Table of Contents:

Sections and Contents Page Number

Chapters

Preface

Executive Summary

List of Abbreviations

Company Profile – Global Consumer Products Private

Chapter 01 Limited

Company Profile

Product Portfolio of – Global Consumer Products Private

Limited

Chapter 02 Overview of Supply Chain Department

Brief Overview of term Supply Chain

Departmental Organogram – Global Consumer Products

Private Limited Supply Chain

How Global Consumer Products Private Limited Supply

Chain Works

Demand and Supply Planning

Procurement

Raw materials

Packaging materials

S&IM

Inbound Logistics

Customer Services and Distribution

Chapter 03 Duties and Responsibilities

5
 Vendor Master Database Management

Categorization of Current vendors

Communicating Global Consumer Products Private Limited

Supplier Code to Suppliers

Ensure Global Consumer Products Private Limited Supplier

Code Compliance by Suppliers

Chapter 04 SWOT on Supply Chain

Strengths

Weakness

Opportunities

Threats

Chapter 05 Areas of Improvement

Chapter 06 Learning

Chapter 07 Recommendations

Reference
List of Abbreviations:

- CDP = Consensus Demand Plan

- SKU = Stock Keeping Unit

- D&SP = Demand and Supply Planning

- MPS = Master Production Schedule

- MRP = Material Requirement Planning

- L/C = Letter of Credit

- PO = Purchase Order

- S&IM = Supply and Indirect Material

- PFI = Pro-forma Invoice

- CS&D = Customer Services and Distribution

- PR = Purchase Requisition

- RM = Raw Materials

- PM = Packaging Materials

- HS Code = Harmonized Coding System

 Chapter 01
Company Profile
1.1 Company Profile:

COMPANY PROFILE:
GLOBAL CONSUMER PRODUCTS PVT. LTD.

Global Consumer Products Private Limited (“Global CP”) is set up as a FMCG platform to create brands
that captures favourable macroeconomic factor’s manifested through higher urban consumption.
Global CP, promoted by A Mahendran (former Managing Director of Godrej Consumer Products), was
launched a year ago with an investment of ₹315 crore from Goldman Sachs and Mitsui Global. Global CP
was born out of an idea to be one-of-a-kind start-up where entrepreneurial ambitions of the various
stakeholders could be nurtured and given a platform to shine. It was with this deep rooted desire that in
early 2014, A. Mahendran our CMD & Co-Founder roped in two visionary PE funds (Goldman Sachs &
Mitsui Ventures) to partner with him on making dream a reality. They are not seen as GS & MV financial
investors but as mentors to the management team and catalysts for growth using their vast networks to
bring in the right partnership opportunities for Global CP.

They see themselves as an eclectic mix of the three E’s - Experience, Exuberance & Entrepreneurialism.
Throw in a dash of the right amount of capital and what they have is the perfect recipe for success. They
firmly believe in their company moniker of being a ‘Synthetic start-up’ given by their Chairman which
brings together the entrepreneurial zeal of their stakeholders (they believe that every employee is a
stakeholder in their company) along with the global strategic, financial & technological expertise which
are brought in by their investors.

VISION:
To Ignite Youth Consumer Experience with Innovative, Mid-Premium Products with Strong Brand Equity
across Emerging Markets through Organic and Inorganic Build-Up, leading to rapid Shareholder Value
Creation.

MISSION
 Building Rapid Optimal Infrastructure focussing on chosen geography
 Providing Adequate Capitalisation
  Attracting Passionate High Talented Professional Entrepreneurs with in-depth
Category Experience to create a Performance-based Culture.
 Practising Chanakya Strategies revolving around Extraordinary Creativity and Innovative
Technology through Intensive Research in Product Development and Consumer Insight.

FUNCTION:
Global CP consists of 150 employees working in the departments of Human Resource, Marketing,
Finance, Production, Administration and Logistics. It launches innovative and high quality products to
start with in high-growth categories such as Confectioneries, Beverages, Household Insecticides and
Ayurvedic Personal Care. Chocolates, however, has just been the beginning for GCP, which is backed by
Goldman Sachs and Mitsui Global. The further plan is to get into beverages, personal care and many other
household products. It is ‘asset light’ and outsources its manufacturing requirements from various vendors.
The brand has pitted against some formidable names in the Rs 7,000 chocolate market in India, which is
dominated by Mondelez’s Cadbury, KitKat and others. Mondelez has around 70 per cent share, while
Global Consumer Products Private Limited and the Ferrero Group have a share of 18 per cent and 8 per cent
respectively. Initially, the company focused on southern markets only but now after two years it aims to be
a pan-India player, besides presence in West Asia, ASEAN and South Asian markets.

Distribution:
Global CP will have its own distribution network. It will begin with 80 distributors to reach around 75,000
retail outlets in the South, according to Anuradha Narasimhan, Executive Vice- President - Sales and
Marketing.

The chocolate market is pegged at ₹7,000 crore, and growing at 25 per cent annually.

However, the penetration level is only at 10 per cent, which provides a big opportunity for the company.

GCP leverages all three channels – traditional retailers including mom & pop shops, modern retail and e-
commerce. Besides, the company is on a par over the years with the market leaders when it comes to
points of sale. For chocolates, the market leader has around 200,000 to 300,000 point of sales; and for fruit
drinks and beverages, the number is around 400,000. Initially the company had 75,000 retailers and
doubled the number in six months. LuvIt Chocolates is distributed and retailed across southern states
through a network of 80 distributors. The products is available across supermarkets, large and small
grocers, general stores, bakeries and chemists.
 Global’s Directors:


A. MAHENDRAN
CHAIRMAN AND MANAGING DIRECTOR

GLOBAL CONSUMER PRODUCTS PRIVATE LIMITED

Global CP is promoted by Mr. A Mahendran who has through his career combined entrepreneurial
mindset with professional corporate governance. Mr. Mahendran is a serial entrepreneur whose first
venture was the Good Knight household insecticide brand which was acquired by Godrej. Mr. Mahendran
steered the merger & acquisition cell at Godrej Consumer as Managing Director between July 2010 and June 2013,
wrapping up eight buys from 2010 to 2012. The acquisitions included Nigerian company Tura in March 2010,
Indonesian major Megasari Makmur in April that year, Sara Lee’s 51 per cent stake in the Indian joint venture
Godrej Sara Lee, Argencos in early June 2010, and brands Swastik and Genteel from Mumbai-based Priya Kothari
group in December 2010. In June 2011, Godrej acquired the Darling Group in Africa. And, in January 2012, the
firm acquired Chilean company Cosmetica National.
Prior to his association with the Godrej Group, Mahendran was a partner with M/s R G N Price & Co before joining
Transelektra Domestic Products Limited, as an Executive Director in 1987. On Transelektra’s takeover by the
Godrej Group in 1994, he was nominated as Managing Director of the Company by the Godrej Group and continued
in this capacity after Sara Lee Corp. acquired a 51% stake in 1995.
The unique culture is the reason Godrej has been, by far, the most rewarding FMCG stock while he was at
the helm with a net worth multiplier of 83. The motive to create a start-up stems from Mr. Mahendran‘s
philosophy of spawning a generation of entrepreneurs.

B.KAMAL AGARWAL
EXECUTIVE VICE PRESIDENT – FINANCE, HR, IT & LEGAL

GLOBAL CONSUMER PRODUCTS PRIVATE LIMITED

Kamal Agarwal joined Global CP as EVP – Finance, HR and IT. His prior assignment was as CFO, Indian
Subcontinent, Ferrero Group. His earlier stints include ITC, Cadbury’s and TATA Teleservices Limited. He was a
part of the CFO 100 Honor list 2013 in the category ‘Winning Edge in Finance in start-up’.
Mr. Agarwal joined Global Consumer Products Pvt. Ltd. to lead various backbone functions of GCPPL having
proven record of establishing cross-functional partnership to deliver stellar results. Mr. Agarwal is an experienced
executive with extensive hands-on proficiency in management, business leadership and working with Board of
Directors & Shareholders to deliver on successful enterprise value creation.
Prior to this, Mr. Agarwal was working with Ferrero Group in India as CFO, a US$ 10 billion European
confectionery giant. He was one of the primary team member and was instrumental in setting up the entire business
model of Ferrero in India, in addition to his role as Director on the Board and serving as Managing Director for
Ferrero Lanka. Mr. Agarwal has worked across various profiles in companies such as Cadbury India, ITC Limited
and TATA Teleservices Limited.
Educated as a Chartered Accountant, Mr. Agarwal was part of “CFO 100 - 2013 Honor List” under category
‘Winning Edge in Finance in a startup’. He is based out of Bangalore and spends his time reading books on
business, law, leadership and watching business channels.

ASHISH BHOBE
Global‘s senior management team brings with them vast experience from the FMCG sector with over 150
years in the Food business.
They believe that a heady mix of enthusiasm and expertise will drive success in the marketplace – they
refer to Global CP as a ‘Synthetic start-up’ which combines the hunger of a start-up with the expertise and
ecosystems of established organizations.

INVESTORS:
Global CP's vision is financially backed by Goldman Sachs and Mitsui & Co. They see their role not just
as financial investors but mentors for the management team and facilitators in. bringing the right
partnership opportunities for Global CP. GCP received Rs 315 crore in funding from Goldman Sachs and
Mitsui last year and is targeting a revenue of around Rs 1,250 crore over the next five years. The three
shareholders – Mahendran Holdings, Goldman Sachs and Mitsui Global – hold equal stakes in the
company

POLICIES:
Global CP - Anti Bribery and Corruption
Global CP - Prevention of Sexual Harassment at the Workplace: Policy

FUTURE ASPECTS:
The company is expected to achieve revenue of ₹1,250 crore in five years, according to Mahendran,
Chairman and Managing Director, Global CP.

For the next couple of years, the focus would be on food and beverage segments only.

The company will soon launch the products in other parts of India.

Big opportunity
Products will be available across supermarkets, large and small grocery shops, general stores, bakeries and
chemists across southern India, which account for nearly 30 per cent of the national chocolate market.

PRODUCTS:

The product LuvIt is an umbrella brand under which there is a sub-brand. The company aims to capture
white spaces in the confectionery and value added beverages categories, where innovation and brand
creation has been lacking.

Their brand names vary across segments. Cherio is an umbrella brand for beverages and is launched since
a few months. In a phased manner, the company is planning to launch packaged drinking water, health-
based drinks and dairy-based flavoured milks.

By leveraging a combination of disruptive product innovation, large scale brand building, focused
distribution infrastructure and a highly experience top team, the company belives its right to ‘win is high’.

A.PRODUCT- LuvIT CHOCOLATES:

Launched across nine variants, LuvIt is available at price points ranging from Rs 5 to Rs 45. The Rs 7,000
crore Indian chocolate market has been growing at a CAGR of over 20 per cent and with new players
coming in, this number is expected to grow. The southern states account for almost 30 per cent of the
national chocolate market and over 80 per cent of the southern market is concentrated in urban centers.
Actor Siddharth who is an actor of South India has been signed on as the brand ambassador.
Nine variants:
1. Chocolate with rice crispies

Chocolate with roasted almonds

2. Dairy rich milk chocolate

Chocolate with fruits & nuts

3. Caramelicious classic

Caramelicious white

Caramelicious roasted almonds with white nougat

4. Chocwich-white

5. Crazypops

Chocopops

6.Goodies hamper. Goodies gift pack, goodies premium hamper

CONFECTIONERIES:

7.Crazyjelly: guava,strawberry, kaccha aam

8.Chocorich éclairs, coffee éclairs

9. Crazymackers(lollipop): mango, watermelon, blue lemonade, chocolate,chocolate vanilla,chocolate

straeberry,

B. PRODUCT-DND( mosquito repellent):

Prevention is the key towards a safe, comfortable and healthy lifestyle. DND is an innovative range of
products introduced that makes healthy living not just a possibility but also affordable. This range of
products are made believing in the amalgamation of technology and ideas to develop effective products
that are well designed, easy-to-use and affordable.

1. Aeromax coil diffuser:

The coil used has got very less percentage of chemical. It is 98.2% natural coil. It works with Turblo fan
technology which spread the coil’s effect to far corners of the house providing prevention from
mosquitoes.

2. Turblo liquid vaporizer:

This revolutionary vaporizer works with a unique turblo fan technology with dual power mode spreading
vapour effectively to the corners of the house with 360degree preventive shield.

3. Manosol flying insect killer:

Its the quickest knockdown formula which helps to kill insects with just a spray.

4. Spira coils:

For the first time ever, there is a coil with natural extracts thats healthy, and not hazardous to breath and
powerful action. Its green and eco-friendly with 99.5% natural ingredients.

5.DND jumbo liquid refill:

This refill fits into all machines and provides upto 12 hours of prevention from mosquitoes.

C.PRODUCT- CHERIO “Always Much More!!”

The company has acquired ‘Cherio’ through which it plans to make its footprint in beverages. Incidentally,
Mahendran has brought the Cherio brand from GoodLife Industries, a company that was promoted by him
way back in 1996. It doesn't just contain fruit. It contains the best parts of them. It is filled with pulp and its nectar.
And there's so much more goodness in every sip.

VARIANTS:

1.Can:
It comes with flavours such as pulp-Orange, mango, guava, pineapple, mosambi

2.Tetra packs:

Vailable in flavours such as green fusion, orange tangle, pomegranate pearls,very berry, guava groove,
fruit tangle, mixed fruit gang.

3. Bottle:

Available in two flavours which are mango lush and guava burst.

D. PRODUCT- VED RASAA:

The company has identified this opportunity and created a product range under the brand name ‘ved
rasaa‘, The combination of traditional knowledge and strong R & D team, consisting of cosmetologist,
dermatologist, along with expert ayurvedic, herbal and natural care practitioners of long years of
experience, in developing our product ranges. So they created their brand name as ‘ved rasaa’. That
means mixture of knowledge or wisdom that is divine. The product is called 100% Vedic that is
divine. Currently the company is engaged in developing facial care, skin care, hair care, and oral care
products.

Variants:

1.Ved rasaa ubtan:

Ubtan will provide the benefits of Facial, Clean up, Scrub & Bleech that too 100% NATURALLY

2.Ved rasaa Rogana:

 Kesa Rogana is a unique ayurvedic formulation to control the hair fall and induce the growth of the hair.
It's a combination of 18 herbs such as  Bringraj, Amla, Bramhi, Shikakai, Bouchi, Priyangu, Gulab patti,
Chhadilla, Kamal Kesar, Wala, Kapoorkachili, Jatamasi, Muleri, Henna, Nagermotha, Jasmine oil,
Lavender oil, and Virgin Coconut Oil.

3. Ved rasaa Kesa Marjana: Kesa Marjana is no ordinary herbal shampoo; it is a perfect blend and
balance of 18 natural herbs. It is prepared meticulously to be suitable for all age groups and can be used
regularly as it is 100% natural and does not contain any harmful chemicals
Products Portfolio of Global Consumer Products Private Limited:
Organization Chart For Chocolate
Company
 Chapter 02
Overview of Department
“Supply Chain Management”
2.1 Brief Overview on term “Supply Chain”:
Supply chain is a system of organizations, people, activities, information, and resources involved in moving
a product or service from supplier to customer. Supply chain activities transform natural resources, raw
materials, and components into a finished product that is delivered to the end customer. In sophisticated
supply chain systems, used products may re-enter the supply chain at any point where residual value is
recyclable. Supply chains link value chains

Supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The
supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers,
and customers themselves. Within each organization, such as manufacturer, the supply chain includes all
functions involved in receiving and filling a customer request.

The customer is an integral part of the supply chain. The primary purpose from the existence of any supply
chain is to satisfy customer needs, in the process generating profits for itself. Supply chain activities begin
with a customer order and end when a satisfied customer has paid for his or her purchase. The term supply
chain conjures up images of product or supply moving from suppliers to manufacturers to distributors to
retailers to customers along a chain. It is important to visualize information, funds, and product flows along
both directions of this chain.
The term supply chain may also imply that only one player is involved at each stage. In reality, a
manufacturer may receive material from several suppliers and then supply several distributors. Thus, most
supply chains are actually networks. It may be more accurate to use the term supply network or supply web
to describe the structure of most supply chains.
2.2 Departmental Organogram:

Global Consumer Products Private Limited Supply Chain Function has 3 departments and their activities are
discussed below:

1. Demand and Supply Planning

2. Procurement
3. Customer Service and Distribution

Supply
Chain

Demand & Procurement Customer

Supply Service &
Planning Distribution

Category Procurement Procurement S&IM Inbound Customer Distribution

Planners Raw Packaging Procurement Logistics Service (HO) Center
materials Materials

I was appointed in S&IM (under Procurement Function) and the Organogram of S&IM is below:

S&IM
Procurement
Manager

Strategic Buyer Strategic Buyer Strategic Buyer Operational Operational

Buyer Buyer
Marketing & Sales Utilities, Logistics
Environment, FM HR and Admin, Advertising
Point of Sales IS/IT and Marketing and
Assets Fixed Assets, Equip telecommunication Sales Marketing and
and MRO s Sales
21
 2.3 How luvit Supply Chain Works

Demand and Procurement Logistics Customer Service Distribution Center

Supply Planning Head Office
As per D&SP MRP Releases the Receives imported
Demand Plan Procure Raw and Products and Captures daily products
Packaging materials from orders from
Supply Plan in 18 Palletization of
Materials from Sea/Air/Road port distributors
month horizon products
local and
Following customs Maintains Stock
Production Plan international Stickering
policies cover policy
suppliers
Material Warehousing
Sending products Manages the
Requirement plan L/C prepare
by Containers to orders increase or System Invoicing of
(MRP)
L/C send factory reduce qty as per products basis
stock status captured orders
Factory Capacity Monitoring
Import
Plan
documentation inbound truck Distributors Claim Vat and tax
Managing Inter prepare movements settlement Documentation
Market Supply
Bill or LC Managing C&F Send products to
Shares MRP to settlement agents and Distributors
Procurement for Chittagong
Submitting full
materials
documents to
Logistics

S&IM (Service and Indirect Material)

Touches all the stages of value chain, Manages the Capital investment flow from start to execution

Manages budget wise spending

22
2. 4 Demand and Supply Planning: D&SP is regarded as one of the most critical
area in Supply Chain. They perform the primary sales planning and supply planning at National
level. Based on the planning figures prepared by D&SP all other areas of Supply Chain work.

- National Consensus Demand Planning (CDP) for each product on 18 months horizon
- National Supply Planning for each product on 18 months horizon.
- Production planning on weekly horizon with Factory Supply Chain and Production dept.
- Dispatch Planning on weekly horizon.
- Material Requirement Planning (MRP) for all Imported Raw and Packaging materials
- Ordering the Raw materials by Purchase Requisition while maintaining agreed Lead time
with Procurement.
- IMSP (Inter Market Supply Planning) with Global Consumer Products Private Limited Inter
Market Subsidiaries.
- Regular participation and facilitation of MBP (Monthly Business Planning) process
along with other stakeholders (Brand, Sales, Finance).
- Participation on Monthly Sales Review (MSR) meeting organized by Sales Department
and facilitate the future 18 months demand planning process.
- Participation on Monthly Gap Review (MGR) meeting organized by Finance Department
and checking whether there is any gap on the budget capacity versus demand planned.
- Organizing the Monthly Forecast Review (MFR) with all Department Directors and Sign
off the Consensus Demand Plan (CDP) came through the MSR and MGR meeting.
- Organizing the Monthly Operational Review (MOR) with all Department Directors and
Factory head to check whether there is any operational issue to meet MFR signed CDP.
- Ensuring that right product is available at the right time at right location with maximum
freshness (shelf life).
- Optimizing Inventory level for Finished Goods, Raw or Packaging materials.
- Demand Planning accurately to facilitate Net Working Capital target of the company.

23
2.5. Procurement:

Procurement is responsible for procuring and ensuring timely arrival of the Finished Goods, Raw
materials and packaging materials that has been ordered or planned by Demand and Supply
Planning Functions with optimizing costs and ensuring higher freshness.

Procurement of Global Consumer Products Private Limited has 4 key areas and their activities are
discussed below:

(a) Raw Materials

(b) Packaging Materials
(c) S&IM
(d) Inbound Logistics

2.5.1 Raw Materials: Raw materials are a key area of Procurement which deals with all the
imported and local raw materials. Their main task is to receive Raw materials requirement on a
longer version of 1 year or 2 year and procure from supplier as per lead time and order quantity.

- Collecting Raw materials future forecast from D&SP (1-2 year horizon).

- Regular communication with suppliers on the Lead time and also sharing to D&SP.

- Collecting Orders by system (SAP) generated Purchase Request (PR) for materials from D&SP

- Create Purchase Order in System (SAP) basis the PR.

- Forward the Purchase Order to Supplier (international or local).

- Ask PFI (Proforma Invoice) from Supplier which includes quantity, price, shipment date etc.

- Verification of PFI.

- Prepare Letter of Credit (L/C) by authorized Bank and forwarding to the supplier.

- Define the mode of payment, Bank selection etc.

- Collect the necessary documents from Supplier before and after Dispatch.

(Documents are Packing List, Certificate of Origin, Health Certificate, Certificate of Analysis)
24
- Define Mode of Dispatch (Sea/Road/Air).

- Dispatch monitoring by checking in website.

- Ensuring Insurance coverage during transportation.

- LC settlement when product reaches Chittagong port.

- Document submission to Inbound Logistics for further processing from Chittagong port.

2.5.2 Packaging materials:

Packaging is an integral part for each products of Global Consumer Products Private Limited as it
saves the product itself. Packaging is done for keeping the proper characteristics of Nutrition and
Health in a particular product. Global Consumer Products Private Limited is concerned about its
packaging compared to other buyers in the market. This is the reason why Global Consumer Products
Private Limited shows its full concern in selecting an appropriate vendor.

In Global Consumer Products Private Limited we have 17 suppliers (13 local and 4 international)

There are 7 Category of Packaging:

1. Flexi Laminate-Used for products such as Noodles Packet.

2. Case Corrugated-Used for Shipping Carton.
3. Solid Board-Used for products such as Cerelac, Nido.
4. Metal Tin Can-Used for products such as Nido.
5. Rigid Plastic-Used for products such Spoon provided in the Nido.
6. Adhesive-Used as a means of Glue.
7. Flexible Accessories- Used as a means of Tape.
- By the help of SAP, contract is created and for each type of category there is a different
vendor assigned.

25
 Workflow of packaging order to payment:

- Factory Supply Chain gives Purchase requisition for Packaging Materials.

- Creating PO and forward to Supplier.
- Make Yearly Contract basis future forecasts.
- Taking Delivery of packaging.
- Make payment to supplier.

2.5.3 S&IM (Supply & Indirect Material):

S&IM (Service & Indirect Material) is another key area of Global Consumer Products Private Limited
Supply Chain who deals with capital expenditures, indirect materials and Media buying and
negotiation.

S&IM deals with the capital expenditures on different sectors of company. Its functional area
includes Capital investment in Factory and investment in New Machines or Production lines to
Marketing or Promotion costs, Advertising costing, Media buying, Indirect Material purchase etc

S&IM works mainly with 10 categories:

01. Advertising:

02. Marketing & Sales:

03. Point of Sales Assets (POS)

4. Utilities, Environment & Factory Management

5. Fixed Assets, Equipment. & MRO

6. Administration & HR Services

7. Other Professional Services

8. Contract Manufacturing

9. Logistics

010. IS/IT & Telecommunication

26
Operational Activities Flow of S&IM
Explaining the Workflow in S&IM:

- Initially, PR (Purchase Requisition) is sent by E-mail.

- It is matched whether there is definite scope.
- Vendor is shortlisted according to the requirement.
- Request Completed.
- Vendor is selected among Available Vendor, Potential Vendor and Enlisted Vendor.
- Then it is categorized whether the type of Vendor is Buyer Insight (for marketing
buyer) or Market Insight.
- Job Rotation is done among the employees in concern that everyone has knowledge of
the entire work.
- Bidding is done by asking the vendors to submit quotation depending on which vendors
are shortlisted.
- Vendors with the lowest price quotation are selected and then other factors are
matched only then they are finalized.
- Negotiation is done through break up which makes the comparison between the prices
easier.
- Final offer is proposed.
- Selection is completed.
- Contract is made which are three types: Long-term, Short-term and One-time.
- After that, PO (Purchase Order) is created and approved; job execution is done when the
Service or Goods is received.
- Bill is submitted.
- 3 way matches is done. (Invoice, Goods Received, PO Value).
- At the end Payment is done.



 
 
 Strategic Process in S&IM:
- Volume is accumulated so that the process is done in low cost and does not take a lot
of time.
- Market Analysis is done to find out what kind of market the vendors belong from.
- Respective to that, negotiation is set e.g. if the vendor is best in the market
less negotiation is done.
- In case of taking Long-term strategy, S&IM ensures that stakeholders are well aligned.

2.5.4 Inbound Logistics:

Inbound Logistics is an integral part of Supply Chain Management in Global Consumer Products
Private Limited. Their tasks start right after getting the final shipment documents from Raw
materials division. Inbound Logistics mainly works to release the imported items from Chittagong
port or Dhaka Airport or Benapol port. They arrange the Duty payment to govt. After getting the
release they also ensure the transportation from port to factory. Their key tasks are:

 Ensuring Supply:
In ensuring supply, products are bought from exporting country to the respective factory
warehouse. Inbound Logistics maintains production availability throughout the process.
There are two types of product: Raw Material and Finished Goods (which is the end
product). Inbound Logistics basically helps business to bring the imported product at right
time and in right place. Its main operation is monitoring, follow-up the imported product
so that supply is ensured. It is done with ensuring maximum advantage of the business.

 Customs Clearance:
Inbound Logistics monitors customs activity of imported materials as per compliance,
ensuring proper commercial value and Duty & Taxes with H.S. Code (Harmonized Coding
System). It facilitates all customs activity getting the important materials within a specified
lead time.
29
  Sea-Transport:
Inbound logistics also look after sea transports related to imported materials. It dispatch
load to country of origin to country of destination within the whole process. It contracts
with shipping agents who are carrying goods from one country to another.
 Inland Transport:
Inbound logistics maintain inland transport services carrying the goods from different
part to warehouse.
 Legal Activity:
Inbound logistics also accomplish legal activity such as resolving disputes at customs end
for any variations of imported goods quantity or documents. It settles all disputes as per
import Policy order, Valuation rules, Customs Act and NBR (National Board of Revenue).
 Claim Settlement:
Furthermore, inbound logistics facilitates insurance claims of imported goods if any
damages occur. It also carries insurance as act retrieved all imported damaged shipments
and also any other damage shipment. These all occurs as per Insurance norms defined for
each and every condition.

2.5.5 Customer Service and Distribution (CSD):

CSD is a key function of Supply Chain who are mainly dealing with daily Primary Sales of
Global Consumer Products Private Limited with its distributors.
- Global Consumer Products Private Limited has 113 distributors and it is divided into 6
Sales regions.
- Sales are categorized into three types and they are Primary Sales, Secondary Sales and
Tertiary Sales. Primary Sales- Primary Sales are Products that are sent to distributors
throughout the year. Secondary Sales- Secondary Sales are Products that are sent from
distributors to the assigned outlets. Tertiary Sales- Tertiary Sales are Products that are
sent from outlet to the perspective consumer.
- Customer Service is engaged in primary sales only.
- There is a Monthly target set for each Product and for which there is CDP (Consensus
Demand Planning) which ensures proper delivery.
- Customer Service ensures that the monthly CDP is properly given to all the distributors.
- For each product there is a norm for the distributor coverage that they cannot keep a
particular product over the norm. Customer Service here manages the distributor norms
also by checking their current stock and giving them new stocks as per their orders.
- For each product there is a stock, target and after finishing the process it is found
how much of the stock remains.
- Software SAP is used in order to carry out the whole process which makes it quite easier
to carry on.
- Global Consumer Products Private Limited has a policy that is “at first they take the
payment and then deliver product”.
- Shipping Planning is also done by Customer Service and also the truckload plan done that
how much product will be carried out.
 Chapter 03
Duties and Responsibilities

I was assigned to S&IM function (Supply and Indirect Material) of Global Consumer Products
Private Limited Supply Chain department. My major tasks were:
 - To Prepare Vendor Database Management System

- Vendor Categorization in the Database

- To communicate with Suppliers and vendors on Global Consumer Products Private Limited
Suppliers Code

- To Ensure that all suppliers are complying to Global Consumer Products Private Limited
Suppliers Code

3.1 Preparing Vendor Database Management System:

Managing vendors is a complex process which, if done right, can deliver many rewards for a large
organization. Large organizations like Global Consumer Products Private Limited have many vendors
that provide products and services. These vendors category also have a subset of vendor with
segregated tasks and specialization. Poor performance by vendors can result in late shipments,
faulty products, legal liability, environmental problems, poor publicity, higher costs, or lost profits.
Clearly it makes sense to prepare a Vendor Database with relevant details so anytime the vendor
can be tracked down. The challenge was to manage vendor’s diversified information and
interactions with many different vendors, departments, geographic locations, and people.

Currently Global Consumer Products Private Limited has total 10 spend Categories and they include
with multiple number of vendors. My tasks was to prepare a robust Vendor Database Management
system by assigning all these vendors to the proper spend categories while enlisting all the best
possible details of these vendors.

By preparing the Vendor Database with all details and putting each vendor under correct Spend
Categories my responsibility was to assist in below ways:

 To improve vendor selection process for the Strategic and Operational Buyers: For any
task we have multiple of vendors so by few clicks a Buyer can identify available options and
their details.

 To assist in Consolidation: It can take a lot of work to manage multiple suppliers of the
same product or service. For any items that Global Consumer Products Private Limited buys, it
can make the most sense from a quality, cost reduction, and time management standpoint to
 consolidate buying of the product or service through one vendor. This can allow the company
to maximize volume discounts and can simplify the process of managing the relationship.
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 By recording the past performance on each vendor they can Predict Performance of a
future selected vendor: By periodically tracking supplier performance and changes in
supplier performance over time, it is possible to develop trends and extrapolate likely
performance into the future. This can allow a company to take prompt corrective action and
to stop a problem before it becomes a hit to the bottom line.
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 Improve Operational Performance: Using vendor database management systems to collect
data on a vendor’s operational performance. Some operational data that Global Consumer
Products Private Limited might collect, include the vendor’s quality, lead times to supply,
service levels, what type of product they sale or what type of service they provide. The group
or the department that is using the vendor’s products or services can measure the quality of
those goods or services.
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 Tracking lead times: By this we can know the amount of time it will take the vendor to
provide the products or services. This type of data can be used to measure the vendor’s
performance and overall capabilities.

3.2 Categorization of Current Vendors:

There are total 10 spend categories and my task was to categorize all the 300+ local suppliers based
on below categories that will help my colleagues on choosing the right vendor quickly. This will
help S&IM function to get knowledge on different category vendors quickly and efficiently.

The categories are shown below:

01 Advertising:

02 Marketing & Sales:

03 Point of Sales Assets (POS)

04 Utilities, Environment & Factory Management

05 Fixed Assets, Equipment. & MRO

06 Administration & HR Services

07 Other Professional Services

08 Contract Manufacturing

09 Logistics

010 IS/IT & Telecommunication

3.3 Communicating Global Consumer Products Private Limited upplier Code to Suppliers:
Global Consumer Products Private Limited Supply Chain never compromises with Quality and this is
also same for all of its Supplier and Vendor. All Supplier and Vendor must comply with Global
Consumer Products Private Limited Supplier Code and Policy that ensures the best quality at every
sphere of the value chain.

The N Global Consumer Products Private Limited Supplier Code defines the non-negotiable minimum
standards that Global Consumer Products Private Limited banasks to suppliers to respect and to adhere
when conducting business with Global Consumer Products Private Limited. This document helps the
implementation of Global Consumer Products Private Limited’s commitment to international
standards such as the UN Guiding Principles on Business and Human Rights, the Core
Conventions of the International Labor Organization (ILO) etc.

The standards of the Code is applicable for the Supplier with whom Nestlé does business, including
their parent, subsidiary or affiliate entities. In addition, through its Responsible Sourcing program,
Global Consumer Products Private Limited reserves the right to verify compliance with the Code
through internal or external assessment mechanisms.

In this regard my key responsibility was

- Regular communication with all local Suppliers on the code.

- To ensure suppliers Acknowledgement of the Code (this is a pre-requisite in every Nestlé
contract for supply).
- Ensure that through the acceptance of the Code, the Supplier commits that all its
operations are subject to the provisions contained in this Code.

3.4 Ensure Global Consumer Products Private Limited Supplier Code compliance by
Suppliers:
To ensure the robust acknowledgement process my tasks were:

- Sharing the Global Consumer Products Private Limited Supplier Code to all suppliers.

- Communicating the details about the code to the suppliers

- Collecting and collating individual suppliers feedback on the Supplier Code

- Disseminating the suppliers feedback about Supplier code to the management

- Ensuring all suppliers feedback and agreement to comply the code

- Helping Suppliers to understand the code and its details