Presentation on theme: "1 Brand, Operations, Logistics & Supply Chain Management Distributors perspective Concept Overview Understanding & evaluating distribution process - A."— Presentation transcript:
1 Brand, Operations, Logistics & Supply Chain Management Distributors perspective Concept Overview Understanding & evaluating distribution process - A 15 minutes guided tour
2 Overview : A standard distribution company will have more or less following infrastructure to manage their distribution, administration & supply chain management. Office (s) Warehouse (s) Retail Shop (s) Fleet Network of retailers And
3 Bank (s) Freight Forwarder (s) Consultants Auditors Links with banks, freight forwarders, transporters, consultants, auditors who provide support to manage the distribution process efficiently & profitably. And
4 Staff Tasks Sales & Marketing Administration Finance Customer Service Coordination Material Handling Book keeping MIS & Reports The office/warehouse/Shop staff to manage the day to day tasks helping generate the revenue projected in the business plan & to monitor the distribution process. To give the best results, the distribution company therefore, needs ; the tools, the experience, the marketing & sales, the infrastructure & the staff expertise - a formidable requirement.
5 Task Analysis – Orders Management – for a standard distribution entity: Pre-Production / Production Tasks Pre-Production Tasks Scheduling Sample Ranges procurement Preparation of Catalogue Preparation of Order Forms Delivery of Sample Ranges Collection of Sales Orders Consolidation of Sales Orders Order Acknowledgement Placement of Purchase Orders Production/Shipment Tasks Follow-up with factories on production Co-ordination with freight forwarders Arrangement for freight lifting. Follow-up for shipping documents Checking shipping documents
6 Task Analysis – Orders Management – for a standard distribution entity Post Production / Delivery Tasks Pre-Production Tasks Shipment Tracking Document Tracking Co-ordination with Forwarder Shipment Clearance Customs Clearance Confirmation of Qty Receipts Qty, Quality Check Delivery Tasks Scheduling Deliveries Pick Packing Invoicing Delivery arrangements/ Delivery Acknowledgements Stock Reconciliation Purchase Order – Shipping Documents – Receipts – Factory Invoices – Sales Orders – Sales Invoices – Inventory (Quantity wise & Value Wise)
7 Task Analysis – Money – Management – for a standard distribution entity Funds & Booking /Accounting Tasks Funds Collection of funds from Retailers Payments to factories/ service providers Negotiation of Documents Reconciliation of receipts, Payments, invoices etc. Arrangement of finance, where shortfall. Accounting / Booking Invoices (Sales/Purchase/Utility/Services) Payments / Receipts Stock / Inventory Costing Salaries /Rents / Assets
8 Other – Management Aspects Sales & Marketing Retailer identification Retailer contracts Sales & Marketing Promotions Exhibitions POS / POP management Market research Creative inputs Sales Agents identifications Monitor Progress Range Releases, Retailer meet & follow-up
9 Apparently, All costs to implement these tasks are to be managed from the distribution margin ! Admin Cost Sales & Marketing Cost Overhead Cost Supply Chain Cost Finally, you are left with cherries!! If at all…
10 A typical example of the distribution process with hypothetical values: The above illustration is based on a typical European market where the product sourced outside of Europe with a full wholesale / retail margin applied. To realize this margin the distributor must implement all of the tasks in the order management process (detailed earlier), plus have the infrastructure to support the activity, even then a 10%, profit for the distributor is hard to achieve. Managing efficiently the complete supply chain and still reducing the 90% of the distribution cost element is Bleach Internationals role and is its Business. Sr. NoDistribution ChainDetails Percentage MarkupValue (USD) Valuation (Up words) $Remarks 6Retailer Markup 225.00% $ 3,251,796 Consumer Price 5Distributor Margin 40.00% $ 556,774 $ 1,445,243Distributors Income 4Distributor CostTransportation & Pick pack6.00% $ 53,308 $ 888,469 Pick Pack / Service Chgs etc. 3Brand Owner Margin 30.00% $ 214,286 $ 835,161On Landed price. 2Cost AdditionsFreight handling Chgs2.00% $ 12,418 $ 620,875 Forwarder Handling Charges Freight & Shipping Chgs5.00% $ 30,423 $ 608,458 Shipping + Documentation Duty13.50% $ 78,035 $ 578,035 % Variable depends on product 1Factory Price $ 500,000
11 Some basic advantages – networking/associating with Bleach International : 1.Helps you to cover and target, places & groups which are physically, geographically difficult to manage. 2.Unlike any other expensive cost cutting alternate, which has to be tested over time, Bleach provides a tailor made, real time, easy to understand, scalable still cost efficient distribution package. 3.Helps you to re-work your existing infrastructure into efficient, systematic, & focused, reducing unnecessary costs associated. 4.Helps managing the order to delivery system very efficiently and most importantly with least chances of human errors. 5.Transparent order management, helps to focus on the areas of weakness, pro-actively. 6.Helps better management of cash flow. 7.Helps better returns on investment, as tax efficiency, increased sales coverage mean more business less investment. 8.Encourages better link between retailers, distributors, brand owners, suppliers & freight forwarders, benefits general health of business enterprise as a whole. 9.Any weak links can be replaced easily (like sales agent for example) as the data is managed in central system; over-riding allocated rights on written permission, helping distribution never to loose customers. 10.Any future technology, distribution infrastructure advances managed by Bleach over time; you will be able to get it in a very reasonable cost. 11.And Many More….