Lobs

Sales Stint: TSO

24-Aug-13
HUL
Nilesh Kotalwar
Table of Contents
Stock Control ......................................................................................................................................................... 5
Urban GT ........................................................................................................................................................... 5
Order Page .................................................................................................................................................... 7
Operational procedure ................................................................................................................................. 8
Concept of Locks ........................................................................................................................................... 8
Tracking by TSO ............................................................................................................................................. 8
NMSM Stocks and WoW (War on Waste) .................................................................................................... 9
DSE Stock....................................................................................................................................................... 9
Timeline for Norms ..................................................................................................................................... 11
Timeline for Locks and Manuals ................................................................................................................. 11
Timeline for Non-PDP ................................................................................................................................. 11
Logic of distribution .................................................................................................................................... 11
Target management by channel ......................................................................................................................... 12
Channels in Urban GT ..................................................................................................................................... 12
Grocer ......................................................................................................................................................... 12
Small Kirana................................................................................................................................................. 13
Kiosk ............................................................................................................................................................ 13
Chemist ....................................................................................................................................................... 13
Fancy ........................................................................................................................................................... 13
Wholesaler .................................................................................................................................................. 13
Channel programs ........................................................................................................................................... 14
Vijeta ........................................................................................................................................................... 14
Better Stores ............................................................................................................................................... 15
ICS (Grocer Next)......................................................................................................................................... 15
Super Value Stores ...................................................................................................................................... 15
Anmol .......................................................................................................................................................... 15
Drugstores ................................................................................................................................................... 15
Fancy ........................................................................................................................................................... 16
Channel Target Setting.................................................................................................................................... 16
Other Promotional Schemes (OPS) ................................................................................................................. 17
STPR ............................................................................................................................................................ 17
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 PPR .............................................................................................................................................................. 17
BTPR ............................................................................................................................................................ 17
Slabbed STPR............................................................................................................................................... 17
QPS .............................................................................................................................................................. 17
MM Plan ...................................................................................................................................................... 18
Coupons ...................................................................................................................................................... 18
RS architecture and profitability ......................................................................................................................... 19
Processes & Structure ..................................................................................................................................... 19
Infrastructure .................................................................................................................................................. 20
Perfect Customer Program ............................................................................................................................. 20
Joint Business Plan ...................................................................................................................................... 20
The Customer Differentiation Tool ............................................................................................................. 21
North Branch Area Comparison .................................................................................................................. 22
GTM Customer ................................................................................................................................................ 23
Return on Investment of RS ................................................................................................................................ 23
Calculation of ROI........................................................................................................................................ 23
Quantity of funds ........................................................................................................................................ 24
Costs for RS ................................................................................................................................................. 25
Comparison of RSs ...................................................................................................................................... 28
Area reorganization (Beat Plans) ........................................................................................................................ 29
Beat type ..................................................................................................................................................... 29
Service level Matrix ..................................................................................................................................... 29
Visiting Frequency and beat size................................................................................................................. 29
Delivery beat Planning ................................................................................................................................ 30
Execution: Understanding assortment selling .................................................................................................... 31
Perfect stores .................................................................................................................................................. 31
Assortment.................................................................................................................................................. 32
Red lines ...................................................................................................................................................... 33
IQ Width ...................................................................................................................................................... 33
Business Mandates ..................................................................................................................................... 34
Depth Packs................................................................................................................................................. 34
Wholesale perfect stores ............................................................................................................................ 34
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 RSSM Service level .......................................................................................................................................... 34
Perfect day .................................................................................................................................................. 34
FOS and EFOS .............................................................................................................................................. 35
ECO and Unique ECO................................................................................................................................... 35
Bill productivity ........................................................................................................................................... 35
Linkages in WPG .......................................................................................................................................... 36
RSSM Training ..................................................................................................................................................... 36
Basics of sale ............................................................................................................................................... 36
Points to remember .................................................................................................................................... 37
Recruitment & Selection ............................................................................................................................. 38
HHT Benefits ............................................................................................................................................... 38
MOC Planning For a TSO ..................................................................................................................................... 39
Start of MOC ............................................................................................................................................... 39
4FE of MOC planning .................................................................................................................................. 40
TDP 1 ........................................................................................................................................................... 40
TDP 2 ........................................................................................................................................................... 41
TDP 3 ........................................................................................................................................................... 41
Regular working .......................................................................................................................................... 41
Launch management .......................................................................................................................................... 42
Commercial Procedures ...................................................................................................................................... 42
Banking procedures .................................................................................................................................... 42
Channel Financing ....................................................................................................................................... 43
Claims approval ........................................................................................................................................... 43
RS Unify ............................................................................................................................................................... 44
Appendix

4
 Stock Control
Stock is maintained at RS point through continuous replenishment system wherein the
Operational productss are replenished only for the amount that is needed in real time.
time
Process:

1. Publish
Stock Flow
scientific Secondary Sales
norms at the
start of MOC. End
Factory Depot RS Trade
2. Changes if Consumer
any.
Primary Sales
3. On PDP
day, orders Urban GT
placed on To calculate SKU wise stock requirements in p primary sales,
s, scientific norms are used. Scientific
SAP Page norms are prepared based on historic sales data, number of PDPs, estimation of product
after stock
supply, trends, class of SKU, CP and OPS planned for the month. ASCM presents these RS wise
confirmation.
norms during MOC for TSOs to check norms for new and QOC packs.. This is done because few
4. Requests IQ and BM packs might have been added after the es estimations. TSOs give inputs to ASCM for
for uplifts, any changes required by increasing norms of a particular SKU. Total value of the norms is
manuals.
generally kept the same or little higher. Discretion of accepting the suggestions lies with ASCM
5. Invoice since higher norms for one TS
TSOO may create issues of stock for an entire area.
generation
on next day. What are norms?
6. Delivery Answer: Norms are the minimum quantity of a SKU to be kept at RS point. When the stock
arrival and level goes below this quantity, order for that SKU is generated on SAP PDP order page.
confirmation.

7. Cheque When can norms be edited?

encashment Answer: Norms can be edited only at the start of MOC.
next day. (For
RTGS parties, What is PDP?
dispatch after Answer: Permanent dispatch plan is a fixed timeframe for placing orders for stock
payment)
replenishment at RS point. Number of PDPs in a week is fixed beforehand and PDP days are
also fixed. In a month, you cannot have PDP on Monday in first week and on Tuesday in
second week.
Concepts on
Page: How can one decide number of PDPs for an RS RS?
Scientific Earlier PDP had to qualify minimum requirement of tonnage and value both. Now only value is
Norms, PDP considered. It also considers rroute clubbing & RS serviceability. Based on monthly sale (value
and tonnage), one can arrive at number of PDPs. Also, there is provision for combining orders
of two RSs (which are located nearby), to fulfill the mini
minimum
mum requirements to make a PDP. In
Hills area, North Branch, on an avera
average
ge order of 1.1 L has a weight of 1 ton.

5
 Following table shows the recommended stock for a particular number of PDPs.

PDP Stock to be
Role of a TSO
kept for days
1. Give inputs 1 12-15
while 2 10-12
finalizing 3 8-10
norms (BM & 4 6-8
IQ packs). 5 5-6
Table 1: Number of PDPs and stock
2. Check
NSA/MSTN What is the relation between number of PDPs and its value?
locks reports Value is directly linked to the recommended stock.
to give inputs Recommended stock = 7/ no. of PDPs + delivery time + buffer (1 to 5 days)
to RS.
[All values are in days]
3. Sale and
ROI of RS, both Following table shows the relation between number of PDPs in a month and stock days
depend on based on class of SKU.
investment in
stock. So, TSO No: of SKU Stock Norm No: of SKU Stock Norm
should make PDPs/Month Classification in Days PDPs/Month Classification in Days
sure that OQ is 24 A 3 12 A 8
not so low so 24 B 4 12 B 10
as to affect the 24 C 7 12 C 15
sales & not so 24 Bottom Line 4 12 Bottom Line 10
high that 20 A 4.5 8 A 10
would 20 B 6 8 B 12
increase 20 C 10 8 C 17
NMSM stock & 20 Bottom Line 6 8 Bottom Line 12
reduce RS ROI. 16 A 6 4 A 13
16 B 8 4 B 15
4. Help RS to 16 C 13 4 C 20
decide uplifts, 16 Bottom Line 8 4 Bottom Line 15
manuals. Table 2: Number of PDPs and Class of SKU
5. Regular
When norms are fixed, it would be reflected on following SAP page.
stock audit.
http://inpartner.unilever.com/irj/portal. RS has to log in using user name (RS code) and
password. Orders are placed as per PDP. On order page, each SKU has a recommended order
Concepts on quantity based on norms and closing stock. Downwards need to requested and approved if
this page:
RS wants lesser quantity than minimum recommended of a particular SKU. Uplift can be
Open order, taken upto the maximum value in the recommended quantity range. Manual order needs to
Uplifts, be requested and approved if RS wants higher quantity than maximum uplift possible.
Manuals, Orders which remain unfulfilled due to shortage of stock at depot go into open order
MSTN Locks,
section. These orders are given preference over regular orders. There would be locks
Quota packs
defined for range of quantity of the order. MSTN lock of 300% means, RS can have stock
upto 3 times the norm. In case of new launches, there could be quota of quantity for RS.

6
Order Page
This is how order page looks like (Non-GTM customers):

How are goods ordered on the order page?

1. Order type: Order placed as per permanent dispatch plan (PDP) is tagged as a PDP order while any
other order is tagged as Non-PDP order
2. Plant: Dropdown giving flexibility to place a Non-PDP order at a particular source.
3. Norm: Quantity of stocks which should be stocked with you
4. Stock: Closing stock level based on the RS Unify Sync for the given day.
5. Open quantity: Order already present in the system
6. Suggested quantity: Additional Order suggested by the system; it is calculated based on the
following formula

SO = Norm - Closing stock – In Transit stock - Open order
7. Total quantity: Total order suggested by the system; it is calculated based on the following formula

Open Quantity + Suggested Quantity
8. Quantity range: Order range that can be accepted by the system; it is calculated based on the
following formula

Upper limit: Norm X Upper lock - Closing stock – In Transit stock - Open order

Lower Limit: Norm X Lower lock - Closing stock – In Transit stock - Open order
In case the range shows "-", it means you can place whatever order you want to place.
9. Confirmed quantity: Final order quantity to be placed
7
 10. Sales order information: You can know overall value and volume of your order and your credit limit
from this section. The Calculate button allows you to know the value of your order.

Operational procedure
Non-GTM customers

1. Complete the billing

2. Sync your closing stock
3. Place the order for products on the order page and calculate the order value
4. Check for credit information (DD amount, number of cheques)
5. Confirm the order

GTM customers

1. Complete the billing

2. Run the utility file
3. Sync your closing stock
4. Place orders for products with Norms
5. Upload the GTM file for packs on ZIP based ordering
6. Check the orders uploaded
7. In case of RTGS customer check the order value
8. If order value above the RTGS reload the orders post correction

Concept of Locks
Locks influence the field “Quantity range” on the order page. Locks for a product are generated and updated
on a daily basis based on the stock levels of the product at the source depot. The lower lock is at a default
level of 80% while the upper lock varies based on the stock level at the depot.
For HUL1 and HUL 2 products, locks are available in the following bands directly on your order page
• 80% - 100%: If the depot stock levels are at low levels
• 80% - 200%: If the depot stock levels are at medium levels
• 80%- 500%: If the depot stock levels are at high levels

For HUL 3 products, the locks are based on stock levels at the central depot in Delhi and are available in the
following bands
• 80% - 100%: If the depot stock levels are at low levels
• 80% - 200%: If the depot stock levels are at medium levels
• 80%- 400%: If the depot stock levels are at high levels

Tracking by TSO
Apart from stock report generated through RS Unity, TSO receives NSA, ATP and RS pack wise allocation files
daily. Through these files CVFOT, Loss packs can be found out. As per JBP with RS, average CVFOT should be
more than 85%. If it is coming out less than that consistently, concern should be expressed with ASCM or
supply chain department.
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 These files can also be used for following purposes:
1. Order can be modified based on In-transit quantity at Depot.
Stock Audit by 2. It can be found out if some alternative variant is available for particular short
TSO SKU. (e.g. Dove HF sachets are available instead of DC variant.)
1. A TSO to 3. If some SKU is not available in your servicing depot but excess quantity is
identify 20 SKUs available in other depot of a branch, a TSO can send a request to ASCM asking for the
each MOC that stock in your serving depot.
cumulatively ASCM and supply chain team take care of planning, however, if any dynamic changes
contributes to at are required, TSO can raise requests.
least 30% of RS
Turnover. NMSM Stocks and WoW (War on Waste)
2. He is to then
take down the NMSM
UNIFY system Ideally there should not be any stock lying with RS, which is one of the bases behind
stock of these implementing CRS. However, due to reasons like re-launches, seasonal packs, if any
SKUs. SKU is lying with RS, company controls it through either consumer promotions or
3. He is to redistribution. If stock is lying at RS point 5 months after invoicing date, company
proceed to the takes it back from RS point. Stock would be called NM if last 3 three months
go-down and Secondary Sales (total Qty) compare with current day closing stock is less than 5%. To
tally the maintain healthy ROI of our customer, company mandates NMSM should be less than
physical stock of 10% of closing stock.
these SKUs.

4. At any SKU Stock Audit (WoW)

level there Hygiene is however dependent on the accuracy of stocks reflected in the system. In
should be no order to address the concerns on difference in stocks i.e. actual stocks vis a vis stocks
discrepancy
reflecting in the Unify system, a physical verification of stocks lying with RS as against
greater than 4
the stocks reflecting in the Unify system needs to be done on a regular basis. Physical
dozen units or
Rs. 500 verification audit is required to be conducted every MOC to ensure stock hygiene.
whichever is TSO is supposed to take actions mentioned in sidebar & adjust the stock in Unify.
lower. Should
there be any DSE Stock
discrepancy, A monthly proposal is raised in Unify for damaged stocks (quality and manufacturing
this should be defects), expired stocks and shortages (found in intact CLDs). These constitute the
noted and DSE stock. Damages and shortages which are found at the time of delivery at RS point
brought to the (occurring during transit from C&FA to RS point) are to be raised in Unify at the time
attention of the
of Truck Acknowledgement. These are debited to C&FA. It is very important to avoid
ASCM
immediately
dead investments in DSE goods. So claims should be raised every month. RS cannot
and should be file any claims if damage has occurred at customer point due to negligence. Any
adjusted in damages due to mishandling, improper storage or transit damage from RS to trade
Unify. need to be borne by RS only. RS is supposed to identify damages at the time of
delivery and mention it in challan. However, if it couldn’t be identified at the time of
delivery, the claim should be highlighted to TSO within 2 days of delivery.

9
Permissible Takebacks

Expired stocks: Stocks which have exceeded best before printed on pack. Claim must be raised within 6
months of expiry.
Damaged stocks: All stocks damaged at HUL excluding damages caused due to mishandling.
Quality defects: Defect in basic quality of the product caused without external exposure. (Colour, fragrance,
lumps, loss of viscosity etc.)
Shortages: Packaging defects like shortage in intact CLDs, tubes, packs.

FAQ’s for RS regarding damages and shortages

What do I do if there is there is a mismatch between invoice and physical stock received?
• Record the remark on the acknowledgement copy of Invoice.
• Depot will verify and make good the losses for shortages and send invoices for excess. If excess
are not required by RS, the depot will arrange to pick them back.
* Mismatch between CP and Non-CP quantity is treated as a mismatch.

What do I do if I receive extra stock as compared to invoice?

• Record the remark on the acknowledgement copy of Invoice.
• Depot will verify and send the invoice for excesses.

What do I do if I receive less stock as compared to invoice?

• Record the remark on the acknowledgement copy of Invoice.
• Depot will verify and make good the loss.

What do I do if I receive damaged stocks?

• Ask driver to make good losses.
• If driver does not agree, record the remark on the acknowledgement copy of Invoice.
• Depot will verify and make good the loss.

What do I do if I receive expired stocks?

• Verify the stocks.
• On TSO’s confirmation, depot will arrange to replace good stock.

What steps to take if there are shortages in intact CLD?

• On TSO’s confirmation, raise the same with monthly MOC claims mentioning the Invoice no.
service Depot, Packing date (PKD), Manufacturing code, Shift number (In case of FAL)

10
Timeline for Norms

Date Activity Person

19th/20th Norms for next MOC sent to team ASCM
21st-24th Norms Corrections for new and QOC packs TSO
25th Final Norms file sent to ASCM Anchor
25th/26th Norms file uploaded for all customers RSNet
27th Check whether Norms have changed TSO
27th Escalate if new Norms have not been applied Anchor
Note No other corrections in middle of the MOC

Timeline for Locks and Manuals

Day Time Activity Person

12-2 PM Check Order in order page TSO
2-3 PM Fill locks in reqd format, send to Anchor TSO
3-4 PM Anchor forwards it to planners/rsnet/ASM Anchor
4-6 PM Planners approve upward locks. ASM downward Planner/ASM
5-7 PM RS net makes changes wherever applicable RS Net
Note No locks will be entertained after 4 PM

Timeline for Non-PDP

Day Activity Person

N-2 TSO to talk to depot for Non PDP TSO
TSO to tell RS to order for 5 lakhs TSO
TSO to send mail to depot, RS-Net and ASM TSO
N-1 RS net to open order page RS Net
RS to place order for minimum 5 lakhs+ RS
Note Minimum order of 5 lakhs.

Logic of distribution
General Trade, Modern Trade and Canteen Stores Department are 3 Major distribution channels. MT
allocation is done online and will not be part of logic below. CSD orders have priority over GT and other
generic orders. Logic applied while allocation is as follows
1. Proportionate logic: Allocate stock proportionately for all customers based on total demand and
stock availability. This is applicable to CP packs.
2. Equalization Logic: Allocation happens by bringing all customers to an equal stock cover. This is
applicable to Norm based Normal Packs.
3. Quota Allocation: Allocation is limited to quantity available for constraint packs.

11
Target
arget management by cchannel

Channels are broadly classified as retail and wholesale. The retail Channel can be further divided into:

Family Grocer General Store Small Traders Chemists Kiosks (Sale

less than Rs.
5000)

In wholesale, there would be Vijeta and non

non-Vijeta
Vijeta parties. To differentiate stores for defining service levels,
outlets are classified as Mass
ass Retail, Small Traders, Kiosks and Wholesale. Service levels are discussed in Area
reorganization section.

Figure 1: Channel Overview

Channels in Urban GT
Grocer
It is a permanent,
rmanent, over the counter store of 250+ sq ft and located in an
n urban/residential area.
area Its main use is
for monthly household shopping and top up purchases during the month. It stocks a wide range of fresh food,
packaged food and HPC, grains and general merchandise. The store is well organised, tidy and appears to be
well run. It is independently owned and the shopper has a good rel relationship
ationship with the shopkeeper.
shopkeepe The

12
shopper hands a list to the shopkeeper who picks and packs the products. The shopkeeper is the main
purchase influencer although the store's size and layout allows shoppers look over the counter and browse
the products.

Small Kirana
It is a permanent, over the counter store with area of 50-250 sq ft and located in an urban/residential area,
often of lower income. Its main use is for weekly shopping and top up purchases during the month. It stocks
foods and grains (often unbranded and/or loose) and some packaged goods. It may also sell ‘daily’ products
such as bread, eggs, milk as well as ‘impulse’ lines such as cold drinks and confectionery. The appearance is
basic, sometimes shabby or untidy and usually cluttered with products and packaging. It is independently
owned. The shopper has a good relationship with the shopkeeper who is the main purchase influencer.

Kiosk
It is a permanent (although sometimes moveable), over the counter POP, <50 sq ft and located in a
residential/high traffic area. Its key use is for emergency purchase of products that run out during the month
plus some limited ‘daily’ foods (bread, eggs, milk) as well providing a place for men to have tea, smoke and
socialise. Its main business is in one or more of the following: cigarettes, paan, cold/hot drinks, newspapers,
confectionery. It also stocks packaged goods and sometimes grain for emergency purchase. The appearance
is basic and often shabby or untidy. It is independently owned and the shopper has a good relationship with
the shopkeeper.

Chemist
It is a permanent, over the counter store, between 250-500 sq ft, located in a residential/retail area and
sometimes near medical institutions. Its main role is to handle prescriptions, provide medical bills and give
pharmacist advice. It stocks pharmacy products, PC, nutritional and health products and some household
products. It is neat and tidy, often uses glass shelves for display and has a refrigerator for medicines. It is
independently owned. The shopper has a good relationship with the shopkeeper who is the key influencer
for non-prescription purchases.

Fancy
It is a permanent, over the counter store, 150-500 sq ft and located in a shopping complex or retail market.
Its main role is to provide cosmetics, hair, beauty and PC products for women. It may also stock household,
nutritional and health products and some electrical personal goods. Its appearance is bright and attractive
with many of the products displayed in glass fronted cases. It is independently owned. The shopper has a
good relationship with the shopkeeper who is the key influencer on purchasing.

Wholesaler
It has a Permanent over the counter business. More than 90% of the sales is B-2-B (Business to Business). The
shopper profile is largely made up of local kiosk dealers and smaller urban retailers. In some cases village
retailers may make a trip into the city to get better variety and products. A wholesaler generally had lead
categories where he will look to sell at the lowest prices to encourage footfalls. Most large wholesalers stock
all key categories of FMCG.

13
Channel programs

Importance:

1. Incentivize outlets to keep our stocks higher, load the trade

2. Consolidate our position compared to competitors
3. Be a part growing channels where contribution to business is expected only to rise
4. Promote TLC categories by targeting right demographics
5. Sustainability and continuity of our business

Vijeta: It is a loyalty program for the Wholesalers. The objective of this program is to delight the customer &
increase indirect distribution. This goodwill should also result in greater wholesaler recommendation and
brand push in the trade. Rather than pay out incentives in cash, this is paid out in Vijeta points. Parties can
also get earn bonus points based on their tier. Chemist parties get special discount of 1.6% instead on bonus
points. These stores have quarterly targets and get points basis achievement of these targets which are
redeemed in the first bill of the subsequent quarter. A minimum 50% achievement is necessary to be eligible
for earning points. And if the quarter target is achieved, then the points are doubled for a Platinum party.
Vijeta points are reimbursed at the end of the quarter. Channel is characterized by:
• Maintenance of Channel Outlet Master Tier wise
• PC/Area/Outlet wise target setting & publication in Unify
• Payout-Points redemption by SAP CRM
• Regular Tracker to FF (Twice in week)

Tier Platinum Gold Silver

Eligibility 10.5 L 5.25 L 90 K
Base points 1 Rs. on every 1 Rs. on every 1 Rs. on every
250 250 250
Bonus points 100% 75% 50%

The quarter for the scheme is defined as follows: MQ: MOC 12, 1&2, JQ: MOC3, 4&5, SQ: MOC 6, 7&8, DQ:
MOC 9, 10&11. The enrolment is done 1 month prior to MOC on request from TSO/AE.
Apart from these tiers, outlets having quarter RR <90K are enrolled in Smart Vijeta program, where discount
is given on number of bills and not the percentage as mentioned in following table. There is no limit on
number of bills in an MOC.

Bill Value (Rs) Incentive (Rs)

from to discount/bill
2000 3000 10
3000 4000 15
4000 5000 20
5000 onwards 30
There are around 6000 Vijeta parties in the North branch which contribute to approx. 34% of sale.

14
Better Stores: This is a program for retail outlets. Enrolled outlets are eligible for Unilever premier League
(UPL) wherein a target is set and they get 1% additional margin upon achievement of targets. These stores
are of two types:
Intense: Outlets having large pack sale & Assortment
These stores have paid displays and get a fixed amount per month based on type and number of
displays placed in the stores in addition to the UPL. Under this, 3 things are contracted with the retail
outlets namely -
• No of shelves/windows are rented out exclusively for HUL products.
• In the primary shelf, we are allowed to arrange our products and the competitor’s products such that
the shelf reflects the market share. This helps us as we are the market leaders in most segments
wherein we operate.
• 1% target based incentive in a quarter.

Lite: Sachet sales strong outlets

These stores get 1% margin for rod/arial visibility on the products in addition to the UPL. Under this,
2 things are contracted with the retail outlets and these retail outlets are usually quite small.
• Arial space given for our products.
• 1% target based incentive in a quarter.

ICS (Grocer Next)

As a part of integrated channel strategy, a new channel program ‘Grocer Next’ is being rolled out from MOC 8
2013 onwards. Better stores program will cease as Grocer Next rolls out. In this program, outlets are divided
into Provisional stores, General stores and Food stores. ToT and other details will be mentioned in AE stint
LOB section.

Super Value Stores: These are stores with turnover>Rs. 30000 per MOC. These stores enjoy 2% for sales
target+1% for UPL + payouts for displays. However this concept is largely redundant and only few stores are
tagged as SVS currently.

Anmol: This is a scheme mainly meant for Kiosks whose volumes are too low for percentages to be lucrative.
Hence, these stores are given a flat slabbed discount scheme based on total value of bill. Currently, all DS
outlets are enrolled in this channel. Also, for an outlet to be enrolled in Anmol MOC RR should be less than
Rs. 5000 at HUL level.

Bill Value Incentive

250<500 10
500<1000 20
1000-2000 30
2000< 40

Drugstores: Chemist outlets with PP sales > Rs. 10000 per month are eligible to be enrolled as drugstores.
They are of three kinds as follows:

15
 1) Target: These stores get 3% additional margin upon achievement of target
2) Lite: These stores get a fixed payout for the displays installed plus 3% on achievement of target
3) Intense: These stores get 4% of installed displays and an additional 3% for target achievement

Other smaller chemist outlets tagged as pharmacy get bill discount as per Anmol scheme.

Fancy: Store that stocks Cosmetics, Jewelry & Gift items which sells large assortment of PP SKUs and located
in high footfall zones are enrolled in this program. Types and payouts of Fancy channel outlets are as per
table below:

Type Intense Lite Star

Turnover pm 10 K+ 5 K to 10 K <5 K
Visibility elements Window + Plano gram No No
Fixed Rental 300 or 200 per window No No
Target Linked payout 3 to 5% 3% Exclusive OPS

Channel Target Setting

1. UPL
The logic for UPL targets for SQ is given below. These targets have been computed on the existingUPL MQ
2013 Base.

Calculation: (1.10 *Non SVS 2% FY 2012 Growths*Non SVS 2% Contr.) + (SVS 2% Contr.*
SVS 2% FY 2012 Growths)
• Any area with 0% <Growth < 5% growth has been given at-least 5% growths
• Any area with 5% <Growth < 10% growth has been given at-least 10% growths
• Any area with > 30% growth  Logic is the same, the base growths used are those of the branch.

2. Drugstore
The principles for arriving at the targets on the Drugstore (Chemist + Fancy) for the PP ASM’s are as under:
• Gap in 2012 State Market Share for PP Categories (Skin, Hair etc) – Chemist/Cosmetic Shares and HUL
Shares has been considered
• 2012 secondary sales growth data for each state and growth after deducting outlier impact has been
calculated
• Pick up factor for growth rates has been arrived at as the difference between Nielsen reported
growth and Internal growth (excluding outlier growth)
• State-wise growth needed to maintain Share Growth target has been computed
• Growth Targets basis market growth & market share gap have been arrived at for each state
• The final targets have then been computed by balancing skews of stretch across different areas

Role of a TSO
Through different payout and discounts, company makes an investment in these channel programs. In return
we expect outlets to keep our stocks higher. Some of the channels are on a growth trajectory and their
16
contribution to our business is expected to rise with time. TSO should make sure that right SKUs are available
in right quantity at these outlets. Targets should be communicated to the outlets and should be tracked with
every order. For an RS, depth and width both should be tracked regularly while giving trackers to the field
force. Outlets with channel programs (apart from Vijeta) have large headrooms and potential to grow, TSO
could help to unlock that potential.

Other Promotional Schemes (OPS)

To incentivize shopper company runs CP (consumer offers) whereas to incentivize traders, OPS are run by the
company. It helps HUL since trade would stock up SKUs with OPS running on it. Generally, for class A SKUs
regular OPS are run and for class B and C, OPS are run intermittently.

STPR
Objective: Increasing the sales temporarily for Q2 and Q3 packs, continuity for Q1 packs. It varies MOC wise.
To push the agenda of that MOC.
Logic:
1. To handle the competition or to match Competitor’s promotional schemes
2. To increase the sales of skus that are performing below expectations
3. To incentivise channel partners to keep launch packs
4. Increase the market share of skus like VWD packs
This is extended by the RS to the Retailer and then claimed from the Company. This is deducted from the
current bill to outlet from RS. This is not included in the Invoice from depot to RS.

PPR
Objective: To keep the scheme for longer period.
Logic:
1. Only when scheme is required for long time to change the trends in the market
2. To match the competitor’s pricing
This is a reduction in the primary price for a product. This is done at the Invoice level from depot to RS

BTPR
Objective: To increase the variety/assortment in the shop. It can be bundled along with SKUs of the same
brand or category.
Logic:
1. To increase overall sales
2. To incentivise retailers to keep slower moving SKUs (e.g. Pond’s facewash scheme)

Slabbed STPR
Objective: To increase the bulk ordering behaviour, Discount would be different for different slabs.
Logic: For higher margins, retailers/wholesalers tend to buy higher quantities.

QPS
Objective: To increase the overall sales of a particular SKU over a longer period, Special discount on
cumulative purchase over the period. If the outlet purchases a particular number of CLDs/units of an SKU,
then it is more economical for RS.

17
Logic: To incentivise retailers/wholesalers to order higher quantity but not just in one go like slabbed STPR
This scheme is applicable upon achieving a set target for the product in the given MOC and is deducted from
the bill in the subsequent MOC.

MM Plan
Objective: It is a micro marketing plan to give higher discount to higher value contributors.
Logic: To incentivise high value contributors so that they purchase from their designated RS and to upstock
our products when compared to competitor’s products.
The beneficiaries of the scheme are decided at the branch level. They receive their applicable discounts is
subsequent months.

Coupons
There are two types of coupons Schemes: Trade Coupons and Consumer Coupons. In case of Trade Coupons,
Outlets are given coupons on defined purchases which they can redeem back. In case of Consumer Coupons,
The end consumer has to redeem the coupon / Wrapper / Newspaper cutting from the outlets which are
reimbursed by the company in return.

18
RS architecture and profitability
Redistribution Stockistss are our customers and joint business partners. Maintaining a healthy ROI for every RS
is a joint responsibility of HUL and RS owner. It can be considered as a standalone firm with specified
responsibilities and hierarchies. RSs at GTM towns have more professional set up, h however,
owever, at other places
they are likely to be traditional family owned businesses.

The role of a RS with HUL is to deliver outstanding growth through exceptional execution thereby serving
HUL’s brands and customers in his assigned geography. This is achieved throug
through

• Leveraging the scale of HUL and delivering optimum coverage for all HUL pricelists
• Channel based Servicing for all outlets
• Selling in optimum assortment in every outlet
• Ensuring market hygiene through regular cleanup of damage & expired stocks as per HUL policy

Processes & Structure

Recommended RS structure is as shown below. Depending upon the scale of operations team and positions
may increase or decrease.

TSO AE
RS

Operations
Team Leader
Manager

Transport
Gowndown
IT incharge/ team (vehicle
Keeper and RSSM Merchandisers
Office Staff drivers and
Loaders
delivery boys)

19
Infrastructure
Infrastructure of RS has following components and costs involved.

Infra

RS point
RSSM Logistics
structuring

Recruitment Beat
Stock
and selection Planning

Training and Delivery Manpower

motivation system and systems

Fixed salary
Transport Godown
and incentives

Perfectt Customer Program

JBP and CDT together form the stepping stones for the Perfect Customer program. These RSs get added
recognition apart from CDT payouts and tier benefits. Perfect Customers enjoy the promise of Business
Continuity and an all expense paid International Holiday.

Joint Business Plan

Our Joint Business Plan (JBP) mandates inputs from both RS and HUL:

• A set of HUL deliverables necessary to aid customers in their business and achieve defined objectives.
• A set of deliverables for the RS,, which will help maintain the involvement, investment and infrastructure
needed for superior business performance from a customer

HUL Deliverables RS Deliverables

Cleared DSE Claim Max. 7 days Hygiene + Infra Scorecard
NMSM at RS < 2% of stock Non stock loss
Primary CCFOT Min. 85% 3G sit fill
Primary SLA LeverCare Secondary SLA LeverCare

RS has to be compliant on 3 out of 4 deliverables for the quarter to be classified as compliant for the quarter.
quarter
A RS who has satisfied the criteria for all 4 quarters are considered JBP compliant for the year.
year

20
The Customer Differentiation Tool
The Customer Differentiation Tool (CDT) program aims to reward RSs who show good results in achieving
sales as well as consistently deliver on execution parameters. It includes variable component for otherwise
fixed margins of non GTM RS. It encompasses all 4 Rs of expectations:

Reward

Recognition

Relations

Repeatability of business (Continuity of business)

Quarterly Performance Evaluation:

– Every RS will be evaluated on various parameters (as per CDT matrix) every quarter
– There will be variable payouts which will be given on the basis of CDT score for NGTM and Rural RSs
– For GTM RSs, payouts are incorporated as part of TTS

Annual Performance Evaluation:

– RS annual performance will also be evaluated by averaging quarter performance scores.
– RS annual privileges can be enjoyed on the basis of relative Performance ranking.

Membership Tier:
– RS current membership tier is based on performance in 2012 and will be in effect until December 2013.
– RS will enjoy the privileges of 2013 tier throughout 2012
– A RS needs to be operational for at least 3 quarters in a year to enjoy annual benefits

Scorecard Matrix (Urban, North Branch)

(If RS does not do HUL 3 business, 10% weight would be proportionately distributed among rest divisions.)

Sub Source of What is the

Axis Parameters Wtg Scores
Parameters Targets/Ach target?
Dets 15% MOC wise
F&B 25% targets. Score
>101.5%: 5
Sales PP 50% for each MOC
Sales BIW >99.5% -101.5%: 3
60% and then
<99.5% : 0
HUL3 10% average to be
taken
Dets 10% >100% Ach: 5
Bill As Per Defined
F&B 10% BIW 90-100% Ach: 3
Productivity Norm
Execution PP 10% <90% Ach: 0
40% Numeric AL Dets 15% >100%: 5
As Per Defined
Perfect Foods 15% BIW 90-100%: 3
Norm
Stores U2 40% <90%: 0

21
Quarterly payout based on CDT

Score Non GTM GTM

4.5-5 0.15 0.2
4-4.5 0.1 0.1
3.5-4 0.05 0.05

Annual Tier

As per normalized raking of annual score, Tier benefits are given to the RS for 1 full year.

Top %le ranking GTM Non GTM Non GTM

Tier T/O MOC RR > 75L T/O MOC RR < 75L
Platinum 15 % 7.5 % 3%
Gold 30 % 30 % 22 %
Silver 42.5 % 45 % 50 %
Blue + 10 % 12.5 % 20 %
Blue 2.5 % 5% 5%

North Branch Area Comparison

CDT score is a part of 3+1 for ASCM. Maintaining average CDT of 3.5 for all the RS in area is a developmental
goal for them. Below table shows areawise CDT score (Urban) of north branch in MQ 2013. It can be
observed that some areas are strong in one part (either sales or execution) of the scorecard and needs
improvement in other part.

22
GTM Customer
The 5 underlying principle of GTM customers are as follows -

1. RS Align: Each RS would be having all the PCs and thus one outlet would be serviced only by 1 RS and not
by multiple RSs.
2. Front End: A third party called manpower is used to hire salesmen. This helps in curbing the attrition rate
which otherwise would be very rampant.
3. RS Organization: The employs of RS like operations manager, MIS manager, etc were put on the payrolls
of manpower.
4. TTS (Trade & Terms Structure): ROI of 22.5% is fixed and the margin is calculated accordingly assuming
certain turnover based on historic data.
5. ZIP: The zero inventory model helps to reduce the investment and also at the same time ensures that the
RS is capable of handling large assortments.
Apart from CDT payout, GTM customers can get Market share gain payout. This would be over and above of
CDT payout.

 Quarterly target is locked centrally and agreed by the lead branch RSM
 Share gain growth payout is independent of MOC targets or execution performance
 No exceptions will be granted on these numbers
Payout would be as follows:
100% of agreed incremental target : 0.30%
80% of agreed incremental target : 0.20%
60% of agreed incremental target : 0.10%

Return on Investment of RS
ROI is a measure of efficiency of operations at RS point. We consider it to be healthy if it is within the range of
20 – 30%. ROI should not be above 30%, high ROI could mean that the infra requirements have not been
fulfilled and there is a scope of improvement. Whereas, low ROI could mean there is either operational
inefficiency or very small size of customer.

Calculation of ROI

 −  

 =
  

• Net Profit = Gross Profit-Expenses

• Net Investment = Total Investment – Cheque Encashment Time
• Rotation = Turnover/Net Investment
• ROI = Rotation * Net Profit
Net Profit, Gross Profit and expenses are expressed in terms of Percentage of Turnover.

23
Cheque investment time is taken as the turnover for the time between depositing and collection of a cheque.
Turnover & Total investments are taken in terms actual value.
ROI depends upon both quality of funds and quantity of funds. Recommended Debt:Equity Ratio is 30:70. It is
important to have debt component because:

• Less borrowed funds for higher flexibility in future

• Higher equity shows financial strength
• Own investment reduces interest outflow

Quantity of funds
Quantity of funds depends upon growth projections and market potential. Plus, RS has to make investment in
3 parts in his business
1. Stock Level
2. Credit in the market
3. Claims with the company
HUL has provided guidelines to equip RS to manage his business in better and optimized way.

Stock Level: How the stock levels and order bookings are managed is discussed in the first part of the
document in the section of stock control. Furthermore, closing stock levels might be higher than desired due
to

Possible reasons:
1. NMSM stock might be higher leading to higher closing stock.
2. Stock audit hasn’t been done in long time leading to the difference between actual stock and Unify
stock.
3. Damage/expiry claims aren’t done regular leading to higher stock in damage godown.

Actions:
1. TSO should do prompt stock audit (WOW) and settlement of claims
2. Norms of slow moving SKUs need to be checked.

Credit in the market: Company recommends that credit for W/s should not exceed than 14 days and Retail
Credit is to be kept lower than 7 days. Higher credit in the market might reduce the ROI

Possible reasons:
1. Credit collection system of RS is not effective and it needs to be improved.
2. Very old credits that should be written off by now are still considered in the calculations.

Actions:
1. TSO should monitor closely credit collection of RS. He should warn him if credit becomes very high in
the market.
2. While calculating ROI, TSO should use Bill age report to find out credits that are pending from long in
the market.
24
Claims: It is the value blocked at the company in claims (should be taken at average). It is generally about a
sale of 1 day. TDP wise claim reports are generated to find out average claim over the month.

Costs for RS

Costs

Distribution Operating
Salaries Discounts
Cost Cost

Salaries: These costs can further be divided into front end and back end process costs. Number of salesman
required and beat planning is explained in detail in Area organization section of the document. Team leader
and operations manager are required to be kept in accordance with size of the RS. In back end processes
manpower requirements are accountants, computer operators, godown keepers, loaders, drivers, delivery
boys etc. Following guidelines are provided for number of people required:

• Unify Operator should be in the ratio of 1:10 of RSSM

• One Cashier for Monthly TUR of less than 3 Crores
• One Godown Supervisor for every 2.5 Crores
• The Number of loaders/unloaders in the godown can be calculated using 1.75 tons per person per
day capacity
• Excluding the driver there should be a maximum of two people per vehicle as loader/unloader

For GTM towns salaries are decided by third party in accordance to the company mandates. For non GTM
towns RSs manage their own fixed salary and incentive part, however, TSO can make sure that manpower
gets the reasonable salaries.

Distribution costs: Manpower requirements in distribution are discussed above. RS can do his own vehicle
management by either hiring vehicles or through owned vehicles. The key decision to be made here is around
owning vehicles as opposed to renting a fleet or having a mix of both. There are two options of ownership
mix that can be explored.

1. A mix of own fleet & hired fleet – RS owns fleet of delivery vehicles required for fixed/ average
requirement & hires only for variable requirement.
2. Completely hired fleets – RS hire all the vehicles through an agent & has no own fleet. The contract is
between RS & agent. The RS is entrusted with on-time delivery to the market.

Dets being voluminous in nature may require of higher load carrying vehicle. Other categories have high
value but low volume items. However, depending on volume in a given beat the RS can also use variety of
vehicles. Also, for efficient delivery system RS should have a Delivery PJP for all vehicles. Each team of Driver
& delivery boys & their performance should be reviewed every Month. Review should involve

25
 • No. of bills delivered
• Hours taken
• % of return
• Taking damage as per list
While calculating distribution costs in ROI, if RS owns fleet depreciation should be added to the variable cost
of fuel and maintenance. Generally, life of vehicle is considered as 10 years from the date of purchase.

Operating costs: It includes costs of godown, systems, equipments and office infrastructure. Following are
the guidelines for godown management. For one time investment items, appropriate depreciation has to be
considered while calculating ROI.

1. Godown Management
Godown for the most efficient service to the market needs to have the following areas in it
• Storage Area
• Segregation Area
• Staging Area
• Parking

Storage Area: Storage space required for godown can be calculated basis on the category wise turnover and
number of PDPs. Relation between the average number of days of storage and number of PDPs is discussed
in first section of stock control.

Table below shows space requirements for an RS with 3 PDPs

Category Space Required (sq. Ft/tonne) Space Required (sq. Ft/Lakh of T/O)
Detergents 35 75
Foods 18
PP 45 60
Huggies/Kotex 65
CPD ( Culinary Product Division) 21 125
Beverages 45 88
HUL 3 Colour 30

Segregation area: This space is needed to segregate the loose SKUs. This is taken as 12 sq. ft / vehicle
dispatched.
Staging area: This is the area required to keep the goods prior to loading on to the vehicle. It is calculated on
the basis of area occupied by a truck load and the no of trucks dispatched. Thus, with the said assumptions,
the total staging area is 400 sq.ft.
Parking area for vehicles: If delivery vehicles are going to be parked in the warehouse prior to loading, then
we should incorporate the same into the space requirement basis the vehicle type employed.

Total warehouse space = storage space + Segregation Space + Staging Area + parking space

26
 Additional Guidelines
Role of TSO in
• 200 sq ft should also be considered for damaged location
improving ROI • 6 to 7 Steel racks are required for Loose stocks
• 500 -1000 sq. ft for Office Space
1. Proper MOC
• Additional 200-400 sq ft for Party packing where practiced
Planning –
Certain Principles are followed for deciding the location of godown, the same is
Stocks on
replenishment mentioned in Appendix 1.

2. Beat &
2. Systems and Equipments
logistics
IT tools are backbone of our systems. Following tools are required as RS point
planning
• IT hardware required for office based operations
3. Prompt stock • Hand Held Terminal (HHT) for front end execution
audit (WOW)
• RS Unify mini ERP package software
and settlement
of claims
Guidelines
4. Close • Upto 2 Systems for 75 lacs of Turnover
Monitoring of
• 3 to 4 systems are required for turnover above 1.25 cr
Credit and
• HHT terminals for each RSSM plus few spares
Discount in the
market
3. Office infrastructure (For an RS of 50 L)
5. Optimum
utilization of
Infra Element Quantity Infra Element Quantity
infrastructure
Water Purifier 1 UPS 1
6. Training the Computer tables 3 Dot Matrix printer 2
RS to manage Computer Chairs 6 Optional Infra
his business Laser Printer 1 Filing Cabinets 8
Fire Extinguisher 4 Sitting Conference 2
7. Leading and
Table
Training his
Ethernet Switches 1 Safe/Lockers 2
team
Wi Fi Router 1 White Boards 2
AC 1

Discounts: Depending upon the market, RS may need to give cash discount or discount
to wholesalers for bulk booking. However, higher discounts may lead to lower ROI.
Hence, RS and TSO should check and monitor credit given in the market. Wholesalers
may use the credit to increase their returns which would hamper RS ROI. It should be
made very clear that any discounts if at all given are with the conditions of quick
payments and higher turnovers. Relative Margin & Credit should be inversely
proportional and need to keep so to maintain hygiene in the market and get better ROI.

27
Comparison of RSs
I’ve compared the performance of RS RSs under all cost heads where I worked during TSO stint. This exercise is
done to find out as to why ROI of a particular RS (Farooq) is very low compared to others. Possible reasons
for higher investment than desired
ired and what actions TSO/RS can take in stock level and credit are discussed
in above section. Cost side also needs to be optimized since through analysis of HUL guidelines it is found that

1. Stock level and credit in the market are not optimized.

2. Number of salesmen is way more than required. (7 more than recommended)
3. There seems to be an excess manpower at every department (office manpower,, distribution
manpower)
4. Discounts are very high compared to other RS. Relative Margin & Credit needs to be inversely
proportional.

What actions a TSO can take to improve ROI of his RS are mentioned on above page in sidebar. With the
optimization in manpower as per HUL guidelines and keeping discount to 1%, ROI of 27.2% can be achieved
at Farooq Traders increasing from current 14%
14%.

Difference between GTM infra and non GTM infra:

GTM Non GTM

Margin Customised ‘TTS’ to account for unique 5% on cost

Structure costs of front end and back end

Inflationary towns/ Metro and Mini Metr

Metro Other than metros and
Town Profile towns. Eg. Pune, Mumbai, Rajkot, Indore, key inflationary towns
Raipur, Nagpur etc. Eg. Vapi, Amravati, etc.
Investment in Low - Thin stock covers, amounting to less High - Stock cover amounting to 7-10
7
Stocks than 2 days at any given time days worth of sales
N+2, Where N = day of order collection N+1, Where N = day of order
Servicing Model
collection
Processed by Manpower - Minimum Salesmen on RS Payroll
Salesman Salary Wages, Benefits of PF, ESIC and Annual
Bonus

28
Area reorganization (Beat Plans)
Beat plans for order booking are based on following factors
• Geographical location and cluster of outlets
• Type of outlets
• Basis turnover and assortment size of each pricelist in each store
• RSSM service level matrix
• Visiting frequency for different Beat type for each of the 3 pricelists (Dets, F&B and PP)
• Channel program outlets in an area

Beat type
The Beat Type field has the Beat type for all the 3 pricelists. Format of the beat type is “A-B-C”, where
– A – Dets Beat type
– B – F&B Beat Type
– C – PP Beat type
Eg – if the Beat type of an outlet is MR-MR-ST, then it an MR outlet for Dets, MR for F&B and ST for PP

Principle for beat type

Beat Type Dets F&B PP
Kiosk If HUL Qtr Turnover < 4000 and Everbilled < 40 Lines
ST All Non Kiosk, but Qtr turnover for either Monthly T/O <1000 &
Dets or F&B is < 1000 & Eb < 10 Lines EB<10
MR All Non Kiosk, Non All Non Kiosk, Non ST All Non Kiosk, Non ST
ST outlets outlets outlets

Service level Matrix

Beat Type Number of servicing RSSMs
Dets F&B PP
MR-MR-MR 1 1 2
MR-MR-ST 1 1 1
ST-ST-MR 1 2
ST-ST-ST 1 1
KK(Kiosk) 1
WS(Wholesale) 1 1 2

Visiting Frequency and beat size

Channel Wholesale Mass Retail Small Traders Kiosk

Recommended visits per month 8 4 4 2

Beat size 15 25 30 30

29
The Procedure for calculating the No. of Salesmen required is as follows

• Define sales beats (No of stores & type of stores for each beat)
• Define the frequency of the beats (Suggested frequency as given)
• Factor in the no. of working days (6 as the default)
• Assign beats to RSSM (1 beat per RSSM per day)
• Calculate the total number of beats on the basis of total number of stores and the number of stores
per beat.
• Calculate the total number of RSSM as per the total number of beats being covered.

Delivery beat Planning

All vehicles at RS should have permanent journey plan (PJP). Route planning is the process that helps
determine which route is to be followed by the delivery vehicles once they leave the RS premises. The
objective is to sequentially map the path to be followed by the delivery vehicle in order to minimize transit
time and increase delivery efficiency. The process is dynamic which may need to be revisited every couple of
months. New Stores, Traffic Regulations, size of delivery are some of the factors responsible. Also the beat
plan should ensure enough space for the delivery boys and sorters to arrange the goods as per the orders.

Suggested procedure for crafting delivery beat:

1. Analyze the sales beat
2. Arrive at average no. of stores that can be covered per day
3. Club 2-3 sales beat so that
• They are adjacent to each other
• No. of stores is less than or equal to average number of stores that can be covered per day
• Aggregated load for the beat is less than/ equal to payload of the vehicle
• Delivery within prescribed norms of n+2 days is ensured
Schedule adjacent beats on consecutive days. It helps in covering the shops missed out the previous day.
4. Order of visit to shops
• Practical constraints like traffic jams / no entries / one ways
• Shop owner availability
• Shop closing time
• Busy hours at different shops
5. Review route plan once in 2 months to assess efficacy of existing beats

Party packing: It refers to customized packing of all goods in a bill. The SKUs are packed according to the bill
so that segregation need not be done at the delivery outlet. At most of the places, items are sorted out party
wise during actual delivery; however, for some beats party wise packing at RS point itself is more beneficial.

When to practice party packing?

There are two instances where party packing is practiced:

1. In PP category so as to manage large range of SKUs as this makes it difficult to sort in transit

30
 2. In W/s channel load per outlet is fairly. This allows the truck to be loaded such that all the goods for a
particular shop can be stacked together in a vehicle, generally, separated by a cardboard.
Prerequisites for party packing
• Enough space and manpower at the RS Point
• Delivery packet/ medium (box or polythene packet) or cardboards to separate
Benefits
• Faster deliveries; More no. of correct deliveries
• Lesser theft/Damages
• Faster Unloading; Lesser dependency on delivery team

Execution: Understanding assortment selling

Perfect stores
Concept of perfect stores is HUL’s way of execution underlying that it is way to get right quantity/amount of
sales at right time in the right outlet with the right quality of execution. The Perfect Store is a store where
the relevant assortment is available. Concept is very important for HUL for

• Continuity and sustainability of business

• Growth of business

Benefits of perfect store

1. For retailer:
• Right quantity at right amount at right time, reducing his investments in stock, higher ROI
• Higher profits due to range selling
• Better replenishment reducing space requirements
2. For HUL:
• Primary benefits are growth and sustainability
• Range selling, more variety in the outlets, hence better visibility
• Better position compared to competitors, higher market share
• Higher confidence shown by retailer since more rotations of HUL products
• Can focus on TLC categories
3. For RS:
• Expectation setting for him and his team
• Higher sale, business continuity, economies of scale
• Lesser NMSM stocks, higher rotations, Better ROI

31
A perfect store consists of 4 dimensions as shown. (Depth packs have not been published yet)

Dets Foods PP
Assortment Targets basis as per table below
Red Lines 80% 80% 80%
Width Packs 70% 70% 70%
Business Mandates 80% 80% 80%
Depth Packs 55% 55% 50%

Assortment
Assortment is the set of HUL products which the outlet sells. If a pack has been sold in that outlet in the past,
it is considered a part of the ever billed/Assortment of that outlet. Assortment helps to focus on range selling.
It ensures that variants are available and also different sizes, thus helping to get the growth.

Logic
Time period for Historical sales: The time period for most of the packs is Last 6 MOC’s while for seasonal
packs (where the outlet might not have bought it in the last 6 MOC but should be part of the ever billed of
the outlet), we take data of last year same quarter.
RR for a pack in an outlet: Post identifying the ever billed/assortment for an outlet, we also calculate the RR
(running rate) of that assortment line for that outlet. The time period used to calculate the RR is the last 6
MOC for most and last year same quarter for seasonal packs. RR defines Suggested Order quantity.
Turning Assortment line Green: The RSSM will see the entire Assortment for an outlet in the Quantum. With
every assortment line, there will be a Suggested order. If the RSSM sells more than Suggested order for a
pack, that assortment line is achieved and it turns green.
Suggested Order: Every line item of assortment has a suggested order published. This suggested order is a
function of the RR of the outlet.
There are different logics applied while calculating suggestive order. But the fundamental logic is following
formula
Indicative Stock = LP – [(Gap+0.5)*Run Rate]
LP  Last purchased quantity
Gap  Number of months/weeks since the SKU was last billed
0.5  Buffer
Run Rate  Average sales based on RR basis
If this value is negative, the outlet is likely to run out of stock for the product.

Logic 1: For faster moving skus - Retailers are supposed to keep stock of 10 days,
thus SO=RR/3 considering 3 TDPs.
Logic 2: For slower moving skus – It might be sold once in a month, thus SO=RR.
Logic 3: For IQ width packs, sale of surrogate packs would be considered. It would turn to 0 after the order.
Logic 4: SO would be 0 for the remaining MOC if a new sku is billed from other packs.

32
Replenishment targets based on outlet type is given in below table: These targets need to be achieved to
make a store perfect.

Beat Type Pricelist Group

HUL D+F DETS FnB PP
MR-MR-MR 55 50 43
ST-ST-MR 50 43
MR-MR-ST 55 50 40
ST-ST-ST 50 40
Kiosk 40
Wholesale 45 40 35

Red lines
If the Closing Stock at an outlet is less than 15% of that Basepack’s Run Rate than it can be considered as a
red line. It ensures focus on low contributing SKUs because they are often missed out in a call. Making them
red line ensures they are billed in that outlet. It also improves outlet stock availability and reduces Out-of-
Stock. Red Lines are published twice in a month. Low red lines/assortments achievement in the previous
MOC’s means the red lines target will increase in the upcoming MOC’s.

Logic
Red line prediction is a function of availability (Closing Stock) & Demand (Run Rate) of basepack at an outlet
Closing Stock = Opening Stock + Basepack Sales – RR * (No of Days since last ordered/30)

Run Rate is calculated based on the average of the last 6 MOCs sales.
Run Rate = Average of Last X MOC Sales (X is the no. of MOCs starting from the first sale up to the most
recent MOC in the time frame of 6 MOCs)

IQ Width
These are the focus packs to ensure that correct packs are sold in correct outlets. These are published based
on market gap and surrogate packs. O/Ls wise pack recommendations and SO ensure better reach to the
outlet while providing incremental business to us.

Logic
Width packs are published after lot of data mining. Steps involved are market basket analysis, association
with surrogate packs and 4 filters namely category, brand, premium and large. Only outlets meeting all
conditions and filters are published with IQ width packs.

There is difference between achieving assortment SO and IQ SO for an outlet as to covert an assortment line,
the suggested order needs to be billed in one bill while to convert a width pack the suggested order needs to
be billed over the entire MOC.

33
Business Mandates
New launch and re-launch packs are published as BM Packs. All SKUs launched in recent 6 MOCs and have not
been sufficiently replenished since by the salesman appear as Launch Pack lines.

Logic
These lines will be published in outlets where it meets all the following conditions

1. Estimated closing stock is low/zero (basis logic similar to Red Lines)

2. No sale happened in the previous 30 days (last MOC)
3. Sale for the brand/category to which the launch SKU belongs is high in the outlet, to ensure only key
and relevant outlets are picked up for sustaining the launch (top 50% outlets by Brand/Category
contribution)

Depth Packs
As of MOC’08 Depths packs has not been published yet. Going forward, promoted packs will be published as
Depth packs task for the outlet for Retail Channel. Suggested Order for the pack will be the RR of the outlet
for that pack, the RSSM gets the entire MOC to achieve the SO.

Logic
Pack will be published as Depth pack if it meets following three conditions:
1. It is a part of the outlet’s everbilled.
2. It is an A class pack for the outlet.
3. It has an OPS running on it.

Wholesale perfect stores

Wholesale store can be made perfect by selling assortment only. No other lines are published for wholesale
stores. For Dets and Foods, target is 40% and for PP target is 35% of ever billed lines. Also, Wholesale stores
are part of target for Numeric Perfect Stores but will not be included in Value through Perfect Stores
calculation.

RSSM Service level

Perfect day
It is a measure of the quality of servicing done by RSSM. It is highly granular since it’s a Day level
measurement. It measures regularity and assortment selling skills of a salesman. Concept is aligned with
Perfect Stores, as the RSSM in measured on his daily delivery of PS tasks i.e. Assortment, Red Lines, Width
packs and Launch Packs. It is a QOC parameter for TSO currently. Target for RSSM and TSO is to have 65% of
Man Days to be Perfect Days of his area.

Perfect day computation

Perfect day tasks = 25% of total Task targets (Assortment target including RL + WP + LP) for a Beat to be
delivered each Day. If pending tasks are less than 25% of total, then target is the balance and not 25%. If a
particular day is coming 5 times in a month, 20% of total tasks get published for PD achievement.

34
Possible Reasons of low PD
• RSSM is not spending enough time in the market
• RSSM is not focusing on range selling
• Beat contains very large number of stores that is very difficult to serve in a day
• RSSM is not using HHT, taking orders manually
• Salesman – beat linkage is changed in middle of the MOC

FOS and EFOS

It measures if a salesman/merchandiser has worked thoroughly in the market or not. It is very important
parameter to make sure that RSSM is putting enough efforts and hours in the market. RSSM can make a day
perfect by selling enough assortments in few outlets and leaving outlets with less number of lines. He, thus,
can achieve all the targets without putting enough efforts. Hence, FOS/EFOS becomes an important tracker.
This number would tell us the number of salesmen who are actually working as against the number who are
enrolled in the system. FOS is calculated by noting the time gap between the first entry call in a day and the
last closing call of that day of a salesman. FOS is achieved if the time gap is greater than 2 hours whereas it is
not achieved if the time is less than 2 hours. This parameter however does not talk of the efficiency of
working. These parameters can be checked on SAP page.

Efficiency (EFOS): If the above measured time gap is greater than 4 hours and if the number of calls made by
the salesmen is greater than 10, the salesman is considered as efficient.

Possible reasons of low EFOS

• There is no expectation setting for RSSM, they are not working for required number of hours
• If PD is being achieved with EFOS, it means RSSM is completing his tasks by visiting few outlets and
selling range in those outlets
• RSSM is not using HHT, taking orders manually
• Beat contains less than 10 stores
• New beats added in middle of the MOC

ECO and Unique ECO

Unique eco is number of outlets billed at least once in a quarter. Eco is number of outlets billed at least once
in a month. This parameter tells about the coverage of RS and if RSSM is billing all the outlets are not.

Bill productivity
BP is the number of bills made at RS in a MOC. BP targets are mentioned as below. This parameter ensures
that stocks are replenished regularly and RSSM service levels are satisfactory. This parameter is part of CDT
also.

Mass Retail Small Telecaller

Parameter Stores(MR) Trade(ST) Covered (DS) Wholesale
Bill Productivity/MOC 3 2 2 2

35
 Linkages in WPG
To make sure that all the execution parameters and sales components are covered
TSO and RSSM under WPGs of the CD team linkages between all of them are made based on the
training work responsibilities. The following figure shows those linkages making them little
complex, however, ensuring that all the strategic objectives are met.
Every RSSM
should undergo
through following
trainings.

1. Classroom
Training

2. On-The-Job
Training: Working
along with an
experienced TSO

Tasks of TSO

1. Identify bottom
boxers and put
disproportionate
focus into
working with
them.

2. Check Beat
RSSM Training
allocation: Right
RSSM are front end of the company. They represent HUL for the trade. So, it is very
person in the
important to train them in every aspect of interaction to have a reflection of HUL the
right beat
way we want.
3. More Market
Contacts : On the Role of a TSO in RSSM training is mentioned briefly in sidebar. He also should:
job training • Drive Incentive effectiveness
• Use Non-Monetary forms of motivation as well
TSO can have • Build a sense of team and joint ownership
greatest impact
on his RSSM team Basics of sale
through personal Basics of sales, a salesman should know/have
development in Product knowledge
the market. Categories we operate in, features and benefits of the product
• Trade briefing folders -Must use at every call
• Physical sample-Must carry all new launch/re-launch packs
• Launch pocket card - For clarity on TUR/MRP.
• OPS Card –Net Rate specially categories like Deos
36
Sales Process steps
Planning: Before
efore going to the market check if HHT is charged and correct beat is loaded;
loaded ensure to have
target
arget for the day, based on beat average & MOC targettarget; Product samples; Scheme details;
details Target sheet of
Vijeta and SVS Outlets with balance to do; Credit list

Execution: During market working Visit 100% outlets; Use HHT recommendations for selling;selling Call out all the
skus as suggested by HHT; Focus on selling packs with schemes
schemes;; Focus on range selling; Focus on selling packs
which have paid visibility
ty in the outlet
outlet; Collect damage and expiry stocks from the outlet.
outlet

Review: After working the market check Status of value achievement against target; target Status of FCS+
achievement; Plan for Balance to do
do; Plan for outlets which were closed or could not be visited.
v

RSSM is supposed to follow steps while visiting the outlet. These steps are explained in detail in Appendix 2.

Points to remember

• SGROWTH- Booking without HHT is an offence

• IQ –Start
Start booking from categories like DMT/HUGGIES
• For a RSSM every ry day should be PD
• Competition linkage / Street smartness in doing call
• Efficient Use of price list
• Use of CP to block competition/Logical allocat
allocation
• Using large
arge packs cleverly like Dove //Sunsilk 700 Ml./Huggies large packs
• Use of all variants /Packs
ks of PCS/LCS iin shampoo as well as conditioners
• Imposing monetary clarity (Selling of DEOs in depth by giving benefits clarity of scheme )
• With Availability-Focus
Focus on Bill value ,very crucial for 2B RSSM
• OPS –Communication –Effectively/Clearly
Effectively/Clearly

Customer Knowledge

• Location significance
• Understanding
erstanding out let type/channel
• Main person dealing
ealing in principle categories
• Business potency

37
Recruitment & Selection
Recommended hiring mechanism is through reference of an existing RSSM since it provides a background
support and acts as guarantor. The candidate should preferably be 12th pass or have relevant experience.

Other Hiring methods that can be employed:

• Newspaper ads
• Self-enquiry From the Market/competition
• Promoting Delivery boys

Process after recruitment

1. Collect Guarantor letter and address proof : This ensures safety and prevents money collection loss
2. Training
• Godown training for one week to understand all the SKUs (can be done along with the sales
training)
 SKU list should be provided
• Market Training with an experienced RSSM for a period of 2 weeks
 Ideally spend a week in each PC
 Explain the loyalty programs for different type of O/Ls
• HHT training must be given at the same time when in the market
• TSO should test his learning and skills every week, give him a contact and place him in the right
PC after the training
3. Fixed salary and incentives: Salary has two components:
• Base Pay (Fixed)
• Incentive

Base Pay should be structured in 3 tiers based on experience/turnover:

• A – Senior salesmen
• B – Mid-level experience salesmen (1-3 yrs)
• C – Junior salesmen & Fresh Recruits

Basic pay should be between 5000-8000 based on - Experience of the RSSM and Past Performance

Incentive should be structured to match the RSs CDT parameters. Apart from this each RSSM is paid a Daily
allowance and is reimbursed petrol expenses incurred during market work. Salary disbursement should be
done by the RS by 31st of every month. A good incentive structure helps reward good performance and
pushes a RSSM to do more. This also puts the CDT in place thereby helping the RS earn more and hence the
RS would not have a problem giving a higher incentive.

HHT Benefits
HHT (Hand Held Terminal) is useful to Monitor, Plan, Sync, Track, Update the communication quickly, Create
push in the market, Keep ready reference tool for RSSM, Reduce human errors / fumbling by RSSM, Create
reports, take orders. It is used in General Trade for the following activities.

38
 1. Recording Attendance
2. View Call cycle
3. Sales order booking
4. Understand task information
5. Reporting
Direct and indirect stake holder wise HHT benefits:

For HUL For RS For RSSM For Outlets

(BUSINESS GROWTH) (COST SAVINGS) (CONVENIENCE) (TRUST)
Right product at the right time Easier distribution of Easy to book order Higher profits
in right place work
Intelligent data mining for Planning & To know which specific To know most
picking up trends & Helps for modification of beats SKUs to focus bought SKUs at
planning the store
Creation of Push in the market Consolidation Outlet lines checking Focused
investment
To keep track of channel Track performance of OPS ready reference Less required
programs RSSM shelf space

Better competition position Easy to run channel Planning of tasks Quicker

programs Turnovers
Better placement Cost Saving Dashboards Less inventory
Convey strategic objectives, OPS Align with objectives Time saving OPS, channel
quickly of HUL programs

Do’s and Don’ts of HHT usage are mentioned in Appendix 3.

MOC Planning For a TSO

To make business sustainable and to achieve growth, it is necessary to have all of our business partners
aligned with the goal. A TSO provides that required customer service through execution. Key responsibilities
of a TSO are
• Customer Service: RS & Trade
• Execution: OSA, Visibility, QOC
• Driving Secondary Sales

A TSO has to plan his MOC around three things he manages: People, Categories and Customer. Date wise
planning needs to be done keeping following timeline and activities in mind.

Start of MOC
Date: 20 to 22nd of every month
• MOC meeting (Go through OPS plan which describes schemes, activities decided in the MOC)

39
 • Check norms for QOC packs
• RSSM target fine tuning in the system
• Tallying published OPS with actual (by running a dummy bill)
• Briefing of RSSM
1. Previous MOC review: key highlights, RS CDT, RSSM QOC & recognizing top performances)
2. Current MOC: Cascading & Charging RS & RSSM the key priorities and providing the direction
through enablers and trackers
• Plan enablers (RSSM incentive, Channel program value/width expectation)
• Trackers for QPS, NPS (EB from MIS assortment report, BM and LP from MIS recommendations
report), RSSM wise QOC (EFOS, ECO, BP)
• Channel wise planning (Vijeta, UPL, Drug, Fancy), Outlet type wise planning (MR,ST, Kiosk and
Wholesale), Party wise planning of high contributors
• Updating blue book of RS

4FE of MOC planning

• Focus SKU’s/Categories
• OPS /Key enablers planning
• Which category can give me delta in 6 MOC’s?
• Focus Channels/Outlets
• Which Channel to focus on?
• Top outlets target planning
• Focus Customers/RSSM
• Which customer needs attention?
• Which RSSMs need attention/
• Focus Execution
• PS/BP/Eco/FoS
• Enablers
• CP and OPS
• PD and NPS
• Channel programs

TDP 1
• 10% of MGP sale by 25th and 25% of sale by the end of TDP
• 10% of NPS
• EFOS at 60% and PD at 50%
• Focus on non program outlets, MR, ST & Kiosk (Since high stocking at program outlets in previous
MOC end)
• Focus on launch packs, redlines and IQ width packs
• Focus on coverage increase, use the comparative slag period in sales to increase the coverage and
understanding competition offers, rival brand
• Increase the stock levels of supported SKUs
• Take back from trade

40
 • Make sure RS raises DSE proposal in Unify
• Physical stock audit (WOW)

TDP 2
• 40% of MGP sale by 5th and 55% of MGP sale by the end of TDP
• 28% NPS by the end of TDP
• DSE approval by 5th
• 80% of RECO for blockbuster launch
• Ensuring hygiene in PE Com budgeting
• Focus on range selling, trade load, schemes with RSSM incentives
• Focus on visibility, planogramming
• Keeping trackers as mentioned above

TDP 3
• 101% of MGP sale
• 60% of NPS
• 75% of value perfect
• EFOS to be at 75% and PD at 60%
• BP and ECO > 100%
• Making sure RSSMs are meeting their incentive targets, RS achieving his CDT target
• Focus on Vijeta target, all channel program outlets achieve both depth and width
• Getting PNC needs to be attached with MOC claim docket
• MOC closure – ensure data sync and permanent posting of data

Regular working
a. Market Working
All TSOs are supposed to be in the market from 11 am till 4 pm unless and otherwise got approval from
ASCM.

• Driving OPS/channel program effectiveness

• Focus on damage/expiry – cascading SLC/Stock policy
• Understanding trade issues / grievances/subsequently sharing feedback with RS
• Focus on driving Effective FOS (use of HHT)
• Competition monitoring
• Regular contact with the trade

b. Training & Development

• Focus on fresh / bottom boxer RSSM
• Aligning to Perfect Store execution
• Making High Performing RSSM future ready

41
 c. Review and Monitoring
• Weekly review – width / depth / course correction – action planning
• Execution metrics / course correction
• Perfect Store / FOS / Launch efficiency
• Market servicing : Trade delivery / % Sales Return

Launch management
Launch or re-launch of any brand/product is driven through RECO and GSV (gross sales value) targets. AE and
BOM are responsible to make sure that launch is successful. Before 5th of the month, 80% Reco of
blockbuster launch required to be achieved. This is done to ensure that stocks are available in the market
when TVC or other ad media is launched. Secondary of sales is also required to be achieved 100% before the
end of MOC. Primary is generally done through quota packs before norms are defined. Targets set for AE are
higher than that of BOM. Blockbuster scorecard is maintained for BOM which has following tasks

1. 80% MSTN across depots before 10th

2. 70% primary before 25th
3. 70% secondary before 5th of N+1 month
4. 100% secondary before 20th of N+1 month
5. 85% Reco by 20th of N+1 month
6. 100% visibility before 25th of N+1 month (HFS MOC)

Launch packs are published as BM packs. Their logic is explained in perfect stores section of Execution. TSO
needs to brief salesman about launch packs and their functional use. He tracks BM packs through
recommendations report generated in FCS+ Unify. Recommendation report shows outlet wise targets of
width and launch packs and whether they have been achieved or not. TDP1 is the most important period for
a launch to be successful. RSSM is supposed to brief the outlet owner about the new product and show a
sample. He is responsible for delivering width, depth while MEs look after visibility. Also, it needs to
remember that successful launch is driven by retail market since wholesalers react slowly to a new launch.

Commercial Procedures
TSO needs to check claims of RS, approve PE-COM budgets and intervention may require in channel financing
and banking of RS.

Banking procedures
Normally HUL doesn’t give credit to RS in GT except certain situations like to meet spikes in sales in certain
festive seasons such as Deepawali or in case of a prolonged transport strike, where upstocking is required or
festivals like Kawad when transportation is restricted. CSD and MT may get credit based on the terms of
agreement. RS can be working on either cheque or DD (RTGS). Every new RS has to start work on RTGS. Post
3 months, RS to be made on cheque by Banking Officer as advised by ASM. If party is on cheque following

42
 ebit to RS account takes place on Invoice + Transit Time + 1 day.
process is observed where debit day

Day n+1: Cheque

Day 2: PIS
Day 2: Invoicing Day n: Delivery placement/
Day 1: RS Orders generation at
at Depot of stocks at RS debit to RS
Depot
account

If cheque is bounced due to less opening amount in the account RS resumed on DD for 3 months in case of 1st
cing and 6 months in case of 2nd bouncing. Besides RS has to face following penalties
bouncing
1. NO CDT payout for the quarter er in case of 1st real bouncing
2. Non payment of bank overdues on time by customer on Channel Financing will be treated as bouncing
and will have
ve similar implication
3. Non-eligibility
eligibility for certain company schemes such as ccredit during festival season & channel finance facility
In case of bouncing of cheque due to technical reasons, RS is resumed on cheque.

If party is on RTGS, following process is observed. RTGS parties transfers fund as per average CVFOT. If
transferred fund is higher than order value, depot intimates RS if he wants to increase any order.

Channel Financing
HUL has entered in partnership program with State bank of India and Standard dard Chartered
Cha Bank to provide
low cost easy access of bank financing for its distributors
distributors.. In this program credit limit will be sanctioned by
the bank to the distributor exclusively for funding for HUL’s business with specially reduced interest rates.
rates
Credit
dit Limit will decided taking into account past performance or projected turnover.turnover The program is
beneficial for distributors due to special rates, less charges and flexibility in overdraft. TSO coordinates
between RS, HUL and bank to provide documentation and get necessary approvals.

Claims approval
RS needs to raise the claims which can be either due to DSE (Damage, Shortage and Expiry) or trade schemes.
Definition of DSE stock and how it’s identified is mentioned in stock level section.

43
Process for DSE claim
1. RS enters stock in damage godown giving appropriate reason code
2. RS enter shortage stock in shortage go-down in RS Unify
3. At end of MOC, RS raises a proposal for Damage and Expiry and one for Shortage
4. Proposal flows to TSO login
5. Post approval, proposal goes to ASM and RFM login
6. As per SOA, proposal approved by ASM, RFM and RM
7. Takeback for damage and expired stocks initiated post all approvals

Timeline for DSE Claims

Day of Month Responsibility Task

30/31st RS Raise DSE claim proposal in Unify

th
5 TSO Approve/Reject proposal in Unify
10 -12th SAO Prepare DSE MIS and circulate to ASMs for feedback
on high claims
18th ASM Provide feedback on pending claims
20th SAO Approved claims MIS sent to depot for takeback of
damage and expiry. Shortage claims credited post
approval.
10th Depot Complete take-back of stocks, audit and credit to RS.
(In case of non depot town RS, take-back done once
a quarter)

Trade Schemes
Trade promotional schemes can be TPR, PE-COM or ToT. TPR are trade price reduction schemes (STPR, BTPR,
and QPS) as explained in OPS section above. PE-COM consists of promotional expenditures like display, RSSM
incentives, coupons, loyalty points and festive schemes. ToTs are agreed terms of the trade with channel
programs like SVS. For TPRs, claims are raised directly in Unify upon billing and no manual intervention in
required. However for PE-COM, TSO intervention is required. RS operator does the outlet wise budgeting
which needs to be approved through TSO login in RS unify. Upon approval scheme benefits get transferred to
the specified party. It is responsibility of RS to maintain hygiene in this process and pass on the budget so that
RS do not get scheme benefits at the cost of outlets it was intended for. Nil Claim Certificate is collected from
all customers on monthly basis for N-2 Claims. It is signed off by RS and submitted along with the claims of
current month. This is to ensure that there is no uncertainty in future claims. If payout is not closed on time,
budget for scheme would expire.

RS Unify
RS Unify is an application installed at RS point for their end to end operations. They sync with central server
for the inward and outward data flow. It is a billing package that completely automates all operations of a RS.
A mini-ERP solution, Unify enables HUL to pick up information such as claims and sales MIS, thus enabling
faster claim settlement for RS as well as actionable information to the sales team of HUL.
44
Unify can generate various reports to understand sales pattern, trends, channel performance, Eco monitor to
understand distribution width, daily sales report, category wise sales, party wise sales, RSSM QOC report
stock reports, schemes and payout report, quantum reports, etc.
It also has product master, beat linkages, party master, basepack info report, PE-COM budgeting, DSE
approval, etc.

TSO Role in Unify

• Monitoring the total sales of the concerned sales territory
• Responsibility for setting the RS and RSSM targets, monitoring and delivering sales of an MOC
• Approval of various claims raise by RS
• Ensuring proper field execution by analyzing the RS and RSSM performance using UNIFY reports
• For PE Activities like Display - TSO & AE has to finalize the List of Outlets & give the RS with Outlet
wise Budget
• Checking if classification of outlets is as per HUL guidelines
• Using reports mentioned above to drive strategic objectives of the company

45
 Appendix 1
Location Principles
1. Economy of transportation. ( Multiple warehouses if required to be explored )
2. Approachability.
3. Safety & Security
4. Nearness to the Market.
5. Availability of basic amenities like electricity, water & manpower.
Layout Principles
1. Ease of receipts, storage and issues.
2. Uninterrupted movement of material, men and equipment.
3. Optimum utilization of space.
4. Ease of locating the material.
5. Safety. & Security.
6. Better supervision.
7. Flexibility
8. Building. : Preferably single storied, enough height, proper lighting and ventilation, protection
against hazards like fire and lightening
Layout
• Ideally should be square shape for handling high volumes.
• Should have exclusive storage area for clean and hygienic storing.
• HPC and food products should have separate godowns for storage.
• Exhaust fans to be provided:
o 12” for 10,000 cubic feet
o 18” for 50,000 cft.
o 24’ for 150,000 cft.
• A class items should be nearer to dispatch point followed by B & C items.
• A separate bay to be provided for handling loose units.
Safety
• Fire fighting equipment to be provided at every 10 feet.
• Aisle space should be wide enough for free movement of goods and labour.
• Max temperature allowed is 38 degrees. For colours it should be 24 degrees
• Fire exit to be provided on the other side of the main entrance
Space requirements (Only for stocks, to add 30 % for movement)
• Lakme colours to be stored on racks in a cool place.
• Space utilization to be taken at 80% for all the bays.
• Bay size recommended for average godown – 4 x 6 feet.
Features of a good warehouse
• Place for everything and everything in its place.
• FMFO – First Manufactured and First Out principle.
• Maintenance of prompt and correct records.
• Fast and courteous service to customers.
46
 • Minimum damages to the material.
• Protection against pilferage.
• Regular verification and inspection of material
• Regular inventory taking and reconciliation
• Maintaining inventory within specified norms.
Do s for a warehouse
• Keep the area clean and litter free.
• Adhere to the requirements of HLL as mentioned above.
• Handle material carefully to prevent damages.
• Reduce dependence on manual labour by using mechanization/automation
• Read the instructions on the cartons carefully and follow the instructions for stacking and
positioning for FMFO requirements.
• Keep sufficient distance between two types of material stacks.
• Ensure adequate lighting, ventilation and temperature inside the warehouse
Don’ts for the warehouse
• Do not keep any material in the aisles.
• Do not open more than one carton at a time for loose items.
• Do not stack more than the recommended stack height.
• Do not throw the material from a height
• Do not mix up the products during storage.

Appendix 2 : SGROWTH

Before starting the call - Observe

Product range availability – own & competition
• Check for complete range availability of your products
• Try to sell in where competition is present but you are not
Product visibility – own & competition
• Ensure prominent visibility for your products
• Note down special visibility plans by competition / other companies
Promotional activity – competition
• Check for consumer promotions
• In shop activities
• Special trade schemes
Stock pressure – own & competition
• Check sufficiency of stocks
• Enquire for reasons of high competition stocks
Shopkeeper’s mood
• Respect his feelings
• Behave accordingly

1. Salutation:
• Greet the outlet owner warmly on arriving

47
 • In case of heavy rush at the outlet wait for crowd to clear or come back after some time
• In case outlet does not want to place any order, leave with a warm greeting and come back
on next scheduled day.

2. Goal Balance To Do
• On HHT check for the outlet:
• How much value is left for the outlet’s value target?
• How many lines are left un-billed in the Everbilled List?
• How many Red Lines are left un-billed for the outlet?
• How many iQ width pack are incomplete for the outlet?
• Aim is to complete all of the above for the outlet and make it a Perfect Outlet

3. Remember Merchandising
Visibility is important because it
• Helps consumers to identify your Brand – Brand Logo
• Enhances Brand Recall – Posters / DSM
• Creates impulse to buy
• Gives Better, neat look to shop
• Helps trade in attracting consumers – Credibility increases footfalls
Role of RSSM in merchandising
• Make sure the outlet has stock for any kind of visibility especially Paid Displays
• If the outlet does not have stock make sure you take the order for those SKU’s
• For outlets which are not visited by merchandiser make sure HUL products are displayed
prominently
• If products are dirty or disorganized RSP should clean them and place them in order

4. Outlet check & Work intelligently

Task 1 : iQ Width Packs
• See the iQ width packs published for the outlet and book orders for them as per the quantity
showing in HHT
• Many of these may be new launches so brief the outlet owner about the new product, show
a sample and then book order
• Aim is to complete minimum 50% iQ width packs for the outlet.
• RSSM can complete the target for iQ width pack in multiple calls also.
Task 2 : Assortment and Red Lines
• See the Everbilled List for the outlet and book orders for those skus in the recommended
quantity given in HHT
• Some of the skus are given red colour and are called Red Lines. RSSM should try and book
orders for all Red Lines.
• After order has been booked and billed for any sku in the recommended quantity, it will
show in green colour in the next visit.
Task 3 : Review
48
 Once RSSM completes the order for the outlet he will see the summary screen.
The review screen shows:
• How much value the order comes to
• How many Everbilled Lines have been completed and how many are left
• How many Red Lines have been completed and how many are left
• How many iQ Width pack have been completed and how many are left
• Using this the RSSM can review how good the call was and how much Balance to Do he has on
each parameter

5. Take back damages / expiry

After completing the order booking RSSM should ask the outlet owner if he has any damages or
expiry stocks to be returned. If there are damages RSSM should check the damaged stocks against
the Damage Policy before confirming take back. If stocks can be taken back as per Damage/Expiry
policy RSSM should make a list of the stocks on a paper.
• He should sign one copy of the list and leave it with the outlet.
• At the time of delivery to the outlet the deliveryman will see the RSSM signature on the outlet’s copy
of the list and pick up the damages.
• On receiving the damages at the RS point the details will be noted down in a file/register and the
amount will be adjusted against the next bill of the outlet.

6. Hand me my Dues
• After completing the call RSSM is to collect the amount for the previous bill of the outlet.
• He should present a copy of the bill & collect the money as cash/cheque from the outlet.
• RSSM should stick to the credit policy and try to ensure that the outlet makes 2-4 bills in a
month rather than just 1-2 large bills.
• If an outlet goes beyond the credit days recommended for it then RSSM should not take more
orders till credit is settled.

Appendix 3 : Do’s and Don’ts of HHT usage

Do’s
• Always charge the handset in full
• Keep it safely while travelling
• Keep it in plastic cover while travelling in rainy season.
• Check with your Area Coordinator /Supervisor/FM in case you are finding technical problem
• When not using HHT, keep it properly
• As soon as you report to duty, accept your call cycle through the application
• Complete your work & send self compliance immediately

Don’ts
• Don’t use the mobile while driving
49
• Don’t use the handset in a petrol pump
• Don’t use the handset while at ATM
• Don’t place it near liquids
• Don’t use the handset while its being charged
• Don’t make any personal calls / browse internet / e-mails or text messages
• Don’t play games with your handset
• Don’t replace the company provided SIM with yours
• Don’t exchange handsets with others
• And importantly do not use this to listen to music or download songs
• Don’t show the application to anyone
• Don’t delete the application
• Don’t keep the handset unattended
• Don’t clear memory without supervisor’s consent
• Don’t get into unauthorized / illegal sites

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