About this Presentation
A major obstacle in implementing pull distribution in the last mile has been the intermittent disruption of replenishment to the retailer, caused by the flight of capital and shelf space due to the propensity of the competition to dump material using schemes and other sweeteners. Since the retailer is the last link in the supply chain (the end customer buys from the retailers) any diversion of the scarce working capital results in the retailer deferring his purchase, thus causing unavailability. This generally frustrates any TOC implementation. In many cases, the implementation is limited till the distributors where the company thinks it has full control over capital. Even in most cases where companies dare to venture into a retail rollout, a convoluted version of pull is implemented, creating associated NBRs. Consequently, no one has been able to implement a true end-to-end pull solution. Let us, from Vector consulting group, present to you a completely different win-win solution that we have successfully implemented to solve this major last mile obstacle. We have created an ecosystem where the pull solution could be implemented without compromises and without any NBRs for any of the stakeholders.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The last mile obstacle in implementing a pull-based replenishment system in retail environment is the flow of money.
The solution to this problem is to use channel finance to extend credit to distributors and onboard retailers onto the same platform.
This solution ensures a faster cash conversion cycle and stops the downward spiral of debtors, all without any extra cost from the current level of working capital cost.
Instructor(s)
Puneet Kulraj
Puneet Kulraj is the co-founder of Vector Consulting Group- Asia’s largest TOC consulting company. Vector helps companies build unique operations and supply chain capabilities that can be leveraged as a competitive edge in the market. He has 28 years of experience in Sales, Product Management, Project Management and Consulting. Of these 16 years has been in TOC consulting during which he has led TOC implementation in Distribution, Retail Sales, Operations and Project Management in more than 50 companies. In addition to pioneering the application of TOC Sales and Distribution Solution in the Indian environment, he has Co-Authored a bestselling book “Apparent in Hindsight” which delves deep into the chronic problems faced by almost all companies in the Indian automotive industry in particular and distribution in general.