Distribution System of Unilever in Abbottabad

Purpose of Unilever’s Distribution

The purpose of distribution of Unilever is serving the GT(General Trade) E.g. General Store, Karyana
Stores etc. Where Unilever cannot serve directly, they Hires the distributors so they can serve the market
easily. Unilever cannot reach to any smallest point there Unilever can take orders and give delivery. If
they will do that it will be time consuming, costly and also fatigue. So that’s why company appoint
distributor in each city. Then they make an agreement with fix margin.

Distributors of Unilever are actually business partners of Unilever not only subordinates.

Distributors invest money in the company’s products according to the areas required investment.
Company issues description of investment like

 This amount of money is for Stock

 This amount of money is for market credit although company is not responsible for
credit

During the agreement company allows distributors that they can give credit to their trust worthiness
Customers. For example

If Distributor buy they Stock of 1 crore then company allows him to give 20% amount of stock for
credit

Requirement of Unilever’s Distribution

If you want to be the distributor of Unilever then you will follow these step

1. You need investment to purchase stock and give security

2. You have good infrastructure from where you can grow your business and keep stock.
They require well setup and well-furnished infrastructure because this is the part of your
business.

3. Distributor have to provide resources and these resources and employees and vehicles.

Unilever Distribution in Abbottabad

Unilever’s distribution of Abbottabad is registered as the name of SEVEN C’s Distribution .Unilever have
two sub distributions in Abbottabad which is owned by the same person Mr. Hayat khan. He is the
former territory manager of Unilever Pakistan. He got the General trade distribution of Abbottabad in
2013 and got the distribution LMC local modern trade in start of 2014. His son Mr. Assad Hayat is the
holds the operations of the distributions of Abbottabad.

Seven C’s LMC (local Modern Trade) Distribution

Seven C’s LMC (Local Modern Trade) Distribution serving those store who use the
modern techniques and those who have good reputation in Abbottabad. Mostly these stores are
 self-service store. For example: Gillani Store, Moon Emporium, Kifayat cash n Carry, Italian Mall,
Aim’s Store etc.

Seven C’s GT (General Trade) Distribution

Seven C’s GT (General Trade) Distribution serving the store which is know as General
store. General trade is further categories into:

 Super Store

 Karyana store

 Family Groceries Store

 Bakeries

 Cosmetics

 Barber Shops

Unilever’s Distribution Employees

1. KPO(Knowledge Process Outsourcing)

Knowledge process outsourcing (KPO) describes the outsourcing of core information-related
business activities which are competitively important or form an integral part of a company's
value chain. KPO requires advanced analytical and technical skills as well as a high degree of
specialist expertise.

The Duty of KPO is to make Load Form and enter the stock information that how many stock
is in warehouse. His duty is to make load form in the morning so stock keeper can arrange
the stock and also he helps the territory manager in chase of stock short or other cases. He
also make the claim sheet.

2. DSR(Direct Sales Representative)

Direct sales, or direct selling, is a distribution method that relies on independent
salespeople who sell products and services directly to consumers outside of a traditional
retail setting. ... Representatives earn a commission on the sale price of the products and
services that they sell.

Unilever’s DSR is responsible for taking order from the particular which Territory manager’s a
lot him. His duty is to go daily on those store which territory manager a lot him according to
the schedule. He creates and maintain good relation with the shop keeper and also gives
detail about the product. He can give can the credit to shop keepers those are trust
worthiness by keeping in mind the policy of credit. He takes order through the device which
 he is the Unilever’s property and submit that device daily in Seven C’s Distribution of
Unilever. Through this device KPO make the Load form.

3. Loader
Loader is the person who load the stock according to the load form in the vehicle. His duty is
to load all the stock in the vehicle and also unload the stock from the truck.

4. Supervisor
His duty is to monitor all the activities of employees and he also give direction to employees.
He is also responsible for the warehouse stoke and he takes attendance of the employees of
distribution. He also check the load forms daily and helps loader to load stock in vehicle by
checking the stock.

5. Sales Man
In Unilever we call that person a sales man who delivers the order which is received by DSR.
His Duty is go to with divers in delivery van he helps driver to unload the stock at the
delivery point. He is also responsible for the receiving cash from the market.

6. Driver
Driver is the person who driver the van of Unilever and also helps the loader to load the
stock in Van and also helps the sales man while delivery of stock.

Total Staff of Unilever’s Distribution(Seven C’s)

As we know that Unilever is one of the top multinational company, so there distributors have also work
in the market in centralized way.

The Unilever’s Distribution(Seven C’s) have following staff which is mention below:

 They have 9 DSR(Direct Sales Representative) who work as order taker in

the market.

 They have 7 delivery man which is know as the Salesman in Unilever.

 They have also 7 drivers

 1 KPO

 2 Warehouse loader

 5 Merchandisers

 1 Supervisor who monitor the activities and mark attendance of

distribution employees
Software uses in Seven C’s:
Seven C’s uses two software which is known as Ultra and Unilever introduced new software which Lecer-
A.

Merchandising in Unilever
Unilever acquire the shelfs in the store where they can present their product according to the categories
so they attract the customers. Unilever sign contract of merchandising with the third party Smollan retail
solution. As we know we purchase those things which we can see more. Smollan present the stock in the
shop orderly so they can attract customer.

Smollan
Smollan is an international retail solutions company delivering growth for clients across five continents
by covering every aspect of how a brand is managed at the point of purchase. Smollan works the perfect
store in Abbottabad which helps the Seven’s to chase their targets and which is know as reputable store
in Abbottabad either on Main Road or in Mohallas. Smollan also give such amount of money to the shop
keeper for acquiring space in their store. These amount is paid by on quarterly basis by the auditor of
Smollan.

o Merchandising
The activity of promoting the sale of goods, especially by their presentation in retail
outlets.

o Merchandiser
Is the person who promote the sales of goods, especially by presenting the goods in the
retail outlets.

Is the person who promotes the Unilever’s product and present the Unilever’s stock in
shelf according to the categories of products.

Salary Method of Employees

Unilever helps distributor to give salary to the distributor’s employees. Unilever gives half of the salary to
the distributor’s employees so he can overcome the expenses.

DSR’s get the commission with their basic salary, they get 40% fixed salary which includes daily
allowance and fuel expenses and their 60% salary portion is variable they get this part of salary as a
target achievement allowance. Others employees are getting their salary at the start of the month. They
have only salary they do not get commission but they will get such amount of bonus on Eid from the
distributor.

Unilever scheme
Unilever provide scheme to the customer through their secondary sources which is distributors.
Distributors have authority to give schemes to their customer.
Sub Agents/BBB
Unilever’s distributor also cannot touch all the geographical point of his territory because it’s time
consuming and costly, for this reason Unilever’s distributors hire the third agent which is known as RTM.
They are the Business subordinates of Unilever’s who helps Unilever’s distributors to reach Unilever’s
distributors targets and they work on commission. Distribution provide them stock on weekly basis and
they take stock from Unilever’s distribution in two days(Monday and Wednesday). Distributor assign
RTM for Nathia Gali area and Sajikot area where distribution cannot reach easily.

Goodiee Baji
The area which is located in surrounding of Abbottabad which is mostly perfect village where Unilever
can see their future which is growing fast which is now became urbanize where people where investor
are taking interest to invest there for the developing new market, where people are aware from the
brands then Unilever give them priority as the Perfect Village. Territory Manager directly monitor that
area. Although there are few shop keeper who are interested in growing there business but they haven’t
investment so Unilever give them credit for 1 week and give some racks of knorr and some other.

Ordering Stock
Ordering stock is depends on demand of the market. Territory manager forecast the demand and analyze
the demand of the market and then he discuss that demand with the distributor and finally they send
order directly to the head office from where the order is will be accept. Demands creates on the basis of
DBR(Demand Base Replenishment),DBR decides that what is the need of market demand and how many
stock Unilever will send this week.

Formula of DBR is: Safety stock + Week target – Ends Stock

Safety stock means 9 days of stock for sale. Company advice every distributor that they will have 9 days
of stock in each distribution and system monitors that stock through auto DA. Auto DA is system
generated file which is automatically recorded in system while sending stock.

After all this process the stock will send by the depot(Tarnol depot). Seven C’s Distribution orders the
stock on weekly basis, two times in a week(mostly on Monday and Wednesday).

Hiring and Firing Process of Unilever’s Distribution

Distributor have responsibility to give human resources to the distribution but Territory Manager hire
and fire the employees of the distribution. Distributor provide the person to Territory Manager, if the
person is eligible then territory manager select him for interview. He takes interview from the applicants
and then short list the best three applicants and then select the best one. After selection distribution
and territory manager sign the mutual agreement with the person who has been hired.

Training
After selection the practical work starts where senior employee guide the new employee of the
distribution, Senior employee and new employee of the distribution goes to the market and senior teach
him how to do work in the market and what’s their responsibilities. The training depends on totally
practical experience.