Distribution network for Britannia

Britannia has 4 production or manufacturing outlets which are in Delhi Calcutta Chennai Rudrapur inUttaranchal Gwalior which are owned by Britannia and employees more than 4400 people Besides its self owned units Britannia also uses the facility of more than 60 contract points for biscuits breads cakes etcwhere in the labour used for manufacturing is not owned by Britannia but the technology and raw materialsare provided by Britannia itself In this project we are analyzing the distribution network for Britannia biscuits for DelhiThe first rung in the distribution network for Britannia is the transport of the goods from the manufacturingplants in Delhi to the 2 CFA s carrying and forwarding agents located at Neb Sarai and the other one atMundka mother depotThe CFA maintain the inventory on behalf of the company and when the goods are supplied from Britanniato the CFA s it is not considered a sale but a transfer and therefore there is no change in ownership CFAgets commission on the basis of transaction i e on no of boxes held in the inventory CFA has to bear labour cost and his godown cost The cost of transport from the company to CFA is born by Britannia itself And thecost of transport from the CFA to distributor is also borne by Britannia onlyOne of the reason that Britannia uses the facility for CFA is that because of its wide spread sales all over India and with one production unit not manufacturing all the variety itself so through the channel CFABritannia manages to save a lot of behalf of not having to pay central sales tax 4 So therefore for example if 50 50 is manufactured only in Calcutta than it can be sent to the CFA in Delhi as well as other state CFAwithout having to pay 4 CSTThe second rung in the distribution network for Britannia are the authorized distributors and authorizedwholesalers as termed by a company rep In total there are 54 authorized distributors in Delhi and NCRBritannia does not incorporate stockist in its distribution network because of the large number of distributorsalready present in the network which are sufficient to cover the wide regions Distributors have their ownsales force labour transportation facility Each salesperson allowed covering max of 40 outlets everyday Thereason is that it is felt that it is not within human capacity to cover more than 40 outlets a day and if done sothen the salesperson might be exhausted enough and not spend enough time on each counter required byhim for building up relations with the shopkeeper Distributor s salesperson is the one who takes orders from the retailer and wholesaler He goes once a weekto all the retailers and wholesalers in his territory to take the orders and gives that order to the distributor Distributor assesses his stock situation and all short stock is ordered to the CFA keeping in mind theminimum order limitsThe areas for the Distributors are divided in such a manner to prevent overlapping if overlapping is foundthen penalty ranging from Rs11000 Rs 21000 can be charged to that particular distributor Max 0 4 of thetotal invoice bill of the distributor is allowed as replacement by the companyThe distributor is also given a certain amount of monthly sales target by Britannia The cost of transport from