s.c.m. Presentation - Copy

8/3/2019 s.c.m. Presentation - Copy

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AVIE BRAR

VARINDER SINGH


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Company CREMICA is one of the largest food processing

companies of India with an annual growth rate of 50%in the last 4 years.

It was established in 1978 by Mrs. Bectors.

Turning her passion for ice cream- making (also herhobby) into a small backyard enterprise.

She established the CREMICA Group today a widelydiversified food products and services company withan annual sales in figure of INR 1 billion.


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Cremica products CREMICAs presence in the market is visible on

account of its vast range of products, which includes:

Biscuits, Confectionaries, Sauces, Jams and Ketchups Indian Snacks, Ready to Eat Food, Condiments

Frozen Products, Bakery Products.

In this assignment the supply chain ofbiscuits

(glucose) was studied.


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Production The production capacity of the plant is 1.5 lakh

cartons/ month.

1 carton = 142 packs.


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Product Biscuits : the unit produces following types of

biscuits.

Salties, Cream, Cookies, Glucose. Glucose : This range of Glucose Biscuits, enriched

with glucose, milk and the right amount of extravitamins, include the Premium and the Milkies variety.


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Coverage Area The production unit of Ludhiana at Laddowal mainly

caters whole Punjab, Delhi, Haryana, and Himanchal-Pradesh.

It offers its product in bulk to Indian Army, IndianAirlines, Barista Coffee Shops , Caf Coffee Day,Reliance Retail Stores, Jet Airways, Indian Railways

and prestigious institutions.


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Exports The premium quality biscuits are exported toAfrica,

Australia, Caribbean, Canada, USA and UK.


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Competitors The two main competitors of the company are :

Britannia and Parle.

It too faces a small amount of competition fromunorganized food processing units.


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Competitive advantage Creamica is having the first movers advantage in case

of manufacturing Twin cream biscuits.

High quality assurance, even incase of a singlebreakage of biscuit in pack is liable to buyback by thecompany incase of wholesaler and 50% incase ofretailer.


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Distribution Channel The product is distributed through the company

owned vehicles i.e. trucks to different destinations.

The company follows two types of channels which areas following.

Type one and type two

Type one includes wholesaler in the distribution

channel while the other method provides goods toretailer directly.


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Distribution Systemcompany

dealer

wholesaler retailer customer


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Margin Company provides 7% commission +1% cash discount

on each unit against Rs. 3.72 (incase of 5 Rs. Biscuits)

Dealer gives 3% or 4% from his own commission(7%)to wholesaler accordingly.

Retailer enjoys the M.R.P. of the product.


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Order Processing Orders are brought by the salesman, which are shown

to the finance Dep't. For further process of the order.

Most of the orders are based on the advance payments.


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Cost Reduction Strategies Reducing the actual weight of the biscuits

considerably.

One of the main competitor Parle sells at Rs. 5 for 94gms. packing while Cremica reduced to 72 gms.


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ProcurementA good quality wheat is bought from near by a Local

Mandi in bulk purchase.

The cleanliness is done in the Phillaur unit and whichis then transported to Laddowal plant.

Last year an export purchase of Sugar was made fromBrazil which incurred huge losses to the company due

to low prices of the Sugar in the local market.


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Measuring Demand and Supply The measuring and matching the demand and supply

is taken care of by ASM ( Area Sales Manager ).

ASM is assisted by 1 to 2 sales executives and controls15- 20 sales man.

First of every month meeting of all the ASMS, salesexecutives and salesman is done.

Old targets are discussed and new are fixed. For predicting demand for a particular month in the

current year the sales of last year are seen in samemonth.


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