A Study and analysis Of Supply Chain of Hindustan Unilever Ltd.

Presented by: Abhishesh Suman Bikash Rathi Gautam Shankar Kunwar Shankar Nag Nandita Sadhwani Rajesh Sridhar

HUL at a Glance
Indias largest FMCG company with Revenue of US$ 4.46 Billion and profits of US$ ~514 Million. Presence in Detergent, Toilet soaps, Deodorant, Shampoos, Ice-creams, Oral care products, Tea, Coffee, Salt & Atta , and Disinfectants. 15000+ direct employees of which around 1300 are managers. Indirect employment number up to 50000+. Sixteen of HULs brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). Touching Lives of 2 out of 3 Indian.

Popular Brands owned by HUL

Wheel Lipton Surf Rin Rexona Liril Hamam Close-up Pepsodent Knorr Soups Domex Axe Vaseline Sunsilk Dove Ponds Fair & Lovely Pureit Water Purifier Brook Bond Teas Lifebouy Lux Pears Vim Sunsilk Kwality Walls Ice-creams Annapurna (Salt and Atta) Lakm Bru Coffee Ala bleach Kissan Jam Comfort fabric softners. Clinic All Clear Clear Clinic plus

Distribution System Focus

Easy Access to the products
Product Availability.

Brand Communication
High Level of Brand Experience.

HUL Distribution Channels

1. Rural Population 2. Urban Population a) Urban General Trade b) Modern Retail like Supermarkets and self-service stores.

7% 33%

Rural Areas Urban General Trade 60% Modern Retail

Sales Break-up through different channels

HUL Supply Chain

Distribution network is its strength HUL sources Raw materials from 2000+ suppliers. It also outsources entire production to its vendors. HUL owns 100+ manufacturing plants across the country. The general trade comprises Supermarkets, grocery stores, chemists, wholesale, kiosks and general stores and small Kirana shops. HUL provide Tailor-made services to each of its channel Partners.

 Write SOMETHING abt 3 phase of evolution of HUL distribution system

 Add image of First distribution Model HUL ->Wholesaler -> Retailer Dont forget to add small image of Unilever logo in HUL box just like in the diagram of existing chain

 Add image of 2nd distribution Model HUL ->Registered Wholesaler (RW) -> Wholesaler-> Retailer. Dont forget to add small image of Unilever logo in HUL box just like in the diagram of existing chain No need to add anything about redistribution stockists anywhere . We will explain it

HUL Distribution Network

HUL Distribution Network Contd

The Company Supplies directly to 35 Carry and Forwarding Agents(CF&A) . These CF&As regularly feeds the Re-Distribution stockists (RS) who are next in the hierarchy. Product distributed through a Network of 7000+ ReDistribution Stockists (RS) Covering more that 1 Millions retail outlets. Entire Urban Population is directly covered by this Distribution network.

Urban Distribution Network

The Carry and Forwarding Agent (C&FA) is supplied by The companys 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 contd..

From the Carry and Forward agent (C&FA) the goods are supplied to Redistribution stockists. In this steps trucks are used. The Redistribution stockist 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 redistribution stockists who is responsible business in particular town. The team focuses on building superior availability of products.

Rural distribution network contd..

In the 25% of the accessible markets with low business potential, HUL assigned a sub-stockist who was responsible to access all the villages at least once in a fortnight and send stocks to those markets. This substockist distributes the company's products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like cycles, scooters or the ageold bullock cart. In rural India, the network directly covers about 50,000 villages, reaching more than 250 million rural consumers, through 6000 sub-stockists. Lately in 2000 they launched Project Shakti Self-Help Groups of rural women

Project Shakti
extended to about 12 states, AP, UP, MP, TN,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.

Project Shakti
Add diagram of Project Shakti prepared by Kunwar here

Distribution to Supermarkets
Self-service stores and Supermarkets are fast rising in Urban areas. HUL has setup a dedicated Distribution network to cater the needs of Supermarkets. The Company directly supplies to large stores from Redistribution Stockists, sometimes bypassing the wholesalers and Sub-stockists.