Asian Paints: Technology as an Enabler in Reimagining the Value Chain

Asian Paints: Technology as an Enabler in Reimagining the Value Chain
Case Code: CLOM021
Case Length: 6 Pages
Period: 1990-2020
Pub Date: 2021
Teaching Note: Available
Price: Rs.150
Organization: Asian Paints Ltd.
Industry: Chemicals
Countries: India
Themes: Supply Chain Management, Distribution, Inventory Management, Customer Relationship Management
Asian Paints: Technology as an Enabler in Reimagining the Value Chain

Abstract

The case study ‘Asian Paints: Technology as an Enabler in Reimagining the Value Chain’ describes how Asian Paints Limited (Asian Paints) used IT systems to help reinvent itself consistently over the last 4 decades. The case first focuses on how the company began to use information technologies to transform the value chain since the early 2000’s. Asian Paints initially used ERP solutions to improve raw materials procurement and to automate production. The case then touches upon how Asian Paints used various emerging technologies such as SAP’s enterprise applications, SAP HANA platform-based software, and o9 Solutions’ cloud-based, artificial intelligence platform for effective stock and dealer management.

Asian Paints used SAP Hybris enterprise application software and Customer Relationship Management (CRM) software to create a strong IT architecture that managed both the transactional and experience requirements of the company. The solutions helped Asian Paints to offer products and services as per the needs and requirements of each individual customer by gathering data from each customer touchpoint. The company also employed 3-D visualization and virtual reality technologies along with front-end applications such as the PaintTotal app and Visualizer app. Next, the case study touches upon the various initiatives taken by Asian Paints to offer support to dealers and retailers during the COVID-19 pandemic such as sanitizing dealer premises free of charge and extending credit facilities. The case ends with the future plans of Asian Paints to continue investing in Artificial Intelligence and Machine Learning to improve operations and customer experience.

Issues

  • Understand how a robust IT architecture improves value chain activities.
  • Learn how an effective dealer management initiative results in consistent growth and organizational performance.
  • Understand how industry 4.0 technologies can be leveraged to improve customer relationships and experiences.
  • Understand the importance of being empathetic to all stakeholders of an organization, especially during unprecedented situations like the COVID-19 pandemic.
  • Become aware of good inventory and supply chain management practices.


Introduction

Asian Paints Limited (Asian Paints), an Indian multinational paint company headquartered in Mumbai, reported a 62.28 per cent increase in its consolidated profit to INR12.65 billion for the third quarter ended December 31, 2020, as against a profit of INR779 billion during the same period of the previous fiscal. Revenue from operations was INR 68.86 billion, up 25.43 per cent, as against INR54.90 billion reported in the same period of the 2019-20 fiscal despite market challenges in the backdrop of the COVID-19 pandemic. “Never has supply chain visibility been central to our existence as it has been in the last 3-4 months (May-Aug 2020),” said Harish Lade, Vice President – Supply Chain, Asian Paints..

Keywords

Supply chain Management; Order fill rate; Inventory Management; Procurement; Automation; Omni-channel; Value chain; ERP Systems; Information Systems; Dealer Satisfaction; Service Operations; Channel Management;

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