DISTRIBUTION MANAGEMENT OF HUL Krunal Gandhi Ajay Singh Jodha
Distribution Management of HUL HULs products, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever provide tailor made services to each of its channel partners.
Distribution Management of HUL HUL is using the point of purchase method for much higher level of direct contact, through in-store facilitators, sampling, education and experience. It has developed customer management and supply chain capabilities for partnering emerging self-service stores and supermarkets. 2,000 suppliers and 7,500 distributors serve HLL’s 100 factories which are decentralized across 2 million square miles of territory.
Distribution Management AT THE URBAN CENTERS Distribution of goods from the manufacturing site to C & F agents take place through either the trucks or rail roads depending on the time factor for delivery and cost of transportation. Generally the manufacturing site is located such that it co vers a bigger geographical segment of India. From the C & F agents, the goods are transported to RS’s by means of trucks and the products finally make the ‘las t mile’ based on the local popular and cheap mode of transport.
Distribution at the VillagesThe company has brought all markets with populations ofbelow 50,000 under one rural sales organisation.The team comprises an exclusive sales force and exclusiveredistribution stockists.The team focuses on building superior availability of products.In rural India, the network directly covers about 50,000villages, reaching 250 million consumers, through 6000 sub-stockists.
E- Shakti (HUL)Enhancing livelihoods.75000 poor women havebenefited with anadditional income ofRs.18.75 Crore througha livelihoodenhancementprogramme establishedby a unique corporate-NGO partnership
Distribution at the SupermarketsHUL has set up a full-scale sales organisation, for thischannel to serve modern retailing outlets.Product tests and in-store sampling is provided toconsumers.
Harnessing Information TechnologyAn IT-powered system has been implemented to supplystocks to redistribution stockists.The objective is to make the product available at the rightplace and right time in the most cost effective manner.For this, stockists have been connected through anInternet-based network, called RS Net, for onlineinteraction.RS Net is part of Project Leap, HULs end-to-end supplychain.
Pioneering New Channels Hindustan Unilever is simultaneously creating new channels, designed on the same principle of holistic contact with consumers. Project Shakti : HULs partnership with Self Help Groups of rural women. Started in 2001, Project Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka, Gujarat and others. Hindustan Unilever Network (HUN): it is the companys arm in the Direct Selling channel. It presents a range of customised offerings in Home & Personal Care and Foods.
Pioneering New Channels Out-of-Home : this deals in providing vending machines for hot beverages like tea and coffee. HUL’s alliance with Pepsi Co. has significantly strengthened the channel. Health and Beauty services : Lakme Salons provide specialised beauty services and solutions, under the recognised authority of the Lakme brand. The Ayush Therapy Centres provide easy access to authentic Ayurvedic treatments and products.
EXAMPLE January 2011 rejigging rural distribution network What is the change? Removal of Star Seller Reduced margins of the distributors How? RDs will start from base town. Appoint wholeseller Star seller for long distance
ConclusionHindustan Unilever, which once pioneered distribution inIndia, is today reinventing distribution - creating newchannels, and redefining the way current channels areserviced. In the process it is converging productavailability, with brand communication and brandexperience.