Information technology as an enabler of sales and distribution
Summary :
Table of Contents
- Introduction
- FMCG sector in India
- Distribution sectors
- Marico, Asian paints and HLL
- IT in sales and distribution automation
- Supply chain management
- Review of popular SCM solutions
- Sales and distribution in India
- The modern trends: Use of PDA's
- S&D automation: Case studies
- Hindustan Lever Limited
- Marico
- Asian paints
- Comparitive analysis
- CFA's depots and distributors
- Primary and secondary sales automated
- Advantages and critical factors
- Framework for IT implementation
- Conclusion
- Bibliography
Abstract
A competitive edge in sales and distribution network provides much needed muscle to the companies to compete in market place as has been epitomized by companies like HLL, Marico & ITC etc. Use of IT in sales and distribution promises to provide a consistent source of competitive advantage that can go a long way in enhancing the overall power of company in market place.
sales and distribution in India means a set of levels- wholesalers, stockists, transporters, retailers etc. Automation of S & D promises the reduction in storage costs, administrative costs, communication costs, lesser wastage and lesser transportation cost because of better route planning. It enhances the revenue because of better marketing planning, demand volatility management, responsive product development. The productivity is also enhanced because of effective use of sales data, improved communication flows and computer assisted ordering. Considering all these advantages, IT looks like to be a natural candidate to be used in sales and distribution.
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million.
sales and distribution in India means a set of levels- wholesalers, stockists, transporters, retailers etc. Automation of S & D promises the reduction in storage costs, administrative costs, communication costs, lesser wastage and lesser transportation cost because of better route planning. It enhances the revenue because of better marketing planning, demand volatility management, responsive product development. The productivity is also enhanced because of effective use of sales data, improved communication flows and computer assisted ordering. Considering all these advantages, IT looks like to be a natural candidate to be used in sales and distribution.
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million.
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