Biscuit (Parle-G)Biscuit (Parle-G)Supply ChainSupply Chain

Team MembersTeam MembersBiswajit NagJivesh GaurKaran Rai BahadurRajat Kaushal Shivjeet DeshmukhSuyog ManwatkarVinit Pujara

Distributor IntroductionDistributor Introduction The distributor: Mr. Sachin Gore M/s Jui Enterprise Operational since last two years The team:7 members

Manufacturer

Distributor Retailer Custome

r

Material

Funds

Info

Flows in Supply ChainFlows in Supply Chain

Retailer

CMU

(Central Manufacturing Unit)

Distributor

Customer

Depot

• 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).

Parle Factory

RetailerInstitutions

Eg. Hospitals

Distributor(Retailer)

Distributor(Institutional)

Customer

Distribution Strategy

Parle Factory Locations

Distributor Selection

Filling Application FormVisit 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 & Registration

Food License From Corporation

-- Yearly RenewedShop Act

Both required for stocking of goods.

Fax on PDP date 28/29th to CMU

Acknowledges Fax, Generates Invoice,

Sends mail to delivery div.

Informs Transporter,

Material Loading

Material unloading, Physical counting

Info Flow between Manufacturer

& DistributorOn 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

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.

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 checked for damage and loaded in LPT

Material unloaded Distributor signs the invoice copy against the quantity received & mention the shortages, if any

Packing TypesPacking Types

Price (Rs.) No. of Biscuits/Packet

Weight/packet (Gm.)

1 4 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

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.

If they 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 NagarArea: 550 Sq. footAll 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 creditSoftware used: TallyRetailers 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

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-Interesting Facts about Parle-GG"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

Taste and 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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