Supply chain management of hindustan unilever limited


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  • More then 100 brand spread across 20 distinct consumer categories with combined product volume of 4 million tonnes and sales of 13,718 cr. 35 national power brand
  • RS Net is part of Project Leap, HUL's end-to-end supply chain.
  • Supply chain management of hindustan unilever limited

    1. 1.  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
    2. 2. 1931: HUL set up its first subsidiary 1956: HUL offered 10% of its equity to the Indian public 1972: Lipton Acquisition 1984: Brooke Bond Acquisition 1986: Pond’s Acquisition 1993: Tata Oil Mills Company (TOMCO) merged with HUL 1998: HUL acquire Tata’s Lakme 2000: Modern Foods Acquisition2007:Company name was formally changed to Hindustan Unilever Limited2008:In Oct. 17th HUL Celebrate 75 years of corporate existence in India.
    3. 3. Hindustan unilever ltdPersonal Color Laundry Skin care Hair care Oral care Deodorants ayurvedic Care cosmetics Lux,lifebuoy, Fair & dove Surf excel lovely Sunsilk Pepsodent Axe Ayush Pears, Wheel lakme Ponds Clinic Close up Rexona Herbal rexona, sunlight breeze, Vaseline
    4. 4. 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
    5. 5. ConsumerDistribution Network is HUL keystrength…..
    6. 6.  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.
    7. 7.  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.
    8. 8.  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.
    9. 9. 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.
    10. 10.  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
    11. 11. 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.
    12. 12. Integrate economic, environment& social objectives with businessagenda….. 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