AN OVERVIEW ON SUPPLY CHAIN MANAGEMENT OF AVERY DENNISON SRI LANKA (PVT) LIMITED

Abstract Avery Dennison Sri Lanka Ltd (ADSL) is a direct sister company of AVERY Denison Corporation (ADC) which belongs to the retail business and Information Services (RBIS) Enterprise category. ADSL started its operations in Sri Lanka in year 2010 and strategic initiatives made by ADC such as acquisition of Paxar Corporation in Year 2007 has made ADSL grow much faster and gain the current state. ADSL manufactures tags, labels, tickets and provides Solutions such as printers, software and necessary consumables to customers (especially natural and footwear sector), to help build their brands and distribute the merchandise throughout the supply chain, ADSL operates in the second largest category which contributes to ADC around and globe and ADSL contributes merely 2% to the whole business category. Despite of global economic crunch, local political instability and loss of GSP+ status in Sri Lanka, ADSL has been able to survive in the market whilst securing its Market leadership during last couple of years. Major competitive advantages such as retail brand owner (RBO) wise recognition, quality of production and the materials are high quality, International level recognition, technological advancement facilitated ADSL to survive in the market even though it depends on almost all foreign supplies where ADSL spends average 55 % of revenue for outside materials and services. ADSL maintained supplier management tools such as supplier rationalization, supplier collaboration, and supplier Audits and certificates, supplier engineering, by purchasing and volume forward booking. ADSL had outsourced Freight forward as well as cargo clearance to third parties in order to avoid the complexity of Supply Chain management. Also ADSL has adapted to new technological developments such as RFID. In order to measure the performance of the supply chain, they have been practicing certain KPIs. In recent times ADSL being able to practice certain sustainability principles in order to protect the environment as well as minimize their cost involved in supply chain. Even though there are limitations in Supply Chain management of ADSL it can be avoided by taking more concern about the supply chain activities. Key Word: Supply Chain Managemen