PROJECT REPORT

ON
FAST MOVING CONSUMER GOODS (FMCG)
FOR
DETERGENT-SURF EXCEL

SUBMITTED BY
Tarang Gupta
(BATCH 2018-2020)

SUBMITTED TO
Prof. MANGESH.D
OPERATION & SUPPLY CHAIN MANAGEMENT

DATE SINGNATURE
 SUPPLY CHAIN MANAGEMENT (SCM)
Supply chain management (SCM) is the broad range of activities required to plan,
control and execute a product's flow, from acquiring raw materials and production
through distribution to the final customer, in the most streamlined and cost-effective
way possible. SCM encompasses the integrated planning and execution of processes
required to optimize the flow of materials, information and financial capital in the
areas that broadly include demand planning, sourcing, production, inventory
management and storage, transportation -- or logistics -- and return for excess or
defective products. Both business strategy and specialized software are used in these
endeavors to create a competitive advantage.

Supply chain management is an expansive, complex undertaking that relies on each

partner -- from suppliers to manufacturers and beyond -- to run well. Because of this,
effective supply chain management also requires change management, collaboration
and risk management to create alignment and communication between all the
entities.

In addition, supply chain sustainability -- which covers environmental, social and

legal issues, in addition to sustainable procurement -- and the closely related concept
of corporate social responsibility -- which evaluates a company's effect on the
environment and social well-being -- are areas of major concern for today's
companies.

LOGISTICS VS. SUPPLY CHAIN MANAGEMENT

The terms supply chain management and logistics are often confused or used
synonymously. However, logistics is a component of supply chain management. It
focuses on moving a product or material in the most efficient way so it arrives at the
right place at the right time. It manages activities such as packaging, transportation,
distribution, warehousing and delivery.

In contrast, SCM involves a more expansive range of activities, such as strategic

sourcing of raw materials, procuring the best prices on goods and materials, and
coordinating supply chain visibility efforts across the supply chain network of
partners, to name just a few.
BENEFITS OF SUPPLY CHAIN MANAGEMENT
Responsible supply chain management can generate value for your company by:

 Improving collaboration with your suppliers. Dialogue and cooperation to

improve CSR performance will strengthen relations with suppliers and can
contribute to increasing productivity and reducing costs.

 Improving product quality. Responsible supply chain management can

help to safeguard product quality and promote the development of more
sustainable products.

 Reducing the risk of negative PR. Responsible supply chain management

can protect your company from negative PR as a consequence of problematic
CSR issues in the supply chain, and in the worst case scenario, from incurring
legal liability as an accessory to gross human rights violations.

 Attracting and retaining employees. A sound reputation is important to your

company's ability to attract and retain the most qualified employees. When
you outsource tasks to suppliers, it is very important to signal to employees
that high priority is given to CSR issues.

 Providing security for investors and creditors. Investors and creditors

include your risk profile and CSR activities in their assessments, and this also
includes your supply chain management.
 Creating new market opportunities. Responsible supply chain management
can be used proactively to brand your company and create new market
opportunities
Hindustan Unilever Limited (HUL) is a British-Dutch company headquartered in
Mumbai, Maharashtra. Its products include foods, beverages, cleaning agents,
personal care products, water purifiers and consumer goods.

HUL was established in 1933 as Lever Brothers. Following the merger among Lever
Brothers in 1956, it was renamed as Hindustan Lever Limited. The company was
renamed in June 2007 as "Hindustan Unilever Limited".

As of 2019 HUL portfolio had 35 product brands in 20 categories and employs

18,000 employees with sales of Rs. 34,619 crores in 2017-18.

In December 2018, HUL announced its acquisition of Glaxo Smithkline's India

business for $3.8 billion in an all equity merger deal with 1:4.39 ratio. However the
integration of 3800 employees of GSK remained uncertain as HUL stated there was
no clause for retention of employees in the deal. In January 2019, HUL said that it
expects to complete the merger with Glaxo Smith Kline Consumer Healthcare
(GSKCH India) this year. The company has been regularly controversial for its
advertisements targeting and demeaning Hindu festivals.

BRANDS AND PRODUCTS

HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others
with over 700 million Indian consumers using its products. Sixteen of HUL's brands
featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual
Survey (2014), carried out by Brand Equity, a supplement of The Economic Times.

Food

1. Annapurna salt and Atta(formerly known as Kissan Annapurna)

2. Bru coffee
3. Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea
4. Kissan squashes, ketchups, juices and jams
5. Lipton ice tea
6. Knorr soups & meal makers and soupy noodles
7. Kwality Wall's frozen dessert
8. Modern Bread, ready to eat chapattis and other bakery items(now sold to
Everstone Capital )
9. Magnum (ice cream)

Homecare Brands

1. Active Wheel detergent

2. Cif Cream Cleaner
 3. Comfort fabric softeners
4. Domex disinfectant/toilet cleaner
5. Rin detergents and bleach
6. Sunlight detergent and colour care
7. Surf Excel detergent and gentle wash
8. Vim dishwash
9. Magic – Water Saver

Personal Care Brands

1. Aviance Beauty Solutions

2. Axe deodorant and aftershaving lotion and soap
3. LEVER Ayush Therapy ayurvedic health care and personal care products
4. International breeze
5. Brylcreem hair cream and hair gel
6. Clear anti-dandruff hair products
7. Clinic Plus shampoo and oil
8. Close Up toothpaste
9. Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant
deodorants
10.Denim shaving products
11.Fair and Lovely, skin lightening cream
12.Hamam
13.Indulekha ayurvedic hair oil
14.Lakmé beauty products and salons
15.Lifebuoy soaps and handwash range
16.Liril 2000 soap
17.Lux soap, body wash and deodorant
18.Pears soap, body wash
19.Pepsodent toothpaste
20.Pond's talcs and creams
21.Rexona
22.Sunsilk shampoo
23.Sure anti-perspirant
24.Vaseline petroleum jelly, skin care lotions
25.TRESemmé[15]
26.TIGI
27.Vaseline

Water Purifier Brand

1. The Pureit Water Purifier

 Hindustan Unilever Ltd (HUL)
popular detergent brand Surf, which
had become a generic name in the
detergents market, has migrated into
Surf Excel. A hitherto premium
brand of detergent in HUl’s kitty,
Surf Excel has now been trifurcated
into three specialized brands, which
include Surf Excel Blue and Surf Excel Automatic. Industry analysts said Surf Excel
will now become the mother brand, with Surf Excel Blue targeted at the lower-end
consumer, and Surf Excel Automatic aimed at the high-end market and particularly
for usein washing machines. It is a case of repositioning of the brand. It will also
facilitate a value-added product for the high-end customer, rather than a generic
brand for the general market.

ABOUT SURF EXCEL

 Launched in1959& first in Indian detergent powder mkt.

 It was the first Fast Moving Consumer Goods (FMCG) for Detergent.
 Surf was the first brand of detergent that was advertised on TV.It is advertised
on more than,300channels across the globe .
 Introduced the concept of bucket wash to housewives who up till now used to
washing clothes with laundry soap bars.
 Brand to set up a one stop shop called Care line- for people seeking solutions
totheir varied laundry problems.
 Surf Excel, launched in 1954, is one of the oldest detergent powders in India.
Initially the brand was positioned on the clear proposition of ―washes
whitest.
 Surf Excel underwent various changes in its Brand Communication; from
Lalitaji' to 'dhoondte reh jaaoge' to 'jaise bhi daag ho, surf excel hai na', and
istoday communicated on the platform of 'Dhaag achcha hai'.
 2006 saw a unique marketing move from HLL.
 Rin Supreme bar is being migrated to Surf Excel.
 Right from Lalitaji‘, representative of the true -blue cost-conscious Indian
woman,till the inspiring storyboards of today, Surf Excel has done it all and
in style.
DISTRIBUTION NETWORK AND SUPPLY CHAIN

Phase 1

Wholesaler network HUL has a large distribution network comprising 5000

redistribution stockist and 40 C & F agents (Clearing and Forwarding Agents). The
first phase of the HUL distribution network had wholesalers placing bulk orders
directly with the company. Large retailers also placed direct orders, which
comprised almost 30 per cent of the total orders collected. The company salesman
grouped all these orders and placed an indent with the Head Office. Goods were sent
to these markets, with the company salesman as the consignee. The salesman then
collected and distributed the products to the respective wholesalers, against cash
payment, and the money was remitted to the company.

Phase 2

Registered Wholesaler The focus of the second phase, which spanned the decades
of the 40s, was to provide desired products and quality service to the company's
customers. In order to achieve this, one wholesaler in each market was appointed as
a "Registered Wholesaler," a stock point for the company's products in that market.
The company salesman still covered the market, canvassing for orders from the rest
of the trade. He would then distribute stocks from the Registered Wholesaler through
distribution units maintained by the company. The Registered Wholesaler system,
therefore, increased the distribution reach of the company to a larger number of
customers.
Phase 3

Redistribution Stockist The highlight of the third phase was the concept of
"Redistribution Stockist" (RS) who replaced the Registered Wholesaler (RW) . The
RS was required to provide the distribution units to the company salesman. The RS
financed his stocks and provided warehousing facilities to store them. The RS also
undertook demand stimulation activities on behalf of the company. The second
characteristic of this period they realised that the RS would be able to provide
customer service only if he was serviced well. This knowledge led to the
establishment of the "Company Depots" system. This system helped in
transhipment, bulk breaking, and as a stock point to minimise stock-outs at the RS
level.

Figure 1: Rural Distribution Model – Indirect Coverage

 PRESENT SCENARIO OF DISTRIBUTION
NETWORK

At present, HUL's products, manufactured across the country, are distributed

through a network of about 7,000 redistribution stockists covering about one million
retail outlets. The distribution network directly covers the entire urban population.
In addition to the ongoing commitment to the traditional grocery trade, HUL is
building a special relationship with the small but fast emerging modern trade. Their
scale enables them to provide superior customer service including daily servicing,
improving their range availability whilst reducing inventories. They are using the
opportunity of interfacing more directly with our consumers in this retail
environment through specially designed communication and promotions. This is
building traffic into the stores while yielding high growth for their business. The
recent measures to make the system more effective are described here.

1. C& FAs as buffer stock points -In the recent past, a significant change has
been the replacement of the Company Depot by a system of third party
Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer stock-
points to ensure that stock-outs did not take place. The C&FA system has also
resulted in cost savings in terms of direct transportation and reduced time lag
in delivery. The most important benefit has been improved customer service
to the RS. The role performed by the Redistribution Stockists has also
undergone changes over the years. Financing stocks, providing manpower,
providing service to retailers, implementing promotional activities, extending
 indirect coverage, reporting sales and stock data, screening for transit
damages are some of the functions performed by the RS today.

2. Formation of mother report - HUL has grown manifold over the years. In
the process, the number of factories and the number of SKUs too have
increased. In order to rationalise the logistics and planning task, an innovative
step has been the formation of the Mother Depot and Just in Time System
(MD-JIT). Certain C&FAs were selected across the country to act as mother
depots. Each of them has a minimum number of JIT depots attached for stock
requirements. All brands and packs required for the set of markets which the
MD and JITs service in a given area are sent to the mother depot by all
manufacturing units. The JITs draw their requirements from the MD on a
weekly or bi-weekly basis.

3. RS Net - An IT-powered system has been implemented to supply stocks to

redistribution stockists on a continuous replenishment basis. Launched in
2001, RS Net is part of Project Leap, HUL’s endto-end supply chain initiative.
Project Leap begins with the supplier, runs through the factories and depots
and reaches up to the RSs. The objective is to catalyze HUL’s growth by
ensuring that the right product is available at the right place in the right
quantities and at the right time. Leap also aims at reducing inventories and
improving efficiencies right through the extended supply chain. RS Net is
one of the largest B2B e-commerce initiatives ever undertaken in India. It
provides linkages with the RSs’ own transaction systems, enables monitoring
of stocks and secondary sales and optimises RS’s orders and inventories on a
 daily basis. Information on secondary sales from Gandhidham to Guwahati is
now available on RS Net every day. RS Net covers about 80% of the
company's turnover. Today, the sales system gets to know every day what
HLL stockists have sold to almost a million outlets across the country. RS Net
is part of Project Leap, HUL's end-to-end supply chain, which also includes a
back-end system connecting suppliers, all company sites and stretching right
upto stockists.

Retail Promotion Measures

HUL is also emphasising on making their brands prominently visible in the
crowded stores. Their outlet visibility programmes cover over 25,000 outlets in key
cities, deploying a large number of third party merchandisers and agencies to ensure
superior display of their products. Greater interaction is key to touching consumers
and they are using the point-of-purchase for a much higher level of direct contact.
For example, Lakme Beauty Advisors in key outlets promote sales and provide
specific information and product testing, facilitating an informed choice to women
seeking beauty solutions. Encouraged by this, they are undertaking a similar
initiative across many of their other brands where in-store facilitators offer
promotions and provide product information. For many developing categories, in-
store sampling, education and experience will play a major role in building their
brands.

Self-service Stores Self-service stores and supermarkets, provide consumers with a

great opportunity for brand interaction with consumers. Hindustan Lever has
proactively developed new capabilities in customer management and supply chain
for partnering this emerging channel. They now have a business system in place that
delivers excellence in customer service, while driving growth for HUL. For
example, recently Sunsilk mobile salons at stores provided consumers an
opportunity to have a great hair wash and try the new relaunched product.
Similarly, the Dove Litmus test in stores demonstrates the brand’s compelling
benefit of mildness compared to other soaps. They also undertake in-store
sampling for their range of Beverages and Food products like tea, coffee and soups.
The self-service format is a great enabler for such increased interaction with
consumers and they are fully leveraging this opportunity to drive trial and preference
for their brands.

Hindustan Lever Network Started in 2003, Hindustan Unilever Network (HUN) is

HUL's Direct Selling arm. Through this they have presence in over 1,500 towns
covering 80% of the urban population backed by 28 offices and over 130 service
centres across the country. It already has about 7 lakh consultants - all independent
entrepreneurs, trained and guided by HUN's expert managers and trainers. HUN’s
mission is to a create millionaire club in India. Hindustan Lever Network presents
a range of customised offerings, covering 11 categories across Home & Personal
Care and Foods.

The Aviance range, for example, has tailor-made solutions and regimes for different
types of hair. Depending on the consumer’s hair type and characteristics, the
Hindustan Lever Network consultant recommends the best suited combination of
shampoo and conditioner. Similarly, for new products in colour cosmetics, the
consultant has the opportunity to demonstrate and teach consumers the best use of
the new product.
 CONCLUSION
The consumer today has more buying power coupled with a wide choice. What used
to be the supplier's playground has turned into a buyer's paradise. This change brings
us opportunity because people are more aware of what is available internationally
and that builds new levels of demand in our country.

Reaching the Consumer

The challenge for the Company is to ensure that we respond to these demands in a
holistic manner and not just in the manner of making things available because
supplying products is not good enough anymore. We have to not just manufacture
but we need to have world class quality, then make sure that the product gets to the
consumer at the precise points where the consumer wants it and ensure that all this
is achieved at the lowest imaginable cost.

This is imperative given the competitive landscape that is available to us today.

Earlier, we may have had the key advantages of scale, money and talent. We retain
these but our competitors too have these tools today.

Two Big Changes

Hence, fantastic execution across the entire supply chain which stretches right from
the time you buy to the time you deliver to the customer has to be achieved in an
integrated manner. That is the new supply chain, and it is a big change we see today.

So from manufacturing as a technical function, as a process of making things so that

people would buy them, we have moved to now making things available to the
consumer at the right points with great quality at the right cost.
The game has changed from in-department efficiency to getting together as a
company and using the entirety to write a success story. Individual, isolated
efficiencies mean nothing; it is the stringing together of the pearls that makes the
difference. We, the supply chain, are no more a mere conveyor belt but an integral
part of the business. The Company is no more just compartmentalised operations,
like manufacturing, logistics, distribution, or buying. All of it is a part of the business
chain which delivers to the consumer. That is the second big change.

These two big changes have led to many smaller changes. For an example, the
capabilities that we are building in our people are different from what they were in
the past. The capabilities of customer service are not limited to productivity, or about
manufacturing capacity utilisation, but about customer service. We are building the
capabilities of looking at quality from a consumer lens and not from a manufacturing
lens.

All of these are new capabilities; they need to be built. The actions may be similar,
but the way we look at those actions, and how we interpret them, have to change.
And if our people are not going to develop new capabilities, then we will remain
stuck in the world of yesterday while the market will move on to the new tomorrow.

The Pace of Change

Looking forward, the pace of change is going to increase because the trade structure
in the country is changing. The demands and requirements from our customers and
consumers are changing at a dramatic pace. There are explosions within the market;
some will require us to handle customisation and quality levels which were not seen
until now.

We also need to guard against a challenge that is less thought about and hardly
researched: arrogance. It may not sit in any one specific function or department, but
arrogance lurks round the corner, particularly in the flush of success and in the
aftermath of steady double digit growth.

And lastly, “doing well by doing good” is a recent articulation of what has been an
age old philosophy at HUL. We deeply feel for the needs and aspirations of the
Indian consumer and the Indian citizen, and we would like to work to help meet
these. This has been the bedrock of our success.