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8/3/2019 20276078 Parle Scm Project
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Biscuit (Parle-G)
Supply Chain
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Team Members
Biswajit Nag
Jivesh Gaur
Karan Rai Bahadur
Rajat Kaushal
Shivjeet Deshmukh
Suyog Manwatkar
Vinit Pujara
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Distributor Introduction
The distributor: Mr. Sachin Gore
M/s Jui Enterprise
Operational since last two years
The team:7 members
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Manufacturer DistributorRetailer Customer
Material
Funds
Info
Flows in Supply Chain
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Retailer
CMU
(Central Manufacturing Unit)
Distributor
Customer
Depot
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CMU (Central Manufacturing Unit)
Located at Vadgaon
PDP (Pre Dispatch Plan) Number of vehicles sought from the CMU
Packing size of material demanded
Tentative demand for coming month
Normally 390~400 boxes are delivered in one fulltruck load (LPT).
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Parle Factory
RetailerInstitutions
Eg. Hospitals
Distributor
(Retailer)Distributor
(Institutional)
Customer
Distribution Strategy
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Parle Factory Locations
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Distributor Selection
Filling Application Form
Visit of ASM.
Certification. Bank guarantee of 2.5 Lacs/truck load.
Payment Term Finalization - RTGS within 4
days of receipt of material. Distributor code generation.
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Contract between Manufacturer & Distributor:
renewed yearly.
Expected Target growth rate of distributor:
50-55%.
Failure to meet Minimum sales commitment maylead to creation of additional distributor or
cancellation of existing distributor.
Complain solving mechanism
Regular Audits
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Distributor License & Registration
Food License From Corporation
-- Yearly Renewed
Shop ActBoth required for stocking of goods.
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Distributor
CMUDeliveryUnit
Transporter
Fax onPDP date28/29th to
CMU
Acknowledges Fax,
Generates Invoice,Sends mail to delivery div.
InformsTransporter,
Material Loading
Materialunloading,
Physical counting
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Info Flow between Manufacturer& Distributor
On the morning of delivery day, a fax is sent to theCMU office for confirmation of the demand.
CMU confirms the fax receipt & accordingly raises theinvoice. With 12.5% VAT & Inco terms as FOR . Atthe same time, the dispatch department iscommunicated for vehicle arrangement & loading ofthe material.
Software used @ Parle CMU: SAP
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On the morning of delivery day, a fax is sent to the
CMU office for confirmation of the demand.
CMU confirms the fax receipt & accordingly raisesthe invoice.
Inco term: FOR .
At the same time, the dispatch department is
communicated for vehicle arrangement & loading ofthe material.
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Funds Flow between Manufacturer &
Distributor
Cost Components at the Distributor
Basic Rate
VAT @ 12.5% (Claimed while filing returns)
Secondary Freight (Paid by Manufacturer)-- 0.1% of the invoice amount
Octroi @ 4% (Deducted in the bill itself)
-- Aundh Octroi Booth
-- Commission agent of the distributor
(charges 1% of the Octroi amount)
Rs. 20 as surcharge to local authorities for making &processing the bill
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Payment is made to the manufacturer by
RTGS within 4 days of receipt of material. Profit Margin of Distributor-Approx 4%
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Material Flow from Manufacturer toDistributor
CMU Distributor
Transportation Time
2 Hours ApproxMaterial
checked fordamage
and loaded
in LPT
Material
unloadedDistributor
signs the invoice
copy against the
quantity received
& mention theshortages, if any
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Packing Types
Price (Rs.) No. of Biscuits/Packet Weight/packet (Gm.)
1 4 16
2 8 44
3 12 66
4 16 83.5
5 20 99
10 40 209
15 60 313.5
20 80 418
40 160 (40*4) 825
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Packaging
Entire Packaging done at the CMU.
7 carton stacking limit
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Broken & Damaged Goods
Breakages & damages: Not common as checking is doneat the delivery end while loading.
If they do occur, debit note is raised by the distributor tothe CMU along with a mail.
Shelf life of biscuits: 6 months
The expired unsold material, if any, is burned/scrappedat distributors end & only empty labels are send back tothe CMU to avoid additional unnecessary transportation
charges.
The reimbursement against the rejected material dependsupon the authority level i.e. SM, DSM, & NSM.
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At the Distributor
Distributors Warehouse: Karve Nagar
Area: 550 Sq. foot
All kinds of protection against rain,
moisture, rodents and insects taken by the
distributor
Hygiene maintained well
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Distributors Storehouse
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Products Dealt with by Distributor
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Funds Flow between Distributor &
Retailer
Payment from retailer:15-21 days of credit
Software used: Tally Retailers profit margin:
MRPLanding cost
M i l & I f Fl f Di ib
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Material & Info Flow from Distributor
to Retailer
FIFO system (Fist in first out) is followedby Distributors to avoid expiry losses
Delivery on the next day itself
Sales cycle8 days
Geographical limit: Pune City
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Route plan prepared as per area to be
covered.(12 identified routes)
Transportation used: 3 wheelers (3)
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Weekly Transport Plan
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Interesting Facts about Parle-G
"Parle-G" boasts of being the largest selling
biscuit in the world
It enjoys 70% market share in India in the
glucose biscuit category. The brand is estimated to be worth over Rs
2,000 crore (Rs 20 billion).
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As per Distributor, Parle- G is operated atno profit no loss as a part of social
service
Taste and product well established among
people and hence used to promote other
products
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Ingredients of Parle-G
Wheat Flour, Sugar
Partially Hydrogenated Edible Vegetable
Oils
Invert Syrup, Leavening Agents ,
Salt, Milk Solids, Emulsifiers and Dough
Conditioners
Contains Added Flavours (Artificial)
(d - Glucose, Levulose)
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THANK YOU!!!!!!!
QUESTIONS??????