Define and Discuss Supply Chain Department of Reckitt Benckiser

SUPPLY CHAIN DEPARTMENT:

Major Functions of the supply chain Department

The Supply Department comprises of three functional areas:

  • Procurement
  • Manufacturing
  • Quality Assurance

The demands of the products are initially determined through the demand review meeting held between the sales department and the supply-planning manager from the supply department. The supply-planning manager then conveys this unconstrained demand to the procurement and production department. In return the production departments notifies procurement about the amount that can be produced after an analysis of their production capacity, work force development etc. procurement also looks at the supply possibilities, availability if the raw and packaging materials, inventory management, import condition etc. After the assessment of the unconstrained demand, a supply review meeting is held between the supply-planning manager, the import-buying manager, the local and co-pack buying manager and the procurement executive. In this meeting a constrained demand is determined. Based on this demand the raw materials are ordered locally or imported. The production department and the contract manufacturers are notified about the quantity and the timing of orders.  Inventory analysis and timing of inventory are also function of the supply chain. As the raw materials are received, the production process keeps on going. The demand for the

products is transformed into production schedules and manufacturing takes place The procurement departments also monitors whether the raw materials and finished goods are supplied according to the right quantity within the right time. Procurement deals with the contract manufacturers to look after whether they are delivering the goods properly. The quality assurance department plays an important role throughout the whole process. They specify a certain quality level both for raw materials and finished goods. They are also engaged in checking and monitoring the quality of raw materials and finished goods and are responsible for any faultfinding and rejection.

After the production process, the finished goods are delivered to the depots directly from the Chittagong factory or from the contractual manufacturers. In fact there are seven contractual manufacturers working for Dettol Soap, Mortein coil, Robin Blue and Air Wick Incense Stick. From the factory 60% of the goods are delivered to Dhaka Depot and the rest 40% are delivered to the Chittagong depot. The contractual manufacturers usually send the goods to Dhaka, but occasionally, when requirement arises goods may also be sent to Chittagong from them. From Chittagong goods are supplied to the distributor in Chittagong1, Chittagong 2, Feni, Comilla Cox’s Bazar and a few other small towns nearby Chittagong and from Dhaka to the distributors in the rest of the country. If shortfall arises in Chittagong, which is a very rare situation, it is met by a supply of goods from Dhaka.

The Logistic Executive controls the Depot. He looks after whether the depots are functioning properly. A Logistic Assistant and a Depot Contractor, assist each Logistic Executive. The Depot Contractor works on a contractual basis and is not an employee of Reckitt Benckiser (Bangladesh) Limited Depot contractor is involved in loading and unloading goods, controlling the receipts and outgoing consignments, payments of labors and other miscellaneous payment. According to the demand of the distributors, they place order in the Headquarter. Then orders are sent to the depots in Dhaka and Chittagong. Then Logistics Department makes arrangement to transport the goods to the destination.