Operations Strategy 2020
Agenda 2016 So Far Distributjon Emerging Trends & Planning CEX Numbers Competjtjon Analysis
Many companies stop at satisfaction without going the extra mile for loyalty Differentiators: “creating the wow-factor” LOYALTY Ordinary services Exceptional services/features delivered exceptionally delivered well SATISFACTION Services delivered as expected Services meets client needs Problems are resolved as expected The basics: “eliminating defects”
Digitalization
Name : Uma Village : Somewhere in west Bengal village with no bank! Education : 5 th Grade Salary- Rs.: 9000 per month Recently invested Rs. 7500 which changed her life……… Video Conferencing Bollywood Movies Shopping Salary
Digital Life of a Consultant
Digital Life of a Consultant OTP Mobile User Digital SPO Registration OBD QR Track Distributjon Chat Self Service Apps Authentication Google Locator Payment
Supply Chain in South Asia Customer Distribution Perceived Product India Experience Strategy Availability Pakistan Sri Lanka Powered by Digitalization World Class Supply Chain T eams
India Distribution Jammu setup 2016 Roorkee OPI Noida Siliguri Guwahati Itanagar Ludhiana Lucknow Janpath RDC NE Jaipur Jasola Shillong Ranchi Dimapur Indore Ahmedabad Aizwal Kolkata Nagpur RDC East 13 Mumbai Stock locatjons Bhubaneswar Pune Hyderabad RDC West SPO’s - 1000 Bangalore Regional distribution center - 5 RDC South Chennai Oriflame branch - 8 Third party - 4 Chennai SC – Q3 Service Center - 11 Branch replaced by SC Nagpur – Q4 New Service Centers ( 1 new SCs – Nagpur 1 branch conversion – Chennai) Sub-contractors - 7 Factories : 2 OPI OHI in Roorkea and OPI in Noida
India Distribution Jammu setup 2017 Dehradun Roorkee OPI Noida Siliguri Itanagar Guwahati RDC North Ludhiana Lucknow Janpath RDC NE Jaipur Jasola Shillong Ranchi Dimapur Indore Imphal Ahmedabad Aizwal Nagpur Kolkata RDC East 09 Mumbai Stock locatjons Bhubaneswar Pune SPO’s - 1150 Hyderabad RDC West Regional distribution center - 5 Bangalore Mumbai SC- Q3 RDC South Branch replaced by SC Oriflame branch - 4 Chennai Guwahati SC - Q3 Branch replaced by SC Third party Service Center - 17 Ahmedabad SC-Q3 Branch replaced by SC ( 2 new SCs – Dehradun & Imphal 4 branch conversion – Mumbai, Branch replaced by SC Bangalore SC- Q3 Ahmedabad, Bangalore & Guwahati ) New Service Centers Dehradun- Q3 Sub-contractors - 7 Factories : 2 OPI New Service Centers Imphal- Q4 OHI in Roorkea and OPI in Noida
India Distribution Jammu setup 2018 Dehradun Roorkee OPI Noida Siliguri Guwahati Itanagar RDC North Ludhiana Lucknow Janpath RDC NE Jaipur Jasola Shillong Patna Ranchi Dimapur Indore Imphal Ahmedabad Kolkata Aizwal Nagpur RDC East 04 Mumbai Bhubaneswar Stock locatjons Pune Hyderabad SPO’s - 1300 RDC West Bangalore Regional distribution center - 4 Ludhiana– Q4 Branch replaced by SC Chennai No branches offering IS, only SC’s Janpath– Q4 Branch replaced by SC Third party Branch replaced by SC Indore– Q4 Service Center - 22 Branch replaced by SC Kolkata– Q4 ( 1 new SCs – Patna branch conversion Ludhiana , Janpath ,Indore & Kolkata) New Service Centers Patna– Q4 Sub-contractors - 7 Factories : 2 OPI OHI in Roorkea and OPI in Noida
India Distribution Jammu setup 2019 Dehradun Roorkee OPI Noida Siliguri Guwahati Itanagar RDC North Ludhiana Lucknow Janpath RDC NE Jaipur Patna Jasola Shillong Dimapur Chhattisgarh Indore Imphal Ahmedabad Aizwal Nagpur Kolkata Ranchi RDC East Surat 03 Mumbai Stock locatjons Bhubaneswar Pune SPO’s - 1450 Hyderabad RDC West Regional Distribution Centers/ Bangalore Asia Hub – 3 North, East & West Jammu TPL replaced by SC No branches offering IS, only SC’s Chennai Chhattisgarh – Q3 New Service Centers Third party Service Center - 25 New Service Centers Surat – Q3 ( 2 new SCs – Chhattjsgarh & Surat Jammu TPL conversion to SC ) Sub-contractors - 7 Factories : 2 OPI OHI in Roorkea and OPI in Noida
INDIA Distributjon & Geographical Footprint
India Distribution Jammu setup 2020 Dehradun Roorkee OPI OHI Noida Siliguri Guwahati Itanagar RDC North Ludhiana Lucknow Janpath Itanagar Jaipur Patna Jasola Shillong Dimapur Indore Chhattisgarh Imphal Ahmedabad Aizwal Nagpur Kolkata Ranchi RDC East Surat RDC West 03 Mumbai Bhubaneswar Pune Stock locatjons Hyderabad SPO’s - 1600 Bangalore Regional Distribution Centers/ Itanagar– Q3 Asia Hub – 3 North, East & West Chennai No branches offering IS, only SC’s Dimapur– Q3 Third party Aizwal– Q3 Service Center - 28 ( 2 new SCs – Chhattjsgarh & Surat Jammu TPL conversion to SC ) 1. Stock consolidation leveraged by GST’ 2. Penetration through SPOs and Service Centers, targeting Tier 2&3 Sub-contractors - 7 cities’ 3. Internal Factory to be Halal Certified Factories : 2 OPI 4. Asia Hub supporting PPA OHI in Roorkea and OPI in Noida
DISTRIBUTION VARIABLES 9.91% 9.56% 9.16% 8.66% 8.35% 100% Saving 90% 80% 5.42% 5.69% 5.36% 5.16% 5.12% 70% 60% 50% Logistic 40% 2.18% 2.23% 2.00% 1.84% 1.70% 30% 20% 1.96% 1.99% 1.80% 1.66% 1.53% 10% 0% 2016 2017 2018 2019 2020 Admin Admin Infra Logistjcs 6
UFR - All UFR - Core 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% U 40% 50% F 30% 40% R 20% 30% 10% 20% & 0% 10% 2011 2016 2017 2018 2019 2020 0% S 2011 2016 2017 2018 2019 2020 o l Sold Out ( No of Units) d Better Availability 95 O Branch conversion and reduction in RDC would lead to u 25 lesser sold outs t Consolidation of stock 23 20 PPA Project to improve UFR 18 15 Lead time reduction Safety stock 2011 2016 2017 2018 2019 2020 7
Damage/Expiry Inventory Days Damage/Expiry ( Cr ) Inventory Days 5 258 4 3 145 140 130 120 120 2 I n v 1 e n 2016 2017 2018 2019 2020 2011 2016 2017 2018 2019 2020 t o Inventory Variance (lacs) GST will enable us to minimize Warehouses and r y conversion of branches to service centres Less stock movement 22 Lesser handling of products, hence less damages 19 22 19 17 Increased inventory accuracy leading to reduction in 17 15 15 13 stock variance which in turn will lead to accurate 13 10 distribution leading to higher UFR 10 WMS Regional Hub 8 2011 2016 2017 2018 2019 2020
INDIA CEX Progressive Accessibility Trustworthy
C ustomer Experience Vision: To be Globally admired as the Most Customer Centric Company
Easy to order Shopping Experience QR Code All you have to do is SCAN Touch Screen Vending Machine At the click of your finger Makeup Wizard Smart Makeup Wizard suggestions based on Customer Skin Type, Tone & Age. Consumer Analytics Proactive Mobile Notifications based on the shopping history. Automated offers Pop-Up based on spending power trend. Suggestions based on Customer’s Demographics
Easy to Connect Relatjonship Hub OVER & ABOVE MORE THAN A SUPER-AGENTS VOICE BIOMETRICS… VIDEO CALL Revenue Generation VIP Customer Care Complex Problem Solving Business Development
Easy to Pay Payment Methods Card On Delivery Cash On Delivery E-Wallet NET Banking
Easy to Track Logistjcs Outlook Mobile tracking with real tjme notjfjcatjon Cloud Logistjcs Removal of Trade Barriers Entry Taxes, Local Body Taxes, Octroi etc. would decrease fleet downtime Procurement of higher tonnage trucks due to the new efficiencies GST will lead to a more organized logistics and transport segment Drone Deliveries
South Asia Consumer Analytics : 2020 Relationship hub Taking it to the Next Level 2019 Asia hub Service centers replaced by beauty zones 2018 Progressive: creating the WOW factor - loyalty Interactions through Voice Face Biometrics Augmented reality time Exceptional services/features offered 2017 Service programs QR Self Service ERP CS Pick empowerment Code ORIBOT System To Light Ordinary services delivered 2016 exceptionally OTP Live Chat Easy SPO Smart Order PPA to Pay Locator Box Tracking The Basics : 2015 Accessibility Satisfaction India Contact Centre, RDC, Strong S&OP, ABC Safety stock setting, setting
ENHANCING CONNECTED CUSTOMER EXPERIENCE THROUGH : What offers should you make to your customer if they if they are within proximity of your store right now?
EMERGING TRENDS
Picking Optimization E M Mobile Virtual Queuing E Reliance Jio Infocomm Limited, doing business as Jio, is a LTE R mobile network operator in India. It is a wholly owned subsidiary G of Reliance Industries headquartered in Mumbai, that provides I N wireless 4G LTE service network (without 2G/3G based services) G and is the only 100% Vo LTE operator in the country, with Cloud Logistics coverage across all 22 telecom circles in India.[3][4] T R E The services were first beta-launched to Jio's partners and N employees on 27 December 2015 on the eve of 83rd birth D anniversary of late Dhirubhai Ambani, founder of Reliance S Industries,[5][6] and later services were commercially launched Makeup Genius on 5 September 2016.
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