How Should We Structure Our Distribution Model for LED Manufacturing Across States?

Hi, I am associated with a Group of Companies as the Chief Operating Officer, which is recently spreading its wings in LED Manufacturing & Marketing. I would be glad if you could please let me know how we can form the distribution model among the manufacturing unit, dealers, and distributors. There are several models on which such FMCG markets work. Please let me know which model will be most applicable to us, having one manufacturing unit and a cross-state distribution of the same.

Regards,
Gargi Chakraborty

Dear Ms. Gargi Chakraborty, This forum is for HR professionals, and the issues discussed are related to HR. Your question pertains to distribution and logistics. Incidentally, I conduct training in the field of Supply Chain Management (SCM) and thus am somewhat familiar with the subject.

Information to Consider

You could have provided basic information such as the existing product you manufacture, your current distribution model, whether you have warehouses nationwide, and the potential synergies that can be developed while distributing the existing product. Additionally, LED products typically have a life cycle of 1-2 years; hence, they cannot be classified as FMCG per se.

Distribution Strategy

At this stage, have you considered outsourcing distribution? There are numerous players in the market like Philips, Surya bulbs, Syska, etc. How do they manage their downstream SCM? Furthermore, your product's success will depend on marketing. Which regions of India do you plan to target for marketing? Will you market your product nationwide, or will you initially focus on specific states before expanding to others gradually? Consequently, your Supply Chain needs to align with your marketing strategy.

Your post raises several critical issues. I recommend discussing these matters with a Logistics consultant.

Thanks,

Dinesh Divekar

Dear Sir, First of all, I would like to thank you for responding to my query, which is not exactly an HR-related question. I would like to inform you that we are a group of companies with interests in real estate construction and marketing, insurance distribution, sports, and travel & tourism. We are in the process of establishing an LED bulb manufacturing unit and warehouse. However, initially, we plan to outsource the distribution aspect.

Request for Supply Chain Management Models

I would like to request your suggestions on a few supply chain management (SCM) models that we could potentially utilize.

Regards,
Gargi Chakraborty