HUL rivals B2B firms with faster delivery in stores

In a pilot project in Chennai, parts of Maharashtra and other states, the company’s on-ground sales team has been tasked with ensuring that products reach stores the next day instead of the next day, said three people familiar with the development. .

“The sales teams now reach the market at 8.30 am to pick up orders instead of 11 am. Orders are taken from 1-1.30 PM and the products reach the store the next day. Earlier, the orders would be fulfilled the next day,” said a distributor in Maharashtra on the condition of anonymity.

This has reduced cancellations and some increase in inventory at the distributor level, he said. This is to increase efficiency in the system, he said. He added that the move is also aimed at matching the frequency of B2B players in the market. The model is being followed in cities like Aurangabad, Pune, Mumbai and Nagpur.

HUL spokesperson declined to comment.

Makers of Dove Soap and Brew Coffee, whose products reach millions of homes every day, are leveraging technology to stay relevant in an increasingly digital ecosystem. During the company’s Annual General Meeting in June, Chairman Nitin Paranjpe said that the company is on a journey to build an intelligent enterprise that is data-driven, machine-enhanced and suited to the heterogeneous nature of the country. “We are digitizing our supply chain to increase agility and resilience in the face of an increasingly volatile business environment. Artificial Intelligence and Machine Learning are being leveraged for better forecasting and planning. We are increasingly using automation to drive more reliable fulfillment with shorter lead times.” He added that the initiative will lead to better customer service, better efficiencies and lower costs.

HUL is using Adverb Technologies’ fully automated Goods-to-Person Order Picking, Warehouse Control and Carton Shuttle System to expedite the delivery of orders to its retailers. As a result, what used to take two days has now been completed in one day, according to Bir Singh, Co-Founder and Chief Business Officer, Addverb Technologies. He said the automation solution for same day delivery uses Artificial Intelligence (AI) algorithms to enable advanced order scheduling for high-speed picking of goods.

“Another important advantage of this system is that with this technology, HUL can directly reach out to the retailers and supply the goods in the quantity they need,” he added. For example, earlier retailers had to buy an entire carton of soap, even though they only needed a few. “It will block cash, inventory and even warehouse space,” Singh explained. With this system, the role of distributors is limited to the collection of money.

Addverb Technologies’ system also ensures that the software chooses the optimal route for the package. HUL is now planning to expand the use of this system to eight more warehouses. “The software remains the same, but the hardware will have to be customized to suit the needs of the warehouse and retailer,” Singh said.

HUL ships hundreds of its stock-keeping units to over 9 million outlets in India. It also operates its own e-B2B app Shikhar, which allows a shopper to place an order at any time without waiting for a salesman to arrive at the store.

Avneesh Roy, executive director, Institutional Equities, Edelweiss Securities, said the move would help reduce store stock-outs. “This means less working capital, faster deliverability than the competition, and a stronger relationship with the general business,” Roy said.

HUL went from 24-hour to 48-hour delivery period as the company’s business grew in complexity, a person familiar with its operations said. “The challenge with going back 24 hours is that it can mess up orders as the number of products and stock-keeping units under the HUL banner has increased significantly,” he said, seeking anonymity. “Maybe it might work in smaller markets but might present a challenge in larger metros.”