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The presentation describes the supply chain of Parle-g biscuits from the manufacturer to the retailer and ultimately to the customer
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Biscuit (Parle-G)Biscuit (Parle-G)Supply ChainSupply Chain
Team MembersTeam MembersBiswajit NagJivesh GaurKaran Rai BahadurRajat Kaushal Shivjeet DeshmukhSuyog ManwatkarVinit Pujara
Distributor IntroductionDistributor Introduction The distributor: Mr. Sachin Gore M/s Jui Enterprise Operational since last two years The team:7 members
Manufacturer
Distributor Retailer Custome
r
Material
Funds
Info
Flows in Supply ChainFlows in Supply Chain
Retailer
CMU
(Central Manufacturing Unit)
Distributor
Customer
Depot
• 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 full truck load (LPT).
Parle Factory
RetailerInstitutions
Eg. Hospitals
Distributor(Retailer)
Distributor(Institutional)
Customer
Distribution Strategy
Parle Factory Locations
Distributor Selection
Filling Application FormVisit 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.
Contract between Manufacturer & Distributor: renewed yearly.
Expected Target growth rate of distributor:
50-55%. Failure to meet Minimum sales commitment may
lead to creation of additional distributor or cancellation of existing distributor.
Complain solving mechanism Regular Audits
Distributor License & Registration
Food License From Corporation
-- Yearly RenewedShop Act
Both required for stocking of goods.
Fax on PDP date 28/29th to CMU
Acknowledges Fax, Generates Invoice,
Sends mail to delivery div.
Informs Transporter,
Material Loading
Material unloading, Physical counting
Info Flow between Manufacturer
& DistributorOn the morning of delivery day, a fax is sent to the
CMU office for confirmation of the demand.
CMU confirms the fax receipt & accordingly raises the invoice. With 12.5% VAT & Inco terms as FOR . At the same time, the dispatch department is communicated for vehicle arrangement & loading of the material.
Software used @ Parle CMU: SAP
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 raises the invoice.
Inco term: FOR .
At the same time, the dispatch department is communicated for vehicle arrangement & loading of the material.
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
Payment is made to the manufacturer by RTGS within 4 days of receipt of material.
Profit Margin of Distributor-Approx 4%
Material Flow from Manufacturer to Distributor
CMU Distributor
Transportation Time 2 Hours Approx
Material checked for damage and loaded in LPT
Material unloaded Distributor signs the invoice copy against the quantity received & mention the shortages, if any
Packing TypesPacking 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
PackagingEntire Packaging done at the CMU.7 carton stacking limit
Broken & Damaged Goods Breakages & damages: Not common as checking is done
at the delivery end while loading.
If they do occur, debit note is raised by the distributor to the CMU along with a mail.
Shelf life of biscuits: 6 months The expired unsold material, if any, is burned/scrapped
at distributor’s end & only empty labels are send back to the CMU to avoid additional unnecessary transportation charges.
The reimbursement against the rejected material depends upon the authority level i.e. SM, DSM, & NSM.
At the Distributor
Distributors Warehouse: Karve NagarArea: 550 Sq. footAll kinds of protection against rain,
moisture, rodents and insects taken by the distributor
Hygiene maintained well
Distributors Storehouse
Products Dealt with by Distributor
Funds Flow between Distributor & Retailer
Payment from retailer:15-21 days of creditSoftware used: TallyRetailers profit margin:
MRP – Landing cost
Material & Info Flow from Distributor to Retailer
FIFO system (Fist in first out) is followed by Distributors to avoid expiry losses
Delivery on the next day itself
Sales cycle – 8 days
Geographical limit: Pune City
Route plan prepared as per area to be covered.(12 identified routes)
Transportation used: 3 wheelers (3)
Weekly Transport Plan
Interesting Facts about Parle-Interesting Facts about Parle-GG"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).
As per Distributor, Parle- G is operated at no “profit no loss” as a part of social service
Taste and product well established among people and hence used to promote other products
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)
THANK YOU!!!!!!!
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