Seth Dhaniram – C&FA

Abstract

The case ventures to explore the typical distribution channel in the Indian market. The case revolves around his company, Logistics Solutions, a 100-year-old trading and distribution firm, which provides carrying and forwarding services to JOSH Denims, a leading manufacturer and marketer of denim garments. Over a year, an entire tier in the JOSH’s supply chain was eliminated and the C&FA’s direct customers exploded from 10 distributors to 180 retailers. This change had direct implications on the cost and complexity of the C&FA operation. Dhaniram is left with the option of either continuing the agency operation with some renegotiation, or giving it up. This case highlights the significance of each channel partner in the supply chain, and also emphasizes the implications of eliminating a link in the supply chain to other channel partners. It also introduces some subtle aspects like family owned businesses, the role of networking, and the unique value added by the transporters.