Distribution Mangement by dhawanapoorv

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									Whirlpool
 Incorporated in 1960
 World's leading manufacturer and marketer of major
  home appliances
 Whirlpool's primary brand names - Kitchen Aid,
  Roper, Bauknecht, Ignis, Brastemp, Consul and its
  global Whirlpool brand - are marketed in more than
  170 countries worldwide.
WIL
 Whirlpool India Ltd (WIL) is an 82.3% subsidiary of
  Whirlpool Inc, US
 Whirlpool is among India's leading Home Appliance
  company
 Manufactures and markets refrigerators, washing
  machines, air-conditioners and microwave ovens
Major players in washing machine
market in India
                  Market share
30%

25%

20%

15%
                                 Market share
10%

 5%

0%
      LG   Whirlpool   Samsung
Manufacturing and Sourcing
 Faridabad Plant
    production of direct cool refrigerators ranging from 165
     to 310 liters
    Capacity of 850,000 units annually
 Pondicherry Plant
    Whirlpool washing machines which include both semi-
     automatic and automatic washers
 Ranjangaon Plant(Pune)
    manufactures Frost Refrigerator
  Whirlpool Distribution Model
                                                          60% of the sales at Whirlpool is done
                        Manufacturing
                           Units                           through Distributors while the rest 40%
                                                           is undertaken by the direct dealers.

                                         CFA-18 each      Distributors are being preferred as they
         Distributors                   for each sales
                                                           increase the company’s reach into rural
                                            branch
                                                           markets as well reduce the risk exposure
                                                           of the company by providing credit
                                                           worthiness in the shape of Distributors.
Sub-Dealers         Institutions        Direct Dealers

                                                          Direct Dealers are also important as
                                                           there are some stores where each of these
                                                           companies has to be present so as to have
          Consumers
                                                           a superior business relationship with the
                                                           customer
Whirlpool Ghaziabad
Distribution
 Whirlpool   Ghaziabad    comes    under   the   North
 Distribution region

 This region includes the following locations:
    NCR covering Delhi, Gurgaon , Noida and Ghaziabad
    Different districts of Uttar Pradesh
    Different districts of Haryana and Punjab
Distribution Time - Ghaziabad
 Branch Warehouse in Ghaziabad to retail outlets and
 dealers
   Local Delivery – 4 hours
   Upcountry Delivery – 12 hours
   Within 200 km – 24 hours
   Beyond 200 km – 48 hours
Whirlpool India - Warehouses
 Mother Warehouse
   Warehouse where the products from the factory are kept and from that
    warehouse, the products are then sent to the Branch Warehouse
   Whirlpool Washing Machines - near the factory in Pondicherry



 Branch Warehouses
   located in different regions in India
   Ghaziabad Warehouse – Dasna
   Transportation via trucks from Pondicherry
   Warehouse has 7 locations set up for following purposes –
     Selling, Secondary Sales, Insurance claim, Write Off material, Destruction of
      Item, Court Case Material, Repair
Whirlpool India - Warehouses
 Follows 5 S of Warehouse
    Sweeping, Sorting, Systematic Arrangement, Simplification
     and Self-Discipline

 Inside the warehouse, the products are pin-up with 3-
  colour paper to give easy information about the delivery
    Red Card – This is to prevent the product from distribution
     into the market
    Green Card - This is to allow the product for delivery in the
     market
    Yellow Card - After the product is labeled with Green, it is
     allowed to move into the market
Warehouse Features
 They strictly follow the 5 S of Warehouse
 They have 100% bar-Coding for all inward and outward
    transaction
   They follow standard pick-deliver process religiously
   There is negligible transit damage
   They follow a policy of allowing filing of insurance claims
    within 2 days. All claims are settled within 30 days
   There is no inter-branch transfer taking place without
    clearance from head office
   They make use of Hydraulic Trolleys for material
    movement
   They use pallets to ensure safety of materials
  Sales Office of Whirlpool
JALANDHAR
                               GUWAHATI
LUDHIANA
                                RANCHI
CHANDIGARH

                                KOLKATTA
NEW
DELHI
 GHAZIABAD
                              BHUBHNESHWAR
JAIPUR

  PATNA
LUCKNOW



AHMEDABAD

 SURAT
                               HYDERABAD
INDORE
                                  VIJAYWA
RAIPUR                            DA
                               VIZAG
 NAGPUR
                              BANGALORE
MUMBAI
                              PONDICHERRY
 PUNE

 GOA
                                COCHIN
  Branch
  Office                        CHENNAI
  Area
  Office                        COIMBTORE
Logistics Flow Organization
Structure                       CORPORATE
                                 LOGISTICS


                               DISTRIBUTION       OPERATIONS
       TEAM HEAD                   AND                AND
                               PLANNING (FGs)       TRAFFIC


    ZONAL HEADS FOR                               TO DEAL WITH
   2 ZONES (South & west,      PRODUCT WISE        TRUCKERS
        North & east)                           & TRANSPORTERS


                    BRANCH LOGISTICS
                       INCHARGE



                                     CFA’s &
                                   WAREHOUSES
Whirlpool Channel Structure

Consumers for Whirlpool include individual consumers as
well as institutional clients


Whirlpool also indulges in e-retailing as an alternative
channel through its website www.whirlpool.com



Whirlpool also has a separate channel for services and spares
Types of Channel Structure
Whirlpool India Ltd follows 2 tier channel structure. These
are discussed below

•Two Level Channels
                   Brand
  Company                         Customers
                   Shop


                                  Direct
  Company         Warehouse
                                  Dealers
                                                 Customers




•One Level Channel
  Company         Distributors    Sub Dealers    Customers
  Warehouse
Channel Partners

 Wholesalers
 Dealers
 Stockist
 Van dealers
 Selling agents
 Manufacturing agents
 Brokers
 Retailers
Distributors
 Distributors are appointed for cities which require more
    focus and attention.
   Company sends goods to the distributor on outright sale
    basis.
   Conduct sales and marketing on behalf of the company.
   Distributor sends his people on field to book & execute
    orders.
   Maintains his own sales, delivery and accounts people for
    the unit’s working & is served by the nearest C/F for all his
    requirements.
   The distributor is given a margin of 12-15%
Delivery Schedule & Ordering
 C&F Agents takes 1 day to service reorder within their
  zones.
 If goods have to be procured from the warehouse then it
  takes 2-3 days (average) for the goods to arrive at the C/F or
  distributor and delivered to the stores no inventory
  management system in place.
 Franchisee showrooms do have a system in place to
  consolidate their inventory and sales with the company
  main office.
 If any reorder do come in during the month then the
  regional warehouse that entertains them properly services
  them.
Inventory Management
 Economic Order Quantity Model


 The Economic Order Quantity Model is used widely at
  Whirlpool to determine how much to order in a
  continuous system of production.
 It helps in determining the optimal order size that
  minimizes total inventory costs.
Recent initiatives
 To increase markets share, Whirlpool is launching new products and
    expanding dealer network
   Recent efforts to expand distribution network include road shows and
    dealer contact programmes in Tier-II and Tier-III cities
   Due to these initiatives, Whirlpool added around 2000 dealers in 2009-
    10
   With strong demand translating into good pricing power, Whirlpool
    has managed to pass on some of the increased raw material costs to
    buyers
   Whirlpool India has also cut down its debt burden facilitating more
    spend on promotion and distribution

http://www.thehindubusinessline.com/iw/2010/05/23/stories/20100523509
   21100.htm

								
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