The Competitive Advantage of Britannia by Logistics and
Supply Chain Management
Matriculation number – 16010963
Introduction
globalization has widely spread
out all over the world and brought
many
benefits for international business.
Although global expansion offers
a huge number of
opportunities, it is undeniable that
there are also several
disadvantages. Among those
challenges, fierce competition is of
most concern for all business
owners. Consequently,
the effective logistics and supply
chain management that provides
the best customer
services, high quality of products
and cost-effectiveness has become
the key factor that
directly affects the survival of an
organization
globalization has widely spread
out all over the world and brought
many
benefits for international business.
Although global expansion offers
a huge number of
opportunities, it is undeniable that
there are also several
disadvantages. Among those
challenges, fierce competition is of
most concern for all business
owners. Consequently,
the effective logistics and supply
chain management that provides
the best customer
services, high quality of products
and cost-effectiveness has become
the key factor that
directly affects the survival of an
organization
In today’s rapidly changing global business environment, ever greater demands are
being placed on business to provide products and services quicker with greater added
value to the correct location and with no relevant inventory position. And, in order to
survive in today’s market; the business should be characterized by faster production
pace, shorter product life cycles, more innovative and sophisticated, and well-organized.
This adds much pressure to the supply chain and logistics usability. It should react
rapidly, efficiently, and effectively in order to respond to changes happening in the
marketplace so as to sustain, and, most importantly, to create competitive advantage.
Also, industries are now realizing that customer driven supply chain configuration helps
them to participate in achieving growth.
Logistics and Supply Chain Management
Logistics management is a supply chain management component that is used to meet
customer demands through the planning, control and implementation of the effective
movement and storage of related information, goods and services from origin to
destination. The logistics management process begins with raw material accumulation
to the final stage of delivering goods to the destination.
Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products. It involves the
active streamlining of a business's supply-side activities to maximize customer value
and gain a competitive advantage in the marketplace.
Competitive Advantage by Logistics and Supply Chain Management
In this complex connected world, LSCM is more and more recognised as a key source
of competitive advantage and differentiation. Companies strive to build powerful
logistics and supply chains that will enable them to get their products to market faster,
more efficiently and more economically than their competition. The major advantage
LSCM provides is boosting the customer service which also directly boosts the CSR of
company. Proper LSCM attains customer satisfaction as products and services are
provided to them at right location at right time and for the right price. Further, LSCM
helps company reduce their operating cost as by capacity utilization, outsourcing, asset
turn, inventory management and coordinated supply. This helps company reduce their
total supply chain cost including purchasing, production and distribution cost helping
them gain price advantage over other companies and ultimately customer satisfaction.
For instance, ZARA though their effective LSCM of employing a smart sourcing policy,
while only keeping locally the operations that enhance cost efficiency including dying,
cutting, labelling and packaging has helped them gain price advantage over others.
Also, this has boosted their delivery process as the delivery to the customers is done
within 24 hours, and with overall lead-time of 4-5 weeks, while it takes several months
for the competitors.
Attainment of CSR by Logistics and Supply Chain Management
Corporate social responsibility (CSR) is how companies manage their business
processes to produce an overall positive impact on society. It is often understood as
a voluntary commitment to certain company rules i.e. beyond state laws and standards.
CSR is closely related to the aspect of customer satisfaction in terms of place utility and
price utility i.e. if the customers of the company are able to receive their products and
services efficiently at required time, place and price.
And so, logistics and supply chain performance is considered the hidden weapon to
boost customer satisfaction and attain CSR as to increase profitability. No other part of
business can have the LSCM’s impact on reaching the customer, lowering prices, and
improving service levels; meaning effective logistics and supply chain management
creates value for both your customers and your business.
Company Profile
Britannia Industries Limited is the oldest and leading Indian food-products corporation,
established 1892. It started in an ordinary house in Kolkata with an initial investment of
Rs 295.
Today, Britannia Industries is one of India’s leading food companies with a 100 year
legacy and annual revenues in excess of Rs. 9000 Cr along with estimated market
share of 38%. Britannia is among the most trusted food brands, and manufactures
India’s favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold
which are household names in India. Britannia’s product portfolio includes Biscuits,
Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and
Yoghurt. The business operates with 13 factories and 4 franchisees selling close to 1mn
loaves daily across more than 100 cities and towns of India.
Britannia products are available across the country in close to 5 million retail outlets and
reach over 50% of Indian homes. They have a presence in more than 60 countries
across the globe including North America, Europe, Africa and South East Asia and so
on. They are the market leaders in Nepal and are in the process of investing a
manufacturing facility in the country.
Britannia takes pride in having stayed true to its credo, ‘Eat Healthy, Think Better’.
Britannia LSCM
Britannia has 4 production or manufacturing outlets which are in Delhi, Calcutta,
Chennai, Rudrapur in Uttaranchal Gwalior, which are owned by themselves and further
employees more than 4400 people. Besides its self owned units, Britannia also uses the
facility of more than 60 contract points for biscuits, breads, cakes etc where the labor
used for manufacturing is not owned by them but the technology and raw materials are
provided by Britannia itself.
Reference:
https://www.researchgate.net/publication/287813236_Supply_Chain_Management_in_Indian_F
MCG_Sector
https://www.irms360.com/blog/supply-chain-and-customer-satisfaction
https://www.ionos.com/startupguide/grow-your-business/corporate-social-responsibility/
https://www.scribd.com/doc/26812248/Britannia-Supply-Chain-Ppt
https://www.slideshare.net/kaushik45/britannias-distribution-supply-chain-management
https://www.slideshare.net/ssneha14/britannia-ppt-in-operations
https://www.business-standard.com/article/companies/britannia-launches-first-exports-only-
facility-in-gujarat-118051601178_1.html
