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INTROUCTION

This industry was established before our independence. HAVMOR is


established in Karachi in 1944. HAVMOR is very popular in Gujarat. It
started 70 yrs. ago. The word HAVMOR is derived from two English words Have More means have it more. It is a partnership form of organization. It
may be described as an experiment successfully running from last 70 yrs.
In this manufacturing factory the machines are arranged according
to the process they perform in the plant. Company produces 150 different
varieties of products and distributes throughout the Gujarat by its annual
turnover of Rs.250crores. The location of the company is very good and
safe in sufficient area like west India. They get easily their productionneeded raw material.
MISSION
Good, Truthful, Clean Enterprising Ethos
Satish Chona, the founder of Havmor, began his enterprise half a century ago
with a simple guideline (Goodness, Truthfulness, and Cleanliness).
The succeeding generations at the helm of the company translated this axiom
into a way of life and business. Only the finest ingredients go into the making of
Havmor Ice Creams. The whole manufacturing process conforms to global
standards of hygiene. And the companys trade practices are kept totally
transparent.

Company objective

HAVMOR Ice Cream Company is dedicated to providing top


quality products and excellent service.

Customer relationships, value and integrity are the


cornerstones of HAVMOR Ice Cream Companys long standing
reputation.

HAVMOR believe in maintaining and nurturing an


environment conducive to highest standards of quality at
every level- from products to infrastructure and from
processes to people.

Continuous up gradation of technology, innovation and team


development are the on-going constants at Havmor which
translate into a synergy of excellence with low cost.

Supply Chain management plays a significant role in the success or failure


of the organization. Supply chain management helps in revenue
enhancement, cost control, asset utilization and customer satisfaction.
Supply chain management provides all the stakeholders with relevant
information that can be utilized for quick and effective decision-making. If
it is implemented successfully, it can balance customers demands and
firms need for growth. The goal for any organization is to provide product/
service to the customers in such a manner that customer is satisfied and
organization is able to generate profit from the transaction.
Competitive Edge through Core Competencies
Today's business environment has quickly improved and has become more
competitive as ever in nature. Businesses now not only need to operate at
a lower cost to compete, it must also develop its own core competencies
to distinguish itself from competitors and stand out in the market. In
creating the competitive edge, companies need to divert its resources to
focus on what they do best and outsource the process and task that is not
important to the overall objective of the company.

Business functions
HUMAN RESOURCE MANEGEMENT

The overall responsibility of manufacturing are interested to vice president


who is supported by different functional health leaking after oral solids,
quality control production planning and control and utilities. Personal
department is the main part of the each and every company without the
person company can do nothing and cannot earn profit.
Supply chain management helps in speedier transport of Havmor products
to the market so that customer gets the products at the right place at the
right time in the right quantity with minimum cost. This enables Havmor
to earn more market share and there by more profit.as Havmor receives
more profits, the employees are rewarded with bonus or incentives which
prompt the employees to work more efficiently there by providing a better
customer service to the customers.in this way supply chain management
and human resource management are interlinked. The company has good
relationship with his company.it provides them insurance also company
tries to give them basic facilities.
On estimation of additional manpower requirement SCM coordinates with
HR for recruitment and also in the training needs of the new employees.

MARKETING

HAMORS of marketing goal is to create customers satisfaction profitable


by building value-laden relationships with important customers. The
marketing department cannot accomplish this goal by itself it must team
by closely with other department with organization throughout its entire
value delivery system to provide superior value customers. This marketing
calls up every one in the superior value and satisfaction. In order to make
all the work smoother the group has created division has its own special
identity in the market and it tops products. In order to increase the
competitive advantage in the market HARMORS have to concentrate
more on the marketing by concentrating of different medium such as
Medias
Sales & Marketing has to present their budget for next year by the end of
each year whereby they are supposed to put forward their sales forecasts
which is presented to the management and subsequent approval is
sought. After approval of the forecast its presented to SCM who has to
calculate and estimate in coordination with operations if available fleet
would be enough to meet the estimated demand by sales or would there
be additional capital investment required. They in turn put up a capital
budget in coordination with Finance

FINANCE MANAGEMENT
Financial supply chain management (FSCM) is a set of software tools and
processes designed to enhance an organizations product flow,
maximizing profitability and minimizing expenses.
SCM in coordination with Finance prepares the Capital Budget and
approaches the management for approval to seek further investment.
SCM also coordinates with Finance to finalise the payment terms for
various capital suppliers
THERE is direct link between financial status of a firm and supply chain
management. Finance department always try to reduce cost incurred
during different operational phases and effective supply chain
management enables to reduce cost incurred during different phases of
operation. Responsiveness and efficiency are the important factors on
which supply chain management focuses .by providing the required
amount of responsiveness to the customers at the minimum cost, an

organisation can out beat its competitor. We can see that the focus of
finance department and supply chain department are naturally aligned,
that is both focus on reducing cost
The allocation for allocating more funds for purposes of expansion,
establishment, renovation and diversification can be compensated
through a responsive supply chain. In the case of Havmor as the
customers are geographically separated and are with varying interest we
require a supply chain which can satisfy all sorts of costumer with the
required level of responsiveness
SCM in coordination with Finance prepares the Capital Budget and
approaches the management for approval to seek further investment.
SCM also coordinates with Finance to finalise the payment terms for
various capital suppliers.

Production

Production is a process of conversion of raw material into finished goods


with the use of different resources. And the production process is the
combination of certain steps to obtain the final product. These steps
collectively are said as process.
Many processes are undertaken in creaming before the milk & milk
products reach the hands of the final consumer. Because of the processing
the life expectancy of these perishable items increases and they may be
preserved and retained for a longer period without any deterioration in the
quality

Production depends on the demand and companys sales forecasting. So


on that time HAVMOR has to develop the strategy that how product will be
produced. If business objectives contain moving producing out of the
state, then the decisions can bend towards via subcontracting and third
party .another factor is environmental issues which influence organization
policy to a better level, these issues may persuade strategic supply chain
decisions With the help of these thing we can say that, there is a strong
relationship between the supply chain management and businesss
objective.

Key drivers for achieving integrated supply chain strategy


The performance of a supply chain is determined by decisions in the areas of
inventory, transportation, facilities, information, sourcing and pricing. Hence
these six areas are identified as drivers of supply chain performance.
First we define each driver and discuss its impact on the performance of the
supply chain

1. Facilities
Facilities include all locations in the supply chain to store, assemble, or
fabricate inventory.alaso they have production unit and warehouse. Their
production unit and warehouse are situated in one place. Because they
are producing ice cream products .Havmor major two facilities are
production sites and storage sites. Decisions regarding the role, location,
capacity and flexibility of facilities have a significant impact on the supply
chain's performance. Havmor striving for responsiveness could have many
Warehousing facilities located close to customers even though this
practice reduces efficiency. Centralization of facilities uses economies of
scale to increase supply chain efficiency so HAVMOR can improve their
supply chain by using this Centralization of facilities.

2. Inventory
Inventory encompasses all raw materials, work in process, and finished
goods within a Supply chain. Changing inventory policies can dramatically
alter the supply chain's efficiency and responsiveness.

Havmors product is a seasonal product so maintain the seasonal inventory


is better. Seasonal Inventory: It is inventory maintained to satisfy higher
demands in a period compared to production capacity. It arises due to the
decision to service predicted variability in demand through extra
production during slack period or low demand periods. Increasing
inventory gives higher responsiveness but results in higher inventory
carrying cost.

3. Transportation
Number of decisions has to take in designing a supply chain regarding
transportation. This are things are happening Havmor. Havmor supply
their product in many regions .The main mode of transportation of
Havmor is road, rail and air. Havmor is engaged in ice cream selling
business so transportation plays an important role in their day to day
business activities. (Havmor using A.C. isolated vehicles)
Transportation entails moving inventory from point to point in the supply
chain. Transportation can take the form of many combinations of modes
and routes, each with its own performance characteristics. Transportation
choices have a large impact on supply chain responsiveness and
efficiency. Distribution network strategies address the issues like location
of warehouse and their capacities etc. It establishes the basis how should
management maintain flows between facilities, this flow includes between
production house to warehouse and warehouse to retailer. It helps to
reduce the total holding and logistics costs. Different information
technology packages are used to assist while making these complex
decisions making.
4. Information
Information consists of data and analysis concerning facilities, inventory,
transportation, costs, prices, and customers throughout the supply chain.
Information is potentially the biggest driver of performance in the supply
chain because it directly affects each of the other drivers. SCM Globe
simulates real-time information sharing between all participants in a
supply chain by making data about operating costs and on-hand inventory
available for all the facilities in the supply chain.
Information serves as the connection between various stages of a supply
chain, allowing them to coordinate & maximize total supply chain
profitability.

HAVMOR Coordinating daily activities related to the functioning of other


supply chain drivers: facility, inventory & transportation. Forecasting &
planning to anticipate& meet future demands. Available information is
used to make tactical forecasts to guide the setting of monthly & quarterly
production schedules & time table

5. Pricing
Pricing determines how much a firm will charge for goods and services
that it make available in the supply chain. Pricing affects the behaviour of
the buyer of the good or service, thus affecting supply chain performance.
Havmor Food Pvt. Ltd. Have 2 factors affecting to price decision.
A. Internal factor affecting to the pricing decision.
Marketing mix strategy: - Havmor has made own marketing mix strategy, price
is only one of the marketing mix tools that a company uses to achieve its
marketing objectives. Cost: - Havmor has estimate the cost set the floor for the
price that the company can charge for its products. The both cover all lots costs
for producing, distributing, and selling the products and deliver a fair rate of
return for its efforts and risk. Organization Consideration: - Havmors
management must decide who within the organization should set prices.
B. External factor affecting to the pricing decision.
Pure Competition: - A markets in which buyer and seller trade in a uniform
commodity no signal buyer or seller has much effect on the going market price.
Monopoly Competition: - A market in which many buyer and sellers trade over a
range of pricing rate than a simple market prices. Competitor: - Havmor Icecream has selecting price of the product economic factors are affecting in such
as boom or recession. In flatirons and in terse rate affect both the producing a
product and consumer perception of the product and consumer perception of the
products price and value

PRODUCTION PROCESS

The Process for manufacturing ice-cream passed through various stages the
chart given bellows shows the ways in which ice cream reaches us after
manufacturing stages

Ice cream manufacturing

Ice cream filling

Marketing Channel

Cold storage

Transportation by A.C. isolated vehicles

Distributors

Dealers

Customer

2.1 Evaluate the effectiveness of strategies used by an organisation to maintain


supplier relationships

Effective management of suppliers is one of the ways producing companies can


improve their performance. There are several important aspects of supplier
management, they include sourcing strategies, the way relationships are
management and the information exchange policies adopted by producers.
Typically, it has been argued in the literature that close relationships with
suppliers should be developed, in contrast to the traditional price-driven
transactional relationship.

2.2 use information technology to create strategies to develop an


organisations relationship with its suppliers

Information technology has an inevitable role in the effective supply chain management. No
doubt todays the most advanced form of supply chain management is just possible due to the
assistance available from the information technology. Information technology addresses almost
every part of the supply chain from production to logistics, and order placing to inventory control.

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