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Xavier Institute of Social Service

Ranchi

PROJECT ON

LOGISTIC AND SUPPLY CHAIN MANAGEMENT

OF

ACC CEMENT

SUBMITTED TO: PROF. SUBHOJIT

SUBMITED BY:- TARUN (ROLL NO- 24)


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Contents

Topic Page No

Introduction to Distribution Channel Of Acc Ltd 3

Diagrammatic Representation of the

Distribution Channel

4

Transportation to C&F Godown

10-12

District Action Plan of Acc

14-16

Premium Dealer Program of Acc 17

Channel Management Strategy 18

Customer Service 19-20

List of Distributors and Retailers at Ratu Road 21Appendixes 22-24


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Introduction To Distribution Channel Off Acc Ltd

ACC Ltd either directly dispatches cement to the customer or through dealers. The activities that

are normally outsourced are the transportation and clearing and forwarding activity. Howeverthese outsourced activities needs to be monitored to ensure that cement reaches on time. Clearing

and Forwarding of cement is normally followed for cement which is transported through

Railways. Road transport is considered to be more reliable than Railways in terms of ensuring

timely delivery. However cost considerations is a major criterion depending upon distance.

Cement Plants normally are situated far off from project locations and customers premises. Thiscould delay supply of cement to customers and high inventory costs.

To tide over these problems Companies have started setting up grinding units and Packing unitsnear major Markets. Major infrastructure projects would prefer to have a direct contact with the

Company and hence supply would be directly to these major projects from the Plant. There are

projects which are supplied through major dealers.

The advantage for the project to procure from a major dealer would be attractive credit terms and

convenience in the procurement of other building materials. The first and foremost challenge

would therefore be to set up a distribution network in line with the objectives of the Company.Distribution strategy followed would in turn determine segmentation, pricing, customer behavior

and customer communication decisions.


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Diagrammatic Representation of the Distribution Channel


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Transportation to C & F agents :Clearing and forwarding agents are employed by the company to act on their behalf. They can be

described as special category wholesalers and supply stocks on behalf of the manufacturer to the

wholesale sector or the retail sector. Their main function is distribution . They do not resell

products but act as the representative of the manufacturer.

ADDRESS OF MAIN ACC CEMENT FACTORY OF

JHARKHAND :

Chaibasa Cement Works, P.O Jhinkpani833215. District (West) Singhbhum, Jharkhand.Phone:- 91-6589-235300 / 91-6589-235224. Fax:-91-6589-235250.

OFFICE OF C&F AGENT:

RATAN LAL TARACHAND, UPPER BAZAR, RANCHI.

C&F GODOWN: NAMKUM

In Jharkhand, the ACC cement supply is done mainly from Chaibasa factory. From the factory at

Chaibasa, the cement bags are transported to C&F godown in Namkum. The main mode of

transportation is both roadways and railways. Both account 50-50% of the transportation ofcement .In fact the choice of this mode of transportation depends on a numbers of factors:-

Quantity of bags to be transported Distance between the factory and the C & F godowns Cost Time Availability of the mode of transportationA)Quantity / No. of bags to be transported:Railways are preferred in case of bulk transportation of cement. For example:- if there is

requirement of 48,000 bags , it can be easily transported through railways at once which will

otherwise require 240 trucks.

B)Distance between the factory and the C & F agent:


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The choice of transportation also depends on the distance between the factory and the C & F

agent. Longer distances are generally covered by railways.

C)Cost:There are two type of costs incurred during transportation first the rail and the road freight,

second is the loading and unloading charges. The companys objective is always cost reduction.

Hence, it always prefers that mode of transportation which is cheaper.

D)Time:Time is an important factor in case of transportation. ACC cement works on the principle of

Just in Time (Method of Inventory Management) i.e., it does not keep large amount of stockspiled up. The Logistics team always keeps a close look on the requirement of materials. The

mode of transportation should cater properly to the timely dispatch of materials as the customers

always want their product / good yesterday.

E)Availability of the mode of transportation :Transportation mainly depends on the availability of transport. For example:- Indian Railway is

a monopoly .It always prefers its regular customers, but the transportation of cement fluctuates

in different seasons, for example, its demand is at its peak from the month of December to

March , it is normal during the months of April, May and June and declines during the monsoonseason .

Transportation through railways has to be indent. It may happen that at some point of time , a

number of different types of materials need to be transported. So, railways will always prefer its

regular customers. In such a case the company has to go for road transportation .

FACTORY RAILWAYS YARD TRUCKS C&F GODOWNS DEALERS

The company provides transportation charges to C & F agents which is Rs.130 per ton of

cement. While transportation, Road Permit is required for materials costing more than Rs

50,000.If the sales tax department finds any default, it charges 3 times penalty and ceases the

goods.


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DISTRICT ACTION PLAN OF ACC LTD FOR RANCHI

DAP means analyzing the complete structure & whole volume flow of a particular market of a

District & making our strategies accordingly.

Value Proposition for ACC Cement

DAP gives a uniform & comprehensive view of the market at a micro-market level and allows

formulation of strategies at different levels.

How it is helpful for District Officers?

Gives in-depth market view and aids in planning daily strategy.

It helps in identifying new Dealers & At-risk dealers.

Improve efficiency & effectiveness in the market by helping in prioritization.

Access to comprehensive data helps in quick comparisons & aids in target setting for

dealers.

How it is useful for Channel Partners?

It gives them a sales force who is up-to date about the market and their business potentialand needs.

It helps them to have targeted conversations with DOs.


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He gets guidance from DOs on what ARs to target & how.

DAP is driven in 4 steps:-

1) Market Mapping2) Channel Structure Analysis3) Dealer Segmentation4) Action Plan

Market Mapping

It helps to map the volume flow for the entire market. Understand dealers Key Buying Factors. Understand dealer Risk profile. Determine dealer ROCE. Identify success strategies of fast growing dealers. Identify gaps in ACC offering. Identify potential non-cement dealers.We can identify ACC & competitor strategy.

Channel Structure Analysis

By this analysis, we can identify who are our privilege dealers & retailers and who are

multi brand.

It helps us to analyze the volume flow through our channel partners.


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It helps to identify key channel trends and gaps in ACC channel architecture.

It helps to identify Coverage & penetration gaps for ACC.

Dealer Segmentation

Segmentation of all dealers of the market, using structured potential assessment. Dealers are segmented based on their current ACC relationship and potential. It is used to prioritize specific segments for targeting (Cement/Non cement). Segmentation is based on micro-market analysis, retailer network, sales force, sales force

capability, business potential, market reputation, financial standing, average monthly sale

& management capability.

Action Plan

After whole analysis of the market, the following action plans are taken:-

Problem solving & prioritization. Identify targets of the specific segment. Develop and launch set of programs to retain our exclusive & high potential dealers &

increase the sales of other dealers.

Premium Dealer Program. Mystery shopping initiative. Mason scheme. Promoter-dealer linkage through channel financing.


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PREMIUM DEALER PROGRAMME

Criteria for being a Premium Dealer:

Average monthly sale>150mt Wholesale quantity>40% At least 5 Authorized Retailers attached to him.

Advantages of Premium Dealer programme

All the Authorized Retailers of a Premium Dealer are linked to him on 1-to-1 basis. Better focus & control on channel as each Authorized Retailers is attached to unique

Premium Dealer.

Dedicated Officer (PDSF) is provided to the Premium Dealer to cover & improveperformance of his ARs.

Enhanced market coverage. Better working relationship with Premium Dealer-Authorized Retailers due to incentive

disbursement & picnics.

Great matter of pride in being Premium Dealer for ACC. Assured & increased business through his unique set of ARs. Direct support from Company to his set of ARs including PDSF. Recognition provided with enhanced branding support.


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Fully engaged & loyal channel with 1 to 1 linkage. Enhanced last mile control.Maximum utilization of dealer potential.

Channel Management Strategy

Lakshya

It helps to meet Premium Dealer revenue targets.

It provides strong value proposition for appointing new PDs & ARs.

It helps to create a healthy working relationship with dealers due to reward-focused

conversations.

It creates strong incentive for dealers & sub-dealers to stay loyal & increase SOW.

The points are accumulated on the basis of following criteria:-

Target achievement consistency. Volume growth. Net Sales Value. F2R proportion. Cash discount availed. % Volume from PDRs.

Project StormThis type of activity is done in High Contribution & Low Market Share area.

It helps to achieve the targets in short term.

It is a platform to learn & brainstorm with the best minds in the company.


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Increased no. of counter visits, site visits, mystery & ghost shopping, customer & mason

meet, visible branding at PD/AR counters increases the brand pull.

It creates a feeling of pride in being a part of ACC family.

Customer Service

Objective:- To retain and serve existing customer. To bring in new customers.Offers:- Assurance to customers about the product. Guidance on use of the product. Demonstration of the product for right application. Education to customers & influencers. Complaint Handling:- Do not ignore/store complaint. Do not act aggressively with customer. Do not take complaints in Business personally. Be patient. Be a good listener. Carry out requisite action to customers satisfaction. Definition of Cement, OPC, PPC & PSC. Advantages of PPC/PSC over OPC cement.


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Fine & Coarse aggregates.Testing of Aggregates:-The aggregates must be:

o Clean & dense.o Dense, hard & durable.o Capable of developing good bond with the cement paste.o Weather-resisting.o Be unaffected by water.o Mortar, brickwork & plastering.Durability of Concrete:-o Concrete durability is defined as its resistance to weathering action, chemical attack,

abrasion & other degradation process.

Good Construction Practices:-o Proper mixing.o Using good quality cement, sand, aggregates & reinforcement.o Proper compaction.o Using cover blocks. Campaigns:- Customer meets. Mason meets. Contractor meets. Engineer meets. Guidance camps at locations in city, villages. Mason training programme. Inviting technical experts to give lectures to influencers.


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List of Distributors and Retailers at Ratu Road

Shop Name Contact Person Name Contact Number Address

Parvesh Cement

House

Mr.Dharmendra Kumar

Singh

9431326139 Pandra, Ratu Road

Arjun Cement Mr.Arjun Sahu 9798533651 Pandra, Ratu Road

S.K. Cement Mr.Santosh Kumar 9431326005 Pandra, Ratu Road

Agrawal Steel

Dealer

Mr.Nirmal Kumar

Agarwal

9939190780 Pandra, Ratu Road

MAA Shakti Steel Mr.Suresh Agarwal 9308329470 Pandra, Ratu Road

Arsh Enterprises Mr.Ashok Kumar 9431592199 Kathitand,Ratu

Rani Building

Material Suppliers

Mr.Dharmendra Kumar 9334606638 Kathitand,Ratu

Balaji Traders Mr.Manoj Kumar 9431326169 ITI Bus Stand

Maa Ambey Mr.Chandan Kumar 9334377350 Itki Road


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