Project SCM

Supply Chain Management of Hindustan Unilever Ltd.
Ajay
Jatinder
Tushar Sharma
singh Virk
Ballabh
1
Introduction
Hindustan Unilever Limited (HUL) is the largest FMCG company in India.
Its products include foods, beverages, cleaning agents and personal care
products.
It is headquartered in Mumbai, Maharashtra, India.
Hindustan Unilever Limited has over 35 brands spanning 20 distinct categories.
As per Nielsen market research data, two out of three Indians use HUL
products.
Hindustan Unilever Limited was established in 1933 as Lever Brothers India
Limited by Lever Brothers.
In 1956, it became known as Hindustan Lever Limited, as a result of a merger
between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders
Ltd.
The company was renamed in June 2007 as Hindustan Unilever Limited.
Lever Brothers first commenced operations in India in the summer of 1888,
when crates full of Sunlight soap bars, embossed with the words "Made in
England by Lever Brothers" were shipped to the Kolkata harbour and it began an
era of marketing branded Fast Moving Consumer Goods (FMCG).
2
Vision & Mission
We work to create a better future every day
We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
We will inspire people to take small everyday actions that can add up to a big
difference for the world.
We will develop new ways of doing business with the aim of doubling the size
of our company while reducing our environmental impact
Mission
To add Vitality to life.
Help people feel good, look good and get more out of life.
3
HUL Product
4
Evolution of HULs Distribution Network
The first phase of the HUL distribution network had wholesalers placing
bulk orders directly with the company.
The focus of the second phase, which spanned the decades of the 40s, was
to provide desired products and quality service to the company's
customers.
The highlight of the third phase was the concept of "Redistribution

Stockist" (RS) who replaced the RWs(Registered Wholesalers).
HUL's products, are distributed through a network of 4,000 redistribution

stockists , covering 6.3 million retail outlets reaching the entire urban
population, and about 250 million rural consumers
5
Distribution Network
6
Distribution in Villages
7
Project Shakti
To distribute their products in remote rural areas through
its Project Shakti. (2001).
Thirty per cent of FMCG business comes from villages with a population less
than 2,000
The Shakti model trains women from SHGs to distribute HLL products of daily
consumption such as Detergents, Toilet soaps and Shampoos
Distribution acquired a further edge with Project Shakti, HLL's partnership
with Self Help Groups of rural women. The project, started in 2001, already
covers over 5000 villages in 52 districts of Andhra Pradesh, Karnataka Madhya
Pradesh and Gujarat, and is being progressively extended.
The vision is to reach over 100,000 villages, thereby touching about 100 million
consumers. The SHGs have chosen to adopt distribution
To distribute their products in remote rural areas through its Project Shakti.
(2001).
Thirty per cent of FMCG business comes from villages with a population less
than 2,000
The Shakti model trains women from SHGs to distribute HLL products of daily
consumption such as Detergents, Toilet soaps and Shampoos
8
Project Streamline
9
Project Streamline Activity
The goods are distributed from C & F Agents to Rural Distributors (RD), who
has 1520 rural substockists attached to him.
Each of these substockists / star sellers is located in a rural market.
The substockists then perform the role of driving distribution in neighboring

villages using unconventional means of transport such as tractor and bullock
carts.
Being a cross functional initiative, the Star Seller sells everything from
detergents to personal products.
HLN has already spread to over 1500 towns and cities, covering 80% of the
urban population, backed by 42 offices and 240 service centres across the
country. It presents a range of customized offerings in Home & Personal Care
and Foods.
The New Compensation plan for HLN partners provides new exciting ways of
earning substantial income in addition to offering rewards like revenue sharing
through the innovative concept of pools
10
Leveraging Information technology
MOTHER DEPOT SYSTEM/JIT SYSTEM
In order to rationalize the logistics and planning task, an innovative step has
been the formation of the Mother Depot and Just in Time System (MDJIT).
Certain C&FAs were selected across the country to act as mother depots. Each
of them has a minimum number of JIT depots attached for stock requirements.
All brands and packs required for the set of markets which the MD and JITs
service in a given area are sent to the mother depot by all manufacturing units.
The JITs draw their requirements from the MD on a weekly or biweekly basis.
HUL customers are serviced on continuous replenishment. This is possible

because of IT connectivity across the extended supply chain of about 2,000
suppliers, 80 factories and 7,000 stockiest.
This sophisticated network with its voice and data communication facilities has
linked more than 200 locations all over the country, including the head office,
branch offices, factories, depots and the key redistribution stockiest.
They have also combined backend processes into a common Shared Service
infrastructure, which supports the units across the country.
11
Initiatives Taken to Improve the Distribution Network
Setting up of a fullscale sales organization comprising key account management
and activation to impact, fully engage and service modern retailers as they
emerge.
Servicing Channel partners and customers with continuous daily replenishment.
Leveraging scale and building expertise to service Modern Trade and Rural
Markets.
Delaying of sales force to improve response times and service levels
Launching the Unicare scheme with up market pharmacies and retailers to sale
its premium brands.
Launching of several promotional schemes for existing wholesalers and

distributors. For instance, it has started the Vijeta Rishta Jeet Ka scheme to
provide a platform for the wholesaler and HUL to grow the business by earning
points and redeeming them.
12

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Supply Chain Management of Hindustan Unilever Ltd.

The highlight of the third phase was the concept of "Redistribution

HUL's products, are distributed through a network of 4,000 redistribution

The substockists then perform the role of driving distribution in neighboring

HUL customers are serviced on continuous replenishment. This is possible

Servicing Channel partners and customers with continuous daily replenishment.

Delaying of sales force to improve response times and service levels

Launching of several promotional schemes for existing wholesalers and

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