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

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C&F

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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 ?