Biscuit (Parle-G) Supply Chain

Team MembersBiswajit

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

Material

Manufact urer

Distribut or

Funds

Retailer

Custome 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 StrategyParle Factory

Distributor (Institutional)

Distributor (Retailer)

Institutions Eg. Hospitals

Retailer

Customer

Parle Factory Locations

Distributor Selection Filling Application Visit

Form

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.

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 & 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

On

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

CMU

Software

On

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 .

CMU

Inco At

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

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 DistributorCMU Material checked for damage and loaded in LPTTransportation Time 2 Hours Approx

Distributor

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

PackagingEntire

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.

If

Shelf

The

At the DistributorDistributors Warehouse: Area:

Karve Nagar

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 FIFO

system (Fist in first out) is followed by Distributors to avoid expiry losses on the next day itself

Delivery Sales

cycle 8 days limit: Pune City

Geographical

Route

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).

As

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

Taste

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)

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