SUBMITED BY….. DIPTAK SENGUPTA

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.

 Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Managing upstream and downstream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management

Supply chain management must address the following problems:Distribution Network ConfigurationDistribution StrategyTrade-Offs in Logistical ActivitiesInformationCash-FlowInventory Management

About ParleParle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. Makers of the world's largest selling biscuit, Parle-G.The Parle name symbolizes quality, nutrition and great taste.40% share of the total biscuit market and a 15%share of the total confectionary market in India, Parle has grown to become a multi-million dollar company

HISTORYIn 1929 a small company by the name of Parle products emerged in British dominated India. The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies.A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to manufacture biscuits as well. Since then, the Parle name has grown in all directions, won international fame and has been sweetening people's lives all over India and abroad.

Porter’s Value Chain: Parle GThe threat of a new entrant in the organized biscuit industry for Parle is low:The industry is capital intensive; with already so many existing players in the market, a new entrant would find it really difficultto establish it. Investments in promotions, advertisements, and product establishment are very high. The distribution system is complex and difficult to duplicate.The Power of suppliers to affect Parle G is fairly low:The basic commodities such as wheat, sugar are available. Though with the increasing gap between the WPI and CPI, prices of commodities is a worry. Sugar especially is a bottleneck.

Intra-industry rivalry for Parle is high: Even though Parle is a comfortable market

leader with 40% of the market share, there is immense competition among the existing players to capture the maximum market share. The USP of Parle G has been price‟.

A biscuit pack at Rs. 3, readily available in all pan-bidi shops made it such a success story. But today this business model is being duplicated by the other industry members.

The power of buyers is very high:Availability of many kinds of biscuits in the low and moderate pricing category. This forced Parle G to come out with a Rs. 30 family pack of biscuits. It also modified its distribution channel for the same purpose.The unorganized sector is always an option for the buyers.The power of substitutes to affect the prospects of Parle G is also very high: The growing packaged snack industry is become a real cause for concern for the biscuit industry. This is for this reason that most members of this industry have ventured into the confectionary and packaged snack business as well.

The traditional home cooked Indian snacks are always a threat

The following are the suggestions that Parle can implement to better its distribution channels:

 Increase the margins: In order to motivate the channel members it is

also very essential for the company to increase the margins for the hard selling

items.   Pushcarts:  These should be increased in number in order to

increase the market reach (especially the rural market). This can provide with a very effective channel.

 

Parle should also go in for ‘Parle’ Zones:  It is primarily for big city retail outlets. Here all

the Parle products can be stalked. This can be an effective mode of „umbrella marketing. This strategy can be implemented in regions where the footfalls are large in number. The advantages of this alternative channel would be as follows:

  Full range display. Easier to promote new products. Easy to push impulse purchase products. The Parle Brand building exercise will be

enhanced.