Supply Chain Of HUL

NISHTHA POOJAROHANSHARMEENUDIT

What is FMCG?

Frequently purchased goodsReplaced within a yearQuick turnoverRelatively low costKey Segments : Household care ,

Personal care, Food & Beverage.Major Players : HUL , ITC , P&G,

Nestle , Dabur

HUL India’s Largest FMCG Was formed in 1933 as Lever Brothers

India ltd.Headquartered in MumbaiOver 15,000 employees Over 700 million consumers Market leader in Indian products such as

tea, soaps, detergents etc.Has over 100 factories across India for

manufacturing its diverse product range.

Supply Chain ManagementSupply chain management is the

management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

HUL Supply Chain

HUL sources Raw materials from 2000+ suppliers.

HUL owns 100+ manufacturing plants across the country.

The general trade comprises Supermarkets, grocery stores, chemists, wholesale and small Kirana shops.

HUL provide Tailor-made services to each of its channel Partners.

HUL Distribution NetworkThe Company Supplies directly to 35 Carry

and Forwarding Agents(CF&A) .These CF&As regularly  feeds the Re-Distribution stockists who are next in the hierarchy.

Product distributed through a Network of 7000+ Re- Distribution Stockists (RS) Covering more that 1Millions retail outlets.

Entire Urban Population is directly covered by this Distribution network.

Urban Distribution Network 

The Carry and Forwarding Agent (C&FA) issupplied by The company’s production

facility.

Either Rail or Road transport is used depending upon the time factor for delivery and transportation cost.

Generally the factory location is such that it covers a large geographical area

Urban Distribution Network

From the Carry and Forward agent (C&FA) the goods are supplied to Redistribution stockiest.

In this steps trucks are used.The Re-distribution stockiest supplies the

wholesaler.The Wholesaler supplies to the retailer, here

the local popular and cheap mode of transport is generally used.

The retailer makes the product available to the customer 

Rural distribution network 

HUL approached rural market by two criteria : Accessibility and Viability.

The company has brought all markets with populations of below 50,000 under one rural sales organization.

The team comprises an exclusive sales force and exclusive re-distribution stockiest who is responsible business in particular town.

The team focuses on building superior availability of  products.

Rural distribution network

In the 25% of the accessible markets with low business potential , HUL assigned a sub-stockiest  who was responsible to access all the villages at least once in a fortnight and send stocks to those markets.

This sub‐stockiest distributes the company's products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like cycles, scooters or the age‐old bullock cart.

In rural India, the network directly covers about 50,000 villages, reaching more than 250 million rural consumers, through 6000 sub-stockiests.

Lately in 2000 they launched  Project Shakti  Self-Help Groups of rural women.

Project Shakti 

extended to about 12 states AP, UP, MP, WB, Rajasthan, Maharashtra, Punjab.

With the help of Women Self-help group (SHG). In cluster of small BPL villages with population of 1000-

2000. Women are chosen as Shakti entrepreneur They receive

training and goods from HUL and rural distributor respectively.

They sell products directly to consumers and retailers in villages.

Each Shakti entrepreneur  serves 6-10 villages. They receive goods on “cash and carry basis”. This is a major step from HUL for women empowerment 

Pioneering New Channels1. Project Shakti2. Hindustan Unilever Network

(HUN): it is the company’s arm in the Direct selling channel. It presents a range of customised offerings in Home & Personal Care and Foods.

Pioneering New Channels3.Out-of-Home: this deals in providing

vending machines for hot beverages like tea and coffee. HUL’s alliance with Pepsi Co. has significantly strengthened the channel.

4. Health& Beauty services: Lakme Salons provide specialized beauty services and solutions, under the recognized beauty services and solutions, under the recognized authority of the Lakme brand. The Ayush Therapy Centre’s provide easy access to authentic ayurvedic treatments and products.

ConclusionHindustan Unilever, which once

pioneered distribution in India, is today reinventing distribution- creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience.