The Hindu Business Line : Electrolux spruces up supply-chain management

Armed with a strategy to boost sales and strengthen its market position, the Indian arm of Swedish white goods major, AB Electrolux, Electrolux Kelvinator Ltd (EKL), has spruced its supply-chain management.

Agreeing that its part of the company's cost rationalisation initiative, Mr Christophe Lepeltier, Vice-President, Supply-Chain, EKL, said, "The aim is to gain a good grasp of the market and then slowly and steadily work on volumes."

EKL, which recently underwent major restructuring and right-sizing, is confident that this would certainly help bring down all hidden costs. The entire supply-chain strategy of EKL is cost and margin-driven.

Commenting on the EKL initiatives, industry analysts said, "A good supply-chain management will definitely cut down costs. Shorter the supply-chain time consumption the lesser the cost. Besides, it is very crucial for being cost-competitive."

In fact, it is not only EKL, but also the whole industry, which is resorting to strengthening its supply-chain as in this industry the main cost is the material cost, industry representatives said.

To have a proper supply-chain management there is a need to have complete coordination between all departments of a company, Mr Lepeltier told Business Line. "A supply-chain has to look into the objectives and interests of all departments," he said. It includes a team effort of inventory management, forecasting, planning, and logistics.

Outlining some of the issues troubling the industry, he said, the tax structure in India is a major factor. The timely implementation of the value-added tax regime will help as it would not only bring down tax complexities, but lessen cost on warehousing as well as there will be lesser persons to track, he said.

At present, the company has 28 local godowns. "Every two months there is a review meeting with all the heads of various departments. Further, a thorough review of logistics network is also done," Mr Lepeltier, said.

The core business of the company is from North. "EKL is in the process of reworking and improving the supply-chain programme for the region. The company has developed a tool which would enable us to monitor levels of sales and stock," he said.

More Stories on : Outlook | Consumer Electronics | Supply Chain Management

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page