Asian Paints: Reinventing the Supply Chain

Abstract

Asian Paints is currently India’s largest and Asia’s third largest paint manufacturing company. Its supply chain strategy is a culmination of an evolution that has happened over six decades. Effective management of product variety, locating plants strategically, loyal vendor relations and excellent distribution management practices have brought tremendous efficiency and responsiveness to its supply chain. Asian Paints’ supply chain is also strengthened by its smart use of information technology, vastly improving transparency between the company, its dealers, and its suppliers. The Dealer Portal is not merely a platform to place orders but a single effective point of communication between Asian Paints and its dealer network. The postponement strategy that it has implemented through its Colour World initiative has proved to be a game changer in the industry. All of these supply chain initiatives were soon adopted by its competitors after they have noticed the benefits reaped by Asian Paints. This study will explore how Asian Paints has reinvented its supply chain from time to time to sustain its competitive advantage.