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Name: S. M. ABBAS SHAH Reg #: 8080 Program: MBA (Evening) Course: Supply Chain
Management Submitted to: Sir Adnan Shahzad Date: 25 October 2010
Main City Retailers
Provisional Retailers
DISTRICT WAREHOUSES
STORE
PROCRUTMENT
SUPPLIERS
Flow of Orders:
Berger distributes it self to retailers throughout Pakistan by a mechanized Order
flow structure Decoration: Warehouse- Order Place à Purchase Document (PDP) (B.O.M)
à Lab/Reference Files à Production Schedule. Industrial: Regional Office or
Warehouse à Technical Department à Lab Reference Purchase Order (PO) à Warehouse à
Store à Production Schedule.
Regional Office or Warehouse
WarehouseOrder Place
Store
Production Schedule
Production Schedule
Procurement
Overview:
Total No. of Materials = 2500 different materials Average Imported Materials = 60%
(i.e. 1500 materials) Most important and Expensive Material = Titanium Di-Oxide
(TiO2) Purpose = Adds durability to the products. (only used by Berger and ICI)
Usage = 200 ton/month Economic Order Quantity (EOQ) = 600 tons Price = $2000/ton
MRP/MPS/ERP
Master production scheduling (MPS)
The objectives of this module are to help Berger Pakistan to anticipate shortage
before its occur, (current stock, purchasing order, manufacturing order & sales
order) these activities creates a projection of your stock levels anywhere from a
week to several years in advance through this you can easily highlights your
shortage in red and excess in green. Drill down in any item to analysis of stock
activity, through MPS you can easily see what exactly the shortage will appear if
we execute the specific production plan.
Procurement Process:
1) Forecasted Procurement: As sales are forecasted for the next upcoming three
months and consistent changes are made for the deviations created in the market due
to any factor.(e.g. if we are standing at November 2006 we will forecast for
Febuary 2007) So, procurement planning is also made for the next three months as
60% of raw materials are imported and only 40% are locally acquired, so, the lead
time is:
Materials
“Resin” one another important material which is used in bulk quantity availability
of it is very unfrequented And profit margin is sometimes very high.
9) Clearing Agents 10) Delivery and Possession of Material 11) Good Receipt Note
Manufacturing
Overview:
Maximum Capacity: 110,000 liters/day (1000 Kg per day.) Forecast: 3,300,000
liters/month Actual Capacity: 2,500,000/2,600,000 per Month
Container Div. (Tins) Tin Preparation Filling (1 day) Ink Jet Printing Grinding (5-
6 hours) Quality Control Store (Finish Goods)
PDP (B.O.M.) Production Planning Store (Raw Material) Charging (1-2 hours)
Bottlenecks:
1) Grinding 2) Colour Matching 3) Quality Control
LOGISTICS
Warehouse & Distribution
As paint is a product that is very sensitive to seasonal conditions that is why
warehousing should be according to the specific needs that are required to store
particular type of paint .As for plastic emulsion it can be stored at room
temperature that should not exceed 27 degree centigrade on the other hand for
stoving paint that is particularly for automotives air conditioning is also
required. So Berger paints has state of the art warehouses that are completely RCC
structured as well as some warehouses are equipped with air conditioners.
Manufacturing
Lahore Warehouse
Islamabad Warehouse
Multan Warehouse
Faislabad Warehouse
Gujranwala Warehouse
They have different warehouses in Pakistan and Karachi warehouse works as a central
warehouse through which others warehouses Orders are catered, which is located
right besides the manufacturing plant in Karachi.
Berger Pakistan has its own network of distribution they directly supplies to its
retailers through their above 10 warehouses and from retailers it reaches to the
final consumers.