Documente Academic
Documente Profesional
Documente Cultură
in FMCG
HUL
ITC
Godrej
Prepared by
Jeetesh Kumar
ITM Chennai
FMCG Sector
FMCG are products that have a quick shelf turnover, at relatively
low cost and don't require a lot of thought, time and financial
investment to purchase
Market Analysis
– Size ( Past , Present and Future)
– Growth ( Expected Trends )
– Profitability
– Risks / Threats
– Distribution Channels
Market Analysis
SIZE Growth
Distribution
Channels
Risk Profit
FMCG Sector Size (cont.)
Over the last one decade the market is growing at the rate
of 18.7 %.
33
Godrej Consumer Product Supply
Chain Management
Supply Chain for GCPL
It consists of movement of Goods from
the Plants (Factories)to the Plant
warehouse (PWH) to Regional
warehouse (RWH). From RWH, the
Goods move to CFA and then to
Distributor and then to Retailer and
finally to the Customer.
Supply Chain Management
SAMPARK: New initiative connecting
distributors.
SAHAYOG: connect to the suppliers.
1200 distributors.
400-450 are A-class distributors
contributing 75-80% of the total
business.
750-800 distributors are B & C class.
SAP in Godrej SCM
SAP is robust as it would be based on
centralized system.
The implementation of SAP was
started around December, 2005
SAMPARK: Software cost=Rs 4.5 mn
(0.1 mn USD); Hardware cost= Rs 10 mn.
(0.02 mn USD)
SAHAYOG: Rs 2 mn (0.04 mn USD)
Sampark & Sahayog
Concept based on
– Replenishment
– Monitoring Inventory levels
– Information on current stock levels and Goods-in-
transit flows
Benefits
– Sales orders generated on same day slashing delays.
– Convenient Data Flow
– Portal framework - cutting edge concept
– Daily visibility of Retailing information.
– Lower carrying cost to distributors.
– Reduced Product Stagnation.
– Better Decision Making about forecasting.
Key learnings from this study
In todays economic scenario cost saving is what companies
are focusing majorly. Which an FMCG firm can get by
focusing on 3 important aspects Facilities, Information
collection, Software.
By this Study of 3 Major FMCG player’s SCM, we can
conclude following points:
Relations with distributors, suppliers & retailers will give an
competitive edge in a long run.
Effective software like SAP will ease the flow of information.
Godrej getting a edge by connecting close with the Suppliers,
Distributors & Retailers (Sampoorna in process).
HUL Dominating the market with huge margin due to effective SCM .
ITC making diverse products and growing rapidly in the markets.
All 3 majors are equally focusing on the UNTAPPED RURAL
markets, where the Business of tomorrow lies.
ITC – E-Choupal
HUL – E-Shakti
Godrej – Major distributors are of B & C Class