This document provides information about Nestle's juices business in Pakistan. It discusses Nestle's objectives, introduction and history, products, industry analysis, procurement process, and recommendations. The key points are: - Nestle has been operating for over 140 years and has 2000+ brands in 197 countries. - It currently has 24 fruit juice/pulp processing plants in Pakistan. - The FMCG industry in Pakistan is growing at 18% annually and Nestle has 35% market share in the juices segment. - Nestle's procurement process involves evaluating and selecting suppliers, negotiating contracts, forecasting demand, and transporting fruits from various countries to its processing plants in Pakistan.

1. NESTLE JUICES
Group 5 :
 Shaiyanne Mall
 Sheryar Taqi
 Muhammad Ahmed
 Abdullah Shahid
 Umar Talha

2. Objectives
 Introduction
 Industry Analysis
 Procurement Process
 Recommendation

3. Introduction
 Nestle is providing safe, quality nutrition for more
than 140 years.
 Nestle is currently operating in more than 197
countries, with 2000+ brands.
 Their objective is to be the leader in nutrition , health,
and wellness.
 Currently there are 24 fruit juice/pulp processing
plants in Pakistan.
 Capacity of more than 400,000 metric tons back in
2008.
 Current revenue growth rate of 12% as of 2015 .

4. Products
Nestle has established two brands to combat
competitors in two separate target markets,
namely : Nesfruta and Fruita Vitals.
 Pineapple from Indonesia
 Guava from Pakistan
 Apple from Turkey
 Mangoes from Pakistan
 Red Grape from Italy
 Peach from Greece

5. Industry Analysis
 FMCG industry
 High turnover, large sales volume, low price
 High industry growth rate – CAGR 18%
 Nestle has 35% market share
 Pakistani demographics favor further growth

6. Market Share

7. Industry Analysis
 Juices
 Nestle Nesfruta vs Country and Shezan
 Nestle Fruita Vitals vs Malee and Fruitien
 Seasonal variations


8. Revenue Trends

9. Industry Analysis
 Economic factors:
 Inflation rate
 Infrastructure facilitating business
 Legal and regulatory policies
 Social Factors
 Technological factors

10. Procurement Process
 Evaluation of supplier through Quality Audits
 Major factor in supplier selection- flexibility
 Vendors are approved by the Quality Assurance
Department followed by price negotiations
 Price quotations are drafted containing
particulars
 Transportation of fruits from international suppliers-
under Cost and Freight Terms

11. Procurement Process
 A year long contract signed with the suppliers
 Consideration of different factors when
forecasting
 Lead times
 Foreign Currency Fluctuations
 Purchase order has been placed
 Detailing types, quantities and agreed upon
prices for products
 Transportation time of fruits from Europe-
30 days
 Cost of Shipping- USD 75/ton

12. Procurement Process
 Transportation of fruits to the juice processing
plants:
Sheikhupura
Kabirwala
 Contracts with companies for packaging-
Tetrapak, Packages and APL
 Use of VMI and its incorporation in the firm
wide ERP
 Use of Advanced Planning and Optimization
application in the Supply

13. Procurement Process
 Supply Chain Management System
 Functionalities that span different functional
areas
 Demand Supply Matching
 Transport management
 In-depth production scheduling
 Supply Network Planning

14. Procurement Process
 Juices on completion of production undergo a
Relax Time which is 6-7 days
 During relax time- Inspection Audits are carried
out to ensure quality
 Division of Target market into 3 zones
 Central
 Northern
 Southern

15. Procurement Process
 Transportation of juices to retailers and
wholesalers through trucking companies
 Trucking companies also Quality control
departments
 Major retailers are Hyperstar and Metro who
order 3000 tons/ month of Nestle Juices

16. Recommendations
 Bridge the gap between planning and procurement
 The procurement department is a ‘lagging
department’ whereas; it should be the ‘leading’ one.

17. THANK YOU