Distributor Sell around 4000 liters/day.</li></li></ul><li>MOSILLA CAKES<br /><ul><li> Company provides wide variety of flavored layered cakes and pastries.
Perishable products have shelf life of 2month.
The physical distribution is critical in distribution channel</li></li></ul><li>Distribution Model<br />Manufacture/ Production<br />Depot<br />Depot<br />Depot<br />Depot<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Distributor<br />Retailer<br />Retailer<br />Retailer<br />Retailer<br />
The production centre/manufacturing plant is in Peenya Industrial Area, Bangalore.<br />From the production centre goods are sent to Depots of the company, which are located in four zones of Bangalore.<br />Each depot supplies goods to its respective distributors(10 each).<br />Each Distributor’s salesman visit retailers to collects the order(order booking).<br />Distribution Channel<br />
Each distributor has 2 salesman who visit 20 shops per day. 20 x2 = 40<br />6 working days/week. 40 x 6= 240<br />10 distributor per depot. 240 x 10 = 2400<br />Four depot. 2400 x 4 = 9600<br />Therefore total 9600 shops are covered every week.<br />Current order is collected which will be delivered next day and collection for previous week is done.<br />Sales Calls<br />
9 Big Bazaar Outlet.<br />21 Spencer stores.<br />These large retailers are supplied goods directly from the depot in their corresponding areas.<br />This is done to avoid the margin being shared with the distributor. <br />Large Retailers<br />
MARGINS<br />Price of 100gm cake – Rs15/- per piece<br />Retailer would purchase the same from distributor at Rs13.50/- per piece. – Margin of Rs 1.50/- per piece.<br />Distributor at Rs12.75/- per piece. – Margin of 75p per piece.<br />
CHALLENGES<br />Time consuming activities (From manufacturer to consumer).<br />High safety concern needed as these are Perishable item(cakes, pastry foods).<br />High cost for delivery to distributor, retailer and depots.<br />Inventory management.<br />
WASTAGE DUE TO SHELF LIFE EXPIRY<br />To supply a bit lower than expected demand.<br />They should mention to their distributor that, in case of wastage they will take back the products.<br />
REPLENISHMENT MODEL<br />Every week there is a call from our sales person and hence order booking and collection is done as well. so these all activities serves as the requirements of the replenishment model.<br />Deciding the safety stock limit and lead time so that there is no shortage of the product. <br />By-pass all distribution channels and directly market the product and deliver it to the consumer itself it will reduced the time as well as the energy.<br />
INVENTORY MANAGEMENT<br />Warehouses (inventory) is not managed by the company properly, it could prove to be very costly for the company.<br />Warehousing and the amount of inventory in the warehouses is a tricky subject<br />Warehouse: Entering the shelf life of the product in the database from where a update of the product will help them in clearing the stock without much wastage of the product <br />Distributor’s inventory: Here there is not much inventory required as the product is not very high priced and the it is kept according to the needs of the customer.<br />
APPLICATION OF IT<br />Keeping track of order made by each retailer through systems installed at every distribution points so as to manage the availability of the goods.<br />Software must be installed in the systems which would send the no. of order to the manufacturing unit at the same time when it is ordered by the retailer<br />Which will help in proper flow of goods without wastage and minimized cost and time.<br />Synchronized working and best possible utilization of the available resources<br />