Haldiram's Distribution

Chapter 2 - Challenges and Possible Solution

Challenge 1- Network Expansion

2.1.1 The issue

The objective set by Haldiram’s for its sales force is Maximizing Coverage. This message percolates down to SO’s whose ultimate goal is to cover every potential shop in that locality. The task is made even difficult by the presence of large no of domestic and International players in the packaged snacks business. As the options for retailers increases their bargaining power, the act of selling and convincing each potential retailer becomes a draconian measure. Therefore, there is a consistent demand by ASMs to increase the number of SOs and SSOs reporting to them and finding that magic number is always a challenge for the company.

2.1.2 Why it is Important to Haldiram’s

In an FM

2.1.3 Recommended Solution

2.1.4 Constraints in implementing Solution

Challenge 2- Poor Replenishment and Sales Tracking

2.2.1 The issue

Both wholesalers and retailers are facing the problem of poor replenishment which is ultimately resulting in stock outs. This is impacting Haldiram’s sales and also is also making room for competitors to enter the shelf space of retailer/wholesaler.

Owing to the intensive distribution network, tracking sales is turning out to be a herculean task. This is typical problem faced by a large FMCG company

2.2.2 Why it is Important to Haldiram’s

2.2.3 Recommended Solution

2.2.4 Constraints in implementing Solution

Challenge 3- Offline Billing System

2.3.1 The issue

Paper billing system/offline billing system carried by distributors is impacting relationships with wholesalers. Wholesalers feel cheated when they come to know about overpricing. This is leading wholesalers to move away from Haldiram’s products.