Logistics compared amul & hul

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Second Semester / NDIM / Sales & Distribution Management Comparison of Logistics Operation of 2 FMCG Companies Presented by: GROUP 5 Nikhil Manan, Abhirup Rudra, Hitesh Navriya, Prashant Kathuria Aanchal Sharma, Kritika Raghav 1

Transcript of Logistics compared amul & hul

Second Semester / NDIM / Sales & Distribution Management

Comparison of Logistics

Operation of 2 FMCG

Companies

Presented by: GROUP 5

Nikhil Manan, Abhirup Rudra, Hitesh Navriya, Prashant

Kathuria

Aanchal Sharma, Kritika Raghav

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Second Semester / NDIM / Sales & Distribution Management

Top listed FMCG

Companies• Nestle s.a.

• Procter & gamble co

• Anheuser’bush inbev

• Philip morris

international inc

• Coca cola company

• Pepsico inc

• Unilever

• British american tobacco

• L’Oreal

• Monlez international inc

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Second Semester / NDIM / Sales & Distribution Management

HUL Overview

• Headquarters: Mumbai, Maharashtra, India

• Key people: Harish Manwani (Chairman), Sanjiv Mehta

(CEO and MD)

• Products: Foods, beverages, cleaning agents and

personal care products

• Sales Turnover of Rs.11,000 Crores.

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contd.

• Marketing Logistics – It involves planning, implementing

and controlling the physical flow of goods , services and

related information from point of origin to point of

consumption.

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Second Semester / NDIM / Sales & Distribution Management

Objective

• The corporate objective of HUL is "to meet the everyday

needs of people everywhere". This is met through an

extensive distribution system that covers the diverse

geographical boundaries of the country.

• Company, almost touching the lives of two out of three

Indians with 35 power brands and strong distribution

channel.

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Second Semester / NDIM / Sales & Distribution Management

LIM of HUL

• Logistics Information Management –IT system has been

implemented to supply stocks to RD. Stockiest have been

connected with the company through an Internet-based

network, called RSNet, for online interaction on orders,

dispatches, information sharing and monitoring.

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Second Semester / NDIM / Sales & Distribution Management

Distribution Network

HUL

Carrying & Forwarding Agent

Redistribution Stockiest

Wholesalers

Urban RetailersRural Retailers

Customers

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Second Semester / NDIM / Sales & Distribution Management

Warehouse location of

HUL• The Warehouse Company (Machado & Sons Agents & Stevedores

Pvt Ltd.)

• Location: Verna Industrial Estate, Goa

• Cuncolim Industrial Estate

• Kundaim Industrial Estate

• Kudal Industrial Estate

• Capacity: 1,50,000 sq. ft

• Ownership: Private/Outsourced

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AMUL

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Order processing of

Amul

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Amul Overview• Amul means priceless in Sanskrit “Amoolya”

• Brand name managed by an apex cooperation organization -

GCMMF - Gujarat Cooperative Milk Marketing Federation

• World’s biggest vegetarian Cheese brand

• World’s largest pouched milk brand

• Largest food brand in India

• Spurred the white revolution in India

• Accreditation with 9001 and HACCP certification by QAS, Australia

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Second Semester / NDIM / Sales & Distribution Management

GCMMF an Overview

• Members: 24 district cooperative milk producer

(VDCS)/ 17 member unions

• No. of Producer Members: 3.18 million

• No. of village societies: 13,328

• Total milk procurement - Daily: 13 million liters

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Contd.

• Cattle feed manufacturing: 3500 Mts. per day

• Milk collection (Total - 2008- 09): 3.05 billion liters

• Total Milk handling capacity: 11.22 million liters per

day

• Milk collection (Daily Average 2008-09): 8.4 million

liters

• Milk Drying Capacity: 626 Mts. Per day

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Second Semester / NDIM / Sales & Distribution Management

Product Share

• Amul Butter: 86%

• Ice Cream: 36%

• Chocolate: 10%

• Ghee: 20%

• Skimmed Milk Powder: 40%

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Second Semester / NDIM / Sales & Distribution Management

Logistics

• Logistics in Collection:

• 6 million liters of milk per day

• From about 16914 separate village cooperative Societies

• Logistics in coordination of:

• Storing the milk

• processing the milk

• distributing the milk

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Contd.

• Supplier logistics

• Weighing the milk

• Determining the FAT content

• Calculation of the purchase price

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Value Chain Analysis

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Dairy

Cheese Products

Bread Spreads

Milk Drinks & Desserts

Fresh Milk

Non-Dairy

Instant Food

Snacks

Veg. Oils

Amul Product’s

Diversification

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Second Semester / NDIM / Sales & Distribution Management

Products• Bread Spreads

• Milk Drinks

• Powder Milk

• Fresh Milk

• Cheese

• For Cooking

• Chocolate

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REAPING RETURNS • Radical changes in business processes - eliminating middlemen .

• Improved delivery mechanisms and transparency of business

operations.

• Due to this process, AMUL is able to collect six million litres of

milk per day.

• Huge reduction in processing time for effecting payments to the

farmers from a week to couple of minute.

• Processing of 10 Million payments daily, amounting to

transactions worth USD 3.78 million in cash.

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Supply Chain

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Second Semester / NDIM / Sales & Distribution Management

Distribution Process

Company

Wholesaler Dealer Franchisee

Retailer

Consumers

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Channel Network

• Procurement channel- upstream flow

• Distribution channel- downstream flow

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Upstream• On an average around thousand farmers come to sell milk

at their local co-operative milk collection center.

• Each farmer has been given a plastic card for

identification.

• At the milk collection counter, the farmer drops the card

into a box and the identification number is transmitted to

a personal computer attached to the machine.

• The milk is then weighed and the fat content of the milk is

measured by an electronic fat testing machine.24

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contd.

• Both these details are recorded in the PC. The computer

then calculates the amount due to farmer on the basis

of the fat content.

• The value of the milk is then printed out on a slip and

handed over to farmer who collects the payment at

adjacent window.

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Second Semester / NDIM / Sales & Distribution Management

Cold Storage Network

• Chillers in proximity of villages

• Prompt transport to district facilities for further dispatch to

consumers/ processing units.

• Chilled trucks to transport processed products

• Delivery to local chillers by insulated rail tankers and chilled

trucks.

• Refrigerators and freezers with retailers and departmental

stores to retain freshness

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Second Semester / NDIM / Sales & Distribution Management

Distribution• GCMMF coordinated with various unions to get a regular

supply of milk and dairy products.

• The processed milk and dairy products were procured from

district dairy unions and distributed through third party

distributors.

• To ensure quality and timely deliveries, GCMMF and the

district unions had several mechanisms in place.

• The unions monitored the supplies of milk and the

distribution of finished products.27

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Downstream• First leg

• Manufacturing units to company depots using 9 and 18 MT trucks

• Frozen food below -18°C

• Dairy wet 0-4°C

• Second leg

• Depots to WDs

• Transport through insulated 3 and 5 MT TATA 407’s

• Third leg

• WDs to retailers

• Transport through rickshaw

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Reverse logistics

• MILK CHURN

• From Diary to VCs

• BOTTLE

• from retailer to diary

• DAMAGED PRODUCT

• from customer retailer then to diary

• POUCHED MILK TRAY

• from retailer to diary

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Second Semester / NDIM / Sales & Distribution Management

Thank You

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