consumer goods & retail industry case study
Post on 25-Jan-2017
4.162 Views
Preview:
TRANSCRIPT
Consumer Goods & RetailUnresolved Conflicts
Copyright © 2015 Vector Consulting Group. All rights reserved.
A typical company in the Indian consumers good sector deals with following conflicts
while the same is stocked out in another location
High inventory of some products in some locations
despite having distributers with marked out territory
Very high level of cross territory dumping
Copyright © 2015 Vector Consulting Group. All rights reserved.
despite having the nearest warehouse only few days (or hours away)
Some items have inventory worth few months in the
selling locations
Copyright © 2015 Vector Consulting Group. All rights reserved.
Distributers always demand for excess margins but mostly
pass them out to retailers.
Wholesalers damage the brand by resorting to bulk buying and selling but they presumably also solve the
reach problem.
?
Copyright © 2015 Vector Consulting Group. All rights reserved.
Some organizations in Indian consumer sector have been able to solve the age old inventory dilemma : how to have the right inventory at the right place and the right time.
Case Studies1. Godrej Interio
2. Godrej Megasari
3. Bajaj Electricals
Copyright © 2015 Vector Consulting Group. All rights reserved.
Godrej InterioLeading player in customized home kitchen solutions.
Offers Innovative interior solutions for living room, bedroom, kids room, offices, etc and adds a touch of sophistication and style to homes & offices.
Copyright © 2015 Vector Consulting Group. All rights reserved.
ResultsGodrej Interio
50% to
The ex-factory
On- time -in- Full performance has gone
up from around
98%
Order booking has
been growing at around
25% y-o-y
Copyright © 2015 Vector Consulting Group. All rights reserved.
Godrej InterioLargest international business unit of godrej consumer products.
PT Megasari Makmur (Godrej Indonesia) is a leading player in household insecticides(Hit), air freshners (stella) and wet tissues (mitu) in Indonesia.
Copyright © 2015 Vector Consulting Group. All rights reserved.
ResultsGodrej Megasari
The TOC sales pilot conducted with the company's
largest modern trade partner, Indomart, resulted in a dramatic (41%) reduction in the retailer's
inventory while improving availability to a consistant
100% 98% to
Availability at central warehouse
and depots / branches has increased from
92% to 98%
ROCE increased from
47% to 65%
Copyright © 2015 Vector Consulting Group. All rights reserved.
ResultsGodrej Megasari
Service levels from
branches / depots to customers has improved
from
97% 95% to
Approx. 14% (8200 sq.m) of the warehouse
space has got released.
Inventory turns improved by
37%(from 6.38 to 8.75)
Overall inventory days
has been reduced by
28%
Copyright © 2015 Vector Consulting Group. All rights reserved.
Bajaj ElectricalsLeading company in consumer electrical equipment manufacturing.
Provides solutions for architectural lighting, commercial & residential lighting, fans, consumer durables products.
Copyright © 2015 Vector Consulting Group. All rights reserved.
ResultsBajaj Electricals
The secondary
sales is up by more than
50%The reach has doubled,
retailers added
40%new SKUs
top related