Supply chain management
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Supply chain management

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Supply chain management Supply chain management Presentation Transcript

  • Supply Chain Management Presented to Sir Sarfraz Rashid
  • Group Members • Muhammad Fahad Ali Mirza (121103) • Muhammad Shakeel (121104) • Ahsan Naseem • Muhammad Usman (092306)
  • Objectives of the Study • Delivering controlled and predictable supply outcomes. • Optimizing the decision to source internally from the external supply chain. • To maximize the overall revenue of firm. • Reducing the cost base, controlling quality, improving operational efficiency and protecting the commercial position of the company. • Aligning sub-contracts and processes with customer requirements. • Delivering controlled and predictable supply outcomes.
  • Benefits of the Study • Balancing Supply & Demand and becoming able to forecast future Demand and Supply. • Improving our supply chain decision making. • Practical Learning through Project work. • Exposure to different companies in there supply chain polices. • Enhancing Decision making skills through practical visit in the company. • Becoming able to differentiate and selecting the best available supply chain process. • Learning the balance between cost and revenue through Supply Chain. • Marking the difference between the procurement and inventory management. • Learned the supply chain profit is the total net profit. • Company Profit margins are linked with the Supply Chain.
  • Nestle Nestle is the largest food and beverage company in the world with operations in 130 countries. It has 6,000 brands, with a wide range of products including dairy products, coffee, bottled water, beverages, chocolate, ice cream, infant foods, performance and healthcare nutrition, culinary, frozen and refrigerated foods, confectionery and pet food.
  • Olper’s Milk The company was launched in 2004 under the Banner of Engro, the Company has established state-of-the-art processing units in Sukkur and Sahiwal. Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been successfully launched under the helm of Company’s dairy products. To support these brands and their highest standards of quality, Engro Foods has invested heavily in milk processing and milk collection infrastructure.
  • Haleeb Milk Haleeb Foods Ltd. was incorporated on July 1st, 1984 with a capital of Rs. 46 Million under the name of Chaudhry Dairies Limited which was renamed as CDL Foods Limited and now it is known to be as Haleeb Foods Limited. At that time it had the capacity of producing 80,000 / liters of milk per day having total area of 32 acres. Initially 150 people were employed at the plant.
  • Milk Industry of Pakistan
  • Industry Market Share Packed Milk 40% Fresh Milk 60%
  • Milk From Rural Area to Tetra Pack
  • Partnership with Milk Suppliers • • • • Partnership with local Suppliers Milk Collection & Technical Assistance Teams Corporate Social Responsibility Milk Collection on a average of Two times in a Day • Quick test before transporting the Milk
  • Parameters for Supply Chain Management • • • • • • • • • Logistics Warehouses Distribution Network Milk Collection Milk Processing Customer Relation Management Inventory Management Cost Comparison Product Visibility
  • Logistics of Nestle • Inbound logistics: Inbound logistics used for milk collection from different milk collection Centers. • Outbound logistics: Movement of Milk from factory to Different warehouses Size No. of cartoons 1 liter 1092 200 ml 1815 1.5 liter 1040 500 ml 1750
  • Logistics of Olper’s • Inbound logistics Vehicles are generally used by the Olper’s for the collection of the milk • Outbound logistics 80% Dedicated for Distribution & 20% are especially designed for Northern Areas. 3rd party is also used for logistics Size 1 Liter 250 ml 1.5 Liter 500 ml No. of Cartoons 939 1552 890 1497
  • Logistics of Haleeb • Inbound Logistics Long vehicles are used for Milk Collection. Haleeb has its own Farms & centralized cooling truck are used for transportation • Outbound Logistics Mostly uses 3rd party for transportation & warehouse facilities. They have very few or limited Outbound logistics
  • Distribution Network of Nestle • Divided into Two channels Direct Channel (Sales Promotions) Indirect Channel (Retail Outlet 80% consumption is from Retail outlets) • Divided into Three Geographical Area Northern Zone (Islamabad, Peshawar & Jhelum) Central Zone (Lahore, Faisalabad, Multan, Gujranwala & Sahiwal) South Zone (Karachi, Hyderabad, Sukhur & Quetta)
  • Distribution Network of Olper’s • Divided into Three Geographical Areas North Zone(Rawalpindi, Peshawar & Outstation) Central Zone (Lahore, Gujranwala & Multan) South Zone (Karachi, HUB & Nawabshah)
  • Distribution Network of Haleeb • Wide Range of Distributors (150+) • Oldest Company with Highest Number of Distributors • Focus on Rural Areas
  • Warehouses of Nestle • Three Major facilities Murdkey Gujranwala Sadoki • Nestles uses Decentralized warehouse system & developed small warehouse facilities in ever location where the product is available
  • Warehouses of Olper’s • Olper’s have Three Warehouse facilities in Pakistan Rawalpindi (Central warehouse ) Sukhur (1.6 million liter capacity & Average daily dispatch of 350,000 liter milk) Sahiwal (4 million liter capacity & Average daily dispatch of 400,000 liter milk)
  • Warehouse of Haleeb • Warehouses are located Adjusted to the factory in Bhai Pheru Rahim Yar Khan
  • Inventory Management Every Company keeps some amount of Inventory with themselves to overcome any unexpected increase in Demand or in any other abnormal situation All three companies Nestle, Olper’s & Haleeb uses FIFO (First in First out) system
  • Milk Processing of Nestle, Olper’s & Haleeb • • • • • Milk Reception Mixing Heating & Cooling Standardization Pasteurization
  • Milk Collection System of Nestle, Olper’s & Haleeb • Step 1 Farmer Milks the animals twice a day • Step 2 Transferred to Reception station in area in Aluminum Chums • Step 3 Initial Testing of the Milk • Step 4 Poured into the Tanks & checked for the Quality • Step 5 Transferred to the factories & Processed into Yogurt, Powder Milk & other Dairy Products
  • Customer Relation Management of Nestle
  • Customer Relation Management of Olper’s
  • Customer Relation Management of Haleeb • No defined Customer Relation Management policy • Varies person to the person • Not to good relations with the farmers • Currently developing the CRM policy
  • Product Visibility • Nestle High visibility mostly in urban area because of Decentralized Warehouses and vast Distribution system • Olper’s Brand of Engro Food which is one of the leading Company in Pakistan. Fair amount of visibility because of Centralized system
  • Continues….. • Haleeb Low visibility in urban area but high product visibility in rural areas. Old Distribution system and links. High amount of Distribution network in Rural Areas.
  • Cost Comparison of Nestle, Olper’s & Haleeb In cost comparison no thing is defined. All the three companies are inquiring same amount of cost with respect to there system. Cost is also affected by the systems used. If one company is inquiring nominal cost in warehouse then the distribution cost will be high & vice versa
  • Comparison of Nestle, Olper’s & Haleeb Parameter Olper’s Nestle Haleeb Logistics Low cost High cost High cost Warehouses High cost Low cost Low cost Dual Channel. Direct & Indirect Divides into three Geographical Area Biggest Distribution Network Customer Relation Management High High Low Product Visibility High High Low Cost Comparison By Products By Products affects the Cost Low as effect of own farms Milk Collection Same Same Same Milk Processing Same Same Same Inventory Management FIFO FIFO FIFO Distribution Network
  • Recommendations • • • • • • • • • • • Maximum utilization of the Resources. Technological factors. By Products also add value to Supply Chain surplus. Suppliers should be Reliable and should provide quality product. Flexibility should be there. Market Worth should be strong in terms of Farms or Milk providers. Transportation cost should be nominal. Quality should be the first Priority. Packaging must be according to the standards & reliable. Proper veterinary doctors should be hired for the better productivity. Proper Examination of the system according to the international standards. • Milk processing and collection should be according to the health and safety standards (OSHA).
  • Thank You for Your Time