consumer goods & retail industry case study

Consumer Goods & RetailUnresolved Conflicts

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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


despite having the nearest warehouse only few days (or hours away)

Some items have inventory worth few months in the

selling locations


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.

?


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


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.


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


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.


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%


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%


Bajaj ElectricalsLeading company in consumer electrical equipment manufacturing.

Provides solutions for architectural lighting, commercial & residential lighting, fans, consumer durables products.


ResultsBajaj Electricals

The secondary

sales is up by more than

50%The reach has doubled,

retailers added

40%new SKUs

consumer goods & retail industry case study

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