Stock point is one of PT Nippon Indosari Corpindo's ("NIC) distribution channel. As one of the distribution channels, Stock Points ("SP") play an important role to distribute company's products to provision stores. The service coverage grew in double digits ranging from from 18% to 34% from 2004 to 2007 subsequently. The stores, due to its large numbers, could potentially generate company's sales and most importantly, ensure product availability. Stock points have been performing significantly well among other distribution channels where it contributed 11.5% of NIC's sales in 2007.

Despite its achievement, there is a need to evaluate whether Stock Points are still the most suitable distribution model for NIC to maintain it's suitainable growth. Comprehensive assessments have been conducted to study the suitable distribution model to cover the provisions including the SP operation and SP owners' involvement to achieve sales and return target. The final objectives of these efforts are how to improve NIC's profitability in provisions are through the suitable distribution model.

Qualitative analysis & theoritical frameworks have shown that stock point model is still the preferable option to cover provision markets. Hence, some improvements are required to optimize its operation, sales, and return management. Furthermore, financial data calculation will elaborate this analysis. Our market survey revealed that Sari Roti is still the market leader in terms of product availability where in all main areas it represents. However there are 21.8% more provisions that are still potential to enter into. The improvement recommendation will be made in several critical areas on the existing Stock Point operation. They will include analysis on cost and risk of distribution, type of services the channels can provide to NIC, nature of the product and its shelf life, buying habits of the customers, and the trade practices followed by NIC competitors.



Research Location : PT. Nippon Indosari Corpindo