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SUPPLY CHAIN MANAGEMENT OF BISLERI

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GROUP MEMBERS SR NO 1. 2. 3. 4. 5. 6.

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NAME JESUSRAJ RAPHEL ASHISH RAI VIKRANT SINGH ADITYA VISHWAKARMA KRUNAL LAKHANI BONNY DEVASIA

ROLL NO 32 41 46 49 53 55

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SR NO TOPIC 1. Introduction of supply chain management 2. Definition of supply chain management 3. Element of supply chain management 4. Process of supply chain management 5. Objectives of supply chain management 6. Function of supply chain management 7. Participants of supply chain 8. Advantages of supply chain 9. Disadvantages of supply chain 10. Inventory management 11. Warehousing 12. Packaging 13. Transportation 14. Role of IT in supply chain management 15. Reverse logistics 16. Cost reduction strategy 17. Introduction to Bisleri 18. History 19. Bisleri purification process 20. Field visit

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INTRODUCTION OF SUPPLY CHAIN MANAGEMENT

Supply chain management is concerned with getting the product and services where they are needed and when they are needed. It is difficult to carry out any marketing or manufacturing activity without logistics support. SCM involves integration of various functions such as transportation, warehousing, packaging, material handling, inventory management, information management, etc. Supply chain consist of all the stages that are required to satisfy customers request. It starts with the supplier and passes through the manufacturer, wholesalers, retailers and finally reaches the customer.

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Definition of supply chain management

According to council of supply chain management professionals, supply chain management may also be define as the integrated management of all linkages and value added activities from the supplier’s supplier to the customer’s customer in such a way that enhanced customer value is achieved at lower costs.

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Element of supply chain management There are FOUR driving forces which lead to the development of supply chain management. Companies have undertaken various initiatives and approaches to address and assortment of issues related to their supply chain management. These approaches and initiative classified into seven streams. 1. Strategic Purchasing

Intense competitive pressures have forced companies to re-examine their approach to managing suppliers and their supply base. An increasing focus on core competencies, and the increase in outsourcing of components and services, has also placed greater emphasis on supplier management. In addition, much of the traditional inhouse development activities have been pushed onto suppliers. Purchasing is thus increasingly regarded as a strategic weapon, centered on its ability to create collaborative relationships for firm advantage. Partnerships with suppliers can have a strong positive influence on firm performance through the development of joint resources and the BISLERI

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exchange of valuable knowledge with these individual partners. In practice, many firms fail to realize these benefits when they implement sourcing agreements at a lower negotiated price. They fail to follow through with the relational processes that capture benefits over the course of the contract. The ability to extract benefits from supplier relationships is linked to the way these relationships are managed. 2.Supply Management

A broad term describing the various acts of identifying, acquiring and managing the products and/or resources needed to run a business or other organization. These include physical goods as well as information, services and any other resources needed. Supply management divisions within large corporations can be very large, with budget in the billions and employing hundreds of workers. The main goals within supply management are to control costs, efficiently allocate resources and gather information to be used in strategic business decisions

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3.Communication

Communication is a crucial to supply chain and yet it is surprisingly one of the biggest areas in the need of improvement. When it comes to cooperating with staff in other departments, many procurement professionals admit it is very difficult. And when it comes to communicating with those outside the organization, i.e. the suppliers, communications can become even further strained. It all boils down to the simple fact that with proper communication between stakeholders and external suppliers, more creative ideas can be brought to the table, thus improving the process. If people from different points of the process are able give ideas for improvements based on firsthand experience, it stands to reason that this will made for a much better managed process. If communication is limited, so is the ability of the procurement department to influence the end to end procurement process.

4.Supplier selection process Choosing the right supplier involves much more thanscanning a series of price lists. Your choice will depend on a wide range of factors such as value for money, quality, reliability and service. How you weigh up the importance of these different factors will be based on your business' priorities and strategy.

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SUPPLY CHAIN MANAGEMENT PROCESS Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost-effective. A supply chain is the collection of steps that a company takes to transform raw materials into a final product. The five basic components of supply chain management are discussed below  Plan The initial stage of the supply chain process is the planning stage. We need to develop a plan or strategy in order to address BISLERI

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how the products and services will satisfy the demands and necessities of the customers. In this stage, the planning should mainly focus on designing a strategy that yields maximum profit. For managing all the resources required for designing products and providing services, a strategy has to be designed by the companies. Supply chain management mainly focuses on planning and developing a set of metrics.  Develop(Source) After planning, the next step involves developing or sourcing. In this stage, we mainly concentrate on building a strong relationship with suppliers of the raw materials required for production. This involves not only identifying dependable suppliers but also determining different planning methods for shipping, delivery, and payment of the product. Companies need to select suppliers to deliver the items and services they require to develop their product. So in this stage, the supply chain managers need to construct a set of pricing, delivery and payment processes with suppliers and also create the metrics for controlling and improving the relationships. Finally, the supply chain managers can combine all these processes for handling their goods and services inventory. This handling comprises receiving and examining shipments, transferring them to the manufacturing facilities and authorizing supplier payments. BISLERI

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 Make The third step in the supply chain management process is the manufacturing or making of products that were demanded by the customer. In this stage, the products are designed, produced, tested, packaged, and synchronized for delivery. Here, the task of the supply chain manager is to schedule all the activities required for manufacturing, testing, packaging and preparation for delivery. This stage is considered as the most metric-intensive unit of the supply chain, where firms can gauge the quality levels, production output and worker productivity.

Objectives of supply chain management 1. To maximize the overall profitability: The most important objective of supply management is to maximize the overall supply chain profitability. The supply chain profitability is the difference between the amount paid by customer to purchase the product and the cost incurred by BISLERI

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organization to produce and supply the product to the customer at right time. 2. Enhancing customer service: One of the major objectives of supply chain management is to provide superior consumer service. It aims at avoiding any kind of service failure and provides efficient service to customers thereby leading to customer satisfaction . 3. Reduce inventory cost: One of the objectives of supply chain management is to reduce inventory cost. Due to efficient supply chain management , there is greater coordination and corporation among the members which helps to reduce inventory thereby reducing inventory costs. 4. Reduce warehousing cost: Due to reduction in level of inventory there will be a reduction in warehousing cost as there will be less held up of inventory. 5. Reduce transportation cost : Another objectives of supply chain management is to reduce transportation cost through proper planning BISLERI

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and network and by using transportation principals like economics of scale and economics of distance 6. Reduce lead time: Efficient supply chain management should reduce the time required to convert orders into cash through proper communication, coordination etc. 7. Minimizing variance: Supply chain management through standardized of activities and process helps to reduce variance between actual results and perceived results .

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Functions of supply chain management 1. Defining business boundaries and relationships: It is one of the most important functions of the supply chain. It involves decision on what should be manufactured in-house and what should be outsourced. This will help to clearly define the members involved in the chain, role of each member and relationship among the channel members. 2. Managing demand and supply: Another function of supply chain is managing the demand for goods and services along the supply chain. The basic demand is the demand for the ultimate product from the end user. 3. Logistics: Logistics refers to all processes involved in storing, moving , transporting or in any other way handling material. Role of logistics in scm starts right from purchase of raw materials upto transportation of finished goods to end consumers.

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4. Purchasing: Purchasing play a key role in total scm functions. It is concentrated with procurement of raw materials required for manufacturing the product. The company should select vendor in order to make the raw materials available at right time, at right place, and in right quantity. 5. Selling: Selling is the closest link with the demand side of the supply chain. It is directly responsible to help customer know, select, buy, pay for and take away company’s product. These products may be sold to the customers directly or thought a distribution network. 6. Manufacturing: Manufacturing represents the core of internal operations of a company. Manufacturing supports supply chain management in way like, reducing manufacturing lead times and supplying materials closely matched to customer’s requirements.

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PARTICIPANTS OF SUPPLY CHAIN 1.Suppliers: These are the organizations that provides goods and services to the purchasing organization. Suppliers provide raw materials to manufacturers who need these to run their operations or incorporate in to the goods that they manufacture. 2.Manufacturers: These are the organization that are engaged in the production of goods and services. Manufacturers sell their goods to others like distributors/wholesalers/retailers in the supply chain for the resale. 3.Distributors: Distributors are typically middlemen that purchase goods from manufacturers with the intention of reselling them to others in supply chain. 4.Customers: Customers are the end receivers or users of the product or service. They are the essential part of the supply chain

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as they are the ultimate consumers of product and services.

Advantages of Supply Chain Management Supply Chain Management allows higher discount on price to wholesaler due large order size. Supply Chain Management helps to improve customer care service. Supply Chain Management helps to achieve better inventory control. Supply Chain Management is used to improve reputation of brand in market. Supply Chain Management is used for production tracking. Supply Chain Management is used to provide better information on customer needs, tastes etc., Supply Chain Management helps to achieve regular and better communication with the customers

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Disadvantages of Supply Chain Management Sometimes Supply Chain Management can be very expensive to implement. Competitors can easily copy the strategy of Supply Chain Management. For better Supply Chain Management, proper skills and experience is required to achieve success. Sometimes in Supply Chain Management various functions may be difficult to manage. In Supply Chain Management there may be staff resistance.

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INVENTORY MANAGEMENT Meaning of inventory management: Inventory is a stock of any item or resource used in organization. These item or resource can include raw materials finished product component parts, supplies etc. OBJECTIVE OF INVENTORY MANAGEMENT 1. Avoid stock-out: The main objective of inventory management is to maintain inventory at appropriate level so as to avoid shortage of inventory. Inventory management helps us to ensure that customers have access to product as and when they need them. 2. Avoid excess inventory: Another objective of inventory management is to maintain inventory at optimum level so as to avoid excess inventory. Nowsdays, companies have adopted moderns system like just in time to avoid excess inventory while trying to meet demands. BISLERI

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3. Move goods efficiently: Efficiency in inventory means the ability to quickly receive and store product as they come in any retrieve and ship when they go out.Every extra second spent in these process adds to the cost of inventory management. Plus efficient distribution is a customer satisfaction issue for trade channel sellers and retailers. 4. Maximse profit margins: Well managed inventory is often the key in meeting profit margin objective. If the inventory level is appropriate, it will result in lower inventory management cost. It will result in smooth overall functioning of the organisation thereby resulting in higher efficiency and profitability. 5. Other objectives: 1. To minimize inventory carrying cost. 2. To keep investment in inventory at optimum level. 3.To reduce the losses of theft, obsolescence and wastageetc. 4. To minimize inventory ordering costs.

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WAREHOUSING A warehouse is a commercial building for storage of goods. Warehouse are used by manufacturers, importers, exporters, wholesalers, transport business, customs, etc. They are usually large plain buildings in industrial areas of cities and towns and villages. They usually have loading docks to load and unload goods from trucks. sometimes, warehouse are designed for the loading and unloading of goods directly from railways, airport or seaport. They often have cranes and forklifts for moving goods. Stored goods can include any raw material, packing material, spare parts, components, or finished goods. Warehousing is the action or process of storing goods in a warehouse.

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PACKAGING Packaging of items plays an important role in contributing to value addition of products and boosting up their sales. Consumers get to know the products calories, expiry dates and other details from the information provided on the packages. Packaging business has become highly competitive with different modes of packaging in use. Logistical packaging provides various benefits such as damage protection, material handling efficiency, communication etc.

BENEFITS OF PACKAGING 1. Physical protection: A major function of packaging is to protect the product from any kind of damage while moving and being stored in logical system. The objective of packaging is to provide protection to the product from shocks during transportation, vibration, compression, shocks of handling and moving etc.

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2. Environmental protection: The product may also require protection from certain environmental factors such as temperature, humidity, contamination. Thus packaging also provides environmental protection. For example: in order to keep the contents of the product clean, fresh and safe for the expected shelf life, it may have to be protected from oxygen, watervapour, dust etc. 3. Helps to improve material handling efficiency: This packing must assist the processes of loading and unloading. Proper packaging facilities easy material handling during transportation, warehousing and storage. Thus, all logistical operations are affected by packaging. 4. Weight minimization: Weight minimization involves reducing weight of the consignment to fully utilize capacity of the truck. For eg: liquid in glass bottles. Liquid may be packed in plastic bottles in order to reduce the weight. BISLERI

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5. Reduce pilferage opportunities: Packaging helps to reduce pilferage opportunity. For eg, pilfer proof caps, pilfer proof seals helps to reduce pilferage opportunities. 6. Communication:  Packages and labels communicate how to use, transport, recycle, or dispose of the package or product.  Content identification- What does this contain? Product, manufacturer, universal code etc. with high visibility.  Tracking- Bar codes and scanners.

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Transportation Transportation refers to physical movement of products from one place to another. Since products are produce in different area and consumed in different area, transportation physically moves the product from where it is produce to where it is needed. It acts as a link that connects the company to its suppliers and customers. A good transportation system is one of the fundamental pillar for growth of industry and commerce. In India before the arrival of the British trade of goods was carried out through land and sea routes. The port infrastructure was one of the finest and India accounted to almost 70% of world trade. However the British introduce the railway and modernized the road infrastructure. After independence, the Indian Government further developed the road air rail and water transportation. In recent time the government has embarked upon projects such as the Golden Quadrilateral . Howeverthe degree of sophistication of transportation network depends upon the level of economic development and the level of infrastructural development in that economy. Product movement Weather the product is in the form of material, components or work in process transportation is necessary to move it to next step of manufacturing process or physical closer to ultimate customer BISLERI

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Advantages of Road Transport Limited Capital Expenditure The capital required in road transport is less as compared to other modes of transport Door to Door Service The outstanding advantage of road transport is that it provides door to door or warehouse to warehouse service. This facility is not available in any other form of transportation Flexibility Road transport is highly flexible mode of transportation. It does not follow any fixed schedule. This kind of flexibility is not available in any form of transportation Suitable for short distance Road transport is suitable for short distances. Goods can be easily and quickly transported from one place to another through roadway Feeder to other mode of transport The movement of goods begins and ultimately ends by making use of roads. Thus , Road transport acts as a feeder to the other modes of transport such as railways, waterways and airways. BISLERI

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ROLE OF IT IN SUPPLY CHAIN MANAGEMENT Information is power and is used as one of the resources to develop a competitive edge in business today. As logistics is an information based process of material movement, it has a crucial role in supply chain competitiveness. Due to advancement of technology, the speed of information flow has increased tremendously. Thus, it helps in taking real time decision so as to take corrective measures. 1.Better communication: Information technology facilitates better flow of information among various members of supply chain such as wholesalers, retailers, dealers and other intermediaries. This facilitates better coordination and communication among various members thereby avoiding errors. 2.Competitive advantage: With the use of right technologies, the company will be in a position to make the goods available at the right time, at right place and at right quantity there by resulting in customer satisfaction. Moreover, it will help to reduce operational cost, reduce lead time, eliminate errors and retain all existing customers. BISLERI

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3.Ease of operations: Use of latest IT tools and technologies like Electronic Data Interchange, Logistical Information System, Enterprise Resource Planning etc. Facilitates easy exchange of information among different departments. These methods or technologies smoothen the work flow for better productivity. 4.Quick decision making: Use of various IT software and tools helps to collect store analyse and retrieve the information as when needed. It also helps in comparing the actual data with planned data. This comparison of planned and actual data plays a vital part in the decision making process. 5.Early warning system: Use of various IT tools helps to recognize exceptional situations at an early stage. This helps in identifying undesirable situation which can be detected and rectified in time. The early warning system also facilitates the selection of potential weak points which can be rectified later.

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6.Accurate data: Use of IT tools like RFID (Radio frequency identification), bar coding etc. helps to collect and store accurate data this helps in adequate analysis and proper decision making for the management. 7.Identifying the location of consignment: Use of IT tools like global positioning system (GPS) and satellite communication can help to identify the exact location of the consignment. Tracking the actual location of an consignment is very helpful to the firm as they can easily predict the time required for the consignment to reach customer’s location/destination.

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REVERSE LOGISTICS Reverse logistics is for all operations related to the reuse of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." [1] Growing green concerns and advancement of green supply chain management concepts and practices make it all the more relevant. [2] The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with events that bring the product towards the customer. In the case of reverse logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer. [3] When a manufacturer's product normally moves through the supply chain network, it is to reach the distributor or customer. Any process or management after the sale of the product involves reverse logistics. If the product is defective, the customer would return the product. The manufacturing firm would then have toorganize shipping of the defective product, testing the BISLERI

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product, dismantling, repairing, recycling or disposing the product. The product would travel in reverse through the supply chain network in order to retain any use from the defective product. The logistics for such matters is reverse logistics.

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COST REDUCTION STRATEGY Cost reduction is the process used by companies to reduce cost and increase their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. Every decision in the product development process affects cost. Companies typically launch a new product without focusing too much on cost. Cost becomes more important when competition increases and price becomes a differentiator in the market.

FOCUS ON PROFITABLE PRODUCTS AND SERVICES One of the first places to start for cost reduction opportunities is by reviewing the profit margin on the products or services you are offering. Determine which of your products or services are bringing you the highest profits. Focus your efforts on the products or services that are most profitable and cut out the products or services that are not returning as high a profit to your business.

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INTRODUCTION TO BISERLI INTERNATIONAL Bisleri is a brand of a bottled water in India. Bisleri has 60% market share in packaged drinking water in India. Product range comprises of two variants: Bisleri with added minerals and bisleri mountain water. It is available in 8 packs sizes: 250 ml cups,250 ml bottles, 500 ml, 1 litre, 1.5 litre,2 litre, 5 litre and 20 litre. It operation run throughout the sub-continent of India and one of the lead bottle water supplying company in india. As of 19 September 2015 bisleri has 80 bottling plants amongst which 12 are they own and 68 are licensed.

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HISTORY Biserli was founded by signor feliceBiserli was an Italian company.Italian mineral water company was launched in India in year 1965 and brought by the parle from the ltalian entrepreneur signor felicebiserli in 1969 mineral water company.At the time biserli had beenunable to market bottle and planned to exist the market however parle group felt that no soft drink company was complete without soda. Biserli was initially used to launch both carbonated and noncarbonated versions of biserlisoda.biserli soda though doing well, had to be discontinued, as parle sold their soft drink brand to coco cola in 1993. after sale of coco cola, Ramesh Chauhan sifted the main focus to make biserli into a major brand.  1990: Opponents started for biserli in large scale but even it was still able to survive.  1991: Biserli economic 20 litre jar was introduced to cater to home and office.

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 2006: Biserli changed its brand color into blue to green. Biserli mountain water from the Himalayas was launched.  2009: Biserli ushered in the festive seasons with 250 ml and 500 ml packs.  2010: Biserli stepped into the premium water category with vedica natural mountain water from the Himalayas.  2011: A home size pack of 15 litre was introduced. Biserli soda was launched  2014: Biserli launched an energy drink urzza.  2015: Biserli changed its packaging.

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Bisleri purification process The multiple stages of the Bisleri purification process is claimed to ensure that the water is free from all forms of bacteria. Bisleri does not use the process of chlorination as it may create harmful residues in water. The journey of a Bisleri bottle begins from the source which is ground water. This sourced water is treated with ozone, which helps destroy all the bacteria and viruses within seconds. The water then goes through a sand filter which removes the coarse particles up to 30 micron in size. The next filter is the carbon filter which helps get rid of any pesticides, color and odor from the water. This water then goes through a process called reverse osmosis which removes the excess quantity of salts and minerals from the water making it soft and drinkable. Minerals are then added to the water to bring back the taste and goodness. Bisleri mineral water contains minerals such as magnesium sulphate and potassium bicarbonate, which the company claims to maintain the body’s pH balance and to keep the body fit and energetic. At Bisleri this purified mineral water is made to go through a double ozonisation process before the filling to ensure no environment contamination happens during the filling and the product can enjoy a long life. BISLERI

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The entire process involves zero human intervention giving no chance for external contamination. In case of SKU’s such as the 20-litre jar, where the container is reused, there is an additional process followed. This process involves getting back the containers, conducting a human check for any damaged or contaminated containers which are immediately crushed and sent for scrap. The usable containers are washed and undergo an ozonisation process to purify them and make them safe for re-use. The containers are then filled. For other products at Bisleri, including Vedica and Urzza, similar production processes are followed, with variations in technique according to the product's requirement.

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FIELD VISIT OF BISLERI Suppliers and Raw materials:  Raw materials added in Bisleri are1.calcium 2. chlorides 3. magnesium 4. Sulphate These all are the contents in bottle of bisleri. The companies that provide bisleri with raw materials(chemicals) are prime tech limited. They usually purchase raw material monthly basis. 1)Sources water from Himalayas. 2)It also sources water from rivers and treat it. 3)During rainy season rain harvesting is done and during summer seasons they extract water from bore-wells and outsource water through water tanks from the nearby areas. It sources plastics for the bottle from Manjushree techno park Ltd, a provider of PET plastics.

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Warehouse:  There are almost 16 warehouses across Mumbai and 1820 almost all over India. Packaging: 1.Capping:  For capping ozonized caps are used. Rubber and stainless steel parts are used as it touches the whole water bottle to avoid germs and infection. 2.Labelling:  Hot melt reel feed Bopp machine is used for labelling.  A pre-cuted glued label is rolled with the bottle. The safety precautions taken while packing is done as follows:  checked whether the bottle is leaking or damaged  packed into sturdy cartoons  dispatched to market through trucks

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Manufacturing Cost: Sizes of Bottles 250ML 500ML 1LTR 1.5 LTR 2 LTR 5 LTR 20 LTR Transportation:

MRP Price (Rs) 6 10 18 22 26 50 200

Price per bottles (RS) 4.5 8 12.5 18 21 35 130

 After manufacturing the bottles are stored in a rack like place and are arranged according to liters. For the transportation the bottles are packed in cartons and by using forklifts the cartons are loaded in to trucks.The entire process involves zero human intervention.The timing is between 1pm to 6 pm is the delivery time of the bisleri bottles. Because it is convenient time to distribute and some distributers are not open at morning to receive goods at morning. On a national level 2000 trucks on call for bisleri, while BISLERI

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the number of trucks averages 300 and 250 in Mumbai and Delhi markets. It also uses railways if necessary. Distribution:  The first truck released at 1 pm covers several parts of Mumbai in a cycle covers the area like vile Parle, Santa Cruz, lower Parel, Goregoan, malad, marine lines and the second truck that leaves by 3pm covers Ulhasnagar and panvel and also the harbor line is covered like cst and sion etc.

Wholesalers and Retailers:  There are almost 3400 whole sellers all over India and 315000 retailers. Raj trading company is the leading distributor of bisleri water in Mumbai. They operate in thane, Navi Mumbai and malad. There are also other wholesalers like bisleri store, tanuja agency, shree Ganesh agency etc. Inventory Management:

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 Bisleri has 7 stock keeping units 5 under bisleri bottle,1 under vedica natural spring water and 1 under urzza power drink. 1)About 50 tones of stocks are dispatched for a month. 2)They stock water as inventory. The water is stored in the cement tank of capacity of 9000 Gallons approximately (34,069 liters). The tank is cleaned using chemicals regularly (every month) to avoid bad smell, germs & bacteria. Role of IT in inventory management:  Replenishment.  Monitoring inventory levels.  Information on current stock levels. IT is also used for online ordering of bisleri bottles and also used for online payments. Reverse logistics:  In case of SKU’s such as the 20-litre jar, where the container is re-used, there is an additional process followed. This process involves getting back the containers, conducting a human check for any damaged or contaminated containers which are BISLERI

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immediately crushed and sent for scrap. The usable containers are washed and undergo an ozonisation process to purify them and make them safe for reuse.

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