Supply Chain Of HUL

NISHTHA POOJA ROHAN SHARMEE N UDIT

What is FMCG?
Frequently purchased goods Replaced within a year Quick turnover Relatively low cost Key Segments : Household care , Personal care, Food & Beverage. Major Players : HUL , ITC , P&G, Nestle , Dabur

HUL

Indias Largest FMCG Was formed in 1933 as Lever Brothers India ltd. Headquartered in Mumbai Over 15,000 employees Over 700 million consumers Market leader in Indian products such as tea, soaps, detergents etc. Has over 100 factories across India for manufacturing its diverse product range.

Supply Chain Management

Supply chain management is the management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

HUL Supply Chain

HUL sources Raw materials from 2000+ suppliers. HUL owns 100+ manufacturing plants across the country. The general trade comprises Supermarkets, grocery stores, chemists, wholesale and small Kirana shops. HUL provide Tailor-made services to each of its channel Partners.

HUL Distribution Network

The Company Supplies directly to 35 Carry and Forwarding Agents(CF&A) .These CF&As regularly feeds the ReDistribution stockists who are next in the hierarchy. Product distributed through a Network of 7000+ Re- Distribution Stockists (RS) Covering more that 1Millions retail outlets. Entire Urban Population is directly covered by this Distribution network.

Urban Distribution Network

The Carry and Forwarding Agent (C&FA) is supplied by The companys production facility.

Either Rail or Road transport is used depending upon the time factor for delivery and transportation cost. Generally the factory location is such that it covers a large geographical area

Urban Distribution Network

From the Carry and Forward agent (C&FA) the goods are supplied to Redistribution stockiest. In this steps trucks are used. The Re-distribution stockiest supplies the wholesaler. The Wholesaler supplies to the retailer, here the local popular and cheap mode of transport is generally used. The retailer makes the product available to the customer

Rural distribution network

HUL approached rural market by two criteria : Accessibility and Viability. The company has brought all markets with populations of below 50,000 under one rural sales organization. The team comprises an exclusive sales force and exclusive re-distribution stockiest who is responsible business in particular town. The team focuses on building superior availability of products.

Rural distribution network

In the 25% of the accessible markets with low business potential , HUL assigned a sub-stockiest who was responsible to access all the villages at least once in a fortnight and send stocks to those markets. This substockiest distributes the company's products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like cycles, scooters or the ageold bullock cart. In rural India, the network directly covers about 50,000 villages, reaching more than 250 million rural consumers, through 6000 sub-stockiests. Lately in 2000 they launched Project Shakti Self-Help Groups of rural women.

Project Shakti

extended to about 12 states AP, UP, MP, WB, Rajasthan, Maharashtra, Punjab. With the help of Women Self-help group (SHG). In cluster of small BPL villages with population of 10002000. Women are chosen as Shakti entrepreneur They receive training and goods from HUL and rural distributor respectively. They sell products directly to consumers and retailers in villages. Each Shakti entrepreneur serves 6-10 villages. They receive goods on cash and carry basis. This is a major step from HUL for women empowerment

Pioneering New Channels

1. Project Shakti 2. Hindustan Unilever Network (HUN): it is the companys arm in the Direct selling channel. It presents a range of customised offerings in Home & Personal Care and Foods.

Pioneering New Channels

3.Out-of-Home: this deals in providing vending machines for hot beverages like tea and coffee. HULs alliance with Pepsi Co. has significantly strengthened the channel. 4. Health& Beauty services: Lakme Salons provide specialized beauty services and solutions, under the recognized beauty services and solutions, under the recognized authority of the Lakme brand. The Ayush Therapy Centres provide easy access to authentic ayurvedic treatments and products.

Conclusion

Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution- creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience.