Channel Management of Olper’s MilkSubmitted by: Sania Nisar (11275) Anum Sethy (17533) 4/28/12 Olper’s Milk Launched on 20 March 2006. • UHT (Ultra heat treated) milk with 3.5 % fat and 8.9 % solid non-fats. • available in easy-toopen, 6-layered Tetra Pak Brick Aseptic red packaging. • 4/28/12 Products 4/28/12 Mission “Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value “ 4/28/12 Vision Aims at transforming the company within next five years into first a national food industry giant, then into a regional force and finally into a global player. 4/28/12 Industry Market Share 4/28/12 VALUE CHAIN ANALYSIS 4/28/12 Inbound Logistics Inbound logistics long vehicles are used • Milk collection centre are situated in various location. • 9,000 liter capacity is collected by vehicles to transport it to the plant for production. • 4/28/12 Milk Collection from Various Cities of Sindh & Punjab • Lakhi Ahmed pur east Rani pur Nawab shah Dharki Dhokri Rohri Sahiwaal • • • • • • 4/28/12 Milk Collection from Various Cities of Sindh & Punjab 4/28/12 Outbound logistics • Outbound logistics TRUCKS are used. They have 80% dedicated fleets & 20% open trucking especially for the northern areas of Pakistan. • 4/28/12 Outbound logistics Capacity Of 50 feet Truck 4/28/12 Warehouse There are 3 warehouses of Olpers: • Sukkur (Mother ware house) Sahiwaal (Mother ware house) Rawalpindi(Central ware • • house) 4/28/12 Sukkur Warehouse Sukkur warehouse having a capacity of 1.6 million liters with a daily average dispatch of 350,000 liters 4/28/12 Sahiwaal Warehouse Sahiwaal warehouse having a capacity of 4 million liters with a daily average dispatch of 400,000 liters 4/28/12 Channel Flow 4/28/12 Distribution Networks • Olpers have 160 distributors all over Pakistan. Pakistan is divided into three geographical zones. North zone Central Zone South Zone • • • • 4/28/12 NORTH ZONE • Rawalpindi Peshawar • 4/28/12 CENTRAL ZONE • Lahore Gujranwala Multan • • 4/28/12 SOUTH ZONE • Karachi Hub Nawab shah • • 4/28/12 Distributors in Karachi Olpers have seven distributors in Karachi Pakistan Aftab traders covers Defense & Clifton • S.I traders covers Garden & Old Karachi •Tawakal Distributors P.E.C.H.S & Saddar •SAS distributors covers Johar, Malir, Landhi & Korangi •Pacific distributors covers Ghulshan & Bhadurabad, Tariq road •S.Care traders covers New Karachi & North Karachi •M & Sons covers Nazimabad & OrangiTown • 4/28/12 Reverse Logistics • Shelf Life of Olpers Milk Return Policy of Olpers Milk • Olpers have efficient return policy for inventory in case of any defect. 4/28/12 Recommendation We are recommending following two important factors which we felt missing in their supply chain 1. To build a regional ware house in Karachi that fulfills there gap. 2. They need to have their own Dairy Farm so that they can meet the increasing demand as their market share is growing by 12% annually. 4/28/12 Ramadan Campaign 4/28/12 TVC’S 4/28/12 THANKIN G YOU 4/28/12