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Biscuit (Parle-G) Supply Chain

Team Members
Biswajit Nag Jivesh Gaur Karan Rai Bahadur Rajat Kaushal Shivjeet Deshmukh Suyog Manwatkar Vinit Pujara

Distributor Introduction

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

Flows in Supply Chain

Material

Manufacturer

Distributor
Funds

Retailer

Customer

Info

CMU (Central Manufacturing Unit) Depot


Distributor

Retailer Customer

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 Strategy Parle Factory


Distributor (Institutional) Distributor (Retailer)

Institutions Eg. Hospitals

Retailer

Customer

Parle Factory Locations

Distributor Selection

Filling Application Form Visit 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 Renewed Shop Act Both required for stocking of goods.

Material unloading, Physical counting

Transporter
Informs Transporter, Material Loading

Distributor
Fax on PDP date 28/29th to CMU

Delivery Unit

CMU

Acknowledges Fax, Generates Invoice, Sends mail to delivery div.

Info Flow between Manufacturer & Distributor

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. 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
Transportation Time 2 Hours Approx

Distributor

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 Types
Price (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

Packaging
Entire 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 distributors 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 Nagar Area: 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 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-G


"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)

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