Tata Chemicals Ltd.0 A VALON C ONSULTING (10/07/03 - RO/pr) Comments for Q1FY04 ‘It is better to...

Tata Chemicals Ltd. 1

AVALON CONSULTING

(10/07/03 - RO/pr)

Comments for Q1FY04• ‘It is better to receive product specification. It is not available always.’ (Large, East,

Detergents)• ‘Purity of soda is lesser than others. Product strength less due to lesser density of the

product, which is alright in GHCL.’ (Medium, East,Detergents)• ‘Problem occurs sometimes. They send light soda ash instead of medium soda ash.’

(Large, East, Glass)• ‘Lump formation occurs sometimes and by this way quality is declined.’ (Large, East,

Glass)• ‘Company is sending lump material.’ (Medium, East, Detergents)• ‘25 kgs pack size is needed.’ (Medium, East, Detergents)• ‘Plastic packing not available.’ (Small, West, Detergents)• ‘Getting less weight package.’ (Small, West, Detergents)• ‘Only one packing is available (50 kg).’ (Small, Gujarat, Others)• ‘We want jumbo bags but they do not supply yet.’ (Large, North, Glass)• ‘In raining season lumps come.’ (Small, North, Detergents)• ‘Packing can be improved.’ (Medium, South, Others)• ‘Bags are damaged in transportation.’ (Medium, South, Others)

Product & Packaging

Comments by Endusers …1

SATISFACTION ASSESSMENT - ENDUSERS

Product and Packaging


AVALON CONSULTING

(10/07/03 - RO/pr)

Product & Packaging



Product and Packaging

Comments for Q4FY03

• ‘Lumps always form if the material is stored for some days.’ (South, East, Detergents)

• ‘Bag is attractive but should be made stronger.’ (South, East, Detergents)

• ‘Bag is not strong and gets torn by the hooks.’ (Medium, North, Silicates)

• ‘There should be 75 kg packs as well.’ (Medium, North, Detergents; Medium, North, Silicates)

Comments for Q3FY03

• ‘Tendency to form lump is more in rainy season.’ (East, Large, Silicate)

• ‘75 kg bags are preferred.’ (East, Small, Silicate)

• ‘Hooks damage the bag & reduce weight.’ (South, Silicate, Small)

• ‘Product specification should be confirmed before despatch of material.’ (East, Medium, Detergents)

Comments for Q2FY03

• ‘Material absorbs moisture very easily.’ (North, Small,Detergents)

• ‘Gunny bags of 50 kgs should be offered.’ (East, Medium, Silicate)

• ‘75 kg. Pack is not made available to us.’ (North, Small, Detergents)

• ‘Sometimes there are variations in the weight.’(East,Middle,Others)


AVALON CONSULTING

(10/07/03 - RO/pr)

Price

Comments by Endusers …1 Price


Comments for Q1FY04• ‘Price should be reduced by Rs150/ton.’ (Large, East, Detergents)• ‘We get cash discount from other companies but not from TCL. So net price is higher.’ (Medium, East,

Detergents)• ‘International soda ash is of lesser price then that of TCL.’ (Medium, East, Detergents)• ‘Tata is of high price,but Saukem of same standard is of lower price.’ (Small, East, Detergents)• ‘30 days credit is not enough for us. Atleast 60 days. Credit is needed.’ (Small, East, Detergents)• ‘Cash discount should be raised by Rs.100/ton.’ (Small, East, Silicate)• ‘Cash discount should Rs.400/ton.’ (Small, East, Silicate)• ‘Price should be decreased atleast Rs.500/ton.’ (Large, East, Glass)• ‘Quantity discount should be introduced.’ (Medium, East, Others)• ‘International price of soda ash is Rs.200/ton lower. So TCL cannot compete in international market.’

(Large, East, Glass)• ‘Credit limit should be raised by 30 days instead of present 15 days.’ (Large, East, Glass)Comments for Q4FY03• ‘Freight charge is much higher than market rates.’ (Medium, West, Silicate)• ‘Price in comparison to imports is much higher.’ (Medium, North, Glass)• ‘We get 15 days credit from the date of despatch whereas our business operates on 45-60 days

credit.’ (Medium, East, Detergents)• ‘Company asks for payment even before the goods are received by us.’ (Medium, South, Detergents)• ‘Cash discount is given but is low. No quantity discount is given.’ (Medium, Gujarat, Others)


AVALON CONSULTING

(10/07/03 - RO/pr)

Price

Comments by Endusers …2Price


Comments for Q3FY03

• ‘TCL should introduce quantity discount.’ ( East, Medium, Silicate)

• ‘Credit should be 45-60 days.’ (East, Large, Silicate)

• ‘Lead time is normally 10-15 days. It should be less.’ (West, Medium, Detergents)

• ‘TCL gives only 2% discount while GCML gives around 4%.’ (North, Medium, Glass)

Comments for Q2FY03

• ‘Price has increased by Rs.250 in the past few months.’ ( East, Medium, Detergents)

• ‘Price should be reduced by Rs.300-400 per ton.’ (East,Medium,Silicates)

• ‘They should not insist on advance payment.’ ( Gujarat, Small,Others; East,Small,Others)

• ‘They should give the revised price list on time.’ (South,Small,Others)

• ‘They have stopped giving quantity discounts altogether.’ (East,Medium,Silicate)


AVALON CONSULTING

(10/07/03 - RO/pr)

Comments for Q1FY04• ‘We want 7 days lead time. It sometimes used to be 15 days.’ (Large, East, Glass)• ‘They supply order after 45 days from the date of placing order. This should be within 7 days.’

(Small, South, Others)• ‘They don't follow the delivery schedule at all, it should be better if they supply within 7 days.’

(Medium, East, Detergents)• ‘Stock is not at all a problem.They have no accountability on supply.’ (Small, East, Detergents)• ‘They don't supply goods according to the order placed. But they send goods in less quantity.’

(Small, East, Detergents)• ‘In many areas they are not able to supply order due to the shortage of stock.’ (Small, East,

Detergents)• ‘Supporting documents get delayed.’ (Medium, West, Others)Comments for Q4FY03• ‘Delivery is normally delayed by 10 days which leads to production problems.’ (South, East,

Detergents)• ‘Delivery schedule is rarely adhered to.’ (South, West, Others)• ‘Lead time should not be more than 3 days.’ (Medium, Gujarat, Others)• ‘Very often the material is short by 2-3 kgs in bulk supplies.’ (South, East, Detergents)

Order Fulfillment


Order Fulfillment



AVALON CONSULTING

(10/07/03 - RO/pr)

Comments for Q3FY03

• ‘Shortage of delivered quantity normally occurs in rail transport.’ ( East, Medium, Others)

• ‘Since lead time is high, I need to maintain high inventory level.’ (South, Small, Silicate)

• ‘Information on order status is never given on time.’ (South, Small, Silicate)

Comments for Q2FY03

• ‘We prefer rail transport over road.’ ( East,Medium, Silicate)

• ‘TCL does not adhere to delivery schedule.’ (North,Medium,Silicates)

• ‘ Invoices and other documents are never received in time.’ (North,Medium,Silicate)

• ‘ Company does not maintain material in stock.’ (North,Medium,Silicate’)

Order Fulfillment


Order Fulfillment



AVALON CONSULTING

(10/07/03 - RO/pr)

Sales Service by Company




Comments for Q1FY04 • ‘No salesmen visit so I am not aware whether they are knowledgeable or not.’ (Medium, East, detergents)• ‘They don't inform about the market price or the condition of the market.They should inform it from time to

time.’ (Medium, East, Detergents)• ‘They can not supply goods in emergency requirement. During that period Saukem supplies it to me.’ (Small,

East, Detergents)• ‘Change in price only reported after implementation. Should inform before implementation.’

(Medium, West, Silicate)• ‘No information from the company about the price changes.’ (Medium, South, Others)• ‘I never get any material in emergency. We purchase Tata soda on black in emergency.’

(Small, North, Silicate) • ‘No resonse whenever any complaints.’ (Small, North, Detergents)

Comments for Q4FY03• ‘No one from TCL ever visits us.’ (Medium, East, Silicates)• ‘We can’t comment on the knowledge level of TCL personnel since our interaction is very limited.’ (South,

North, Detergents)• ‘They do not inform us of price changes. Whenever there is an increase in price, they lower the quantity.’

(Medium, East, Silicates)


AVALON CONSULTING

(10/07/03 - RO/pr)





Comments for Q3FY03

• ‘Company doesn’t inform us about non-availability of stock.’ (East, Medium, Detergents)

• ‘None from TCL has visited us in the last 2 years.’ (East,Medium,Silicate)

• ‘Our interaction is only with distribution. Only bills come directly from company.’ ( Gujarat, Medium,Others)

• ‘Price changes are never communicates in time.’ (All Across)

Comments for Q2FY03

• ‘ There is never any response against commercial queries.’ (East, Small, Silicate )

• ‘ We want regular visits by TCL personnel.’ (East,Medium,Silicate)

• ‘ Dealings are never done directly with company personnel.’ ( Gujarat,Small,Others)

• ‘ The company personnel should visit once a month.’ (West,Small,Detergents)

• ‘ They don't maintain stock. Therefore, delivery in emergencies is a problem.’ ( North,Small,Silicates)


AVALON CONSULTING

(10/07/03 - RO/pr)

Service by Distributors

Comments by Endusers :


Comments for Q1FY04

• ‘It is not easy to contact distributor. Distributor should keep contact with us.’ (Medium, East,

Detergents)

• ‘They don't fulfill the commitment especially about the product.’ (Medium, East, Detergents)

• ‘They don't inform about the order stands. It should be within 2 days.’ (Medium, East, Detergents)

• ‘Lack of contact. Contact only takes place at time of order placement.’ (Small, West, Others)

• ‘They are taking about 4 months to settle the claim. It should be within one month.’ (Medium, East,

Silicate)

• ‘No claim has been settled so far.This should be within 7 days.’ (Large, East, Detergents)Comments for Q4FY03• ‘For emergency supplies, we need to pay a premium.’ (Medium, Gujarat, Others)• ‘There is no communication on non-availability of stock.’ (Medium, East, Silicate)• ‘Response is not less than 7 to 10 days. Should be done in 3 days.’ (South, East, Detergents)• ‘Resolution of complaints does not happen even in years.’ (Medium, Gujarat, Glass)• ‘Distributor forces us to collect the product and ignores our claims.’ (Medium, East, Detergents)• ‘Sometimes distributor visits once only in 2-3 months.’ (Medium, East, Silicates)• ‘Distributor come only to collect cheques.’ (South, North, Detergents)



AVALON CONSULTING

(10/07/03 - RO/pr)




Comments for Q3FY03

• ‘Technical knowledge of distributor personnel is not sound.’(East,Medium,Silicate)

• ‘Distribution contacts us only for payment follow-ups.’ (East, Small, Silicate)

• ‘Claim settlement is normally delayed by 6 months.’ (East, Medium, Glass)

• ‘We are totally satisfied with the distribution.’ (South, Small, Silicate)

Comments for Q2FY03

• ‘ It is very difficult to access distributor personnel.’(East,Small,Silicates)

• ‘ It takes at least 6 months to settle distributor claims.’ (East, Medium, Others)

• ‘Communication on order status is normally late.’ (North, Small, Detergents)



AVALON CONSULTING

(10/07/03 - RO/pr)

Image

Image



Comments for Q1FY04• ‘It is an excellent company, but they need to improve then staff Medium.’ (West, Silicate)• ‘It is like a government company.’ (Large, West, Silicate)• ‘It is trustworthy.’ (Medium, South, Others)

Comments for Q4FY03• ‘Company Image in the market is good but product specifications are not always adhered

to.’ (Medium, Gujarat, Glass)

Comments for Q3FY03• ‘Image of the company is very good but service is not at par’ (Gujarat, Medium, Others)• ‘Policy changes are very frequent & not communicates’ (South, Small, Silicate) Comments for Q2 FY03• ‘There is no problem with the image. The company is respected in the market’ (All Across)


AVALON CONSULTING

(10/07/03 - RO/pr)

Comparison of Actual vs. Desired Performance

ENDUSERS QUANTIFIABLE ATTRIBUTES

TCL needs to take efforts to bridge the gap between Desired & Actual performance on most parameters

Desired Actual 1. Errors in Billing and Documentation 0 0.20 %2. Lead time from placing orders to receiving materials 5 9 - East 9 16 - West 4 6 - Gujarat 3 5 - North 5 7 - South 7 123. Credit Period 31 14 - Large 34 16 - Medium 32 14 - Small 31 144.Physical Sales contacts by Distributor Personnel (excl. payment follow up) 1 1 Nos. / week5.Physical Sales contacts by company Personnel (excl. payment follow-up) 1 0 Nos. / week6.Errors in despatches (quantity, material, etc.) 0 0.4 %7.Rejection / Returns due to quality problems 0 0.4 %8.Cash Discount 249 153 Rs/Ton

Yes: 56% Yes: 80% No: 44% No: 20%

10.Frequency of communication of order status 1 1 nos/month11.Frequency of reconciliation of accounts 2 1 nos/year12.Time taken for settlement of claims 7 11 days13.Physical sales contacts by senior TCL personnel 1 0 Nos. / year14.Complaint Resolution Time 10 17 days

9.Contractual Pricing Yes/No

Days

ParameterAverage

Unit

Days


AVALON CONSULTING

(10/07/03 - RO/pr)

82

67

7872

55

8181

6775

69

57

8182

7074 71

61

8181

70 71 7062

88

0

20

40

60

80

100

CSI across parameters

Product & Packaging

Sales Generation

Support

Order Fulfillment

Service by Company

Returns to Distributors

Trust

Sa

tis

fac

tio

n r

ati

ng

s (

%)

Sales generation support, Returns to distributors and Trust have shown increase in satisfaction levels. Order fulfillment has shown a dip in satisfaction level

SATISFACTION ASSESSMENT - DISTRIBUTORS

: 75%

: 74%

: 75% : 75%

Overall CSI

Rolling Q1FY 04

Rolling Q2FY 03

Rolling Q3FY 03

Annual Q4FY 03


AVALON CONSULTING

(10/07/03 - RO/pr)

Comments by Distributors

Product & Packaging

SATISFACTION ASSESSMENT- DISTRIBUTORS

CSI Across Parameters: Product & Packaging

Comments for Q1 FY04• ‘Many times old stock is supplied.’ (West)• ‘Due to hooks bags get torn. Eye lits or loops should be provided on bags.’ (West)• ‘For trading 75 kg should be made.’ (West)• ‘Jute bags with liner do better.’ (East)

Comments for Q4 FY03• ‘At least 10% of the weight is lost due to hooking.’ (East)• ‘Customer feedback should be considered for product specifications.’ (South)

Comments for Q3 FY03• ‘Confirmation of product specifications is not given on time’ (North)• ‘Packaging should have resale value’ (North)• ‘On an average, 2 kgs has been short in every bag for the last one month’ (East)• ‘There are many hooks in the bags’ (North)• ‘Tata Soda Ash is not suitable for manufacture of detergents’ (North)

Comments for Q2 FY03• ‘ Damage of nags and loss of material happens because of hooks’ (North)• ‘Should have 50 kg and 70 kg bags’ (South)• ‘Order despatch is never confirmed to us’ (North)


AVALON CONSULTING

(10/07/03 - RO/pr)


Sales Generation Support


CSI Across Parameters: Sales Generation Support

Comments for Q2 FY 03

• ‘Credit limit should be 30 days’ (West)

• ‘International prices are much lower’ (North)

Comments for Q3 FY03• Credit should be extended by 30 days’ (East)• ‘Response to orders should be given within 2 to 3 days’ (East)• ‘No transfer of knowledge & help in sales prospecting is provided’ (North)

Comments for Q4 FY03• ‘Price of TCL is usually higher than international price.’ (East)• ‘Cash discount schemes should be offered.’ (East)• ‘Market fluctuations should be immediately reacted to.’ (North)

Comments for Q1 FY04• ‘No credit given to us. Cheques sent with orders.’ (West)• ‘The duration of despatch to south is at times more than 30-40 days.’ (South)• ‘More market orientation is required.’ (West)• ‘Despatch details should be intimated thru auto email.’ (West)


AVALON CONSULTING

(10/07/03 - RO/pr)


Order Fulfillment


CSI Across Parameters: Order Fulfillment

Comments for Q1 FY 04• ‘Except when export is going on or rakes are being filled.’ (West)


• ‘Supply is not regular because of credit limit problem.’ (East)

• ‘Invoices & other documents are received only after 15 days.’ (North)

• ‘Quality received is not as per the demand.’ (North)


• ‘They never inform us of the despatch schedule’ (East)

• ‘Material should be delivered to us within a week but we never get it before 15 days’ (East)

• ‘Information on stock status is never provided’ (North)

Comments for Q2 FY 03• ‘Very often the quantity received is not the same as that ordered’ (East)• ‘They never revert back on queries regarding the despatch’ (East, South)• ‘Sometimes there are delays in delivery’ (North)


AVALON CONSULTING

(10/07/03 - RO/pr)

Comments by Distributors Service by Company


CSI Across Parameter:Service by Company

Comments for Q1 FY 04• ‘Difficult to get quick replies from some top personnel.’ (West)• ‘No response for written complaints at all.’ (South)• ‘Extremely poor accounting procedures.’ (South)• ‘From Jan'03 - Mar'03 credit note not settled. Also other claims are never settled on time.

Some are still pending 2-3 years.’ (South)• ‘Should be settled once in six months.’ (West)Comments for Q4 FY 03• ‘Contact with the company is largely over the phone.’ (East)• ‘Settlement of claims is never done on time.’ (North, South)Comments for Q3 FY 03• ‘Complaints are not addressed by the company’ (North)• ‘Account information is not provided on time’ (North)• ‘Visits by TCL personnel are very infrequent. We do not find them courteous’ (North)• ‘TCL is always available & replies are very prompt’ (South)Comments for Q2 FY 03• ‘TCL person should visit us every week’ (East)• ‘Claims are usually not settled in reasonable time’ (East)• ‘Some of our very old claims are still pending’ (North)


AVALON CONSULTING

(10/07/03 - RO/pr)


Returns to Distributors


CSI Across Parameters: Returns to Distributor

Comments for Q1 FY 04• ‘In order to match price with other companies we are forced to give some part from our commission.’

(Gujarat)• ‘Incentives when and if given are very small or nothing at all for the work put in.’ (West)• ‘We were told that incentive will be given but to date no such incentive was passed on achieving of

target.’ (South)• ‘Minimum fixed commission should not be co-related with any quantitative sales condition.’ (West)


• ‘Profit earned from TCL is much lower than other companies.’ (East)

• ‘No targets are given to us.’ (East)


• ‘Profit / ton should be Rs. 2.50 instead of Rs. 1.75 / ton’ (East)

• ‘Target based incentives are required but never given’ (All across)


• ‘Volumes are very low therefore we are not making enough profit’ (East)

• ‘We have never received any incentives based on targets. It should be given to improve performance’

(North)


AVALON CONSULTING

(10/07/03 - RO/pr)


Trust


CSI Across Parameters: Trust


• ‘The image of the company is going down in our view.’ (South)

Comments for Q4 FY 03• ‘Training should be done on a periodic basis.’ (East)


• ‘No training support from TCL to manage the business’ (North)

• ‘Association with Tatas is a matter of pride’ (South)

• ‘Though we have been losing business in the past, the company has not provided any

help to enhance our business” (East)


• ‘Training support is very important. It shows company’s concern. (East)

• ‘ No Training activities are conducted ’ (Across)


AVALON CONSULTING

(10/07/03 - RO/pr)

Comparison of Actual vs. Desired Performance

TCL needs to take efforts to bridge the gap between the desired and actual performance on ‘Lead time’, ‘Frequency of contacts by senior TCL personnel’ and ‘Credit Period’

ANALYSIS OF QUANTIFIABLE ATTRIBUTES - DISTRIBUTORS

Desired Actual 1.Number of joint distributor meetings by TCL 2 1 Nos. per annum2.Errors in Billing and Documentation 0 0 %3.Errors in despatches (quantity, material, etc.) 0 0 %4.Lead time from placing orders to despatching material 4 6 Days5.Lead time from despatching material to delivery 4 5 Days6.Frequency of contacts by TCL 2 1 Nos. per week7.Frequency of contacts by senior TCL personnel 6 1 Nos. per annum8.Credit Period 31 14 Days9.Contractual pricing (incl. Future prices) 1 2 Yes/No10.Return on Investment (ROI) 5 2 %

ParameterAverage

Unit

Tata Chemicals Ltd.0 A VALON C ONSULTING (10/07/03 - RO/pr) Comments for Q1FY04 ‘It is better to...

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