PS I PROJECT PRESENTATION

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PS I PROJECT PRESENTATION

• Al Seer Trading

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By

• Shivang Patel Jeslyn John
• Shilpa Uppalapati Bhaskar Babu

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Introduction

• Logistics
• Layout and Handling
• Customer Survey
• Consumer
• Order and Replenishment Planning
• Customer Survey
• Nestle
• Competition Awareness Counteraction

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Layout and Handling

• Methodology
• Collected existing material
• Blue print
• Documents in use.
• Verified the existing material.
• Used AutoCAD for the layout.

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• Collected Blue print

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What we created
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Warehouse Management System (WMS)

• In the process of implementing
• WMS does the following
• All the shelves are given an address and a
  barcode by which the system identifies them.
• Contains the information
• Creates a picking list automatically
• Picking list contains only the addresses.
• Our project here
• Create a visual aid to help in effective
  picking, storing and supervising
• Created a MAP

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Addressing System
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Wholesale Rack Store
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Retail Rack Store
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Safe Storage Area
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Possible Advantages

• Points out the actual location of the shelf/rack
  effective picking
• Supervising
• Avoids Fragmentation
• Training of the staff and newcomers for the WMS
  system

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Effective Storage

• Collected data of space usage over a period of
  seven days
• Empty pallets
• Half filled pallets
• Observations
• Wholesale Empty 403
• Wholesale Half empty 616
• Retail empty - 191

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WHAT THE NUMBERS MEAN
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Retail shelf store
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Suggestions

• The products in wholesale area could be shifted
  on temporary basis to the retail area
• Lease out extra space in the whole sale area also
  ( ex Bulk Area)
• Make more number of half shelves

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Phase II

• Customer Survey

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Customer Interviews

• Two kinds of customers from the logistics point
  of view
• External Retail outlets
• Internal - Nestle and Consumer Departments
• Reports collected
• Goods returned reports
• Sales report ( outlet wise, product wise)
• Created questionnaires targeting
• Internal salesmen Nestle and Consumer Depts.
• External Customers Retail Outlets.

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Areas Targeted in the Questionnaire

• External Customers
• Services Offered
• Attitude of the Al Seer representatives
• Goods returned problem
• Benchmarking
• Internal Salesmen
• Support offered
• Flow of communication

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Analysis of internal customer survey
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External Flow of communication

• Average 2
• The general view about this question was that the
  communication was pretty smooth

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External Flow of communication

• Average 4
• The trend shows that this channel of
  communication required a better and smoother flow

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External Flow of communication

• Average 5
• This was a point of dissatisfaction for most of
  the people interviewed
• It was suggested that the delivery man should be
  provided with a mobile means of communication and
  should be instructed to contact the respective
  salesperson in any event of returns so that they
  can make an effort to solve the issue then and
  there and prevent the goods returned

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How well are Salesmen updated about

• Average 4
• There was a slight hint of dissatisfaction in
  this area

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How well are Salesmen updated about

• Average 5

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How well are Salesmen updated about

• Average 5
• This was also an area of dissatisfaction and this
  could be reduced by promptly informing the
  concerned salesmen

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Customer Complaint Frequency

• Average 4
• This statistics show that complaints related to
  delivery are received by the salesmen from their
  customer at considerable frequency

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Customer Complain Frequency

• Average 3
• It shows that the complains related to behavior
  of delivery person are not that common and is
  not an area of concern. Also it was pointed out
  that the delivery personnel have a very heavy
  schedule accompanied with the long waiting hours
  at some retail outlets.

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Customer Complain Frequency

• Average 3
• Complaints related to condition of goods at the
  time of delivery were also not encountered much

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Customer Complain Frequency

• Average 3
• Except for some isolated cases this complain was
  also not received that frequently.

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Internal Flow of communication

• Average 5
• This was a major area of concern at the level of
  dissatisfaction was a general trend
• Our suggestions - use of SMS to update the
  salesmen in real time
• Mentioning of barcodes on the invoices.

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Internal Flow of communication

• Average 4

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Internal Flow of communication

• Average 4
• Information regarding the price difference was
  also not conveyed immediately

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Suggestions gathered during interviews

• An order copy must be sent out with every
  delivery (The actually LPO or the order form that
  is already signed by the manager and shelf boy.)
• Special requirements should be highlighted in the
  picking slip.
• Provision of mobile phones and cards to delivery
  people
• Merchandiser to be present at the time of
  delivery at the Union Co-ops

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Our suggestions

• The barcodes ( numbers ) should be mentioned in
  the invoices
• Salesmen should be informed immediately using SMS
  (Short messaging Service)
• the delivery person should first be provided with
  mobiles
• Delivery personnel should call the salesmen
  immediately in case of ay problem

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Analysis of external customer survey
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Satisfaction of total order cycle time

• Average 2

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Availability of product as per LPO

• Average 2

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Availability of information

• Average 2

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Accuracy of invoices

• Average 2

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Accuracy of delivered goods

• Average 3
• Only Lamcy Plaza had a problem. But the problem
  was originating from their side.

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Condition of product when received

• Average 2

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Promptness in dealing with customer complains

• Average 2

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Frequency of problems regarding

• Average 4
• The goods had to be returned due to barcode not
  being accepted by the retail outlet system

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Frequency of problems regarding

• Average 2

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Frequency of problems regarding

• Average 2

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Frequency of problems regarding

• Average 2

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Frequency of problems regarding

• Average 2

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Frequency of problems regarding

• Average 2
• The customers were quite happy because whatever
  they returned were being accepted by Al Seer

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Frequency of problems regarding

• Average 2

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Areas of concern Suggestions

• Certain unlisted products were sent along with
  the listed ones
• Complain by certain B class supermarkets about
  the salesmen and merchandiser not visiting the
  outlet frequently
• Frequent problems with barcode in certain A class
  supermarkets in promotional items
• Certain outlets suggested printing of barcodes on
  the invoices to reduce the confusion
• As far as the benchmarking is concerned we made
  our constant effort to make sure that whatever
  the rating they gave was relative to certain
  market leaders like Transmate, MMI, and T
  Choittram Sons etc, considering this the
  result show that our services from the logistics
  were better than the competitor as there were
  frequent references to these competitors and
  comments placing our services on the top

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Conclusion

• Actual layout of the warehouse using AutoCAD
• WMS Maps
• Efficient space usage
• Areas of concern from Customer Salesmen
  interviews

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ORDER AND REPLENISHMENT PLANNING

• OIP (Order Inventory Planning)
• FACTBOOK

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Sample of OIP Report
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ERRORS FOUND IN THE OIP

• Mistake in the formulae
• Alignment Problem
• Error in programming

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FACTBOOK
Data collectionDesk Research (records, invoices)
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OLD MODEL
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New Model
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ADVANTAGES

• Can access it at any point of time
• No confusion whatsoever
• Can update it whenever possible

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Customer Relationship Management
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• PROJECT AREA The draw on the HUGGIES
  promotion

• SUB DIVISIONS 1. CUSTOMER DATABASE
• 2. SURVEY
• 3. HTML EMAIL

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HOW WAS THE PROJECT CARRIED OUT?

• Identify different types of prize winners
• Input into the computer
• Contact them
• Give out their prizes

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CUSTOMER DATABASE
Earlier Was done using the Excel
sheet Problems rising Waste of time. Solution
MS Access programming
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ADVANTAGES

• Time management
• Easily identify who has collected/
• not collected
• Can access it for future purposes

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SURVEY
Software used Wisco Survey Power
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RESULTS OF THE SURVEY CONDUCTED FOR OVER 110
PEOPLE
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CRM Analysis
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CRM Analysis
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CRM Analysis
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CRM Analysis
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CRM Analysis
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CRM Analysis
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CRM Analysis
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CRM Analysis
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Recommendations

• Expand Huggies market market availability is
  less
• Impulse buying was one of the main points
  noticed
• Wipes Unscented
• Need Bigger packs price slightly on the higher
  Range
• Come up with exciting offers
• Free samples

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Recommendations
Increase the absorption Shortcoming seen in
STEPS Sticker on the diapers creates marks on
the baby
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ADDITIONAL PACKAGE TO THE CRM PROJECT
HTML EMAIL Software used Outlook Express
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CONCLUSION

• Detecting errors in the OIP reports
• Creation of a Fact Book
• Creation of a customer Database
• Analysis of the customer survey
• HTML e-mail renovation

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NESTLE DIVISION

• COMPETITOR ACTIVITIES FOR NESTLE AND SUGGESTIONS

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Market SurveyVisited around 41 supermarkets all
over the U.A.E

• Union co-ops- 5
• Sharjah co-ops- 2
• Choithrams- 4
• Lals- 1
• Spinneys-3
• Park n shop- 1
• Park n save- 1

• Emirates co-ops- 2
• Discount centres- 2
• Carrefour- 2
• Alfalah plaza-1
• Ajman co-op- 1
• Jescos-2
• B-class super mkts- 13

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Market share of Nestle products
NOTE - These market shares are estimated by
visiting around 50 super markets all over U.A.E,
talking with the merchandisers and taking an
average of all the data
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COMPETITOR ACTIVITIES

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COMPETITOR ACTIVITIES
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COMPETITOR ACTIVITIES
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COMPETITOR ACTIVITIES
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COMPETITOR ACTIVITIES
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MAIN COMPETITORS FOR NESTLE

• NidoAnchor, Coast, Olden Burger, Rainbow,
  Sharjah Co-operative Milk Powder, Co-op Instant
  Milk Powder
• NescafeNajjar, Rio, Tasters Choice, Bru
  Instant, Maxwell House
• Cerelac Farleys, S26 Gold, S26 AR, S26 LF,
  Hero, Aptamil
• Confectionary Mars, Cadbury, Ferorro Rocher,
  Bounty, Snickers
• Maggi Sauce Kimball, Heinz, Kissan, Hunts,
  American Garden, Natural Sauce, HP, Lea Perrins
• Cream Puck Cream, Al Al Ali Cream, Co-op Cream,
  Unikai Cream
• CMP Santan, Herco
• Maggi 2M Noodles Indomie, Koka, Fantastic,
  Mamee, Supercup Noodles

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Recommendation for Nido Milk Powder

• Increase in the price of Nido M.P. by 5
  effective from 1st August 2003
• Even Nidos main competitor Anchor has increased
  its price by 5 because of the strategy followed
  by nido being a brand leader
• It is going to be an advantage for anchor because
  anchors distributors (New zealand diary) has
  very good budget to promote anchor since this
  product is direct distribution from the principal
  itself
• Anchor has been promoting the product
  continuously for 4 years
• Nido should maintain consistency in price issue
  so that it wouldnt be giving a chance for its
  competitors like Anchor to take advantage over it

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Recommendation for Maggi Sauce

• Particularly Maggi sauce is very slow moving
  among nestle products when compared to the
  competitors like kimball
• Cost is the main factor involved

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Recommendation for Maggi Sauce

• Kimball has a market share of around 60

• To attack kimball and capture the market
• promotions like 10 off,20 off,10
  more,
• 20 more,maggi sauce promotion along with
• maggi powder offer,buy 3 get 1 free
  should
• help

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Recommendation for Nestle productsBreak fast
cereals

• Kelloggs is the brand leader in c.p.w with a
  market share of around 78

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Recommendation for Nestle productsBreak fast
cereals

• To attack kelloggs and capture the market to
  some extent , portion packs can be supplied to
  the offices i.e., dry sampling can be done
• By doing this the customers can use the product
  during break time, tea timeor even during working
  hours
• This becomes a habit for them slowly and they get
  used to the product and get to know about the
  feel and quality of the product
• The market share and sales can be rapidly
  increased in this way

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Suggestions for Nestle productsBreak fast cereals

• Different kinds of PROMOTIONS that can be done
  for nestle
• 1)Bowl free 2)Nestle
  Crunch cereals
• 30g
  free
• 4)10 free,20 free offers 3)Point of sales mt
  
  

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Suggestions for Nestle productsconfectionary

• Mars is the brand leader in confectionary with a
  market share of around 55
• Nestle is competing with mars
• Confectionary items are very fast moving goods
• Display of these confectionary items in check out
  stands which is known as impulse goods
  increases the chance to capture the market and to
  become the brand leader

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Problems Faced

• Lack of communication between the sales men and
  the merchandisers is observed
• In some supermarkets the problems like the
  products are not being made available on the
  shelf is faced
• This is the area where the sales men and the
  merchandiser has to improve and work as a team to
  increase the sales and at the same time keep the
  standards of the nestle products

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Conclusion

• I Hope that this project which has been done will
  help the company in improving their sales
• This project which is involved with all the data
  collected about the competitor activities for
  nestle which will be very useful for maintaining
  a level always better than the competitors

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ACKNOWLEDGEMENTS
Our sincere thanks to Mr. Chandrasekar
General Manager Mr. Vincent DSouza Trade
Marketing Manager Mr. V. L. Bhatia Logistics
Manager Mr. Shirin Manger, Nestle Division Mr.
Sharath Babu Business Development
Manager Mr. Denzil Supply Chain
Coordinator Mr. Nair IS Manager Mr.
Mustafa Stock Manager Ms. Amila HR
Manager Mr. Divakaran Central Finance
Manager Ms. Deepa Market Analyst Mr.
Sarfaraz Market Analyst Mr. Unni Nestle
Field Sales Manager Prof. Ramachandran Dean,
BITS Pilani Dubai Centre Ms. Sujala Shetty PS
Faculty Mr. Calvin King PS Coordinator
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THANK YOU