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Supply Chain Nanagement Of HUL

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Page 2: Supply Chain Nanagement Of HUL

INTRODUCTION• Hindustan Unilever Limited (‘HUL’), formerly Hindustan Lever Limited

(it was renamed in late June 2007 as HUL).

• India's largest Fast Moving Consumer Goods company.

• HUL is also one of the country's largest exporters.

• The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life.

• “HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

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CONTD….•Gross sales is 21649.51 crores.

•The distribution network of HUL is one of the key strengths.

•The operations involve over 2,000 suppliers and associates.

•Recognized as a Golden Super Star Trading House by the Government of India.

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DISTRIBUTION SYSTEM OF HUL…•Focuses on short supply chain for distribution.

•Distributed through a network of 4,000 redistribution stockiest .

•6.3 million retail outlets.

•250 million rural consumers.

•There are 35 C&FAs in the country who feed these redistribution stockists regularly.

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DISTRIBUTION IN RURAL MARKET

Project Shakti•Enabled Hindustan Lever to access 80,000 of India's 638,000

villages

•Project Shakti has already been extended to about 12 states.

•The model consists of groups of (15‐20) villagers below the poverty line.

•Women from SHGs become direct‐to‐home distributors in rural markets.

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• Lifebuoy Swasthya Chetna has touched 12 crore people in more than 50676 villages across India since 2002.

• Pure it is available in more than 1500 towns nationally and already covers over 3 million households across India.

• Exceeded the target of reducing CO2 emissions from manufacturing operations by 25% on a base of 2004.

• Twenty Eight of our manufacturing sites are zero water discharge sites.

Few More Programs By HUL

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PROJECT STREAMLINE•To cater to the needs of the inaccessible

market with high business potential.

•Goods are distributed from C & F Agents to Rural Distributors.

•15‐20 rural sub‐stockists attached to him.

•Each of these sub‐stockists / star sellers is located in a rural market.

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HUL SKU RURAL DISRT.

SUB-STOCKIST

RETAILING CONSUMER

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CONTD…

• sub‐stockists then perform the role of driving distribution.

•using unconventional means of transport such as tractor and bullock carts.

•Star Seller sells everything from detergents to personal products.

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Initiatives Taken to Improve The Distribution Network

•Servicing Channel partners and customers with continuous daily replenishment.

•Leveraging scale and building expertise to service Modern Trade and Rural Markets.

•Delaying of sales force to improve response times and service levels .

•Launching of several promotional schemes for existing wholesalers and distributors