Phase 1: HUL distribution network had wholesalers placing bulk orders directly with the company.

Goods were sent to the company salesman as the consignee. The salesman then collected and distribut
ed the products to the respective wholesalers, against cash payment.

Phase 2: during 40’s one wholesaler

in each market was appointed as a "Registered Wholesaler," a stock point for the company's products i
n that market. RW increased the distribution reach of the company to a larger number of customers.

Phase3: Later "Redistribution Stockist" (RS) replaced the RWs and "Company Depots" system came up
for the first
time. This system helped in transshipment, bulk breaking, and as a stockpoint to minimise stock‐
outs at the RS level.

Phase 4: Significant change in recent times in distribution network

has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Ag
ents (C&FAs). The C&FAs act as buffer stock‐points to ensure that stock‐outs did not take place. This
has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery.
The
role performed by the Redistribution Stockists includes: Financing stocks, providing warehousing f
acilities, providing manpower, providing service to retailers, reporting sales and stock data, dema
nd simulation and screening for transit damages.

HUL's products, are distributed through a network of 4,000 redistribution stockists, covering 6.3 millio
n retail outlets. There are 35 C&FAs in the country who feed these redistribution stockists regularly.
The company sale products through variety of outlets ie
grocery stores, chemists, wholesale, kiosks and general stores besides service stores and supermarkets.

Distribution at the villages :

(i) In direct coverage (IDC Model)

Markets with populations of below 50,000 under one rural sales organisation.The team comprises an ex
clusive sales force and exclusive redistribution stockists. Like this HUL
directly covers about 50,000 villages, reaching 250 million consumers, through 6000 sub‐stockists.

HUL appointed a Redistribution stockist who was responsible for all outlets and all business withi
n his particular town. For 25% of villages with low business potential HUL appointed sub stockiest,
who was responsible to access all the villages at least once in a fortnight and send stocks to those mark
ets.
Company simultaneously uses the wholesale channel, suitably incentivising them to distribute (HU
L) company products.

Project Shakti,

This enabled Hindustan Lever to access 80,000 of India's 638,000 villages .its already spread & adopted
in 12 states. The model consists of groups of (15‐
0) villagers below the poverty line (Rs.750 per month) taking micro‐
credit from banks, and using that to buy HUL products, which they will then directly sell to consumers. A
Armed with training from HUL and support from government agencies concerned and NGOs. Armed
 with micro‐credit, women from SHGs become direct‐to‐
home distributors in rural markets. The Shakti entrepreneurs are given HUL products on a `cash and car
ry basis.'

Project streamline:

To
cater to the needs of the inaccessible market with high business potential HUL initiated a Strea
mline initiative in 1997. Project Streamline is an innovative and effective distribution network for rural a
reas that focuses on extending distribution to villages with less than 2000 people with the help of rural
sub‐stockists/Star Sellers .

Hindustan Lever Network (HLN)

It is the company's arm in the Direct Selling channel, one of the fastest growing in India today. It already
has about several lakh consultants ‐ all independent entrepreneurs, trained and guided by HLN's expert
managers. HLN has already spread to over 1500 towns and cities. It
provides new exciting ways of earning substantial income in addition to offering rewards like revenue s
haring.

Leveraging Information technology

HUL customers are serviced on continuous replenishment. This is possible because of IT connectivity acr
oss the extended supply chain of about 2,000 suppliers, 80 factories and 7,000 stockists. This sophisticat
ed network with its voice and data communication facilities has linked more than 200 locations all over
the country, including the head office, branch offices, factories, depots and the key redistribution stocki
sts. They have also combined backend processes into a common Shared Service infrastructure, which s
upports the units across the country. All these initiatives together have

enhanced operational efficiencies, improved the service to the customers and have brought us closer to
the marketplace. .

RS Net Initiative:

Project Leap. Project Leap begins with the supplier runs through the factories and depots and reaches u
p to the RSs. This ensures HUL’s growth by ensuring that the right product is available at the right place i
n the right quantities and at the right time in the most cost‐
effective manner. Leap also aims at reducing inventories and improving efficiencies right through
the extended supply chain. It optimises Redistribution stockiest (RS’s)
Orders and inventories on a daily basis through online interaction on orders, despatches, information
sharing and monitoring. The IT‐
powered system has been implemented to supply stocks to redistribution stockists on a continuo
us replenishment basis