MIS REPORT ON PURCHASE DEPARTMENT BISLERI MINERAL WATER COMPANY Pvt. Ltd.

Submitted by SUMEDH SAWANT

HISTORY OF BISLERI
In 1967, Bisleri an Italian company, started by Felice Bisleri, first brought the idea of selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh Chauhan, the Chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged drinking water was available in glass bottles. Parle sells bottled water under the "Bisleri" label, which is one of the country's top selling brands of bottled drinking water. It was around the year 1995, when Parle Exports took charge of the brand operations and the business took off in the market. With factories across India and a strong distribution network, Bisleri established itself as a force to reckon with in the domestic packaged drinking water market. Earlier the packaged drinking water market consisted of five star hotels, tourists and foreigners. As a marketing strategy, a conscious decision was taken by the company that only 40% of the sales should come from these outlets and 60% from general market. i.e. paanwallas, street shops, general stores and even non-tourists. In 1998, a strategy was adopted to concentrate aggressively on the home market. The habit of boiling water or using electronic gadgets was not adequate, since the source of water itself was unreliable. The bulk packages like the 2, 5 and 20 litre bottles were introduced to meet this market need. The price per litre went down as a result, making bottled water very economical for the consumer. This brought about a sea change in the perception in the consumer's mind about consumption of Bisleri. Earlier, drinking bottled water was considered to be more of a status symbol. That thinking has slowly changed to the point where today, not drinking Bisleri is considered as being behind the times. Such has been the presence and penetration of the Bisleri brand in the bottled water segment. Being a returnable package owing to various other problems such as breakage and weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was introduced, things started to change, and sales increased rapidly. The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca and Gold Spot. Recognizing the potential of the packaged drinking water market, he then went on to concentrate on making Bisleri a top selling brand in India.

Technology
To make sure that the product that reaches the consumer is always high quality and also meets international standards, Bisleri has always been involved in improving its product packaging. One such recent development is the tamper proof break away seal. Bisleri also recognizes the need to produce environment friendly products and is working on the PET project. The break away seal Keeping in mind the consumer's need to recognize a genuine product that cannot be tampered with, Bisleri developed the break away seal. The unique cap has been patented and cannot be duplicated or tampered with. This technology development in the product ensures that the consumer will only get a highly safe product when they consume Bisleri packaged drinking water.

Product packaging To ensure purity of the bottled water, the bottles that are used are blown and filled at the factory itself, to avoid contamination.

The PET recycling project Bisleri is extremely conscious of environmental issues, since PET bottles are not biodegradable and not easy to dispose. The company is currently working on the PET recycling project, where they will collect bottles from various places, crush and shred them. This shredded material will then be made into ropes, PET containers for the non-food industry and other PET items like polyester fibre, flower vase, gift items etc.

MIS for Purchase dept

The Purchase department of Bisleri deals primarily with the suppliers of the raw materials, stores department, accounts department and production department. The following are the regular stocks required by the company. PET Resins (for bottles) Cartons (for Packing) Labels (for Identification) HDP & LLDP (for Caps) Stationery & Advertising Material Earlier the company used to import the raw material as local manufacturers did not measure up to their standards. The first local company, which became their major suppliers, was Pearl Plastics Pvt. Ltd. There were other suppliers who could not maintain the required standards and were therefore changed from time to time. Reliance became their steady supplier since 2000. They satisfy all the requirements for PET Resins, which is a high value material, also supplying the raw material for caps.

ORGANISATIONAL LEVEL CONTEXT DIAGRAM

Quotations Suppliers Raw Material

Payment Quotations, Purchase Order

Purchase System

Bisleri being a manufacturing company, the Purchase Department has to interact with primarily Stores, Production and Accounts departments. The processes in the purchase department are described below: The production department gives daily production data to stores-in-charge, who keeps a stock of the inventory levels daily. For a particular month, store prepares a raw material requisition slip, a copy of which is sent to the Purchase Dept. Head and to the Production Dept. in-charge, for verification and signatures. The signed document is retained and copies are again sent to them for further action. The Purchase Department then prepares a schedule of the inventory supply dates. The Purchase Orders are prepared by the purchase department and signed by the unit head. Purchase order is then sent to the suppliers by fax or courier. A copy of the purchase order also goes to the Accounts department. Purchase head does any modifications in the Purchase order and he then sends a letter to the supplier to inform him about the changes to be brought about. When the raw material comes, it is then checked at the security gate by the security officer. He then checks the invoice & bill copy and an entry is made in the gate entry book. A sample of the batch is taken by the stores and sent to the Quality Check Department. Upon approval, Quality control Dept. sends a Quality Control Report to stores, and unloading or loading is done on FIFO / LIFO basis. A Delivery Challan (Goods receipt Note) (prepared by the supplier), is signed by the truck driver and the stores manager. Copies of the Delivery Challan is then retained by the store and also given to the driver and at the gate while leaving. If goods are unsatisfactory, then a Goods Receipt Note is stamped as rejected and sanctioned by the production-in-charge (what is accepted, rejected, etc.). The Invoice along with Excise Bills plus Delivery Challan goes to the Accounts Department. The Accounts Department checks the Bill along with the Purchase Order and schedules the payment to the supplier as per the terms and conditions mentioned therein. The Accounts Department also gives a weekly report to the Purchase Head. A monthly report is prepared by the Purchase Head, which goes to the unit head. This monthly report contains information about the contributions by the purchase department to reduction of costs, and similar cost sensitive information. Also, the routine work done during the month and the balance payments, etc is attached along with the report.

USER LEVEL CONTEXT DIAGRAM

10 Signed Copy of GRN, INV, Excise Bill

10 GRN, INV, Excise Bill Material Requisition 1 Slip Material Issue Slip, Raw Material

Unit Head
Sanctioned P. O 5 3 P.O for Sign 4 Weekly Report 4 Copy of P.O Approval

Production Dept

Stores Dept

Requisition Slip 10 INV/Challan

Purchase Dept

Accounts Dept
12

2
Quality Check Report 8 9 Unload RM on approval of QCD 11

Quotation

Copy of DC

Acceptance, Pay Order (P.O) 4 1

Quality Check Dept

Sample of RM for Check 7

Security

Raw Material, Inv/Challan

Supplier

DATA FLOW DIAGRAMS

1.0
Purchase procedur e

2.0
Issue

1.1
Purchase indent process

1.2
Raw material receiving process

1.3
Accounting process

1.2.1
Raw material return process

1.1 Purchase indent process

Purchase indenting

Sanction of requirement
Production department

Raw material requirement Stores Purchase indenting

Sanction for purchase

Quality Control Dept

RM Acceptance

Sending Sample RM
6
Gate Entry Book

Copy of RM Acceptance

2.1
Raw

Security Registration Gate

Unload RM

Material Receiving Process

8
9 1 Asking Approval of Purchase Order Unit Head Giving Approval of Purchase Order
2

Sent Raw Material

4 Suppliers

Acknowledgement of RM Acceptance

Requirements Sent 3

Purchase Dept

10

2.0
Supplier Goods

Slip issue Issue R.M Production

Issue

Sends Requisition

11

Sending Purchase Order Purchase Department

1.3 Accounts

Inform R.M Reacquisition

Stores

Acknowledge

Payment

Supplier

12

1.2.1

Goods

Raw materials return

Goods +GRN

Suppliers

Remarks as reject

GRN (Goods rejected)

Production

13

DOCUMENTS

14

Raw Material Requisition Slip

PACK SIZE

QTY TAR GET

PREF ORM

LAB EL

CAR TON S

CUP

LID

RESI N

200ml 300ml
400ml RLY

500ml

Production In charge

Head of Purchase Dept

15

Gate Entry Book

Bill no/ GE no Date of Bill/ Chall an
Name of the Perso n bring ing Mart erial

Challa n no

Vehi cle

Name of the Suppl ier

Time In

Time Out

Qua ntity

Parti cular s of the Mate rial

Rem ark

16

Delivery Challan
Phone No Suppliers Details Purchaser Details

S No.

Ply

Item

Size of the Box

No. of Package s

Art Content per Package( pieces)

Total Qty

Stamp of Gate Entry Date: ________ For Supplier Receivers Signature With Stamp

17

Goods Receipt Note

GRN No.:_________ Issue Date:____________ Doc No.:____________ Goods Receipt Note Date:_______________ Suppliers Name: ___________________ Challan No.__________ ___________________Cash/Memo No: _______ P.O No.________ P.O Date: _______

Mater ial Code

Descri ption

Qty Order ed

Qty Recei ved

Reaso n for Rejec tion

Qty Accep ted

Qty Rejec ted

U/M

Rate

Exten ded Value

Accou nts

Store Keeper____________ Stores A/C Clark____________

Inspected By_______________ Date: ___________

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PURCHASE ORDER

Sr.No

Item Description

Qty

Rate

Total

Date

Specification

Purchase Order No

Supplier No

Date Of Delivery Place Of Delivery

Signature

19

LIST OF DOCUMENTS & REPORTS

DEPARTMENT 1.PURCHASE DOCUMENTS & REPORTS DOCUMENTS: A) Tender .. B) Purchase Order. REPORTS: A) Monthly Report B) Vendor Analysis Report 2.PRODUCTION DOCUMENTS: A) Raw Material Requisition Slip.. REPORTS: A) Daily Production Report. 3.STORES DOCUMENTS: A) Material Issue Slip B) Gate Entry Book C) Delivery Challan D) Goods Receipt Note Production Security / Account Supplier Supplier / Prod / Account Stores Inventory Control Control Document Control Document Control Document Stores Stores Control of Material flows. Evaluate progress of daily activities. Update Stock Levels Unit Head Unit Head Suppliers Supplier(s) To receive Quotations, For Vendor Development For Scheduling of Supplies Cost Control and planning To identify new Opportunity in market TO PURPOSE

4.QUALITY CONTROL 5.ACCOUNTS

REPORTS: A) Test Report REPORTS: A) Weekly P.O. status Report

Input Quality Control Supplier assessment Funds analysis and Purchase planning

Purchase

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