Some Indian consumer goods companies face inventory conflicts, with some locations overstocked while others are out of stock. Case studies showed how Godrej Interio, Godrej Megasari, and Bajaj Electricals improved inventory management. Godrej Interio increased on-time delivery to 98% and order growth to 25% annually. Godrej Megasari reduced retailer inventory 41% while improving availability to 100%, and increased warehouse availability and returns on capital employed. Bajaj Electricals doubled reach and added 40% new SKUs, with secondary sales up over 50%.

1. Consumer
Goods & Retail
Unresolved Conflicts

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A typical company in the
Indian consumers good sector
deals with following conflicts

3. while the same is stocked
out in another location
High inventory of some
products in some locations
despite having distributers
with marked out territory
Very high level of cross
territory dumping
Copyright © 2015 Vector Consulting Group. All rights reserved.
despite having the nearest
warehouse only few days
(or hours away)
Some items have inventory
worth few months in the
selling locations

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Distributers always
demand for excess
margins but mostly
pass them out to
retailers.
Wholesalers damage the
brand by resorting to bulk
buying and selling but they
presumably also solve the
reach problem.

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Some organizations in Indian consumer sector
have been able to solve the age old inventory
dilemma : how to have the right inventory at
the right place and the right time.

6. Case Studies
1. Godrej Interio
2. Godrej Megasari
3. Bajaj Electricals

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Godrej Interio
Leading player in customized
home kitchen solutions.
Offers Innovative interior
solutions for living room,
bedroom, kids room,
offices, etc and adds a
touch of sophistication and
style to homes & offices.

8. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Godrej Interio
50% to
The
ex-factory
On- time -in- Full
performance has gone
up from around
98%
Order
booking has
been growing at
around
25%y-o-y

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Godrej Interio
Largest international
business unit of godrej
consumer products.
PT Megasari Makmur
(Godrej Indonesia) is a
leading player in household
insecticides(Hit), air
freshners (stella) and wet
tissues (mitu) in Indonesia.

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Results
Godrej Megasari
The TOC
sales pilot conducted
with the company's
largest modern trade partner,
Indomart, resulted in a dramatic
(41%) reduction in the retailer's
inventory while improving
availability to a consistant
100%
98% to
Availability
at central warehouse
and depots / branches
has increased from
92% to
98%
ROCE
increased from
47% to
65%

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Results
Godrej Megasari
Service
levels from
branches / depots to
customers has improved
from
97%
95% to
Approx.
14% (8200 sq.m)
of the warehouse
space has got
released.
Inventory
turns improved by
37%(from 6.38 to 8.75)
Overall
inventory days
has been reduced
by
28%

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Bajaj Electricals
Leading company in
consumer electrical
equipment
manufacturing.
Provides solutions for
architectural lighting,
commercial & residential
lighting, fans, consumer
durables products.

13. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Bajaj Electricals
The
secondary
sales is up by
more than
50%The
reach has doubled,
retailers added
40%new SKUs