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Group Members:Kalgi Desai (B-11)

Reema Gandhi (B-21)Sohil Ghoghari (B-22)Dipak Savaliya (B-53)

Sagar Sharma (B-65)Shubham Singh (B-66)

DISTRIBUTION MANAGEMENTGroup 4

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Appliance

Godrej & Boyce Mfg. Co. Ltd.

Commercial(Administration, Logistics, HR )

Accounts

Interio Security Solutions E & EPRIMAMHELocking

Solutions

“Godrej & Boyce Mfg. Co. Ltd.” Structure

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Distribution Channel

Manufacturer

E-commerce Sites (Snapdeal,

Flipkart, Amazon)

Distributors (300)

COCO Stores(50)

Supermarkets (Hometown ,

Reliance)

Retailers (1000+)

Consumer

Hardware Shop

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Distribution Channel Structure Four Zones:• North Zone: Delhi • West Zone: Mumbai• East Zone: Kolkata • South Zone: Chennai

Branches:• 19 Branches all across the country• Located in State Capital or Metro City.• Managing operations for entire state.• Headed by Branch Head (Asst. Gen. Manager)• Every branch has both Sales and Service team.

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Gujarat Region- Ahmedabad Branch

• Its operates in Gujarat region is handled by Ahmedabad Branch located in Ahmedabad city.

• Manages Two company owned Stores in Ahmedabad city, 15 Distributors and 400 plus retailers all across the state.

• Each Distributors has a strong network of retailers in their respective area.

• Major share of Business from 7 Metro cities of Gujarat (Ahmedabad, Baroda, Surat, Rajkot, Bhavnagar, Jamnagar and Bhuj)

• It has its central warehouse near Ahmedabad, owned and managed by “Godrej & Boyce Mfg. Co. Ltd.” (Parent Company)

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Sr. Manager (Retail)

SM (Retail)

SM (ISS)

SM (R)

SM (R)

SM (I)SM (R)Sr. Manager

(ISS)

COCO StoreHead TSITSICOCO

Store Head

RM (East)

RM (West)

RM (South)

RM (North)

Vice President

COO

Organizational Hierarchy

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Ways through which PRODUCT reach to CONSUMER

1. Company owned Outlet:-

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• Stores owned and managed by “Godrej Interio Division”.

• It has separate display of security products.

• Security Solution division gives commission to Interio on sales of its products.

• Interio store employees are trained by security solutions.

• Security Solution division gives quarterly consumer discount schemes for stores.

• Security product purchased from store is eligible from free delivery.

• The store can directly pick up the security product from warehouse without intervention of security division.

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2. From the counter of Distributor/ Retailers/ Hardware Shop

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• Distributors are assigned by Security Solution branch office of the respective state.

• Security Solution division has hired TSIs and they have assigned different territories.

• TSIs are the one point contact for distributors.

• Distributor’s standard margin is 20-25 % on product MRP.

• They pass on 15-17 % to their retailers.

• They have to give discount scheme benefits to their customers, however it is borne by the company.

• The company gives many promotional schemes for distributors and retailers also.

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3. From E-Commerce Web-site

•Many popular models are available online for sale.

• These transactions are centralized and under the monitor of H.O.

•E-commerce websites has direct access to the system, it helps them to commit delivery date.

• They forward order confirmation to the respective branch office via e-mail.

•It is branch’s responsibility to deliver the product to the customer once the order is confirmed.

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Logistics• Central Warehouse is located at Vikhroli, Mumbai adjacent to manufacturing plant.

• Each branch has its own warehouse, owned by parent company “Godrej & Boyce Mfg. Co. Ltd.”

• They have been allotted storage space in the warehouse according to their market share and requirement of their models.

• Logistics part is managed by “Commercial Division” an independent body hired and handled by “Godrej & Boyce Mfg. Co. Ltd.”

• The division has to co-ordinate effectively with the Commercial Division for smooth operations.

• Total stock on hand and quantity of each SKUs are decided by H.O. of Security division.

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Transportation

• Parent company (Godrej & Boyce Mfg. Co. Ltd.) uses third party transportation.

• Transportation cost to deliver the products from Central warehouse to Branch warehouse is

bear by the Head office.

• Transportation cost to deliver the products from Branch warehouse to Distributors location

is bare by Branch office.

• They have long term contract with selected transporters which gives them cost benefit.

• They provide FOS delivery in case of direct purchase by the customer from its authorized

outlet.

• It is mandatory for all transporters’ employees to wear the uniform provided by the

company.

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Gaps in Logistics & Transportation system

• As the division is holding too much variety of product the “Inventory cost” is very high.

• Very difficult to push slow moving models, it unnecessarily occupies the space.• Some models are in high demand but the supply is very low which resulted in to “Lost

sales” • It comes under the authority of Commercial department, so the goal might not be the same

which creates conflicts.• Have no clarity on the clearance of SKU’s with manufacturing defect, transportation

damage and incase of returned stock.• There are many false claim of “Manufacturing defect” by the transporter in case of material

received in damaged condition.

• In many cases the transportation cost is very high as compared to the value of the product.

• Conflicts between Logistics division and branch office regarding the inventory level and

delivery related issues.

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Use of Technology

• BaaN is the information system used by Godrej Locking and Security Solutions.

• This system is accessible by every employee of the organization.

• It is used for Stock, Customer database, Accounting and finance and Manufacturing related activities.

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Use of Technology• The distributors and retailers does not have an access to the BaaN system.

• They contact the TSI (Territory Sales In charge) as and when the material is required.

• They gave order for required material via E-mail, or Telephone.

• Every morning the distributors receive a spreadsheet with the types of model and its availability.

• The distribution can send Inventory/ Non inventory credit notes, return order and refund order forms via mail.

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Chance of Improvisation • They should have an access to the system, it helps them to commit proper delivery time to

their customers as well as it reduces their dependability on TSI’s.

• The company should develop common platform for its channel partners. (i.e. Wal-Mart and P&G)

• They should have an effective system, which may help channel partners to know the availability of the product.

• It also helps company to know the trend in the market and forecast the sales.

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Retailer’s view about the company

1. M/s. Ashok Traders

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• Ms. Ashok Traders is a retailer of Godrej Locking and Security Solutions.

• They are happy with their distributor and the company.

• They stay connected with the company and gives update about the sale of the products via Mobile application.

• They enjoy the benefits of brand name of the company.

• They are happy with the quality of the products and the service provided by the company.

• They are satisfied with the margin given to them by the distributor.

• They want that the suggestions given by them are implemented.

• They complain that the delivery of some popular models is slow after placing an order.

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Retailer’s view about the company2. Ms. Laxmi Enterprise

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• Ms. Laxmi Enterprise is the distributor and also have their own retail counter for

Locking and Security Solution products.

• They are happy with the product quality and service of the company.

• They bagged many big orders from Government institutions and Residential schemes in

last couple of years.

• They are satisfied with the support provided by TSI assigned to them by the company.

• Many times they have the telephonic conversations with senior authorities of the company.

• They have some complaints with the service department of the company.

• They have to wait long time to get the missing part of some products.

• They are demanding from company to increase the margin.

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Our Interview with TSI for Ahmedabad City :

Mr. Siddharth Barchcha

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From the Channel Manager’s desk• Channel Manager in this organization is known as TSI (Territory Sales In charge)

• Co-ordinate between the company and its channel partners

• Quarterly and yearly targets to achieve

• Ensure Customer Satisfaction and Customer Relationships

• Key account management

• Business Development

• Product Promotions

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• Maintaining good relations with the distributors and retailers is always TSI’s first priority.

• Proper sales and product training to dealers and retailers employees.

• Convincing distributor to increase the quantity of ordered product.

• Responding to distributors and retailers service related complaints.

• Ensuring that they get the delivery of their ordered material on time.

• Ensuring that they get the missing parts of the products on time.

• Helping and providing support to distributor or dealer during the process of Government tendering and other big requirements.

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Our experience @ Retailers shop

• According to our observation majority retailers are happy with the company.

• They don’t have to make extra efforts to sell the products due to Brand name and reliability of the company.

• Almost all retailers are Multi-product and Multi-brand retailers.

• It is very difficult to find exclusive retailer in this segment.

• Retailers usually deals with individual customers (B2C segment)

• They sometimes gave some extra discount in order to close the sale.

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Channel Establishment Plan• Purpose to set-up:- To increase sales and market share of Locking and Security products.• Profile of the customers: - Individuals (Urban, Semi urban and Rural area)

- Financial Institutions - Government and Semi-Government institutions - Real estate Market

• Operations of the existing channels:- Manufacturer, Distributor, Retailer

• Roles and responsibilities of the channel constituents:- Deal with both B2C and B2B segment

•The proposed remuneration for performing these roles and responsibilities:- Margin on MRP 20-25% to Distributor out of which he pass on 15-17% to Retailers.

• Criteria for appointing the channel members:- Financial stability, Geographical location, Showroom space, Past experience in this field.

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Our Finding and Gaps• Lead time for some popular models are very long.

• Lead time for far away area distributors (Ex. Palanpur, Porbandar) is long as compared to Big cities like Ahmedabad.

• Problems in the process of “Return Order”

• Company provides FOS delivery within Ahmedabad city even for small quantity orders which results in increased cost.

• Service related issues.

• Conflicts between COCO Stores and Dealers.

• Co-ordination issues with Branch office and warehouse in the case of online orders.

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Thank You!