*Agenda

*Case Introduction
*Past vs. Present Scenario (Economic, Customer)
*Supply Chain Management Strategy
*Dilemma
*Our Opinion

*Case Introduction
* Arun Menon

& Harish Menon First generation

Entrepreneur started SASPL Factory Automation
Industry in 1997.
* Targeted Niche Market and offered High quality
Industrial Automation Solutions .
* Were Following Efficient Supply chain Management
and are in profitable business.
* Major Partners with Panasonic Motor Company. Other
partnerships Hitachi, Sanyo ,Nidec etc.
* Have Established customers in various parts of the
country .

PRODUCTS & SERVICES

* Motion Control Products
* Control panels
* Design, Manufacture, Installation & commissioning of

custom built factory automatic products like Gantries,

Positioning stages.
CAPABILITES
* Component Level repairs
* Inhouse Mechanical & Electrical design, After sales
service.
* Turnaround time of 24 hrs after receipt of material in
servicing
* Full Fledged solution provider in factory automation
pdts along with motion controlled products

Supply Chain
* Responsive supply Chain:
* SASPL has been following efficient supply chain which

lowers the overall cost for outbound supply chain.

* Consolidation of imported items in a foreign country to
reduce Inbound supply chain costs.

Strengths in
operational elements
* Robust IT systems and procedures.
* Good customer satisfaction levels.
* Good employee satisfaction levels.
* Strong growth rate of above 25 % year on year till 2008
when it touched INR250 mn.

*Recent Challenges
* Retention of top talented employees.
* Impact of after effects of global economic slowdown.
* Depreciating value of rupee impacting imports of
machineries.
* Being responsive to a few customers that eats into
profit margins and reserves, although SASPL enters
into most preferred suppliers list of its customers.

OUT BOUND LOGISTICS DERIVATION:

OUT_BOUND
TRANSIT
LOCATION

TRANSIT TIME

COST/SHIPMENT
AIR

VARIATION VARIATION
TIME WISE PRICEWISE

LAND

AIR

LAND

Bangalore

1.00

1.00

2,000.00

Chennai

2.00

1.00

3,200.00 5,000.00

1.00

1,800.00

Coimbatore

2.00

1.00

3,500.00 5,700.00

1.00

2,200.00

Hyderabad

2.00

2.00

2,900.00 4,750.00

1,850.00

Kolkata

4.00

1.00

5,750.00 9,250.00

3.00

3,500.00

Mumbai

3.00

1.00

3,800.00 6,500.00

2.00

2,700.00

Pune

3.00

1.00

3,800.00 6,500.00

2.00

2,700.00

Ahmedabad

3.00

1.00

5,700.00 7,800.00

2.00

2,100.00

Baroda

3.00

1.00

6,000.00

New Delhi

4.00

1.00

4,800.00 8,000.00

NA

NA

2.00
3.00

NA

NA
3,200.00

So If we consider PAN India, It takes approximately a difference of 2 days

5.00
2.00
5,700.00 12,000.00
3.00
6,300.00
(20 hrs) and a cost reduction of 3000 occurs b/w Land & Air

Ludhiana

DIFFERENC
LOGISTICS
LOGISTICS
E BY
COST
MARGIN IN
COST
SENDING
PRODUCT VARIANT
THROUGH
PC
THROUGH
IT
LAND IN
AIR IN PC THROUGH
PC
AIR IN PC
AC Geared Motors
15
1.5
3.2
1.7
Frequency Drives
15
1.5
3
1.5
DC Geared motors
16
1
2.8
1.8
Step Motors & Drives
15
0.8
2.2
1.4
Digital AC Servo
18
0.9
2.6
1.7
systems
BLDC motors
15
1.1
2.75
1.65
Incremental &
18
1.4
2.4
1
Absolute encoders
Planetary gearboxes
18
1.3
2.2
0.9
PLCs & HMIs
16
1.5
0.6
-0.9
PC based multiaxis
15
1.1
2.7
1.6
controllers
CNC Controllers
15
1.2
2.6
1.4

So If we consider to send the material through Air instead of Land,

It creates an additional burden of 1.3 pc avg.

*OUR VIEWS
* Trade off between efficient/Responsive supply chain
-> In term of outbound logistics, If the delivery time is
more than 2 days, Its better to stick to Air delivery.
-> If there is a chance to position the company as the
most preferred supplier, that can result in repeat
profitable business, then we can go ahead with
following a responsive supply chain 10 % of the times.
->In general, Its better to stick with its successful
efficient supply chain that offers cost advantage.

THANK YOU