Bajaj Elec eyes 20% profit growth by revamping supply chain

To usher in greater efficiency and increase its profitability, consumer durable company Bajaj Electricals is revamping its supply chain.

"We are in the path of transformation and we are now in the process of revamping our entire supply chain in multi-year partnership with Vector Consulting Group using the Theory of Constraints (TOC) principles," Bajaj Electricals Executive Director R Ramakrishnan told PTI.

This will help in strengthening the entire supply chain and is expected to add 10% to the company''s revenue and 20% to its overall profit in next two years, he said.

Using TOC principle, the company aims to improve fill rates, reduce stock outs, reduce inventories, and improve dealer and vendor Return On Investment (ROI), he said.

TOC solution will help all the suppliers and channel partners substantially improve their inventory turns.

Vector Consulting Group has 21 clients like Raymonds, Westside and Landmark.

"Presently, we are in talks with 7-8 companies and are likely to add two clients to the client list in FY 12," Vector Consulting Group Founding Director Puneet Kulraj said.

The company is expecting about 60% growth in revenue in FY 12 at Rs 40 crore from Rs 25 crore estimated in FY 11, he said.