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    unilever supply chain network and advertising unilever supply chain network and advertising Document Transcript

    • REPORT ON SUPPLY CHAIN NETWORK & ADVERTISING CAMAPGINS OF UNILEVER BY SEHRISH KHAN ASMA SIDDIQU MUHAMMAD AMEEN MUHAMMAD UMAIR AZAM ABBASI BBA 6TH 2013
    • 1 ACKNOWLEDGEMENTS This report has contributed a major accumulation to our knowledge of the topic. Weare Thankful to Allah for making it possible for us, and to our course instructor whoSupported us throughout this research We are also thankful to the management of Lever Brothers Pakistan Limited, RF,especially Mr. NASIR ALI KHAN who provided useful guidance and information forunderstanding the practical work of the organization to understand the global presence of Unilever Company.
    • 2 TABLE OF CONTENT Introduction Pg.4-8 Product Lines of UniLever Pakistan Limited Pg.8-13 Management Activities in Lever Brothers Pakistan Limited Pg. 13 Operations of Lever Brothers Pakistan Limited Pg. 1419 Issue of Packing and Raw Material Pg. 1922 Supply chain management Pg. 2338 Unilever advertising campaigns Pg. 3843 Conclusion Pg.44 Reference Pg. 45
    • 3 EXECUTIVE SUMMARY How global branding enables companies to reach the global market through their distribution methods for this aspect they capture electronic media for the purpose e-procurement, e-sourcing and local aspect of reaching the market and proving their customer quality product to reach the highest level of success and growth is the crux of this thesis. It basically revolves around the global success of unilever and how it helped the company to be the best in the business, even in the global recession. The introduction to the topic and the company itself and then the research and findings about the company‟s global scenario makes it up. The analysesthat have been undertaken are the quality of raw material their availability on time information about the stock distribution channels, market, electronic media tools and customers. Abrief survey is also represented which highlights the consumer perception of globalbrands. The global marketing strategy as well as its advertising has been discusses. Besides that some overview about economic crises in all over the world has been giventhat how economic crises has spread, and it impacts unilever as well, but how unilevercope the economic crises. A few recommendations to further the success of Unileverare made to conclude the report.
    • 4 INTRODUCTION Unilever Pakistan, one of the most successful consumer goods manufacturer in Pakistan, is now facing another issue before a completing its exit from stock exchanges. The global food giant Unilever owns a majority 75% stake in Unilever Pakistan and 4 months ago in November – they announced and planned to buy back the remaining shares that are listed on stock exchanges in Pakistan, a move that is aligned with Unilever‘s global strategy of consolidating its operations in Asia and Africa. According to sources close to the matter, this delisting process will help the Company in lowering its cost of capital. It will be interesting to note that the delisting does not bar existing shareholders from holding on to their share in the Company‘s equity. The buyback offer is only an option – a road which minority shareholders may or may not take. Although this delisting process of Unilever Pakistan also received mixed response from influential minority stakeholders who balked on the proposed buy-back price of Rs 9,700 per share. The New York based hedge fund Acacia Partners, which holds 543,000 shares representing a stake of 4.1% in Unilever Pakistan, wrote the following strong-worded letter to all stock exchanges in Pakistan. ―We believe the proposed de-listing of the company (Unilever Pakistan) would, if approved, be a great tragedy for minority investors, the stock exchanges of Pakistan and the country overall‖ Acacia Funds also urged that the exchange refuse the buy-back price offered by Unilever. The minority shareholder demands two to three times the price offered by Unileverare quoted at the stock exchange of several European countries. They deal in all kinds of products from animal foodstuff to foods and detergents plus other personal and consumer products. Unilever has its subsidiaries in over 80 countries of the world, to which it spreads its vast knowledge and resources. William Lever (its originator) commences business in England as a grocer. He established Lever Brothers in 1827 in England Sunlight was the first product of Lever Brothers, which makes the beginning of the marketing of branded products at the same time Margarine Uni was established in Nether Land by Simon Van Berg and Anton Jurgens. These two companies in term of:  Buying raw material  Selling finished goods Consequently both the companies losing out money in term of profit These problems led to think of the mergers in 1930. These two companies merged together and renamed the business as Unilever PLC / the word UNI is taken from margarine Uni and Lever is taken from Lever Brothers. Its head quarter was established in England and Rotter Dam.
    • 5 1 What UniLever is? Unilever is dedicated to meeting the everyday needs of people everywhere. Around the world UniLever foods and home and personal care brands are chosen by many millions of individual consumers each day. Earning their trust, anticipating their aspirations and meeting their daily needs are the tasks of UniLever local companies. They bring to the service of their consumers the best in brands and both UniLever‘s international and local expertise. For more than 70 years Unilever has been providing consumers with quality products and services. UniLever has a portfolio of global, regional and local brands. Some, such as Bertolli,Dove, Hellmann‟s, Lipton, Lux, Magnum, Omo and Vaseline, are popular around the world. Others are the first choice for consumers in particular countries. As traditional structures and lifestyles around the world are being rapidly transformed, Unilever continues to respond to consumers‘ present needs and, at the same time, to anticipate their future ones. Our strength lies in the deep understanding we have of local culture and markets. Unilever‘s strategy is to focus research and development and marketing on our top performing brands, that is, those that are most in demand from consumers. Through our extensive knowledge of trends identified today, we will continue to develop our brands to meet the needs of our consumers tomorrow. , feel and smell great. UniLever products are at home everywhere: favorites with consumers throughout the world, from the emerging markets of Asia and Latin America to the developed economies of Western Europe and North America. UniLever meets the needs of consumers around the world, in both new and established markets. Consumers vary from country to country in their preferences and habits and UniLever adapt many of its brands to suit local tastes. For example, among UniLever‘s many teas, it produces around 20 separate brands of black tea specifically tailored for consumption in over 20 different countries and UniLever is constantly sharpening the flavors to suit all its local markets. In some societies, consumers have traditionally washed up by sponging ash, sand or detergent onto their dishes, before rinsing. Learning from these established practices, we developed our Vim dish wash bar, to bring improved cleaning to existing washing routines. Shopping habits also vary and the availability of our brands is a key concern of local managers. UniLever adapt the distribution of its brands to suit local realities. In Europe, customers benefit from swifter, easier dispatch through online ordering of frozen foods. While, in Tanzania, UniLever has piloted bicycle delivery of products to villages inaccessible to motor transport. Building on a presence that in places stretches back nearly a century, it keeps closely in tune with local consumers. UniLever is, in every sense, a multi-local multinational. Unilever‘s research and development teams help to anticipate and meet consumer needs. UniLever‘sresearch and development expertise allows to anticipate the evolving needs of consumers and to create the innovations to meet them. Internet technology is improving the way UniLever share
    • 6 best practice and innovation around the world. UniLever‘s R&D activity is focused on six major laboratories and a network of innovation centers around the world. Recent successes have demonstrated UniLever‘s practical ability to respond to consumers and bring innovations to the marketplace. They include laundry tablets, which it has rolled out in more than 30 countries; Lipton Cold Brew tea bags, which take away the need to boil water when making ice tea; and its cholesterol-owering spreads, which have been widely rolled out under the Take Control, Becel and Flora brands. UniLever continues to look for new innovation opportunities. For instance, UniLever research into the human genome means they can now decode the make-up of skin. This can reveal such secrets as an individual‘s tendency for dryness or their skin protein mix. Such knowledge forms the foundation for new, more personal products. UniLever‘s global IT system helps them to share information around the business and to use their scale and scope to meet consumer needs and reduce their costs. UniLever drives to provide better value for customers and consumers, they have always valued the sharing of information across product sectors and geographical locations. IT has boosted this knowledge-sharing culture, allowing us to make the most of the vast amount of Information held by our people around the world. UniLever‘s computer networks provide over 90,000 employees worldwide with common tools for sharing information –allowing them to deal with millions of electronic messages every working day. They also have a Unilever Intranet, which helps them to manage innovation and best practice around the world. Global teams, for example, pool information, marketing success stories and knowledge via dedicated sites, making this knowledge available to UniLever‘s people locally, wherever they are. UniLever is committed to doing business in a responsible and sustainable way. In partnership with organizations around the world, UniLever works to reduce their impact on the environment and to act as a responsible corporate citizen. Unilever believes in sustainable development – meeting the needs of the present without compromising resources for future generations. This commitment begins and ends with their consumers. UniLever believes that by constantly evolving to meet their changing needs, they can continue to develop their business in both a profitable and an environmentally sustainable way. In working towards sustainable development, they focus on three areas that are directly relevant to their business. These are fish conservation, clean water stewardship and sustainable agriculture. An example of their work in the area of fish conservation is the Fish Sustainability Initiative, which aims to meet their objective of sourcing all supplies from sustainable fisheries by 2005. Filegro, an Alaskan salmon-based dish, was our first product to come from a sustainable fishery, as certified by the Marine Stewardship Council. In clean water stewardship, as in other areas, UniLever joins with partners to achieve maximum impact. For example, through their sponsorship of the Global Nature Fund‘s Living Lakes initiative, they work with a network of private and government organizations to help communities better manage their local lakes and wetlands. In sustainable agriculture, UniLever has set up of an expert external advisory board. Its task is to advise and inform its business and suppliers on new sustainability standards. Unilever‘s commitment to corporate social responsibility is an integral part of their operating tradition. It is outlined in their Corporate Purpose and in their Code of Business Principles. It finds practical expression in the worldwide standards they have set their selves: to ensure the health and safety of Unilever people at work, to secure the quality and safety of products and to minimize the
    • 7 environmental impact of their operations. UniLever aims to be as professional in their management of its social responsibilities as they are in any other area of business. UniLever recognize the need to be explicit about what their social commitment means in practice: to articulate their policies, and to demonstrate its performance. UniLever reports on their approach and progress in its Social Review. Unilever has a tradition of support for the local community wherever it operates, in particular in the areas of education, environment and health. For example, in India access to oral care is limited, with few dentists per head of population. In 2000, UniLever‘s oral health and hygiene education programme brought advice and care to over 2.5 million schoolchildren. In China, Unilever has sponsored Qinghai province‘s first Art Hope School. In a region where few can afford the cost of basic schooling, it offers the opportunity of a general education and free tuition in traditional dance, music and modern art. Internet technology is providing a two-way communication channel, helping UniLever to get to know its consumers better. Competition in markets is intense. To further develop their relationships with consumers and communicate the benefits of their brands, UniLever uses a variety of media, not only highly creative television advertising campaigns but also new one-to-one communication via the internet. UniLever brand communication has always made the news. In the 1950s, they produced the first ever television commercial in the UK. As the 21st century began, they screened the UK‘s first interactive TV commercials, marketing their Colman‟s and Oliviobrands. 1.1 Lever Brothers Pakistan Limited Lever Brothers Pakistan Limited is largest fast moving consumer Products Company in Pakistan. Lever Brothers Pakistan Limited is a part of UniLever- a global company. Lever Brothers Pakistan Limited is producing more than 50 brands in Pakistan. Mission Statements 1: We are the leading consumer product company in Pakistan, a multinational with deep root in country. 2: We attract and develop high talented people who are excited, empowered and committed to deliver double digit growth. 3: We serve every day needs of all consumers every where for food, hygiene and beauty through brands products and service that deliver the best quality and value. 4: We strive to remain and every simple and enterprising business. 5: We use our superior consumer understanding to products breakthrough innovation in brand and channel. 6: Our brands capture the hearts of consumer through outstanding communication. 7: Through managing a responsive supply chain we maximize value from supplier to customer. 8: We are exemplary through our commitment to business ethics, safety, health, environment and involvement in the community Statement of Chairman& Chief Executive of Lever Brothers Pakistan Limited ― I am quite convinced that 2002 is poised to be a passionate year for us, which is why we should
    • 8 reflect on some exciting possibilities it has to offer: Power of teamwork, based on truth and trust. Passionate pursuit to grow and win. Fun environment at work, inspired by enterprise culture. Brands which rank highest in consumer‘s minds and hearts. System that transform the shape of our business. The challenge for us is to liberate our energies to help grow our business, and to lead and deliver the results that we have committed ourselves to. I would encourage everyone to believe in and grasp the ―art of possibility‖ and focus on the Must Wins for our business.‖ 2 Product Lines of UniLever Pakistan Limited PERSONAL WASH TOILET SOAPS Lifebuoy (carbolic soap) Lifebuoy Gold (2 varieties) Lux (4 varieties) Rexona (3 varieties) Liril (2 varieties) Breeze FABRIC AND HOME CARE FABRIC WASH Ultra Surf Surf micro Surf Excel Power Surf Sunlight Washing Powder & Soap Wheel HOME CARE Vim Dish Washer/Scourers Vim Bar Vim Powder PERSONAL PRODUCTS HAIR CARE Sunsilk Shampoo (4 varieties) Lifebuoy Shampoo Harmony Soap
    • 9 SKIN CARE Fair & Lovely skin cream and lotion Ponds skin cream Ponds talc DENTAL CARE Close-up Tooth paste Pepsodent Tooth Paste OIL AND DAIRY BASED FOOD BANASPATI Dalda COOKING OIL Dalda Cooking Oil (Soya Bean) Dalda Sunflower oil Planta MARGARINE Blue Band INDUSTRIAL FATS A whole range of products for the bakery & oils for the industry. TEA LEAF TEA Yellow Label Yellow label Danedar Richbru Top Star Taaza Leaf Supreme DUST TEA Pearl Dust Ruby Dust A1 MIXTURE TEA Taaza ICE CREAM Cornetto (3 varieties) Feast (2 varieties) Feast Stickless Top Ten Star Cup (4 varieties) Callipo Split Fruiti Peddle Pop (3 varieties)
    • 10 3-D Solo (3 varieties) Polka Cup Panda Dracula Family Packs 2.1 PRODUCTION UNITS Different factories of LBPL are operating in different areas of Pakistan. Brief information about these units is given below: RAHIMYAR KHAN (RF) The largest and the oldest of LBPL is situated in Rahim Yar Khan. Basically at this factory personal products, soaps, glycerin and dish wash bar are manufactured. KARACHI TEA FACTORY (KF) This factory was established in 1950 and it is situated in west Wharf area. Formerly it was owned and managed by Lipton Pakistan Ltd. In the last 43 years many modifications are made here. And the factory has expanded considerably. In this factory only tea is produced and packaged. KARACHI EDIBLE FACTORY It is situated on Hub River in S.I.T.E. A&B Oil Industries established the factory in 1958 and the production of the vegetable oil began in 1962. In 1965 Lever acquired the factory. Banaspati, cooking oil and margarine are produced here and distributed all over the country. ICE CREAM FACTORY This is recently established on Multan Road in district Kasur. The plant was commissioned in 1994 having the most modern and latest machines installed. Walls Ice cream is being manufactured here. LBPL, when acquired the Polka, also purchased its two factories, one in Lahore and other in Karachi. BEST FOODS FAISALABAD Recently LBPL has acquired Rafhan Maize Products from Best Foods International. TEA PROCESSING PLANT (MANSEHRA) The new Lever Black Tea Processing Plant has been set up at Dhodial, 12 km north of Mansehra on the main Karakoram Highway on 2.5 acres of land with the Processing Plant built-in area of 11,800 sq. ft. The plant is expected to process 50 kg per hour or approximately a ton of made tea a day. The plant has cost Rs. 11 million whereas Rs. 12 million has been spent on the building and infrastructure. The plant has been inaugurated on 7th of September, 2001. 2.2 Lever Brothers Pakistan Limited (Rahim Yar Khan Factory) Lever Brothers Pakistan Limited (Rahim Yar Khan Factory) is situated at Leghari road near the main city. The factory deals in major three types of products, which are categories as under: Personal Wash Personal Products Laundry and Detergents Personal wash has a wide range of soaps and the main soap of Lever Brothers Pakistan Limited is
    • 11 Life Buoy, Lux, Rexona and Fair&Lovely soap. Personal product include Oral (Close Up tooth paste), Hair care (Sun Silk, Life Buoy) and Creams (Fair&Lovely and Ponds). Laundry and Detergents includes Laundry (Surf Excel and Wheel) and Detergents (Vim bar and Wheel magic bar) LOCATION Location is the process of determining a geographical site for a firm‘s operation. Organizations must weigh many factors when assessing the desirability of a particular site that can be Proximity to customers Proximity to suppliers Labor costs Transportation cost LBPL Rahim Yar Khan Factory is situated in the middle of the city. It was established in 1948. The main reason for choosing this location for the factory was: The land for the factory was donated by the NAWAB of the Bahawalpur State. It was the ideal location to cover the Indo-Pak border areas. It was the central location of Pakistan so it was a convenient location from the distribution point of view. Availability of the cotton seeds because south Punjab is cotton area. Government tax free area Availability of inexpensive labor PROXIMITY TO MARKETS The site of R.Y. Khan Plant was chosen in 1948. The main reason was its central location. This location is the middle of Lahore and Karachi that were the main markets at that time. So the company can easily cover whole market from Karachi to Lahore. PROXIMITY TO SUPPLIERS AND RESOURCES At that time the company was only producing oil for which cotton area was suitable. This site was suitable for processing the raw material that was cotton and R.Y. Khan was main cotton area. TAXES AND REAL ESTATE COST It was the tax-free area. The land was gifted by the ABBASI family, so there was no real estate cost. TRANSPORTATION COSTS Transportation cost is also a major determinant, which directs the location decision. Transportation cost is a major factor not only in terms of the raw material but also in terms of raw material. As R.Y Khan is situated at the center of Pakistan, the movement of finished goods cost minimum here across Pakistan. R.Y. Khan Railway Station is situated along with the factory so transportation through rail is very easy.
    • 12 AVAILABILITY OF UTILITIES The factory is facilitated with electricity, natural gas and telephone. 2.3 Lever Brothers Pakistan Limited (Rahim Yar Khan Factory) The factory site was selected in 1946. The construction of the factory started in 1949. First of all factory started the production of the Edible Oil by establishing the Edible Fats Plant in 1952. The factory started the production of soap n soapry unit in 1954. Then the company expands the business by establishing the Animal Feed Plant in 1960. Company decided to enhance the product range and establish the Personal Product Plant in 1981. Non Soap Detergent (NSD) based on sulphonic acid, instead of conventional manufacturing of soap base on Tallow, started in 1983. Then the company decided to expansion in soapry plant in 1991. Company installed sulphonation in 1992. SITE SELECTION 1946 CONSTRUCTION STARTED 1949 EDIBLE FATS PLANT 1952-1997 SOAPERY 1954 ANIMAL FEED PLANT 1960-1980 PER. PRODUCTS PLANT 1981 NSD BAR PLANT 1983 SOAPERY EXPANSION 1991 SULPHONATION PLANT 1992 The total area of the factory is 95 acres out of which 28% (27 acres ) for factory and 63%( 60 acres) for the Estate. 9% (8 acres) area is allocated for evaporation beds and solid waste dumping. TOTAL AREA 95 ACRES FACTORY: 27 ACRES (28 %) ESTATE: 60 ACRES (63 %) EVAPORATION BEDS & SOLID WASTE DUMPING SITE 08 ACRES (9 %) 2.4 Organization Structure Company Information: Board of Directors MusharifHai Chairman & Chief Executive Mr.Robert Zoon Mr.ParvezHussan Khan Mr.FatehaliW.Vellani Mr.Irtiza Husain Mr.PervaizMahboob Malik Mr.Soomro Mohammad Ibrahim Mr.OmarH.Karim Company Secretary
    • 13 Mr.AmarNaseer Auditors Messrs A.F.Ferguson & Co State Life Building No. 1-C I.I.Chundrigar Road Karachi Registered Office Avari Plaza. Fatima Jinnah Road, Karachi 3. Management Activities in Lever Brothers Pakistan Limited Path to Growth Introduced in 2000, path to growth is UniLever‘s corporate strategic agenda which aims to double the size of the business in seven years and to grow profits faster than the competition, thereby ensuring that we are the leaders in similar type companies in providing top value to our shareholders. Six Strategic Thrusts The six strategic thrusts that make up the path to growth are 1. Reconnect with Consumer By having real insights into consumer needs, preferences and future needs. This means knowing and understanding consumers‘ lifestyles, habits and attitudes and creatively adapting brands to their changing needs. 2. Brand Focus Grow their leading international brands by concentrating our resources behind them while still supporting ‗golden‘ regional brands and local jewels. Innovation will be the keystone to ensuring our brands are attuned to consumers‘ future needs. 3. Pioneer New Channels Widen their means of ‗going to market‘ i.e. reaching consumers and customers. This means developing new channels such as direct selling, home-vending, fashion outlets, travel, food service and out-of home. 4. World Class Supply Chain To close the gap to global world class within three years by establishing brand synergies, superior logistics and supply chain and by establishing a world program. 5. Simplify Everything that they do by reducing complexity, duplication and by making the best use of I.T. to provide high quality information once. 6. Enterprise Culture By creating a culture which shapes the mindset and actions among all employees towards winning in the market-place by building an organization fit for growth. 4. Operations of Lever Brothers Pakistan Limited (Rahim Yar Khan Factory) Material Store Material store is a place where raw material is store. The management structure of material store is as follows:
    • 14 Material Store Department consists of two hangers and one perfume store. Total area of each hanger is 256 x 107 feet. Material store has an over flow depot outside the factory. Material Store Department handles near about 650 items of raw material. 4.1 Function of Material Store Two main functions of material stores are 1. Receipt of Material 2.Issue of Material 1. Material Receipt Process: Material store receive two type of material Oil and Fat, DFA, Liquid Caustic Packing and Raw Material The process of receiving these materials is different from each other. We will discuss these processes one by one. (a). Receipt of Oil and Fat, DFA, Liquid Caustic: The process of receiving Oil and Fat includes following steps. Step 1: Weigh Bridge: First step in material receipt system is weigh bridge where vehicles reach. Capacity of weigh bridge is 80 tons. There are two operators on the weigh bridge. The Function of weigh bridge in goods receipt process is as follows.
    • 15 Truck or other type of vehicle driver come on weigh bridge and gives truck invoice to weigh bridge operator which is issue by the supplier of material. The weigh bridge operator check the type of material load on truck and note the truck number and its timing of arrival. If material is packing and raw then it is sent to material store for unloading. If material is Oil and Fat tankers are sent to sampling point. Lab assistant takes sample from tanker. Operator of weigh bride makes a sample chit and then this chit is sent with sample of material to lab for inspection. Sample chit consists of date, sample no, indent no, supplier name, quality, quantity, and truck no. The operator is informed by telephone from lab that sample is ok. Then operator on weigh bridge take the first weight of loaded tanker and feed data in system with the help of software Weighbridge which includes serial number, supplier name, truck number, material name, sample no and first weight. Print of this data is attached to truck invoice. Then operator makes a weigh bridge slip and give it to driver and send driver to unloading point. Weigh bridge slip contains date, party name, truck no, material name, and signature of weigh bridge operator. One portion of weigh bridge slip is filled by the operator on Weigh Bridge and other part is filled by the operator on receipt on material. The part of weigh bridge slip which is filled by the operator on receive contains received, material name, truck no, and tank no where material is unloaded. After unloading tankers come back to weigh bridge. Driver gives back the weigh bridge slip to operator and unloaded tankers are weighted. The operator feed this weight in Weighbridge software and calculates net weight. Then print of data is attached to truck invoice. Operator checks the difference between net weight and weight written on truck invoice. If it is minor difference than it is ignored. If it is major difference than it is mentioned on truck goods receipt which operator makes after second weight. Two copies of TGR are given to driver and two for office. Truck good receipt contains following data. Supplier name, date of receipt, city name, date of sending, quantity, packing type, description of goods and truck no. Operator feed this data is daily sheet, which is made in excel. Daily sheet contains data about date of receipt, arrival time, truck no, TGR no, indent no, item code, supplier, commodity, sample no, dispatch weight, received weight, difference, out time, system posted(yes/no), remarks, weigh bridge operator.
    • 16 Process Map of Weigh Bridge Step 2: Unloading of Oil and Fat, DFA, Caustic:
    • 17 Oil and Fat, DFA and Liquid Caustic are unloaded on different point and process of unloading is different.
    • 18 Private Company Tankers: Five tankers of 25 tons each can be unloaded at a time. Truck driver brings truck to tallow decanting area and give weigh bridge slip to operator on unloading. Operator note the time when unloading start. If tallow is in freeze condition in tanker than with the help of steam operator melt the tallow and then unload tallow in drop tank. From drop tank tallow is shift to Decanters. Tallow area contains two decanters having capacity of 200 tons each. Temperature of these decanters is maintained according to material. This material is than shifted to storage tank from decanters. Before shifting material to storage tank the operator on receipt clear the pipe line to storage tank with help of steam and when line clear than material is shifted with help of pipe line. After unloading operator note time and fill the weigh bridge slip and give it back to driver. Lever Brothers Tankers (Big Belly): Company has its own tankers, which are called Big Belly. These tankers have facility to maintain the temperature of material. Material loaded in big belly is directly stored in storage tank with the help of pump. But before unloading pipeline is clear with the help of steam. (c). DFA: Truck loading DFA reaches at unloading point. DFA is unloaded and store in storage tank directly from tanker with the help of pipeline and pump. (d). Liquid Caustic Truck loading caustic reach at unloading point. Driver gives weigh bridge slip to operator. Caustic is first unloaded in drop tanks and from drop tanks caustic is shift to storage tank with help of pump. Two drop tanks are use to unload the tankers. Capacity of these two drop tanks is 25 tons each. Two storage tanks ST 66 and ST 25 is use to store the caustic. Capacity of these tanks is 150 tons each. After unloading operator fill the weigh bridge slip and give it back to driver. (e). Receipt of Packing and Raw Material Packing and raw material is unloaded in two hangers. One is hanger no 2 where personal product packing and soapry chemicals. Other is hanger no 3 where packing soapry and raw material is stored. Truck loading packing and raw material first reach to weigh bridge where operator on weigh bridge not the truck number and time of arrival and send it to hangers for unloading. Operator on receipt of packing and raw material check the truck invoice which contain name of material, type of material, purchase order number, and quantity. Operator unloads the truck and keep material to their specific place. During unloading operator also take sample of material which is sent to lab for inspection. Operator checks the material, count it and match the quantity received with quantity written on truck invoice. After unloading material truck good receipt is prepared which contain supplier name, quantity received packing, and description of product and discrepancy. Tow copies of this receipt is given to driver and two copies are keep in office. TGR contains the following data. Supplier name, date of receipt, city name, date of sending, quantity, packing, description of goods, discrepancy if any. After TGR is issued the data is posted in Ledger. Following data is posted in ledger. Date, truck no, purchase order number, name of company, invoice number, item code, description, quantity, pack, price, GRIR no, quantity ordered, and remarks. With the help on entries in ledger than data is feed in MFG Pro.
    • 19 Process Map of Receipt of Packing & Raw Material 2. Material Issue Process: Issue process of oil and fat, DFA, liquid Caustic, packing and raw material is different with each other. Issue Process of Oil and Fat: Storage tanks are kept full. Operator notes the level of material store in storage tank with the help of
    • 20 meter gage. Then he shifts oil and fat from storage tanks to pan room tanks. During issue he takes sample of material and makes a sample slip and send sample with sample slip to lab. After issuing operator note the level of tank. Then quantity of issue is calculated by subtracting last level noted from current level note. Then operator fills the issue sheet and makes two copies of it. One is given to operator of PAN room who is present there. Oil and fat issue sheet contains following type of data. Batch no, shift, quality, tank no, staffing, sample no, net, refinery/pan room tank no, signature of Material Store Department operator, signature of pan room operator, and remarks. Other copies are sent to office where related officer with the help of this sheet feed data in MFG Pro and makes a quality order and send it to lab. Issue Process of DFA. Operator notes the level of DFA storage tank. DFA is directly issue to PAN room from storage tank. After issuing operator check the level of storage tank and notes the difference on issue sheet. One copy of issue sheet is given to PAN room operator and other copy is send to office. Next day pan room sends an issue note to office and related officer feed data in MFG Pro. Issue Process of Liquid Caustic. Operator notes the level of storage tank. Level of tank is measured with help of measuring tape. After issuing operator check the level of storage tank and notes the difference on issue sheet. One copy is issue sheet is given to operator of PAN room and other is send to office. Next day PAN room sends an issue note to office where related officer feed data in MFG Pro. 5. Issue of Packing and Raw Material Issue of packing and raw material handle three operators. One operator issues packing material to personal product department. Second issues packing material to soapry and raw material to NSD. Third operator issues chemicals to soapry and personal product department, perfumes and colors. Issue note is sends to material store one day before issue from manufacturing departments. Related officer in store notes the name of material and quantity of issue on notebook of related operator. Next day operator note the quantity of issue on lot card from where he is issuing and notes this lot number in his notebook. With the help of fork lifter material is send to manufacturing departments. After issuing material operator notes this lot number in issue note. Related officer post this data in MFG Pro. 5.1 Return of Material: Issued material can be return to material store from manufacturing departments because of two reasons. Goods not required Rejected due to any problem. If goods are returned on first base than manufacturing department send a return note with material to store. This material is stored near the lot from where it was issued. A new lot number is posted on this material. Related officer post return note in system. This material will issue first on requirement. If goods are return on second basis than first a lab assistant check the material. If material is rejected than it is stored sprat place specific for rejected material. A card which contain lot number from where it was issued and number of issue note against which it was
    • 21 issued is posted on this material. Related officer sends e-mail to Supplier Company. The Supplier Company inspects the material and if it is rejected than it send fresh material to company. 6. Buying Department The word ―buying‖ means purchase of any thing or any merchandise or item. This function is performed by buying department in any organization. Buying or purchase is one of the major functions of any company of organization. Without it no one organization can run successfully in the field of business. So we may say that buying is the soul of company. Without buying all departments of the company will be failed. 6.1 Objectives of buying department The main objectives of any buying department is to purchase merchandise and services with the object of ensuring the specification, quality, price, time of payment and timing of supplies are consistent with the overall need and objectives of the business. Functions Following functions are performed by the buying department of R.F. To buy all production raw materials including all types of material and packing material. To buy administration department requesting items. To buy all engineering requesting items (all types of machinery & spare parts). Purchase of medicine for surgery. Purchaser of W.C.S.O. seasonally for K.F & R.F. All types of factory purchases through buying department. Sales of scraped or surplus items of various department relating capital goods. 6.2 Procedure of the purchase of goods The company has maintained a fine system of buying. In fact, buying department R.F. performs its functions on local basis. But imported raw material & packing material is bought by the central buying department head office. The procedure of buying can be explained with the help of following charts: Purchase requisition Quotations calls Summary of quotations is made Purchase order Goods receipt GRIR is prepared Store report GRIR is accepted Payment Purchase requisition Any department which has a need of something sends purchase requisition regarding its requirement to
    • 22 buying department, who arranges for the purchase of required items as soon as possible. Three copies of purchase requisition are prepared. These copies distributed as follow: 1st &2nd for buying 3rd for requisitioning department (request for purchase items) Calling summary of quotations & placing of order First of all the buying department invites to general public for quotations and to some particular parties. After receiving quotations summary of quotations is prepared and made comparison with price quality etc. After that the party is decided on which an order is to be placed according to the terms & conditions. Then purchase order is prepared in the favor of succeeded party. All information regarding delivery and freight is mentioned in purchase order. Four copies of purchase order are prepared and distributed as follow: 1. White for accounts department 2. Pink for requisitioning department 3. Green for buying department 4. Blue for payment department Receipt of goods & preparation of GRIR When goods are received from supplier then GRIR is prepared by material store department and sends to lab for inspection. If goods are accepted in the laboratory then these are placed in the concern store other wise not. Four copies of GRIR are prepared and distributed as follow: 1st for account department 2nd for buying department 3rd for concern department 4th for laboratory In case if the material is not accepted then a sundry sales (SSA) advice or sundry sales credit will be made to return the goods to the supplier. Three copies of SSA are prepared: First for requisitioning department Second for accounts department or distribution department Third for buying department Payment When GRIR is accepted then one copy of it is submitted to payment department, where the payment department prepares payment sheet and makes advice to the cash office for payment after satisfying the other formalities.
    • 23 7. SUPPLY CHAIN MANAGEMENT The firm has segmented structure of supply chain Management. The purchasing, production control and distribution departments have responsibility for material management. SITARA CHEMICALS is the supplier of local raw material of soda ash, caustic soda etc. Supplier selection is based on price, quality and delivery. SAFETY STOCK 2 to 3 weeks for basic (imported) material 2 weeks for packaging material LEAD TIME 13- 20 weeks FORECASTING Demand Forecasting “A forecast is the prediction of future events used for the planning purposes”. Forecasting Techniques There the three forecasting techniques are available for the purpose of the forecasting of the demand, which are as under. Judgmental Method. Causal Method. Time Series Method. The usage of these techniques depends upon the availability of the data about the past. Forecasting at LBPL The forecasting technique, which is being followed by LBPL, is the qualitative technique. Sales Force Estimate Sales force estimate of forecasts compiled by the members of the company‘s sales force (their dealers in each region) about the future demand of the product. They are using this technique because they believe that their estimates are correct since the dealers are much near to the market. Marketing Department is actually involved much in forecasting. They observe the trend of the market and they set their target of sale then they tell to the production that what is their target then production department make productions according to the target set by marketing department. Time Series Demand for the future periods is also determined by the time series method. Historical data about the past demand is the basis for the time series. The data is used for the demand projection for the coming periods. Marketing Research Marketing research is also conducted by the firm. Data obtained is used to determine the customer demand pattern, and trends. Effective Capacity It is the maximum output that a process or firm can economically sustain under normal conditions. When operating close to peak capacity, a firm can make minimal profits or even lose money despite high sales levels.
    • 24 Operations manager must examine the three dimensions of capacity before making capacity decisions: Sizing capacity cushions Timing and sizing expansion Linking capacity and other operating decisions The capacity cushion is the amount of reserve capacity that a firm maintains to handle sudden increases in demand or temporary loses of production capacity it measures the amount by which the average utilization falls below 100 percent. CAPACITY CUSHION = 100% - UTILIZATION RATE (%) Another issue of capacity strategy is when to expand and by how much there are two extreme strategies: The Expansionist Strategy, which involves large infrequent jumps in capacity. In this strategy organization remains ahead-of-demand. The Wait and See Strategy could be to follow the leader, expanding when others do. Management may choose one of these two strategies or one of closely linked to strategies operate between these extremes. Capacity decision should be considered throughout the organization. When managers make decisions about location, resource flexibility and inventory, they must consider the impact on capacity cushions. Capacity cushion buffer the organization against uncertainty as do resource flexibility, inventory and longer customer lead times. If a system is well balanced and a change is made in some other decision area, then the capacity cushion may need changes to compensate. The categories and sizes of the soaps manufactured at RF are given below: Hard Soap LIFEBUOY( Red & White) 140gms. 95gms. TOILET SOAPS LUX PINK 140gms PURPLE & GREEN 95gms WHITE LIFEBUOY GOLD Pink & White 140gms 95gms BREEZE 85gms LIRIL FRESH 140gms RAIN FRESH 95gms Main point about the capacity are given below Capacity is measured in terms of output. Measuring unit is per ton Sizing capacity cushions are used for the capacity Planned lead-time for changing a dice is 8 hours. 4 lines are available for the hard soap (lifebuoy). Capacity of per line is 210 tablets / min. Shift production is 40 tons / shift
    • 25 Daily production is 120-tons/ day with 3 daily shifts. For toilet soaps 3 lines and 5 machines are available. Capacity for toilet soaps is 190/ min while the average capacity is 180/ min. Annual production capacity for life buoy is 30000 tons to 35000 tons. Utilization = Avg. Capacity/ Capacity Utilization for toilet soap is 95% Utilization for hard soap is 97% Effective capacity Utilization for toilet soap is 90% Peak Capacity Utilization for hard soap is 93% Cost Department This department provides very useful services to the company and is responsible for costing of the products. This department does the yield calculations of the followings: Soapery fatty acids Crude glycerin Refined glycerin Edibles For the calculation of yield, these elements are taken into consideration: Storage loss/gain Bleaching loss Packing loss/gain Un-accounted loss Storage Loss/Gain When oil and fats are received by the material store, sample is taken for measuring percentage of Free Fatty Acids (FFA) and moisture. All these materials are received by the stores and then issued to production department. At the quarter end, cost department do the stock taking of all the tanks of oil and fats and also draw a sample for determining moisture. Now the cost department see that what is the difference between the physical n=and book stock. This deference will be the loss or gain and charged to the production account. Bleaching Loss/Gain For the purpose of bleaching the Activated Earth is used. The Activated Earth absorbs some amount of tallow. This absorption is called bleaching loss. Cost department calculates this loss. Packing Loss/Gain When the finished products are packed some packing loss or gain took place at this stage. Some products are packed above the standard weight and some less. Packing loss or gain is also determined. Un-Accounted Loss Some losses are not seen in manufacturing process, these are called Un-accounted losses. Reports of Cost Department Cost department looks into the yield and performance of the factory with the help of various reports. These are following:
    • 26 1. Daily stock report 2. Production accounts 3. Daily production report 4. Power & Steam production report 1. Daily Stock Report This report tells that how much raw material is transferred to plant, what is the weight of activated earth used, how much fats are spoon-fed, soap cleaned, lye transfer to glycerin section, lye treated and refined glycerin effected into drums. With the help of these information, this department takes care of yield. 2. Production accounts of the products Cost department makes production accounts of all products with the help of followings: Raw material cost chemicals Packing material Variable direct material Raw material cost Value of material consumed is taken from consumption schedule and is charged to production accounts after making adjustment of opening and closing stock. Chemicals Cost of chemicals and taken from consumption schedule and prorated on products pack wise and in these cases whose closing stocks are chemical mixed value is charged to production accounts after adjustment in opening and closing stock. Packing material Packing material but is taken from consumption schedule and then total cost is charged to production accounts of the products. Variable direct material It is just as packing material but at present crude glycerin stock has accumulated hence we have to keep variable chemicals value equivalent to its weight in stocks. Steam and power are taken from variable direct schedule in total against their location but same case with crude glycerin, which has been explained, in variable direct chemicals. 3. Power & Steam production report Steam Weekly steam production report is received and from these quarter reports are prepared. Meter reading of all steam main meter and sub-meter are done at quarter end. Cost of steam is calculated and transferred to all the production departments where steam is used. Cost of burners used in factory is subtracted from total Sui gas bill. Power Meter reading of WAPDA main meter, and own generator and sub-meter in the factory are done at quarter end. Power is allocated on all factory location on the basis of sub-meter; the technical management gives the standard bases. The cost of power is changed to production accounts. 4. Daily production report The reports of daily production are submitted by the production department to cost department. This
    • 27 report helps in watching what is the production of certain product on certain day, and how many transferred to warehouse and what is the present balance on department floor. Cost control documents preparation Following documents are prepared for cost control purpose. Standard yield vs. Actual yield Standard chemical valuation vs. Actual chemical which is used in production Standard stem & power vs. Actual steam & power Standard man hours vs. Actual man hours Calculation of variable cost of sales Cost department prepares daily, monthly and annual cost reports. These reports are used by the management for control purpose whether the cost is according to the standards are not. The area of difference is pointed out and a better control is exerted for the future. It is also important because if a company is able to lower its production it works more than to increase the market share. It is easy for a company to lower its cost because it is in its own control while the market is beyond the control of management. In Lever Brother the cost of sales is calculated in a very simple way according to the standards of accounting. The report starts with the opening stock of Material, Steam/Power and Distribution. In these opening stocks the cost of oil and fats which comes from oil & fat consumption report, the chemical cost which is obtained form chemical consumption report, cost of packing material obtained of packing material consumption report, cost of steam/power obtained from steam/power consumption report, for that day production is added and it gives variable cost of production. From this variable cost of production the closing stocks of material, steam/power and distribution that day is deducted which gives total cost of sales. 7.2 DISTRIBUTION PROCEDURE OR SUPPLY CHAIN NETWORK First of all production is transferred to distribution warehouse by the production department. Distribution department has two warehouses, which are capacity wise 700+150 tons (for soap and personal products) and 500+200 tons (for cooking oil. Distribution department arranges the dispatch plan that is provided by the consumer services head office. Therefore products are dispatched according to the dispatch plan. Company has various sales depots located in different cities throughout the country. Such as: Ø Faisalabad Ø Karachi Ø Wazirabad Ø Lahore Ø Rahim Yar Khan (central) Ø Rahim Yar Khan (south) Ø Dera Ismail Khan Ø Multan Distribution department sends products directly to distributors or to sales depots as per instruction of sales department head office. Sales department makes sales contracts with different parties and supply by advising distribution in Rahim Yar Khan Factory.
    • 28 All sales depots are controlled by head office. Sales department send plans for despatch to these depots which take necessary action according to plan. Rahim Yar Khan South depot covers the area of Baluchistan and Sind while Central covers the area of Punjab and NWFP. There is another depot named ―over flow depot‖ in Rahim Yar Khan. When there is shortage of space in factory warehouse, production is transferred to this depot. Distribution department Rahim Yar Khan Factory sends despatch plans to over flow depots. This depot arranges the supply accordingly. For all the despatches a despatch advice is prepared in which the full detail of the products are maintained. Five copies of despatch advice are prepared. · One copy is sent to consignee through transporter. · One copy of D.A is sent to customer service head office. · One copy is sent to accounts department. · One is for distribution department Rahim Yar Khan · One copy is given to transporter that is called acknowledgement. 7.3 DISTRIBUTION CHANNELS LBPL has a centralized distribution system in which the products are distributed from one warehouse to the selected distributor of the company, and then the distributor make the product available to the wholesalers and at the end the product is transformed to the retailers to be purchased by the final customer. The company had direct relations only with the distributors for making the product available to the target market. It deals with the distributors on net and advance payment bases and does not give any credit facility to them. However the company provides different commissions incentives. There are many certified distributors of LBPL operating in almost all major areas of the country. Sometimes when the company introduces the same product line in different innovation style then it uses the following channel of distribution. The company has specifically directed its distributors to provide that innovative products to retailers skipping out the wholesalers in the channel. The basic reason for doing this was to eliminate the wholesaler commission so that the price can be placed at relatively lower level. Channel is like this Manufacturer (LBPL) Company warehouse Consumer Retailer Distributor In short the intense coverage of market is the basic aim of LBPL distribution policy. QUALITY CONTROL Quality is the use of techniques and activities to achieve, sustain and improve quality. It involves integrating the following related techniques and activities: 1. Specification of what are needed. 2. Design of the product or service to meet the specifications. 3. Production or installation to meet the full intent of the specification. 4. Inspection to determine conformance to the specification. 5. Review of usage to provide information for the revision of specification if needed.
    • 29 6. Utilization of these activities provides the customer with the best product or service at lowest cost. The aim should be continuous quality improvement. OBJECTIVES · OFI – Opportunity For Improvement · Always looking for improvement. · The continuous improvement of all services through total involvement of all employees. · The developing and the strengthening of partnership with external and internal customers and suppliers. · Providing innovative and higher quality products and services to achieve total customer satisfaction by understanding their requirements and anticipating their future expectations or needs. FUNCTIONS · Monitoring annual targets for quality improvements in all areas. · Creating a culture of customer focus striving to become the lowest cost producer through agreed annual cost reduction program. · Value people by understanding and drawing upon their strength i.e. abilities and knowledge and make efforts for their training and development. STAGES RAW MATERIAL: When raw material is received the quality of raw material is inspected according to the standards. According to these standards if the personnel of receiving department will inspect according to the standards. If there are a lot of 500 and they choose 13 samples from the whole lot then they select the sample from the upper and lower and right and left side of the whole packet. It means that they select the sample by way of diversifying the area. If the 2 units of the sample are rejected then the whole lot will be rejected and if the lot is rejected then they call back the vendors and vendor check that lot again. If the lot is very much needed by the production department then they place a written request. The 100% inspection is done on it. In this case, they call the vendors or their inspectors and they check it on 100% basis. But this happens in very rare cases. On the other hand if the lot is accepted then it is remarked as GRL (good received lot) and sent to the store. While four copies of GRL are made and sent to the following four departments: 1. Purchase Department 2. Quality Control Department 3. Store 4. For computer entry DURING THE PROCESS: When the product is in-line then quality inspector check it at every stage of process. If these inspectors will sign it for next process then product will go for next process. If they do not sign it then the work will stop. Then for the accepted and rejected production, the quality inspector will give report. This report has also included the sign of supervisor of process area. So that analyzing the rejection and acceptance %age for next rectification and improvement. Then report will pass to the production manager so on this base they can make the weakly and monthly report. And it will pass to the top management. In this inspection is done at every stage and will pass
    • 30 towards the top management. The ISO has given them standard for the whole process. It also includes the initial cost but the running cost is more safe and effective because the chances of rejection are reduced. We can say that the chances of rejection will be controlled. In this way the quality level is much improved and it reduces the customer complaints. Monthly charts are also made and management also takes correction actions. If there is a need of corrective action then they will request. The immediate action will be taken on that form and until the corrective action will not be taken they production level will be ceased. Quality control department has given their dimensions. And if there is any deviation from these dimensions then even the MD of the company cannot start the production. And charts are also following these dimensions everywhere in the production area. 9. Unilever digital communication for supply chain Unilever, speaking at the recent Melcrum Digital Communication Summit in London. His session, ‗Connecting employees to the heart of Unilever‘s Sustainable Living Plan‘ provided fantastic insight into a behavioural change management strategy to put sustainability in the spotlight across the entire organisation – the way employees work, the value chain and even the way consumers use Unilever brands. Here are a few points that I took away from this very informative session …  Align internal/external - A significant part of an IC strategy in today‟s digital world should be aligning internal communications with external. Unilever did this by creating integrated campaigns that targeted both internal and external stakeholders to share the progress the business was making, generate solutions and invite interested parties to help shape Unilever‟s plans. One tactic used was to create a 24-hour „web jam‟ forum with a variety of live events, discussion and online participation that was open to both external and internal participants.  Focus on content first, channel second – Focus first on the content – what content is needed for the messaging? How does it need to be localised or segmented to the audiences that will be receiving it? THEN look at what is the right channel to communicate the message. When generating content, Neil noted the „three Ps‟ that interest employees: People (what are others doing?), Product (for example, here, how are they sustainable)? and Participation (how can I participate?).  Create a user journey overview: Plan the entire user journey across all the channels you will be using to communicate so you can ensure consistent messaging is going out. Ensure local teams get the help they need to minimise the effort to implement the content. This can include supplying localised by language.
    • 31  Employee generated content is powerful - User generated content is VERY engaging. Especially in the form of storytelling, which we as humans respond to and helps us understand the message. Unilever opened up two-way channels to give employees many ways to tell their stories. Everyone was invited to submit „sustainability heroes‟ in their workplace, participate in local events – and post their photos from the day. Plus, existing channels were „socialized‟ – such as adding forum chat into SharePoint.  SOCIAL MEDIA: Connecting with Partners and Consumers the new-fashioned way  . About SPR Companies IT Professional Services Firm Over 35 years in the Midwest  3 Agenda True Issues facing the Supply Chain. What role doe Social Media play in the Strategy of the Business? Overview of key Social Media Tools. Overview of key Social Media Listening Tools. How can Social Media play a role in the solution of the issues facing the Supply Chain 5. Supply Chain Challenges Because of the relative economic instability, the typical trend analysis and projection models are not meeting business requirements. Simply said, predictive analytics, by definition, do not function well in times that are unpredictable. When you can‘t predict the future with some level of reliability, it is even more important that the business knows exactly what is going on in real time or near real time. With this in mind, we can think of two areas of importance where social media might provide value to improving supply chain performance and risk avoidance: Monitoring both planned and actual consumer behavior (I‘m gonna buy vs. I just bought) is critical. What value does a social media solution bring in comparison to POS information Brand reputation is always critical, but even more so now with top-tier CPG brands losing market share to less costly private label products. It is critical to have immediate responses to customer feedback, issues, concerns, and complaints. Is there a role for social media here Are there any privacy issues around the commercial utilization of social media information
    • 32 gathering and how can they be minimized Supply chain professionals are concerned with the customer ―population‖ as opposed to a 1 ―sample.‖ What are the current and projected representative demographics of those participating in the area of social media 6. Supply Chain Challenges Increasing supply chain responsiveness leading to a more customerdriven process: The ability to treat inventory in transit as available for the safety stock calculations and have the ability to make mid-course changes to shipments. Third-party logistics outsourcing. Re-negotiating partner agreements. Innovate with the tools you have or take those same activities and hand them off to a 3PL, and let them do the innovating. The risk of becoming too reliant on outsourcing is allowing ourselves to be less alert and aware of changes. When contracting with a 3PL, we expect them to provide expertise in areas of importing and exporting for example -- specifically in regulatory matters, such as the Transportation Safety Administration appose new cargo screening regulations and 10+2 regulations on shipment documentation. There is a need to keep up to date on the latest regulations affecting international trade. http://logipi.com/public/item/244464C-Level involvement in supply chain: There is much more attention on the C-suite—with the chief operating officer, your chief executive officer— there‘s more recognition on their part of the impact of logistics and supply chain, whether it‘s managing the inventory, managing the sourcing, managing the transportation. It‘s now more and more that the C-suite executives are starting to really get the impact of supply chain. 7 Leadership Impact of Social MediaInnovationAhead of CompetitionOut of Price WarsDifferentiationMission & VisionDirectionFocusFlexibility EngagementExecution Framework Delivery to GoalsAccountabilityOwnershipRO StrategicPlan Metrics for AccountabilityFeedbackAchievement TargetsGuidanceNet Promoter Social Solution SuitesMarketplace Message CommunicationMemorable & ImpactValueInfluenceMarket 7. SOCIAL SOLUTION SUITEStrategic ObjectiveKey Metric TargetNet ScoreKey Metric Result InfluenceFeedbackPROMOTERBUZZMARKET PLACEMESSAGE Demographics Psychographics IndustryMONITOR METRICSSOCIAL WEBCAMPAIGN Social Channels Set Metric Targets Timing 8. What tools will drive your success Social networksVideo sharingPhoto sharingMicro bloggingLink sharingSocial calendaring
    • 33 9. Social Media Listening Tools that incorporate with unilever 10. Listening ToolsFree pay 11. Key MetricsUnique visitorsPages visitedTime on siteBounce ratePosts Comment ratioSearch engine rankingSentiment (NPS)ReviewsRecommendationsReferralsTweetsRetweets (RT)MentionsConnectionsFollowers 12. Unilever always focuses on Brand reputation because it is always critical, but even more so now with top-tier CPG brands losing market share to less costly private label products. It is critical to have immediate responses to customer feedback, issues, concerns, and complaints in that case unilever always try to be best in providing services to customers Crowd sourcing Several examples of online tools to facilitate supply chain transparency exist or are in the pipeline. These tools include World of Good, Good Guide, and Source Guide. Source Guide is an open source tracking tool that creates supply chain transparency through crowdsourcing. Wikipedia defines crowdsourcing as, ―a neologistic compound of "crowd" and "outsourcing" for the act of outsourcing tasks, traditionally performed by an employee or contractor to a large group of people or community (a crowd), through an open call.‖34 Corporations are beginning to turn towards crowd sourcing solutions for their design needs. Some examples of crowd sourcing are Next Stop Design, Future Melbourne, and Local Motors.35 Crowdsourcing is also on the horizon for supply chain transparency. Something that is co-created by so many parties could have the potential to be respected as more valid than something that is coming unilaterally from a single company such as Unilever. Unilever could sponsor an open source tracking tool which non-profits, customers, academics, and lay people could help to flesh it out. While it seems risky for a company to allow random strangers to post seemingly unreliable data about their company online, the fact of the matter is that open source crowdsourcing is coming down the pipeline in this arena and companies will be better off utilizing open source supply chain tracking and providing accurate information than not. For example, Wikipedia is an open source platform that contains crowdsourced information about Unilever E-Procurement
    • 34 Unilever meets two of the key corporate strategic thrusts: World Class Supply Chain and Simplification by implementing NPI strategic sourcing and e-procurement enablement. These are two of the six thrusts for implementation of world-class supply management: # Implement executive buying # Attract, develop and retain world-class buyers # Professionalize NPI sourcing # Enable e-procurement globally # Accelerate and leverage simplification # Drive information and measurement Aggregation of demand and access to new suppliers through real time partnership has enabled Unilever to improve efficiencies of the extended supply chain. Workflow automation has helped in simplification of the internal processes, which has created scale for Unilever to leverage. For Unilever e-procurement represents the opportunity for sustaining the benefits gained from strategic sourcing through information, compliance and business process simplification. There are four ways of defining the benefits of eprocurement: # A structural enabler for re-engineering the NPI procurement process enabling further benefits to be gained through strategic sourcing, business simplification, visibility of total spend and effective integration routes both internally, e.g. ERP, and externally. # The means for conducting electronic business upstream using lowest cost links, i.e. cXML. # A business model prompting re-evaluation of the mechanisms for connecting customers, enterprises and suppliers (incl. Exchanges and Marketplaces) # A single front-end interface both externally to suppliers and internally for ERP and other areas of integration Strategically e-procurement complements Unilever's overall e-initiatives. Learning from these and the strategic sourcing expertise gained during implementation, has improved business ability for the future eprocurement of both NPI and direct materials. Workflow automation and simplification to global sourcing processes has resulted in increased productivity and reduction of transaction costs. Data made available can then be applied to harmonies items purchased, rationalize needs with suppliers and monitor and reduce usage, thus further increasing Unilever's buying opportunities. Exports Unilever sells its products in nearly all countries throughout the world and manufacture in many of them. The company exports a wide range of products to countries where it does not makes them. For example, inside the European Union, Unilever makes many of its products in only a few member countries, for sale in all of them. The chosen manufacturing configuration is generally determined by an optimized regional sourcing strategy, which takes account of requirements for innovation, quality, service, cost and flexibility. Global Supply Chain Management Solutions Providers In an effort to streamline its daily operations, Unilever has partnered with several technology and logistics providers on a worldwide basis. Some of the major provider
    • 35 Logistics Providers SCM Technologies in Unilever’s Business Model Unilever's overall technology vision includes a strong push from client-server to thin-client architecture, Web technologies that bring the company closer to its customers, and business analytics to make management information easier to access, according to Rick Ballou, IT business-area director for Unilever Home and Personal Care North America. With a market capitalization of $28 billion, the consumer-products giant reported that its recent IT achievements include the rollout of business-intelligence software from Hyperion, and "SAP ERP wallto-wall" as a global standard. Unilever also has seen significant cost savings from its investment in Ariba's sourcing technology, which has resulted in a reduction of the office-supply purchasing budget by millions of dollars, and a consolidation of data centers from 18 to five; eventually, the number will fall to three. A cross-functional global committee already is working on the shift from desktop client-server to portal technology. On the B2B front, in addition to its RFID efforts, Unilever is participating in an industrywide effort to standardize data elements throughout the supply chain through UCCNet. Unilever has also expressed their continued interest in CRM. Unilever collaborates on statistical and market promotion forecasts for key products with a few large customers, using a collaborative system from Waltham, Mass.-based Syncra Systems Inc. The organization as whole had multiple ERP and CRM systems from several vendors, and 34 custombuilt data warehouses. Unilever currently runs 100 separate, complete SAP enterprise resource-planning systems.
    • 36 Similar on these lines, some of the major SCM technologies and IT solutions implemented in the business model of The Unilever Group are discussed below: ISIS Supply Management Information System: ISIS is Unilever‘s integrated supply management information system. It helps its local, regional and global supply managers make appropriate sourcing decisions, allowing them to collate and analyse information quickly and easily. The system enables its managers to negotiate with suppliers in a transparent and efficient way, benefiting both parties. E-procurement Solutions from Ariba: Unilever selected the Ariba Buyer software for e-procurement following a rigorous selection process and initial pilot in North America. Although initial success has been achieved Unilever believes that these are still early days and that the return of investment has still to be proven. While e-procurement is an inevitability for future supply chain optimisation the supply market, particularly in Europe, is still suffering from under-development. There is an emerging recognition that eProcurement can affect total supply chain operation rather than just transactional activity. Until recently few have taken action to implement or sponsor the necessary changes. Encouragingly though, Unilever believes that this position is changing and unquestionably e-Procurement provides a catalyst for positive improvement in supply management profile. Enterprise-Scale Data Warehouse and Business Intelligence Solutions: In order to gain a clear view of business performance across its 34 companies in 19 countries, Unilever Latin America has embarked upon an enterprise-scale data warehouse and business intelligence project called Sinfonia. At the heart of Sinfonia, KALIDO® enterprise data warehouse creation and management software (KALIDO) provides a solution that will grow to encompass one of the largest databases in the world by 2007. KALIDO delivers an aggregated view of data across Unilever Latin America at high speed throughout constant business change such as acquisitions and market consolidation. KALIDO is now making it possible for Unilever Latin America (Unilever LA) to build and manage a fully functional, adaptive data warehouse throughout its lifecycle while simultaneously rolling out an underlying regional SAP system in a 4 to 5 year sister project called Harmonia. The flexibility of KALIDO is enabling Unilever LA to maintain business continuity as the Sinfonia and Harmonia projects continue to roll out. The KALIDO data warehouse will grow both in geographic coverage and in scope, and is expected to reach 12 TB in size. Throughout this period of growth it will deliver consistent business information, taking increasing volumes of data from the ongoing SAP implementation. Unilever LA is converging processes, systems and information to enable a truly regional approach to business. Using the KALIDO enterprise data warehousing solution, the organization is successfully delivering a large-scale enterprise data warehouse, on time and within budget, while simultaneously rolling out a region-wide SAP system. The new information architecture Sinfonia, powered by KALIDO, will deliver high-quality data to 4,000 users by 8 am every day across five time zones. The solution will enable better understanding of regional
    • 37 supply chain processes, brands, customers and suppliers, and will allow Unilever to respond rapidly to new opportunities, even against a backdrop of constant internal and external business change. Finally, KALIDO will facilitate strategic planning and drive improved decision-making, by delivering tailored information at high speed to key business users, enabling Unilever LA to realize substantial cost savings and improved ability to capitalize on business opportunities. Supply Chain Information Systems: Using a variety of information systems and several other supply chain management technologies, Unilever aims to enhance its supply chain business model. The following diagram describes the company‘s supply chain system vision Discussed below are the various types of information systems used within the business model of The Unilever Group with their specific usage: # R&D System R&D System (LIMS): Used for formula development # Specifications Systems: Used for Packaging, Raw Material, Formula, Master BOM, Finished Products and Process Specifications # Manufacturing Planning Systems: Used for MRP, Production Orders, Purchase Orders, Standard Costs, RM/Pack/WIP Inventory, Financial Transactions, Material Masters and Production Reporting # Planning Systems: Used for Demand Planning (DP), Demand Req Planning (DRP), Constrained Prod Planning (CPP), VMI and Finite Scheduling # MFG Execution Systems (Various): Used for Finished Goods Production, Compounding/Batching, Quality/Lab Systems and Plant Maint Systems # Order to Cash Systems: Used for Order Entry/Management, Terms of Sale, Deduction Tracking, Stock
    • 38 Allocation and Invoicing # Finished Goods Management Systems: Used for Shipping, FG Warehouse, Transportation, Finished Goods Production (PIN) and Traceability "Chipping of "Goods" Initiative – RFID Unilever's Supply Chain Innovation team wants to understand how better tracking of products will affect manufacturing plants, distribution centers and stores. Unilever anticipates that manufacturing plants will have to reduce the length of product runs and make other refinements to react more quickly sto changes in demand.And retailers will have to provide more timely information to suppliers. In continuation to this strategy, on July 29, 2002, Unilever launched its third phase of a supply chain-tracking project under Britain's "Chipping of "Goods" initiative. The company planned to put RFID tags on 30,000 six-packs of Lynx deodorant and monitor them as t`hey move from a manufacturing plant to three Safeway stores. As part of the initiative, Unilever's U.K. home and personal care products company, Lever Fabergé, is putting RFID tags on six-packs of Lynx deodorant at its factory in Leeds. After the individual 10. ADVERTISING Unilever‘s roots go back to the latter half of the nineteenth century when the Industrial Age spawned working-class households with money to spend. Entrepreneurs began to package products under brand names and promote them to millions of the new customers. It was the dawn of modern advertising and merchandising. Lever was one of the firsts to discover the efficacy of mass advertising. Obviously, the budget for marketing and advertising has grown dramatically ever since Advertising has always been a keystone of the business. (E.g. Unilever Best foods UK spends almost £100 million a year on advertising; The PG Tips chimps‘ family advertising campaign was first screened at Christmas in 1956. The chimp adverts are now the longest running TV advertising campaign of any brand, having featured in over 100 commercials) Advertising has been an important aspect that Unilever has been investing a lot in. An evidence of this can be indicated by the fact that in 2002, Unilever accounted for the biggest advertising deal in the history of United Kingdom. The deal worth of £320 was signed between Unilever and Carlton Sales and Granada Media Sales. The agreement
    • 39 locked in trading terms for Unilever‘s UK operating companies; Birds Eye, Wall‘s, Lever Fabergé, Unilever Bestfoods and Unilever Cosmetics International and secured a competitive advantage for them through a period which is likely to be one of continuing change for the UK‘s broadcasting structure. This ground-breaking four-year deal marked another step on Unilever‘s Path to Growth strategy, enabling the company to concentrate its resources behind its focused portfolio of leading brands using the most powerful medium, television 10.1 Other mediums of advertisement There a number of ways to advertise both local and global brands in the market. Some of the very common means through which advertisement is done include: Electronics Media Electronic Media has been the major factor in determining the global success of Unilever. In today‘s world where an average middle class individual has access to 30 to 40 channels through the cable minimum, he has the ability to view different types of advertisement just flipping the channels. Thus the consumer of today is so well posted on the fact that whenever a new product is launched, be it in the United Kingdom or in the United States, a consumer living in Asia would be well aware of the features of the products and he would know who the company is targeting. Print Media Print Media advertisement is one of the common ways of advertising. Whenever there is a new campaign being launched or that any event like that of “Daaghnahi tow seekhnakia” by Surf Excel is introduced, the print media including the magazines, newspapers and brochures are relied upon a lot. In print media, the importance of placing the advertisement plays an imperative part in increasing the sales of the product. Billboards Billboards has become one of the most influencing way to advertise in our world. At first there were people who used to paint different types of products on the boards, then came the time when the ads on these billboards used to get computerized and now what you can see on a billboard is massive. You can see a whole advertisement like you watch on your own televisions or the type of moving and animated type of advertisements that you can see on the billboards happen to be very much in fashion. Unilever also has nearly all of its products on the billboards when either its launching a new ad, coming up with price promotions or re launching any product. These ads seem to be appearing all the time, which is really good for the company, as they are easily attracting the customers in every possible manner. 10.2 Innovative Types of Advertising Unilever always has been a pioneer in leading the advertising industry especially in countries like Pakistan. The advertisement they had of Lipton, took the country by storm when they introduced their ad of ―ChayeChahyay‖, which showed a male model and a
    • 40 female standing on the platform of a railway station. This was a very famous advertisement of the 1980‘s and the general consumers liked this new concept. Nearly two years ago the new advertising campaign of Lipton took the country by storm again. And this time the ad was exactly the same as that of the 1980‘s, the jingle was same but obviously new models had to be used. This jingle of the ad became so famous that this jingle was forwarded to thousands on the mobiles and most people had their ring tones sent as this jingle. Hence, using this type of innovative advertising technique has greatly increased the recall value of the customer. Giving out free Samples When the new Sunsilk Black was introduced in Pakistan, what the company did was, to create awareness amongst the youth they went to schools and colleges and distributed free samples of the products and gave out little brochures which told the qualities that the product had and the proper method of getting a black and shiny hair look. Advertising Alliance AOL Time Warner and Unilever announced their multi-million dollar advertising alliance. AOL Time Warner, the world's largest advertiser, announced a multi-million dollar enhanced cross-platform advertising and marketing partnership under which AOL International Quality of advertisements The Axe 'getting dressed' TV ad has won a Gold Lion at Cannes for international advertising quality. This is the second time in four years that a European Axe film has scooped the top award. The ad shows a spontaneous encounter between a young couple who meet in a supermarket. It's a poignant, romantic tale: in essence, a modern day urban fairy tale. Young men watching the ad are reassured by the message that Axe is an effective 24-hour deodorant. Time Warner will bring Unilever's wide array of leading consumer product brands to millions of consumers through innovative marketing campaigns across AOL Time Warner's broad range of online, on-air and print media in 2002. 10.3 Unilever Is Dipping Into Social Media in Asia Unilever is turning on the cyber charm in Asia with a burst of social-media activities for brands like Pond's, Lux and Comfort. One effort in China, an experiment to use bloggers in a blind test of Pond's Age Miracle moisturizer, will become a regional marketing strategy for the skin-care brand. Unilever chose a stealthy, digital campaign to generate buzz, establish the product's credibility and encourage Chinese women to give Pond's Age Miracle a try. In the market for just a year, Pond's Age Miracle hasn't leaped off store shelves. The anti-aging cream faces strong competition from entrenched brands such as Clinique, L'Oreal, Lancome and Procter & Gamble's SK-II and Olay brands. Like most Asian women, Chinese women are fastidious about their skin-care regimen and loyal to favorite products. After weighing the costs of an ad blitz in traditional media, Unilever opted for a stealthy digital campaign
    • 41 to generate buzz, establish the product's credibility and encourage Chinese women to give Pond's Age Miracle a try. Unilever and Ogilvy PR Worldwide created a blind trial program among affluent women. On sites such as Onlylady.com , Unilever asked for volunteers to try out an unidentified anti-aging solution and quickly signed up with 150 official testers. It was a risky decision. China's blog community is large, active and influential. More than 100 million Chinese claim to communicate via forums and discussion boards and 41 million are heavy social-media contributors, according to Netpop. If women hated Pond's Age Miracle, the brand would tank. To Unilever's relief, bloggers gushed over the mysterious moisturizer in hundreds of posts during a seven-day trial last month. Even after the trial ended, nine out of 10 continued to endorse the brand as enthusiastic, and unpaid, brand ambassadors. "This is the first time used we've used social media in China. There is no doubt we will use it more to connect with consumers," said Shanghai-based Laercio Cardoso, VP-marketing for Unilever's home and personal-care brands in China. He's developing social-media campaigns for two other Unilever beauty brands due out at the end of this year. That enthusiasm doesn't come as a surprise Thomas Crampton, Hong Kong-based director of 360 digital influence for Asia/Pacific at Ogilvy PR. "We're conducting social media campaigns in a wide range of ways with many types of clients across Asia. The hunger for it is huge," he said. The China launch strategy was closely monitored by Unilever's global Pond's team in Singapore, which now plans to create similar blind trials to market Pond's Age Miracle in key Southeast Asian markets such as Thailand, Indonesia, the Philippines and Vietnam. Although Pond's is a global skin-care brand, it's especially popular in Southeast Asia. "Everyone was excited by the response in China," said Singapore-based MutyaLaxaBuensuceso, Unilever's global brand director for Pond's. "[And] the cost of those sites are a tenth that of traditional media, so it's very cost efficient as well."s Unilever's Lux campaign features Bollywood star Priyanka.
    • 42 Asia is also a Unilever lab for using Facebook as a marketing tool. The region is home to dozens of Facebook fan sites and communities dedicated to Pond's. One in the Indonesian city of Bandung has close to 10,000 members. Unilever is using that site as a test to reach young Asian women, developing tailor-made Facebook activities like games, invitations to events, a branded merchandise program offering discounts to local lifestyle hangouts and a mobile app with girlfriendly content. Elsewhere in Asia, Unilever engaged consumers of Comfort fabric softener in Vietnam with an interactive campaign by local digital agency Who Digital. In a five-week contest, husbands were invited to submit stories about love. Each week, advertorials in local magazines published five winners. Consumers could also create and send love messages on a Vietnamese-language web site. Unilever's Singapore-based global Lux team is promoting that hair-care brand worldwide this fall with a TV spot by JWT, Singapore, called "Behave Beautiful," starring Bollywood star Priyanka. Lux isn't sold in the U.S., but is a billion-dollar Unilever beauty soap and hair-care brand globally. Last month, in a global first, Unilever invited top beauty bloggers from countries like India, Malaysia, and Indonesia to encourage followers to view the Priyanka spot and then create and upload their own "Behave Beautiful" clips to the Lux YouTube channel. Unilever exec: Create mobile-specific native advertising to engage consumers Unilever's Wish-Bone's creative mobile ad NEW YORK – A Unilever executive at the Media Tech Summit 2013 conference said that marketers should work towards creating content and native advertising that works directly within the context of mobile as opposed to taking what they know from older media and translating it to mobile. During the ―Future of Native Advertising‖ session this week, execs from Unilever and News Corp. discussed the importance of contextually relevant advertising that mirrors the product in which it is placed. The session was moderated by Jordan Kretchmer, chief executive officer of LiveFyre.
    • 43 Unilever‘s Cafe Zero bets on GPS, video to drive in-store traffic Unilever‘s Café Zero recently ran a campaign in Holland that not only built buzz around a seasonal product, but also drove users to nearby locations to try the drink.The mobile ads ran within the Sanoma Media-owned news company NU.nl's iPhone application. The ads were targeted to users and took advantage of mobile video as a way to hook impressions. ―The main goal of the campaign was to raise brand awareness for a 30-second commercial,‖ said Norman van Ameyden, account manager of mobile sales at Sonoma Media, Hoofddorp, Netherlands. Unilever CPGs step up their mobile marketing game Consumer packaged goods companies are starting to get more innovative in using mobile applications, rich media ads and QR codes to have a more direct relationship with consumers. For the most part, CPGs have been slow to adopt mobile marketing with the exception of some a few visionaries such as Procter & Gamble and Unilever. This is starting to change, with a wider group of marketers startingto embrace mobile while some of the early adopters are stepping up their game. UNILEVER FACILITATE ONLINE PEOPLE THROUGH PHONEBOOK where there is talking pages, yellow pages, mobile and find a person to click in get information immediately about unilever and its products or business information and phone numbers & addresses. Unilever has doing mass advertisement on TV and social media to attract and interact with people To make their product for persons to make purchase first rather than‖ I‘m gona buy it‖ to ―I just bought it‖.
    • 44 CONCLUSION Unilever is committed to diversity in a working environment where there is mutual trustand respect and where everyone feels responsible for the performance and reputation of our company. They are committed to safe and healthy working conditions for allEmployees. We will not use any form of forced, compulsory or child labor. AndCommitted working with employees to develop and enhance each individual's skills andCapablities. Unilever is providing branded products and services which consistently offer value interms of price and quality, and which are safe for their intended use. Products andservices will be accurately and properly labeled, advertised and communicated. Unilever l conducts its operations in accordance with internationally accepted principles of good corporate governance. We will provide timely, regular and reliable information on our activities, structure, financial situation and performance to all shareholders. Unilever is establishing mutually beneficial relations with our suppliers, customers and business partners. Unilever is making continuous improvement in its supply chain management and standard of advertisement and policy. More than 150 million times a day someone, somewhere is choosing a Unilever product. A good brand is vital to an organization and this report has reflected how Unilever has managed to be just that. It is clear from the analysis and survey carried out that the company is adopting global branding to its highest standards and that is exactly how the global presence of any company is taken to its highest levels of success. So far unilever has been able to be one of the best I the business. That is what global branding is all about. It allows companies the access to consumers all over the world and increases their customer base to a large extent. It allows them to expand their horizons and to make a global impact of their products all over the world. They have more market segments to target and can increase their product line to a large extent. Different countries market their products. These are the benefits of companies going global and they have been reflected above in this report in the form of unilever’s global success.
    • 45 Reference http://www.unilever.pk/our-brands/detail/Sunsilk/337204/ Date 12/14/2013 http://pakmediablog.net/726/sunsilk-talk-about-interactivity/ Date 11/8/2013 http://www.supplychainbrain.com/content/technology-solutions/product-lifecyclemanagement/single-article-page/article/how-unilever-derives-value-from-its-supply-chain-1/ Date 11/8/2013 http://nsrivastava.blogspot.com Date 11/4/2013