Asian Paints Supply Chain 

Asian Paints is the largest Indian paint manufacturing company, and the paint brand generates approximately 3 or 4 times more revenue and profit than other competitive companies like Berger. The paint company has a well-developed, resilient, and adaptive supply chain network and it contributes significantly to the company’s growth and success. Today, we’ll discuss Asian Paints supply chain management; the company’s historical background, statistical facts, and key elements.

Historical Background of Asian Paints 

Asian Paints is a leading paint-manufacturing Indian multinational company. Arvind Vakil, Suryakant Dani, Chimanlal Choksi, and Champaklal Choksey established the paint company on February 01, 1942. The company’s headquarters is in Mumbai, Maharashtra, India.

Asian Paints is operating its business in the following categories;

• Paint relevant services
• Bath fitting
• Home décor goods
• Coating
• Distribution and selling of paints
• Pain manufacturing

Statistics of Asian Paints SCM

Some of the main statistical facts about Asian Paints are as follows;

• Asian Paints is operating its business in 15 countries
• The annual revenue of the Indian paint company in 2023 was 34875 Crore
• Total assets of the company in 2023 were 25,798 Crore
• Network of more than 143 company’s warehouses, and 8 factories

Supply Chain Network

The supply chain network of Asian Paints is as follows;

• Suppliers
• Plants
• Regional Distribution Centers
• Dealers
• Depots
• Retailers
• Customers

Elements of Asian Paints Supply Chain 

Some of the main elements of Asian Paints supply chain management are as follows;

Sales & Operations Planning

Many experts have pointed out that the fact that Asian Paints needs a large distribution network because there is a great demand for sales and operation planning. The company directly deals with dealers and they generate demand. However, they employ a collaborative and coordinated approach between the SC team and sales to predict the demand.

Complex Seasonality

The demand and sale of paint in the Indian market are heavily reliant on the complex seasonality. Asian Paints should keep in mind celebrations and festivities while marketing and promotion. The Indian subcontinent has diverse cultures and they celebrate cultural festivities at different times throughout the years. For instance, North and Western India celebrate Diwali in November and October; the remaining part celebrates the harvesting season in February and March. The paint company should make their product available on the shelf.

Readily Available Inventory

Stores like Mom and Pop stores have a short working capital and they keep their inventory low; they hire the SC network of the company when needed. Asian Paints makes sure to deliver the products on the same day or the next day if the destination is in the larger cities of India. The company would take two days for delivery if the destination is in the other cities.

The paint company employs the latest technology to provide a unified ordering experience to the customers. The brand has successfully launched a direct dealer model for the past two decades; the company has been running IPS (integrated planning system) since 1999 with fulfillment, production, and forecasting.

Growing Demand

The pandemic crisis pushed people to start working from home and amplified the trend of freelancing and online work. When people are working from home, they want to decorate their working space, so that they can keep on working in the appealing working space. It has increased the demand for the company’s paint. While meeting customer demands and requirements, Asian Paints should improve the working conditions of production and manufacturing facilities to make the working space safer.

Direct Supply Model

Asian Paints launched a new dealer shop model, and it helps the company to supply material directly from the company. The stores used to receive small orders from the warehouses, and now they place big orders and receive truckloads of paint from the company. Now, dealers are working closely with the new model, and it helps the company to expand and scale its business.  

Soothing Smell

The new paint smell lingers for a while in the room and people don’t like to stay in the newly painted house due to the paint smell. The company launched a new product with a soothing smell of the paint; it has allowed the company to market and promote its paint from the safety and health hygiene perspective.

Modified Formula

Asian Paints modified its formula and made its paint antibacterial and antiviral for the high contact surface. The company employs silver ion technology and it allows the paint to kill 99% of the infection-causing bacteria. However, the company promotes its paint in the supply chain as self-service by offering a kit with it in the form of a spray adapter, brush, and tray.

New Product Line

The paint kit of Asian Paints became successful and popular among customers. It helped the company to launch other relevant products in the market that are complementary to the painting and self-service.

Inventory Management

Inventory management is a big headache for manufacturing companies. It is because stock storing and management needs you to allocate employees and warehousing space. However, the excessive stock doesn’t add any revenue to the company. That’s why it is significant for the company to maintain a high inventory turnover ratio.

Conclusion: Asian Paints Supply Chain Management 

After an in-depth study of Asian Paints supply chain management; we have realized that Asian Paints is the Indian largest paint manufacturing company. If you are learning about the SCM network of Asian Paints, then you should keep in mind the abovementioned elements.