Supply Chain Management Presentation

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Dalda Company Pvt. Ltd.

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Presentation on Dalda Foods (Pvt.) Ltd.:

Presentation on Dalda Foods (Pvt.) Ltd.

Group members :

Group members Saad Hasan Niazi Bilal Niazi Raheem Karimi Riaz Ahmad Kamran Haider

DALDA’S HISTORY:

DALDA’S HISTORY Dalda begins in early 1930’s In 1999 Unilever acquired International Technology to evolve Dalda Banaspati to Dalda VTF. In July 2004 Unilever Pakistan sold its “ Dalda ” brand to Westbury Group. The company entered the pure oil segment in early 2007.

Core Values:

Core Values Integrity. Fairness. Trust. Accountability. People reaching their full potential.

Market Offerings:

Market Offerings Major products offered by Dalda foods are, Dalda Cooking oil Dalda MunPasand Dalda Olive Oil

Major Products:

Major Products Manpasand cooking oil, Manpasand Banaspati , Dalda olive oil extra virgin , (Strong Flavor Aroma with Vitamins) Dalda olive oil pure, (Medium Flavor Aroma with Vitamins ) Dalda olive oil pomace , (Light Flavor Aroma ) Dalda olive oil , (Import from Spain) Dalda canola oil with vitamin power, Plant cooking oil, Dalda cooking oil, Dalda VTF B anaspati (oldest product almost 60 years)

COMPETITORS:

COMPETITORS The branded market of edible oil and Banaspati is dominated by Five players namely: Dalda , Habib, Tullo , Sufi and Soya Supreme.

INVENTORY MANAGMENT:

INVENTORY MANAGMENT Inventory performance is handle by using cycle counting at the end of the month from sale fore casting and physical inventory on daily bases for production and material forecasting. They forecast all the resources and material with the help of stock. They forecast by checking the production whether they need more inventory or not . If it is over then it is also not good because it increase handling cost. Little increase or decrease in inventory will not occur a big problem . They carried safety stocks because there is no concept of Just in Time inventory.

MICRO ENVIRONMENTAL FACTORS:

MICRO ENVIRONMENTAL FACTORS The factors that are close to the company and that affect the ability of a company to serve its customers. There are six different factors that are generally treated as “ MicroEnvironmental Factors” The Company Suppliers Raw material Supplier Packaging Supplier Intermediaries Distributors Logistics Suppliers

Macro Environmental Factors:

Macro Environmental Factors These are the large factors that affect the micro environment. These include Demographic Environment Economic Environment Natural Environment Technological Environment Political Environment Cultural Environment

ORDER PLACEMENT:

ORDER PLACEMENT There is no concept of Just in time inventory so they carry safety stock. Edible oil and Banaspati is highly commodity driven. The final selling price is greatly dependent on the prevailing world oil prices.

Distribution System:

Distribution System They are having a strong distribution system. It has six branches one each in the cities of Karachi, Hyderabad, Multan, Faisalabad, Islamabad and Lahore .

Continue… :

Continue… Each branch has a branch manager to whom several Assistant Branch Manager Report. Under each Assistant Branch Manager there are Lever’s Distribution Managers. Each Distribution Manager is responsible for Five Distributors of Lever Range of Products.

Supplier Rating:

Supplier Rating They are having two suppliers Raw Material Packaging They rate raw material Suppliers by their material quality, defective goods made and the delivery time because they accept good quality of material and they also have large number of suppliers. They rate packaging supplier on the base of the capacity they produce for them.

Distributors:

Distributors Dalda foods have their own distribution strategy. They have divided the shopkeepers into five major categories wholesalers, A, B, C and D and they have specified the minimum SKU’s that they should posses.

ENVIRONMENTAL ANALYSIS AND INDUSTRY ATTRACTIVENESS:

ENVIRONMENTAL ANALYSIS AND INDUSTRY ATTRACTIVENESS PEST (Overall Industry)   P :- Political (Taxation) E :- Economic (Price Rates) S :-Social  (Customer Demands) T :- Technological (Latest Techology )

STRATEGIES OF DALDA COMPANY:

STRATEGIES OF DALDA COMPANY Dalda import the basic raw material for production from Malaysia. They can enter into joint venture with Malaysian companies for getting help in the local production and refining of raw material like; cotton seed, Soya bean etc. Dalda has to work on the easy availability and distribution of cooking oil in the rural area/markets where people still use unbranded or loose cooking oil. acquiring supplier because raw material costs 70% of total cost of production. Acquiring suppliers or join venturing with them is a good strategy to driven out cost and decreasing cost of production.(Backward integration). Dalda Company make the distributor their partners so they keep all the information of the company and they cannot pass it on.(Forward integration). There is no outsourcing the company.

Safety Stock:

Safety Stock Is calculated by the given formula:   Week cover = (Ending Stock of last week / Beginning Stock of next week), and if you want to break in day then you multiply by days ( 6 working days)

INTERNAL ANALYSIS:

INTERNAL ANALYSIS VALUE CHAIN Human Resource Management (Golden Hand Shake By Unilever) Technological Development (VTF Technology Plant) Procurement (Multiple Suppliers) Outbound Logistics (Distribution Network) Service ( Rabta Advisory Service )

CORE COMPETENCIES:

CORE COMPETENCIES Quality Distribution Efficient Supply Chain Strong Brand

STRENGTHS OF SUPPLY CHAIN OF DALDA COMPANY:

STRENGTHS OF SUPPLY CHAIN OF DALDA COMPANY Loyal customers ( Loyal Customers) Production facilities (S.I.T.E) Efficient supply chain management system ( D edicated S pecialized oil-buying department ) Strong sales and distribution network:

RISK IN SUPPLY CHAIN:

RISK IN SUPPLY CHAIN If company fails to maintain stock level of F/G and R/M then sales decreases due to delay in production or delivery to the distributors. If company fails to maintain good relationship with the suppliers and the distributors then you will face serious problem. If company does not consider the trend analysis it will lose the demand.  The main risk is Loss of goods, vehicles, injured person, delayed delivery, weather conditions, economic conditions.  Supplier and the Distributor should be loyal to the company.

DISTINCTION:

DISTINCTION Dalda’s commitment to quality, environmental and corporate social responsibility is signified from the fact that it is the only edible oil and fats brand which has:   BUREAU VERITAS Quality (BVQI) certification of: o ISO 9001-2000 for Quality  o ISO 14001-2004 for Environment  o ISO 22000-2005 for Food Safety  o OHSAS 18001-1999 for Occupational Health and Safety  HACCP certification for Hazard Analysis and Critical Control Points

RECOMMENDATION:

RECOMMENDATION Keeping in view the current standing of Dalda and the edible oil industry in general, we would advise Dalda to stay in the broad differentiation strategy and continue to differentiate itself. By following this strategy Dalda not only differentiate itself but also working on cost reduction.

Queries??? :

Queries???

THANK YOU :

THANK YOU 

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