SUPPLY CHAIN

MANAGEMENT
NIRULA’S

 BY GROUP 1-
 SIRAJ /151

 NIHAREIKA /91

 ISHA /83
 History & Backround
 The organised retail food market is worth Rs 2,500 crore
(Rs 25 billion) per annum and is growing at 25 per cent.
 Nirula’s opened its first quick service restaurant in 1977
 Also have Bars, pastry shops, ice-cream parlours and
business hotels besides a salad bar and coffee shop
 The company has more than 64 outlets — a mix of
restaurants, delivery outlets and ice-cream parlours.
 Its condiments division and the products are sold in
1,600 outlets under the Nirula’s brand name.
 Nirula’s also owns three 3-star hotels in Delhi, Noida and
Panipat with a total of 107 rooms and expanding rapidly.
 Have a different brand identity and first mover
advantage. Thali is a special feature.
 COMPETITIVE EDGE –
BACKWARD // SELF
PRODUCTION
 The chain runs its own production
centres.
 Food production and processing
are done in-house.
 Its dairy plant takes care of the ice-
cream and cheese
 Breads, cookies and savouries are
produced at the Nirula's bakery.
 Other products manufactured out
of Nirula's own units are sauces,
syrups, ketchup, jams and
mustard.
 STRATEGIC
PLANNING
 A rough investment of Rs 100 crore
 Add another 100-150 outlets to build a pan-India brand
 The company would outsource its food products to Sky
Gourmet, an airline catering company, in which the
Malaysian firm Navis Capital Partners holds a majority
stake.
 The fast food chain has tied up with Indian Oil Corporation
to open its outlets in IOC's petrol pumps.
 It is also planning to extensively roll out its ice-cream
kiosks around the country alongside expanding its dine-in
format.
 The company also expands via the franchisee route but is
cautious to maintain quality too.
 Supply chain history
 Lack of funding & interest-2001
 No business intelligence model in supply chain system posing serious
problems in management of large logistics -2002
 Nirulas has been witnessing declining sales, a drop from roughly 67 per
cent to 20 per cent.-2003
 Snowman India, a subsidiary of Mitsubishi Electric, handle its integrated
food supply chain management .-2003
 Still supply chain that can squeeze costs, supply standardized food and
yield profits at low prices required -2005
 Nirula's was recently acquired by Mr Kuckreja and Navis (a Malaysian
private equity firm ) & invested to enhance its back-end supply chain. .
(2008-09)
 Nirula’s adds SAP to streamline SCP(Supply chain processes).
 Government boost
2009 – cold storage
 Restaurants like Nirula’s stand to benefit from the incentives
given to cold storage and refrigeration companies in this budget
to develop infrastructure for transporting agricultural produce.
 Nirula’s restaurants follow cold chain systems for their ice-
creams and other temperature -sensitive products.
 More investment allows access to more facilities, thereby
ensuring better product handling and transportation.”
 To build such facilities the budget proposes to-“To build and
operate such facilities can be fully treated as deductions for tax”.
 5-7 per cent of the total operational cost goes into managing
cold storage units.
 Eventually the costs will come down which will reduce their
transport and logistics cost.
 SAP & benefits
by - Zensar-OBT Technologies
 The creation of the online platform has given Nirula’s greater
visibility in cash flows from procurement to sales.
 Have increased clarity into food preferences across each of our
restaurants.
 Can stock our restaurants suitably and drive promotions
accordingly at each outlet, (inventory control)
 Successful in gaining vendor loyalty.
 Enabling greater enterprise wide visibility, improved operating
margins, and process transparency whilst strengthening partner
relationship.
 Fast, profitable, streamlined ,reliable, accurate ,informed and
waste free control of SCP.
 increase operational efficiency, coordinate global supply chains,
and modernize their warehouse and logistics functions
NEW SUPPLY CHAIN
MANAEMENT
 The outlets can order online thus drastically reducing order
processing time.
 The managers can monitor various kinds of reports (Productions
reports, stock status reports, exception report etc.) of all the
production units from a single window.
 Based on historical data, the production units start their daily
production keeping in mind special days (Sundays, Festival, etc) and
extra-occasional orders.
 The system automatically calculates the raw materials requirement
for each production floor based on production of each item's recipe.
This raw materials requirement is sent to raw materials store.
 CONTINUED……
 Items are then issued for production. Batch-wise monitoring of
production process is done based on production charts, plant
capacity and shifts.
 Items produced are issued to various restaurants (outlets)
based on their online orders.
 The system generates invoices for the outlets based on orders
received from them.
 Van Scheduling and Monitoring improves their logistics and
delivery handling.
 The system helps the Quality Department to maintain its
records more efficiently, monitor and control quality during
procurement, production, storage and dispatch.
THANKYOU