Adopting solutions for on-demand sourcing

Group - 10

DABUR INDIA LIMITED

Group Members Mohit Jain
Karan Arora
Kartik Gupta
Manish Soni
Prateek Nagar
Srishti Gupta
Joel Braganza

DABUR An Introduction

ABOUT - DABUR
Dabur India Limited is a leading Indian consumer goods company with interests
in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods.
Beginnings in Calcutta way back in 1884 as an Ayurvedic medicines company
Dabur India Ltd has come a long way today to become a leading consumer
products manufacturer in India.
For the past 130 years, they have been dedicated to providing nature-based
solutions for a healthy and holistic lifestyle.
Through our comprehensive range of products, we touch the lives of all
consumers, in all age groups, across all social boundaries.
And this legacy has helped us develop a bond of trust with our consumers.
That guarantees you the best in all products carrying the Dabur

MISSION & VISION

MISSION
Dedicated to the health and wellbeing of every household.

VISION
To maximize shareholders value by offering superior quality nature
based products , that contribute in improving consumers life in
personal care, health care and foods.

The Case - Introduction

In 2002,Dabur initiated the change management process by introducing a
Centre-led procurement organization headed by their CPO,Mr. Jude Magima.
The company felt the need to professionalize its sourcing and procurement
activities.
To accelerate and sustain this new initiative, Dabur engaged Ariba
(consulting group).
Dabur wanted Ariba to implement a programme that was focused on reducing
costs, avoiding subjectivity, and introducing transparencies and global best
practices in its sourcing process.

The Initial Challenges

In the preliminary phase the chief objective of the Ariba engagement were cost avoidance
and transparency.
One of the biggest challenges during the initial stages was the lack of an established,
standardized, and documented sourcing process.
Another challenge, which was external-facing, was to enable its suppliers both in the rural
and urban parts of India to participate in a transparent, dynamic, and interactive
negotiation process.
Another external challenge Dabur experienced was the way to manage the diverse set of
suppliers spread across the globe.
The challeneges was associated with dealing with suppliers of different cultures,
languages and were based in different time zones throughout the world.

The Solution Initial Phase

Dabur started Aribas engagement by conducting several Ariba managed markets,
where the Ariba team assisted Dabur with data collection in category specific data
collection templates and supplier research.
Ariba also assisted Dabur by publishing a total cost Request for quotation (RFQ) and
post RFQ publication.
The first phase of spent management resulted in cost reduction, transparency, and
streamlining of the sourcing process.
Since the rollout in December of 2002, Dabur has conducted 520 sourcing projects
via Ariba Sourcing Basic with average savings of 10% across various categories.
Due to this Dabur was able to identify a better supplier base in China, South East
Asia and Eastern European counties.

The Secondary Phase

Encouraged by cost savings, the next logical move for Dabur was to focus on
category specific process Standardization, risk monitoring and mitigation,
knowledge management, and informed decision making on both budgets and
pricing.
To help achieve these goals, Dabur acquired Ariba On- Demand Sourcing
Professional in August of 2006.

The Benefits
Currently, Daburs souricng organization is centralized and its sourcing processes
are at a stage where they have been streamlined , mapped , and organized around
business outcomes.
Dabur has completed more than 340 comprehensive sourcing projects since
November of 2006 and has built a team of 20 category managers who regularly use
the tool.
Ariba Sourcing Professional has ensured improved visibility and transparency into
the entire sourcing cycle for Dabur.
It has also helped in identifying and classifying the best suppliers for key categories.
In the future, Dabur plans to use Aribas Solution for other areas such as budget
management, supplier enablement, and new employee introduction.

The test of a successful company is to further

harness energies, align priorities and re-dedicate
themselves for achieving even higher goals.
- V.C. Burman

Thank You