1. Supply
Chain
Management
Fall
Semester
Customer is an integral part of the supply chain Includes movement of
products from suppliers to manufacturers to distributors and information,
funds, and products in both directions. Typical supply chain stages:
customers, retailers, distributors, manufacturers, suppliers All stages may
not be present in all supply chains
Final Project

2. The Institute of Management and
Sciences
Lahore Cantt
Supply Chain Management
: Submitted to :
Mr. Sarfraz Rashid
: Submitted by:
Muhammad Fahad Ali Mirza (121103)
Muhammad Shakeel (121104)
Ahsan Naseem (
)
Muhammad Usman (092306)
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3. Dedication
First of all many thanks to ALLAH almighty, who blessed us with a lot of skills and abilities.
Through which we are able to complete our research with in time. We would also like to thank
Sir. Sarfraz Rashid whose way of teaching, method, guidance support us to do this task
effectively and efficiently. And we would like to dedicate this Final Report to the Companies
through which we are able to complete it.
The blessing, help and guidance given by him time to time shall carry us a long way in the
journey of life on which we all about to embark.
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4. Table of Contents
Objectives of Study ....................................................................................................................... 4
Benefits of Study ........................................................................................................................... 4
Nestlé Pakistan .............................................................................................................................. 5
Engro Food Limits ........................................................................................................................ 6
Haleeb Foods ................................................................................................................................. 7
Milk Industry of Pakistan ............................................................................................................ 9
Industry Market Share ............................................................................................................... 10
Milk from Rural to Tetra Pack.................................................................................................. 11
Partnership with Suppliers ........................................................................................................ 11
Small Village Diaries ............................................................................................................... 12
Parameters for the Supply Chain Management ...................................................................... 12
Logistics: .................................................................................................................................. 12
Distribution Network .............................................................................................................. 13
Warehouse facilities ................................................................................................................ 16
Inventory Management........................................................................................................... 17
Milk Processing of Nestle, Olper’s & Haleeb ....................................................................... 18
Milk Collection System of Nestle, Olper’s & Haleeb ........................................................... 19
Customer Relation Management: .......................................................................................... 19
Product Visibility: ................................................................................................................... 22
Cost Comparison:.................................................................................................................... 23
Comparison of Nestle, Olper’s & Haleeb: ................................................................................ 24
Recommendations: ...................................................................................................................... 24
References:................................................................................................................................... 25
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5. Objectives of Study
To maximize the overall revenue of firm.
Build branded food business to improve quality of life by offering tasty, sage,
hygienically processed, affordable, highly nutritional food products through environment
friendly processes to our customers while maximizing stake holders' value.
Supply chain profitability is the total profit to be shared across all supply chain stages.
The main objectives of Supply chain management are to improve the overall organization
performance and customer satisfaction by improving product or service delivery to
consumer.
Optimizing the decision to source internally from the external supply chain.
Delivering controlled and predictable supply outcomes.
Aligning sub-contracts and processes with customer requirements.
Reducing the cost base, controlling quality, improving operational efficiency and
protecting the commercial position of the company.
Benefits of Study
Balancing Supply & Demand and becoming able to forecast future Demand and Supply.
Improving our supply chain decision making.
Practical Learning through Project work.
Exposure to different companies in there supply chain polices.
Enhancing Decision making skills through practical visit in the company.
Becoming able to differentiate and selecting the best available supply chain process.
Learning the balance between cost and revenue through Supply Chain.
Marking the difference between the procurement and inventory management.
Learned the supply chain profit is the total net profit.
Company Profit margins are linked with the Supply Chain.
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6. Introduction
Nestlé Pakistan
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. - a company of Swiss origin headquartered in
Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock
exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak ltd and took
over management in 1992. For ten years in a row, the company has won a place among the top
25 companies of the Karachi Stock Exchange.
Headquartered in Lahore, the Company operates four production facilities. Two of its factories in
Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and one in
Karachi produce bottled water. Through its effective marketing and a vast sales and distribution
network throughout the country, it ensures that its products are made available to consumers
whenever, wherever and however.
Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image, and we continue to enhance the quality of life of people.
Nestlé Pakistan now operates the biggest milk collection operation in Pakistan, Currently; Nestlé
Pakistan collects milk from an estimated 190,000 farmers spread over 145,000 sq. Km's in the
province of Punjab and Sindh.
Nestlé believes in creating shared value and is committed to the communities it works and lives
with. In Pakistan, the company is working closely with the communities in areas related to
Nutrition, Water and Rural Development, and continues to enhance the quality of life of people
throughout its value chain.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on
Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to
serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health &
Wellness. Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in
our DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that
food choices affect their health and quality of life.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture. Nestlé’s existing
products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term performance.
The Company’s priority is to bring the best and most relevant products to people, wherever they
5

7. are, whatever their needs are, and for all age groups.
In line with Nestlé’s global philosophy, Nestlé Pakistan is proud of its commitment to excellence
in product safety and quality and to providing value and aims to be the leading Nutrition, Health
and Wellness Company. As a socially responsible corporate, we always focus on environment
friendly operations, ethical business practices and our responsibility towards the communities.
Vision
Nestlé’s global vision is to be the recognized leading Nutrition, Health and Wellness Company.
Nestlé Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and
Wellness Company in Pakistan. In particular, we envision to;
Lead a dynamic, passionate and professional workforce – proud of our heritage and positive
about the future.
Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition to
pleasure, through an innovative portfolio of branded food and beverage products of the highest
quality.
Deliver shareholder value through profitable long-term growth, while continuing to play a
significant and responsible role in the social, economic, and environmental sectors of Pakistan.
Mission
To positively enhance the quality of life of the people of Pakistan by all that we do through our
people, our brands and products and our CSV activities.
Ambition
To be the leading Nutrition, Health and Wellness Company in Pakistan.
Engro Food Limits
Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004.
Using dairy as a stepping stone to enter into the food business, the Company has established
state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream production
facility in Sahiwal.
Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been successfully
launched under the helm of Company’s dairy products. To support these brands and their highest
standards of quality, Engro Foods has invested heavily in milk processing and milk collection
infrastructure.
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8. With an acquisition of Al Safa – a fast growing and established Halal meat brand – Engro Foods
is now venturing into North American market starting from Halal Foods category. The new
organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to
aggressively grow the business in this market.
With the vision of Elevating Consumer Delight Worldwide, Company’s significant focus will be
towards the global operations in the years to come.
Vision
Aim at transforming the company within five years into first national food industry gaint, then
into regional force and finally into global force.
Mission
Build branded food business to improve quality of life by offering tasty, affordable and high
nutritional products to our customers while maximizing stakeholder’s value.
Ambition
Engro Foods main objective is to supply everyone there favourite Olper’s Milk & to satisfy the
consumer needs and wants. Engrofoods second objective is to increase the value for the
stakeholders and compnay value. We want to be major player in the food industry.
Haleeb Foods
Haleeb Foods Ltd. was incorporated on July 1st, 1984 with a capital of Rs. 46 Million under the
name of Chaudhry Dairies Limited which was renamed as CDL Foods Limited and now it is
known to be as Haleeb Foods Limited. At that time it had the capacity of producing 80,000 /
liters of milk per day having total area of 32 acres. Initially 150 people were employed at the
plant. The production process started with UHT liquid milk. The liquid milk was the first product
launched in the market, it started its operation in 1985 at that time 20 other dairy plants were also
coming in, and all those including MILKPAK were using obsolete technology that was used in
EUROPE. Haleeb Plant was the only plant based on the latest technology and the basic idea
behind that were particularly dairy foods products. Haleeb is one brand that is toady known
everywhere.
From November 1989 till December 1991 Haleeb had a joint venture with fries land Frico Domo
of Netherlands. This joint was amicably dissolved on account of FFD's change in management in
their global strategy. Today as an ISO 9002 certified company, Haleeb is the dominant market
leader of UHT milk in Pakistan by capturing 52 % share.
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9. Franchise agreement with Canada, a market leader in the liquid milk market in France, was
assigned in December 1998. Under this arrangement, the company launched Candia range of
value added liquid milk product and also have access to latest production, technical and
marketing knowhow. Initially company launched different products but some of them could not
become successful. As the company's core concern is quality eventually company abandoned
products that were not according to the market needs. In 2002 the company contributed 54% to
the country's packed milk market.
In order to provide best quality products to its consumers, HFL has a well-developed supply
chain infrastructure. It has heavily invested in a vast network of company operated milk
collection centers across the country. HFL has a strict and stringent quality policy regarding
intake of raw milk. It is the only company that conducts 21 rigorous quality tests to ensure that
only fresh milk of the highest quality is accepted at the plant premises. These internationally
recognized tests are used to check for: a) adulteration, b) microbiological contamination and c)
adequacy of nutritional contents. Further, Haleeb Foods is the only food company in Pakistan
that has the following international certifications of quality and prestige:
·
HACCP (in process controls for safer products)
·
ISO 9001 – 2000 (better quality for greater customer satisfaction)
·
ISO 14001 (environment-friendly operations)
Vision
Most Innovative and fastest growing food company offering products enjoyed in "every home
every day.
Mission
Build Branded food business to improve quality of life by offering tasty, affordable and highly
nutritional products to our consumers while maximizing stake holders' value.
Ambition
Build branded food business to improve quality of life by offering tasty, sage, hygienically
processed, affordable, highly nutritional food products through environment friendly processes to
our customers while maximizing stake holders' value.
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10. Milk Industry of Pakistan
Pakistan is the one of the biggest Milk producers in the world. Still Pakistan is not using any
modern technology. With modern technology we can triple the production of the milk.
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11. Industry Market Share
Pakistan is the Developing Country. Still there are people who live below the poverty line. But
by making the Efforts Packed milk have made some mark in the society with the view of Social
Responsiveness and effective advertisement.
Milk
Packed
Fresh
In total consumption of the milk the Fresh milk holds the 60% Share while Packed Milk
holds the 40%.
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12. Milkfrom Rural to Tetra Pack
Milk is obtained from the Different sources. After obtaining the milk from different sources it
goes through the different processes to increase its shelf life and to make it Healthy and safe.
Partnership with Suppliers
In our efforts to provide pure, high quality milk to consumers in distant towns, Companies
entered into an unprecedented partnership with local farmers. Today, Companies entered the
milk district in force, the hard work and determination for milk collection & technical assistance
teams and their dedication to Corporate Social Responsibility have raised the bar for dairy
concerns in Pakistan.
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13. Small Village Diaries
An agent runs the diary. It occupies a small room, either in the agent’s house or in a building that
Company rents.
The milk collected on average is two times 150 liters per day.
The agent does a quick tasting test on the milk before recording the delivery in the farmer’s
personal milk logbook.
The dairy is open two or three hour’s morning or evening.
The agent transports the milk to the secondary receptions and cooling station before closing.
Parameters for the Supply Chain Management
Logistics
Warehouse
Distribution network
Product Visibility
Customer Relation Management
Milk Processing
Milk Collection
Cost Comparison
Inventory Management
Logistics:
Nestle
Inbound Logistics:
Inbound logistics used for milk collection from different milk collection Centre is centrally
owned by nestle Pakistan limited. In Pakistan, logistics has always had been a problem especially
for sensitive product like milk in the hot weather. Initially the supplier who supplied there milk.
Outbound logistics:
Outbound logistics concerns finished milk movement from factory to different warehouses
located in different cities. The logistics usually take 3 days to arrive at Nestlé’s warehouses in
Karachi from their manufacturing factories at Lahore, Kabirwala and Sheikhupura
Size
1 liter
200 ml
1.5 liter
500 ml
No. of cartoons
1092
1815
1040
1750
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14. Olper’s
Inbound Logistics:
Long vehicles are generally used by the Olper’s for the collection of the milk situated at the
various locations in the rural area. Due to the bad Traffic conditions it is sometimes difficult for
the Company to maintain their level of the service. During summers weather is hot, so cooling is
very important factor while getting the milk in the factory.
Outbound Logistics:
Company have 80% of the dedicated fleets for the distribution of the milk. And remaining 20%
are especially open truck for the northern areas. Company also uses the Third party for the
logistics purpose. Third party provides the specialized Transportation and warehousing facilities
to the company.
The below given Figures are of the 50 Feet truck.
Size
1 Liter
250 ml
1.5 Liter
500 ml
No. of Cartoons
939
1552
890
1497
Haleeb
Inbound Logistics:
Long Vehicles are used by Haleeb for the collection of the milk. Haleeb Milk has their own
farms as well as the suppliers. Haleeb Milk takes majority of the Milk from the rural area of the
Punjab. During summer they use the centralized cooling truck to transport the Milk from Farm to
the Factory.
Outbound Logistics:
Haleeb Milk has hired the Third party for the Distribution of the milk. The third party provides
the facility of warehouse and transportation. They have the minimum number of their own
outbound facilities.
Distribution Network
Nestle
There are many authorized distributors of milkpak. Company has its own network of vans, which
deliver the milk to all the retail outlets early morning. Nestle uses the SAP software to make the
response time effective and fast enough so that goods can be delivered.
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15. Channel Level:
Manufacturer It is a two-level channel, milkpak has its own distributors which are supposed to
deliver the milkpak to the wholesaler as well as the retailer,. Consumer Wholesaler &Retailer
Distributor
1. Direct Channel : It includes the sales Promotions
2. Indirect Channel : It includes Retails outlets. Pakistani Consume 80% of the Milk from
the Indirect Channel that is the Retail Channel.
According to the distribution, Pakistan is divided into three geographical zones.
North Zone
Islamabad & North Outstations
Jhelum
Peshawar
Central Zone
Lahore
Faisalabad
Gujranwala
Multan
Sahiwal
South Zone
Karachi
Hyderabad
Quetta
Sukher
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16. Mother Godown
Carriage & Forward Agent
Distributor
Retailor
Superstockist
Wholesaller
Redistributor
Retailor
End Customer
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17. Olper’s
Olper’s have a vast range of the Distributors. They don’t have any major software for it. They
uses simple excel sheet with the supplier to record the order and while dispatching the Milk they
still use the same method.
Olper’s have a Distribution network which is divided into three Geographical Zones.
North Zone
Rawalpindi & Islamabad and outstation areas
Peshawar
South Zone
Karachi
Hub
Nawabshah
Central Zone
Lahore
Gujranwala
Multan
Haleeb
Haleeb have a wide range of the Distributors. Haleeb being the oldest company enjoys the luxury
of being having the biggest Distribution channel. That’s the main reason why the Haleeb milk is
accessible in all regions of Pakistan. Especially in the rural areas of the Pakistan. Haleeb Focus is
more on the Rural and developing areas where the competition is prevailing.
Warehouse facilities
Olper’s
Olper’s have three major warehouse located at different locations for the better response time
and associability
Rawalpindi:
Rawalpindi is the Central warehouse of the company. It covers 30,000 sq.ft which is on the
rental basis @600,000/- per months. It fulfills the requirement of the northern regions of the
Pakistan.
Sukhur:
Adjacent to the manufacturing plant which covers whole of south i.e. Sindh and Baluchistan. The
Sukhur Warehouse is placed adjacent to the factory and has a capacity of 1.6 million liter of milk
and a daily average dispatch of 350,000 liters of milk.
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18. Sahiwal:
This is known as the mother warehouse which is situated adjacent to the factory which covers the
central area of the Pakistan. It has the capacity of 4 million liters of milk and average dispatch of
daily 400,000 liter of Milk.
Nestle
Milk is very perishable item; therefore it is required very effective storage conditions at
warehouses to preserve milk in its real condition. For this Nestle milkpak warehouses contains
very suitable temperature atmosphere, temperature should not increase from 38 degree Celsius in
order to keep preserve milk in its fresh condition.
In Lahore distributor have four warehouse around the city in Fatehgarh, Islampura, Bedian,
Muslim town. From the Fateh Garh warehouse they are covering four areas which are swami
nagar, dharam pura, daroghawala, Shalimar. From Islam Pura warehouse they are covering 10
areas which are wall city, jail road, railway station, gari shahu, badami bagh, shadrah, amen park,
islam pura, band road, gulshanravi.From their Bedian warehouse they are covering four areas
which are DHA, Cantt, Walton, Bhatta chowk and mm alam. From the Muslim Town warehouse
thy are coveing 12 areas which are faisal town, garden town, ferozepur road.firdous market,
gulberg,, model town, ichra, iqbal town, green town .
Nestle warehouse uses a proper system to record all the in and out of the products. Warehouse in
charge is the person to record all the transactions. Nestle also have the Handling facilities in
three different locations.
Gujranwala
Mureedky
Sadoki
Haleeb
Haleeb is the One of the leading milk producers of the Pakistan. Haleeb warehouses are located
adjusted to the factory. In BhaiPheru& Rahim Yar Khan. Haleeb supplies the milk from there
to the whole country through the distribution Network.
Inventory Management
Milk is a perishable item. It can’t be stored for a longer period of time. Even after processing the
milk to increase its Shelf Life up to Six months still the companies have adopted the FIFO (First
In First Out) method. In this method the company supplies the product which is produced first is
put in the market first. As the cost of inventory is very high companies tries to maintain the
minimum required inventory to meet the customer expectations under the unusual
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19. circumstances.All the three companies Nestle, Olper’s and Haleeb use the FIFO system. Nestle
have a safety inventory of Eight Days and Olper’s have the safety inventory of one week based
upon the Centralized concept of Warehousing. Inventory also comes with the cost. More the
Inventory level the cost will increase and profit margins will automatically Decrease.
Milk Processing of Nestle, Olper’s & Haleeb
Milk Reception
The Milk Reception Unit receives milk and liquid milk products for a milk processing plant. The
unit measures and pumps the product for buffering or further treatment
Mixing
Tetra performs in-line mixing for a wide range of powders and liquids for dairy applications such
as reconstituted and recombined milk, yoghurt milk, flavored milk, evaporated milk, recombined
concentrated milk, ice cream mix, chocolate slurries, and dairy cheese
Heating & Cooling
Heating and cooling are basic processes within dairy processing and take place in plate or tubular
heat exchangers. Tetra Pak heat exchangers have high thermal efficiency for low energy
consumption
Standardization
Automatic direct in-line standardization of milk and cream. Accurate control of fat, fat/solids and
non-fat ratio gives better utilization and control of the production parameters
Pasteurization
Along with correct cooling, pasteurization is one of the most important processes in the
treatment ofmilk. If carried out correctly, these processes will supply milk with longer shelf life.
Temperature and pasteurization time is very important factors which must be specified precisely
in relation to the quality of the milk and its shelf life requirements etc. The pasteurization
temperature for homogenized, HTST pasteurized, regular-grade milk is usually 72-75 °C for 1520 seconds.
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20. Milk Collection System of Nestle, Olper’s & Haleeb
Milk Collection system is basically involves 5 steps. Each step has an important part to play in
the processing of the milk. Milk is a perishable product so its collection and processing is very
important to increase its life and make its safe and healthy.
Step 1
A small farmer in rural are district milks his buffalo twice a day and takes about4 liters to one of
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 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 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
The milk is processed and packed into the familiar 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.
Customer Relation Management:
Customer relation management is the key to success to any organization. Many organizations fail
due to the bad practices of the CRM. CRM plays the role of the organization development. If the
customer is satisfied with the services of the company the Customer will be willing to purchase
more often the product you are offering and the services.
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21. Nestle:
Nestle have developed deep relations with the framer. Due to which there product market share
is very High as compared to the other competitor in the milk industry.
Transaction Processing System:
In this segment Nestle Process the data resulting from the business transitions, updates the
operational database and produces Business documents.
Process Control System:
Nestles uses PCS in the food Department. They use electronic sensors linked to the computers to
continuous monitor food material processing and made instant adjustments.
Enterprise Collaboration Systems:
In this segment Nestle considering team work & workgroup collaboration within and outside the
boundaries of the Organization.Like e-mail, chat, video conferencing group software.
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22. Olper’s:
Olper’s believe in the Customer Relation Management more than any other Organization in the
milk industry. Before they started the business of Milk, they started to build the relations with the
farmers to provide the quality milk and services to the Engro Foods. Olper’s is the brand of
Engro. Engro CRM is effective n efficient as compares to the competitors in the market.
Haleeb Foods:
Haleeb is the one of the oldest Milk producers in the Pakistan. Being the one of the oldest and
longest it has deep relation with the customers but in term of facilitating the customers they have
certain polices. Firstly they have their own farms so there relations with the Farmers are not as
good as other companies believe in the Relations. Haleeb does not have any defined policy
regarding the Customer Relation Management.
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23. Product Visibility:
Nestle:
Nestle have the highest Product visibility as compared to the other companies. That is because of
its distribution network and decentralizing of the warehouse. Although it affects in the increase
of the cost of Warehouse but the product is available in all the major area of the Country. Mostly
Urban areas are covered by the Nestle.
The Demand for Nestle is high in the urban area becauseit’s a Brand of Multi-National company.
People living in the urban area are more aware of the technology and benefits and use of the
Tetra Packed milk.
Olper’s:
Olper’s Milk is the brand of the Engro Foods. Engro is the one of the leading companies in the
Pakistan. Olper’s milk has the Second highest market share after the Nestle Milk pack. It is the
result of the smart allocation of the warehouses In the Pakistan. Olper’s have covered all the
major regions of the country.
Olper’s have the strength of making centralized warehouse facility in the Rawalpindi the cost
Increases as the result but it results in the better strength and visibility. Mostly northern areas use
tetra pack milk during winters because fresh milk is not the answer to the Northern Areas of the
Pakistan. So Rawalpindi warehouse not only provides the facility the northern areas but also to
the rest of the Pakistan.
Haleeb:
Haleeb is the one of the oldest companies in the Pakistan in the milk industry. Due to the bad
polices of the Haleeb in the past it was white washed from the market and seen nowhere in the
market except from the few areas. Haleeb bad polices result to the market share lose as well.
But as the new companies have arrived and use the business well, Haleeb is now also staring to
improve its product visibility due to the good polices and making of the proper system. Earlier it
was known to be the Saith Company. But now it has been changed and the management has
realized how to make profit and have a solid market share. Currently Haleeb has the strong hold
in the rural areas as compared to the others.
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24. Cost Comparison:
Nestle:
Nestle being the biggest company operating in the Pakistan in the Milk Industry do also have the
cost advantage. In Milk industry Milk is not the only product produced. There are also many by
products produces from that milk and during the processing of the milk. Cost is also affected by
the by products produced by the Company. Most importantly Nestle have decentralized
Warehouse system so the cost of warehouse and transportation increases. The best advantage that
Nestle gets is that there customers are quite satisfied and permanent. And generally they achieve
the economies of the scale In production and reduces the cost of the processing and milk
production.
Olper’s:
Olper’s have the centralized system and distributors. Distributors have to collect the Milk from
the warehouses and distribute the milk. For this Olper’s have established the simple excel sheet
as compared to the nestle who have the proper system installed in there handling & facilities site.
Today the 21st century is all about the use of the resources to the maximum level. Olper’s
centralized system has the cost but it results in the but product. Olper’s milk by product is high in
the market. Many firms buy those buy product from them. And the customers are mostly
satisfied with the services of the Company.
Haleeb:
Haleeb previously was conscious about the milk cost and don’t realize the effect of the by
products produced from the Milk and thus they failed to have the impact in the market. But know
they have realized the importance of it and working on it. Now they are paying good amount for
the Milk and producing by products as well and reducing the cost factor.
Haleeb have a major impact in cost due to the personal farms as well. They have their own farms
as well. It is the biggest and best advantage in regards to the cost and other economic and social
factors faced by the other companies.
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25. Comparison of Nestle, Olper’s & Haleeb:
Parameter
Olper’s
Nestle
Haleeb
Logistics
Low
high
High
Warehouses
High
Low
Low
Dual Channel. Direct &
Indirect
High
Divides into three
Geographical Area
High
Biggest Distribution
Network
Low
High
High
Low
By Products
Low as effect of own
farms
Same
Distribution Network
Customer Relation
Management
Product Visibility
Milk Collection
Same
By Products affects the
Cost
Same
Milk Processing
Same
Same
Same
Inventory
Management
FIFO
FIFO
FIFO
Cost Comparison
Recommendations:
Following are the recommendations:
Maximum utilization of the Resources.
Technological factors.
By Products also add value to Supply Chain surplus.
Suppliers should be Reliable and should provide quality product.
Flexibility should be there.
Market Worth should be strong in terms of Farms or Milk providers.
Transportation cost should be nominal.
Quality should be the first Priority.
Packaging must be according to the standards & reliable.
Proper veterinary doctors should be hired for the better productivity.
Proper Examination of the system according to the international standards.
Milk processing and collection should be according to the health and safety standards
(OSHA).
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26. References:
Following references were used in the developing of this document:
1. engro.foods.com
2. papercomp.com
3. kninn.blogspot.com/2012/02/nestle-in-pakistan
4. slideshare.com
5. nestle.org.com
6. nestle.pk
7. exportpakistan.blogspot.com
8. studymore.com/essays/nestle
9.
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