OGHAB DISTRIBUTION CO. Tehran, 16315
Transcription
OGHAB DISTRIBUTION CO. Tehran, 16315
OGHAB DISTRIBUTION CO. Tehran, 16315-1498 Iran. Tel: (+9821) 27360. Fax: (+9821) 22873783 www.pakhshoghab.com email:[email protected] 08:00 07:00 09:00 08:30 12:45 10:45 16:30 14:00 22:15 21:30 00:00 23:30 Scientific Approach in FMCG Distribution OGHAB Distribution Co. Introduction As traditional distribution systems always impose many costs on producers, Oghab Distribution Company was established in 2006 , backed by the 60-years' experience of Oghab Halwa Company and with a scientific point of view towards the concepts of sales, distribution, etc. Ever since its founding, and even before that, the company availed itself of guidance from experienced consultants of Modiran 21 Corporation to implement scientific sales systems and quality management, and to constantly improve its implementation methods and procedures. In the short time since the founding of the company, the expansion of the organization was such that the number of its personnel has increased from 28 to more than 230, and its office space has increased from an area of 300 m2 in a one-storey building to an area of 1200 m2 in Oghab Holding Complex. And, currently, products of its cart are stocked in a warehouse comprising 2500 m2. Oghab Distribution Company offers direct service to more than 20,000 customers in Tehran and also extends its support in all the country through more than 300 distributing agents in provinces. Thus, it has established specialized departments such as market research, marketing, advertising, and separate supporting departments such as distribution, IT, planning, quality guarantee, administrative and financial, as well as 5 specialized sales divisions which support and Oghab Distribution Company, in cooperation with experienced cover all activities including outlet distribution in Tehran in the consultants, gathers market information and data to assess form of two separate divisions, sales in provinces of Iran, sales its performance during annual reappraisal meetings, in order to in special markets, sales to wholesale dealers located in the define short-term targets and relevant strategic plans to achieve Bazaar, and export. them. Thus, Oghab Distribution Company makes special effort One of the main reasons for the success of the company is to offer constant commercial services to its contracting adherence to strategic plans; since, the company believes an companies. approach, in which strategic management has a pivotal role, Below, follows a brief account of departments and services of could be the best way to achieve ones goals. Oghab Distribution Company: 3 08:00 2 Mission Statement of Oghab Distribution Company In the name of God The main activity of Oghab Distribution Company is distributing supermarket products in Iran market. Besides, the services of the company also include importing supermarket products and exporting Oghab products. This organization distinguishes itself from other companies by a “scientific perspective to the market”; therefore, the company has framed all its activities based on master system of strategic management, which is in line with the goals of Oghab Holding Corporation. Oghab Distribution Company believes that in order to offer products to the market and in order to develop the market, it is of utmost importance to utilize a “market plan”. By investigating the market we try to learn about implicit and explicit needs and wants of the customers in the form of opportunities and threats of the market. Furthermore, by transforming this experience in the form of a “market plan”, we convince our employees and employers to contact the market with a scientific dialect and to improve the products respectively. We believe Oghab Distribution Company is built upon two principles of respect and science. Respect towards shareholders by proper selection of employers whose opinions match scientific management. Respect towards employers who have entrusted their products to us; so, we should make every effort to develop their sales market. Respect towards employees who the thoughts are behind and the executive forces of this development; so, we should do our best for their satisfaction and dynamism. And, more importantly, respect towards customers, to whose needs and requirements we should respond properly. Yet, in order to make the organization more scientific-based, we have planned all our activities by a master strategic management system. Afterwards, by commitment to ISO-9001-2008 standard, we would implement the plans modeled upon scientific procedures. Thanks, Amir Hossein Naseri CEO 5 4 Organization Chart CEO Consultants Executive Vice President Treasurey Management Representative Executive Secretary Auditing Vice President of Procurement Vice President of Sales Tehran Sales - Territory 1 Tehran Sales - Territory 2 Distribution Provinces Sales Special Markets System & Strategy Planning & Procurement Marketing & Market Research Vice President of Support Foreign Trade HR Financial IT 08:00 7 6 09:30 Marketing and Market Research By looking at the performance of Oghab Distribution Company In 2010, this department’s personnel carried out more than 40 other outputs of this department. Such reports cover all products of channels through which all sales channels are monitored during recent years and also by studying the mission statement extended scientific projects in the market and filled out more than the distribution cart and their relevant results, besides influencing carefully in order to detect and eliminate possible flaws of the organization, the degree of importance of marketing and 17,000 research forms from supermarkets and wholesale dealers the market plan, provides the suppliers with many solutions for immediately through minute mechanisms. market research department becomes evidence. and consumers; hence, having passed a very fruitful year. improving the procedures. The process of monthly analysis of sales reports is also carried This department, which carries on the role of CPU in the organization, The marketing plan developed in this department, provides a path Supervision and evaluation of the sales performance in different out by this department. At the end of each month, the marketing tries to distinguish itself from other distribution companies by for other departments of the organization in order to follow; and, markets, is another function of this department. This function department holds meetings during which managers of the sales, availing itself of several full-time questioners who always monitor thus, to plan their activities on the basis of precise and scientific is carried out by receiving assistance from a strong team of marketing, and planning departments analyze the data regarding activities of the market. Afterwards, the results of the researches principles. consultants through sessions of “product brands analysis” so as the sales of the previous month. In the end, the results of the carried out in the market are prepared in the form of several reports Following-up proper implementation of the marketing plan to carry out properly all procedures relating to product introduction meetings are prepared in the form of compiled reports for the kind such as: evaluation of the consumers’ satisfaction of the products, and supervising its precise execution is another function of this and presentation to the market. attention of the suppliers. products positioning, evaluation of customers’ reception of new department. In certain cases, this follow-up and supervision Another activity of this department is careful monitoring of the Currently, this department includes 10 specialized personnel, who products, etc. These reports are based on scientific fundamentals has delivered very positive results such as improvement of the process of distribution and sales. Such monitoring is carried out try to accelerate the process of decision-making by presenting and detailed methods of market research, and would be finally product. through a systematic and scientific framework entitled “customer detailed and updated information of the market. utilized to develop the marketing plan. Periodical reports of market research and analysis are among complaints”. In this system there has been considered some 9 8 Product Supply Department Oghab Distribution Company has always made every effort two sides by completing required documents and preparing to develop its products cart on the basis of the needs and annual documentary evidences. This department also sends wants of the customers while considering health issues. So, inquiries, receives information about production lead time the department of product supply has a very important role in from suppliers, follows-up inquiries, coordinates deficits and this regard. arranges for return or destruction of products which do not This department is the connection bridge between distributors conform to the suppliers. and the producers, and satisfies the demands of each side. Besides, with regards to assessing the suppliers, this department The product supply department provides grounds for signing cooperates with market research department to make sure of contracts and for defining ruling regulations between the the qualification of products and suppliers on a 3-monthly basis. 11 16:30 10 22:15 Commercial Department This department’s activities divide into two main parts: Domestic In import department, researches are carried out about possible activities concerning agency registration in the Ministry of Commerce and International Commerce. products to be imported to the country. Following this phase, Commerce and brand registration in the Register Office, as well International Commerce deals with two main activities: import their possible reception in the market and their selection is as activities concerning GMP in the Ministry of Public Health are and export. carried out by the marketing department through extensive also carried out in this department. In export division, the target market is investigated with regards market research. to different aspects such as population, amount of income, age An instance of such procedure is signing contract with conditions, education level, geographic condition and all rules Kellogg’s company. Currently, Oghab Distribution Company is and regulations of the target country. During the next step, the exclusive distributor of the products of this company in Iran. relevant companies are identified and their relevant information Experts of this department carry out annual extensive field is gathered. Following this step, the qualified companies for researches in different countries and arrange investigation tours presenting the products of the distribution cart are selected in to gather invaluable information for completing their database. order to start correspondence and discussion for cooperation. It is noteworthy to mention that with regards to imports, the 13 12 Planning and Warehousing Department The planning department develops sales forecasts of the Besides, managing all of the company’s warehouses-comprising products for the producers in the form of action plans by availing around 2500 m2 and about 20 employees- is another function itself of specialized personnel and by holding sales forecast of this department. This function is carried out by utilizing new sessions together with relevant personnel at the beginning of and scientific methods of warehousing, relevant software, and each year. During this process this department also considers modern machinery. past trends, as well as information gained through marketing All procedures (such as loading and unloading distribution vehicles, and market research, and information gained from suppliers tracking and identifying products, checking and reporting non- and marketing plans. The above process is followed by conforming products) are accomplished with reasonable precision placing orders to supply the required products, and updating and speed consistent with other departments. 07:00 the action plan by observing the amount of consumption and sales of the products. 15 14 08:30 Tehran Distribution Proper presentation of products in the 22 districts of Tehran is carried out through two separate sales divisions (Territory 1 Sales, Territory 2 sales). In the first place, the framework of sales divisions in Tehran is based on the marketing plan provided by the sales committee and the marketing department, who have compiled it upon entrance of the products into the market or even upon policy-making for the sales of old products. At the beginning of the implementation of the marketing plan, the distribution divisions of Tehran organize training sessions for their staff in order to acknowledge special features of the products, the contract specifications, and sales policies. Afterwards, a plan for executing the adopted promotional measures of the marketing plan is developed and after approval, executed. These divisions also cooperate with the distribution department in covering new markets by identifying customers; furthermore, they update the call planning dynamically. In the second place, these divisions develop the sales forecast on the basis of past trends, seasonal sales conditions, and execution timing of the marketing plans. After the preparation of the action plan by the planning department, these sales divisions appoint and announce sales targets for salespeople in different territories of Tehran. In these divisions, the sales assistants develop a plan for visiting the customers on the basis of routes requirements and existing for dispatching the orders. Territory 1: Territory 2: facilities, in the form of tours of 12 to 18 days; these plans are then It is important to mention that the maximum delivery time to Tehran sales division in Territory 1 comprises professional Tehran Sales division in Territory 2 comprises experienced presented to the salespeople for follow-up. Three days after the wholesale customers is 24 hours, and to retailers is 48 hours. personnel including sales manager, 4 sales assistants, 25 personnel including sales manager, 3 sales assistants, 18 visit, the sales assistants check and control the proper execution A good reference for evaluating the sales performance is salespeople, and 2 sales experts, who cover 9000 retail salespeople, and 2 sales experts, who cover more than 11600 of the visit, the salesperson’s demeanor during the visit, customer gaining feedback from the sales procedure. This is achieved stores and 130 wholesalers in districts 1 to 8, 13, 14, 21, 22, retail stores and 250 wholesale stores in districts 9, 10, 11, 12, 15, satisfaction and reasons for not purchasing. through daily, weekly, and monthly standardized reports in Lavasanat and North Eastern suburbs of Tehran. 16, 17, 18, 19, 20, South Eastern and Southern suburbs of Tehran The salespeople visit shops with complete equipment, while order to check the salespeople’s performance, the amount This division pays special attention to empowering its staff and and Eslamshahr-established in Khayyam office to be close to the being aware of the past information of the customer, to get orders of committal to covering their whole territory, the amount of tries to improve capabilities of its salespeople by improving Southern districts. after receiving advice upon daily visiting routes. Sales assistants deviation from each route, the amount of returned goods by training methods. This division pays special attention to validation and training of pass the orders to order registration staff after checking all stores, and execution of MPs and their efficiency. And, finally, Thanks to its scientific management, this division has delivered its staff and tried to achieve real and optimum sales results in orders carefully and controlling the customers’ credit. Afterwards, the actual sales performance is compared with the action plan a 106% increase in terms of its sales amount compared with Southern districts of Tehran. relevant invoices are issued and passed to delivery department for more analysis. that of the previous year. Besides, the number of covered Thanks to the implementation of principled and scientific methods supermarkets has increased to 19% compared with the in this division, its sales amount has increased to 42% compared previous year. with the previous year. 17 16 Wholesalers Distribution Oghab Distribution Company tries to acknowledge existing route for each of the visitors. All the visitors are supposed to previous year. The total number of customers of this division is interactions of the traditional market, and to recognize the visit the stores on the basis of the specified routes. The rest nearly 260 wholesalers. market through a scientific approach, and to penetrate the of the procedure is carried out like the one mentioned about target market through marketing plan. Tehran Distribution. Due to the considerable increase of the number of supermarkets After checking information of each order, the sales assistant and grocery stores, visiting all of them one by one is not cost of this division takes action in supplying the ordered items of efficient for the distribution company. Khayyam store is located these stores. The traditional atmosphere of the Bazaar and in the heart of the traditional Bazaar of Tehran with more than its distinction with other stores requires a customized sales 40 years of experience. The main target of this store is to approach. Currently, wholesalers division has succeeded in penetrate wholesale markets of the capital; thus, to be able to achieving outstanding results in Bazaar through implementing cover distribution blind spots in Tehran. a proper scientific method. After the validation phase, carried out by the distribution Thanks to the scientific management of this division, its sales department, the sales assistant of this division defines a specific level measured in Rials has increased to 42% compared to the 19 09:00 18 12:45 Provinces sales Division One of the strong points of Oghab Distribution Company is its pull of the market and the performance of the agents to develop through gathering detailed information and organizing visiting All processes in this division are implemented in line with the strong sales division for provinces of Iran. This division manages policies of sustaining or changing the agents. Currently, this tours. In the year 1389 more than 100 investigation tours have marketing plan of each supplier. And, like other sales divisions, all sales procedures in all parts of Iran, except Tehran. department is in touch with more than 110 agents in different been carried out in different cities of Iran resulting in more all efforts are made towards keeping the execution of the This division comprises about 10 professional sales experts provinces of Iran. Thanks to careful maintenance and control efficiency in the activities of this division. marketing plan at an optimal level. This division tries to hold who cover activities such as developing agents, product of this connection, the outputs of this division have improved Experts of this division try to develop motivational mechanisms seminars with the presence of the agents to gather their points marketing and sales to agents in provinces. This division ranks considerably compared with the previous year. in order to improve activities of the agents. These motivational of view in order to optimize the organization’s activities. all the agents through careful investigation and by analyzing Oghab commerce always tries to empower agents and mechanisms cover a vast spectrum: donating facilities, offering sales data and credit evaluation. Furthermore, by organizing distributors in provinces and towns. Sales experts of this division free services, offering prizes in cash and in kind, designing the personal visiting tours and field research, tries to keep its constantly try to supply the agents and distributors with all the interior decoration of the commercial centers, and installing ranking information constantly updated, while evaluating the necessary equipment, while monitoring their performance signs at entrances. 21 20 Special Markets Scientific approach towards the market and identification of profile completing, etc. are carried out regularly on the basis of development. The diversified nature of this division’s sales all the sales channels shows that a considerable percentage standard frameworks. All sales procedures in this division-like centers requires different and customized regulations and of sales is carried out through channels other than the other sales divisions- are carried out in line with the marketing discussions which have been successfully achieved through supermarkets and wholesalers. plan of each product. advising company in order to lead sales discussions more The sales division for special markets tries to push the products of This department deploys its staff in some important chain effectively. Thanks to specialized sales staff and scientific and the distribution cart into such markets. Part of the target market of stores in order to provide grounds for achieving optimum sales authentic methods, the sales output of this division has enjoyed this division include: chain stores, state-run and private cooperative of the products. These established staff, constantly supervise an increase of more than 90% compared with the previous year. companies, Shahrvand and Refah stores, restaurants, sports and the arrangement of the products in the store in order to create Another function of this division is to organize special sales recreation centers, newspaper Kiosks, etc. It is tried to cover the perfect atmospherics for the sales of the products. teams who try to eliminate barriers and to find solutions to the above markets through indirect methods. Successful management of sales in many of the sales centers problems in cooperation with professional salespeople. The procedure of identifying customers, validating, grading and of this division requires constant technical and practical 23 14:00 22 Delivery and Transportation After receipt of the orders from customers by the visitors, carrying of 800 stores. Besides managing transport affairs of Tehran, validation. Through this procedure, the credit amount of each out all activities related to delivering goods, settling accounts, etc. dispatching cargos to agents in provinces is also among duties store and purchaser is evaluated and the final digit is considered are among functions of this department. of this department. Thanks to the scientific management of to indicate their volume of purchase. The purchasers’ credit This department tries to deliver all orders within 48 hours from the Transport department, the costs of this department are undergoes constant revision considering the volume of purchase receipt of the orders by the help of more than 40 personnel and maintained at an optimal level. and the number of orders placed. more than 30 Nissan and Isuzu vehicles. Besides the explained issues, all procedures of receiving Delivery route management, loading priorities, delivery time payments are also carried out in this department. About 10 management based on the requirements of the customers, etc. employees of this department follow up such activities full time. are amongst important issues which are dealt with successfully These activities also include following up rubber checks, and in this department. settlement of past accounts. Delivery operation begins from 7:00 AM every day to an average Another duty of this department is carrying out the procedure of 25 07:00 24 Advertising Department Oghab Distribution Company always looks for developing and All advertising strategies are defined on the basis of market implementing dynamic and effective marketing systems in research and marketing plan. order to improve products of its cart. So, advertising provides a Oghab Corporation considers advertising a modern and good solution in order to sustain loyal customers and develop scientific activity, and avoids exertion of personal points of new markets. Advertising has been listed amongst the various view and tastes. This company implements scientific methods activities of the company by acknowledging the fact that to develop and execute advertising campaigns. This matter nowadays sole procedures of presentation, distribution, and could be improved in cooperation with advertising committees sales are not sufficient, and that advertising has an important and supervision of such affairs. 21:30 role in successful marketing. 27 26 System and Strategy Department Management in Oghab Corporation has always been based Experts of this department regularly monitor the progress of These reports include sales amounts in terms of Rials, and upon principled development and improvement. Different each department and by developing indexes try to improve sorted by different districts of Tehran, different cities, chain stores, steps of principled development from the perspective of progress and development of the departments. wholesalers, and their percentage of coverage, compared with Oghab Distribution Company include: 1- Devising a system From the perspective of Oghab Distribution Company, this previous periods. Of course, such reports provide invaluable 2- strategic management 3- information management. department is very important, and every effort is made to information for the managers for facilitating decision-making. System and strategy department has succeeded in compiling all the improve efficiency of this department through holding meetings organization’s processes in the form of more than 25 procedures and counseling professional advisors. and 20 instructions, in cooperation with a strong advising team. This department helps a lot in strategic decision-makings of the Each department of the organization has detailed executive organization by holding annual management review meetings. procedures through which the performance of the whole system is Amongst the many achievements of this department, we could assessed. Such executive methods and systemic documents are mention standard monthly sales reports which are accompanied under constant revision and are taught to all the personnel. by detailed analyses for the kind attention of the suppliers. 29 17:00 28 IT Department In Oghab Distribution Company, the flow of information is very and organizing more than 75 computers and by controlling high in terms of speed and volume, so the IT department takes communication between various distribution offices. on the role of maintaining communication, information security, The specialized personnel of this department carefully supervise and ensuring about the accuracy of information. integrated warehouse and financial software and constantly Creating reliable connection between Headquarter of the studies up to date IT technologies, and tries to improve executive company, warehouse, and Khayyam office is one of the main and operational procedures of the company by implementing achievements of this department. This department has provided new communication systems such as GPRS, and GPS. 01:10 perfect grounds for all procedures of the company by managing 31 30 Financial Department Administrative and Human Resources Department As one of the main resources of the company is the human resources, this department is considered one of the key departments of the company. The agenda of this department includes: paying more attention to internal training issues based on the requirements of the organization and the human resources, planning external training calendar, participating in relevant seminars and holding training tours for visiting the suppliers in order to acknowledge the features of the products, etc. This department categorizes human resources on the basis of the applicants’ dynamic and static capabilities, and by creating motivation and welfare facilities boosts the morale of the human resource and, as a result, improves efficiency of their performance and satisfaction. This department has also prepared a leaflet for early training of the staff which has been implemented from the beginning of the year 1390 in all sections. One of the biggest challenges of the HR department in Oghab Distribution Company is the variety of the human resources in this organization. Due to the wide span of the activities, the company is in touch with human resources in different starta, each group has different needs, so different motivational methods should be implemented. Holding annual celebrations is another way to improve the spirit of teamwork and create a friendly environment among the human resource. This department prepares short-term and long-term plans and The financial department studies the process of entering new The HR department tries to utilize the efficient technique of forecasts in order to manage financial resources and expenditures, products into the distribution cart of Oghab Company, and after “community meetings” in order to maintain connection between and in order to provide financial resources for purchasing all the determining its financial interests for the organization, decides different departments and the management, and reduce products of the distribution cart. This department implements upon continuation or cessation of the process. Besides, in contradictions and conflicts. detailed scientific methods for calculating one of the most important order to improve cooperation with the suppliers, prepares Thanks to the scientific management of this department, job and vital data of the organization (which is the cost of the products weekly accounts for eliminating discrepancies and checking promotion has found its proper meaning in Oghab Distribution of the cart), as well as influencing other strategic decision-makings payments with each supplier. This, indeed, has brought many Company. Having achieved such high value, the managers have such as starting, continuing, or suspending activities. It also tries positive results for the company. a high understanding of duties of their staff in order to form a to reduce and control financial risks and large investments of the strong body for the robust organization of Oghab Distribution company respectively. Company. 33 10:45 32 35 34