ITC Bingo , Sales and Distribution , Summer Internship by harsh1234

VIEWS: 3,403 PAGES: 14

More Info
									To identify the inefficiencies in the Sales and Distribution Chain from Distributor to the retailer , and suggest processes and methods to rectify them.

Submitted in partial fulfillment of the MBA degree at SIBM , Bangalore

Project Mentor : Ravi Sharma , Branch Manager ITD , Marketing , ITC Ltd., Bangalore.

Submitted by: Harshvardhan Singh Chauhan
Copyright 2009 , ITD Marketing, ITC , Bangalore. 1

Presentation Plan

•Understanding the Sales And Distribution Chain •Tracking Sales loss Across Bangalore •Tracking the variation in supply •Opportunities to avoid the Sales •Order Booking Model •Hybrid Model Solution •Pure Order Booking Model

Copyright 2009 , ITD Marketing, ITC , Bangalore.

2

Understanding the Sales And Distribution Chain

AE

• ITC - WD link • Leads Supervisor & DS Team

Wholesale Distributor
AE

Supervisor

• WD - DS link • Stock , Route , Sales Planning , DS Training & Development

Supply Chain
Salesman

• WD - Channel link • Sales , Merchandising

Channels
Grocery , Bakery , Chemist ,Fancy Stores , Consumption Centre Convenience , Hawker, ISS,HORECA , PG&C, Wholesale

Salesman

Supervisor

Salesman

Copyright 2009 , ITD Marketing, ITC , Bangalore.

3

Processes in the chain

Wholesale Distributor
AE

Sales Call Close

Planning & Preparation

Supply Chain
Salesman

Channels
Grocery , Bakery , Chemist ,Fancy Stores , Consumption Centre Convenience , Hawker, ISS,HORECA , PG&C, Wholesale

Sales Call Process

Merchandising

Stock Check & Presentation

Supervisor

Salesman

Sales and Billing

Planning & Preparation

•Load Adequate Stock , Merchandising Material •Carry Pending Bill , Rack Cleaning Material , Planogram , Bill Book
Quality of Service

Coverage

Stock Check & Presentation

•Check Stock On Hand , Expiry Stock , DND •Inform Previous week sales , Suggest Purchase Quantity per SKU and Top UP

Sales Value/Volume

Sales Deliverables •Confirm Order , Cut the Bill •Deliver Order

Sales and Billing

Line Cuts

Productivity

•Clean Rack , Rotate new stock on rack , Hang Ladis •Exchange DND , Add Top-Up
Merchandising

Bill Cuts

Copyright 2009 , ITD Marketing, ITC , Bangalore.

4

Inefficiencies in Loading
Loading Sale Negotiate Merchandising DND Collection

Delivered

•ECD •Stock at hand •Supplies •Reserve Stock •Cash at hand

Stock with DS
Stock at WD

•Stock at WD point •Route Demand •Carrying Capacity

Copyright 2009 , ITD Marketing, ITC , Bangalore.

5

Dynamics involved in a Sales negotiation
DND Collection

Loading

Sale Negotiate

Merchandising

•DS pushes available stock •Maximize sale value , bill cuts, lines cut •Retailer’s capacity to pay

SKU’s Available

SKU’s Demanded

•Prefers high selling SKU’s •Prefers more credit & variety •Induces Sales Cannibalization

Retailer’s Push

Demand
Salesman’s Push

Supply

Copyright 2009 , ITD Marketing, ITC , Bangalore.

6

Inefficiencies in Merchandising
Loading Sale Negotiate Merchandising DND Collection

•Stock Check •Hanging Ladis •Arranging on rack •New Stock Rotation on rack

•Expired stock •Air out Packets •Unsold / Obscured packets in stores •Lost visibility

Copyright 2009 , ITD Marketing, ITC , Bangalore.

7

Tracking the Sales Loss 33% 20% 26% 25% 31% 32% 37% • High Average Daily Actual Sales of Rs.5020 •Low Billed Outlets Coverage 30.71% •Excess Stock 60.43% •Expected Daily Sales of Rs.7832 per DS •High Average Daily loss of Rs.2812 per DS •Huge Demand Supply Mismatch •Stock Unavailable 99.99% •Stock out 0.01% •Sales loss of 35.5%

27%

Across 112 routes , 4200 + outlets , 8 WD points

Copyright 2009 , ITD Marketing, ITC , Bangalore.

8

Inefficiencies in Supply
500 400 350 300 250 200 150 100 50 0 450 400 350 300 250 200 150 100 50 0 250 200

150
100 50 0

ECD + Reserve Supply + SOH

Variation in demand and supply for January’09 •Only Three variants supply was close to demand •91.38% excess supply •Four variants were under supplied •One variant had close to 100% excess supply •Reserve stock of five days was taken •ECD is prepared by the Area Executive •Total Variation of 83%
9

•10 variants supplied •Three variants supply was only 50% of demand •Two variants supply of more than 100%

Copyright 2009 , ITD Marketing, ITC , Bangalore.

Was Sales loss avoidable?
50 45 40 35 30 25 20 15 10 5 0 MAA5 MAC5 HJM5 MAT5 CNA5 FRT5 JTK5 PS5 SMR5 ICO5 RCB5 HJT5 250 200 150 100 50 90 80 70 60 50 40 30 20 10 0 MAA20 MAT20 JTK20 PS20 MAD20 CNA10 FRT10 HJM10 HJT10 ICO10 JTK10 MAA10 MAD10 MAT10 PS10 RCB10 SMR10 SMR20 ICO20 RCB20

MA

0

35 30 25 20 15

10
5 0 MAA5 MAC5 HJM5 MAT5 FRT5 ICO5 JTK5 PS5 SMR5 CNA5 RCB5 HJT5

MAA20

MAC20

MAA10

MAC10

79 KGs of transfer

380 KGs of transfer

MAT10

SMR10

ICO10

CNA10

HJM10

RCB10

HJT10

FRT10

JTK10

212 KGs of transfer

Cover Day Report Analysis for MA Associates & Rushub as on May 30th ‘09

Copyright 2009 , ITD Marketing, ITC , Bangalore.

MAT20

10

SMR20

ICO20

RCB20

PS10

JTK20

PS20

90 80 70 60 50 40 30 20 10 0

14 12 10 8 6 4 2 0

Rushub

The Order Booking Model – Rushub HIGHLIGHTS •Two routes clubbed together in one day •Alternate day cycle of Order Day (OD) and Supply Day(SD) •Visibility of DS is just doubled per route •22 day average : Inc Sales 25.64% ,Inc Bill Cuts 70.33% , Inc Lines Cut 44.31% •K4 costs reduced by 40.20% : Saving of Rs.8 in servicing per outlet HYBRID MODEL WEEKLY PLAN
DAY 1 ORDER BOOKING DAY 2 JOHNSON BENSON

DELIVERY
DAY 3

JOHNSON

BENSON

ORDER BOOKING
DAY 4 WEEK 3 DELIVERY DAY 5 ORDER BOOKING DAY 6

SHIVAJI

AUSTIN

SHIVAJI

AUSTIN

Sales 39.49% Bill Cuts 82.6% Sales 57.89% Bill Cuts 84.9% Lines Cut 58% WEEK 1 Sales 48.76% Lines Cut 54% Bill Cuts 78.5% Lines Cut 40%
WEEK 2

FRAZER

NEELSAND RA NEELSAND RA

DELIVERY

FRAZER

Copyright 2009 , ITD Marketing, ITC , Bangalore.

11

The Hybrid Sales and Distribution Model – MA Associates HIGHLIGHTS •Two routes clubbed together in one day •Alternate day cycle of Order Day (OD) and Supply Day(SD) •Visibility of DS is just doubled per route •25 day average : Inc Sales 23.81% ,Inc Bill Cuts 112.34% , Inc Lines Cut 45.29% •K4 costs reduced by 40.20% : Saving of Rs.8 in servicing per outlet HYBRID MODEL WEEKLY PLAN
DAY 1 ORDER BOOKING DAY 2 SUDAM NAGAR SUDAM NAGAR VINAYAK NAGAR VINAYAK NAGAR

DELIVERY
DAY 3

ORDER BOOKING
DAY 4 WEEK 3 DELIVERY DAY 5 ORDER BOOKING DAY 6

SOMSHWR NAGR SOMSHWR NAGR

OG PALYA

OG PALYA

Sales 39.49% Bill Cuts 179% Sales 37.89% Bill Cuts 156.9% Lines Cut 58% WEEK 1 Sales 16.98% Lines Cut 40% Bill Cuts 101.5% Lines Cut 47%
WEEK 2

BISMILLAH NAGAR BISMILLAH NAGAR

SG PALYA

DELIVERY

SG PALYA

Copyright 2009 , ITD Marketing, ITC , Bangalore.

12

The Pure Order Booking Model – Emerald HIGHLIGHTS •Four routes covered by 4 DS on OD •15-18% more outlets added in each route •Increased Coverage per route •Two supply vehicles used for 4 routes on SD •22 day average : Inc Sales 15.91% ,Inc Bill Cuts 25.4% , Inc Lines Cut 25.33% •K4 costs remains same at Rs. 2600/- for four days MODEL WEEKLY PLAN
DAY 1 HANU MAN SRI NAGAR GIRI NAGAR MAUNJ A RD

ORDER
DAY 2 DELIVERY DAY 3 ORDER DAY 4 DELIVERY

HANUMAN+SRI

GIRI+MAUNJA

HANU MAN

SRI NAGAR

GIRI NAGAR

MAUNJ A RD

HANUMAN+SRI

GIRI+MAUNJA

WEEK 3 WEEK 2 WEEK 1

Sales 15.91% Bill Cuts 25.4% Lines Cut 25.33%
Copyright 2009 , ITD Marketing, ITC , Bangalore.

13

The END

Copyright 2009 , ITD Marketing, ITC , Bangalore.

14


								
To top