Supply chain management of hindustan unilever limited

 Indian Largest Fast Moving Consumers Good Company

 Headquartered in Mumbai

 Over 700 million consumers

 More than 15,000 employees, including 1,300 managers

 More than 200 highly qualified scientists and technologists

 Shares listed at BSE (Stock code - 500696) and NSE (Stock code –
HINDUNILVR)
 Shareholder base of over 3.5 lakh

1931: HUL set up its first subsidiary

1956: HUL offered 10% of its equity to the Indian public

1972: Lipton Acquisition

1984: Brooke Bond Acquisition

1986: Pond’s Acquisition

1993: Tata Oil Mills Company (TOMCO) merged with HUL

1998: HUL acquire Tata’s Lakme

2000: Modern Foods Acquisition

2007:Company name was formally changed to Hindustan Unilever Limited

2008:In Oct. 17th HUL Celebrate 75 years of corporate existence in India.

Hindustan unilever ltd

Personal Color
Laundry Skin care Hair care Oral care Deodorants ayurvedic
Care cosmetics

Lux,
lifebuoy, Fair &
dove Surf excel
lovely Sunsilk Pepsodent Axe Ayush
Pears, Wheel lakme
Ponds Clinic Close up Rexona Herbal
rexona, sunlight
breeze, Vaseline

Demand forecasting on a scientific basis

Planning cycle

Feed forward one
Main Planning is one quarter ahead with three more quarter of
plan going forward .
Firstly a base level demand is calculated looking at actual sales
pattern of past months.
Done at SKU level
Efficiency is measured with parameters such as forecast errors and
customer service efficiency

Consumer
Distribution Network is HUL key
strength…..

 HUL consisting of over 100 Manufacturing plant
 2000 Supplier as a resource of raw materials and intermediates
packaging material for its 1000 product .
 Product are distributed across the country through a network of 4
warehouses
 HUL consisting of more than 40 agents, 7500 wholesalers and a number
of large institutional customer
 HUL consist of a network of 7000 redistribution stockiest, covering
about one million retail outlet.
 Distribution network directly cover entire urban population.

 An IT-powered system has been implemented to supply stocks to
redistribution stockiest.

 The objective is to make the product available at the right place and right
time in the most cost effective manner.

 For this, stockiest have been connected through an Internet-based
network, called RS Net, for online interaction.

 Substantial investments in IT-based sales system
 Every salesman books orders on a palmtop
 All orders are fed into a central database from the distributor point.
 Network is installed at all 3,500 distributor points—which makes for
accurate on-the-fly demand projections and helps avoid stock-out losses.

Distribution at the Villages

 The company has brought all markets with populations of below 50,000
under one rural sales organization.
 The team comprises an exclusive sales force and exclusive redistribution
stockiest.
 The team focuses on building superior availability of products.
 In rural India, the network directly covers about 50,000 villages, reaching
250 million consumers, through 6000 sub-stockiest.

 For long term benefits, HUL started Project Streamline in 1997.

Project Shakti :

 In 2001 Project Shakti, partnership with Self help groups of Rural women &
covers 5000 villages in 52 districts in different states.
 SHGs has chosen to adopt distribution of HUL’s product as business venture.

 SHGs getting training from HUL and supported by NGOs.
 Conducts business around 15000 per month

Hindustan Unilever Network (HUN):
 In 2003 started HUN for ―Direct Selling Channel‖- Home &
Personal Care and Foods.
Out-of-Home Network :
 Alliance with Pepsi Co. – Vending machine for hot beverages like
tea and coffee.
Health and Beauty services :
 Lakme Salons provide specialised beauty services and solutions.
 Ayush Therapy Centres easy access to authentic Ayurvedic
treatments and products.

Integrate economic, environment
& social objectives with business
agenda…..
 Providing education on health
and hygiene
 Women empowerment
 Water management
 Rehabilitation of special or
underprivileged children
 Care for the destitute and HIV-
positive
 Rural development.
 Plays active role in natural
calamities

Supply chain management of hindustan unilever limited

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