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Distributing Consumer Products in India – The DSD Context

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Abstract 

DSD is a business process that is more prevalent in the western countries. In India, the retail industry is shifting rapidly from unorganized to organized retailing. With the rapid growth of organized retailing in India, the retail companies and the manufacturers of consumer goods are beginning to understand the value of a business process such as DSD. This article is an attempt to make the reader understand and appreciate the nuances behind the distribution processes followed in the retailing ecosystem in India and to understand the DSD relevance in this market.

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Notes

  1. 1.

    Contributors: Ajay Chaudhary, Wilson Dhanaraj, Gaurav Tiwari and Aviral Gupta (Wipro Research Cell for Consumer Packaged Goods Industry).

  2. 2.

    Agent appointed by the Manufacturer responsible for getting the products to retailers.

  3. 3.

    C&F – Clearing and Forwarding Agent – Third party agent possible for getting the goods from one place and transport to other location.

  4. 4.

    Customer Executive – Operates in a smaller area (depending on the volumes). Responsible for the volumes, promotions and credit levels in his history.

  5. 5.

    C&F – Warehouse – Warehouse owned by the C&F agent for collection and distribution of goods. (C&F Warehouses in different Indian states are meant for saving Central Sales Tax levied by the Govt. of India, prevailing rate being 4%). He also takes care of all the petty expenses such as toll charges.

  6. 6.

    Delivery Boy is employed by the Distributor for delivering and collecting payments from the Mom and Pop stores.

  7. 7.

    AREA Sales Manager – Is responsible for a larger geographical area with 4–5 CE’s reporting to him. Responsible for operating costs and sales volumes.

  8. 8.

    Territory Sales In-Charge – Involves in forecasting, planning and sale fort he territory. He is responsible for managing high value accounts. His area of operation covers few cities/towns.

  9. 9.

    Stock Keeping Unit.

  10. 10.

    Product Availability Manager.

  11. 11.

    Drinking water supplied in 20, 25 L jars to home and institution.

References

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  • McKinsey (2007): Mc Kinsey Report: The ‘Bird of Gold’: The Rise of India’s Consumer Market.

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Correspondence to Somjit Amrit .

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© 2009 Springer-Verlag Berlin Heidelberg

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Amrit, S. (2009). Distributing Consumer Products in India – The DSD Context. In: Shariatmadari, R., Schoppengerd, F., Otto, A. (eds) Direct Store Delivery. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-77213-2_10

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