Competitive Advantages

Location

The firm and its warehouses are located at Bhiwandi. Bhiwandi is a city, in the district of Thane, in the western state of Maharashtra, in India. Bhiwandi is well connected with the rest of the country because of the Mumbai-Agra Highway (National Highway-3), which passes through it. The highway is one the most important in the country and as a result there is a heavy flow of traffic through Bhiwandi, consisting of passenger cars as well as the 18-wheel giant tractor trailers. Bhiwandi is a location from where one can touch different parts of the state as well as the country very conveniently.

Strong Company Image

V.S. Logistics was established in the year 2005 by Mr. Mihir Mehta. The firm has shown a consistent growth from the year of it’s inception. The firm has built up a very strong image in the market as the promoter has gained a rich experience of 8 years in the FMCG Distribution industry.

Strong Brand Portfolio

V.S. Logistics has a very strong brand portfolio due to which it can mitigate the risk, balance uncertainties, create synergies and take advantage of the market opportunities.

Implementing a proactive, long-term brand portfolio strategy can be challenging, particularly given the day-to-day demands of managing individual brands. However, taking a longer and broader view of success to both individual brands and the larger portfolio can help a company build a powerhouse portfolio with virtually unlimited potential.

Operational Plan

V.S. Logistics is a part of the distribution channel of the FMCG Distribution. Distribution channel is defined as a chain of intermediaries through which the product is passed down the chain to the next organization viz. distributor & retailer, before it finally reaches the consumer or enduser.

The distribution network plays a vital role in maximizing sales and market share of any FMCG company as a result of deeper market penetration, efficient product availability and promotion. The penetration efficiency of distribution channel is largely governed by the distributors & retailers. Well managed distribution channels ensure timely availability of forecasted quantities of goods, lower inventory holding costs, minimized lost sales, high substitution sales.

Legal Environment

The firm as it is mainly dealing in Food items, is governed by Food Safety and Standards Authority of India, a statutory body set up by Food Safety and Standards Act, 2006. The firm has obtained license from FSSAI and is renewed on regular basis.

Personnel

V.S. Logistics is owned and operated by its founders, initially working with a employee base of 15 skilled and around 40 unskilled that will cover sales and delivery.

The founder of V.S. Logistics, Mr. Mihir Mehta is a Master of Business Administration (Exports). His core skills and expertise lies in Supply Chain Management, Operations Management and Logistics. The organizational structure is very simple. Mr. Mihir Mehta will be responsible routing, distribution management and delivery systems, customer service, accounting and the general administration of the business.

The goal of V.S. Logistics is to have a team of committed associates who empower each other so that the customer's expectations can be exceeded. Our goal is to offer career opportunities, advancement opportunities and a level of income and benefits that is competitive within the region and job classification. It is our long-term goal to be the preferred employer within our niche of the FMCG distribution industry.

Inventory

V.S. Logistics is a super stockiest of the most of the products/brands in which it deals thus we keep adequate inventory to avoid stock out situations.

Credit Policies

The firm’s current credit terms call for full payment with 21 – 30 days of the shipment.

The business’s credit terms are dictated by the industry standard wherein the credit period is generally 21 – 30 days.

The suppliers do not offer any credit period to settle their dues. Thus as per the normal practice of the industry the suppliers have to be settled on delivery and no trade credit is available.

Credit policy has a direct effect on the cash flow of the business. A credit policy that is too strict will turn away potential customers, retard sales and eventually lead to a decrease in the amount of cash inflows to your business.

On the other hand, a credit policy that is too liberal will attract slow-paying (even nonpaying) customers, increase business's average collection period for accounts receivable and eventually lead to cash inflow problems.

The credit policy designed by the firm helps in attracting and retaining good customers, without having a negative impact on cash flows.