Description
DMTF was founded in 1992. It is a Standards Development Organisation where companies, other organisations and single persons can become members. In 2012, DMTF had more than 4000 active participants out of more than 200 organisations and companies
Nestlé(Milkpak)
Distribution Management
Group Members
1.Mehreen Gilani 2.Mujahid Arshad 3. Muhammad Ashraf 4. Saima Ismail MBC-09-23 MBC-09-05 MBIT MBC-09-33
Nestlé Introduction
• Nestlé in Pakistan since 1988, • parent company, Switzerland-based Nestlé SA, • acquired share in Milkpak Ltd • VISION AND STRATEGY The Nestlé global vision is to be the leading health, wellness, and nutrition company in the world. • GLOBE – Global Business Excellence,
Nestle Milestone in Pakistan
Nestle Brands
• Milk diary and chilled diary • Beverages • Bottled water • Baby food • Food • Breakfast cereals • Chocolate and confectionary
? Milk Diary and Chilled Diary • Milkpak • Nesvita • Nido • Neslac • Everyday • Nestle dahi • Nestle fruit yogurt • Nestle raita • Milkpak cream • Nestle creations
Nestle Milkpak
• Diary Industry of Pakistan
MILKPAK Introduction
?Milkpak was first introduced in the market by Milkpak Ltd. in 1981 and originated the packaged milk category by which they pioneered tetra pack milk in Pakistan ?By 1988, the company purchased 120 tons of milk a day from 26,000 farmers ?UHT (Ultra-High Temperature Processing) treatment
MILK COLLECTION
• Pakistan is the world's fifth largest producer of milk • Punjab's milk district. Hundreds of thousands of small farmers live over an area of 100,000 square kilometers in central Punjab.
STEPS IN MILK COLLECTION
• • • • Step 1 A small farmer in rural Sheikhupura district milks his buffalo twice a day and takes about 4 liters to one of Nestlé's 500 Village Milk Collection Centers. Step 2 At the Village Milk Collection Centre the farmer's milk is poured into aluminum churns. The agent checks the milk's freshness and purity, and enters the quantity into the farmer's logbook. He takes it to one of Nestlé's 1308 Secondary Reception and Cooling Stations, about 2-4 kilometers away. Step 3 The Secondary Reception Station has a large electrically powered cooling tank. A milk inspector measures the fat content, the non-fat solids content, and the milk's acidity. Once satisfied, he takes the milk to one of 27 Main Reception and Cooling Stations. Step 4 At the Main Reception and Cooling Stations the milk is poured into huge tanks and is thoroughly checked for quality. The milk is dispatched to the factories. Step 5 At the Sheikhupura and Kabirwala factories, the milk is processed and packed into the familiar Nestlé cartons you can find in your grocery store. It is checked for quality thrice before being released for sale. Some is processed into yoghurt, powdered milk, or other dairy products.
• •
• • • •
NESTLE MILKPAK PRODUCTION
Ingredients of milk should be • Fats 3.5% • Solid Non Fats 8.5% • Overall solid Contents 12.4% • Water • After reaching the factories, milk is transported to huge steel containers called Silo's • milk is boiled and led through pipes to the filling area where it is packaged in different sizes and fitted into trays • The packaged milk is shifted to the warehouses in the factories and sent out to the distributors and retailers accordingly
• Packaging from Tetra Pak. • layers packing saving the milk from bacteria attack and chemical reaction. • capacity to store milk for three months • saves the milk from light and sun
DISRTIBUTION NETWORK
Supply Chain flow
Factory Handling Agent Consumers
Retailers
Direct Distributor
Market Channels
Sub Distributor
Market channels
Retail shops
Wholesale shops Key accounts Professional buyers
Potential Accounts
Hierarchy in Distribution
Country head National manager
Zonal sales manager
Regional sales manager Area sales manager Territory manager Marketing people Supervisor Order booker Delivery man
RS & F Distribution Center
RS & F at Bosan road caters following territories: • Gulgasht • Ghanta Ghar • Suraj Miani • Khanewal road to • Rawan bypass etc. • Sorroundings.
• RS & F at walaitabad, vehari road caters following territories: • Mumtazabad • Kent • Vehari chock • Sher Shah • All gates( haram, dolat etc.) • Nawab Adda etc.
SUPPLY CHAIN drivers
SUPPLY CHAIN drivers
?LOGISTICAL DRIVERS
•FACILITY •INVENTORY •TRANSPORTATION
Facility ?Key decision in facility
1. 2. 3. Role Location Capacity
Inventory
1. 2. 3. ? ? ? ? ? ? POWDER LIQUID PURE LIFE inventory cycle 15 days for powder inventory cycle 8 days for liquid The Nestle safety inventory is moderate Prevention from wastage of products control over handling cost & safety cost practice to prevent from over excess of safety stock
Transportation
? transportation policy on the basis of customer needs ? 50 % own vehicles & 50% outsourcing Key decision in transportation • Design of transportation network
• Cross functional Drivers 1. Information 2. Sourcing 3. Pricing
Information
? distribution information system DMS ? The usage of distribution data management system for better control & flow of information ? “FORGAN” software from Zavier
SOURCING
? Distribution centers with Nestle own Supervisors employed ? Administration, accounts and some marketing services are also outsourced at distribution level
Pricing
? fixed price strategy ? some relaxations to some parties like accounts & professional buyers
PLANNING AND FORECASTING OF NESTLE MILKPAK
Demand Planning
• • • • • Rolling Sales Forecast Monthly Forecast Review Monthly Operational Review Weekly Supply and Demand Review Percentages are set for the Net Proceeds from Sales (NPS) and the Real Internal Growth (RIG).
Forecasting
• • • • Market Share Market Factor Market Potential Sales Potential
• Sales Forecast ? Market Analysis ? Survey of Buyers Intention ? Test Marketing ? Past Sales and Trend Analysis ? Sales Force composite ? Executive Judgment ? Product Planning and Development
COMPETITIVE ENVIROMENT OF MILKPAK
? Major Competitors • Haleeb Milk (from Haleeb Foods) • Olper’s ? Minor competitors • Good milk • Nurpur • Nirala • Gourmet • Diary Queen
SWOT ANALYSIS
Strengths
? BRAND name ? no compromise on quality. ? system of sale & sale promotion ? milk collection procedure
Weaknesses
• Variety • limited number of sales staff in the southern Punjab
Opportunities
• focus on lower middle class • introduce milk bottle like Candia and sell them directly to the customers they can increase their share
Threats
• lower companies like Dairy Queen, nirala gourmet
QUESTIONS?
doc_416337857.pptx
DMTF was founded in 1992. It is a Standards Development Organisation where companies, other organisations and single persons can become members. In 2012, DMTF had more than 4000 active participants out of more than 200 organisations and companies
Nestlé(Milkpak)
Distribution Management
Group Members
1.Mehreen Gilani 2.Mujahid Arshad 3. Muhammad Ashraf 4. Saima Ismail MBC-09-23 MBC-09-05 MBIT MBC-09-33
Nestlé Introduction
• Nestlé in Pakistan since 1988, • parent company, Switzerland-based Nestlé SA, • acquired share in Milkpak Ltd • VISION AND STRATEGY The Nestlé global vision is to be the leading health, wellness, and nutrition company in the world. • GLOBE – Global Business Excellence,
Nestle Milestone in Pakistan
Nestle Brands
• Milk diary and chilled diary • Beverages • Bottled water • Baby food • Food • Breakfast cereals • Chocolate and confectionary
? Milk Diary and Chilled Diary • Milkpak • Nesvita • Nido • Neslac • Everyday • Nestle dahi • Nestle fruit yogurt • Nestle raita • Milkpak cream • Nestle creations
Nestle Milkpak
• Diary Industry of Pakistan
MILKPAK Introduction
?Milkpak was first introduced in the market by Milkpak Ltd. in 1981 and originated the packaged milk category by which they pioneered tetra pack milk in Pakistan ?By 1988, the company purchased 120 tons of milk a day from 26,000 farmers ?UHT (Ultra-High Temperature Processing) treatment
MILK COLLECTION
• Pakistan is the world's fifth largest producer of milk • Punjab's milk district. Hundreds of thousands of small farmers live over an area of 100,000 square kilometers in central Punjab.
STEPS IN MILK COLLECTION
• • • • Step 1 A small farmer in rural Sheikhupura district milks his buffalo twice a day and takes about 4 liters to one of Nestlé's 500 Village Milk Collection Centers. Step 2 At the Village Milk Collection Centre the farmer's milk is poured into aluminum churns. The agent checks the milk's freshness and purity, and enters the quantity into the farmer's logbook. He takes it to one of Nestlé's 1308 Secondary Reception and Cooling Stations, about 2-4 kilometers away. Step 3 The Secondary Reception Station has a large electrically powered cooling tank. A milk inspector measures the fat content, the non-fat solids content, and the milk's acidity. Once satisfied, he takes the milk to one of 27 Main Reception and Cooling Stations. Step 4 At the Main Reception and Cooling Stations the milk is poured into huge tanks and is thoroughly checked for quality. The milk is dispatched to the factories. Step 5 At the Sheikhupura and Kabirwala factories, the milk is processed and packed into the familiar Nestlé cartons you can find in your grocery store. It is checked for quality thrice before being released for sale. Some is processed into yoghurt, powdered milk, or other dairy products.
• •
• • • •
NESTLE MILKPAK PRODUCTION
Ingredients of milk should be • Fats 3.5% • Solid Non Fats 8.5% • Overall solid Contents 12.4% • Water • After reaching the factories, milk is transported to huge steel containers called Silo's • milk is boiled and led through pipes to the filling area where it is packaged in different sizes and fitted into trays • The packaged milk is shifted to the warehouses in the factories and sent out to the distributors and retailers accordingly
• Packaging from Tetra Pak. • layers packing saving the milk from bacteria attack and chemical reaction. • capacity to store milk for three months • saves the milk from light and sun
DISRTIBUTION NETWORK
Supply Chain flow
Factory Handling Agent Consumers
Retailers
Direct Distributor
Market Channels
Sub Distributor
Market channels
Retail shops
Wholesale shops Key accounts Professional buyers
Potential Accounts
Hierarchy in Distribution
Country head National manager
Zonal sales manager
Regional sales manager Area sales manager Territory manager Marketing people Supervisor Order booker Delivery man
RS & F Distribution Center
RS & F at Bosan road caters following territories: • Gulgasht • Ghanta Ghar • Suraj Miani • Khanewal road to • Rawan bypass etc. • Sorroundings.
• RS & F at walaitabad, vehari road caters following territories: • Mumtazabad • Kent • Vehari chock • Sher Shah • All gates( haram, dolat etc.) • Nawab Adda etc.
SUPPLY CHAIN drivers
SUPPLY CHAIN drivers
?LOGISTICAL DRIVERS
•FACILITY •INVENTORY •TRANSPORTATION
Facility ?Key decision in facility
1. 2. 3. Role Location Capacity
Inventory
1. 2. 3. ? ? ? ? ? ? POWDER LIQUID PURE LIFE inventory cycle 15 days for powder inventory cycle 8 days for liquid The Nestle safety inventory is moderate Prevention from wastage of products control over handling cost & safety cost practice to prevent from over excess of safety stock
Transportation
? transportation policy on the basis of customer needs ? 50 % own vehicles & 50% outsourcing Key decision in transportation • Design of transportation network
• Cross functional Drivers 1. Information 2. Sourcing 3. Pricing
Information
? distribution information system DMS ? The usage of distribution data management system for better control & flow of information ? “FORGAN” software from Zavier
SOURCING
? Distribution centers with Nestle own Supervisors employed ? Administration, accounts and some marketing services are also outsourced at distribution level
Pricing
? fixed price strategy ? some relaxations to some parties like accounts & professional buyers
PLANNING AND FORECASTING OF NESTLE MILKPAK
Demand Planning
• • • • • Rolling Sales Forecast Monthly Forecast Review Monthly Operational Review Weekly Supply and Demand Review Percentages are set for the Net Proceeds from Sales (NPS) and the Real Internal Growth (RIG).
Forecasting
• • • • Market Share Market Factor Market Potential Sales Potential
• Sales Forecast ? Market Analysis ? Survey of Buyers Intention ? Test Marketing ? Past Sales and Trend Analysis ? Sales Force composite ? Executive Judgment ? Product Planning and Development
COMPETITIVE ENVIROMENT OF MILKPAK
? Major Competitors • Haleeb Milk (from Haleeb Foods) • Olper’s ? Minor competitors • Good milk • Nurpur • Nirala • Gourmet • Diary Queen
SWOT ANALYSIS
Strengths
? BRAND name ? no compromise on quality. ? system of sale & sale promotion ? milk collection procedure
Weaknesses
• Variety • limited number of sales staff in the southern Punjab
Opportunities
• focus on lower middle class • introduce milk bottle like Candia and sell them directly to the customers they can increase their share
Threats
• lower companies like Dairy Queen, nirala gourmet
QUESTIONS?
doc_416337857.pptx