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PS I PROJECT PRESENTATION

Al Seer Trading

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By

Shivang Patel Jeslyn John

Shilpa Uppalapati BhaskarBabu

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Introduction

Logistics

Layout and Handling

Customer Survey

Consumer

Order and Replenishment Planning

Customer Survey

NestleCompetition Awareness &

Counteraction

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Layout and Handling

Methodology

Collected existing material

Blue print

Documents in use.

Verified the existing material.

Used AutoCAD for the layout.

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What we created

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Warehouse Management

System (WMS)

In the process of implementing

WMS does the following

All the shelves are given an address

and a barcode bywhich the system

identifies them.

Contains the information

Creates a picking list automatically

Picking list contains onlythe

addresses. Our project here

Create a visual aid to help in effective

picking, storing and supervising

Created a MAP

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Addressing System

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Retail Rack Store

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Safe Storage Area

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Possible Advantages

Points out the actual location of

the shelf/rack effective

picking

Supervising

Avoids Fragmentation

Training of the staff andnewcomers for theWMS system

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Effective Storage

Collected data of

space usage over a

period of seven days

Emptypallets

Half filledpallets

Observations

Wholesale

Empty 403

Wholesale

Half empty

616

Retail empty-

191

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WHAT THE NUMBERS

MEAN

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Retail shelf store

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Suggestions

The products in wholesale area couldbe shifted on temporarybasis to the

retail area

Lease out extra space in the whole sale

area also ( ex Bulk Area)

Make more number of half shelves

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Phase II

Customer Survey

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Customer Interviews

Two kinds of customers from the

logistics point of view External Retail outlets

Internal - Nestle and ConsumerDepartments

Reports collected Goods returned reports

Sales report ( outlet wise, product wise)

Created questionnaires targeting Internal salesmen Nestle and Consumer

Depts.

External Customers Retail Outlets.

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Areas Targeted in the

Questionnaire:

External Customers:

Services Offered

Attitude of the Al Seer

representativesGoods returned problem

Benchmarking

Internal Salesmen:

Support offered

Flow of communication

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Analysis of internal customer

survey

In t er na l c us t omer s ur vey

3 3

2

4

5

4

5 5

2

3

43

33

5

44

0

1

2

3

4

5

6

7

8

9

10

scale

P r o d u c t awar en ess

or der c on f i r mat ion sy st em

f l o w o f co mmu n ica t io n (yo u an d S O P )

(you and t r anspo r t divis ion )

(you and del iver y per so n)

u p d at io n ( e r r o r s in L P O )

(del ayed del iver y)

( goo ds r et ur ned)

A ccu r acy o f L P O's

D es i r ed S u p o o t in u r g en t r eq u es t s

cu st omer compl a ins ( de l iver y t ime /

d a y )(behavio ur of del iver y per son )

(cond it ion of goo ds at del iver y)

(invo ice d el iver y mismat ch )

U p d a t i o n a b o u t ( c h a n g e s i n

b a r c o d e )(changes in p r oduct code)

(pr ice dif f er enc e)

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External Flow of communication

Average : 2

The general view about this question was that the communication was

pretty smooth

Salesmen & Sales Order

Processor

1

6

2

3

1 1 1 1

4

3

1 1

2 2

4

1

2 2

0

1

2

3

4

5

6

7

8

9

10

Least

Highest

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Salesmen & Transport division

1

7

5 5

4

1

2

9 9

2

1

7

2

3

10

1

2 2

0

1

2

3

4

5

6

7

8

9

10

Highest

Least

Average : 4

The trend shows that this channel of communication required a better andsmoother flow

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Salesmen & Delivery person

2

8

5 5 5 5

1

9 9

2

1

10

2

5

10

2 2

3

0

1

2

3

4

5

6

7

8

9

10

Lowest

Highest

Average : 5

This was a point of dissatisfaction for most of the people interviewed

It was suggested that the deliveryman should be provided with a mobile meansof communication and should be instructed to contact the respectivesalesperson in anyevent of returns so that theycan make an effort to solvethe issue then and there and prevent the goods returned

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How well are Salesmen updated

about

Errors in LPO's

2

8

7

5 5 5

1

3

5

2

1

10

2

8

3

1

2

3

0

1

2

3

4

5

6

7

8

9

10

Lowest

Highest

Average : 4

There was a slight hint of dissatisfaction in this area

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How well are Salesmen

updated about

Delayed deliveries

5

7

8

9

10

1 1

4

8

1

9

10

6

8

1

2 2

3

0

1

2

3

4

5

6

7

8

9

10

Highest

Lowest

Average : 5

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How well are Salesmen

updated aboutGoods returned

2

9

8

5 5 5

1

9

8

1

10 10

6

8

4

1

3

2

0

1

2

3

4

5

6

7

8

9

10

Highest

Lowest

Average : 5

This was also an area of dissatisfaction and this could be reduced by

promptly informing the concerned salesmen

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Customer Complaint Frequency

Delivery date / t ime

1

6

3

4

3

5

2

3

7

2 2

1 1

3

2

10

7

2

0

1

2

3

4

5

6

7

8

9

10

Lowest

Highest

Average : 4

This statistics show that complaints related to delivery are received by

the salesmen from their customer at considerable frequency

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Customer Complain Frequency

Behaviour of delivery person

1

8

3

1

5 5

1 1

2

3

4

1 1

3

2

10

3

2

0

1

2

3

4

5

6

7

8

9

10

Lowest

est

Average : 3

It shows that the complains related to behavior of delivery person arenot that common and is not an area of concern. Also it was pointed outthat the delivery personnel have a very heavy schedule accompaniedwith the long waiting hours at some retail outlets.

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Conditions o f goods when delivered

1

3

2

1

5

1 1

2

8

1

7

1 1

3

2

10

2

1

0

1

2

3

4

56

7

8

9

10

Lowest

Highest

Average : 3

Complaints related to condition of goods at the time of delivery were

also not encountered much

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Invoices dont matc h the delivery

3

4

2

1

3

1 1 1

8

3

10

1 1

3

2

10

2

1

0

1

2

3

4

56

7

8

9

10

Lowest

Highest

Average : 3

Except for some isolated cases this complain was also not received

that frequently.

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Internal Flow of communication

Change s in barcode

1

9

10

5

10

1 1

8

4

3

10

9

2

5

8

1

10

1

0

1

2

3

4

5

6

7

8

9

10

Lowest

Highest

Average : 5

This was a major area of concern at the level of dissatisfaction was ageneral trend

Our suggestions - use of SMS to update the salesmen in real time

Mentioning of barcodes on the invoices.

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Changes in product code

1

7

9

5

3

1 1

9

4

2

3

9

2

4

7

1

10

1

0

1

2

3

4

5

6

7

8

9

10

Lowest

Higest

Average : 4

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Price difference

2

6

9

8

2

1 1

10

2

1 1

9

2

4

6

1

10

1

0

1

2

3

4

5

6

7

8

9

10

Lowes

es

Average : 4

Information regarding the price difference was also not conveyed

immediately

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Suggestions gathered during

interviews

An order copymust be sent outwith everydelivery(TheactuallyLPO or the order formthat is alreadysigned bythe

manager and shelf boy.) Special requirements should be

highlighted in the picking slip.

Provision of mobile phones andcards to deliverypeople

Merchandiser to be present atthe time of deliveryat the UnionCo-ops

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Our suggestions

The barcodes ( numbers ) should bementioned in the invoices

Salesmen should be informed

immediatelyusing SMS (Shortmessaging Service)

the deliveryperson should first beprovided with mobiles

Deliverypersonnel should call thesalesmen immediatelyin case of ayproblem

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Analysis of external customer

survey

Ext er na l c us t omer sur vey

22

22

3

22

2

4

2

2 2 2 22

0

1

2

3

4

5

6

7

8

9

10

scale

or der cyc l e t ime

pr odu ct as per LPO

av ail abi l it y of in f or mat ion

accur acy o f invoices

accur acy o f de l ive r ed goo ds

cond i t ion o f pr oduc t s when

r ecei ved

pr ompt so l ut ion s

inve s t ment in s hel f spa ce

wr ong bar code

s ho r t ex pir y

damaged goods

it em no t l oad ed

pr ice di f f er enc e

it em no t r eq ui r ed

l a t e del iver ies

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Satisfaction of total order

cycle time

Cycle time satisfaction

2 2 2 2

1 1 1

2

3 3

2 2

0

1

2

3

4

56

7

8

9

10

Lowest

Higest

Average : 2

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Availabilityof product as per

LPO

Availability of product

3 3

1

3

1

5

1 1

2 2 2 2

0

1

2

3

4

5

6

7

8

9

10

Highest

Lowest

Average : 2

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Availabilityof information

Availability of information

3

2

1

2

1 1 1

3 3 3

2 2

0

1

2

3

4

56

7

8

9

10

Lowest

Highest

Average : 2

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Accuracyof invoices

Accuracy of invoices

3

2 2

3

1 1 1 1

3

5

2 2

0

1

2

3

4

5

6

7

8

9

10

Lowest

est

Average : 2

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Accuracyof delivered goods

Accuracy of delivered g oods

3

2

9

2

1 1 1 1

3 3

2 2

0

1

2

3

4

5

6

7

8

9

10

Higest

Lowest

Average : 3

Only Lamcy Plaza had a problem. But the problem was originating from

their side.

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Condition of product when

received

Condition of products when received

3

2

1

2

1 1 1 1 1

2 2 2

0

1

2

3

4

5

6

7

8

9

10

Highest

Lowest

Average : 2

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Promptness in dealing with

customer complains

Dealing with customer complaints

3

2

3

2

1 1

2 2 2 2 2

0

1

2

3

4

5

6

7

8

9

10

higest

lowest

Average : 2

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Frequencyof problems

regarding

Problems reg arding barcode

4

2

9

2

4

10

5

1 1

2 2 2

0

1

2

3

4

5

6

7

8

9

10

higest

lowest

Average : 4

The goods had to be returned due to barcode not being accepted by the

retail outlet system

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regarding

Problems reg arding short expiry

4

2

1

2

4

1 1

2

1

2 2 2

0

1

2

3

4

5

6

7

8

9

10

higest

lowest

Average : 2

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regarding

Problems regarding items not loaded

1

2

1

2

1 1

2 2

1

2 2 2

0

1

2

3

4

5

6

7

8

9

10

lowest

higest

Average : 2

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regarding

Problems reg arding price diferenc e

1

2

1

2

4

1 1

2

1

2 2 2

0

1

2

3

4

5

6

7

8

9

10

lowest

higest

Average : 2

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regarding

Item not Required

1

2

1

2

4

1

2

1

2 2 2

0

1

2

3

4

5

6

7

8

9

10

Series4

Series6

Average : 2

The customers were quite happy because whatever they returned were

being accepted by Al Seer

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regarding

Average : 2

Problems regarding late

deliveries

4

21

2 2

4

21

2 2 2

012345

67

89

10

Highest

Lowest

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Areas of concern & Suggestions

Certain unlisted products were sent along with the listed ones

Complain bycertain B class supermarkets about the salesmen and

merchandiser not visiting the outlet frequently

Frequent problems with barcode in certain A class supermarkets in

promotional items

Certain outlets suggested printing of barcodes on the invoices to

reduce the confusion

As far as the benchmarking is concerned we made our constant

effort to make sure that whatever the rating theygave was relative

to certain market leaders like Transmate, MMI, and T Choittram &Sons etc, considering this the result show that our services from

the logistics were better than the competitor as there were

frequent references to these competitors and comments placing

our services on the top

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Conclusion

Actual layout of the

warehouse using AutoCAD

WMS Maps

Efficient space usage

Areas of concern from

Customer & Salesmen

interviews

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ORDER AND REPLENISHMENT

PLANNING

OIP (Order InventoryPlanning)

FACTBOOK

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Sample of OIP Report

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Mistake in the formulae

Alignment Problem

Error in programming

ERRORS FOUND IN THE OIP

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New Model

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Can access it at anypoint

of time

No confusion whatsoever

Can update it whenever

possible

ADVANTAGES

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Customer Relationship

Management

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PROJECT AREA: The draw on the HUGGIES

promotion

SUBDIVISIONS: 1. CUSTOMER DATABASE

2. SURVEY

3. HTML EMAIL

HOWWAS THE PROJECT CARRIED

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HOWWAS THE PROJECT CARRIED

OUT?

Identifydifferent types of prizewinners

Input into the computer

Contact them

Give out their prizes

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Earlier:Was done using the Excel sheet

Problems rising:Waste of time.

Solution: MS Access programming

CUSTOMER DATABASE

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Time management

Easilyidentifywho has collected/

not collected

Can access it for future purposes

ADVANTAGES

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Software used:

Wisco Survey

Power

SURVEY

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RESULTS OF THE SURVEY

CONDUCTED

FOR OVER

110 PEOPLE

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CRM Analysis

45

48

53

0

10

20

30

40

50

60

NO. OF PEOPLE

Not Satisf ied Neutral Satisfied Very satisf ied

OVERALL QUALITY

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14

21

53

22

0

10

20

30

40

50

60

NO. OF PEOPLE

Not Satisf ied Neutral Satisfied Very satisf ied

VALUE FOR MONEY

CRM Analysis

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PURCHASE

14%

47%

39%

First time

Few months

For over a year

CRM Analysis

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HUGGIES VS. DIAPERS

52

31

22

2 2

0

10

20

30

40

50

60

Much better Somew hat better About the same Somew hat w orse Much w orse

NO.OFPEOPLE

CRM Analysis

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HUGGI TY

76

14

9 10

38

0

10

20

30

40

50

60

70

80

Huggi

t

(Blue)14.95/- Huggies Freedom(Green)28-30/- Huggies

ull U

s Huggies Goodnites Huggies Wi

es

.

CRM Analysis

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RECOMMENDATION

95

11

4

0

10

20

30

40

50

60

70

80

90

100

Definitely will ot sure Definitely will not

NO.OF

EOPLE

CRM Analysis

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Expand Huggies market market availabilityis less

Impulse buying was one of the main points noticed

Wipes Unscented

NeedBigger packs price slightlyon the higher

Range

Come up with exciting offers

Free samples

Recommendations

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Increase the absorption Shortcoming

seen in STEPS

Sticker on the diapers creates marks on

the baby

Recommendations

ADDITIONAL PACKAGE TO

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HTML EMAIL

Software used:

Outlook Express

ADDITIONAL PACKAGE TO

THE CRM PROJECT

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NESTLE DIVISIONCOMPETITOR ACTIVITIES FOR

NESTLE AND SUGGESTIONS

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Market share of Nestle products

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Nido milk powderNescafe coffee powder

Cerelac

Break fast cereals

Confectionary

Maggie sauce

Sweet condensed milk

coconut milk powder

Maggie 2m noodles

Maggie soups

Maggie powder

Maggie stock

Cream

***NOTE :- These market shares are estimated byvisiting around 50

super markets all over U.A.E, talking with the merchandisers and

taking an average of all the data

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COMPETITOR ACTIVITIES


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MAIN COMPETITORS FOR

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NESTLE

Nido:Anchor, Coast, OldenBurger, Rainbow,Sharjah Co-operative Milk Powder, Co-op InstantMilk Powder

Nescafe:Najjar, Rio, Tasters Choice,Bru Instant,Maxwell House

Cerelac: Farleys, S26 Gold, S26 AR, S26 LF,

Hero, Aptamil Confectionary: Mars, Cadbury, Ferorro Rocher,Bounty, Snickers

Maggi Sauce: Kimball, Heinz, Kissan, Hunts,American Garden, Natural Sauce, HP, Lea &Perrins

Cream: Puck Cream, Al Al Ali Cream, Co-op Cream,Unikai Cream

CMP: Santan, Herco

Maggi 2M Noodles: Indomie, Koka, Fantastic,Mamee, Supercup Noodles

Recommendation for Nido Milk

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Powder

Increase in the price of Nido M.P. by5% effectivefrom 1st August 2003

Even Nidos main competitor Anchor hasincreased its price by5% because of the strategyfollowed bynido being a brand leader

It is going to be an advantage for anchor becauseanchors distributors (New zealand diary) hasverygood budget to promote anchor since thisproduct is direct distribution from the principalitself

Anchor has been promoting the product

continuously

for 4y

ears Nido should maintain consistencyin price issue so

that it wouldnt be giving a chance for itscompetitors like Anchor to take advantage overit

Recommendation for Maggi Sauce

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Recommendation for Maggi Sauce

Particularly

Maggi sauce is very

slow movingamong nestle products when compared to the

competitors like kimball

Cost is the main factor involved

0%

10%

20%

30%

40%

50%

60%

maggi

kimball

Recommendation for Maggi

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Recommendation for Maggi

Sauce

Kimball has a market share of around

60%

To attack kimball and capture the marketpromotions like 10% off,20% off,10% more,

20% more,maggi sauce promotion along with

maggi powder offer,buy3 get 1 free should

help

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Recommendation for Nestle

products

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products

Break fast cereals

To attack kelloggs and capture themarket to some extent , portion packs canbe supplied to the offices i.e., drysampling

can be done Bydoing this the customers can use the

product during break time, tea timeor evenduring working hours

This becomes a habit for them slowlyand

theyget used to the product and get toknow about the feel and qualityof theproduct

The market share and sales can be rapidlyincreased in this way

Suggestions for Nestle products

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Break fast cereals

Different kinds of PROMOTIONS

that can be done for nestle

1)B

owl free Crunch cereals

30g free

4)10% free,20% free offers 3)Pointof sales mt


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confectionary

Mars is the brand leader in

confectionarywith a market share of

around 55% Nestle is competing with mars

Confectionaryitems are veryfast moving

goods

Displayof these confectionaryitems incheck out stands which is known as

impulse goods increases the chance to

capture the market and to become the

brand leader

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Conclusion

I Hope that this project which has been

done will help the companyin improving

their sales

This project which is involved with all

the data collected about the competitor

activities for nestle which will be veryuseful for maintaining a level always

better than the competitors

E E E T

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ACKNOWLEDGEMENTS

Our sincere thanks to:Mr. Chandrasekar General Manager

Mr. Vincent DSouza Trade Marketing Manager

Mr. V. L.Bhatia Logistics Manager

Mr. Shirin Manger, Nestle Division

Mr. Sharath Babu Business Development

Manager

Mr. Denzil SupplyChain CoordinatorMr. Nair IS Manager

Mr. Mustafa Stock Manager

Ms. Amila HR Manager

Mr. Divakaran Central Finance Manager

Ms. Deepa Market Analyst

Mr. Sarfaraz Market Analyst

Mr. Unni Nestle Field Sales Manager

Prof. Ramachandran Dean,BITS Pilani Dubai Centre

Ms. Sujala Shetty PS Faculty

Mr. Calvin King PS Coordinator

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THANK YOU