20276078 parle scm project

8/3/2019 20276078 Parle Scm Project

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Biscuit (Parle-G)

Supply Chain


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Team Members

Biswajit Nag

Jivesh Gaur

Karan Rai Bahadur

Rajat Kaushal

Shivjeet Deshmukh

Suyog Manwatkar

Vinit Pujara


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Distributor Introduction

The distributor: Mr. Sachin Gore

M/s Jui Enterprise

Operational since last two years

The team:7 members


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Manufacturer DistributorRetailer Customer

Material

Funds

Info

Flows in Supply Chain


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Retailer

CMU

(Central Manufacturing Unit)

Distributor

Customer

Depot


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CMU (Central Manufacturing Unit)

Located at Vadgaon

PDP (Pre Dispatch Plan) Number of vehicles sought from the CMU

Packing size of material demanded

Tentative demand for coming month

Normally 390~400 boxes are delivered in one fulltruck load (LPT).


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Parle Factory

RetailerInstitutions

Eg. Hospitals

Distributor

(Retailer)Distributor

(Institutional)

Customer

Distribution Strategy


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Parle Factory Locations


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Distributor Selection

Filling Application Form

Visit of ASM.

Certification. Bank guarantee of 2.5 Lacs/truck load.

Payment Term Finalization - RTGS within 4

days of receipt of material. Distributor code generation.


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Contract between Manufacturer & Distributor:

renewed yearly.

Expected Target growth rate of distributor:

50-55%.

Failure to meet Minimum sales commitment maylead to creation of additional distributor or

cancellation of existing distributor.

Complain solving mechanism

Regular Audits


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Distributor License & Registration

Food License From Corporation

-- Yearly Renewed

Shop ActBoth required for stocking of goods.


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Distributor

CMUDeliveryUnit

Transporter

Fax onPDP date28/29th to

CMU

Acknowledges Fax,

Generates Invoice,Sends mail to delivery div.

InformsTransporter,

Material Loading

Materialunloading,

Physical counting


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Info Flow between Manufacturer& Distributor

On the morning of delivery day, a fax is sent to theCMU office for confirmation of the demand.

CMU confirms the fax receipt & accordingly raises theinvoice. With 12.5% VAT & Inco terms as FOR . Atthe same time, the dispatch department iscommunicated for vehicle arrangement & loading ofthe material.

Software used @ Parle CMU: SAP


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On the morning of delivery day, a fax is sent to the

CMU office for confirmation of the demand.

CMU confirms the fax receipt & accordingly raisesthe invoice.

Inco term: FOR .

At the same time, the dispatch department is

communicated for vehicle arrangement & loading ofthe material.


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Funds Flow between Manufacturer &

Distributor

Cost Components at the Distributor

Basic Rate

VAT @ 12.5% (Claimed while filing returns)

Secondary Freight (Paid by Manufacturer)-- 0.1% of the invoice amount

Octroi @ 4% (Deducted in the bill itself)

-- Aundh Octroi Booth

-- Commission agent of the distributor

(charges 1% of the Octroi amount)

Rs. 20 as surcharge to local authorities for making &processing the bill


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Payment is made to the manufacturer by

RTGS within 4 days of receipt of material. Profit Margin of Distributor-Approx 4%


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Material Flow from Manufacturer toDistributor

CMU Distributor

Transportation Time

2 Hours ApproxMaterial

checked fordamage

and loaded

in LPT

Material

unloadedDistributor

signs the invoice

copy against the

quantity received

& mention theshortages, if any


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Packing Types

Price (Rs.) No. of Biscuits/Packet Weight/packet (Gm.)

1 4 16

2 8 44

3 12 66

4 16 83.5

5 20 99

10 40 209

15 60 313.5

20 80 418

40 160 (40*4) 825


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Packaging

Entire Packaging done at the CMU.

7 carton stacking limit


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Broken & Damaged Goods

Breakages & damages: Not common as checking is doneat the delivery end while loading.

If they do occur, debit note is raised by the distributor tothe CMU along with a mail.

Shelf life of biscuits: 6 months

The expired unsold material, if any, is burned/scrappedat distributors end & only empty labels are send back tothe CMU to avoid additional unnecessary transportation

charges.

The reimbursement against the rejected material dependsupon the authority level i.e. SM, DSM, & NSM.


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At the Distributor

Distributors Warehouse: Karve Nagar

Area: 550 Sq. foot

All kinds of protection against rain,

moisture, rodents and insects taken by the

distributor

Hygiene maintained well


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Distributors Storehouse


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Products Dealt with by Distributor


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Funds Flow between Distributor &

Retailer

Payment from retailer:15-21 days of credit

Software used: Tally Retailers profit margin:

MRPLanding cost

M i l & I f Fl f Di ib


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Material & Info Flow from Distributor

to Retailer

FIFO system (Fist in first out) is followedby Distributors to avoid expiry losses

Delivery on the next day itself

Sales cycle8 days

Geographical limit: Pune City


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Route plan prepared as per area to be

covered.(12 identified routes)

Transportation used: 3 wheelers (3)


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Weekly Transport Plan


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Interesting Facts about Parle-G

"Parle-G" boasts of being the largest selling

biscuit in the world

It enjoys 70% market share in India in the

glucose biscuit category. The brand is estimated to be worth over Rs

2,000 crore (Rs 20 billion).


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As per Distributor, Parle- G is operated atno profit no loss as a part of social

service

Taste and product well established among

people and hence used to promote other

products


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Ingredients of Parle-G

Wheat Flour, Sugar

Partially Hydrogenated Edible Vegetable

Oils

Invert Syrup, Leavening Agents ,

Salt, Milk Solids, Emulsifiers and Dough

Conditioners

Contains Added Flavours (Artificial)

(d - Glucose, Levulose)


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THANK YOU!!!!!!!

QUESTIONS??????

20276078 parle scm project

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