Being a distributor means optimizing costs while providing high customer satisfaction.

1. What is Changing
The Indian Retailer
India Retailer values Margin but also Service &
Convenience
Comparison of service level of paints & welding
Indian Retailer is slowing beginning to understand
the ‘Velocity of Sales ‘ concept
Make 2% but on a brand which sells faster vs. 5 % on
brand that takes long time
Increasing Retail Penetration makes it important
to retain customers and increase service levels
Growth in retail in semi-urban and rural
Needs distribution infrastructure & market development

2. What is Changing
Indian Logistics
Radio Frequency Identification (RFID) technology
where everything that moves can talk to
everyone, everywhere all the time.
Cartons of milk, bottles of wine, clothes, wallets, tyres,
cars, pets and people sending out radio signals about
what they are, where they are, and possibly what they
are doing
GPRS controlled trucks
Investment in Road & Railway Infrastructure
More Organized Third Party Logistic Providers

3. What is Changing
Indian Tax Regime
GST will make ‘India’ a single market
Most important tax reform in India since 1947
Eliminate the cascading impact of multiple taxes
Remove irrecoverable taxes such as CST,
complex documentation of inter State movement
of goods, entry barriers at State borders -long
transportation times & entry taxes and octroi
Benefit states that propagate consumption since the final
tax would be enjoyed by state that helped sell to the
consumer.
Goods across states would be flowing with more
ease
Distribution topology should hence be purely
transportation and logistics led than taxation led

4. What is Not Changing
Relationships Matter. Even More

5. Distribution is much more than
trucking & storing

6. Fulfillment of changing customer needs at optimal cost

7. Sustainable, Distribution in
Changing Times
High Customer Satisfaction & Low Cost

8. To Achieve
High Satisfaction & Low Cost
4 Cs for Sustainable Distribution
Coverage
Capability
Cost Control
Communication

9. Coverage
Service Level
We need to benchmark against the best in our
channel
Asian Paints ’s service level is more than 85 % whereas
that of other large paint companies falls between 50
and 60 percent
High Service Level (Availability of All Sizes & Products)
Zero Stock-outs: Every Stock-out gives an
opportunity for competitor to come in
Would a customer wait for a day to get company brand?
Would he travel an extra KM?

10. Coverage
Continuous Improvement
Semi-urban and rural areas need to be priority
market
Increasing coverage in the current markets is a
continuous activity
The more we increase our coverage, the less the
power unorganized and cheap brands
Bringing more & more dealers in direct retail will
decrease power of wholesalers and un-organized
brands

11. Cost Control
Need to Balance High Service Level with
Distribution Cost Control
Effective inventory management
How many inventory days of stocks you keep ?
Effective control of credit outstanding
How many days of credit , how much interest cost
paid to banks., proportion of Cash/DD to
cheque ?
Better Sales Forecasting leads to better cost
management
Analyze past trends to arrive at a 90 per cent
accurate sales forecast. Sales statistics by
month, salesman, market, region and dealer.

12. Capability
People Management
How do you assess performance.
How can a Salesman say I had a good day or a
bad day ? Roles & Responsibilities ?
How do you incentivize your sales force?
Besides money what do you think will motivate the sales
force
Need for high quality training and recruitment of
staff
How do you balance territories & cut travel time.
Are you satisfied with number of customers
contacted every day

13. Capability
How Do You/Salesmen Spend Time ?

14. Capability
Effective Merchandising
Hot-Spot act as a CONSTANT SALESMAN and
provides incentives to buy
Displaying related items together builds impulse
sales
Shaving Cream & Shaving Razors
The best selling area on any display is between
belt and eye level : 40” to 72”
Better export box packing presents attractive
merchandising opportunity

15. Communication
Communication builds relationship. Communication
improves channel management
Basic Software to do a small customer relationship
management
Send dispatch details after the material dispatch
SMS on birthday & marriage anniversary
Orders received through SMS
Payment reminders after 7/14 days
Communicate price and other market information

16. Measures for
High Customer Satisfaction
High Shelf Availability
High Shelf Visibility
High Reach
Higher ‘Share of Business’ of Outlet
Improving Sales

17. Measures for
Low Cost
Low Logistics Cost
Low Total Inventory
Low Total Credit Days
High Staff Productivity

18. To know more about us visit
www.mastersungroup.com
WRITE TO sarvajeet@theadiva.com
+91 9920803060