virgin water-1.ppt

7/28/2019 Virgin Water-1.ppt

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VIRGIN WATER

SUPPLY CHAIN

Deepak Pathania

Oshioke Samuel

Fotima Saydullaeva


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INDEX Introduction

Manufacturing Process

Market & Consumption of Bottled Water in Poland

OPERATIONS & CERTIFICATIONS

VIRGIN WATER PACKAGING

PLACE STRATEGY

DRAFT CAPACITIES

SUPPLIES

Purchases - external flow

Suppliers of Services / Materials

Production - internal flow

Sales & Distribution

Proposed Model Sales & Distribution

Order Processing

Transportation & Storage

Networking

Customer Supply Chain

Suppliers Relationships

Summary of Overall Production

Production Layout


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INTRODUCTION

This proposed company presents an opportunity for

establishing a bottled water plant for providing pure

drinking water.

The proposed product line will consist of bottles of

1.5 and 0.5 liters.

In the initial phase of the company only 0.5 liters

and 1.5 liters bottles will be introduced in the local

market.

After successful introduction of the new brand of

bottled water the product line may be extended to

13 and 19 liters cans.


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MARKET & CONSUMPTIONOF BOTTLED WATERIN

POLAND

Bottled water makes up 41.1 percent of soft drinks market in Polandand is the second biggest after fizzy drinks, whose turnover in 2009amounted to over 2.5 billion zloty (0.6 billion euro).

the sale of bottled water in Poland is constantly on the rise - in 2009it increased by 9.1 percent - the consumption of bottled water in

Poland is still low in comparison with other EU countries. Polandcomes only 14th in the European ranking of water consumption. Anaverage Pole drinks 66-75 approx liters of water per year, while inItaly that number amounts to 197 liters.

As per 2011 survey around 110 litres in the Czech Republic, around122 litres in Germany, and 84 litres in Slovakia. This gap seems tosuggest there is considerable room for growth.

The anticipated growth in awareness of the importance of regularwater consumption will be a key factor demand for bottled water.


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OPERATIONS & CERTIFICATIONSOPERATIONS

The plant can bottle 1 gallon = 3.79 Ltr 15,000 Gallons of water per

day, the size of bottles will be 1.5 Lt and 0.5 Lt to make the waterconvenient and attractive to end users. The sale at 100% capacityutilization is Rs 209 Million. The plant would be set up in threefamous cities Warsaw, Krakow & Gdansk where all the requiredinfrastructure and amenities will be available.

Certifications:

QUALITY

92 % Manufacturing Facilities ISO 9001 (2000 version) or FDAcertified

SAFETY

92% Manufacturing Facilities OHSAS 18000 or VPP certified ENVIRONMENT

92% Manufacturing Facilities ISO 14000 certified


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OPERATIONS


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VIRGIN WATER PACKAGING

Bottled Water Packaging Consists of:

bottle made of plastic

screw cap (Plastic Cap & Metal Cap)

2 labels (front and back) For Gas Water & VitaminWater


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PLACE STRATEGY

Virgin water will capture the local market and future

Europe markets. The European market has many

customers for daily use products the virgin water

company decision will be to set the factory in the

easy location that is - Central Europe -Poland.

Place Strategy also includes the area of role

masteries "channel of distribution" - meaning, all

the different middlemen and how the company will

get the product out to the customer. The main transportation means are trucks and it is

easy and cheap to deliver the product to all

European countries in future.


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DRAFT CAPACITIES To plan the right amount of space in stock, number of

pallets/trucks and the frequency of deliveries we need toknow:

How much and how fast we can produce?

Haw many raw materials do we need to produce an exact

batch of a shampoo?

With the draft capacities we will be able to plan ahead theshipments of materials and the outflows of finished products.We will also know how much do we need to stock. It will allow

us to produce more effectively and lower thetransportation/warehouse costs.


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SUPPLIESThe supplies are divided into following groups:Table 1 Supplies - main division


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THELONG-TERMSUPPLIESPLANNINGWILLBEMADEIN 2 MONTHSADVANCE

THAT GIVES TIME TO DELIVER SUPPLIES OF CHEMICALS/LIQUID VITAMINS

FROMTHEINTERNATIONALSUPPLIERS.


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PURCHASES - EXTERNALFLOW

In virgin water the following purchases will be made:

raw materials, packaging materials,

chemical reagents,

services related to the production process,

service, equipment,

personal protection equipment, transport,

training,

Consultations.

All purchases made in virgin water meet the quality requirements,environmental, safety and hygiene requirements set by the virgin waterGroup. All purchases are also being verified.


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SUPPLIERSOF SERVICES / MATERIALS


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PRODUCTION - INTERNALFLOW

From ramp to warehouse flow

The internal flow of materials inside the factory will

starts when the warehouse workers unload the

suppliers from trucks. The materials will be

receipted to the system.


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SALES & DISTRIBUTION

Distribution For Distribution Virgin Water Company will

tie with 3PL logistics services and will deliver products to

wholesalers as per their demand.


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PROPOSED MODEL SALES & DISTRIBUTION

We are proposing two models one is selling huge

orders directly from our external warehouse in this

way they will save money on buy finished products

and will get the bottles at production price.

Another model is 3PL Logistics they will make a

request and we will be delivered at their door steps

but will include transportation cost.


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ORDER PROCESSING

Above diagram show Processing in order

To control the information flow between all the nodes we are going

to use ERP system - SAP. It provides easy and instant contact

between them. The SAP system is used for production planningand internal stock monitoring.


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TRANSPORTATION & STORAGE


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NETWORKING


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SUPPLIERS RELATIONSHIP


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Summary of OverallProduction


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Summary of Overall Production


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RECEPTIONSOF MONTHLY PRODUCTION


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DAILY PRODUCTION


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DAILY PRODUCTIONONTHEBASISOF

BOTTLES & WATER


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PRODUCTION LINE


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PALLETS & CASES CALCULATIONS


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PALLETS CALCULATIONSON TOTAL

PRODUCTION DAILY BASIS


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PRODUCTION CAPACITYAND CALCULATIONS

ON TRUCKS


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DISPATCHES


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MANUFACTURING PROCESS


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THANKS

virgin water-1.ppt

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