Biscuit (Parle-G)

Supply Chain
Team Members
Biswajit Nag
Jivesh Gaur
Karan Rai Bahadur
Rajat Kaushal
Shivjeet Deshmukh
Suyog Manwatkar
Vinit Pujara
Distributor Introduction
 The distributor: Mr. Sachin Gore
 M/s Jui Enterprise
 Operational since last two years
 The team:7 members
 Flows in Supply Chain

Material

Manufact Distribut
urer or Retailer Custome
Funds
r

Info
 CMU
(Central Manufacturing Unit)

Depot
Distributor

Retailer

Custome
r
• 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

full truck load (LPT).
 Distribution Strategy
Parle Factory

Distributor Distributor
(Institutional) (Retailer)

Institutions
Eg. Hospitals Retailer

Customer
Parle Factory Locations
 Distributor Selection
 Filling Application Form
 Visitof ASM.
 Certification.
 Bank guarantee of 2.5 Lacs/truck load.
 Payment Term Finalization - RTGS within 4
days of receipt of material.
 Distributor code generation.
 Contract between Manufacturer & Distributor:
renewed yearly.
 Expected Target growth rate of distributor:
50-55%.
 Failure to meet Minimum sales commitment may
lead to creation of additional distributor or
cancellation of existing distributor.
 Complain solving mechanism
 Regular Audits
 Distributor License & Registration

Food License From Corporation

-- Yearly Renewed
Shop Act
Both required for stocking of goods.
 Material
unloading,
Physical
counting

Informs Fax on
Transporter, PDP date
Material Loading 28/29th
to CMU

Acknowledges Fax,
Generates Invoice,
Sends mail to delivery
 Info Flow between
Manufacturer
& Distributor
 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 raises the

invoice. With 12.5% VAT & Inco terms as FOR . At
the same time, the dispatch department is
communicated for vehicle arrangement & loading of
the material.

 Software used @ Parle CMU: SAP

Onthe morning of delivery day, a fax is sent to the
CMU office for confirmation of the demand.

CMU confirms the fax receipt & accordingly raises

the invoice.

Inco term: FOR .

At the same time, the dispatch department is

communicated for vehicle arrangement & loading of
the material.
 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
Payment is made to the manufacturer by
RTGS within 4 days of receipt of material.
Profit Margin of Distributor-Approx 4%
 Material Flow from
Manufacturer to Distributor
CMU Distributor
Transportation Time
2 Hours Approx
Material •Material
checked for unloaded
damage •Distributor
and loaded signs the invoice
in LPT copy against the
quantity received
& mention the
shortages, if any
 Packing Types
Price (Rs.) No. of Weight/packet
1 Biscuits/Packet
4 (Gm.)
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
 Packaging
Entire Packaging done at the CMU.
7 carton stacking limit
 Broken & Damaged Goods
 Breakages & damages: Not common as checking is done
at the delivery end while loading.

 Ifthey do occur, debit note is raised by the distributor to

the CMU along with a mail.

 Shelf life of biscuits: 6 months

The expired unsold material, if any, is burned/scrapped
at distributor’s end & only empty labels are send back to
the CMU to avoid additional unnecessary transportation
charges.

 The reimbursement against the rejected material depends

upon the authority level i.e. SM, DSM, & NSM.
 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
Distributors Storehouse
Products Dealt with by Distributor
 Funds Flow between Distributor &
Retailer

 Payment from retailer:15-21 days of credit

 Software used: Tally
 Retailers profit margin:
MRP – Landing cost
 Material & Info Flow from
Distributor to Retailer
 FIFOsystem (Fist in first out) is followed
by Distributors to avoid expiry losses

 Delivery on the next day itself

 Sales cycle – 8 days

 Geographical limit: Pune City

Route plan prepared as per area to be
covered.(12 identified routes)
Transportation used: 3 wheelers (3)
Weekly Transport Plan
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).
 As per Distributor, Parle- G is operated at
no “profit no loss” as a part of social
service

 Tasteand product well established among

people and hence used to promote other
products
 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)
THANK YOU!!!!!!!

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