Bajaj Electricals Limited (BEL) with a turnover of Rs.4,500 crores, is a globally renowned company which has diversified interests in lighting, luminaires, engineering and projects. The consumer products division of the company which includes small appliances, fans and lighting, accounts for 50% of the top line.
Previously, the view was that the only way this consumer products company could pursue growth was by launching new SKUs and pursuing aggressive “”push”” sales. So, the company’s distributors and dealers maintained a huge inventory. However, inspite of this, channel partners frequently experienced stock-out of products which were in demand. Thus, the company struggled to achieve good retail availability and could not grow market share significantly in any category.
With the objective of increasing sales by addressing the sales lost due to unavailability, the company adopted TOC “pull” distribution solution. In addition to phenomenally improving its visibility and control over secondary sales, the company achieved the following results: