Godrej Supply Chain Model

8/20/2019 Godrej Supply Chain Model

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. The Coman! en"o!s more than ## !ears of heritage inthe manufacture of soas and ersonal care roducts.

GCPL is ac$nowledged as an inno%ator across the soa

and ersonal care segments and has demonstratedconsistent suerior growth since incetion.

GCPL is a result of the demerger of the consumerroduct di%ision of Godre" soas limited &now renamed

Godre" 'ndustries Ltd.()merges as one of the fastest growing FMCGcomanies.Focus on emlo!ee emowerment * erformancelin$ed incenti%es has led to this henomenal growth+as high standards of cororate go%ernance * wn allits brands

The coman! emlo!s more than 1200 eole * has -stateoftheart manufacturing facilities at Malanur

&M.P.( ,Guwahati &/ssam( * addi &+.P.(

Godre" Consumer Products L'M'T)


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CMP/3 P4F'L)

Company Name GCPLCompany Headquarter Mumbai, India

Number of Employees More than 1200

Manufacturing ub!segment Consumer "ac#aged $oodsMain %usiness $roup &he business groups are based

on "roduct 'ines

(ey Manufacturing )acilities Malanpur *M+"+ ,$u-ahati

*.ssam / %addi *H+"+

"roducts oap, Hair colors, &oiletries /etergents

eb ite ---+godrecp+com


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GCPL is a ma"or la!er in the 'ndian FMCGmar$et with leadershi in ersonal care,

hair, household and fabric care segments. The coman! is among the largestmar$eters of toilet soas in the countr! andhas a leadershi osition in the hair colour

categor! in 'ndia.Mar$et leadershi in hair colour * li5uiddetergents.Presence in ersonal, hair, fabric *

household care mar$et categories.

Godre" consumer

a new focus


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GCPL P46CT P4TFL'1. 7oa8 Cinthol lime, Cinthol regular, Cinthol

international, fair glow, Godre" no.12. +air color8 Godre" hair d!e, li5uid, owder,

Colorsoft hair color, uur hair d!e, 9esh $ala,$ali mehndi, Godre" 4enew, Godre" Li5uid *

Powder +air !es, Godre" 9esh 9ala il-. Li5uid detergent8 ):ee;. Toiletries8 7$in cream , sha%ing cream, talcum

owder, Cinthol talc, Godre" no.1 talc, Cintholerfumes KEY BRANDS

Personal care8 Cinthol., fair glow, no.1,sha%ingcream, Cinthol freshness talc, fair glow fairnesscream+air care8 +air d!e, color soft, $ali mehndi, 9esh

$ala


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'7T4'6T'

M//G)M)T 737T)M

istribution has been recognised as one of the

core cometencies b! Godre" Consumer ProductsLimited &GCPL(.'ts istribution etwor$ co%ers the 'ndian mar$etthrough a %ast networ$ of 32 CompanyStockiest, 3030 Distributors and Super/Sub-

Stockiest and reaches more than 4.8 LakhsRetai !utets.uring the !ear, the coman! was able toincrease the number of directl! co%ered retail

outlets and also increase its reach to smallertowns through the 7uer


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76PPL3 C+/'M//G)M)T

ri%ht pace& at the ri%ht time and at the ri%htprice is one o' the most po(er'u en%ines o'business trans'ormation".)hese net(orks obtain suppies and

components& chan%e these materias into*nished products and then distribute them tothe customer.+,ecti$e mana%ement o' Cs& ra( materias&

manu'acturin% processes and distributionnet(orks that are inked to%ether to meet thecustomers reuirements is termed as SC#.)he Customer is the key 'actor in a SuppyChain and it is important to meet his needse1cienty.


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't consists of mo%ement of't consists of mo%ement of

Goods fromGoods from the Plantsthe Plants&Factories(to the Plant&Factories(to the Plant warehouse &P@+( to 4egionalwarehouse &P@+( to 4egional warehouse &4@+(. From 4@+,warehouse &4@+(. From 4@+,

thethe Goods mo%e to CF/ andGoods mo%e to CF/ and

then tothen to istributor and thenistributor and then

to 4etailer andto 4etailer and Anall! to theAnall! to the

CustomerCustomer..

7ul! Chain Process for

GCPL


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GCPL 7CM consumer

durables


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n'ormation o(

Ra( #aterias

RETAILERFACTORYDISTRIBUTION

CENTER

REGIONAL

DISTRIBUTION

CENTER

SUPPLIER

inished oods

7ul! Chain 7tructure


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S#R5 S#R5 88 ew initiati%e connecting distributors.ew initiati%e connecting distributors.7/+/3G87/+/3G8 Connect to the suliers, 1200Connect to the suliers, 1200

distributors,;00;B0 are /class distributors contributingdistributors,;00;B0 are /class distributors contributing

#B0D of the total business, #B000 distributors are #B0D of the total business, #B000 distributors are

* C class.* C class.

Concept based on6Concept based on6 4elenishment4elenishment

Monitoring 'n%entor! le%elsMonitoring 'n%entor! le%els

'nformation on current stoc$ le%els and Goodsintransit'nformation on current stoc$ le%els and Goodsintransit

owsows

eneAts8eneAts8 7ales orders generated on same da! slashing dela!s.7ales orders generated on same da! slashing dela!s.

Con%enient ata FlowCon%enient ata Flow

Portal framewor$ cutting edge concetPortal framewor$ cutting edge concet

ail! %isibilit! of 4etailing information.ail! %isibilit! of 4etailing information.

Lower carr!ing cost to distributors.Lower carr!ing cost to distributors.

7ul! Chain Management


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'4)CT T T4/)

#ost suitabe 'or #a7or Distributorsuppy (ho need u )ruck Loads. Reduces n$entory at /9 e$e. Reduces handin% and operationacost.

mpro$e uaity o' ser$ice and

oDirect to trade6 mmense SC#!pportunity.

Stock Pt Factory Dealer


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M6LT'P'TP'C9'GH)L'I)43

+iminatee:tra /9

reuirementReduce costaster

Dei$ery Re$enue%ro(th

;etter asset


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ata warehousing tools are mostl! used for anal!sis

and trends that allow the coman! to create shortand longterm strategies and business roblemsolutions./ articular roduct is manufactured in diJerent

factories of the coman! at diJerent locations.rdinar! reorts will gi%e the amount of sales thatthe roduct has made &roductwise contribution( and the amount of roAt that a articular customer

has generated for the coman! &customerwisecontribution(.@ith data warehousing alications, can calculatethe roAt contribution of each factor! for the sameroduct and comare the eKcienc! of diJerent

factories.

@arehouse beneAts


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L'M'T/T'7

The limit of the caabilities of awarehouse is bound b! the creati%it! ofthe enduser. The coman! can load datali$e sales Agures of goods from the

factor! to the distributors &rimar! sales(,from distributors to retailers &secondar!sales(, and from retailers to endusersinto a common database in the

warehouse. The data warehouse can nowallow !ou to deri%e sales and in%entor!trends.

7uose rimar! sales ha%e increasedo%er a eriod of time and secondar sales


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+:istin% distribution channes6 Can be describedb! how direct the! are to the customer. 'nother words how man! channels, it ta$e the goodsto reach customer.)rends and emer%in% channes6 ew channelscan oJer the oortunit! to de%elo a cometiti%ead%antage which shorten the channel length.Channe po(er structure6For eamle, in the case of a roduct ha%ing

little brand e5uit!, retailers ha%e negotiating owero%er manufacturers and can cature more margin.

There r no eclusi%e outlets of GCPL. 7o )clusi%eoutlets should b oened.

/%ailabilit! of roducts is less in the mar$et. 7o/roriate distribution channel should b adoted.

istribution channel


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Flow of in%entor! * demand


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emanding customers Focus on comletel!understanding consumer re5uirements andbeha%ior and introduction of inno%ati%enew roducts

Consistent focus on deli%ering Ialue forMone! roductsConsistentl! augmenting domestic mar$etingand sales reach and distribution

Globali:ationintroducing new roductranges, new %ariants and eloring newGeograhies7hrin$ing roduct life c!cles

Proliferating roduct oJerings

9e! dri%ers


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'n Nul! 2001 the management at Godre"decided to imlement an ecommercesolution to manage the sul! chain betterand an eC4M ac$age to foster better ties

with its distributors./fter going through a long list of %endors andconsultants, Godre" selected road Iision asthe ro%ider and 7at!am 'nfowa! as the

imlementer of the solutions. The! had set u in%entor! norms for all theroducts at the distributor le%el and the

s!stems interacted with s!stems at thedistributors end. This allowed to etract

)commerce initiati%e


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'n toda!=s economic scenario cost sa%ing iswhat comanies are focusing ma"orl!. /nFMCG Arm can get b! focusing on -imortant asects8=. aciities& 2. n'ormation coection&

3. So't(are.

4elations with distributors, suliers *retailers will gi%e an cometiti%e edge in along run.)Jecti%e software li$e 7/P will ease the

ow of information.

M/' /7P)CT7


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CCL67' The ste of GCPL to ma$e its distribution channel

online was the good decision, which has ro%ide agood suorti%e hand to the distributors regardingthe saes& biin% & kno(in% their cassretaiers& stock detai etc. the general remarks

for the software was e:ceent as er thedistributors. This s!stem which can be comlicated for somedistributors due to the illiterac! of the comuterthe! can ha%e a comuter oerator. @here there is a

successful integration strateg!, there is enterrise%alue. /t its %er! core, a welleecuted sul! chainro"ect oJers a single window into business anddistribution, consolidates s!stems and rocesses

and ro%ides 5uic$ and accurate information on


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Godrej Supply Chain Model