MINI PROJECT REPORT (MED320)

SUPPLY CHAIN PERFORMANCE AND BRAND PERFORMANCE

Submitted by:2012ME20790 PULAK MEHTA

2012ME20799 SANKALP RAJORIA

Supervised by:PROF. SIDDHARTH MAHAJAN

Mechanical Engineering Department

Indian Institute of Technology Delhi
May 2015

INTRODUCTION
Supply chain management is becoming irreplaceable in today's
competitive business environment. Every company is trying to optimize
its supply chain performance to increase the value of its products. Value
can be provided in a product in various forms like price, utility, brand.
Compared to the first two parameters, brand can help increase the
profits of the company by the largest quantum.
Supply chain management are the functions within and outside a
company that enable the value chain to make products and provide
services to the customer (Cox et al., 1995). It consists of four basic
processes sourcing, operation, logistics, marketing which include
managing supply and demand, sourcing raw materials and parts,
manufacturing and assembly, warehousing and inventory tracking,
order entry and order management, distribution across all channels,
and delivery to the customer. Over the years supply chain management
has seen radical transformation in its objectives. Initially in 1950's, with
the experience from the world war, supply chain management mainly
included logistics : how to transport goods. Slowly by 1970's, due to
competition from local and international firms, it started to even
included warehousing along with logistics. These days it encompasses
many operations. Monczka and Morgan (1997) state that integrated
supply chain management is about going from the external customer
and then managing all the processes that are needed to provide the
customer with value in a horizontal way. It included planning, sourcing,
making and delivery

But the biggest ideological change is that in today's competitive

business environment, companies don't compete with each other but
their supply chains compete with each other. Factors leading to change
is the competition from companies to supply chains of the companies
can be attributed to :
1) Vertical integration by companies to increase the bottom line. Eg )
TATA Nano was able to produce car at 1 lakh due to vertical integration
possible by various companies in the TATA group
2) Competition from local as well as global players in sourcing as well as
manufacturing. Eg ) Cost of electronics have reduced significantly due
to increase manufacturing at scale from China and south east Asia
3) Maximizing performance in a single area can have negative impact at
the overall product. Eg) When Apple would be choosing its supplier, it
would prefer higher quality standard over cost due to its luxurious
appeal.
4) Constantly changing consumer preferences. Eg) Initially consumers
preferred small screen smart phones but then it changed to larger
screen. Hence, Apple had to increase the screen size of its iPhone
Due to all the above mentioned factors, companies these days are
making a constant effort to innovate and refine their supply chain to
produce the right product, at the right price, at the right place and at
the right time to the customer.
A product or a company in known by its brand. The brand has many
intangible promises of satisfaction associated with it like utility, product
quality, availability and servicing it provides to its customer ( Healey,
2008 ). Brand can add value to the product as it helps in creating an

emotional attachment to the product and give a sense of assurance to

the product. To help strengthen the brand and reach the customer at
an emotional level companies have gone far beyond the main stream
marketing communication about their product and services (Mitchell,
1999).
Companies make a serious efforts in creating a brand which includes
marketing about its products and services, making positive logo and tag
line and maximizing its P.R. reach to communicate its core values to all
its consumers. Following are examples of this branding effort :
1) Amazon.in is using "Aur Dekho" to emphasis on the largest product
variety available on its website.
2) Maruti tries to communicate itself as the leading manufacturer of
fuel efficient cars.
3) Louis Vuitton brands itself as an upscale luxurious fashion company.
All its efforts are made to emphasis on creating an luxurious, rich and
clothing line for the elite.
Creating a positive brand for a particular company can help in targeting
and servicing the needs of its customers more efficiently. This helps it in
commanding a better price than its competitor.

PROJECT OBJECTIVE
The main objectives of the project are:
i.

To study and quantify the supply chain performance of major

Indian companies.

ii.

To study and quantify the brand performance of the chosen

companies.

iii.

To try and find out any relation between supply chain performance
and brand performance.

To obtain a diverse set of organization, we have chosen 11 major

companies listed in India across 4 major sectors analyze the different
performance co-relation. The companies chosen are:
a. FMCG : HUL, ITC, Nestle India, Britannia
b. Oil : Reliance Industry, ONGC
c. Pharma : Sun Pharma, Lupin
d. Automotive : M&M, Maruti, Tata Motors

LITERATURE REVIEW
Li, Raghunathan, Raghunathan, & Rao (2006) conceptualized and developed
five dimensions of SCM practice (strategic supplier partnership, customer
relationship, level of information sharing, quality of information sharing, and
postponement) and tested the relationships between SCM practices, competitive
advantage, and organizational performance. The results indicated that higher
levels of SCM practice can lead to enhanced and improved organizational
performance. Also, competitive advantage can have a direct, positive impact on
organizational performance. This study deeply analyzed the impact of SCM
practices on organizational performance. The results of the study indicated that
both inter firm system integration and supply chain responsiveness have a direct
positive effect on brand equity.
Gunasekaran, Patel, & McGaughey (2004) created a framework for supply
chain performance measurement around supply chain activities and processes
such as plan-source-make/assemble-deliver. They believed that unless supply
chain performance is measured, it cannot be improved. Further, all participants in
the supply chain should be involved and committed to common goals, such as
customer satisfaction and enhanced competitiveness.
Glaster (2008) studied the role of branding in the value chain attempting to
demonstrate that the brand is the one mechanism that unites both the supply
and demand sides of the value chain. The author critically evaluated
design/methodology/approach - Mission, vision and transaction models as
aligning mechanisms to the value chain. He found that the brand strategy
management should be both a demand and supply chain priority, in contrast to its
general demand chain focus. This study did not empirically demonstrate the role
that the brand plays in value chain dynamics, particularly the behavior of
participants in the supply chain.

METHODOLOGY
Measuring and Ranking the Brand Performance
To measure the value of the brand we looked at the financial numbers.
The most valuable brands are ones that generate massive earnings in
industries where branding plays a major role. To determine the best
brands, we started with more than 10 national brands. Our first step in
valuing the brands was to determine earnings before interest and taxes
for each brand. We averaged those earnings over the past three years
and subtracted from earnings a charge of percentage growth rate of
the brands capital employed, figuring a generic brand should be able to
earn at least %age of growth rate on this capital. We applied the
maximum corporate tax rate in the parent companys home country to
that net earnings figure. Next, we allocated a percentage of those
earnings to the brand based on the role brands play in each industry.
(Brands are crucial when it comes to beverages and luxury goods, but
not so much, say, with airlines, when price and convenience are more
important.) To this net brand earnings number, we applied the average
price-to-earnings multiple over the past three years to arrive at the
final brand value. The ranking is done on the basis of their value.

Measuring and Ranking the Supply Chain Performance

The Financial Component consists of the 3 year Weighted Average
Return on Assets (ROA), 3 year Weighted Average Revenue Growth and
the Inventory turns.The ROA is supposed to represent overall
operational efficiency and productivity, Revenue growth gives an idea

of the market and organizational factors and innovation. The inventory

turns does not particularly give a good idea of supply chain
performance, but is widely understood and hence is still included.
COMPONENT
Financial

PARAMETER

WEIGHT IN
FINAL SCORE
Inventory Turns 30%

3 yrs. weighted 20%

Revenue
Growth

3 yrs. weighted 50%

ROA

HOW IS IT ARRIVED AT
Cost of goods
sold/Annual avg.
inventory
((change in revenue
2014-2013)*50%) +
((change in revenue
2013-2012)*30%) +
((change in revenue
2012-2011)* 20%)
((2014 net income/2014
total assets)*50%) +
((2013 net income/2013
total assets)*30%) +
((2012 net income/2012
total assets)*20)

The ranking is done on the basis of supply chain performance.

After tabulating the data between supply chain performance and brand
performance we find the correlation factor, gamma and z-score using
the following formulae

CALCULATION OF BRAND VALUE

2,158.22

NESTLE
2126.12
337.54
2,463.66
2856.78
1361
1495.78
20.42
305.44
17,918.06

RELIANCE
39813
8789
48,602.00
221596
80844
140752
21.8
30,683.94
39,925.04

50943.61
10925.89
61,869.50
136725.01
36062.34
100662.67
21.8
21,944.46

-537.44

TATA MOTOR
2382.02
2070.3
4,452.32
33692.18
13334.13
20358.05
24.51
4,989.76

30%
10%
2498.048628
31.15
77814.21

4,163.41

MARUTI
5918.8
2084.4
8,003.20
22663.1
6996.9
15666.2
24.51
3,839.79

0.57

72,223.73

41345.62

19.98

30%
10%
2069.350226

3,448.92

5491.99
863.34
6,355.33
20536.35
8678.28
11858.07
24.51
2,906.41

-0.55

224,784.00

-124265.69

37.23

30%
10%
-3337.78368

-5,562.97

SUN PHARMA
-2699.15
101.94
-2,597.21
9816.89
807.89
9009
32.92
2,965.76

0.36

79,633.78

29042.01

30.21

30%
10%
961.337587

1,602.23

LUPIN
3327.71
167.63
3,495.34
7118.44
1367.8
5750.64
32.92
1,893.11

49041.78
8373.57
57,415.35
124453.22
30575.81
93877.41
21.8
20,465.28

1,074.60

3380.31
1817.62
5,197.93
33403.53
16580.47
16823.06
24.51
4,123.33

3,441.82

5042
1861.2
6,903.20
19968.1
5845.8
14122.3
24.51
3,461.38

3,554.03

5349.09
710.81
6,059.90
17885.99
7662.13
10223.86
24.51
2,505.87

-1,521.47

748.85
85.82
834.67
7832.01
674.84
7157.17
32.92
2,356.14

717.75

1907.23
150.14
2,057.37
5402
1332.67
4069.33
32.92
1,339.62

15.65

103,987.94

12.69

14,706.78

33,543.22

M&M

BRITANNIA
611.44
63.38
674.82
858.08
660.98
197.1
20.42
40.25

30%
10%
-322.462833
10.55
-3401.98

0.70

111,527.96

ONGC

634.57

374896.11

-0.02

169,893.89

2044.48
329.95
2,374.43
3558.24
1348.76
2209.48
20.42
451.18

5,324.97

260.55
5,585.52
3277.05
6925.65
-3648.6
20.42
-745.04
30%
10%
1294.933034

136428.14

0.93

405,197.26

HUL

6,330.56

72114.82

0.48

284,873.73

30%
10%
23955.02276

30%
10%
380.743308
43.92
16722.25
0.96

75,340.93

30%
10%
10750.8384

30%
10%
3798.338472
17.92
68066.23
0.62

27,019.29

1,923.25

55.69

0.37

184,521.92

427
57.08
484.08
833.17
576.9
256.27
20.42
52.33

Year
Company
ITC
2014 PBDIT
13,561.98
Depreciation
899.92
PBIT
14,461.90
Total Asset
26260.75
Current liability
6921.52
Capital Employed
19339.23
Growth
20.42
Generic company return
3,949.07
Brand return
10,512.83
Corporate tax
30%
Interest
10%
Earning
6307.69754
P/E
28.86
Brand Value
182040.15
Market Capitilisation
253,851.50
Proportion of Brand Value
0.72
5,219.05

431.75

21.80

153868

79,620.00

233,488.00

48,250.00

9,465.00

236.02
5,455.07
2674.02
6260.09
-3586.07
20.42
-732.28

38,785.00

11,566.21

6,187.35

30%
10%
430.65

9,115.59

30.21

795.56
12,361.77
22301.5
6404.43
15897.07
20.42
3,246.18

37.23

30%
10%
-912.88

13009.87
70359.97
0.18

19.98

-33986.60
94545.78
-0.36

30%
10%
2132.42

42605.73
48430.67
0.88
0.33

343,975.53

39,811.00
11,394.00

51,205.00
66,159.00

221,596.00

21.80

155437

15.65

30%
10%
2065.09
31.15
64327.70
84978.96
0.76

30%
10%
62392.77

30%
10%
644.76
10.55
6802.21
265942.8
0.03

1.63

1032.82
131.96
1,164.78
4727.06
1193.81
3533.25
32.92
1,163.15

30%
10%
8824.07

97644.68
109690.404
0.89

-532.39

1801.55
75.72
1,877.27
7918.42
598.67
7319.75
32.92
2,409.66

30%
10%
1153.95
64263.62
66152.5
0.97

2,807.20

4344.78
576.14
4,920.92
15345.31
6721.4
8623.91
24.51
2,113.72

111977.39

30%
10%
259.05
43.92
11377.47
20148
0.56

1,799.82

3339.8
1138.4
4,478.20
16265.7
5338
10927.7
24.51
2,678.38

12.69

30%
10%
3712.41
17.92
66526.34
174536.8
0.38

3,234.67

4166.39
1606.74
5,773.13
30637.64
20280.82
10356.82
24.51
2,538.46

55.69

30%
10%
5469.35
28.86
157845.53
234435.31
0.67

3,688.52

42,102.56

53516.29
7495.92
61,012.21
117456.73
30715.22
86741.51
21.8
18,909.65

2013 PBDIT
Depreciation
PBIT
Total Asset
Current liability
Capital Employed
Growth
Generic company return
Brand return
Corporate tax
Interest
Earning
P/E
Brand Value
Market Capitilisation
Proportion of Brand Value
9,673.96

17,319.73

33,885.27

32623.55
39221.26
0.83

30.21

30%
10%
1079.89

1856.37
277.15
2,133.52
2848.6
1259.51
1589.09
20.42
324.49

37.23

72256.13
76680.58
0.94

30%
10%
1940.80

1,809.03

15.65

30%
10%
272.01

50472.55
56797.6
0.89

19.98

453.35

30%
10%
2587.45

4256.98
132447.15
0.03

30%
10%
25261.54

337.76
47.32
385.08
548.19
882.53
-334.34
20.42
-68.27

12.69

32834.70
406952.79
0.08

30%
10%
10391.84
31.15
32370.58
77116
0.42

218.25
3,906.77
3512.93
5499.42
-1986.49
20.42
-405.64

55.69

25697.35
78641.86
0.33

30%
10%
4614.36

30%
10%
272.01
43.92
11946.74
12577.4
0.95

30%
10%
1085.42
10.55
11451.15
373944.12
0.03

4,312.41

30%
10%
2587.45
17.92
46367.05
295313.06
0.16

7,690.59

30%
10%
4614.36
28.86
133170.31
186836.43
0.71

698.51
10,372.47
18817.93
5684.35
13133.58
20.42
2,681.88

2012 PBDIT
Depreciation
PBIT
Total Asset
Current liability
Capital Employed
Growth
Generic company return
Brand return
Corporate tax
Interest
Earning
P/E
Brand Value
Market Capitilisation
Proportion of Brand Value

CALCULATION OF INVENTORY
TURNAROUNDS

Year

Company
2014 Cost of raw material 2014
Annual avg. inventory 2014
Inventory turn around

ITC

HUL

BRITANNIA

NESTLE

RELIANCE
ONGC
TATA MOTOR
334283
667.26
26040.59
42932
5882.54
3862.53
7.786336532
0.113430593
6.74184796

7359.54
1.83734853

14621.7
2747.53
5.321761728

3835.34
366.86
10.45450581

4640.46
844.1
5.49752399

2013 Cost of raw material

Annual avg. inventory
Inventory turn around

12531.44
6600.2
1.898645496

13633.79
2526.99
5.395268679

3539.83
331.49
10.67854234

4059.29
735.93
5.515864281

310428
42729
7.265042477

612.89
5704.39
0.107441812

2012 Cost of raw material

Annual avg. inventory
Inventory turn around

9933.19
5637.83
1.761881788

11701.45
2516.65
4.649613574

3193.06
382.28
8.352673433

3909.06
745.58
5.242978621

279737
35955
7.780197469

656.14
5165.44
0.127024997

13,522.04

MARUTI
31495
1705.9
18.46239522

M&M
4640.46
2803.63
1.655161344

SUN PHARMA
1264.59
918.38
1.376979028

LUPIN
3223.46
1372.24
2.349049729

33764.4
4455.03
7.578938862

32721.8
1840.7
17.77682403

4059.29
2419.77
1.677551999

1077.87
868.76
1.240699388

2924.46
1330.83
2.197470751

41081.79
4588.23
8.953733793

28330.6
1796.5
15.76988589

39029.06
2358.39
16.54902709

1257.79
640.07
1.965081944

2377.44
1123.56
2.115988465

CALCULATION OF WEIGHTED REVENUE

GROWTH
Weighted revenue growth 2014

17.69764

13.00445

23.90021

15.57311

17.31135

18.77923

7.816825

ITC
32238.6
29901.27
25173.82
21458.98
18567.45
14985.81

6.683927

14.18334

11.70248

-13.3395

11.06633

12.06384

16.70184

8.558319

20,504.28

HUL
28019.13
25810.21
22116.37
19735.51
17769.12

18.010927

16.603253

13.616514

9.3921693

23.874056

17.940553

12.892551

12.321276

BRITANNIA
6307.39
5615.49
4974.19
4217.54
3404.7
3112.38

13.9667

11.92933

9.163041

12.45522

19.65765

11.15672

9.301571

8.282451

NESTLE
9854.84
9101.05
8326.55
7490.82
6260.21
5566.85

30.5568

20.32542

13.48899

26.65721

29.19339

32.93468

9.21268

8.276505

RELIANCE
390117
360297
329904
248170
192091.9
151662.8

8.836257078

10.5148472

5.470582096

-5.862478261

13.42226129

11.96414869

8.482300681

1.066124308

ONGC
83890.27
83005.33
76515.09
68338.92
60251.77
64003.99

25.17006267

2.438141241

-13.8726753

37.85021981

33.11863273

15.32885778

-17.5684853

-23.3358025

25,660.67

TATA MOTOR
34319.28
44765.72
54306.56
47088.44
35373.29

14.34854

15.37665

6.310701

41.43053

24.90202

-2.81634

22.4823

0.258558

20,729.40

MARUTI
43700.6
43587.9
35587.1
36618.4
29317.7

34.20846

29.55292

15.32649

41.55047

26.70038

35.7765

26.95978

0.166514

M&M
40508.5
40441.16
31853.52
23460.26
18516.33
13081.08

28.4360771

2.73429294

2.168438704

-33.50188312

68.42376253

29.21864994

-39.4321091

16.30868289

SUN PHARMA
2828.79
2432.14
4015.56
3107.57
1845.09
2774.65

21.42021

26.43661

26.39524

24.88882

21.8095

19.79919

32.26991

25.50884

LUPIN
8939.38
7122.51
5384.83
4494.88
3690.09
2954.7

Company
Revenue 2014
Revenue 2013
Revenue 2012
Revenue 2011
Revenue 2010
Revenue 2009

Weighted revenue growth 2013

18.10765

Change in
Revenue 2014
Change in
Revenue 2013
Change in
Revenue 2012
Change in
Revenue 2011
Change in
Revenue 2010

Weighted revenue growth 2012

CALCULATION OF WEIGHTED RETURN

ON ASSETS
2012 Weighted RoA

2013 Weighted RoA

2014 Weighted RoA

2010 Net income

Total Asset
RoA/100

2011 Net income

Total Asset
RoA/100

2012 Net income

Total Asset
RoA/100

2013 Net income

Total Asset
RoA/100

Year
Company
2014 Net income
Total Asset
RoA/100

137.9222

140.9297

136.174

18664.96
14117.7
1.322096

22385.28
15988.45
1.400091

26148.46
18817.93
1.38955

31775.8
22301.5
1.424828

ITC
34474.15
26260.75
1.312763

689.2062

851.287

874.0011

17988.32
2582.85
6.964524

20505.75
2659.52
7.71032

22384.82
3512.93
6.372122

27056.64
2674.02
10.11834

HUL
29035.22
3277.05
8.86017

686.85849

713.66288

757.47326

3378.57
825.87
4.0909223

4283.52
882.76
4.8524174

5037.51
548.19
9.1893504

5681.12
833.17
6.8186805

BRITANNIA
6334.79
858.08
7.3825168

398.4459

284.1952

311.2054

6371.13
855.41
7.448042

7560.1
2244.83
3.367783

8457.58
2848.6
2.96903

9092.63
3558.24
2.555373

NESTLE
10008.08
2856.78
3.503273

133.3354

149.4891

148.6978

199127
190861
1.043309

254465
209510
1.214572

336968
221596
1.520641

371612
233488
1.591568

RELIANCE
398641
282572
1.410759

70.26350612

71.76634161

68.75742093

63985.77
103688.25
0.617097598

71758.68
97504.43
0.735953023

84199.96
117456.75
0.716859269

88465.09
124453.22
0.710830061

ONGC
90499.19
136725
0.661906674

154.6309705

151.0288823

132.9346163

37200.78
31405.06
1.184547331

47718.51
34651.49
1.377098359

54919.24
30637.64
1.792541462

46571.65
33403.53
1.394213426

TATA MOTOR
37209.56
33669.31
1.105147685

239.4941

231.4984

209.7951

30180.6
12656.5
2.384593

37183.2
14037.7
2.64881

36545.1
16265.7
2.246759

44376.9
19968.1
2.22239

MARUTI
44505
22663.1
1.963765

200.2925

217.9789

213.2652

18825.11
10698.71
1.759568

24214.12
12634.49
1.916509

33024.91
15345.31
2.152117

41168.26
17885.99
2.301704

M&M
41553.95
20536.35
2.023434

50.04315226

42.59207762

21.36566157

2641.98
5747.47
0.459677041

6,731.06
0.490221451

3,299.71

4140.22
7918.42
0.522859358

2678.84
7832.01
0.342037357

SUN PHARMA
127.1
9816.89
0.012947074

111.1253

123.8618

129.7385

3673.99
3437.36
1.068841

4511.46
4132.12
1.091803

5388.32
4727.06
1.139888

7328.26
5402
1.356583

LUPIN
9430.97
7118.44
1.324865

CALCULATION OF WORKING CAPITAL

YEAR

2013 Current Assets

Current Liabilities
Working Capital
Annual Revenue
Days of working capital

2014 Current Assets

Current Liabilities
Working Capital
Annual Revenue
Days of working capital

1,178.45
5,684.35
-4,505.90
25173.82
-65.3319

2,596.83
6,404.43
-3,807.60
29901.27
-46.4788

3,181.26
6,921.52
-3,740.26
32238.6
-42.3466

ITC

-1,288.20
5,499.42
-6,787.62
22116.37
-112.02

-2,165.18
6,260.09
-8,425.27
25810.21
-119.148

-2,558.91
6,925.65
-9,484.56
28019.13
-123.554

HUL

-339.57
882.53
-1,222.10
4974.19
-89.6762

-26.55
576.9
-603.45
5615.49
-39.2235

-157.79
660.98
-818.77
6307.39
-47.3811

-1,064.61
1,259.51
-2,324.12
8326.55
-101.879

-956.86
1,348.76
-2,305.62
9101.05
-92.4675

-1,376.46
1,361.00
-2,737.46
9854.84
-101.389

NESTLE

49,238.00
66,159.00
-16,921.00
329904
-18.7210977

53,170.00
79,620.00
-26,450.00
360297
-26.795255

45,388.00
80,844.00
-35,456.00
390117
-33.1732275

RELIANCE

17,304.25
30,715.22
-13,410.97
76515.09
-63.9743618

73,381.33
30,575.81
42,805.52
83005.33
188.229055

-2,099.60
36,062.34
-38,161.94
83890.27
-166.039615

ONGC

-8,912.10
20,280.82
-29,192.92
54306.56
-196.20863

-6,739.40
16,580.47
-23,319.87
44765.72
-190.13997

-6,361.88
13,334.13
-19,696.01
34319.28
-209.47536

TATA MOTOR

1,986.20
5,338.00
-3,351.80
35587.1
-34.3778

1,148.40
5,845.80
-4,697.40
43587.9
-39.3355

-866.6
6,996.90
-7,863.50
43700.6
-65.6782

MARUTI

-45.9
6,721.40
-6,767.30
31853.52
-77.5445

231.19
7,662.13
-7,430.94
40441.16
-67.0676

2,051.11
8,678.28
-6,627.17
40508.5
-59.7138

M&M

2,254.47
598.67
1,655.80
4015.56
150.5063

2,030.64
674.84
1,355.80
2432.14
203.4698

1,053.53
807.89
245.64
2828.79
31.69504

SUN PHARMA

1,974.96
1,193.81
781.15
5384.83
52.9487

2,460.19
1,332.67
1,127.52
7122.51
57.78087

3,508.27
1,367.80
2,140.47
8939.38
87.39661

LUPIN

BRITANNIA

2011 Current Assets

Current Liabilities
Working Capital
Annual Revenue
Days of working capital

Year

SC PERFORMANCE
2013 Inventory Turn Around
Weighted Revenue Growth ( 3 year avg. )
Weighted RoA ( 3 year avg. )
Ranking Value

2014 Inventory Turn Around

Weighted Revenue Growth ( 3 year avg. )
Weighted RoA ( 3 year avg. )
Ranking Value

1.761882
18.10765
137.9222
73.11118

1.898645
17.69764
140.9297
74.57398

1.837349
13.00445
136.174
71.2391

ITC

4.649614
6.683927
689.2062
347.3348

5.395269
14.18334
851.287
430.0988

5.321762
11.70248
874.0011
440.9376

HUL

8.352673
18.01093
686.8585
349.5372

10.67854
16.60325
713.6629
363.3557

10.45451
13.61651
757.4733
384.5963

BRITANNIA

5.242979
13.9667
398.4459
203.5892

5.515864
11.92933
284.1952
146.1382

5.497524
9.163041
311.2054
159.0846

NESTLE

7.780197
30.5568
133.3354
75.11312

7.265042
20.32542
149.4891
80.98913

7.786337
13.48899
148.6978
79.38261

RELIANCE

0.127025
8.836257
70.26351
36.93711

0.107442
10.51485
71.76634
38.01837

0.113431
5.470582
68.75742
35.50686

ONGC

8.953734
25.17006
154.631
85.03562

7.578939
2.438141
151.0289
78.27575

6.741848
-13.8727
132.9346
65.71533

TATA MOTOR

15.76989
14.34854
239.4941
127.3477

17.77682
15.37665
231.4984
124.1576

18.4624
6.310701
209.7951
111.6984

MARUTI

16.54903
34.20846
200.2925
111.9527

1.677552
29.55292
217.9789
115.4033

1.655161
15.32649
213.2652
110.1944

M&M

1.965082
28.43608
50.04315
31.29832

1.240699
2.734293
42.59208
22.21511

1.376979
2.168439
21.36566
11.52961

SUN PHARMA

2.115988
21.42021
111.1253
60.48149

2.197471
26.43661
123.8618
67.87748

2.34905
26.39524
129.7385
70.853

LUPIN

Company

2012 Inventory Turn Around

Weighted Revenue Growth ( 3 year avg. )
Weighted RoA ( 3 year avg. )
Ranking Value

RESULTS
RANKING FOR 2014
COMPANY

BRAND RANKING

ITC
HUL
BRITANNIA
NESTLE
RELIANCE
ONGC
TATA
MOTOR
MARUTI
M&M
SUN
PHARMA
LUPIN

SUPPLY CHAIN RANKING

2
6
9
5
3
1

7
1
2
3
6
10

10
4
7

9
4
5

11
8

11
8

RANKING FOR 2013

COMPANY
ITC
HUL
BRITANNIA
NESTLE
RELIANCE
ONGC
TATA MOTOR
MARUTI
M&M
SUN PHARMA
LUPIN

BRAND RANKING
2
6
9
5
3
1
10
4
7
11
8

SUPPLY CHAIN RANKING

7
1
2
3
6
10
9
4
5
11
8

RANKING FOR 2012

COMPANY
ITC
HUL
BRITANNIA
NESTLE
RELIANCE
ONGC
TATA MOTOR
MARUTI
M&M
SUN PHARMA
LUPIN

BRAND RANKING SUPPLY CHAIN RANKING

2
7
6
1
9
2
5
3
3
6
1
10
10
9
4
4
7
5
11
11
8
8

CORELATION FACTOR
SC RANKING(X)
7
1
2
3
6
10
9
4
5
11
8
7
1
2

DIFFERENCE BETWEEN
BRAND RANKING(Y) RANKING
2
6
9
5
3
1
10
4
7
11
8
2
6
9

-5
5
7
2
-3
-9
1
0
2
0
0
-5
5
7

SQUARE OF RANKING
25
25
49
4
9
81
1
0
4
0
0
25
25
49

3
6
10
9
4
5
11
8
7
1
2
3
6
10
9
4
5
11
8

5
3
1
10
4
7
11
8
2
6
9
5
3
1
10
4
7
11
8

2
-3
-9
1
0
2
0
0
-5
5
7
2
-3
-9
1
0
2
0
0

SUM:

CORRELATION
COEFFICIENT(X,Y) =

4
9
81
1
0
4
0
0
25
25
49
4
9
81
1
0
4
0
0

594

0.900735294 = 0.9

GAMMA & Z-SCORE

COMPANY

Na (AGREEMENT) Ni(INVERSTION)

ITC

HUL

BRITANNIA

NESTLE

RELIANCE

ONGC

TATA MOTOR

MARUTI

M&M

SUN PHARMA

LUPIN

SUM

20

12

0.25

1.98

G=(sum(Na)-sum(Ni)/(sum(Na)+sum(Ni))
Z=G*sqrt(sum(Na)+sum(Ni))/33(1-G^2)

OBSERVATION
1) There was a positive correlation between supply chain performance and brand performance.
As the supply chain performance increases, the brand generally sees a positive movement in
the brand performance.

2) The correlation factor (row) comes out to be 0.9. Note : +1 implies complete linearity

3)The gamma value comes out to be 0.25.

4) Since the z-score is +1.98. The critical value for z-score for 0.05 is +-1.96, hence null
hypothesis is rejected and the given set can be accepted

5) Supply chain performance does not show lot of variation when compared from an year to
year value as but the brand performance can show a lot of variation from year to year

REFERENCES
Research Paper:
Cox, J.F., Blackstone, J.H. and Spencer, M.S. (Eds) (1995), APICS Dictionary (8th ed.), American
Production and Inventory Control Society, Falls Church, VA.
Monczka, R.M. and Morgan, J. (1997), Whats wrong with supply chain management?, Purchasing, Vol.
122 No. 1, pp. 69-73
Healy, M. (2008). What is branding: essential design handbook. Switzerland: Rotovision SA.
Mitchell, A. (1999). Out of the shadows, Journal of Marketing Management, 15(1-3), 25-42.
Li, S., Raghunathan, B., Raghunathan, T., & Subba Rao, S. (2006, April). The impact of Supply Chain
Management practices on competitive advantage and organizational performance. Omega, 34(2), 107124.
Gunasekaran, A., Patel, C., & McGaughey, R. (2004). A framework for supply chain performance
measurement [Electronic version]. International Journal of Production Economics, 87(2004), 333-347.
Glaster, S. (2008). The role of branding in the value chain. International Journal of Physical distribution
and logistics management, 38(9), 726-736.

Books :
William et al. Statistics for Business and Economics
Alan Agresti, Analysis of Ordinal Categorical Data ( Wiley Series in Probability and Statistics )

Website:
All financial data taken from moneycontrol.com