Supply chain study of project shakti(Hindustan Unilever))
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Transcript of Supply chain study of project shakti(Hindustan Unilever))
ANKITA DOBHAL
PRABIN KUMAR NATH
PRACHIT CHATURVEDI
SHANU PRASAD
SUDHEIR YADAV
Supply Chain ManagementProject Shakti
2011XIMB
Launched in the year 2001 in the Nalgonda district situated in Andhra Pradesh
A rural initiative that targets small villages with a population less than 5000 individuals.
Objective is To create income-generating capabilities for underprivileged rural women by providing a sustainable micro enterprise opportunity, and to improve rural living standards through health and hygiene awareness
Project Shakti contributes to 10% of rural turnover nationally for HUL It covered 1,00,000+ villages through a network of 45,000 Shakti
Ammas across 15 states reaching 3 million homes Aim is to have 100,000 Ammas covering 500,000 villages and
reaching 600 m people On an average, a Shakti entrepreneur earns INR 700 - 1000 a month
Introduction to HUL Shakti
2011XIMB
Selection of Villages with a population of about 2000–3000 Personnel from HUL approach SHGs or Panchayat for selection
of the Shakti entrepreneur and also provide assistance for credit One Shakti entrepreneur is appointed for one village Two villages need to be 2 kms apart from each other Initial investment of Rs 20,000 that is used to buy product for
selling Profit margin of 10% higher than retailer is given to Shakti
Amma
Structure and Functions
2011XIMB
Food Brands
2011XIMB
Personal Care
2011XIMB
Home Care
2011XIMB
Deep Penetration
Higher Margins to Shakti entrepreneurs
Integrating Business with Social Responsibility
Partnership with non competitive company to sell their product
through Shakti entrepreneurs
Competitive Strategy
2011XIMB
Sustainable Sourcing Consistent Approach to Suppliers’ Assessment - Business Partner Code Rain Forest Alliance Certification Fair income for Farmers
Door to Door Selling Community Involevement In Supply Chain Fixed Period Order
Supply Chain Strategy
2011XIMB
Strategic Fit
ACHIEVING STRATEGIC
FIT FUNCTIONAL STRATEGIES• Credit Facility through banks• Promotion through Below the Line
activity• Low transport cost
COMPETITIVE STRATEGIESDeep penetrationBusiness with social responsibilityHigh margin to Shakti entrepreneur
SUPPLY CHAIN STRATEGIES• Sustainable Sourcing • Door to Door Selling• Community Involvement in sales
and distribution• Fixed period order
2011XIMB
Channel Structure – Rural Trade & Shakti
Rural Redistribution stockist
Rural Redistribution stockist
HULHUL C & F agentC & F agent
ConsumerConsumer
Rural RetailerRural RetailerUrban RetailerUrban Retailer
Whole sellerWhole seller
Urban Redistribution
stockist
Urban Redistribution
stockist
Whole SellerWhole Seller
ConsumerConsumer
Combined Direct Coverage (CDC)Combined Direct Coverage (CDC)
Shakti DealerShakti Dealer
Shakti Entrepreneur
Shakti Entrepreneur
ConsumerConsumer
Rural Sales Promoter (RSP)Third Party
Redistribution
Stockiest Salesman (RSSM)
2011XIMB
Supply Chain Model
Contract Grower
(Rainforest Alliance)
Small farm holders
Third party suppliers
Man
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80)
ware
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se
C&F
Re
Dis
trib
uti
on
sto
ckie
st
Shakti Distributor
Shakti entrepre
neur
2011XIMB
Distribution Approach
DRIVERS OF PERFORMANCE
• Facilities : • Door to door facility to customer• Easily availability• Product available on demand• Flexibility
• Inventory : • Moderate to Low Cycle inventory• Lead time of 1 day• Low Safety inventory• Holding cost of inventory is moderate to low
DRIVERS OF PERFORMANCE
• Transportation• Mini truck as mode of transport • High Responsiveness
• Information• Reliable and accurate forecasting• Push strategy
• Sourcing• Sustainable Sourcing
• Selection and Training
ADVANTAGES OF PROJECT SHAKTI
• For Community Availability of quality products in villages
Reduced the consumption of counterfeit products
Door to door delivery of products
Source of income generation
Women empowerment and enhances their decision making ability.
Contd…
• For Hindustan Unilever Deep penetration in remote and unreachable area Brand awareness for HUL in media blind area More accurate and reliable prediction and forecasting helpful in study consumer behaviour hence product
development Goodwill that is intangible assets for company. It developed organised supply chain
Problems and Challenges
• Develop and trained human resource requires high investment.• Problem in record keeping for Shakti entrepreneur. • There is stigma attached with door to door selling • To get more profit, Shakti entrepreneur tries to play both the role
of retailer and dealer that affect penetration of products in village.
Recommendations Providing training with collaboration of other non-competing companies
and with collaboration of NGOs. Low cost training by hiring local people as a trainer There should be three or four retailer under each Shakti entrepreneur so
that product penetration is good and it increase efficiency of supply chain To Provide more opportunity to special community like Mannihar those
have traditional business of selling
2011XIMB
This project provide us opportunity to analyse strategy fit of competitive and supply chain strategy
It also gives us the opportunity to understand how the social activities can be well incorporated in the operational strategy to derive maximum profit.
This project give learning how to serve the society and along with the profit of organisation that provide the sustainability to any project
Learning and Conclusion
EXISTING BUSINESS ACTIVITIES
EXISTING CONTRIBUTION TO THE SOCIETY / CSR ACTIVITIES
PROJECTSHAKTI
SOCIAL BUSINESS INITIATIVE
Thank You
Questions ?