the Company

Britannia Industries Limited is an Indian food-products corporation. Founded in 1892 and headquartered in Kolkata, it is one of India’s oldest existing companies. It is now part of the Wadia Group headed by Nusli Wadia. The company sells its Britannia and Tiger brands of biscuits, breads and dairy products throughout India and in more than 60 countries across the world. Beginning with the circumstances of its takeover by the Wadia group in the early 1990s, the company has been mired in several controversies connected to its management.

However, it enjoys a large market share and is exceedingly profitable. The company’s principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. Biscuits account for 90% of Brittania’s annual revenue. The company’s factories have an annual capacity of 433,000 tonnes. The brand names of Brittania’s biscuits include Marie Gold, Tiger, Nutrichoice, Good day, 50 50, Treat, Pure Magic, Milk Bikis, Bourbon, Nice Time and Little Hearts among others.

In 2006, Tiger, the mass market brand, realised $150.75 million in sales, including exports to the U.S. and Australia. This amounts to 20% of Britannia revenues for that year.

Introduction

In today’s rapidly changing business environment, ever greater demands are being placed on business to provide products and services quickerwith greater added value to the correct location With no relevant inventory position.

Customers want more quality, design, innovation, choice, convenience and service, and they want to spend less money, effort, time and risk. The supply chain of a company consists of different departments, ranging from procurement of materials to customer service.

Get quality help now

Prof. Finch

Verified

Proficient in: Economics

4.7 (346)

“ This writer never make an mistake for me always deliver long before due date. Am telling you man this writer is absolutely the best. ”

+84 relevant experts are online

Hire writer

Supply Chain Management means transforming a company’s “supply chain” into an optimally efficient, customer-satisfying process, where the effectively of the whole supply chain is more important than the affectivity of each individual department.

Need for Supply Chain Management

Managing uncertainty: Companies are finding difficult to predict the changes in this competitive market today. Customers are becoming competitors; competitors are becoming partners and unconventional competition is emerging.

Understanding customers: It is becoming increasingly important to understand customers’ needs and wants deeply and to translate these into unique value added business mission.

Understanding globalization of business: Globalization is a process, which cuts across national boundaries, integrating and connecting communities in new-spaces time combinations. The emergence of Internet as a global communication vehicle has had a profound impact on the business processes.

Problem Identification

The removal of the excise exemption on low-priced biscuits (costing less than Rs 5 per pack) in the 2001 Budget is bound to push up costs for the Tiger range of biscuits. Any attempt to pass on higher costs through a hike in selling prices could well trim the high growth rates hitherto enjoyed by this mass market brand. This could well mean that for the time being, Britannia will have to absorb the additional costs arising from the enhanced excise duty.

The removal of quantitative restrictions on dairy products in the latest Exim Policy, Britannia could well feel the sting of competition in its emerging dairy business as well. Apart from expanding the number of brands competing at the premium end, the removal of QRs could also make it easier for MNCs such as Nestle, which already have a presence in the domestic market, to import and sell some of their global offerings in India.

Theoretical concept

• Material Flow Diagram
• Flows in Supply Chain
• Supply Chain Business Process Integration

Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information.

Business Process Integration

a) Customer service management process: Customer service provides the source of customer information. It also provides the customer with real-time information on promising dates and product availability through interfaces with the company’s production and distribution operations.

b) Procurement process: Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a win-win relationship, where both parties benefit, and reduction times in the design cycle and product development is achieved. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers. This requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage and handling and quality assurance. Also, includes the responsibility to coordinate with suppliers in scheduling, supply continuity, hedging, and research to new sources or programmes.

c) Manufacturing flow process: The manufacturing process is produced and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes, and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency of demand to customers. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations.

Data Analysis

The Company’s principal activity is the manufacture and sale of biscuits, bread, Rusk, cakes and dairy products like cheese, butter and milk.

Britannia products are sold in over two million outlets, reaching millions of consumers who buy approximately 2.4 billion packs each year.

A management keeps Britannia going, over 100 stock-keeping units, 3000 employees over 1500 authorized whole sellers, 53 depots and 46 factories.

Launched in 1997, tiger became the largest selling Britannia biscuit brand in just four months of launch. It crossed the Rupees One billion sales mark in its very first year and growing stronger.

Britannia’s controlling stake is jointly with Groupe Danone and Nusli Wadia. Groupe Danone is one of the leading players in the world in bakery products business

Britannia strode into the 21st Century as one of India’s biggest brands and the pre-eminent food brand of the country. It was equally recognized for its innovative approach to products and marketing.

Britannia continues to dream big on its path of innovation and quality

Profit growth has been outpacing sales growth due to cost savings; Net Sales Revenue at Rs. 5500 million represents a growth of 24%.

Britannia’s gross sales turnover increased to Rs 18,179 mn in 2005-06 from Rs 16,154 mn in the previous year, registering a growth of 13%. Operating profit at Rs 1,763 mn increased by 7%, profit before tax and exceptional items at Rs. 1,958 mn declined by 19% against 2004-05.

Despite stiff competition, your Company stabilized and held its overall market share at 31.7% in volume and 38.8% in value for the last year.

As of 31st March 2006, the issued and paid up capital of Britannia amounts to 23,890,163 equity shares having a nominal value of Rs. 10/- each. The shareholder base is about 23,000 in number.

Britannia’s shares are listed at the Bombay Stock Exchange, National Stock Exchange and Calcutta Stock Exchange.

Brand Values: The success of Britannia lies in its strategy of identifying high value opportunities and capitalizing on them through relevant and differentiated brands, supported by an effective and efficient supply chain.

The fountainhead of this strategy is Brand Building, i.e. increasing consumer relevance, preference and purchase. The key drivers are availability, presence, and merchandising for brands that offer consumers a satisfying experience across a variety of consumption occasions, and price points that represent good value for money.

Interpretation

Britannia industries cover a big market share. Britannia is a global brand and it has global partners like Groupe Danone and Nusli Wadia.

Brand value of Britannia is more as compare to any other bakery industries.

As per the products categories Britannia is in biscuits, breads, and packed food.

Britannia has covered both rural and urban areas.

Britannia gives dividend and bonus to shareholders and registered in BSE, NSE stock exchange.

Britannia has wide network with big infrastructure, new technology and good customer relations.

Britannia biscuits have wide variety and flavour in biscuits than its competitors.

Suggestions

Among the factors, which have contributed the most towards growth are market related factors and IT factors like rise in e-commerce and usage of Internet.

The food and beverage industry has very small margins and is very dynamic. For this accurate supply chain information is a key measure, not just for planning, but also for operational efficiency. Britannia biscuits industries has a great opportunity to take advantage of the modern technologies available that can help it to increase the level of customer service, create new operational efficiencies, reduce risk, and increase profitability. It’s still a vastly untapped area of supply chain management.

The common factors which have contributed towards manufacturing and service both are rise in e-commerce and sourcing out. Globalisation and Liberalisation policies have benefited the service sector more than the manufacturing sector.

Improving supply chain processes requires better collaboration between retailers and suppliers. So keep good relation with them.

The customers today are not very forgiving, referring to the consequences of missed delivery schedules. If a company was able to manufacture a product with the right quality and the right price but missed on delivery, the other two got nullified. So company should deliver on right time. Services should be standardized.

Managing the supply chain was not just about transportation of goods. It was about managing the mismatch of stocks, looking at high inventory and eliminating premium freight, and managing many suppliers.

There is the need for improving infrastructure to take advantage of the wave of outsourcing.

Conclusion

The project analysis tells us that, the organizations today want value for their money. They want quality and quick services. This is because time saved is the money gained. So that organizations fulfil the requirements of the customers with high satisfaction. Britannia industries also try to give maximum satisfaction to their customers. The company’s main motive is to provide the right quality to right customer at right time with satisfaction. Company is using supply chains to control the cost.

The Britannia brand is all about eating healthy, to lead a better life. It advocates values that stand for health, hygiene, family, trust and taste. It reflects the strong link between physical and mental well-being that is so important to a person, and is typically a result of what one eats. Today, Britannia, driven by a passion for excellence, manifested by its innovative thinking, has been able to weave itself into the fabric of the consumer’s everyday life. While Britannia strives to give consumers a healthier life, the consumer on the other hand, has come to expect innovation from Britannia’s offerings – a huge challenge for the company.