ATHARVA INSTITUTE OF MANAGEMENT STUDIES

SALES MANAGEMENT & DISTRIBUTION & SCM

ANALYST MEET
PROF. VINOD PURI
PROF. RUBINA DEMELLO

February 25, 2008

 TEAM

TRUPTI VASAIKAR A:58

SAMEER NAWATHE A:27

URVI DANI B:09

PREETI HIWALE A:15

POOJA SHETTY A:46

RAKESH KOUL A:56

Founded in year 1943 by Mr. Mohan Advani

Selected by Worthington, the US leader in air-conditioning

In 1949,the Proprietorship Company Became BSEPL

In 1969,the Company Went Public To Become BSL

In 1970, Took Up The All-India Distributorship of hp Products

India’s largest central air conditioning company

Annual turnover : ` 2,556 crores

Core business areas : Air conditioning, refrigeration &

distribution of professional electronics equipments

Focus on corporate and commercial markets

 Contd.

MANUFACTURING FACILITIES

THANE DADRA BARUCH

HIMACHAL WADA
PRADESH
Group Companies :

Blue Star InfoTech

Blue Star Design And Engineering

Blue Star M & E Engineering

Analyst Meet
Feb 25, 2008
 CENTRAL ROOM COMMERCIAL
AIRCONDITIONING AIRCONDITIONERS REFRIGERATION

SPECIALTY
COLD STORAGE COOLING EXPORTS
PRODUCTS
 COMPETITIVE ADVANTAGES

Technical Competence Wide network and reach

Credentials of over six Strong Relationships with

decades customers

Vast pool of talented Domain expertise

engineers

Energy Efficient and

differentiated products
 MATERIALS MANAGEMENT & SCM

Plant
Purchasing
Organization

Storage Location
 PLANT

Plant
A sub-division of a single Company

Typically a manufacturing location, distribution centre, warehouse

Plant numbers must be unique within a Client

Inventory checking is normally done at the Plant or Plant/Storage Location level

Inventory generally is valued at the Plant level

Blue Star Term: Factory, Warehouse locations & Project Plants

 BLUE STAR PLANTS

Manufacturing plants (6): Registration without

 Thane physical warehouse (5)
 Dadra Bihar, Tripura, Meghalaya,

 Bharuch Uttarakhand, Himachal

Pradesh
 Kalaamb (HP)
Project Plants
 Wada
2 - DMRC and NPCIL
 Wada (EOU)
25 -State/Branch wise
Warehouse Locations (34
logical plants
approx)List to be attached
PLANTS AND STORAGE LOCATIONS (FIELD & PROJECT)
I. BSL Ware houses (ALL INDIA)
I. BSL Ware houses (ALL INDIA)

 Each BSL’s ware house will be a Plant in SAP

SAP Plants for
warehouses(39nos)
 Total 39nos such plants will be in SAP on ALL INDIA
basis

Storage locations (53nos max)  Each such SAP plant will have 53nos(max) storage
II. Project (ALL INDIA) locations

II. Project (ALL INDIA)

Logical SAP Plants
(25nos)  These are Logical Plants, (State/branch wise)
 VAT/CST & service tax registration details to be
captured for all such logical plants,
 Total 25nos such plants will be in SAP on ALL INDIA
Storage Location basis
 Each such plants will have 1 storage location.
List of Plants and Storage Locations
 PURCHASING ORGANIZATION

 Responsible For Every Purchasing Document Created In SAP

 A Purchasing Organization Can Buy For Multiple Plants

 Vendor Master Is Maintained At Purchase Org Level.

 PURCHASING

Client 010

Company
Company Company
Company
Code
Code Code
Code
BOOT
BOOT BT00
BT00

Purchasing
Purchasing Purchasing
Purchasing
Org
Org Org
Org
STPO
STPO 0001
0001

Plant
Plant Plant
Plant Plant
Plant Plant
Plant
MEXT
MEXT MON0
MON0 MEX0
MEX0 TUX0
TUX0
 STORAGE LOCATIONS
Storage Location Blue Star Storage
Subdivision of a Plant
Locations
Defines a location for materials
In Manufacturing
Likestorage area for plants,.
RM,FG,WIP etc.

Affects cycle counting, physical

inventory, material movement
and
picking procedures In warehouse
MM OVERVIEW
INTEGRATED SUPPLY CHAIN

Product Flow

Demand

Supplier Purchasing Production Distribution Retailing Customer

Financial Human
Control Resources

Information Flow

Supply Chain Management: The delivery of enhanced customer and economic value
through management of the flow of physical goods and
associated information.
 MM OVERVIEW
Functions supported by MM –
Sub Modules:

Material Requirements Planning (MRP)

Purchasing
Inventory Management
Material Valuation

Invoice Verification

Procurement cycle for goods/services is only completed once

payment has been made by Finance
MM OVERVIEW: PROCUREMENT CYCLE

Forecast
Material Requirements
Stocks Planning Demand

Requirement

Production Purchasing
(Internal Procurement) (External Procurement)

Invoice
Inventory Management
Invoice
Goods Receipt
Verification
Warehouse
Management
Goods Transfer
Issue Posting

Accounting
Accounting
Sales and Distribution
MM – Master Data
 VENDOR MASTER

Maintenance Level

Client Purchase Organisation Company Code

Mandatory maintenance at the

Purchasing Organisation Level

General Data Purchasing Data Account Data

Address Terms of Payment Payment Terms
Phone and Fax Contact Person Minimum Payment Method
Number Order Value Accounting Clerk
Control Data
VENDOR MASTER TEMPLATE
 MASTER DATA
INFO RECORD
It’s a price master for vendor

This can be central or plant specific

We can capture price, other Terms & Conditions, validity etc.

SOURCE LIST

To restrict the vendor base at material level for valid period

Visibility of vendor base for a given material

Info Record Template:
Source List
 MATERIAL MASTER
LOGISTIC MASTER FILES IN SAP

Production Inventory
Production Sales &
Sales & Management
Planning
Planning Distribution
Distribution

Purchasing
Production
Production
Invoice
Material
Material Verification

Product
Product
Costing Material
Material
Costing Requirements
Requirements
Planning
Planning
Quality
Quality Plant
Management Plant
Management Maintenance
Maintenance
 MATERIAL MASTER:

The material master is the central master “record” for logistics.

A material master is broken down into views.

Data in the material master is defined at different organizational

levels including client, plant, storage location, etc.

The material type controls such things as number assignment

and which views are allowed.
Material Master:
 FEATURES IN SAP:

Payment to
Scheduling
multiple vendors
Agreements &
against PO
Contracts
Split value
India Localization
Module
Vendor rating
 FEATURES IN SAP:
 Quota arrangement (Business allocation between vendors)

 Direct Delivery to Production shops

 User friendly navigation, powerful search

 Various standard reports with multiple selection options, to

ease tracking at every transaction level.

 ABC Analysis, FSNO analysis, Inventory turnover

 Vendor Rating
SAP– ROAD MAP
Project Roadmap
SALES MANAGEMENT @ BLUE STAR
 SALES MANAGEMENT

SALES FORCE :
20 sales personnel per product dept.

SALES TURNOVER :
Rs. 3-4 crores
 SETTING SALES TARGET:

MARKET POTENTIAL

PRIOR BUSINESS

CAPITAL EMPLOYED
 TARGET SEGMENTS

Business Target Segments

Central Airconditioning Infrastructure; IT/ITES; Office Complexes; Retail; Healthcare;
Hospitality
Packaged Airconditioning Retail; Medium Corporate and Commercial establishments

Telecom Shelter Airconditioning Telecom service providers; Passive infrastructure providers

Room Airconditioners Small/Medium Corporate and Commercial establishments; High-

end Residential
Cold Chain products and systems Agriculture; Ice Cream; Hospitality; Supermarkets; Processed
Foods; Pharma

AC&R Service Installed base of Blue Star customers

Professional Electronics & Manufacturing; Defense; Industrial; Healthcare; Banking
Industrial Systems
SALES PROCESS

Analyst Meet
Feb 25, 2008
 SALES FORCE OVERVIEW
 Well established

 Medium experienced

 Relatively new

SOME FLAWS AND CORRECTIONS:

 Misspelling

 Incomplete information

 Oracle platform
 SALES TRAINING PROGRAMME

New Innovative Training Programmes.

METHODOLOGIES USED ARE:

Experiential learning,
Customized case studies
Coaching
 Long-term behavioural change.
 HOW THEY FUNCTION?

Intensive
Customized
Hands-on
VARIOUS SALES TRAINING PROGRAMMES:
 Skill Development Sales Training Seminars and Workshops

 Sales Management and Sales Leadership Seminars and Workshops

 Specialized Sales and Sales Management Seminars and Workshops

 EXECUTIVE COACHING: COACHING THE COACH Building and

Sustaining High-Performance Sales Teams
 SALES AND SERVICE OFFICES :
 Nagpur  Bhopal

 Pune  Panjim (Goa)

 Vadodara  New Delhi

 Mumbai  Thiruvananthapuram
 CASE STUDY:

COLD STORAGE DEPARTMENT

12/07/2021
 BSL COLD STORAGE Dept :

MCR – Modular Cold Rooms

Projects (Cargo Complex, Multiple Ripening , Chambers; Warehouses )
Products
 Bulk Milk Cooler
 Water chillers
 Evaporative Coolers

12/07/2021
 AREA COVERED

MUMBAI

VIDHRABHA BELT – NAGPUR

CHATTISGADH

12/07/2021
 DEALERS

1.ULTRACOOL SYSTEMS – MUMBAI

2 . A Q U M E C H E N G G C O R PO R A T I O N – M U M B A I
3 . S . H . R E F R I G ER A T I O N – M U M B A I
4. D.H. SALES – NAGPUR

5 . S U P R E M E E N T E R PR I S E – R A I PU R
6 . V I G H N E S H W A R A I R - C O N D I T I ON I N G - M U M B A I
12/07/2021
 DEALER PERFORMANCE

ULTRACOOL 380 Lacs

AQUAMECH 102 Lacs

S H Referigeration 85 Lacs

D H Sales, Nagpur 41 Lacs

Supreme 70 Lacs
Enterprise,Raipur

12/07/2021
DEALERS STRENGTHS

Ultracool Systems -Exclusive dealer of cold rooms

-Strong in pharma Segment.

Aquamech -

-- Can handle big customers effectively.

S H Referigeration - Being an associate of Bluestar for years;

has strong network across mumbai.

D H Sales - Localite from Nagpur.Technically

sound.Ex Bluestar. Has been dealer
since 8 years.

Supreme Enterprise - Till recently enjoyed monopoly in C.G.

Associated with BSL since 10 Years.

12/07/2021
MAJOR SEGMENTS
PHARMA 20 - 25 %

F&B 10 – 12%

RIPENING 20 %

HOSPITALS 5 -8%

HOTELS 0.09%

LOGISTICS 15 – 20 %

DAIRY & ICE CREAM 10 – 15%

12/07/2021
(% of Business from different Segments in 09 – 10 )
 NATIONAL ACCOUNTS
49

Mc Donalds

Sun Pharmaceuticals

Novartis

KFC Mumbai & Pune

Glaxo-smithkline

12/07/2021
 Major Orders in 09- 10

Rishi Cold Storage – 150 Lacs

Zorabiyan Foods - 70 Lacs
Transmart – 80 Lacs
CPC – 123 Lacs
GVK airport – 40 Lacs
Anil Fruit Company – 80 Lacs

12/07/2021
MAJOR COMPETITORS

Company Manpower
(Sales &
Installation)

Carrier 4

RINAC 3

Celsius 2

Zanotti 2

12/07/2021
 COMPETITORS TURNOVERS

CARRIER They have combined operating report of Ref

Products & Cold Rooms.
Appx Cold Room turnover – ` 2.5 to ` 3 Cr

RINAC Appx Turnover – ` 4 cr to ` 5 Cr

CELCIUS They have combined operating report of Ref

Products & Cold Rooms.
Appx Cold Room Turnover – ` 1 to ` 1.5 Cr

ZANOTTI ` 1 cr to ` 1.5 cr

12/07/2021
 STRENGTH & WEAKNESS
Traditional Rivals
Company Strength
1.Carrier 1.Good Team of ex Bluestarities.
2.Strong in Dairy & Ice Cream
Segment.
3.Offers attaractive package for
display cabnets & MCR
4. MNC Brand
2.Rinac 1. Arguably technically most sound
company in Cold Room Segment.
2. Own Manufacturing Facility.
3. Has own freezer ODu’s; R404a &
R 134 a Ref Units. Water Cooled
Machines.
Weakness
1.Do not have own
Manufacturing facility.
2.Do Not have great dealer
network for cold rooms.
1.Non Entity in upcountry places
like Nagpur & Raipur Belt.
2. Of late seems to be less
aggressive.
3.Do not have dealer network.
12/07/2021
STRENGTH & WEAKNESS
EMERGING PLAYERS
54

Company Strength Weakness

1.Zanotti 1.Good Team of ex 1.Do not have own

Bluestarities. Manufacturing facility.
2. Presently ,can offer literally 2.As of now, do not
any price customer can ask
for.
have proper
infrastructure.

2.Celsius 1.Offers good attractive

package of display cabinets &
1.Do not have own
Manufacturing facility.
MCR.
2. Major threat in F&B; Hotel
Segment.
3. Tie Up with Kolpan to offer
complete Cam Lock Panels.
4.Major rival in Chattisgadh.

12/07/2021
 STRATEGY FOR 2010 -2011

 Need to have good rapport with Consultants especially in Hotels.

 Develop more National Accounts

 More Customer Meets

 More focus on Execution side.

 Increase market share in all the segments.

 Penetration in competitor’s strongholds.

 Need to be more aggressive in Ripening & Logistics segment.

12/07/2021
SUGGESTIONS
( TO INCREASE MARKET SHARE & TURNOVER)
56

 Need more products to cater all

refrigeration needs of the market.

 Venture in to Ammonia Segment.

 In house R134A & R 404a Condensing

Units.

12/07/2021
 UNEXPLORED SEGMENTS

Marine & Sea Food

Food Processing Industry

Seed Storage

12/07/2021
 SUGGESTIONS
( FOR INTERNAL OPERATIONS)

 Separate Purchase person for each region.

 FTE at branches for preparing Drawings & material follow

ups & Handle installations.

 Logistics Overhauling

12/07/2021
SALES PROMOTION
@
BLUE STAR
 EVENTS & CAMPAIGNS
HEALTHEX'10 MED SESSIONS-CHANNEL
PARTNERS

HEALTHTEX 10’he
DEALERS MEET 10’
CLIMATECH 10’ CUSTOMER MEET CUM
PRODUCT LAUNCH
 SALES & SERVICE OFFICES

MUMBAI:
• PRABHADEVI
• MATUNGA
• FORBES STREET
SALES SERVICE
TRAINED PERSONNEL

PRIORITY SERVICE

PREVENTIVE CHECKS

EASY ACESS

EXTENDED LIFE

SEASONAL SETTINGS
 VALUE ADDED SERVICES

VALIDATION AND COMMISIONING SERVICE

PRODUCT UPGRADES & ENCHANCEMENTS

Replace your old fan coil unit.

Refrigerant convergant

Digi - Group Controller with PC Connectivity

Advanced pre-emtive diagnostic

OTHER DIFFERENTIATING SERVICE FACTORS

SERVICE QUALITY ASSURANCE GROUP

SERVICE SPECIALIST GROUP

SPECIAL CALL MANAGEMENT TEAM

THANK YOU