Distributor Management

Problems:
Failure of In-time delivery
High distribution costs
Bad IT services
Bad handling of goods

Inventory Management
Problems
High Inventory level
Unsold finished goods inventory
High waiting time
Improper Warehouse layout

Distributor selection using the concept of Vendor Rating Method

3rd party
distributors

On-Time
Delivery
(4.5)

Material
handling
(3.5)

Tracking/IT
infra
(2.5)

Customer
experience
(3)

Cost of
delivery
(4)

Total :
Out of
5*5 = 125

Bluedart

3.5

4.5

57.25

Aramex

3.5

3.5

58.75

Chhotu.in

2.5

3.5

3.5

54.25

ExpressIT

1.5

45

SafeExpress

3.5

2.5

3.5

54.75

(Out of 5)

The rating was performed based on a comparative study by delivering same product to the same
address as well as telephonic interviews and online quotations.

Inventory analysis
Based on the average of 3 months sales data we perform ABC analysis to determine which SKUs
would be classified as Category A products that assume maximum value of the total inventory.
We will also verify whether Paretos principle holds true in this case or not.

Sl No
1

STYLE NO

2
3
4

AA-38

5
6
7
8
9

Value
of
goods

Percentage
value

Cumulative
%age sales

PRICE

Quantity

AA-28

1950

110

214500

19.48066102

19.48066102

AA 46

849

94

79806

7.247895725

26.72855674

ADAK - 84

150

525

78750

7.151990933

33.88054767

1050

65

68250

6.198392142

40.07893982

ADAK - 83

290

148

42920

3.897948582

43.9768884

ADAK - 110

395

92

36340

3.300360006

47.2772484

AA-36

210

125

26250

2.383996978

49.66124538

AA 21

1650

15

24750

2.247768579

51.90901396

ADAK - 27

350

66

23100

2.09791734

54.0069313

10

AA 45

299

76

22724

2.063769422

56.07070072

11

AA-12

1750

12

21000

1.907197582

57.9778983

12

AA 4

1999

10

19990

1.81547046

59.79336876

13

ADAK - 82

150

114

17100

1.553003745

61.34637251

14

ADAK - 37

999

17

16983

1.54237793

62.88875044

15

AA-23

1450

13050

1.185187069

64.07393751

16

AA 41

1950

11700

1.06258151

65.13651902

17

AA 10

1450

11600

1.053499617

66.19001864

18

ADAK - 2

495

23

11385

1.033973546

67.22399218

19

ADAK - 43

200

50

10000

0.908189325

68.13218151

20

ADAK - 40

200

49

9800

0.890025538

69.02220705

21

AA 9

1950

9750

0.885484592

69.90769164

22

ADAK - 52

1899

9495

0.862325764

70.7700174

23

ADAK - 50

1895

9475

0.860509385

71.63052679

24

ADAK - 19

999

8991

0.816553022

72.44707981

25

ADAK - 39

999

8991

0.816553022

73.26363283

26

AA19

849

10

8490

0.771052737

74.03468557

27

ADAK - 34

847

10

8470

0.769236358

74.80392192

28

ADAK - 200

1150

8050

0.731092406

75.53501433

29

ADAK - 3

597

13

7761

0.704845735

76.23986007

30

AA-9

1850

7400

0.6720601

76.91192017

31

ADAK - 5

650

11

7150

0.649355367

77.56127553

32

BS1

33
34
35
36
37
38
39
40
41
42

6999

6999

0.635641708

78.19691724

ADAK - 7

697

10

6970

0.633007959

78.8299252

ADAK - 60 (Dairy)

850

6800

0.617568741

79.44749394

ADAK - 45

2249

6747

0.612755337

80.06024928

ADAK - 36

350

19

6650

0.603945901

80.66419518

ADAK - 46

400

16

6400

0.581241168

81.24543635

AA 2

2099

6297

0.571886818

81.81732317

AA3

2099

6297

0.571886818

82.38920998

BS2

5999

5999

0.544822776

82.93403276

ADAK - 14

297

20

5940

0.539464459

83.47349722

ADAK - 23

647

5823

0.528838644

84.00233586

43

ADAK - 12

697

5576

0.506406367

84.50874223

44

ADAK - 30

250

22

5500

0.499504129

85.00824636

45

AA 6

1800

5400

0.490422235

85.49866859

46

BS3

4999

4999

0.454003843

85.95267244

47

AA 5

2449

4898

0.444831131

86.39750357

48

AA-27

1150

4600

0.417767089

86.81527066

49

ADAK - 93

4500

4500

0.408685196

87.22395585

50

ADAK - 29

450

10

4500

0.408685196

87.63264105

51

ADAK - 59 ( Laptop Bag)

210

21

4410

0.400511492

88.03315254

52

AS - 1

550

4400

0.399603303

88.43275585

53

ADAK - 32

280

15

4200

0.381439516

88.81419536

54

AA-39

120

35

4200

0.381439516

89.19563488

55

AD - 22

450

4050

0.367816677

89.56345156

56

ADAK - 97

3999

3999

0.363184911

89.92663647

57

ADAK - 64

1999

3998

0.363094092

90.28973056

58

ADAK - 92

350

11

3850

0.34965289

90.63938345

59

ADAK - 87

325

11

3575

0.324677684

90.96406113

60

ADAK - 24

397

3573

0.324496046

91.28855718

61

ADAK - 33

280

11

3080

0.279722312

91.56827949

62

AA 1B

999

2997

0.272184341

91.84046383

63

ADAK - 124

299

10

2990

0.271548608

92.11201244

64

AN - 07

995

2985

0.271094513

92.38310695

65

ADAK - 1

697

2788

0.253203184

92.63631014

66

ADAK - 28

450

2700

0.245211118

92.88152125

67

ADAK - 65

1297

2594

0.235584311

93.11710556

68

ADAK - 51

1295

2590

0.235221035

93.3523266

69

ADAK - 26

197

13

2561

0.232587286

93.58491389

70

AA-8

210

12

2520

0.22886371

93.8137776

71

ADAK - 98

2499

2499

0.226956512

94.04073411

72

ADAK - 90

275

2475

0.224776858

94.26551097

73

AA 15

799

2397

0.217692981

94.48320395

74

ADAK - 20

297

2376

0.215785784

94.69898973

75

ADAK - 104

2250

2250

0.204342598

94.90333233

76

AA 14

1050

2100

0.190719758

95.09405209

77

ADAK - 6

697

2091

0.189902388

95.28395447

78

ADAK - 13

697

2091

0.189902388

95.47385686

79

ADAK - 96

2000

2000

0.181637865

95.65549473

80

ADAK - 95

400

2000

0.181637865

95.83713259

81

ADAK - 94

1999

1999

0.181547046

96.01867964

82

ADAK - 105

1999

1999

0.181547046

96.20022668

83

AA-40

90

22

1980

0.179821486

96.38004817

84

ADAK - 111

1975

1975

0.179367392

96.55941556

85

ADAK - 85

295

1770

0.16074951

96.72016507

86

ADAK - 91

350

1750

0.158933132

96.8790982

87

AB - 01

850

1700

0.154392185

97.03349039

88

ADAK - 47

849

1698

0.154210547

97.18770094

89

ADAK - 86

325

1625

0.147580765

97.3352817

90

ADAK - 109

350

1400

0.127146505

97.46242821

91

ADAK - 44

699

1398

0.126964868

97.58939308

92

ADAK - 123

699

1398

0.126964868

97.71635794

93

ADAK - 18

1200

1200

0.108982719

97.82534066

94

ADAK - 9

600

1200

0.108982719

97.93432338

95

AN - 17

100

12

1200

0.108982719

98.0433061

96

ADAK - 121

599

1198

0.108801081

98.15210718

97

ADAK - 88

399

1197

0.108710262

98.26081744

98

ADAK - 17

297

1188

0.107892892

98.36871033

99

AA-37

275

1100

0.099900826

98.46861116

100

AA47

135

1080

0.098084447

98.56669561

101

ADAK - 125

1000

1000

0.090818932

98.65751454

102

ADAK - 108

999

999

0.090728114

98.74824265

103

ADAK - 53

199

995

0.090364838

98.83860749

104

ADAK - 61

310

930

0.084461607

98.9230691

105

AD - 19

900

900

0.081737039

99.00480614

106

TY

899

899

0.08164622

99.08645236

107

ADAK - 126

799

799

0.072564327

99.15901669

108

ADAK - 128

399

798

0.072473508

99.23149019

109

ADAK - 129

350

700

0.063573253

99.29506345

110

ADAK - 120

699

699

0.063482434

99.35854588

111

ADAK - 8

697

697

0.063300796

99.42184668

112

ADAK - 10

650

650

0.059032306

99.48087898

113

AD - 21

650

650

0.059032306

99.53991129

114

AN 08/ 27

650

650

0.059032306

99.59894359

115

Laptop

500

500

0.045409466

99.64435306

116

AN

499

499

0.045318647

99.68967171

117

AN - 08

499

499

0.045318647

99.73499036

118

File Cover

400

400

0.036327573

99.77131793

119

AB - 2

399

399

0.036236754

99.80755468

120

AN - 33

310

310

0.028153869

99.83570855

121

ADAK - 81

150

300

0.02724568

99.86295423

122

ADAK - 25

299

299

0.027154861

99.89010909

123

ADAK - 62

249

249

0.022613914

99.91272301

124

ADAK - 21

247

247

0.022432276

99.93515528

125

ADAK - 63

199

199

0.018072968

99.95322825

126

AB - 23

95

190

0.017255597

99.97048385

127

TY

125

125

0.011352367

99.98183621

128

AN - 06

50

100

0.009081893

99.99091811

129

AN 08 / 24

50

100

0.009081893

100

130

AA 13

999

100

131

ADAK - 4

697

100

132

AA 42

395

100

133

AA 36

299

100

134

AA 43

255

100

135

AA 40

225

100

136

AA 41

210

100

137

AA 42

175

100

138

AA 37

100

100

139

AA 38

60

100

140

AA 39

50

100

141

AS29

150

100

142

AA5

120

100

143

AA 31

170

100

144

AA 32

80

100

145

AA 33

250

100

146

AA34

220

100

147

AA 35

350

100

148

ADAK - 11

100

149

AA 16

100

150

AA28

100

152

AA40

100

Order Delivery Process:

1. Order is received through internet website portal.
2. As soon as the order/purchase request is made, an automatic entry goes into the order
management system.
3. The purchase requests are visible both at the warehouse in Mumbai and their manufacturing
unit in Gujarat.
4. As soon as the purchase request comes, the operator at warehouse retrieves the products
from the warehouse, and packages the good in the required packing equipment.
5. At the end of the day, the all the packaged goods with invoice address is picked up by the
delivery service provider for delivery at customer end.
6. The product is delivered at the customer end within 3-4 working days depending upon the
nature of the product and the address to be delivered
7. On delivery the courier service will acknowledge back to the company that the courier has
been received successfully.

Warehouse maintenance cost:

Monthly expenses:
Pariculars
Rent (Western Suburbs)
Labour
Electricity
Telephone/Maintenance
Total

Cost (Rs)
80,000
15,000
5000
6000
106000

Annual Maintenance cost: 106000*12 = 1272000/+ Annual Charges (6%) = 76320/Total annual cost = 1348320/Annual inventory Cost = 1100892 * 12 months = 13210704/Total Inventory Carrying Cost
1100892