Distribution Management of Yakult

Abegail G. Gabiano
BSBA-MM4B

1.0

Key components of distribution and logistics

Storage and warehousing and materials handling

-LOCATION OF WAREHOUSE: Yakult is delivered directly to the warehouse
of major supermarkets. (ex. Puregold, SM Supermarkets, Robinsons Markets)
-TYPE OF STORAGE: Cold room, Refrigerated room
-MATERIALS HANDLING EQUIPMENT: Machine used to store the product,
from bottle storage to filling and packaging Machine to Refrigerator room to
Delivery.

Packaging and Unitization

-UNIT LOAD:
-PROTECTIVE PACKAGING: Capped with foil lid, printed with a used date,
sealed and transferred along conveyor belt.
-HANDLING SYSTEM:

Inventory
-What to stock? Yakult Products.
-Where to stock? Yakult need to be stored at cold areas with the
temperature of below 4 degree celcus.
-How much to stock? Estimated production per day ranging from 288,000300,000 pcs.

Transport
-Mode of Transport: 14 days delivery
-Type of delivery Operation: By Land. Vehicle used Refrigerated truck.
-Load Planning: A list of load to be shipped in each designated location
-Route Schedule: Route scheduler do the task to look for easiest ways or
efficient delivery schedule.

Information and Control

-Design of System: From cold room down to the Distributors up to the end
users.
-Forecasting: A time series model to monitor weekly sales of a product.

Physical flow of material from suppliers through to customers

YAKULT

Suppli

End
user.

The Raw
materials
needed
Distribution

Productio
n

Finished
goods

2.0

Logistics and the Supply Chain

2.1
Company plans
To contribute to the health and happiness of people around the world through the pursuit
of excellence in life sciences in general and our research and experience in microorganism in
particular YAKULT

2.1.1 Strategic
Aim to use its role as probiotics pioneer to expand its contribution in preventing
illness and dieses and rise the quality of life for people throughout the world.

2.1.2 Tactical
To established the principles of preventive medicine and used its extensive research
in probiotics to enhance the health of its customer.

2.1.3 Operational
Yakult is serve 60ML locally and they dont plan to produce huge size because Yakult
wants to reach out to everyone terms of pricing. they also want to maintain the
freshness of their product.
2.2

Integrated System

2.3
Competitors
Chamyto (nestle)

2.4
Position in the Market
Based on my opinion, Yakult is still number one in terms of probiotic yogart drink.

2.5
Category
Food Industry. (Food and Beverages)

3.0

Customer Service
3.1
Customer Service Policy

3.2

Levels of customer service

L
E
V
E
L
O
F
S
E
R
V
I
C
E

7
6
5
4
3
2
1
0
60

70

80

90

100

COST OF
SERVICE
3.3
4.0

How customer service is measured

Channel of Distribution
4.1
Channel Objective
4.2
Channel Option
4.3
Channel Characteristics
4.4
Market Characteristics
4.5
Product Characteristics
4.6
Competitive Characteristics
4.7
Company Characteristics
4.8
Channel Structure

5.0

Key Issues and Challenges for Logistics

5.1
The external environment
-Its the waste management strategies. In Yakult they do recycling of Paper products and
Plastic waste- 99% of their raw ingredients being utilized.
-

5.2

Manufacturing and Supply

5.3
Distribution
-Warehouse System: Yakult delivered directly to the warehouse of major supermarkets.
-Direct delivery System: Yakult delivered to their Independent Suppliers, Supermarkets, and
Food Stores.
5.4
Retailing
-Through groceries stores and house to house sale (Yakult Lady)
5.5
The consumers
-Age Friendly
6.0

Framework for Logistics

6.1
Product Characteristics
- A unique Plastic bottle, capped with foil lid, printed with a use-by-date sealed.
6.1.1 Volume to weight

- blat of Yakult per truck

6.1.2 Value to weight
- refrigerated truck. Avoid direct contact to heat.
6.1.3 Substitutability
- You can use DutchMil for delivery.
6.1.4 High-Risk Products
-Perishable (Refrigerated Storage needed)
-Time Contained (Best before date)
6.2

Product life cycle

Series 1
100%
90%
80%
70%
60%

Series 1

50%
40%
30%
20%
10%
0%
introductory Stage

Growth Stage

6.3

Packaging

6.4

Unit Loads

Maturity Stage

7.0

Logistics Processes
7.1
Key logistics processes
7.2
Tools and Techniques

8.0

Supply Chain Segmentation

8.1
Product Segmentation
8.2
Market Segmentation

9.0

Cost Relationship
9.1
Number of Depots and Costs Involved
9.2
Total Logistic costs
9.3
Primary Transport Costs

9.4
9.5
9.6
9.7
1.0

Inventory holding costs

Storage Costs
System costs
Local delivery costs

Logistics Management and Organization

10.1 Organizational Structure
10.2 Payment Schemes
10.3 Staff and Assets