2017

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Browsing 2017 by Author "Muhammad Salman"

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    Optimization of Procurement Process in Nestle for minimizing delay losses in deliveries of local supporting industrial inventory”
    (umt.lahore, 2017) Shamim Gulzar; Jamila Tul Uroos; Muhammad Salman; Abdul Majid
    This project will emphasis on “Optimization of procurement process in Nestle by minimizing losses due to delay in deliveries of supporting industrial inventory” This project examined the factors influencing delays in local indirect materials deliveries to production plant and quality assurance department by procurement department in Nestle. As the study adopted descriptive research design, so for this purpose we collected recent data through self-struggle. In order to analyze the problematic areas, the Procurement department provided technical support to our team and we were able to identify a problem in their process and we also collected the data from KPIs of procurement and QA department and SAP reports. The results obtained show that the main problem of procurement is related to delays in deliveries to quality assurance department and production plant. Furthermore leading-edge companies have realized that the strategic importance of supply chain management is simply because of their rivals are competing based on their supply chain capabilities. So it is necessary to understand business and scientific research method to solve organization problems. The main objective of project is to improve material supply system and to control over stock of expired chemicals, to define optimal level of inventory, to avoid un realistic delivery dates in PO’s and to provide timely deliveries of items to all stake holders. There are three types of buyers such as strategic, tactical and operational. In this project we have focused only operational buyer. Data has been analyzed by using cross functional cause and effect diagram and PIE chart. In existing scenario buyers were not taking follow ups from suppliers for timely deliveries, no penalty clauses were included in terms and conditions with suppliers, ROP was decided by area owner without consulting with trained procurement staff. FIFO was followed for chemicals inventory control. Discount model was not using during purchasing of materials. Economic order quantity of spare parts and chemicals have been defined by using seasonal index method and new ROP have been defined by using probabilistic. Cost analysis shows few tangible and intangible benefits. Some recommendations are increase sense of responsibility in staff, using multi sourcing for purchasing of materials, provision of training to staff, positive attitude, resource allocation for chemicals expiry control in system and resource allocation for follow ups with suppliers for timely delivery.