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North South University

Center of Excellence in Higher Education


Report On
Fresh Mineral Water

Date of Submission: 13th December, 2018


MGT 314, Section- 17

Submitted By: Submitted To:


Arfatul Islam #1620756030 Wasif Sayed Choudhury
Abrar Rahman #1610267030 Lecturer, Department of Management
Pranto Karmokar #1610267030 North South University
Lutful Karim #1531155630
Mahmud Islam Shuvo #1511456030

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Executive Summary

Meghna Group of Industries is among the largest conglomerates of Bangladesh. With footprints
in more than forty-five industries, Meghna Group of Industries has some of nation’s very well-
known and well reputed brands under its umbrella brand Fresh. Products of this company
includes food, chemicals, edible oil, steel, feeds, packaging and many more.

We were appointed in the IT Department of MGI. IT office assumes essential job in an effective
business is productivity, and the capacity to computerize routine assignments is an extraordinary
method to expand by and large effectiveness. All things considered, the IT office is in charge of
giving the framework to this computerization. To achieve its vision MGI gradually change their
traditional system to upgrading system. Though it is quite difficult to adapt the new system
among the employee, they should train them in where they are lack behind.

We had built up our investigation issues and prospects of Super Fresh Mineral Drinking Water as
per our venture rule. With the end goal of the examination important information were gathered
from the essential and auxiliary sources. The essential sources include: Face to confront meet
with authorities and Expert individual and the auxiliary sources include: Office records, Relevant
papers, books, diary and different investigation reports.

Here we created operational administration, production network Management, Process


delineate, the executives, quality administration. Overly Fresh mineral water getting to be
number one mineral water in Bangladesh because of solid administration of the organization. An
entire hover about store network and esteem conveyance organize has turned out in this report.

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Table of Content

Contents
Industry Analysis 3

Company Overview 6

Operational Analysis- 10
Productivity and competitiveness (cycle
time)

Supply Chain Management 11

Process Layout & Mapping 12

Quality Management 15

Inventory Management 17

Recommendation 19

Conclusion 20

References 21

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Industry Analysis
PESTEL Analysis:
PESTEL stands for Political, Economic, Social, Technological, Environmental, Legal factors.
PESTEL Analysis is a measurement tool which is used to assess markets for a particular product
or a business at a given time frame. With using PESTEL analysis we can unearth and record the
various factors in these categories that may have impact on Fresh Mineral Water.

Political factor:

●Tariff Rate: It has a great impact on some raw materials used for manufacturing goods which
imports from other countries. The product price will increase because for imposing tariff rate on
raw materials.
Unstable Government Structure: Rise of political instability have impact on production
transportation of finished goods, transportation of raw materials.
●Unstable laws: In perspective of Bangladesh, law frequently changes that effect Fresh
Mineral Water production ability. For example Working hour for labor, Minimum wage rate.

Economical factor:

●Unemployment Rate: Our country is large populated country. There are more employees
than the actual demand. So, scarcity of employee is hardly a matter of issue in our country.
●Cheap Labor: Because of having lower labor cost many industries helps companies to hire
more labor with lower labor cost.
Financial Structure: being one of the largest companies in our country Fresh has large scale
financial structure so that they can expand their production plant at any time at any place.

Social Factor:

●Developing Trends: Continuously developing the present trend helps company to


get newer ideas for the company.

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●Buying Trends: Buyer changing tendency helps Fresh to regularly grow itself in
the market.

●Population Growth Rate: Population increasing specially in the teen agers


automatically creates more demand for Fresh.

Technological Trends:

●Technological advancement: Having newer technology in manufacturing process


can produce more products than the other company.

●Computerized testing of product: Using with Computerized testing help Fresh


to get accurate product in every batch.

●Modern Machines: Having the modern machineries in production reduces the cost
of whole production and the number of labor also.

Environmental Factors:

●Sustainable Company: Supportable organization is known as Green Company,


which implies it has least negative effect on earth. New reuse their wastages totally
and furthermore deal with toxic synthetic substances which are unsafe for our
condition.

●Doing Business as an Ethical: Ethics concern an individual's moral judgements


about right and wrong. From beginning, Fresh make sure their product quality and
make sure their products and machineries are environmental friendly.
Pollution target: They use steam for heating. Which reduce the amount of Co2
release in our environment.

Legal Factors:

●Health and safety: fresh mineral water is health and safe to drink. It is also ISO
certified 9001.

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●Consumer Rights and Laws: Fresh is very much sincere about their consumer
rights. If there is any problem with the product they are well aware about return of
goods. For example- return of expired products.

●Advertising Standards: Fresh avoids advertising specific product/brand in


respective with competitors and they also don’t broadcast any stuffs which will
create hype in society.

POLITICAL ECONOMIC
TARRIF RATE UNEMPLOYMENT
RATE

UNSTABLE
UNSTABLE LA CHEAP
GOVERNMENT FINANCIAL
WS LABOR
FACTORS STRUCTURE

UNSTABLE
GOVERNMENT
STRUCTURE

SOCIAL DEVELOPING TECHNOLOGICAL TECHNOLGICAL


TRENDS ADVANCEMENT

BUYING POPULATION COMPUTERIZED


TESTING OF MODERN
PATTERNS GROWTH RATE
PRODUCT MACHINE

ENVIRONMENTAL SUSTAINABLE LEGAL HEALTH &


COMPANY SAFETY

POLLUTION EQUAL CONSUMER


ETHICAL`
TARGET OPPORTUNITIES RIGHTS & LAWS

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Overview of Meghna Group of Industries
Meghna Group of Industries (MGI) is one of the biggest & leading parent company of Bangladesh.
With a turnover of USD 3 billion & asset of USD 1 billion. MGI is currently operating in 45
Industries with more than 30000 workforces, 3000 distributors & 1000 suppliers under its
umbrella.
Meghna Group of Industries has wide range of customer goods under the umbrella brand Fresh.
Fresh symbolizes freshness, purity, quality and trust. Fresh is committed to quality compliance
and serving customers at affordable price. Products under the 'Fresh' Brand are - Full Cream Milk
Powder, Soyabean Oil, Mineral Water, Sugar, Flour, Spices (Chili, Turmeric, Coriander and
Cumin Powder), Tea, Iodized Salt, Palm Oil, Mustard Oil, Cement and Feeds.

Fresh Drinking Water


Super Fresh Drinking Water is popular and the market leader among the drinking water brands in
Bangladesh. It is clear, transparent, free from micro-organisms and refined in seven step of
purification process as De-Iron, Pre-Ozone, De-Odor, Softening, Reverse Osmosis, Ultraviolet
Treatment and Ozonation using 3 steps of refining process by Prominent Germany. Hygiene
practice is continued in every step of our purifying process. So, Super Fresh Drinking Water is
safest, reenergizing, refreshing, trendy and suitable for human body.

In February, 2013, a new brand of water "No.1 Drinking Water" also was announced to the market
to cater the popular sector.

In Meghna Group of Industries, Super Fresh Drinking water is the Number one drinking water.
The plant capacity has almost 172,800,000 liters per year. 3 steps of refining process is done by
Prominent Germany. Sources of Raw Materials: Artesian Water, Chips for Bottles from Korea,
Thailand & Saudi Arabia.

It got 2nd “Best Brand Award” in 2013. The number of consumers are corporate, institution, Hotel
& Resort and Organization & Household.

“Safest to Restart” is the brand promise of this company.

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Mission & Vision

The Mission of MGI as a private sector investor is to encourage industrial entrepreneurship in


the nation by enhancing open segment through new and inventive business thought and along
these lines to improve pace of industrialization towards a substantial financial development of
Bangladesh.
.
The Vision of MGI is to end up a main modern meeting of the nation starving to make
Bangladesh independent in delivering different customer and industrial goods. MGI is
additionally searches for turning into a market pioneer in issues of value items and fulfillment of
clients through focused costs and services.

Company Organogram

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8
Process Layout & Mapping
Required
Buyer/ Necessary Advance Required raw Materi No Place order
labor and
Distribut Paper work Payment materials als for raw
machinery
or Places done done check enoug materials
check h
order

Yes

No Start Supply Allocate


Dump the Quality
good producing materials of materials to
rejected
enough bottles bottle into designated
goods
machines departments

Yes

Mixing up
Start Store the Start filling
Start refining formulas &
vaccinating purified up the
water chemicals
the goods Water bottles
with water

Send the
Goods going Yes Finished
finished Store the All Imprinting
through goods going
goods to finished Good manufacture Start labeling
packaging through
Buyer/Distrib goods ? &expiry date
process quality check
utor No
OO

Dump them

Distributor to Whole seller Retailer to Receive9the


Whole seller to Retailer Consumers full
payment
Suggested Process Mapping

Buyer/ Required
Necessary Advance Required raw Materi No Place order
Distribut labor and
Paper work Payment materials als for raw
or Places machinery enoug
done done check materials
check h
order

Check for Place order


Yes latest for latest
chemicals minerals and
Supply Allocate and formulas formulas
No Start
Dump the Quality
good producing materials of materials to
rejected
enough bottles bottle into designated
goods
machines departments Research on StoGoods
latest going
formulas for through
Yes
better quality
packaging
& cost
Mixing up process
effeciency
Start formulas & Store the Start filling re the
Start refining minerals and
vaccinating chemicals purified up the
water formulas in a
the goods with refined Water bottles
water safe
environment

Send
Goods going Yes Finished
theStore the Store the All Imprinting
through goods going
finished finished Good manufacture Start labeling
packaging through
goods goods ? &expiry date
process quality check
No
istributor OO

Dump them

Retailer to
Distributor to Whole seller Consumers Receive
Whole seller to Retailer Goods going theDump
through 10
them
packaging
process
Send the
finished
Inventory Management

Super Fresh Drinking Water is popular


and the market leader among the drinking
water brands in Bangladesh. Fresh does
its business in the form of B2B. It has its
own distributors that places orders
according to market demand. Fresh
produces and supplies goods to its
distributors which ultimately reaches to
consumers through whole sellers and
retailers.

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●Inventory Management System: Fresh uses Set Par Levels inventory system. Fresh is a brand
supplying various consumer goods for their mother-company Meghna Group of Industries. So,
they have their own products to be used as raw material for their other products which is a very
elegant and effective way to maintain cost and time efficiency and quality. Even though they have
their own goods from other branches, they still maintains a minimum level of inventory.

● Effective Inventory Management :


● Lead Time : Time interval between ordering and receiving the order. Fresh water
receives most of their raw materials from their own branches. So time between order placing and
receiving materials is very short. IN a short their lead time is very short.
● Holding Costs : They have their own storage for their raw materials. And so their Commented [AR1]:
holding cost such as rent, utilities and salaries is much lower. They use robots instead of human
labor for storing goods.
● Ordering Cost : Cost of ordering and receiving inventory. Receiving materials
from other industries of their own brand lets them reduce ordering cost. Even though EOQ also
does the same thing, Fresh doesn’t use EOQ.

Super Fresh Drinking Water is basically sold within the country region. After distributors place
orders and the necessary paper works being done Fresh collects its raw materials from the other
branches of its Mother company Meghna Group of Industries. The chemicals, formulas and
plastics for bottles are imported form other countries. Fresh uses safety stock to prevent hindsight
demands.

Fresh doesn’t maintain EOQ or EPQ as they are one of the most popular and leading brand in
Bangladesh. So, plenty of orders are always coming in.

● EOQ: Economic order quantity is the order quantity that minimizes the total holding costs and
ordering cost. EOQ applies only when demand for a product is constant over the year and each
new order is delivered in full when inventory reaches zero. As Fresh has constant order for all
around the year and every time new orders comes in they ask their suppliers for raw materials,
they should maintain a EOQ inventory system. Then again as their main suppliers are their own
branches of their mother company so cost is comparatively much lower than other
manufacturars.

Fresh Mineral Water Drinking water should be supplied with latest inventories because every
now and then there’s a change in formulas and mixing up minerals for better quality. Though
they have their lab for researches but with latest inventories their product would be of better
quality which would ultimately increase their sales level. They also doesn’t go with physical
inventory count. Perpetual inventory system fits the description just fine. So it would be
beneficial for Fresh if they maintain perpetual inventory system.

Quality Management
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In general, quality management is based on
the ability of the product or service to
continuously meet or exceed what the
customer is expecting. The quality is likely
to be handled by the managers who are
working in the organization. In the current
scenario the customers does not really care
about the cost of the product, rather they
care about how much good or better the
quality of the product is. If an organization
is able to maintain its product or service than
they will be able to achieve their goal
success.

The brand name Fresh, under which the greater part of MGI's items are accessible in the market,
guarantees to the buyers Purity, Quality, Trust and Freshness consistently. Fresh Drinking Water
is mainstream and the market pioneer among the drinking water marks in Bangladesh.

 Assuring the quality of the product

It is clear, straightforward, free from microorganisms and refined in seven phase of purging
procedure as De-Iron, Pre-Ozone, De-Odor, Softening, Reverse Osmosis, Ultraviolet Treatment
and Ozonation. Cleanliness practice is kept up in each progression of our refining procedure. In
this way, Super Fresh Drinking Water is most secure, reenergizing, reviving, in vogue and
appropriate for human body.

 Upgrading the quality by introducing by introducing a new product

In February, 2013, another brand of water "No.1 Drinking Water" additionally was acquainted
with the market to provide food the prominent portion. Meghna Group of Industries is a
purchaser centered organization and has set another standard since its rise.

 Availability of the product in every places

The organization is occupied with delivering brilliant mineral water and serves this to as
conceivable as 6 divisions of Bangladesh To a season trekker, the way is never excessively
challenging. In light of this view, Fresh administration is wiling to accomplish the upper hand
through the broad showcasing of its item. As dispersion assumes a noteworthy job to showcase
the item, Fresh utilize possess circulation organize.

 Making sure that the cost is maintained in a sustainable manner

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They set the cost of the item as comparative as conceivable contrasting and different brands.
They endeavor to keep up the nature of Fresh on a par with conceivable. Hence they pursue
BSTI, Food and Nutrition Department of Dhaka University, and ICDDRB, WHO rules.

Ensuring the reliability of the product: Phosphate, Salt, Dextrose Monohydrate,


The quality guidelines of filtered water give Food grade colors and Flavors etc.
the most extreme legitimate points of
confinement to an assortment of substances
that are permitted in filtered water,
alongside their observing necessities. The
substances incorporate microbiological
contaminants, pesticides, inorganic
contaminants, natural contaminants,
radiological contaminants, and others.

Raw Materials: Treated Water, Refined


Sugar, Carbon dioxide, Citric Acid, Tri-
sodium Citrate, Sodium Benzoate, Ascorbic
Acid, Potassium sorbet, Mon potassium

Factory Uniqueness: Fully automated machine and State of Art technology with robotic
palletizing and complete production line set up at 1st floor to control the perfect hygiene level.
Apart from the equipment is energy efficient.
Product Uniqueness: Innovative product (Anger Management) along with 5 traditional drinks.
Source of Raw Materials: Asia and Europe
Distribution System: Factory to Depot/Distributor and Distributor to Retailer

Their operational management might be improved they can take on thoughtful steps

o Respond to Customer Complain: Because of having a lots of production channel, they


need some time to fix all customer complains for one particular product at the same time.
In order to avoid such kinds of concerns they have to ensure so that they give time to all
the complaints of the different products separately. By doing so they can solve the
customer complaints of each of the product individually, which might make them to get
rid of this error.

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Conclusion(Arafat): Overall it can be said that the quality of Fresh mineral water brand is much
more than any other brand. The ways in which it is developing its product, the manner in which
it is giving service to the customers and the kind of things they are putting up in order to set up
customer loyalty and most importantly than that the plans that they are making to ensure so that
more people are attracted towards their product we can be pretty sure that they will be probably
have the best quality management in terms of mineral water in Bangladesh.

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Operational Analysis-
Productivity and competitiveness(cycle time)
Productivity: Fresh mineral water is one of the best mineral water in the country. Its circulation
is pretty much big especially when it comes to selling in different places. The sky is not their
limit but the expectations that they make are so much as if they want to achieve much more.
They have a lot of respect for the country and the people of this country. They want to make sure
so that the people of this country can be served with the best possible product that they can
make. They consider enterprise as their life. There are about 119 mineral water companies in our
country. As of current most of them share a vital role in the country. Among all of the shares,
fresh holds a descent percentage of share. In order to help the production department, an office
has been set around the factory. It is watched over by a plant manager, who reports to the
production director in the office. After doing out a research it has been found out that Fresh
water has a very good reputation in the mineral water market. The product comes with 5 sizes
which consists of 250ml, 500ml, 1000ml, 2000ml, 5000ml which is greatly loved by the
customers. The productivity of the water is considered to be on top from pretty much all the
traders, institutions and customers. It can also be said that a particular brand plays a vital role in
the behavior of the customers i.e. Fresh Mineral drinking water. This is mainly due to the case
that it is reliable in achieving all the things that are needed in order to make the customer accept
what they have with them.

Fresh Mineral
Water

Introduction Stage Growth Stage Maturity Stage Declining Stage

Fig: Product life cycle of Fresh

Throughout the product life cycle, it can be easily noticed about the situation in which Fresh
mineral water is at the moment. When Fresh company first came to the market they were selling
the product in an identical price like their other competitors. But then they saw that they have
exponential gain in profit. This was because in the next few years they started to use raw
materials from their own brand. As they started to use their own raw materials the quality of the
products increased much more. So they began to sell them at a much cheaper price as their cost

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were minimized since they did have to bring the raw materials from other place unlike other
companies. As the price were cheaper the customers were attracted much more to the product
and the demand of the product increased even more. Hence their sales increased in the next two
years. After that the level of profit had also grown up marginally. By putting up all these things
together , we can say that Fresh mineral water is in the growth stage. If we take a look at the
graph we can understand the current position of Fresh Mineral Water. As fresh mineral water can
satisfy the market, hence they are in the growth stage where the price in which they are selling
the product in increasing quickly. In this type of situation, they know they have to grab the
opportunities in which they can be profited if they are able to grab onto them and they are also
facing new competitors. The competitors are trying to get their attention to the market by
introducing more pack sizes, different types of promotions, different pricing strategies. Fresh is
trying to make sure so that no matter what their competitor wants to do they follow what they are
good at and try to increase their demand to the customers much more instead of worrying about
the plan of their competetors. For this reason their market is expanding and this is the reason why
their productivity is so much different and so much unique despite having to put out with so
much competetions especially in terms of their mineral water business.

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Supply Chain Management

Fresh is a renowned manufacturing company with a various product line. Fresh mineral Drinking
Water is one of the most successful product line of Fresh. Their success is very much justified
because of their refined supply chain management and to meet the market demand with the
shortest period of time. Fresh having various product line are used as their suppliers which
make them maintain the top most quality.

Fresh Mineral Drinking Water production begins with the collection of raw materials from their
other branches and foreign suppliers. They collect plastics for bottle production from local
suppliers and minerals & chips for bottles from foreign suppliers. Fiber2Fashion suppliers from
Riyadh, Saudi Arabia supplies chips for bottles, TTC group of Thailand supplies natural mineral
water ingredients to Meghna Group of Industries. The rest of the raw materials are supplied
from United Mineral Water and PET Industries LTD.

Fresh works according to the demand of their distributors data. Distributors do market research
and let Fresh know about the current market demands. Fresh basically supplies their products
within the domestic region. Their main customers are out home consumers, Corporate,
Institutions, Hotel & Resorts, Hospitals. They also supply rejected goods and wastages to other
local companies for recycle purposes.

Once the order is placed they start allocating materials to designated departments which are
basically run by machines and robots. They maintain set par level inventory system . That mean
they maintain a high Inventory level. They supply finished goods according to distributors
demands and receive payments. Fresh has a number of distributors that places orders every now
and then. So their production never stops. But after completion of every batch they vaccinates
the entire area as well as the machineries for next production.

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Kraljic Matrix:

Kraljic Matrix is a key part of supply chain management to segment the vendor base. The Kraljic
Matrix is one of the most effective ways to deliver accurate supplier segmentation.

Leverage Item Strategic Item


High
 Skillful Engineers  Production Machine
 Robot  Formula & Chemicals
for mixing
Profit
Impact Routine Item Bottleneck Item

 Labeling for  Plastic for Bottles


Packaging
 Rubber chips for
 Office Supplies Bottles

Low Supply Risk High

According to Karljic Matrix, fresh Mineral Water suppliers are segmented in four categories based
on Financial Risk and Supply Risk. These are

● Bottleneck Item: Bottle item are those items where suppliers are few and supply risk higher.
But the price is lower and so the financial risk is lower. The bottleneck items for Fresh water are
plastic for bottle and Chips for bottle. The supplier of these products in domestic region is very
low. But the price of these items are much lower than other items that are needed for production.
Fresh Water collects their Plastics for bottle and Rubber Chips from the Middle East and Asian
countries Saudi Arab, South Korea etc.

● Routine Item: In routine item product and suppliers are available so supply risk and financial
risk both are lower here. For Fresh Water Labeling for Packaging and office supplies are routine
product. They collect it from the local market of Bangladesh. The number of suppliers for that
particular product is much higher and Fresh also has paper mill that supplies them with papers for
packaging.

● Leverage Item: In Leverage Item there are lots of product and also suppliers. But here supplier
risk lower and financial risk is higher. Using Robot in manufacturing and Skilful Engineers hires

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are the model of leverage item for Fresh. For robot, Fresh Water gather it from European
Companies and Skilful Engineers are elected form job market.

● Strategic Item: Where products are very rare and risk for suppliers or financial both are higher
here. For Fresh strategic items are Formulas and chemicals and high-tech robotics also. For Fresh
Water, Germany supply the required manufacturing machine and many European Countries supply
the formula and chemicals for mixing.

Supplier Relationship based on SAKO trust model: Fresh collects their raw
materials from local market, foreign parties as well as their other branches. So far their goodwill
trust with local companies is in unstable state because of their excess number of demand which
local companies find hard to meet with. Suppliers such as Fiber2Fashion, TTC Group, United
Minerals Water and PET Industries LTD are their savvy suppliers with whom they are dealing
with every now and then and maintain a very high goodwill trust.

TTC Group
Obligations Fiber2Fashion

United
Mineral
Water & PET
Industries
LTD

Local suppliers

Arms Length

Short Medium Long

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Recommendation

There is no doubt that Meghna Group of Industries is one of the leading company
in Bangladesh and fresh mineral water is one of their successful product. But there
are other competitors manufacturing mineral water showing product features &
processing in advertising, attractive packaging & distributing their products in rural
areas also. Also Inventory network the board in Meghna Group of Industries ought
to be drawn closer in a more deliberate way dependent on incorporated and
archived forms. The different store network parts like providers, producers,
distribution centers and stores ought to be coordinated in a solitary framework,
which makes production network the board progressively powerful.

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Conclusion

The report shows the supply chain analysis of MGI fresh mineral water. Production
network is fundamentally a gathering of autonomous associations associated
together through the items and administrations that they independently or together
include an incentive so as to convey them to the end buyer. It is especially an all-
encompassing idea of associations which enhances its items or administrations and
conveys them to its clients. There are numerous techniques in executing Supply
chain that can help the assembling organizations work with their SCM proficiently.
Other than that, great arranging, procedure, foundation and supervisory crews are
important to enhance the productivity of SCM usage and accomplish the upper
hands. From this report obviously Fresh Mineral Water execution could be
enhanced through successfully executes SCM and lessen the issues that happened
in the SCM usage.

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Reference

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