The presentation describes the supply chain of Parle-g biscuits from the manufacturer to the retailer and ultimately to the customer
Biscuit (Parle-G) Supply Chain
Nag Jivesh Gaur Karan Rai Bahadur Rajat Kaushal Shivjeet Deshmukh Suyog Manwatkar Vinit Pujara
Distributor IntroductionThe distributor: Mr. Sachin Gore M/s Jui Enterprise Operational since last two years The team:7 members
Flows in Supply Chain
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 StrategyParle Factory
Institutions Eg. Hospitals
Parle Factory Locations
Distributor Selection Filling Application 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.
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 & RegistrationFood
License From Corporation -- Yearly Renewed Shop Act Both required for stocking of goods.
Material unloading, Physical counting
Informs Transporter, Material Loading
Fax on PDP date 28/29th to CMU
Acknowledges Fax, Generates Invoice, Sends mail to delivery
the morning of delivery day, a fax is sent to the CMU office for confirmation of the demand. 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. used @ Parle CMU: SAP
Info Flow between Manufacturer & Distributor
the morning of delivery day, a fax is sent to the CMU office for confirmation of the demand. confirms the fax receipt & accordingly raises the invoice. term: FOR .
the same time, the dispatch department is communicated for vehicle arrangement & loading of the material.
Funds Flow between Manufacturer & DistributorCost 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
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 DistributorCMU Material checked for damage and loaded in LPTTransportation Time 2 Hours Approx
Material unloaded Distributor signs the invoice copy against the quantity received & mention the shortages, if any
Packing TypesPrice (Rs.) 1 2 3 4 5 10 15 20 40 No. of Biscuits/Packet 4 8 12 16 20 40 60 80 160 (40*4) Weight/packet (Gm.) 16 44 66 83.5 99 209 313.5 418 825
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. they do occur, debit note is raised by the distributor to the CMU along with a mail. life of biscuits: 6 months The expired unsold material, if any, is burned/scrapped at distributors end & only empty labels are send back to the CMU to avoid additional unnecessary transportation charges. reimbursement against the rejected material depends upon the authority level i.e. SM, DSM, & NSM.
At the DistributorDistributors Warehouse: Area:
550 Sq. foot All kinds of protection against rain, moisture, rodents and insects taken by the distributor Hygiene maintained well
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 FIFO
system (Fist in first out) is followed by Distributors to avoid expiry losses on the next day itself
cycle 8 days limit: Pune City
plan prepared as per area to be covered.(12 identified routes) Transportation used: 3 wheelers (3)
Weekly Transport Plan
Interesting Facts about ParleG"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).
per Distributor, Parle- G is operated at no profit no loss as a part of social service and product well established among people and hence used to promote other products
Ingredients of Parle-GWheat 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)