BATA INDIA LIMITED Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a small operation in Konnagar (near Calcutta) in1932. In January 1934, the foundation stone for the first building of Bata's operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification. The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata India has established itself as India's largest footwear retailer. Its retail network of 1250 stores gives it a reach/ coverage that no other footwear company can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns Bata's smart looking new stores supported by a range of better quality products are aimed at offering a superior shopping experience to its customers. And the new face of Bata India is now visible to the industry as well as its customers. Today, backed by a brand perception of experience, the company is working towards positioning itself as a vibrant and contemporary young brand. It has significantly transformed its retail formats to become more lifestyle-oriented, which has helped change consumer perceptions to a large extent. BATA INDIA - TODAY
Sells over 45 million pairs of footwear every year
Serves over 120,000 customers every day
Sells through over 1200 retail stores
Operates 5 manufacturing facilities
Employs more than 6800 people
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VISION To grow as a dynamic, innovative and market driven domestic manufacturer and distributor, with footwear as our core business, while maintaining a commitment to the country, culture and environment in which we operate MISSION To be successful as the most dynamic, flexible and market responsive organization, with footwear as its core business.
SUPPLY CHAIN MANAGEMENT OF BATA, INDIA Transformational process
In order to handle the increasing complexity of distributed industrial manufacturing systems, there is a strong demand for methods and tools that support the designer in the analysis and optimisation of flexible infrastructures for the automation of production processes. We are currently investigating how emerging standards and advanced simulation techniques can be exploited successfully in the production of custom made shoes.
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Nowadays, many different approaches, methodologies and computer aided design tools can be employed in the analysis and optimization of complex industrial systems. As a consequence, the selection of the most appropriate techniques and tools for a particular system is critical. Before making any final decision, it is necessary to investigate the functionalities offered, compliancy with existing standards, and capacity for interoperability with non-proprietary instruments. We are currently working on a methodological approach to the structured design and simulation-based analysis and optimisation of manufacturing plants. The methods and tools used during the different phases of the design are illustrated with reference to an application in the shoe manufacturing sector. In particular, we describe an innovative plant for the production of customized shoes. This plant is located at the ITIA-CNR laboratory in Vigevano (Italy) and constitutes the pilot plant of a large European research project called EUROShoe, which began in March 2001 and is scheduled to finish in June 2004.
BATA SUPPLY CHAIN:
raw materia l
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cutting depart ment
upper cutting botto m cutting
upper closin g bottom frbricati on
componet store
finishing /packing
dispatch
Raw Material Stock Bata is using its raw materials from his different suppliers. Some of the suppliers are local while some are from Indonesia. Along with their own production, they are also out sourcing for some of their products. They are keeping a check on the quality of the products from outsourcing and using their own brand name. The raw material which includes the chemicals used for making cement adhesive,rubber latex and sole (both inner and outer),cloth(bought from Bombay Dyeing) used for making upper, material used for making binding,thread and the packing cartons etc. are stocked in the warehouse. Inventory of all the above items is properly maintained with the help of a „Material stock position‟ chart made on the walls of the warehouse and a computerized inventory Database. Every department has been allocated a maximum stock limit beyond which they cannot store the raw materials for themselves. It has to be used as frequently as possible. Every fortnight, the stock and usage is reviewed. The transmission of raw material from stock warehouse to respective departments is recorded and same is done with the transmission between various departments. All this data is readily available for review to all departments and can be checked anytime. Cement And Latex Manufacturing: The cement adhesive and rubber latex are the main chemicals used to paste together the different part of a shoe, are manufactured in the plant itself. Both these materials are produced keeping in mind the exact requirements and also the correct specification, which is the right mix of chemicals to make it the best pasting element and get the desired quality.
Cutting department (Sole Pull Manufacturing) The inner and outer shoe required in the shoe are also produced in-house. Huge rubber sheets measuring 3ft.x2ft. having a thickness of approx. 2 cms. are first heated to high temperature and then placed in a curing chamber for 8 minutes where 4|Page
they are again processed at high temperature of around 170 oC. At such a high temperature the sheets expand and then sent for
vulcanization where it is
processed for 3 hrs. to set the shrinking limit of rubber. These sheets can be cut only after two weeks of vulcanization. This is known as seating process.
Making Binding: A binding is required on the outer of the shoe to bind the edges of cloth upper. This binding material is also made within the plant, using cloth. It is machne stitched onto the cloth upper. Folding, Cutting And Stamping: The cloth that forms the shoe upper is produced from Bombay Dyeing. It is first folded into huge lots and then cut into pieces of uniform sizes according to the different size lots.These cloth pieces are then stamped with what may be called a batch number and the shoe size. An example of a batch number may be “F3218422”. In this code, F represents plant code of the Faridabad factory, 321 is the code of the particular workstation and assembly line, 8 represents the year of manufacturing, 42 the week and 2 signifies the day of the week in which production has been done.This stamping particularly helps if there is a defect found out in the shoe after sale. After stamping is done ,the upper is sent for stitiching.
Stitching: The cloth received after stamping is set for stitching and making it into a proper upper of the shoe. The stitching process starts with folding of the piece and stitching it in a particular fashion to give the shape of an upper. Next, it is sent for stitching the binding onto the edges of the sgoe. After the binding on the edges has been done, the shoe is transferred further where lace holes and flips used under that are stitched onto the upper. The last step in the stitching process is to put laces into the shoe, which is done by hands. The upper of the shoe is now ready to sent for assembling process.
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Assembly (component store and packing): A fact worth noting is that the conveyer does not have a linear arrangement of workstations; rather it is an ellipsoidal conveyer with different workstations positioned all around it. At first glance, it is not easy to comprehend as to wherefrom where the process begins. However ,a closer look reveals that fully assembled shoes are hand picked away from the conveyer at one particular point on the conveyer. Despite it unconventional designe, it is a very well organized and systematic assembly line configuration where none of the employee sit idle at any point of time , thus minimizing idle time losses.
Dispatch They are their own distributers and they have their own stores all over INDIA. They have four types of store concepts.
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City Store The Bata City Store gives you unique shopping experience as it showcases the latest collections for footwear of local and international brands. The store ambience is designed to create a lifestyle store that reflects and responds to your needs and expectations. The Bata City stores are located in top shopping malls in big city centers.
Family store Bata is the world's leading family chain thanks to the wide assortment of every fashion footwear available in our stores. The products are primarily the Bata brand, with a carefully selected assortment of articles from both local and international brands.
Superstore Bata Superstore offers a wide assortment of fashion, casual and athletic for the entire family. Located primarily in urban and suburban shopping center, these spacious stores offer the best value by providing good quality shoes at great prices. Service is fast thanks to a self-selection shopping environment with qualified staff to serve and assist.
Factory store Factory stores are the largest and the most value-oriented stores of our retail chain.
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NIKE Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion making it the most valuable brand among sports businesses. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1978. The company takes its name from Nike (the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Umbro and Converse. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of "Just Do It" and the Swoosh logo. VISION STATEMENT “To carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.” MISSION STATEMENT To bring inspiration and innovation to every athlete* in the world.
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Nike have developed innovative processes and tools to move their supply chain vision toward reality. The following four elements, when taken together, form sustainable supply chain vision. Lean: Better manufacturing Green: Improving performance at every step Equitable: Toward Economic Security Empowered: Workers Unlock Value
SUPPLY CHAIN OF NIKE The raw materials like rubber, fabric and other raw materials is collected when product development or order is entered and if the product is already developed one then after collection of raw materials they are moved towards manufacturing section and then to assembled the products. After the finished good is formed that is new than the marketing of the same is done using various promotional tools. If the product is the existing one like sport shoe then it is forwarded to departmental stores from where the customer can get the product. If the order is placed through online media or if the customer visit to nike‟s branded store, the same backward procedure explained above is done. Finally, the feedback of customer is also taken into consideration during new product development and even before shoe manufacturing and assembly activity.
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Nike‟s supply chain management focused on its process innovation to do their products different from other shoe producers, continuous improvement by maintaining its relationship with its suppliers to be able to do its production process better, and execution discipline by doing things right, adhering to the corporate and governmental laws and policies (IBM and Stanford University, 2006). Nike‟s supply chain consist of all the activities, functions and facilities directly and indirectly involved in the flow and transformation of goods and services from the raw material stage, manufacturers, parts suppliers, assembly, warehouse and distribution to the end-user whose primary goal is to maximize the value and shareholder wealth of the company (Sridharan, Caines and Patterson, 2005). Nike’s supply chain had certain benefits: Costs from outsourcing allowed Nike to focus on its core competencies such as product design, marketing, and Air Sole technology. Nike‟s relationship with its 10 | P a g e
suppliers made it possible for them to have quality product with low costs due to reduced administrative and payroll costs. The flow of their products reduced time in initial design, production and distribution from sending new designs to suppliers who produces the shoe parts, to forwarding the shoe parts from suppliers to companies assembly and finally in shipping the finished products for worldwide distribution. Nike‟s diversity of 860 suppliers allowed them flexibility, faster service in cases of emergencies and quality assurance. Nike‟s technologies in transferring of data, orders, communication through internet and databases allowed them to perform and meet the needs of its customers in a timely manner and have a good inventory and monitoring control. Nike’s supply chain had some disadvantages: such as an expensive implementation of technical components; having too many suppliers can lead to losing control of inventory and operations management; a breakdown of some shoe parts suppliers can cause delay in its supply chain process; suppliers non implementation of Nike‟s Code of Conduct can once again destroy the public perception of Nike; and trend forecasts and unstable economy can affect consumers demand. According to Lim and Phillips (2008), the governance of global value chains (GVCs) dominates the political economy and management revealing that major retailers do not own manufacturing facilities and instead has contracts with multiple suppliers in less developed countries (LDCs). These retailers regularly play them against each other to attain the best price, highest quality, and quickest delivery. Although this benefits the buyer and consumers, the competitive, market-oriented GVC pushes suppliers toward lower wages and sweatshop-like labor/environmental standards. Nike‟s Future Vision restructured the supply chain by consolidating contractors into five Manufacturing Leadership Partnerships (MLPs). In contrast to competitive market-oriented contracting, MLP is similar to a collaborative partnership distinguished by a high level of interdependence underpinned by goodwill and trust. The MLP facilitated the information sharing between suppliers within the GVC. Nike‟s Future Vision partnership also addressed CSR monitoring at the contractor and component supplier levels. Nike send manufacturing expatriate technicians and a CSR team to evaluate environmental and labor conditions and rectify problems to the MLP factories. The MLPs then sent CSR officers to keep an eye on their vendors‟ operations. The suppliers had to be on Nike‟s Approved 11 | P a g e
Vendors List requiring them to observe the Code of Conduct aside from being technically qualified. Nike gave each MLP an exclusive production relationship by guaranteeing a minimum orders monthly assuring a good relationship through good and bad times and the bond is expected to last as long as Nike exists. Nike’s supply chain technology: consists of Electronic Data Interchange (EDI) which transmits the data between different companies using networks, such as VAN or the Internet; Value Added Network (VAN) is a private network provider that leases communication lines to its subscribers and the internet as the backbone for supply chain links companies to their suppliers and vice versa (Web portals) and is also used to connect with customers (Nike‟s home page); and the Enterprise Resource Planning (ERP) which is a business management system that incorporates all component of the business as well as planning, manufacturing, sales, and marketing. Internet and the web technologies can enhance effective communication. To run their supply chain, Nike‟s uses HP servers, software, and consulting services as HP‟s single platform is capable of running both UNIX and Microsoft Windows NT systems (Sridharan, Caines and Patterson, 2005). HP is able to provide Nike with the right technology needed to operate successfully its global supply chain. This technology helps Nike review its supply chain past performance, monitor current performance and predict when and how much of certain products need to be produced. The innovative opportunities of electronic commerce (e-commerce) through the internet increases information technology (IT) whose primary goal is to link the point of production effortlessly with the point of delivery or purchase. The information trail from IT allows planning, tracking and estimating lead times based on real data which is accessible in the system where managers analyze, plan activities and make decisions based on information from the entire supply chain. According to Sridharan, Caines and Patterson (2005), the key elements of a successful supply chain management are clear communications and quick responses to those communications. To be effective in its operations, the information is shared among vendors, customers and internal departments.
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BIBLIOGRAPHY BATA: 1. www.bata.com 2. http://www.google.co.in/url?sa=t&rct=j&q=supply+chain+management+of+bat a+shoes&source=web&cd=1&ved=0CDkQFjAA&url=http%3A%2F%2Fwww.b esplatniseminarskiradovi.com%2FENManagement%2FManagement%2FBata %2520Shoe%2520Organization-TermPaper.doc&ei=7GpJUePzCMmmrAeE2YDIBQ&usg=AFQjCNE1rz7iZOUI7btA R_-3NUkcc1vqfw. 3. http://books.google.co.in/books?id=A3s9mwvYISkC&pg=PA338&lpg=PA338& dq=supply+chain+management+of+bata+shoes&source=bl&ots=gJG1I4eME 6&sig=MAxS9Z9oBo03BYTULTzYgHI4r0M&hl=en&sa=X&ei=l0JJUZ7sHMq8r AevyIGYDw&ved=0CEEQ6AEwAw#v=onepage&q&f=false
NIKE: 1. www.nike.com 2. http://en.wikipedia.org/wiki/Nike,_Inc. 3. http://www.emeraldinsight.com/content_images/fig/2610360406005.png. 4. http://www.google.co.in/url?sa=t&rct=j&q=supply+chain+of+nike+shoes&sour ce=web&cd=9&cad=rja&ved=0CFgQFjAI&url=http%3A%2F%2Fdrhornsby.co m%2Fuop%2FMBA%2520550%2Fweek%25206%2FSupply%2520Chain%25 20Nike%2520wk6.doc&ei=7FdJUe2uC4PirAff7oHwBw&usg=AFQjCNFhtJHyh _mrImyZ3J7UCH8YLT_NiQ&bvm=bv.44011176,d.bmk
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