Retail Chronicles- 1 to 15 sept

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03 Sales and Distribution: For a company to hold such a diverse portfolio and to sustainably grow its profits the sales and distribution system plays a crucial role. Company’s responsibility is to ensure optimal redistribution of the products among the retailers in the assigned area. They must ensure that all the brand-packs of all the products manufactured/marketed by the company are available in as many retail outlets as possible in their area. If stock exhaustion happens in any of the outlets, company is likely to lose end-consumers. The Indian consumer rarely marches a mile to buy a product - he is likely to switch, and even if he is not inclined to do so, the retailer will instigate the switch as he would hate losing a customer to his competitor down the street. This implicitly means distributors should be stocked with sufficient quantity of all brand-packs, gearing them for seasonal fluctuations and production vagaries. At Adani Wilmar the distribution channels are segmented according to the target market, dividing it into two categories: General Trade: Traditional trade is associated with a spread-out distribution network of small retailers, dealers, stockists, wholesalers, and distributors. It’s an intricate network which serves localized customer demand through regular orders with short lead times and varying fill rates. Modern trade: Modern Trade (MT) consists of supermarkets and hypermarkets that retail Fast Moving Consumer Goods (FMCG). This route aims at catering masses in urban location via one stop shops. These two distribution channels have several stages depending on how many organisations are involved: Channel 1 contains three stages between producer and consumer - a C&F agent, distributor and a retailer. After a product is manufactured, it has to be sent to the market for sales & distribution. A C&F (Carry & forward) agent acts as a link between company and distributors and transfers the stock from the former to the latter. The Distributors then distribute the products in the market through retailers.
Channel 2 contains two stages between producer and consumer - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of variety of producer’s goods and then breaks them into bulk deliveries to supply retailers with smaller quantities. Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. Factory outlet store is the prime example of direct marketing channel. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent. The company, in order to have real time visibility and monitor the sales force’s activity has opted for SFDC with SAAS model. This enables the company to monitor any exception on mobile devices based on policy defined as per organization security guideline and fix it. The company’s sales structure is represented by the following framework: Sales structure complementing distribution channels: Adani Wilmar has the largest distribution network of edible oil in India. The FMCG giant has a sales force of more than 600 people and 4000 distributers. The Sales force process at Adani Wilmar involves multiple levels of planning including Annual Tour Plan (ATP), Monthly Tour Plan (MTP) and Daily Sales Route (DSR). Every salesman plans his daily tour based on his MTP and visits a number of agreed outlets for taking orders. During each outlet visit, the salesman is supposed to push new product and scheme, check on how the company’s product is displayed at the outlet, review sale of the previous order and take new orders. The distributor delivers the order after the salesman files it in the system manually. ZSM: Zonal Sales Manager RSM: Regional Sales Manager ASM: Area Sales Manager ASE: Area Sales Executive DSM: Distributor Sales Manager 04
Page 1 and 2: & Culture Structure Adani Wilmar: A
Page 3: 02 Structure and Culture of Adani W
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Retail Chronicles- 1 to 15 sept

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