VIRGIN WATER SUPPLY CHAIN

Deepak Pathania Oshioke Samuel Fotima Saydullaeva

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

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.

MARKET & CONSUMPTION OF BOTTLED WATER IN POLAND

Bottled water makes up 41.1 percent of soft drinks market in Poland and is the second biggest after fizzy drinks, whose turnover in 2009 amounted to over 2.5 billion zloty (0.6 billion euro). the sale of bottled water in Poland is constantly on the rise - in 2009 it increased by 9.1 percent - the consumption of bottled water in Poland is still low in comparison with other EU countries. Poland comes only 14th in the European ranking of water consumption. An average Pole drinks 66-75 approx liters of water per year, while in Italy that number amounts to 197 liters. As per 2011 survey around 110 litres in the Czech Republic, around 122 litres in Germany, and 84 litres in Slovakia. This gap seems to suggest there is considerable room for growth. The anticipated growth in awareness of the importance of regular water consumption will be a key factor demand for bottled water.

OPERATIONS & CERTIFICATIONS

OPERATIONS 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 water convenient and attractive to end users. The sale at 100% capacity utilization is Rs 209 Million. The plant would be set up in three famous cities Warsaw, Krakow & Gdansk where all the required infrastructure and amenities will be available. Certifications:

QUALITY 92 % Manufacturing Facilities ISO 9001 (2000 version) or FDA certified SAFETY 92% Manufacturing Facilities OHSAS 18000 or VPP certified ENVIRONMENT 92% Manufacturing Facilities ISO 14000 certified

OPERATIONS

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 & Vitamin Water

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.

DRAFT CAPACITIES

To plan the right amount of space in stock, number of pallets/trucks and the frequency of deliveries we need to know: 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 the shipments 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 the transportation/warehouse costs.

SUPPLIES

The supplies are divided into following groups:

Table 1 Supplies - main division

THE LONG-TERM SUPPLIES PLANNING WILL BE MADE IN 2 MONTHS ADVANCE THAT GIVES TIME TO DELIVER SUPPLIES OF CHEMICALS/LIQUID VITAMINS FROM THE INTERNATIONAL SUPPLIERS.

PURCHASES - EXTERNAL FLOW

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 water Group. All purchases are also being verified.

SUPPLIERS OF SERVICES / MATERIALS

PRODUCTION - INTERNAL FLOW

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.

SALES & DISTRIBUTION

Distribution For Distribution Virgin Water Company will tie with 3PL logistics services and will deliver products to wholesalers as per their demand.

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.

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 planning and internal stock monitoring.

TRANSPORTATION & STORAGE

NETWORKING

SUPPLIERS RELATIONSHIP

Summary of Overall Production

Summary of Overall Production

RECEPTIONS OF MONTHLY PRODUCTION

DAILY PRODUCTION

DAILY PRODUCTION ON THE BASIS OF BOTTLES & WATER

PRODUCTION LINE

PALLETS & CASES CALCULATIONS

PALLETS CALCULATIONS ON TOTAL PRODUCTION DAILY BASIS

PRODUCTION CAPACITY AND CALCULATIONS ON TRUCKS

DISPATCHES

MANUFACTURING PROCESS

THANKS