SUPPLY CHAIN STRUCTURE OF BERGER PAINTS PVT LTD

Name: S. M. ABBAS SHAH Reg #: 8080 Program: MBA (Evening) Course: Suppl C!ain Managemen" Su#mi""e$ "o: Sir A$nan S!a!%a$ &a"e: '( )*"o#er '0+0

Main Ci" Re"ailers

Provisional Re"ailers

&is"ri*" Pro0e*"s ,ns"i"u"e ,n$us"r

&,S-R,C- .AREH)/SES

CEN-RA1 .AREH)/SE 2ARACH,

MAN/3AC-/R,N4 P1AN-5 2ARACH,

S-)RE

PR)CR/-MEN-

S/PP1,ERS

,MP)R-E& S/PP1,ERS 607

1)CA1 S/PP1,ERS 807

1) ,n$us"rial Pro$u*"s: are customized products for other businesses (B2B Clients) e.g. Honda(Car) Pakistan !amaha " #! $apda etc. and are also included in the %orecast but their base material is customized. &hese include Ber'Coat ()i'Plast *att %inish +to,en Paints. 2) &e*ora"ive Pro$u*"s: are those products -hich are used in homes

3lo9 o: )r$ers:
Berger distributes it self to retailers throughout Pakistan b. a mechanized (rder flostructure &e*ora"ion: $arehouse' (rder Place Purchase #ocument (P#P) (B.(.*) /ab01eference %iles Production +chedule. ,n$us"rial: 1egional (ffice or $arehouse &echnical #epartment /ab 1eference Purchase (rder (P() $arehouse +tore Production +chedule.

Regional )::i*e or .are!ouse

.are!ouse; )r$er Pla*e

-e*!ni*al &epar"men" Pur*!ase &o*umen" (P&P) (B.).M)

1a# Re:eren*e Pur*!ase )r$er (P)) .are!ouse

1a#<Re:eren*e 3iles S"ore

Pro$u*"ion S*!e$ule

Pro$u*"ion S*!e$ule

Pro*uremen"
)vervie9:
&otal 2o. of *aterials 3 2455 different materials 6,erage 7mported *aterials 3 859 (i.e. 1455 materials) *ost important and :)pensi,e *aterial 3 &itanium #i'()ide (&i(2) Purpose 3 6dds durabilit. to the products. (onl. used b. Berger and 7C7)

;sage 3 255 ton0month :conomic (rder <uantit. (:(<) 3 855 tons Price 3 =25550ton

MRP<MPS<ERP
Mas"er pro$u*"ion s*!e$uling (MPS)
&he ob>ecti,es of this module are to help Berger Pakistan to anticipate shortage before its occur (current stock purchasing order manufacturing order ? sales order) these acti,ities creates a pro>ection of .our stock le,els an.-here from a -eek to se,eral .ears in ad,ance through this .ou can easil. highlights .our shortage in red and e)cess in green. #rill do-n in an. item to anal.sis of stock acti,it. through *P+ .ou can easil. see -hat e)actl. the shortage -ill appear if -e e)ecute the specific production plan.

Ma"erial Re=uiremen" Planning

*1P ser,e as a bridge bet-een the master production schedule and real purchase order and manufacturing order. *1P sho-s -hich item ha,e to purchase in -hat @uantit. and -hen the order should be placed so that the re@uired material -ill arri,e >ust in time.

Pro*uremen" Pro*ess:
+) 3ore*as"e$ Pro*uremen": 6s sales are forecasted for the ne)t upcoming three months and consistent changes are made for the de,iations created in the market due to an. factor.(e.g. if -e are standing at 2o,ember 2558 -e -ill forecast for %ebuar. 255A) +o procurement planning is also made for the ne)t three months as 859 of ramaterials are imported and onl. B59 are locall. ac@uired so the lead time is:

*aterials

7mported

/ocall. Procured /ead &ime: 15 ' 14 da.s

/ead &ime: A5' F5 da.s

C1esinD one another important material -hich is ' ' ' used in bulk @uantit. a,ailabilit. of it is ,er. unfre@uented 6nd profit margin is sometimes ,er. high.

&herefore the. manufacture themsel,es. ') Bill ): Ma"erial (B.).M.) >) ?uer ing Sour*es o: Suppliers o: Ra9 Ma"erial +ample of ra- material is ac@uired from the suppliers and tested for @ualit. assurance that it is up'to the mark. #efects are checked till the ra- material is consumed and final product is made and usuall. no defects are found as Certificate of 6nal.sis is made b. the Procurement and the /aborator. (E <CC) departments. 8) Pri*e Nego"ia"ion () Per:orma ,nvoi*e is *alle$ 6) Pur*!ase )r$er is pla*e$

@) Es"a#lis! 1e""er o: Cre$i" (1.C.) 8) Revival an$ Re*over o: )riginal &o*umen"s: ' ' ' ' Bill of /ading 7n,oice Cer"i:i*a"e o: Anal sis (Con:irms no $evia"ion in or$er) /etter of Credit

A) Clearing Agen"s +0) &eliver an$ Possession o: Ma"erial ++) 4oo$ Re*eip" No"e

BergerBs ?uali" Poli*

Manu:a*"uring
)vervie9:
*a)imum Capacit.: 115 555 liters0da. (1555 Gg per da..) %orecast: H H55 555 liters0month 6ctual Capacit.: 2 455 55502 855 555 per *onth

4eneral Manu:a*"uring Pro*ess: - pes o: Pro$u*"s:

Pro$u*"s

.a"erBase$

Soli$s e.g. Po-der Paints 1ea$ -ime: 8 ; ( $a s

1ea$ -ime: +.( $a

Ba"*! Si%es:
(6ctuall. done in $eights as 1a- material is charged in -eights but the output is in usuall. in the form of /i@uid through +tandardized %ormulae) 255 litres smallest batch sizes then B55 litres and so onI. 7f there is an order of H55 litres of industrial product (P0() then the production department asks the clients to go for 255 litre or B55 litre or see other orders of same specifications to produce combine. Brie: Manu:a*"uring Pro*esses: 1) Ma"erial A*=uisi"ion :rom S"ore: +tore is controlled b. the Procurement #epartment. 6n. material re@uired b. production #epartment is read. after ma) 2B hours. 6s this store issues ra- material from the -arehouse -hich orders ramaterial of H months ahead b. the forecast created and appro,ed b. the sales department. :.g. if standing in 2o,ember the forecast -ill be appro,ed for %ebuar. and the *aterial Procurement process -ill come into action. 2ote: &he dail. de,iations are also reported to all the departments as an. ne- e)tra or out of ordinar. orders are placed. 2) C!arging: it is the phase of production in -hich the ra- materials are inputted into machines as there are man. t.pes of ra- materials and are in bulk @uantities keeping in mind the e)act standardized @uantit. of ra- material to achie,e consistent @ualit. and performance of the product. H) 4rin$ing: Jrinding the ra- material of solid form and mi)ing of li@uid ramaterial -ith it. 6fter this process the output is in the form of paste and this similar to the base material. B) MiCing: after grinding ra- materials are mi)ed.

4) 3inis!ing: 1a- materials for the durabilit. bonding and glossiness of the paint are added. 8) Colour Ma"*!ing: Colour is added and checked according to the specified standards and according to the ordered re@uirement. A) ?uali" C!e*D (?.C): the @ualit. of the product is checked in all terms and respects including colour shine bonding base material dr.ing procedures dr.ing time etc. K) 3iling: &he (rders for the filling packs or tins are gi,en at the time -hen production +chedule is made so b. the time manufacturing is completed the empt. packs and tins are read. and a,ailable from the supplier. %iling of 7ndustrial Products of 2555 " 4555 liters takes one da.. 6nd filling of #ecorati,e products of 2555 " K555 liters a da.. F) Prin"ing: 7nk Let printing is used to print each tin or packets. 6 single packet or tin takes 1 min for printing. 15) S"oring: all the finished goods after packing and printing are stored in the -arehouse -hich is situated -ithin the premises of Berger Pakistan +.7.&.:.

Orders (olour Matching ) *ualit' (ontrol (+-, da's)

(ontainer Di.. (Tins) Tin Preparation %illing (& da') #nk $et Printing Grinding (5-6 hours) *ualit' (ontrol tore (%inish Goods)

PDP (B.O.M.) Production Planning tore (!a" Material) (harging (&-+ hours)

Tanks (Large Batch)

Pots ( -all Batch)

Bo""lene*Ds:
+) 4rin$ing ') Colour Ma"*!ing >) ?uali" Con"rol

1)4,S-,CS
.are!ouse E &is"ri#u"ion
6s paint is a product that is ,er. sensiti,e to seasonal conditions that is -h. -arehousing should be according to the specific needs that are re@uired to store particular t.pe of paint .6s for plastic emulsion it can be stored at room temperature that should not e)ceed 2A degree centigrade on the other hand for sto,ing paint that is particularl. for automoti,es air conditioning is also re@uired. +o Berger paints has state of the art -arehouses that are completel. 1CC structured as -ell as some -arehouses are e@uipped -ith air conditioners.

*anufacturing

Garachi Central $arehouse

/ahore $arehouse

7slamabad $arehouse

*ultan $arehouse

%aislabad $arehouse

Ju>ran-ala $arehouse

)"!ers .are!ouses <uetta H.derabad Pesha-ar 1a-alpindi

&he. ha,e different -arehouses in Pakistan and Garachi -arehouse -orks as a central -arehouse through -hich others -arehouses (rders are catered -hich is located right besides the manufacturing plant in Garachi.

Berger Pakistan has its o-n net-ork of distribution the. directl. supplies to its retailers through their abo,e 15 -arehouses and from retailers it reaches to the final consumers.