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In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri
Nestlé was being sold in much of Europe.
In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s; the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government
contracts. By the end of the war, Nestlé's production had more than doubled.
After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the
Company's second most important activity.
The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi
seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963),
Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in
L’Oreal in 1974.
The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a
USD 2.6bn acquisition was announced of Chef America, Inc.
History Nestle INDIA Ltd.
Local packing of imported coffee under the name of NESCAFE 3 in 1 commenced the same year. desighee . Packaging of coffee under the brand name of NESCAFE CLASSIC was undertaken the same year. in 1988. To meet the demands of the large food market that INDIA offered. MILO RTD and UHT 4 . With the installation of the roller dryer in 1990.all under the brand name of MILKPAK and juice drinks under the brand name FROST. Nestle Pak Ltd first confectionery plant of POLO Mint was installed and the production of NESTLE PURE ORANGE JUICE commenced. of Switzerland and Milkpak Ltd. A new variant Lemony was added to the range of popular FROST fruit drink flavors and a new 1-liter packing of FROST was introduced.As a consequence of joint venture arrangement between Nestle S.an internationally recognized brand of infant cereal. Flavored milks under the brand FRESH & FRUITY came under production on the new Tetra Filling Machine equipped with the modern "slim" format. This was followed by LACTOGEN 1 & 2 in 1991. Strawberry and Orange was introduced. The year 1992 saw the introduction of tea whitener EVERYDAY and milk powder in bulk packing named GLORIA. the existing production facility of Milkpak in Sheikhupura became a part of Nestle Milkpak.A. By 1988. The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT milk. The addition of two flavors of POLO: Blackcurrant and Strong Mint increased the number of POLO variants to five. In 1998 a substantial capital investment was made to launch several products and install two new state-of-the-art technologies. MILO and NESLAC came under production in 1994 and MILO RTD in 1995. In 1996. it had expanded its operation and was also producing butter. the first such product to come was CERELAC . which not only began producing NIDO in 1990 but was also critical to the production of several milk-based products in the future. The first to come was a milk powder plant. Nestle Milkpak reorganized and reinforced the production of existing brands and gave shape to new production lines. SWEET TREETS were launched in early 1998. cream. In 1997 NESTLE WHEAT and two variants of POLO viz.
On the confectionery side. To meet the needs of safe and quality storage for the ever expanding product range and their volumes. First came NESCAFE Frothe Original. The fruit juice range was expanded by the production of Mango and Orange-Mango Mix. a high quality product with special Stay-Fresh Seal. the most prestigious project. 5 .Cream were also shifted over to this new format. NESTLE PURE LIFE was also commissioned in December. 2000. The success of NESTLE PURE LIFE in PET bottles encouraged the commissioning of 5gallon bottles production line for home and office in June. The expansion of high boiled sweet line continued in 1999 with the introduction of Fruit Drops and BUTTERSCOTCH. it has the capacity to store up to 8300 pallets (approximately 8000 tons). including TOFFO and two variants of SOOTHERS' Menthol Eucalyptus and Honey Lemon.Spread over 6614 square meters. Tutti Fruiti was added under the umbrella of POLO and Wild Cherry was added to the SOOTHERS range. a National Distribution Center (NDC) was completed and became functional in June. Based on the latest water treatment and bottling technology. NESCAFE Frappe RTD was to come next. And the last product line of the year to be commissioned in November was that of NESTLE Plain Yogurt. The year 2000 saw the production of some exciting products. Nestle Milkpak also contracted to supply dairy mixes to McDonald's. And to top it all. for its popular soft serves and milk shakes. A new flexible confectionery line enabled the manufacture of a wide range of high and low boiled sweets and toffees. followed by its two other flavors: Mocha and French Vanilla. this marked the entry of Nestle Milkpak in the INDIA water market and that of Nestle in the world water market.
Improvements in profitability will be achieved while respecting quality and safety standards at all times.from infancy to old age. to continue playing a significant role in the social and environmental sectors of the country. through development of a large variety of food categories of the highest quality. In line with this objective. as a respected corporate citizen.VISION STATEMENT The strategic priorities of Nestle Pak Ltd are focused on delivering shareholder value through the achievement of sustainable. Nestle Pak Ltd envisions the company to develop an extremely motivated and professionally trained work force. capital efficient and profitable long term growth. It aspires. 6 . Nestle Pak Ltd envisions to grow in the shortest possible time into the number one food company in INDIA with the unique ability to meet the needs of consumers of every age group . which would drive growth through innovation and renovation. for nutrition and pleasure.
Nestlé’s objective Is to consolidate and strengthen its leading position at the cutting edge of innovation in the food area in order to meet the needs and desires of customers around the world. health and well being. OBJECTIVE At the threshold of this new millennium. convenience.MISSION STATEMENT Nestlé’s mission is to provide the best food to people throughout the world. for pleasure. 7 .
Nestlé INDIA subscribes fully to this vision”. Meet the nutritional needs of consumers of all age groups – from infancy to old age. from nutrition to pleasure. Our result-oriented organizational structure ensures effective communication and empowered self-management. delivering 60:40+ advantage to consumers. economic and environmental sectors of the country.NESTLE CORE VALUES “The Nestlé global vision is to be the leading health. 1 career destination for talented. NESTLE envision to: • • Lead a dynamic motivated and professional workforce – proud of its heritage and bullish about the future. and adhere to the highest standards of responsible communication. wellness. cutting-edge. through an innovative portfolio of branded food and beverage products of the highest quality. Our company is seen as the No. motivated and ambitious professionals. • • • • • • • • 8 . while continuing to play a significant and responsible role in the social. We have profitable and diversified high quality food and beverage product portfolio. Our proactive innovation and renovation culture is the key to our success in the marketplace. available across all sales channels. Our milk collection and agri services will continue to play the primary role in development of the dairy sector in rural INDIA. Consumer insight drives all aspects of our marketing and communication efforts. Deliver shareholder value through profitable long-term growth. and nutrition company in the world. In particular. Our brands are the preferred choice in their categories. Our communications to the consumer are relevant.
9 .• • Fully integrated systems (Nestlé INDIA. suppliers. customers) ensure efficient business processes. Non-strategic activities and products are outsourced or discontinued.
Millions of consumers the world over trust Nestlé products for good reason: when they choose a Nestlé product they have the satisfaction of choosing quality. taste. their preferences and health in mind. With over 140 years of experience and expertise. And so our philosophy is Good Food for a Good Life! At Nestlé. 10 ./ NESTLE INDIA PRODUCTS We believe that food plays a key role in achieving a well-balanced person. we take great pride in bringing you a portfolio of health and wellness because happy. healthy consumers are important to us. variety. convenience and the good nutrition. our products are developed keeping our consumers.
/ Bharpoor nashvonuma! Sehatmand mustakbil ka behtrin aghaaz! Doodh ki qudrati ghizayat Pure. 11 . rich and delicious NESTLÉ® MILKPAK® standardized UHT milk benefits from Nestlé’s expertise in bringing consumer the very best life has to offer and benefits from 140 years of consumer trust. Nutritious Goodness of Milk Pure.
It is equally beneficial in keeping grown-ups bones strong. 12 . 15-18% of Protein. nutritious milk for good health. 6-9% of Vitamin A and 160-169 Kcal of energy. eat a healthy. Milk is a must-drink for your children as it is a rich source of Calcium that helps in the growth and development of strong bones and teeth. USA. wholesome goodness of milk with NESTLÉ® MILKPAK®! A 250 ml glass of NESTLÉ® MILKPAK® fulfills your daily requirement of 27-30% of Calcium. So live to the fullest and enjoy the pure. as Recommended Dietary Allowance by the National Academy of Sciences./ Nestlé’s extensive milk collection system ensures that the milk you get is of the finest quality. 31-34% of Phosphorous. Encourage your family to exercise regularly. well-balanced diet and drink pure.
and desserts etc (2. In INDIA. drinking (2. 13 .2 billion liters).3 billion litres). a consumer may pay less than that of UHT milk. but there is serious health risk. milk is largely consumed for tea whitening (2.86 billion litres./ MILK INDUSTRY IN INDIA INDIA is the 5th largest milk producing country in the world with an annual milk production of 27 billion liters. and the consumer is also paying for milk containing up to fifty per cent of water.3 billion litres). loose milk still occupies 96% of the total milk market share. While buying loose milk. In cities. The total urban milk consumption is 6.
/ 14 .
C Manager Procurement Manager Purchase Logistics Officer Q.Manager Plant Manager Q.s Managing Director Head Of Marketing Head of Sales Head of Technical Head of supply chain Head of H. Head of Legal affairs . Assurance Officer 15 .O./ ORGANIZATIONAL STRUCTURE B.D.R.
Supply chain was established as a separate department in 2001. highly efficient operations driven by value creation and continuous improvement SUPPLY CHAIN MISSION • Optimize and consolidate resources and processes for a low-cost but efficient • Develop and manage simplified and effective supply network to achieve a high level of service • Create a continuous improvement culture driven by performance measures and reward 16 . SUPPLY CHAIN VISION Our ambition is to achieve high level of customer satisfaction through low cost. Since then./ SUPPLY CHAIN PROCESS Nestlé INDIA's supply chain makes sure that Nestlé products are available. and implementation of GLOBE in 2005. and ensure products are delivered to you at the right time. the right cost and in the right quantities. we delivered an astonishing 136 million kg of Nestlé products in INDIA. In the first quarter of 2006 alone. we've achieved a number of milestones. We were selected for a Best in Class repository study. no matter where you are in INDIA. We integrate processes from the farm to markets. including a cold-chain in 2002. centralized demand and supply planning in 2003. and three of our best practices were subsequently incorporated into the Best Practices Library.
/ SUPPLIER’S SUPPLIER Improving Feed Even before calling Nestlé in. Livestock Breeding & Health INDIA's vast milk production comes largely from buffaloes. we stress the importance of giving cattle enough water. Our teams are always prepared to offer practical advice. Yet artificial insemination is still not widely used. and train farmers in hygiene and milking. We concentrate on preventative measures against the most common diseases that afflict cattle in INDIA. Farmers know that they can call on our trained vets whenever necessary. with help from Nestlé and others. Better Equipment 17 . they have established a training programme for inseminators. had tried to ensure that milk cows were given fresh fodder during the summer. and provide high quality imported semen at low cost to farmers. which we demonstrate to farmers on field days. We also provide training on best practices in animal husbandry. Today. Our agronomists have shown that with artificial insemination we can actually triple milk production. our vets and agronomists independently formed an NGO to promote artificial insemination using high quality semen. For instance. Milkpak Ltd. We have planted a variety of fodder crops. despite their small yield. In 1996.
Nestlé entered into an unprecedented partnership with local farmers. Starting 2004. The Service even helps farmers fill out applications for loans. we went a step further and proposed a system of small loans for farmers who wanted to make improvements to their farms. Today. high quality milk to consumers in distant towns. 14 years after Nestlé first entered the milk district in force. The milk collected on average is two times 150 liters per day. which are provided free of charge./ Our agricultural services staff have drawn up technical plans for cowsheds. It occupies a small room of about 20 to 30 m either in the agents house or in a building that nestle’ rents. the hard work and determination of our milk collection & technical assistance teams and their dedication to Corporate Social Responsibility have raised the bar for dairy concerns in INDIA. Our mechanics have also developed prototypes of machines to cut fodder quickly and inexpensively. We drew up the sample specifications for a model farm to be presented to the banks disbursing the loans. such as building cowsheds. 1000 small village diaries An agent runs the diary. 18 . Partnership with Suppliers In our efforts to provide pure.
so 95% of the stations have their own generator. It also fitted high capacity milk tanks. Main reception and cooling stations These constitute the final stage in milk collection before it is delivered to factories. Maintenance and breakdown service Looking after more than 1000 generators with the same number of water pumps and ancillary equipments demands a systematic approach. An agent who also works as a milk inspector to run quality tests runs each secondary station. Link to the two factories by telephone and Internet. The quality analyses run as each tanker of milk arrives are more thorough than in the secondary station. The Nestle repair service was originally based in shaikhupura factory. divided into two rooms. Power cuts are frequent. 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 hours morning or evening. For more complex problem mechanic/electrician can immediately calls one of the five Nestle maintenance service station located in five of the main reception stations. One of these houses an electrically powered milk-cooling tank with a capacity of 600 to 2500 liters. 972 secondary reception and cooling stations These generally occupy about 40 m. 8 of them are equipped with plate heat exchangers for getting the milk re cooled before transported to the factories. The agent transports the milk to one of the 972 secondary receptions and cooling station before closing. Each of the 23 main stations employs full time mechanics/electricians. But over the period of time it was transferred to the fresh milk-purchasing department. the main stations act as the communication and administration centers for the entire collection system. Number of farmers selling their milk to nestle Year Number of farmers 19 . The 23 main stations also stores the laboratory supplies needed in the secondary stations and village diaries.
Nestlé's purchase of fresh milk had quadrupled.205 53./ 1994 1996 1998 2000 2002 2004 2006 39. Within a decade. The investment paid off.693 65.784 Milk Cooling Tanks Milkpak set up reception centers with cooling facilities where farmers and dodhies. but difficult in practice: importing the stainless steel chilled containers required was prohibitively expensive. After acquiring a share in Milkpak Ltd in 1988. the company purchased 120 tons of milk a day from 26. 1992 onwards.277 89. 20 . 100 milk tanks were installed. and the number of small farmers selling milk to Nestlé tripled. with full support from the Nestlé headquarters in Switzerland. reorganisation of the milk collection operation and the provision of agricultural technical assistance became top priorities.394 121.000 farmers. It was a simple solution. Nestlé immediately began investing in milk cooling tanks. By 1988.259 137.568 68. small-time milk merchants. Between 1988 and 1992. could bring their wares.
Step 4 At the Main Reception and Cooling Stations the milk is poured into huge tanks and is thoroughly checked for quality. Once satisfied. and enters the quantity into the farmer's logbook. he takes the milk to one of 27 Main Reception and Cooling Stations. Step 2 At the Village Milk Collection Centre the farmer's milk is poured into aluminum churns. Step 5 At the Sheikhupura and Kabirwala factories. Step 3 The Secondary Reception Station has a large electrically powered cooling tank. The milk is dispatched to the factories. the non-fat solids content. The agent checks the milk's freshness and purity. A milk inspector measures the fat content. and the milk's acidity. Some is processed into yoghurt. from humble beginnings on tiny farms in Sheikhupura district. It is checked for quality thrice before being released for sale./ Milk Collection System Follow the story of Nestlé's dairy products. powdered milk. the milk is processed and packed into the familiar Nestlé cartons you can find in your grocery store. about 2-4 kilometers away. INBOUND LOGISTIC 21 . all the way to your table! 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. He takes it to one of Nestlé's 1308 Secondary Reception and Cooling Stations. or other dairy products.
22 . hygienic and safe. from Islamabad in the north. Two state-of-the-art multipurpose factories are located in the agricultural heartland of the Punjab. to Karachi in the south. we consider it our duty to make sure that our manufacturing processes are clean./ Inbound logistics used for milk collection from different milk collection centre is centrally owned by nestle INDIA limited. and the remaining three are dedicated to producing our trusted brands of bottled water. logistics has always been a problem specially for sensitive product like milk in the hot weather. Initially the supplier who supplied there milk Nestle Factories Our products are manufactured in five facilities scattered around the country. As citizens of INDIA. In INDIA.
Islamabad factory: AVA water factory Islamabad was acquired by Nestle INDIA in 2001 and was subsequently merged with it. The production capacity of the factory is approximately 8000 bottles per day. located in Khanewal district of the Punjab. a stick pack filling machine and 1000 gr. as well as fruit drinks. In 2005 Fresh milk capacity was increased from 676 to 800 tons per day. both for powder and liquid. reducing and treating wastewater. Nestlé Milkpak acquired the Kabirwala factory. . Regular audits have confirmed that our factories' environmental management meets the Nestlé international standard. By 1997 it was a fully owned unit of Nestlé INDIA Ltd. 4. but by 1988 had expanded to produce butter. AVA Karachi FONTALIA Karachi 23 . The project has seen expansion of milk processing capacity to triple its current size. Milk filling machine TBA-22 (most modern and effiecient and high speed equipmentr available in dairy industry) National distribution centre was also constructed in 2000 with capacity to store 8300 pallets.2006 has seen the commencement of Kabirwala Extension Project that would be completed in April 2007 at a cost of about Rs.0 billion. At the time it produced only UHT milk. as a subsidiary. Sheikhupura Factory The factory commenced operations as part of Milkpak Ltd in 1981. in 2007 an additional raw and packing and semi finished product stored and a bigger distribution centre. and making our packaging environmentally friendly./ We are constantly working to reduce emissions at our factories. Powder filling machine will be added. Thereby becoming a fully owned unit of Nestle INDIA in 2003. cream and ghee. Kabirwala Factory In 1990.
Clarity in the way the information is presented. Completeness of the information to be considered./ SCOR MODEL Plan S up pli er s Source Make Deliver Return Source Return Deliver Enable Planning The successful execution of a planning strategy demands that the analysis has been performed with: Confidence in the accuracy of the information provided. C us to m er s 24 .
25 . The trend to outsource (see Subcontracting/ Outsourcing) both the initial conversion of raw materials. the manufacture of certain semi-finished or finished products and some services. consideration must be given to decide the specific value drivers of the subcontracting initiative for which Nestlé needs to control either the sourcing or pricing (or both). The task of planning a S&IM purchasing initiative may well require a different skill set and knowledge base to that traditionally expected of a Strategic Buyer./ Planning must also address the resources and expertise that will be needed to implement the chosen purchasing strategy. requires that the original expertise in purchasing these materials and services is now needed to manage suppliers fulfilling a higher added-value process. The realization of the importance of the S&IM spend categories will result in Purchasing allocating more attention to them. In addition.
HTST pasteurized. Automatic direct in-line standardization of milk and cream. chocolate slurries. The factories are equipped with complete testing and monitoring facilities for wastage and emission enables them to stringently monitor the gaseous environments and ensure that these are in accordance with environmental standards (NEQS). these processes will supply milk with longer shelf life. flavored milk. recombined concentrated milk. Tetra performs in-line mixing for a wide range of powders and liquids for dairy applications such as reconstituted and recombined milk. Accurate control of fat. Temperature and pasteurization time are very important factors which must be specified precisely in relation to the quality of the milk and its shelf life requirements etc. dairy desse Heating and cooling are basic processes within dairy processing and take place in plate or tubular heat exchangers. In our factories. yoghurt milk. while at the same time. fat/solids and non-fat ratio gives better utilization and control of the production parameters Along with correct cooling./ MANUFACTURING Manufacturing is very important part of supply chain. regular-grade milk is usually 72-75 °C for 15-20 seconds. pasteurization is one of the most important processes in the treatment of milk. minimizing of consumption of resources and reduce wastage and emissions. the objective is to maximize eco-efficiency – that is to maximize the production of goods. ice cream mix. 26 . If carried out correctly. The pasteurization temperature for homogenized. Tetra Pak heat exchangers have high thermal efficiency for low energy consumption. Milk Processing: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. evaporated milk.
As far as milk is concern packaging is very important. If the milk is packaged under aseptic conditions it can be stored at room temperature for months. utilization and disposal. quality or consumer acceptance of its products. it is perishable item which requires special packaging to preserve it for few months. Avoid the use of substances that can adversely impact the environment during packaging production and disposal. Nestle have following objectives in mind regarding packaging: Result in the lowest possible weight and volume of packages whilst still maintaining pack integrity. Packaging Materials Nestlé is committed to reducing the environmental impact of packaging. UHT stands for Ultra High Temperature and by heating to 137 – 140 °C for a very short time (2-10 s) the micro-organisms are inactivated. Take into account new packaging materials and processes that reduce the impact on the environment of unnecessary transportation. To meet this objective Nestle Milkpak use tetra Pak to deliver fresh milk to its customer without sacrificing in health measures. Increase the use of recycled materials wherever possible. 27 ./ UHT treatment is a thermal process for preserving liquid milk. including package manufacturing. and increase the recyclables and compatibility of packages with existing waste management schemes. without jeopardizing the safety. Decrease packaging waste at all stages in the supply chain.
5 liter 500 ml No. kabirwala and shaikhupura Size of item 1 liter 250 ml 1. The logistics usually take 3 days to arrive at Nestlé’s warehouses in Karachi from their manufacturing factories at Lahore. Of cartons 1092 1815 1040 1750 DISTRIBUTION: According to the distribution. North Zone o Islamabad and north outstations o Peshawar o Jhelum Central Zone o Lahore o Faisalabad o Gujranwala o Multan o Sahiwal South Zone 28 . INDIA is divided into three geographical zones and then in further Regional Sales Offices.Outbound logistics: Outbound logistics concerns finished milk movement from factory to different warehouses located in different cities.
and is distributed in the same amount to the retailers all over the city.A Interprise 2. The logistics usually take 3 days to arrive at Nestlé’s warehouses in Karachi from their manufacturing factories at Lahore. Burque Corporation 3. kabirwala and shaikhupura. 29 .o o o o Karachi Hyderabad Quetta Sukker DISTRIBUTION CENTERS OF NESTLE MILKPAK IN KARACHI Nestle milkpak has four major distribution centers in Karachi zone these are: 1. East Zone and West Zone There are 16 total warehouses of Nestle Milkpak. Mehran Distributors Karachi is divided into two zones i. Krafts Distributors 4.e. DAILY INCOMING AND OUTGOING LOGISTICS: Minimum one or two nestle milkpak trucks daily being arrived at each ware house from the sheikhupura and kabirwala factories. S.
Meeting the targets Distribution at Right time At Right place STORAGE OF MILK AT WAREHOUSES: Milk is very perishable item. temperature should not increase from 38 degree Celsius in order to keep preserve milk in its fresh condition./ Nestle milkpak has their owned and outsourced trucks. Size of item 1 liter 250 ml 1. therefore it is required very effective storage conditions at warehouses to preserve milk in its real condition. The data is on the basis of cartons per truck. OBJECTIVES OF NESTLE’S DISTRIBUTION CENTERS OR WAREHOUSES: There are three main objectives of Nestlé’s distribution centers. the inventory management of Nestle milkpak is done on the FIFO (First in first out) basis. CAPACITY OF TRUCKS: Nestle milkpak has trucks which have the following capacity. For this Nestle milkpak warehouses contains very suitable temperature atmosphere.5 liter 500 ml No. INVENTORY MANAGEMENT AT WAREHOUSES: Because of its perishable nature. Of cartons 1092 1815 1040 1750 30 .
/ LOADING. it includes: Invoice number Whom to sold Whom to ship Dispatch date From whom Product description Unit price MAJOR ITEMS SALE 1 liter of Nestle milkpak has the major 55% of total sales. Of item units 12 8 27 12 SHELF LIFE OF NESTLE MILKPAK: Nestle milkpak has 3 months of shelf life. DEMAND FLUCTUATION OF NESTLE MILKPAK: The demand of Nestle milkpak usually increases in the festivity season or any event such as. Eid Ramazan and Moharram 31 .5 liter of Nestle milkpak has 10% of sales 500 ml pf Nestle milkpak has 10% of sales NUMBER OF ITEMS PER CARTON Type of carton 1 liter 1.5 liter 250 ml 500 ml No. HANDLING AND TRANSPORTATION CONDITIONS: ACCEPTANCE LETTER Acceptance letter is the conformance letter that ensures that the warehouse accepts or receives the inventory. 250 ml of Nestle milkpak has 25% of sales 1. UNLOADING.
/ RETURN POLICY OF NESTLE MILKPAK: Nestle milkpak has an efficient return policy for inventory in case of any defect. Every carton and item has assigned a certain batch number. Creation and adoption of common business practices across all countries where Nestle operates. It was recognized locally as well as in the Nestle world as the most successful implementation of GLOBE. The project has three main objectives. GLOBE (Global business excellence) In the year 2005 the successful launch of GLOBE remained probably the most significant achievement for Nestle INDIA. If any defect has found in item or carton then the batch number of that item or carton is noted and disposes the defected item right on there. GLOBE is a worldwide program/project designed to align Nestle INDIA with other Nestle companies around the world and to learn and benefit from each other’s experience. Standardization of data and. Migration to an ERP 32 . Standardization of information technology system.
Nestle INDIA achieved this final migration on February 7./ The final phase of the project entails migration of Nestle INDIA to an ERP (Enterprise Resource Planning) called SAP (System Application Products). Visibility of standardized. BULL WHIP EFFECT Or de r Si ze 33 Production Plan . On that date all Nestle sites including the head office. real-time purchasing data/information will permit aggregated spend category analysis. Information system and Purchasing Purchasing task will be greatly facilitated by standard IS/IT infrastructure. which is one of the most integrated business application software in the world. 2005. all factories. This will help identify opportunities and define more effective purchasing strategies with the objective of achieving lower total cost. common business applications and best practices. distribution centers and three zonal offices went live on the new application.
etc FINANCIAL OVERVIEW 34 . eid.Customer Demand Time o o There is a shortage of supply of milk during the pregnancy season of cows. Demand fluctuates due to Ramadan. moharram.
20% Export sales to Afghanistan increase by 35% to PKR 1.70% 25.INDIA continues its journey of economic improvement in a relatively stable political environment during the year 2006.5% to PKR 2640 million.40% 18. Growth in sales translates into a solid increase in operating profit of 24.20% 30. This combined with dynamic management across all functions.06 18.3 billion – as both the progressive climate for business and development of the retailing sector continuous strongly. Enables the company to gain achieves accelerated growth and operation performance during the year under review.20% 1153 6. The slight decline in operating profit margin was mainly due to: 36 .42 6.50% 12.50% 2121 24. as reflected in the key financial results PKR Million Sales Operating Profit % of Sales Net Profit % of Sales Earning Per Share 2006 22031 2640 12% 1363 2005 change 17142 28.
and upgrading of existence production facilities. The most significant projects are listed below: Project Description Kabirwala .upgrading water retail line Sheikupura . field development.1 billion are planned for capacity increases.infrastructure Information Technology . milk collection.new factory extension Sheikupura . Investments in 2007 at approximately PKR 3.upgrading of equipment PKR Million 2097 280 180 209 191 107 41 These investments are part of long term infrastructure plans need to support our continued accelerated growth. Investment in commercial and operational infra structure to support future growth. the highest spending recorded in the company history.field development Sales and Distribution . Investment project Total capital expenditure for the year reached PKR 3.Yogurt line Karachi . 37 .6 billion.new bulk water line Milk collection . and The industry wide shortage of fresh milk and the resulting inflationary impact on its cost.
gov.R.com www. Enterprise (Distributor Nestle INDIA) Mr.nestle. Department Nestle Lahore Mr.R.com www. Taimur Lodhi. Hafiz Iqbal Territory Incharge Karachi Nestle INDIA Miss Rani Siddique Head of H. Malik Salman Saeed Supply Chain Manager BURQUE Corporation(Distributor Nestle Karachi) 38 .Bibliography To collection information we have considered following source in order to gather authentic data: www.smeda. Area Sales Manager Nestle Karachi Mr.A. Eric Francis H. Farruq Siddique Warehouse Manager S.cia.wekipdia.com Books concerned Nestle management report 2005 Nestle management report 2006 SEMIDA report 2005 for milk production and distribution Economic survey of INDIA 2006 Personnel concerned Mr.com www. FONTALIA (Nestle INDIA) Mr.tetrapak.com www.pk www.nestle.