Executive Summary

This report presents detailed information on the Supply Chain Management at Reckitt Benckiser. The content provides an introduction to the workings of the company and focuses on the processes followed at the company. Products transacted suppliers, procurement from overseas and local supplies, inventory management and distribution network management has also been discussed. The process starts with sales forecasting which gives an estimate of the sales on monthly basis. Imported material inventory of about 3 months is maintained as safety stock. Some ingredients are procured locally whereas some is imported. They also have a SITE warehouse and factory which serves as the main storage for finished products in Karachi. There are three distribution centers in Pakistan. They are located in Karachi, Lahore and Islamabad. RB imports raw material from China and Singapore and purchases a large percentage locally. Products such as soaps are outsourced for production. Transport operations are managed by the company itself with the help of outsourcing within agreement. A total of 10 containers are constantly employed for inter-city by the firm. The report contains an introduction to the firm and its supply chain, and provides a basic idea of its activities and systems involved therein.

RB introduces itself! Reckitt Benckiser is a global success story: a world leader in the global household, health and personal care sectors. Our offer is simple - bigger, better and more competitive opportunities to develop a rewarding career at the very forefront of FMCG. We are listed on the UK stock exchange and rank 23rd in the FTSE 100. Our success is led by our Powerbrands - big-name brands like Finish, Vanish, Dettol and Veet that aim to achieve global market leadership. Through them weve become No.1 in the vast majority of markets and categories in which we compete. Backing up our Powerbrands is a great portfolio of local hero brands. We operate in no fewer than 60 countries, while our brands are sold across 180. Our people are the power behind these brands - around 23,000 talented, driven and entrepreneurial individuals, all working together.

Vision statement Reckitt Benckiser delivers better solutions in household, health and personal care to consumers, wherever they may be. We do it through constant innovation. We look at the little things that drive people mad in their everyday life. Then we deliver brilliant, fast-acting solutions that help make life better and easier - and create outstanding shareholder value in the process.

Product range in Pakistan

RB maintains over 200 SKU's within Pakistan, some of which are produced by RB, others outsourced and a certain number imported.

Network Diagram

Raw materials

Warehouse Within factory Quality control

Manufacturing

Quality control

Packaging

Quality Control

Distribution Center

Distributors

Wholesalers

Retailers

Departments within the supply chain Within the supply chain, RB has a number of divisions, each interlinked and performing a function essential to the success of its operations. PROCUREMENT Low production costs Fast and on-time deliveries High quality products and services Flexibility Procurement is responsible for all purchasing of required raw materials and to ensure that the manufacturing team does not run short of any essential raw mats etc. Often certain raw mats are purchased during off season, to attain a lower cost, so long as budgets allow for it and warehousing cost is not too high. Projects Is an essential function, particularly during new product development. They are responsible for the assurance of 'supply excellence', packaging development etc. It maintains a bird-eye view over the operations of the complete supply chain, and identifies where there is room for improvement. Supply Planning Works particularly on developing forecasts i.e. demand planning, based on previous trends etc, which eventually leads to the development of manufacturing plans, logistic planning etc, each subsequently falling under its wing. A number of RB's products are somewhat seasonal (for instance soaps and aerosols) whereas others (for instance dispirin) have a flat, constant demand. This means the SP department must plan each step of the production and supply process accordingly, to ensure that there is no over- or under- stocking. Factory Management Involves control of the actual production process. Includes production and engineering. Quality Control Works on various areas to ensure eventually that the quality of final goods produced is as per required standards. This is done through a number of steps. To begin with, raw material purchased undergoes tests for assurance of its quality before it is allowed to be sent forward for production. Post production QC tests the product to ensure the required standards

are met again before forwarding it to packaging. Post packaging, QC checks the packaging etc before allowing the finished product to be sent to be logged into the Distribution center making it available to distributors and other DCs.