Supply Chain Management of Hindustan Unilever Limited

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Supply Chain Management of Hindustan Unilever Limited..... BY- Anuj Singh Swati Sharma

HUL Background…..:

HUL Background….. Indian Largest Fast Moving Consumers Good Company Headquartered in Mumbai Over 700 million consumers More than 15,000 employees, including 1,300 managers More than 200 highly qualified scientists and technologists Shares listed at BSE (Stock code - 500696) and NSE (Stock code – HINDUNILVR) Shareholder base of over 3.5 lakh

HUL – The Journey so far…:

HUL – The Journey so far…

HUL Product Brand and Product Mix:

HUL Product Brand and Product Mix

Contribution of Product to Growth of HUL:

Contribution of Product to Growth of HUL

HUL Sales and Operation Planning:

HUL Sales and Operation Planning Demand forecasting on a scientific basis Planning cycle Feed forward one Main Planning is one quarter ahead with three more quarter of plan going forward . Firstly a base level demand is calculated looking at actual sales pattern of past months. Done at SKU level Efficiency is measured with parameters such as forecast errors and customer service efficiency

HUL Supply Chain and Distribution Network:

HUL Supply Chain and Distribution Network HUL Distribution Network….. Consumer Primary Sales Secondary Sales Distribution Network is HUL key strength…..

HUL Supply Chain and Distribution Network:

HUL Supply Chain and Distribution Network HUL consisting of over 100 Manufacturing plant 2000 Supplier as a resource of raw materials and intermediates packaging material for its 1000 product . Product are distributed across the country through a network of 4 warehouses HUL consisting of more than 40 agents, 7500 wholesalers and a number of large institutional customer HUL consist of a network of 7000 redistribution stockiest, covering about one million retail outlet. Distribution network directly cover entire urban population.

Distribution Strategy-Use of Information Technology:

Distribution Strategy-Use of Information Technology An IT-powered system has been implemented to supply stocks to redistribution stockiest. The objective is to make the product available at the right place and right time in the most cost effective manner. For this, stockiest have been connected through an Internet-based network, called RS Net, for online interaction.

Use of Information Technology with HUL:

Use of Information Technology with HUL Substantial investments in IT-based sales system Every salesman books orders on a palmtop All orders are fed into a central database from the distributor point. Network is installed at all 3,500 distributor points—which makes for accurate on-the-fly demand projections and helps avoid stock-out losses.

Enhance Customer Service:

Enhance Customer Service

Driving Cost efficiency with help of SCM:

Driving Cost efficiency with help of SCM

Supply chain for rural market:

Supply chain for rural market Distribution at the Villages 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 redistribution stockiest. The team focuses on building superior availability of products. In rural India, the network directly covers about 50,000 villages, reaching 250 million consumers, through 6000 sub-stockiest.

Pioneering new channels for Rural India:

Pioneering new channels for Rural India For long term benefits, HUL started Project Streamline in 1997. Project Shakti : In 2001 Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states. SHGs has chosen to adopt distribution of HUL’s product as business venture. SHGs getting training from HUL and supported by NGOs. Conducts business around 15000 per month

Pioneering Other new channels:

Pioneering Other new channels Hindustan Unilever Network (HUN) : In 2003 started HUN for “Direct Selling Channel”- Home & Personal Care and Foods. Out-of-Home Network : Alliance with Pepsi Co. – Vending machine for hot beverages like tea and coffee. Health and Beauty services : Lakme Salons provide specialised beauty services and solutions. Ayush Therapy Centres easy access to authentic Ayurvedic treatments and products.

HUL’s Corporate social responsibility:

HUL’s Corporate social responsibility Integrate economic, environment & social objectives with business agenda….. Providing education on health and hygiene Women empowerment Water management Rehabilitation of special or underprivileged children Care for the destitute and HIV-positive Rural development . Plays active role in natural calamities

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