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LOGISTICS FLOW

CORPORATE LOGISTICS

TEAM HEAD

DISTRIBUTION AND PLANNING (FGs)

OPERATIONS AND TRAFFIC TO DEAL WITH TRUCKERS & TRANSPORTERS

ZONAL HEADS FOR 2 ZONES (South & west, North & east)

PRODUCT WISE

BRANCH LOGISTICS INCHARGE

CFAs & WAREHOUSES

CHANNEL STRUCTURE

Multi-tier structure. LG Shoppes, cyber shoppers, SSDs, X-Canvas Studios, direct dealers. A network of distributors and sub dealers . Different distribution strategies for its different product groups GSM mobile phones do not make use of CFAs CTVs, microwaves and other like items require a CFA
The annual forecasts are further disaggregated into forecasts that are carried out twice a month(15 days basis), on the basis of which inventories are maintained and further production levels are maintained .

Most raw materials are bought from suppliers within India .


At the retail level, LG uses a combination of exclusive LG showrooms as well as Multi-brand outlets (MBOs) . Also Indulges in e-retailing as an alternative channel through its website www.lge.com . LG also has a separate channel for services and spares.

LG DISTRIBUTION NETWORK

SUPPLIERS

SUPPLIERS

SUPPLIERS

FACTORY (OEM)

FACTORY (OEM)

WAREHOUSE

WAREHOUSE

WAREHOUSE

CFA

CFA

CFA

CFA

CFA

CFA

DISTRIBUTOR

DISTRIBUTOR

DISTRIBUTOR

LG SHOPPE

DEALER

DEALER

DEALER

www.lge.com

INSTITUTIONS

CONSUMERS

CONSUMERS

CONSUMERS

CONSUMERS

CFAs They are spread across 20 states in India. The company dispatches the goods to C/F on consignment basis. At the same time, these C/F agents all work on contract basis. They get paid as per the amount they stock.

Distributors

The company appoints distributor for selective cities where the markets are small but require more focus and attention. Distributors are required to conduct sales and marketing on behalf of the company in these markets serving to all the required company stores. The company sends goods to the distributor on out right sale basis. It is the duty of the distributor to send his people into the field to book the orders and also execute them through their own delivery vehicles. The distributor has to maintain his own sales, delivery and accounts people for smooth working of his unit and is served by the nearest C/F for all his requirements. The distributor is given a margin of 10-20%.
Delivery Schedule takes 1 day for CFAs to service reorder within their zones distributor too caters to the demand in his area within 48 hours from the time of receiving the order If goods have to be procured from the warehouse then it takes 8 days (avg) for the goods to arrive at the C/F or distributor and delivered to the stores. no inventory management system in place with the MBOs LG Shoppe and franchisee showrooms do have a system in place to consolidate their inventory and sales with the company main office.

Ordering
The retailers order their requirements directly to the concerned distributors. The distributors source the orders from the company warehouses, which are connected directly with each of the 43 branches. The mother warehouse in Greater Noida caters to the needs of all the regional warehouses. It is the responsibility of the C/F agents to supply to the distributors as per their requirements. If any reorder do come in during the month then the regional warehouse that entertains them properly services them.

Planning & Forecasting


The company goes for annual forecasts on the basis of the previous years sales and also current trends. These sales forecasts are then disaggregated into monthly sales plans. The logistics and the production people meet every 15 days, and on the basis of sales as well as past inventory, they freeze production for the next 15 days. In case the sales in the previous period have not been up to the mark, and the inventory levels are high, the production is halted and stock of the situation is taken.

Ordering
The retailers order their requirements directly to the concerned distributors. The distributors source the orders from the company warehouses, which are connected directly with each of the 43 branches. The mother warehouse in Greater Noida caters to the needs of all the regional warehouses. It is the responsibility of the C/F agents to supply to the distributors as per their requirements. If any reorder do come in during the month then the regional warehouse that entertains them properly services them.

Planning & Forecasting


The company goes for annual forecasts on the basis of the previous years sales and also current trends. These sales forecasts are then disaggregated into monthly sales plans. The logistics and the production people meet every 15 days, and on the basis of sales as well as past inventory, they freeze production for the next 15 days. In case the sales in the previous period have not been up to the mark, and the inventory levels are high, the production is halted and stock of the situation is taken.