cold chain & logistics solutions in tier 2 & tier 3 cities

8/14/2019 Cold chain & Logistics solutions in tier 2 & tier 3 cities

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EVALUATION & MAXIMIZATION OFDISTRIBUTION NETWORK

PRESENTED BY ,

MR. ANIL WANARSE PATIL,

IIPMB.

PRESENTED TO,

INTERAVION


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INTRODUCTION

P&G is the worlds largest daily consumer productscompany.

Employing 98000 people in 80 countries worldwide.

Largest and strongest portfolios of trusted, qualitybrands, including Pampers, Tide, Pantene, Crest, Olay.

CORE STRENGTHS: Branding, Innovation and Scale.

7,500 Ph.D.s and researchers working in 20 technical

centers on four continents, and more than29,000patented technologies for products.


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CONT PRODUCT LINE (SIX BUSINESS UNITS).


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EVALUATION & STRATEGIES

INDIA CHINA


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EXECUTIVE SUMMARY

P&G has long maintained a strong presence in

China,(1988) Through strategic distribution ,planningand product positioning.

China, however, is an ever-changing market place,especially since their recent WTO(2001) entry.

STRATEGIES OF THE PAST MAY NOT BE

THE BEST STRATEGIES FOR THE FUTURE.( Truth for distribution).

How do you know the distribution method you arecurrently using, is the best method?

RA Solutions offers the skill and knowledge to analyzethe market in China.


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MARKET TRENDS AMONG DIFFERENT TIERS(CHINA)Massive Market- 1.2 billion mouths to feed, 2.4

billion hands to wash, 30 billion teeth to clean, and 1/3of the worlds hair to wash.

Vast Demographic Diversity of China.( 5 main group).


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POPULATION DISTRIBUTION


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INDIA

Vast Demography.

City after china for population.


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INDIA & CHINA

Ch ina an d India,increasingly ref err ed to asthe w orld's e merginggiants amon g emergingec ono mie s, repr esent th esec ond an d four th lar gestec ono mie s in th e w orld,


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CONT. . 80 : 20 RULE-( Rural & Urban). 80 Rural

20 Urban.

( 80 % Business is gathered by 20% of Area).Tiers 1 & 2 :- 8% of population, which translating

only 20% of the countrys disposable income.

Because- of that Local and regional manufacturers and

distributors therefore dominate the remaining 80% ofthe countrys disposable income.


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CHALLENGES FACED BY MARKET PLACECONDITIONS

Many companies have tried to position themselves tocapitalize on this potential. However, manymultinationals have failed to due to the numerouschallenges accompanied by entering this emerging

market.-Knowledge about the market place.

Understanding of the local market place.

Little respect for intellectual property.( For Innovations)Counterfeit products.(P& G- said it is losing $150 million a

year to Chinese counterfeiters).


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2. DISTRIBUTION SITUATION

Earlier Poor infrastructure of china.

Industry fragmentation.

Probable consolidation of logistics providers.

Market condition.

Communication .

Competitors strategies. (World class global technology).

So it leads to Starts giving various logistics problems bec ofthat:

No single logistics provider commands more than 2 percent of


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THE PROBLEM

Tier 1 and 2 - national brands, and account 20% ofChinas disposable income.

Tier 3, Tier 4 and rural markets:-regional and localbrands, account for the 90% of population and the

remaining 80% of disposable income., competition isrising.

2001 sales revenue - 9 billion Yuan (US$1.09 billion)

1997 Similar.

MANAGER (Liang ) -declining market share " Butthe total market is bigger than before."


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THE BEST FIT DISTRIBUTION STRATEGIES MODEL

It includes activity associated with movementof goods.( Finish goods from manufacture to customer).

FUNCTIONS Transportation

- Warehousing

- Material Handling- Inventory Control

- Location Analysis

- Packaging

- Data Processing- Communication Network.


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SHIPMENTPRIMARYHUB

ROAD WATERAIR WAYS TRAN SPORTATION

OWN OR HIREVEHICLES ( 3PL)

MAINHUB

RE GIONA LFLOWCENT RECUSTOMERCE NT RE

UP PER TIE RDC

LOWER TIE RDC

THE BEST FITDI STRIB UT IO NSTRATEGIE SMODEL

REVERSELOGIS TICS


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APPLICATION

SHIPMENT

PUNENASH IK

MUMBAI

PRIMARY

MAINHUB

RET AIL ERS CUSTOMERS

SOLAP UR, SANGLI,SATARA

JAL GAON , NA GP UR,AURANG ABAD

REVERSELOGIS TICS


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CONCLUSION

STRATEGIES OF THE PAST MAY NOT BE

THE BEST STRATEGIES FOR THEFUTURE.

Even as India is poised to compete with china in theinternational business space, there are problems in thecountry's distribution system & supply chain network Due to infrastructure woes. Lack of sophistication inthe market.

So, companies should re-evaluate their distributionsystem in order to stay ahead of the curve.


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THANK YOU

cold chain & logistics solutions in tier 2 & tier 3 cities

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