Asian Paints Drives Co-innovation with JDA to Deliver Supply Chain Transformation
|The synergy with JDA Software has enabled us to build solutions that are tailored around the specific needs of Asian Paints, thereby bringing out the best capabilities from the solutions” said Harish Lade, Asian Paints’ General Manager, Systems, referring to the long relationship between the two companies over the years|
JDA Software Group, Inc., today announced that Asian Paints, India’s leading paint company, has seen powerful supply chain performance leveraging an algorithm it co-innovated with JDA, built on the JDA® Manufacturing Planning solution. A long-time JDA customer, Asian Paints has seen huge cost savings by reducing unnecessary production and realized a 0.3 percent reduction in lost sales. Based on this success, Asian Paints is also working with JDA Labs on another innovation initiative on how to further leverage some of the factory planning capabilities for its procurement division.
Founded in 1942, Asian Paints is Asia’s fourth largest paint company. It operates in 19 countries and has 26 paint manufacturing facilities worldwide, servicing consumers in more than 65 countries. The company provides innovative solutions for decorative home improvement, industrial and automotive painting requirements. In India, Asian Paints services 45,000 retailers directly, who in turn, sells its products to home users, contractors, and painters.
For decades, Asian Paints’ decorative paints supply chain has been running at a high-efficiency level; and its operating metrics are considered an industry benchmark. In 2015, as the complexity of its supply chain increased, Asian Paints sought to further optimize its production planning capabilities for automated plants in its decorative business unit.
Asian Paints embarked on a project with JDA to jointly develop a new lot-sizing algorithm to better handle multi-level lot sizes and balance its supply chain plan across plants, while increasing planner efficiency. The new algorithm built around master planning capabilities of JDA Manufacturing Planning is being used as part of Asian Paints’ regular monthly planning cycle. The enhancement in lot-sizing logic has enabled Asian Paints to better serve its customers by providing inventory at the right place, at the right time and in the right quantity. Additionally, inventory carrying costs have decreased as a result of better production and safety-stock planning across its SKUs and plants.
“JDA solutions have been effective for us in large part due to the co-innovation initiatives between JDA and Asian Paints. This synergy has enabled us to build solutions that are tailored around the specific needs of Asian Paints, thereby bringing out the best capabilities from the solutions,” said Harish Lade, Asian Paints’ General Manager, Systems, referring to the long relationship between the two companies over the years.
“We’ve been working with JDA for a long time, and our overall experience has been very good. With this optimized solution, we anticipate great results in the future and more fulfilling solutions from JDA,” said V Subramanian, General Manager, Materials, at Asian Paints. Asian Paints recently upgraded to the latest version of JDA Factory Planner, for raw material planning, and automation of the manual work associated with its procurement process.
Extending benefits to automotive coatings
The successful partnership between JDA and Asian Paints has also extended into other parts of its business. PPG Asian Paints Pvt. Ltd, a 50:50 joint venture between Asian Paints and PPG Industries Inc., recently turned to JDA to enhance its master planning process. As one of the largest automotive coatings suppliers in India, PPG Asian Paints provides body coatings, plastic coatings, packaging coatings, and washer chemicals to two- and three-wheeler manufacturers, commercial vehicle manufacturers, tractor manufacturers, and ancillary bases, as well as the beer, beverage, and food industries.
To support the development of more granular and feasible plans across its manufacturing, procurement and distribution processes, the company implemented JDA Enterprise Supply Planning. The solution enables PPG Asian Paints to create constrained manufacturing, procurement, and distribution plans that support its make-to-stock,
make-to-order, and procure-to-order strategies. This provides greater support for forecast allocation, proration, and adjustment, as well as enables the company to prioritize customers when required – resulting in better profitability and service levels.
“Asian Paints is a superior example of a supply chain leader in its space, blazing new trails and setting an industry best practice for supply chain planning and production which has yielded impressive performance and cost reduction results in a short amount of time,” said Vishal Dhawan, Vice President, Sales, ASEAN & India, JDA. “We will continue to support and co-innovate with Asian Paints on its future endeavors to leverage the powerful capabilities within JDA Manufacturing Planning for its mission-critical global supply chain.”
- Learn how to drive enterprise supply chain agility and profitability
- Read on to learn more about Asian Paints’ success with JDA in this case study and Real Results Award video
- Learn more about JDA Manufacturing Planning solutions here
- Hear JDA’s Puneet Saxena discuss the future of manufacturing planning in this video
About JDA Software Group, Inc.
JDA Software is the leading provider of seamless supply chain planning and execution solutions for retailers, manufacturers, logistics providers and wholesale distributors. Our unmatched solution portfolio enables our clients to reduce costs, increase profitability and improve visibility so they can deliver on customer promises every time. More than 4,000 global customers run JDA, including 73 of the top 100 retailers, 71 of the top 100 consumer goods companies, and 13 of the top 16 3PLs. With JDA, you can plan to deliver.