Amity Business School

Distribution Management & Logistics

Hindustan Unilever Limited

By
Pramodh Bhupathi
A0101909389
A-43

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Hindustan Unilever Limited

• Largest FMCG Company touching 2 out of 3 Indians

• 20 distinct categories
– Home  &  Personal  Care  Products  
– Foods  &  Beverages
• Sales  of  nearly  Rs.13718  crores
• HUL  is  also  one  of  the  country's  largest  exporters
• Recognized  as  a  Golden  Super  Star  Trading  House
 by  the  Government  of  India

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Products Under HUL Brand

• Lifebuoy • Clinic Plus
• Lux • Pepsodent
• Surf  Excel • Close up
• Rin • Lakme
• Wheel • Brooke  Bond
• Fair  &  Lovely • Kissan
• Pond‘s • Knorr-Annapurna
• Sunsilk • Kwality  Wall's
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Distribution Management

• 2,000  suppliers  and  associates

• HUL's  distribution  network  comprises  about  

– 4,000  redistribution  stockists who are served by 35
CFA’s
• Covering  6.3  million  retail  outlets  
• Reaching  the  entire  urban  population
• About  250  million  rural  consumers

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Distribution Network
HUL
HUL

Carrying
Carrying&&Forward
ForwardAgents
Agents

Redistribution
RedistributionStockiest
Stockiest

Whole
WholeSalers
Salers

Rural
RuralRetailers
Retailers Urban
UrbanRetailer
Retailer

Consumer
Consumer
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Distribution At Villages
• All markets with populations below 50,000 come under
one rural organization.

• Exclusive sales force and exclusive redistribution

stockists.

• The network covers about 50,000 villages , reaching

250 million consumes , through 6000 substockists.
 Substockists Amity Business School

• In markets with low business potential, HUL assigned a

sub stokists

• Sub stockists are responsible to access all the villages at

least once in a fort night

• Substockists distribute companie’s product to outlets in

adjacent smaller villages.
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Distribution  at  the  Urban  centers

• Manufacturing site is located such that it covers a bigger
geographical segment.

• Distribution of goods from manufacturing site to C&F

Agents takes place through roads

• Form CFA’s the goods are transported to RS’s

• From RS’s to Wholes salers

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Mother Depots & Just In Time Systems

• Certain CFA’s were selected as mother depots

• Each of them has minimum number of JIT depots

• These work on bi-weekly basis

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Re-Distribution Stockists
• Sales Margin: 4.76%
• Modes of Transport: Rikshaw, Tempo
• Incentive Schemes: Holiday Packages before year 2000
Monitory Packages after year 2000
• Software System: UNIFY8.3(Developed by IBM & CMC)
• Areas of Operation: Marked for each RS’s
• Selling Operation:
– Whole Salers (gets 1.5% max discount from RS)
– Retailer (gets 1.0% max discount from RS)
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Whole Salers
• Cash Discounts
• Schemes Provided by HUL (Vijeta)

Retailer
• Sales margin (Depends on type of product)
• Soap, Detergent : 8% on MRP
• Cosmetics : 10% on MRP
• Food Items : 8% on MRP
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