JK Tyre & Industries Ltd : Supply Chain Optimization

Complete planning process of JK Tyre was completely manual which led to
delays in getting relevant information like demand forecast on time, lot of
effort in compiling data which led to less time for planning. This also resulted
a disconnect between sales and operation planning, demand visibility, forecast
collaboration and inventory management. To streamline and automate planning
process of company with huge distribution network of over four plants and over
150 sales offices, different SAP modules were implemented.

SAP Statistical Demand forecasting system was implemented with an option of
moderation by the respective Area Manager, Sales Manager, GM (MKTG) and
logistics personnels. Demand Forecast is translated in to constrained base
production plan (Supply Network Planning). SNP runs for Tyre, Tube and Flaps are
done to get optimized production plan based on all the available resources,
routing, cost aspects, transportation lanes and other master information.
Production plan is converted into finished goods distribution plan from all
plants to Feeder Godown (FG) and than in turn to sales office. Based on the
demand, stock transfers from FG to respective depots covered by FGs gets
generated. Truck loads are built by system to optimize the distribution cost.
System creates transportation orders from plants to FG and from FG to depots.
SAP production planning and detailed scheduling (PPDS) is being done. This first
of its kind implementation in tyre industry in India is expected to give returns
of about 1 Crores annually with total cost of implementation 18 Crores. In
future Shop floor scheduling feature would also be implemented.