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Case Study Of Fortnight

Sheela Foam Pvt. Ltd. pioneered the manufacturing of P.U. Foam in India. Today, we are ranked amongst the top 5 manufacturers of Slabstock P.U. Foam in South East Asia with a footprint in India and Australia.

This has been achieved by our relentless focus on quality, innovation and continual improvement. Over the last 30 years we have made giant strides not only in manufacturing capabilities but also in our methods of testing & ensuring quality.

In India, we have 10 manufacturing units using the state-of-the-art technology at strategic locations across the country. They serve a wide spectrum of customers in a fast and economical manner through a distribution network of over 70 distributors and 3000 dealers. A combination of manufacturing excellence and distribution network has enabled us to get over 40% of the Indian P.U. Foam market share.

Sheela Foam's Sleepwell and Feather Foam brands are leading and most trusted names in home comfort products and industrial foam respectively in India. In Australia, the name of Joyce also signifies quality and is a reputed brand.

Sheela Group's Sleepwell Brand commands a premium position in comfort products which includes Mattresses, Pillows, Cushions, Sofa n Bed, etc.

Sheela Group's offers Standard Foam Products in various densities and grades which ranges from 9 kg/m3 to 80 kg/m3 and from extremely soft to very firm.

These are available in wide choice of P U Foam Sheets, rolls and finished blocks under Feather Foam brand for Automobile, Footwear, Ship / Aircraft interiors, Furniture, Hi-tech Audio products and other Industries.

Sheela Group pioneers in Polyether, Polyester and Reticulated Foams specially manufactured to meet customer specified technical requirements.

We expertise in Soft Foam, Hard Foam, Polyester, Flame Retardant, High Resilience, Visco-elastic, UV Stable, Reticulated, Acoustic Absorption, Anti Static and Thermo Formable Specialty Foam for highly technical usage.

In Australia we have5 manufacturing location under the name of Joyce Foam with 120 years track record of producing about 10,000 tons of Flexible Foam per annum, supplies approx 40% Foam in Australia. The manufacturing locations are located in five major cities i.e. Adelaide, Brisbane, Melbourne, Perth and Sydney which enables us to service the Australian market effectively.

Sheela Group has a 50:50 joint venture with a Canada based, Woodbridge Group, the largest manufacturer of Molded P U Foam Products for the automotive Industry in the World, to be known as Sheela Woodbridge Urethanes Pvt. Ltd.

Another Joint Venture under the name of Sheela and Beards, to manufacture Spring Mattresses in India, Sheela Group has joined hands with A H Beard, Australia's oldest and most respected bedding manufacturer since 1899.

We have an in-house ERP know as "greatplus"

"Control MOP (Market Operating Price) through tracking secondary sales and Guarantee Validation System in India"

A Module of in-house developed ERP "greatplus"

Mattress is a very low involving product category therefore; customer base depends upon referrals and word of Dealer.

The most important challenge company faced was to enable dealers to retain their margins, track sales upto the customer level, built customer data base, control sales through unauthorized dealers and validate product guarantee to ensure and build customer's confidence in the Brand.

The system tracks the product movement from Factory to the Customer. It maintains stock at our factories, distributor's godown, dealer's godown and once the product is sold it informs the Customer the "Successful Guarantee Registration" through SMS. It also checks whether the product is sold from an authorized dealer, it reduces the dealers stock thus; avoid sales through unauthorized dealers and infiltration between dealers and distributors.

All our distributors manage their accounts in our homegrown ERP "greatplus". They log on to ERP "greatplus" and place their order directly to the Company through our "b2b" site i.e. "gr8plus.com". The orders get processed and dispatched. Each product that is dispatched has a "unique number" called "Product Serial Number" which is bar coded. With each dispatch an SMS goes to the distributor about the material dispatched to him. Finished goods stock at our factory gets reduced and stock with the distributor gets updated. When the distributor sells a product to dealer then the distributor's stock gets reduced and dealers stock increases. This all is recorded in our ERP "greatplus". Now, when the dealer makes a sale, he SMSs the product serial number and customer's mobile number from his mobile to a Mobile number provided by us. This SMS is fetched in our database, where the system checks the entire transaction and within 2 minutes of the SMS received the system automatically informs the dealer and the customer the "Successful Guarantee validation" and MRP of the product. This ensures that the product is sold from a genuine dealer as we have the product serial number and its entire movement from factory to distributor and from distributor to dealer. The dealer gets 5 points for each SMS. These points can be redeemed by him after a period of time.

Geography: All India coverage No of Users: 3000+ dealers Timelines for project execution from signoff to go like: The project was initiated in June 2006 and was implemented after seven months in January 2007

Mattress is a very low involving product category therefore; customer base depends upon referrals and word of Dealer. In order to make Dealer recommend "Sleepwell" product it is important that he retains a reasonable margin in selling Sleepwell Products.

Since last few years heavy channel discounting was becoming a serious problem. Authorized dealers were unable to retain their margins as un-authorized selling was increasing with high discounting. Thus, for the authorized dealers to sell a Branded product was becoming difficult.

With the implementation of this project "Control MOP (Market Operating Price) through tracking secondary sales and Guarantee Validation System" enabled "Sleepwell" to become the pioneers in successfully controlling MOP in India to a very large extent.

Authorized Dealers are able to retain margin on Sleepwell Mattress as we are able to set an MOP (Market Operating Price) in the market, thus, they are motivated to promote Sleepwell Sales. We are able to win the confidence of the customers in our Product, as just after the purchase of Sleepwell Product the Guarantee gets registered through SMS. This ensures building the faith on the Authorized Dealers and provides an importance to dealership.

Authorized Dealers use this system as a strong tool to differentiate themselves from other Retailers selling competitive products in the market.

It also enabled us to track secondary sales and eventually tertiary sales, thus, whole selling to un-authorized dealers have almost reduced to negligence. Unique tracking number on Sleepwell products helps in identifying erring dealers, who wholesale Sleepwell products to un-authorized dealers, located in other areas. This system has helped a lot in stopping the un-authorized movement of Sleepwell material in the market. The system has also helped us in assessing channel stock at any point of time.

The Dealer confidence in the Brand has phenomenally increased and this has finally resulted in increasing "Sleepwell Sales". We have successfully converted many Multi Branded Outlets into Sleepwell Exclusive Dealers, which in-turn reduced the competition to enter in that dealership.

Moreover now the company is able to maintain and monitor distributors and dealers stock. The company is able maintain stock for dealers located at remote location / rural areas. The company supplies material and replenishes the sold out product very quickly.

Previously, guarantee registration use to take a lot of time and was painful not only for the customer but also for the dealer, distributor and the company. But now with the help of SMS the dealer and customer come to know just in two minutes that there guarantee is registered by the company. On the other hand customer data base is developed without a big effort of keying in customers information and then despatching him the guarantee acknowledgement card. We use to pay approximately Rs.15/- per guarantee card registration but now we just incur Rs 0.40/- towards SMS.

Heavy discounting is the biggest problem in the Consumer Durable Industry in India. It is not only resulting in unhealthy competition but also spoiling the Consumer Durable Market. No one till date has gone upto this extent of control the MOP for betterment of the dealers and Consumer Durable market. We are the first Company in India to reach upto this level and have successfully controlled MOP in India. If this can be shared with other consumer durable industry then it will be highly beneficial for them also.

This is the most simple and innovative way of controlling MOP, tracking and maintaining the stocks at distributors location and at dealers location with the company without any huge investment. Computers are required only at the distributor's location and dealer uses SMS for completing the sales chain.

Due to this innovative way of tracking secondary sales, maintaining stocks at various levels and guarantee registration, we have successfully implemented this system even at the remote locations and rural areas with the use of Mobile in India.

Guarantee Registration through SMS is a very unique and innovative method which no one as per our knowledge has ever done in the country. Moreover, the time and involvement of different agencies who were involved in the complete process of guarantee registration have now been eliminated.

The company has got a comparative edge in the market, as they are able to track stocks and can replenish it in a short time frame. Sales through unauthorized dealers has reduced drastically and authorized dealers are able to retain there margins and are thus more inclined towards our products. They have built a strong customer database which will help them to build a direct contact with the customer.

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