Related to research

1. Supply Chain Of HUL
NISHTHA
POOJA
ROHAN
SHARMEE
N
UDIT

2. What is FMCG?
 Frequently purchased goods
 Replaced within a year
 Quick turnover
 Relatively low cost
 Key Segments : Household care ,
Personal care, Food & Beverage.
 Major Players : HUL , ITC , P&G,
Nestle , Dabur

3. HUL
 India’s Largest FMCG
 Was formed in 1933 as Lever Brothers
India ltd.
 Headquartered in Mumbai
 Over 15,000 employees
 Over 700 million consumers
 Market leader in Indian products such as
tea, soaps, detergents etc.
 Has over 100 factories across India for
manufacturing its diverse product range.

6. Supply Chain Management
 Supply chain management is the
management of the flow of goods. It
includes the movement and storage of
raw materials, work-in-process
inventory, and finished goods from
point of origin to point of consumption.

9. HUL Supply Chain
 HUL sources Raw materials from
2000+ suppliers.
 HUL owns
100+ manufacturing plants across the
country.
 The general trade comprises
Supermarkets, grocery stores,
chemists, wholesale and small Kirana
shops.
 HUL provide Tailor-made services to
each of its channel Partners.

11. HUL Distribution Network
 The Company Supplies directly to 35
Carry and Forwarding Agents(CF&A)
.These CF&As regularly feeds the Re-
Distribution stockists who are next in the
hierarchy.
 Product distributed through a Network of
7000+ Re- Distribution Stockists (RS)
Covering more that 1Millions retail
outlets.
 Entire Urban Population is directly
covered by this Distribution network.

12. Urban Distribution Network
 The Carry and Forwarding Agent (C&FA)
is
supplied by The company’s production
facility.
 Either Rail or Road transport is
used depending upon the time factor for
delivery and transportation cost.
 Generally the factory location is such
that it covers a large geographical area

13. Urban Distribution Network
 From the Carry and Forward agent (C&FA)
the goods are supplied to Redistribution
stockiest.
 In this steps trucks are used.
 The Re-distribution stockiest supplies the
wholesaler.
 The Wholesaler supplies to the retailer, here
the local popular and cheap mode of
transport is generally used.
 The retailer makes the product available to
the customer

14. Rural distribution network
 HUL approached rural market by two criteria :
Accessibility and Viability.
 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 re-distribution stockiest who is
responsible business in particular town.
 The team focuses on building superior
availability of products.

15. Rural distribution network
 In the 25% of the accessible markets with low business
potential , HUL assigned a sub-stockiest who was
responsible to access all the villages at least once in a
fortnight and send stocks to those markets.
 This sub‐stockiest distributes the company's products to
outlets in adjacent smaller villages using transportation
suitable to interconnecting roads, like cycles, scooters or
the age‐old bullock cart.
 In rural India, the network directly covers about 50,000
villages, reaching more than 250 million rural consumers,
through 6000 sub-stockiests.
 Lately in 2000 they launched Project Shakti Self-Help
Groups of rural women.

16. Project Shakti
 extended to about 12 states AP, UP, MP, WB,
Rajasthan, Maharashtra, Punjab.
 With the help of Women Self-help group (SHG).
 In cluster of small BPL villages with population of 1000-
2000.
 Women are chosen as Shakti entrepreneur They
receive training and goods from HUL and rural
distributor respectively.
 They sell products directly to consumers and retailers in
villages.
 Each Shakti entrepreneur serves 6-10 villages.
 They receive goods on “cash and carry basis”.
 This is a major step from HUL for women
empowerment

17. Pioneering New Channels
 1. Project Shakti
 2. Hindustan Unilever Network (HUN):
it is the company’s arm in the Direct
selling channel. It presents a range of
customised offerings in Home &
Personal Care and Foods.

18. Pioneering New Channels
 3.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.
 4. Health& Beauty services: Lakme Salons provide
specialized beauty services and solutions, under
the recognized beauty services and solutions,
under the recognized authority of the Lakme brand.
The Ayush Therapy Centre’s provide easy access
to authentic ayurvedic treatments and products.

19. Conclusion
 Hindustan Unilever, which once
pioneered distribution in India, is today
reinventing distribution- creating new
channels, and redefining the way
current channels are serviced. In the
process it is converging product
availability, with brand communication
and brand experience.