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Consumer
Goods & Retail
Unresolved Conflicts
Copyright © 2015 Vector Consulting Group. All rights reserved.
A typical company in the
Indian consumers good sector
deals...
while the same is stocked
out in another location
High inventory of some
products in some locations
despite having distrib...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Distributers always
demand for excess
margins but mostly
pa...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Some organizations in Indian consumer sector
have been able...
Case Studies
1. Godrej Interio
2. Godrej Megasari
3. Bajaj Electricals
Copyright © 2015 Vector Consulting Group. All rights reserved.
Godrej Interio
Leading player in customized
home kitchen so...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Godrej Interio
50% to
The
ex-factory
On- time -in- ...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Godrej Interio
Largest international
business unit of godre...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Godrej Megasari
The TOC
sales pilot conducted
with ...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Godrej Megasari
Service
levels from
branches / depo...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Bajaj Electricals
Leading company in
consumer electrical
eq...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Bajaj Electricals
The
secondary
sales is up by
more...
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Consumer Goods & Retail Industry Case Study

Some organizations in Indian consumer sector have been able to solve the age old inventory dilemma : how to have the right inventory at the right place and the right time.

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Consumer Goods & Retail Industry Case Study

  1. 1. Consumer Goods & Retail Unresolved Conflicts
  2. 2. Copyright © 2015 Vector Consulting Group. All rights reserved. A typical company in the Indian consumers good sector deals with following conflicts
  3. 3. while the same is stocked out in another location High inventory of some products in some locations despite having distributers with marked out territory Very high level of cross territory dumping Copyright © 2015 Vector Consulting Group. All rights reserved. despite having the nearest warehouse only few days (or hours away) Some items have inventory worth few months in the selling locations
  4. 4. Copyright © 2015 Vector Consulting Group. All rights reserved. Distributers always demand for excess margins but mostly pass them out to retailers. Wholesalers damage the brand by resorting to bulk buying and selling but they presumably also solve the reach problem.
  5. 5. Copyright © 2015 Vector Consulting Group. All rights reserved. Some organizations in Indian consumer sector have been able to solve the age old inventory dilemma : how to have the right inventory at the right place and the right time.
  6. 6. Case Studies 1. Godrej Interio 2. Godrej Megasari 3. Bajaj Electricals
  7. 7. Copyright © 2015 Vector Consulting Group. All rights reserved. Godrej Interio Leading player in customized home kitchen solutions. Offers Innovative interior solutions for living room, bedroom, kids room, offices, etc and adds a touch of sophistication and style to homes & offices.
  8. 8. Copyright © 2015 Vector Consulting Group. All rights reserved. Results Godrej Interio 50% to The ex-factory On- time -in- Full performance has gone up from around 98% Order booking has been growing at around 25%y-o-y
  9. 9. Copyright © 2015 Vector Consulting Group. All rights reserved. Godrej Interio Largest international business unit of godrej consumer products. PT Megasari Makmur (Godrej Indonesia) is a leading player in household insecticides(Hit), air freshners (stella) and wet tissues (mitu) in Indonesia.
  10. 10. Copyright © 2015 Vector Consulting Group. All rights reserved. Results Godrej Megasari The TOC sales pilot conducted with the company's largest modern trade partner, Indomart, resulted in a dramatic (41%) reduction in the retailer's inventory while improving availability to a consistant 100% 98% to Availability at central warehouse and depots / branches has increased from 92% to 98% ROCE increased from 47% to 65%
  11. 11. Copyright © 2015 Vector Consulting Group. All rights reserved. Results Godrej Megasari Service levels from branches / depots to customers has improved from 97% 95% to Approx. 14% (8200 sq.m) of the warehouse space has got released. Inventory turns improved by 37%(from 6.38 to 8.75) Overall inventory days has been reduced by 28%
  12. 12. Copyright © 2015 Vector Consulting Group. All rights reserved. Bajaj Electricals Leading company in consumer electrical equipment manufacturing. Provides solutions for architectural lighting, commercial & residential lighting, fans, consumer durables products.
  13. 13. Copyright © 2015 Vector Consulting Group. All rights reserved. Results Bajaj Electricals The secondary sales is up by more than 50%The reach has doubled, retailers added 40%new SKUs

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