Supply Chain Management Solution for Hindustan Unilever : Case Study
Supply Chain Management Solution for Hindustan Unilever : Case Study Existing Situation
With nearly 1000 products, HLL distributes them nationally through a network of four warehouses, more than 40 agents, 7,500 wholesalers and a number of large institutional customers.
HLL, in its endeavor to move from the existing push-based planning system to a pull-based system, wanted to build a Supply Chain Management (SCM) solution that would ensure informed decisions are made during procurement, manufacturing, replenishment and distribution. Specifically, the distribution operation was suffering because of a high margin of errors. There were frequent instances of excess finished-goods inventory reaching HLL’s distribution centers. This problem was compounded by increasing instances of out-of-stock inventory, which led to demand-supply mismatches. Finally, the system was not able to handle the dynamic nature of the company’s source-destination network, and adversely affected the demand-fulfillment rates.
HLL needed a solution that could provide visibility across its supply chain. Considering the diverse nature of the company’s customer base, the solution needed to prioritize the demand-fulfillment process based on individual profiles. The company also required precise vehicle loading plans for the source-destination lane in tune with its dynamic network.
Tool Selection
In an effort to streamline its distribution network, HLL initiated a comprehensive project to seamlessly integrate its supply chain and promote collaboration. The key objectives of the initiative were:
Implementation of a Supply Chain Planning and Optimization Tool. Development and implementation of a Web-enabled solution to extend visibility across the company’s network of wholesalers.
Adexa’s iCollaboration Suite 5.0 (Supply Chain Planner and Strategic Planner) was selected as the tool for production, distribution and materials functions. The Supply Chain Planner’s (SCP) powerful
With nearly 1000 products, HLL distributes them nationally through a network of four warehouses, more than 40 agents, 7,500 wholesalers and a number of large institutional customers.
HLL, in its endeavor to move from the existing push-based planning system to a pull-based system, wanted to build a Supply Chain Management (SCM) solution that would ensure informed decisions are made during procurement, manufacturing, replenishment and distribution. Specifically, the distribution operation was suffering because of a high margin of errors. There were frequent instances of excess finished-goods inventory reaching HLL’s distribution centers. This problem was compounded by increasing instances of out-of-stock inventory, which led to demand-supply mismatches. Finally, the system was not able to handle the dynamic nature of the company’s source-destination network, and adversely affected the demand-fulfillment rates.
HLL needed a solution that could provide visibility across its supply chain. Considering the diverse nature of the company’s customer base, the solution needed to prioritize the demand-fulfillment process based on individual profiles. The company also required precise vehicle loading plans for the source-destination lane in tune with its dynamic network.
Tool Selection
In an effort to streamline its distribution network, HLL initiated a comprehensive project to seamlessly integrate its supply chain and promote collaboration. The key objectives of the initiative were:
Implementation of a Supply Chain Planning and Optimization Tool. Development and implementation of a Web-enabled solution to extend visibility across the company’s network of wholesalers.
Adexa’s iCollaboration Suite 5.0 (Supply Chain Planner and Strategic Planner) was selected as the tool for production, distribution and materials functions. The Supply Chain Planner’s (SCP) powerful