This document proposes an outbound distribution solution for Dabur's operations in India. Currently, Dabur uses 18 Central Fulfillment Agents (CFAs) and 150 stockists across India. The proposed solution involves establishing Regional Distribution Centers (RDCs) that would receive bulk shipments from Dabur plants and break them down by region. For example, an RDC proposed in Hosur, Tamil Nadu would service stockists in Tamil Nadu, Karnataka, and Kerala. The RDC would generate stockist-specific orders and shipments, which would be invoiced at billing points located near major stockists. This would consolidate inventory and transactions while allowing for next-day delivery to most stockists. Establ

1. Dabur :Outbound Distribution
Solution
Saleesh S
Worldwide Logistics

2. Our Understanding of your process
 All India operations done through 18 CFAs and
150 stockists
Zonal wise CFA allocation
South Zone
1. Hyderabad
2. Bangalore
3. Chennai
4. Cochin
East Zone
1. Patna
2. Ranchi
3. Guwahati
4. Bhubaneshwar
5. Raipur
6. Calcutta
West Zone
1. Ahmedabad
2. Bhiwandi
3. Indore
North Zone
1. Ambala
2. Delhi
3. Chandigarh
4. Jaipur
5. Lucknow

3. Suggested Outbound Distribution on a large perspective
Dabur plant/CDC
RDC(Hosur)
•FTL Movement
•Consolidated Shipment for South
India
Cochin Billing Point
Tamil Nadu stockist
Bangalore Billing Point
•Break bulk
•Region-wise picking (Billing point)
•Invoicing and Packing
•Put Away
•Receipt of consignment
•Sorting and Grading
•Stockists wise billing
•Transport Help Desk
•Route Plan
•Despatch
Stockist Stockist
Delivery made directly to the
dealers on the basis of their
indents

4. Activity Chart
• The Consignment Moves as an FTL from the Plant to RDC whereby the RDC
processes the stockist order located at different regions and does a stock transfer to
their respective locations.
An hypothesis scenario:
• Hosur as an RDC shall be controlled and operated by the team comprising of three
people who shall be in charge of TN , Karnataka and Kerala stockists.
• For instance, the Consignment to Cochin moves as an FTL; here the break bulk
happens at the billing point in Cochin whereby stockist biorders are generated and
then it is transshipped to the respective stockist at various location.
• The cut off time maintained at the RDC will be 11am. Online Intends (requirements)
received before 11 am will be delivered the next day morning before 10 am at the
billing point.

5. Hub And Spoke Distribution in Kerala
Stockist No
ALAPUZHA 2
CALICUT 6
COCHIN 1
COIMBALORE 1
ERNAKULAM 5
KOCHI 2
KOTTAYAM 5
KOZHIKODE 3
NEYYR 1
TRIVANDRUM 7
TRICHUR 4
TRICHY 1
TRIVANDRUM 2
Billing Point and
Stockists
Geographically
mapped

6. Suggested Distribution Network for : COCHIN BP to various Stockist
Skeleton sketch of road map
KOCHI and TRIVANDRUM
Kottayam
33

7. Case II-Karnataka Scenario
Stockist No
BANGALORE 17
DHARWAD 2
HUBLI 3
MANGALORE 6

8. Suggested Distribution Network for : Karnataka Stockist

9. Case III - Chennai An Overview
Stockist No
CHENNAI 15
COIMBATORE 7
MADURAI 7
NAGERCOIL 1
PONDICHERRY 1
SALEM 4
OUTSKIRTS 2
VELLORE 1

10. Suggested Distribution Network for : Chennai Stockist

11. Contd..

12. Dabur plant
RDC ( Hosur )
Billing Points
Material flow
Information flow
Dealer / Stockist
Dealer / Stockist
RDC Distribution Process
STOCKISTWISE ORDER GENERATED
PICKING,
LABELLING DONE FOR IDENTIFICATION AT BILLING POINT
STRAPPING & DESPATCH
ORDERS TO BE
PLACED TO RDC
BEFORE 11 PM
SORTING AND GRADING
PRINTING INVOICE STOCKIST WISE
DESPATCH TO STOCKIST
INVENTORY
VISIBILITY
STOCK
REPLENISHMENT
(FTL MOVEMENT)
LTL,PARCEL,ATTACHED VEHICLE FOR
DROP POINTS,MILK RUN
FTL,LTL,ATTACHED
VEHICLE

13. SUPPLY CHAIN SOLUTION
 Billing point ( Cochin) to be within the state for sales tax
purpose.
 Only stock transfer can be done from the CDC to RDC.
 RDC (Hosur) will have a choice to fulfill the order directly to
stockist or route it through SDC or Billing points.
 The dealer orders the material through a CRM to the
command and control center.
 The orders are approved by the Dabur authorized person
sitting anywhere in the country.
 The approved orders are visible to the respective
RDC/SDC/Billing point
 RDC will stock transfer the goods to the respective
SDC/Billing point

14. Contd..
 Invoice is generated at the Billing point as per the requirement of
the Stockist .
 The stock can be held upstream (Central distribution center at
Delhi) and transferred when an order is placed. The fastest mode
of transport can be identified for reaching material to the dealer.
 The stock can be committed further down stream to the regional
distribution centers. Against specific orders, stock can be moved to
the distributors essentially through a mixed strategy of stock
transferring to the state and billing at destination.
 In the case of Kerala and Karnataka distribution , a small
infrastructure (One man billing point) can be maintained at the POS
(Point of sale) location that will be common for the state. This will
be a shared facility of Mahindra , where manpower and capex will
also be shared.

15. BENEFITS of RDC and Billing point
 Upstream Consolidation of Inventory and Single point of
transaction
 This helps in reducing the warehouse space and operational
expenses at a larger perspective .
 Removes the dependence from C & Fs.
 With CST coming to an approprial level , Dabur has the option to
distribute directly from the RDC ,there by removing Billing points
from the whole supply chain in less than a day’s time.
 Inventory and transaction visibility .
 Immediate order generation and order fulfillment .
 Order received at the RDC will be dispatched on the same day
and reaches the Billing point next day morning.

16. Two Sides of the coin
Challenges
It may seem that an additional tier has been added
to the entire supply chain
Solutions
The RDC helps in holding inventory upstream and
acts as an agent for single point transactions
thereby reducing the overheads to a considerable
level
Creating a Billing point an additional expense The Billing point generates the invoices of various
distributors thereby reducing the complexities of
multiple invoices. BP would not be huge
investment for Dabur because in comparison to
CFAs they accommodate very less area and
manpower too.Morover BP could be taken off
within a day’s time at the company’s discretion
Selection of RDC at a Strategic Location The idea is to cater to three major market in an
overnight delivery time, (Hosur) as an RDC
justifies this statement.
Reduction in Transportation cost and other
overheads
In case of bulk transport the cost to the company is
10 times lesser than the individual transportation.
Stock transfers reduces the confusion of CST

17. Thank you