abhishreshthaa
Abhijeet S
HLL distribution system is the best amongst FMCG companies.
At present, HLL's products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. Extending availability Data on rural consumer buying behaviour indicates that the rural retailer influences 35% of purchase occasions.
Therefore, sheer product availability can determine brand choice, volumes and market share.
HLL used the principle of project stream line .The principle of Project Streamline is to leverage our scale and organizational synergy to increase reach in rural markets.
The pivot of Streamline is the Rural Distributor (RD), who has15-20 rural sub-stockiest attached to him. Each of these sub-stockiest is located in a rural market. The sub-stockiest then performs the role of driving distribution.
Project Streamline was conceptualized to significantly enhance control on the rural supply chain through a network of rural sub-stockiest, who are based in these very villages.
As part of the project, higher quality servicing, in terms of frequency, credit and full-line availability, would be provided to rural trade. Thereby, giving us a substantial competitive edge over the next decade
The role performed by the Redistribution Stockiest has also undergone changes over the years.
Financing stocks, providing manpower, providing service to retailers, implementing promotional activities, extending indirect coverage, reporting sales and stock data, screening for transit damages are some of the functions performed by the RS today.
The RS was required to provide the distribution units to the company salesman. The RS financed his stocks and provided warehousing facilities to store them. The RS also undertook demand stimulation activities on behalf of the company.
The RS would be able to provide customer service only if he was serviced well. This knowledge led to the establishment of the "Company Depots" system. This system helped in transshipment, bulk breaking, and as a stock point to minimize stock-outs at the RS level.
In the recent past, a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer stock-points to ensure that stock-outs did not take place.
The C&FA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery. The most important benefit has been improved customer service to the RS.
Certain C&FAs were selected across the country to act as mother depots. Each of them has a minimum number of JIT depots attached for stock
requirements. All brands and packs required for the set of markets which the MD and JITs service in a given area are sent to the mother depot by all manufacturing units. The JITs draw their requirements from the MD on a weekly or bi-weekly basis.
At present, HLL's products, manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. Extending availability Data on rural consumer buying behaviour indicates that the rural retailer influences 35% of purchase occasions.
Therefore, sheer product availability can determine brand choice, volumes and market share.
HLL used the principle of project stream line .The principle of Project Streamline is to leverage our scale and organizational synergy to increase reach in rural markets.
The pivot of Streamline is the Rural Distributor (RD), who has15-20 rural sub-stockiest attached to him. Each of these sub-stockiest is located in a rural market. The sub-stockiest then performs the role of driving distribution.
Project Streamline was conceptualized to significantly enhance control on the rural supply chain through a network of rural sub-stockiest, who are based in these very villages.
As part of the project, higher quality servicing, in terms of frequency, credit and full-line availability, would be provided to rural trade. Thereby, giving us a substantial competitive edge over the next decade
The role performed by the Redistribution Stockiest has also undergone changes over the years.
Financing stocks, providing manpower, providing service to retailers, implementing promotional activities, extending indirect coverage, reporting sales and stock data, screening for transit damages are some of the functions performed by the RS today.
The RS was required to provide the distribution units to the company salesman. The RS financed his stocks and provided warehousing facilities to store them. The RS also undertook demand stimulation activities on behalf of the company.
The RS would be able to provide customer service only if he was serviced well. This knowledge led to the establishment of the "Company Depots" system. This system helped in transshipment, bulk breaking, and as a stock point to minimize stock-outs at the RS level.
In the recent past, a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer stock-points to ensure that stock-outs did not take place.
The C&FA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery. The most important benefit has been improved customer service to the RS.
Certain C&FAs were selected across the country to act as mother depots. Each of them has a minimum number of JIT depots attached for stock
requirements. All brands and packs required for the set of markets which the MD and JITs service in a given area are sent to the mother depot by all manufacturing units. The JITs draw their requirements from the MD on a weekly or bi-weekly basis.