Rus Articles Journal

The first progress of diversification of distributor business of

About what is already made and what positive changes expect the company in the next years, is told by the CEO Tatyana Karimova.

Since the beginning of 2010 the Central Distribution Company began to develop actively the new directions of business - to expand a distributor portfolio of suppliers (producers) and to provide logistic services to clients.

Before speaking about prospects, I want to sum up the general financial results of ended year. This year of our company can quite be characterized as successful. We exceeded our budgetary expectations of ended half-year for 4% on sales volume. First of all such success is connected with the general favorable tendencies for us which develop in consumer economy recently: buyers began to come back to small outlets near the house. People already choose not only where it is cheaper to buy, but also there and where it is more convenient. Activization of demand in small outlets cannot but please us as we have more than 10 thousand such clients and development of this sales channel - one of strategic priorities of our company.

I will remind that the most important priorities of development of the company are now - expansion of a distributor portfolio (first of all due to strengthening of the directions Nestle, Non - food and own Ewa trademark), expansion of a range of the rendered logistic services and strengthening of personnel structure of the company. In a post - the crisis period we tried to master the Food and Non directions - food, as a result the choice fell on Non - food - as more perspective for us expansion of a distributor portfolio. Developing sales of the goods which are not competing with our the main suppliers of Procter &Gamble and Nestle we have an opportunity to strengthen positions in the market and to increase the general commodity turnover of the company, reaching an additional synergy in transport expenses.

Today the Non direction - food is presented by such brands as Veiro, Lotus, Cotton Club. It only the beginning of the list which will be considerably expanded. We will continue active negotiations with other producers which see in us the perspective partner, we will offer working conditions interesting technologically. First of all the company intends to hold negotiations with the largest brands though among them and it is difficult to find products which are not crossed with our main partner P &G, but besides we are interested in negotiation with the young brands aimed at active growth.

Today diversification of a distributor portfolio already reached 12% of a total turnover of the company. It means that 12% do not treat production of the main partner of P &G any more. And this figure according to plans has to reach 30%. At milliard turns of TsDK - a task difficult, however in the next 2 - 3 years we intend to solve it.

The second perspective direction for development of TsDK is a logistics. The company intends to offer potential clients, (as which both large network associations, and the wholesale companies, and productions can act) a package of the combined services.

Depending on needs of the specific client, TsDK can act as a cargo carrier,

or the combined partner: logistic operator and distributor.

The logistics differs from distribution radically: structure of expenses, rules of the accounting of profitable and account part, and mass of other nuances. According to our expectations, the share of profit of TsDK in the next several years will become stronger the logistic direction for 10-15%. Development of own Ewa trademark is harmonious continuation of strategy of development of business. This strategically perspective direction interesting to investments and development. Own brand complements the range of P &G production necessary in a household and allows to expand the range offered TsDK.

There is a lot of plans at the company, their realization will demand efforts from each employee. Therefore pays special attention of TsDK to strengthening of personnel structure by strong, professional experts who are capable to work in changeable conditions of modern business. Earlier we repeatedly discussed a subject of “the universal soldier“: the expert who understands the role in the company and possesses the professional qualities allowing to be 10 times more in comparison with similar experts in the market. Soon there will begin work the School of logistic skill, School of sales representatives and merchandisers. Start of these projects will allow to raise in collective highly - professional experts who will have not just the theoretical knowledge gained in educational institutions, and will begin to understand well specifics of logistic and distributor work of TsDK - that is especially important at such scales of the company as ours. Our company - excellent school for those who are aimed at the professional growth and improvement of skill.

The fact that experts need to be grown up does not raise doubts. Shots are one of two main components, in my opinion, of competitive advantages. Success of business is defined by two things which are difficult for estimating in money at once as the bank account, for example. These are technologically advanced and verified processes, and also people which these processes realize every day.

Nobody can stop in development, to neither the old employees, nor new. Yesterday`s achievements of each of us can be not actual already tomorrow: life, specifics of business, the company place in the competitive environment changes. Therefore we want that people approached performance of functions by a non-standard image. That looked over bureaucratic regulations from the point of view of expansion of responsibility, were in continuous search how to improve work, to optimize the carried-out processes and to make them less expensive.

For each employee who works for us it is an excellent opportunity for personal and professional growth, a good stage in career development. Except strong personnel structure (average period of operation in the company exceeds 5 years and reaches 10-15), the company possesses serious material resources and professional experience which puts it along with the largest world distributors.

TsDK is an expert in the field of logistic and commodity service of any types of the trading companies. In it its huge advantage. The company understands features of work and the largest network shops, such as X5, Subway and shops near the house. And more than 12 thousand points, so-called active client base, the best confirmation to it. In each case it is about absolutely different organization business - processes, with the rules of the account and a complete set of goods, features of reception, registration, packing and delivery of orders, registration of payments, credit conditions and a set of other details.

In TsDK know algorithm of work of each outlet, and when the new client comes, we try to create for it most acceptable working conditions. Each partner is expected by the fulfilled technologies of acceptance and processing of orders, good speed of delivery, (TsDK is capable to process orders within 24 hours; sometimes the order taken at 17:00 can be loaded on delivery by 9:00 the next day), the full product range of the supplier - the producer, high precision of assembly and implementation of orders (this indicator one of the highest P &G among all distributors, it does not fall lower than 95%, reaching on average 98 - 99%). Besides, the company possesses good financial resources, giving an opportunity to clients with whom there are open, confidential relations, to obtain the commodity credit.

Concerning partners - suppliers of a working condition also conform to high standards. Thanks to introduction of high technologies and the advanced software, the available registration systems which are presented in financial department of TsDK perhaps planning of commodity orders in warehouses in the online mode:

providing 100% of the stock rate covering daily opportunities of suppliers and need of clients. Working with TsDK, suppliers possess all information necessary for optimum planning: depending on a season, marketing

programs, a consumer demand.

TsDK possesses wide vehicle fleet (about 300 units of own motor transport from low-tonnage cars to large-size trucks which can approach any outlet and to deliver from 1 box to ten a pallet). More than 7 years we

successfully plan delivery of orders with use of the automated system of planning of orders Antor. In addition - practically all motor transport is supplied with GPS - navigation which allows to trace and correct delivery of production in on the mode - line. At the same time the logistics of TsDK does not rely only upon navigation: in staff

skilled drivers who well know roads in the cities where our clients are located work.

One more strength of TsDK - the big warehouse complex belonging to group of companies into which TsDK on which more than 700 employees work enters (only

on the P &G and Nestle projects). Daily the warehouse processes a pallet till 1000, turning the separate range into ready, collected orders of clients which are daily delivered more, than to 1000 addresses only in Moscow. The total area of a warehouse

complex in Moscow - more than 25 thousand square meters. One more advantage of TsDK - available a good network of logistic platforms and trade offices in Central Federal District: in the Moscow, Tver, Kaluga, Bryansk and Smolensk regions where nearly 20% of all outlets of Russia and more than 15% of the population of the country are concentrated.

Today in each of branches there is well equipped logistic complex (the area not less than 2 - x thousands of sq.m) which completely provides to

timely delivery in need of a current of 24 hours in each outlet. Now we plan to place emphasis on development and increase in quantity

in trade offices as bases for expansion of a covering of outlets. TsDK is ready to meet inquiries of trade department and to open such branches in any of

of the cities as soon as in it the economic requirement appears.

In end it would be desirable to tell that behind there is a period of crisis, very difficult for many, and post-crisis adaptation to new conditions and Central

Distribution Company endured it normally, turnover of the company grows (despite crisis), we open new offices and we continue to introduce new technologies and the equipment, we gather personnel and actively we develop client trade base. Crisis taught us to be more exact in technologies and courageous in

sales, and we are grateful for it to this period. We underwent testing for durability and we seek forward - for new achievements.