Study of supply chain and operations management challenges in the publications industry

Abstract

Operations and Supply chain management continue to be the biggest woes of India’s amateur retail market. The lack of complete infrastructure and flow of information are the biggest impediments in this. Absence of proper planning due to lack of information or lack of resource reliability leads to either stock outs or piling up of huge inventory. These are examples of classic bull whip effects which are common in the Indian industries. The purpose of this study is to understand the supply chain of a publishing house and to bring about operational efficiency in their supply chain. A media company ACK media has been used for this study. ACK is a modern day version of the Amar Chitra Katha comics that were famous in 1980s. The company markets over 600 SKUs all over the country through its distributor IBH and its off field sales force. However the company was saddled with three primary problems: 1. High inventory levels 2. Stock outs at the stores during peak demand 3. Lack of forecasting and poor print scheduling The aim of the study was to develop a forecasting model so that the printing schedule can be stream lined and gain insights at the retail end to give suggestions to improve the service level. Due to confidentiality of data, all numbers have been disguised. However, patterns stay the same, which would help us understand the situation in the correct fashion.