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  • 1. MINI REPORT ON SUPPLY CHAIN OF GROUP MEMBERS Wardah Mujeeb (5149) Mahvash Waqar (4602) Ali Yousuf (4675) Ammar Jaffer (4683) Taha Millwala (4685) Section: - Sunday (3:00 to 6:00 pm) Course: - Supply Chain Management Instructor: - Mr. Tabish 2
  • 2. Date of Submission: - 7th March, 2010. TABLE OF CONTENTS  Background and Vision statement Page 3  Products Page 4  Values Page 4  Mission of Supply Chain Page 6  Procurement Policies Page 6  MANUFACTURING Page 8  DISTRIBUTION Page 9  Information Page 10  Functions of SAP Software Page 11  Advantages of SAP Software Page 11  Ware Housing Page 12  Appendix Page 13 3
  • 3. BACKGROUND: In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In the 1840s, the firm began selling individual cakes of soap in uniform weights. In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first toothpaste, aromatic toothpaste sold in jars. His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. By 1908 they initiated mass selling of toothpaste in tubes. His other son, James Boorman Colgate, was a primary trustee of Colgate University (formerly Madison University). In Milwaukee, Wisconsin, the "B.J. Johnson Company" was making a soap entirely of palm and olive oil, the formula of which was developed by B.J. Johnson in 1898. The soap was popular enough to rename their company after it - "Palmolive". At the turn of the century Palmolive, which contained both palm and olive oils, was the world's best- selling soap, and extensive advertising included The Palmolive Hour, a weekly radio concert program which began in 1927. A Kansas-based soap manufacturer known as the "Peet Brothers" merged with Palmolive to become Palmolive-Peet. In 1928, Palmolive- Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company. In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name. VISSION STATEMENT: Our three fundamental values—Caring, Global Teamwork and Continuous Improvement—are part of everything we do. 4
  • 4. VALUES Colgate-Palmolive’s values are following  Explore the initiatives  Processes and policies that help continue to strengthen Colgate- Palmolive and the communities where they work and live.  Provide safe and quality products of value to consumers  Increase shareholder value  Offer opportunities for personal and professional growth to all Colgate people  Fulfill corporate social responsibilities as a member of the global community PRODUCTS 1:- ORAL CARE  Tooth Pastes  Sparkle  Tooth Brushes 2:- PERSONAL CARE  Beauty Soap - Palmolive Natural  Carbolic Soap - Azadi  Skin Germ Protection Soap – Protex 5
  • 5. 3:- SURFACE CARE  Max Bar  Azadi Dish Bar  Max Scourers  Max Liquid  Max Antibacterial Page-1 4:- FABRIC CARE  Brite Maximum power  Express Power  Bonus  Softlan 6
  • 6. MISSION OF SUPPLY CHAIN OF COLGATE- PALMOLIVE Colgate-Palmolive’s mission of supply chain is to  reduce total delivered cost  extend technology resources  develop excellence in purchasing  Logistics and sourcing processes PROCUREMENT AT COLGATE-PALMOLIVE DECISION CRITERIA:-  Fair and uniform consideration is given to suppliers. Buying behavior is based on following objective criterias  Price  Quality  Suppliers Reliability  Suppliers Integrity  Innovation  Commitment to Improve continously POTENTIAL SUPPLIERS:- COLGATE-PALMOLIVE is expecting following things from the potential suppliers  Creativity  Value Addition  High focus on Customer service  Use of Technology 7
  • 7. INDIRECT MATERIALS Indirect are non-production materials. This category encompasses a wide range of products and services. There is significant potential for business for suppliers capable of delivering savings, efficiency and simplification. Examples of indirect materials and services are:  Temporary services  MRO  Office supplies  PCs  Relocation  Travel  Express mail  Marketing & Advertising Goods and Services Page-3 PACKAGING MATERIALS The quality of packaging materials is the key to finished product on-shelf presence. Following are the types of packaging materials needed.  Bottles  Tubes  Caps  Corrugate  Folding cartons  Pumps  Films  Displays  Aerosol cans  Labels 8
  • 8. RAW MATERIALS Colgate-palmolive purchases the highest quality raw materials for use in all of their products which include:  Surfactants  Sweeteners  Emulsifiers  Humectants  Abrasives  UV Absorbers  Brighteners  Colorants  Thickeners  Preservatives SUPPLIER DIVERSITY PROGRAM:- Colgate-Palmolive strive to develop relationships with suppliers which will help them to exeed its stakeholders expectations for quality, cost effectiveness and innovation. They implement best practices and tools including supplier managed inventory, supplier certificatrion, cost modeling and web-enables transactions. They have Supplier Diversity Programs that gives them high access to a rich pool of minority-owned and women-owned business. MANUFACTURING AT COLGATE-PALMOLIVE They have two manufacturing plant one is in HYDRABAD and second is in HUB. In Hyderabad they manufacturing all the toothpaste production and other product are manufactured in hub. 9
  • 9. DISTRIBUTION AT COLGATE- PALMOLIVE LOGISTICS: They have their own fleets for transportation of goods. But their distributors some time source the transportation and the decision for the selection of third party logistic is decided on the basis of term and condition and from the budget of distributor.  Colgate-Palmolive addresses the total movement of materials and products through the supply chain starting with our vendors and concluding with the customer, with the goal of optimizing cost and service.  They support the application of product replenishment based on “pull” strategies as these come close to addressing true customer demand.  They use strategic modeling tools as part of continuous improvement studies and assessments to evaluate and determine least cost.  It adapts best practices in a way to recognize differences in needs between emerging, developing, and developed markets in which they sell their products.  Identification and application of integrated enterprise-wide information management systems is highly influenced.  Participation in key industry groups to broaden skills and to benchmark best practices is highly aimed.  Identification and alignment with select global third-party providers to jointly seek logistics efficiencies. 10
  • 10. DISTRIBUTION CENTRES: They have approximate 10-14 distribution centre in Karachi. Distributor use SHEHZOOR most of the time in vehicle. INFORMATION MANAGEMENT AT COLGATE PALMOLIVE: SAP SOFTWARE:- Colgate-Palmolive has been managing the distribution centers of more than 200 countries and territories successfully with SAP® software for years. It later turned out SAP warehouse Management Software with a focus on task and resource management functionality. Their strong focus is that whatever volumes are going through a warehouse today, they want to maximize them. SAP software was implemented to enable faster throughput of higher volumes through their supply chain to the end customers. Using the SAP warehouse management software the company can automatically manage;  Warehouse tasks and the resources  Users and equipment required to perform the tasks  Assesses current workload  Physical location of resources to continuously optimize the sequence in which tasks are processed  Best resource is used for the job because each step is done at the right time  Warehouse planners and supervisors can override sequences if delivery priorities change 11
  • 11. FUNCTIONS OF SAP SOFTWARE:-  SAP software electronically assignes warehouse workers for the unloading task via terminals mounted to their equipment.  SAP software tells them where to place the most assessable handling unit.  SAP software directs the workers to the pick and drop zone if they cannot put the units into high rack storage.  SAP assigns a high reach boom operator to bring the goods to a specific location.  If the inventory falls below a certain level the software automatically creates a transfer order prompting the user to pick a pallet and replenish the bin. ADVANTAGES OF SAP SOFTWARE:-  Streamlined put-away and picking processes  Optimized equipment use  Improved inventory accuracy to greater then 99%  Eliminated configuration, testing of custom solutions  Utilize equipment more accurately  Accelerated outbound Shipping 12
  • 12.  Tasks are automatically assigned to multiple people  Increasing supply chain efficiency WAREHOUSE AT COLGATE-PALMOLIVE Facilities: They have only 1 ware house which is in korangi. AT DAOWOOD CHOWRANGI DECENTRALIZATION:- Colgate-Palmolive is focusing on the process of decentralization In a decentralized environment they control planned downtime for maintenance. The decentralized SAP warehouse management application communicates directly with the SAP business enterprise software. The information flow includes outbound and inbound deliveries, material and vendor master data, and batch management data. When a sales order is entered into the SAP business software, the order is converted to a delivery and sent to the SAP warehouse management software via application link enabling (ALE) to create the transfer order and launch task and resource assignment. Once delivery is complete, another message goes back to the central system. Colgate is next looking at voice enablement to match warehouse tasks with voice prompts and responses. It also wants to take advantage of warehouse management functionality for cross- docking to Move goods directly from receipt to shipment without storing; yard management to manage doors and trailers; and value-added services for things like customer-specific packaging. 13
  • 13. APENDIX: ARTICLE # 1: Colgate-Palmolive: Siemens to implement SAP ERP software solution KARACHI (December 24 2008): Siemens to implement SAP ERP software solution at Colgate-Palmolive (Pakistan) Limited. Siemens considered as partner of choice for fast growing companies planning establishment of solid IT foundations to fuel business growth. An agreement was signed at a ceremony held in Karachi. Zulfiqar Ali Lakhani, Managing Director Colgate-Palmolive (Pakistan) and Adnan Bashir Khan, Head of BU ITS Siemens Pakistan signed the contract on behalf of their respective organisations. As part of this project, Colgate-Palmolive Pakistan, a leading name in consumer products sector with reputed household brands as Colgate Toothpaste, Max, Palmolive Naturals, Brite Maximum Power and many other leading brands, will implement SAP ERP modules including Financials, Supply Chain and Plant Maintenance. This software will provide optimum tracking and management of plant commissioning activities as well as better control over procurement and supply chain operations, enabling increase efficiencies, better supply chain visibility and quicker decision making. Siemens Pakistan would offer complete SAP consulting and training services in this regard to Colgate-Palmolive (Pakistan) project team. SAP is the world's no. 1 ERP software system and Siemens, the first company to implement SAP ERP in Pakistan is also the leading SAP partner having to its credit the maximum number of SAP ERP implementations locally. Colgate-Palmolive (Pakistan) Limited, with over two decades of brand excellence has built a reputation as a successful Consumer Products company with the highest ethical standards. 14
  • 14. ARTICLE # 2: “We implemented the SAP software to enable faster throughput of higher volumes through our supply chain to the end customer.”Brian Madel, Senior Manager AMSSO Supply Chain, Global IT,Colgate- Palmolive Company COLGATE-PALMOLIVE Colgate Uses SAP® Software for Task and Resource Management to Speed Goods through the Supply Chain Colgate-Palmolive Company (New York) is a leading global consumer Products Company, selling brands like Colgate, Palmolive, Mennen, Soft-soap, Irish Spring, and Hill’s Science Diet and Hill’s Prescription Diet pet foods in more than 200 countries and territories. A lot of product moves through its warehouses, and Colgate has been managing these distribution centers successfully with SAP® software for years. It just rolled out SAP warehouse management software, with a focus on task and resource management functionality, to raise its game even higher. “Our goal – always – is that whatever volumes are going through a warehouse today, we want to increase them,” says Brian Madel, senior manager AMSSO supply chain, global IT at Colgate-Palmolive. “We implemented the SAP software to enable faster throughput of higher volumes through our supply chain to the end customer.” Using the SAP warehouse management software, which is now part of the SAP™ ERP application, the company can automatically manage warehouse tasks and the resources – users and equipment – required to perform those tasks. The software assesses current workload and the physical location of resources to continuously optimize the sequence in which tasks are processed, so each step is undertaken at the right time and the best resource is used for the job. With complete transparency of Operations, warehouse planners and supervisors can override sequences if delivery priorities change. Colgate rolled out the solution at high-volume distribution centers in Latin America. The SAP warehouse management software initiates the transfer orders for materials, indicating start and end points. The task and resource management functionality then breaks the transfer order into discrete, 15
  • 15. optimized processes. By the time a truck pulls into the distribution center and backs up to the dock, warehouse workers are ready – after having been electronically assigned the unloading task via terminals mounted to their equipment and “talking” over an RF network to the SAP warehouse management software. The workers scan the most accessible handling unit on the trailer, and the software automatically tells them where to place it. If they can’t put it away with their equipment – say, into high-rack storage – the system will direct them to a pick-and-drop zone, and then assign a high- reach Boom operator to bring the goods to a specific location. “With the new software, we have been able to streamline our process for replenishing distribution centers from our manufacturing plants,” Madel says. “We’ve also streamlined replenishment within the warehouse. We set up the task and resource management software to monitor each bin. When inventory falls below a certain level, the system automatically creates a transfer order, prompting a user to pick a pallet and replenish the bin; it’s a fully automated process to continuously restock inventory. We’ve also accelerated outbound shipping; tasks are automatically assigned to multiple people working on different pieces of equipment in different areas of the warehouse, so they all pick simultaneously for the same delivery.” That means a faster supply chain. Says Madel, “We’ve increased volumes for pallet and case picking throughout our warehouses. We have streamlined our put-away and picking processes. We now utilize equipment more efficiently. We’ve improved inventory accuracy to greater than 99%. And there are even more benefits we expect to realize. We feel we are just scratching the surface of what the software can do.” Decentralization = High Performance Colgate runs the warehouse management software on a separate server from the corporate SAP enterprise resource planning application. Says Madel, “Each warehouse user is logged onto the warehouse management system; RF processes are extremely performance dependent. The last thing we want to do is slow down our people. If they scan a handling unit and have to wait for the system to come back and tell them what to do, we lose productivity. Separating warehousing from other SAP software functions greatly improves performance from an end-user stand-point. In a decentralized environment, we also control planned downtime for Maintenance – this is crucial for warehouses that operate 24x7.” The decentralized SAP warehouse management application Communicates directly with the SAP business enterprise software. “The communication is very reliable and very robust – there are Absolutely no issues,” Madel says. The information flow includes 16
  • 16. Outbound and inbound deliveries, material and vendor master Data, and batch management data. When a sales order is entered into the SAP business software, the order is converted to a delivery and sent to the SAP warehouse management software via application link enabling (ALE) to create the transfer order and launch task and resource assignment. Once delivery is complete, another message goes back to the central system. Colgate is next looking at voice enablement to match warehouse Tasks with voice prompts and responses. It also wants to take advantage of warehouse management functionality for cross- docking to move goods directly from receipt to shipment without storing; yard management to manage doors and trailers; and value-added services for things like customer-specific packaging. Says Madel, “We will continue to further leverage our SAP software for warehouse management to improve our business performance.” www.sap.com/contactsap50 083 026 (07/03) Printed in USA. © 2007 by SAP AG. All rights reserved. SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP Net Weaver, Duet, Partner Edge, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) For informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with Respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty Statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. Company • Name: Colgate-Palmolive Company • Location: New York • Industry: Consumer products 17
  • 17. • Products and services: Oral, personal, and home care; pet nutrition • Revenue: US$11.4 billion • Employees: 36,000 • Web site: www.colgate.com • Partner: SAP® Consulting Challenges and Opportunities • Increase warehouse throughput • Replace custom RF transactions with standard, flexible SAP solution • Separate warehousing from enterprise resource planning operations for performance intensive environment Objective Install high-performance, decentralized solution for task and resource optimization SAP Solution and Services SAP software for warehouse management, now a part of the my SAP™ ERP application Implementation Highlights • Rolled out software in 10 months to high-volume distribution centers in Latin America • Used internal project management process • Worked with the business owners to understand processes during as-is analysis • Developed scenarios, reviewed them with the business users • Tested real-life scenarios Why SAP • Colgate-Palmolive’s previous experience and satisfaction with SAP software • The software’s comprehensive, flexible, standard functionality Benefits • Increased volumes for pallet and case picking • Streamlined put-away and picking processes • Optimized equipment use • Improved inventory accuracy to greater than 99% • Eliminated configuration, testing of custom solutions Existing Environment SAP software for enterprise resource planning Third-Party Integration • Database: Oracle 18
  • 18. • Hardware: IBM • Operating system: IBM AIX 19

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