Supply Chain Management
Fruit juice- Dabur Nepal Pvt Ltd.
Dabur Nepal has been producing fruit juice in Nepal for many years. The major fruit juices produced by Dabur Nepal are:-
• Real
• Activ
The major raw material required to produce these juices are:-
• Fruit pulp (orange, apple, mango etc)
• Concentrated
• Sugar
• Water
• Natural flavors
The majority of the mango pulp comes from the India, while other fruit pulps like: - apple, orange, cranberries are imported mainly from Europe. Sugar and water are obtained from the domestic suppliers of the country.
Beside juice productions, for other major products of the Dabur the major supplying companies are: - Orano, Doehler, LDC.
In Dabur, the spices are imported from Indonesia, Glucose from china, and palm oil from Malaysia.
In Dabur, the sales and marketing department forecasts the demand for fruit juices for coming 6 months. They use the system developed by SAP inorder to forecast demand and manage their inventory. RPP (Revolving Product Planning) is used to determine the market requirement once a month. Through this system they are able to determine what and when the raw materials are required. The SKU (Stock Keeping Unit) has the FG code for every item. Then the system determines the purchase requirement. After that the purchase order is placed by the company to their suppliers.
After the raw materials are received from the suppliers, quality testing of the material is done. For the quality test, 5 days incubation time is required. After the materials pass the quality test, they are sent to the store. Then the production takes place.
After the juices are produced in the manufacturing house of Dabur, the product travels through major distribution channels. They are:-
• Manufacturing house
• Carrying forward agencies
• Redistribution stockiest
• Wholesalers
• Urban retailers & rural