A Study and analysis Of Supply Chain of

Hindustan Unilever Ltd.Presented by:

Abhishesh Suman Bikash Rathi

Gautam ShankarKunwar Shankar Nag

Nandita SadhwaniRajesh Sridhar

HUL at a Glance• India’s 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 HUL’s 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)• Lakmé• 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

33%

60%

7%

Rural AreasUrban General TradeModern Retail

1. Rural Population2. Urban Population

a) Urban General Tradeb) Modern Retail like Supermarkets and self-service stores.

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 generalstores 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• Don’t 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.• Don’t 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+ Re-Distribution 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 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 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 sub stockist 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 about50,000 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 by-passing the wholesalers and Sub-stockists.

Q/A ??

Thank You