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ATTA Biscuit - Biscott From Unibic


 Unibic  Biscott  is now  popular atta biscuit  available  at  super markets and hyper market

Purchase Role In Bakery Operations

Purchasing role in any  organization is considered to be  important as  it handles raw material which in turns have significant cost  impact on material manufactured . Purchasing is key element of  supply chain management of  any bakery   more ever in  recent times as sourcing are done  from many countries .Bakeries  with robust purchasing department  and experts  give better results than others .

 Every bakery entity has got a procurement department or a executive who handles all purchases depending upon the size of the bakery unit  .Big bakeries  have multilocational purchase  unit or in some case purchases are made from central unit .

 Purchase department primary role is to  get  right material at right cost , from right buyer , of right quality and in right time .

 Major role of purchase are following for  any bakery operations 

 

  • Raw Material , Ingredients ,  packaging material & fuel  buying
  • Service  contract
  • Vendor  Development
  • Vendor Analysis
  • Value Analysis
  • Annual  Contract ( Plant  and machinery )
  • Capital Purchases .
  • Maintenance and Repair contracts
  • Payments  to vendor .
  • Inventory control
  • Negotiations & long term contracts
  • Scrap management -  Laminates , dough , carton , metals  from plan and equipment , oil and ingredients
  • Getting licenses for  storages etc.ie liasioning with govt depts
  • Imports
  • Maintaining and Updating Vendor Master.
  • Follow up  with  vendors for Delivery
  • Warehousing/Stores
  • Imports
  • Services contract ( Others  excluding   plant and machinery )
  • Legal and laws of contract
  • Purchase Orders and Other Documents ( Quotation , PO , Indents)
  • ERP -Data Analysis
  •  

Purchase department in bakery are  responsible  for selecting the best offer  considering various aspects such as vendors capacity ,quality , delivery ( purchase order requisition) followed by purchase dept  inviting quotation from suppliers  and selecting the best offer considering various aspects such as vendors capacity , quality , delivery schedule ,price and other factors .Purchase orders are released against requisitions . Material is delivered on specified date and location by the vendors.

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Multigrain Cookies From Kothari Foods LLP - Better Bite

 


BETTER  BITE      



Kothari  Foods   llp  a  delhi  based baker  had  launched many healthier    cookies   such as multigrain , oats ,ragi and fruits and nut  available on supermarkets and departmental stores  across Delhi



MARKET PLACE (TRADE ENQUIRY) - JELLY'S FOOD ART

 

CONTRACT MANUFACTURING  - GUJARAT , INDIA 


Company -  JELLY 'S FOOD  ART 

We have a cookie baking unit located at Anand, Gujarat. We want to a third party manufacturing unit.We have fssai certificate as well as GST number.If there is any opportunity for the same do let us know. 

We have different varieties of cookies- chocolate chips
Ginger dry fruit
Coffee dry fruit
Chocolate chunks

Contact
Company name- jelly's food art
Contact no - 8511901357





Top 10 Figures To Monitor Bakery Production Performance



                                              Chart - Illustration purpose only



Every bakery plant owner or  plant head needs to monitor these top 10 figures to  monitor production performance  of the  plant . Few companies depute independent factory cost control department with main objectives to  tabulate these figures to management and  to   target improvement . If you can measures things then you can improve  performance .


1 .Cost per unit ($/unit) -
Takes into  consideration  cost  of all factors such as labour ,fuel, electricity , raw material , packaging and  other miscl cost 


2.Man-hours/unit 
Number of labour employed per unit of  product normally in tonnes or kg  of product. Important cost factor in production cost of any  factory 


3. Units produced/unit time 

total production done in unit time could be in kg/hr or tonnes/hr 

4. Break down time (%)
Production stoppages due to machine or equipment failure against available running hours . 


5.Change over time ( min/hrs )
 Time  taken for  changeover of product from one sku to another.  It requires change of  moulders/cutters, recipes  and  packing  machine  settings. Changeover  should be minimum as this  results in loss  of  energy ,power and  idle  labour.The  best option is  to have dedicated lines  with least changeovers

 
6.Waste (%)   
Process  generates  waste  in  bakery operations  and can  be  categorized as waste in  mixing/premixing/forming /baking/packing /transportation



7. Defectives (%)  
Defective are  generated on equipment's   such  as  oven and  packing  machines.  Could be wet defectives or dry defectives  need to be segregated and measured before  recycling or discarding it in waste . Better to keep logs of defective at each equipment  to monitor the largest source of defective generation 



 8.Fuel consumption ( litres of hsd/gas /unit) 
Consumption of fuel  to produce unit of product basically fuels consumed  in  ovens/ and  power generation



9.Electricity consumption (kwh/unit) 
It measures the  amount of electricity consumed while producing  bakery products  . It includes power to run production machinery , utilities and admin block power consumptions . Thus  few loads are  variable but few are constant such as Utilities ( Compressors , Etp , Cold rooms, Chillers , Borewell. Lighting   etc   and admin  )



10. Inventory turnover ( %)
Its measure the cost of goods sold over average cost of inventory held . A low inventory turnover can show that company  has  low sales  hence large inventory where as higher value of  Inventory turnover  njumber  would suggest  faster sales  and low inventory of finished good .


Normally   most of the  bakery  companies  have    daily / weekly / monthly  review  of these figures
( data )  and steps  to  increase productivity and lower cost of production .

 

Unibic forays into wafer biscuit segment

While visiting one of the shopping centre near my residence I can find this unibic wafer biscuit pack promoted with one pack free with one. Wafer biscuit market is  in  nascent  stageIndian market have few players in this segment . Britannia ,Dukes,Tiffany,Nutro are few popular brands in Indian  wafer biscuit segment

Unibic  key  products are wire cut  cookies  and are dominant  player  in cookies segment .Unibic India is a  subsidiary of UNIBIC Australia, UNIBIC India Pvt. Ltd., has its factory and infrastructure in Bangalore with state of the art machines from Italy. 
  

Inventory Cost Control In Large to Medium Bakeries

Large to medium bakeries  needs to have inventory  cost  control system in place

What  are  inventory cost 

INVENTORY  PROCUREMENT  COST

  • Cost of order processing  from the  purchase indents  stage to accounts  and finally  to the delivery of item to the factory . Cost involves  the stationary , employee and the time spent on
    these activities.

  • Cost of transmission of orders  from purchase deptt  to suppliers , fax , telephones  cost of
    postages etc  with advent of internet  and erp  there has been considerable drop in these costs .

  • Cost  of  transportation  including freight , octroi , transit insurance  and protective packaging for the same

  • Cost of invoice ,book entries  and processing payments

  • Cost of  Inspection , handling , receiving

INVENTORY CARRYING  COST

inventory cost contraol in large to medium bakeries

  • Space  rent  for the storage  of goods

  • Cost of  Working Capital locked in the inventory

  • Cost of insurance of goods

  • Cost of spoilage of goods  in storage , breakages in handling

  • Cost  of  deterioration  and obsolescence of  goods due to passes of time

  • Cost of space utilized during the storage of the product

We don't give much of importance to inventory lying in our stores or warehouse . Its when

some consultants points out that we have blocked money in these stocks that we realize that something has to be done to cut cost of inventory . . Its important to monitor inventory of RM/PM/Engg spares and even Finished goods ( FG ) , If not done it can severely impact the bottom line of business . These steps are applicable for  all items used in bakeries which have considerable cost impact 

Inventory  are maintained for following items in large to medium  bakeries

a )  Raw material and ingredients

b) Packing material and consumables

c) Engineering / Plant  Machine spares and consumables 

d) General office and utilities spares  and consumables 

e)  Finished Goods


Reasons why  stores have large inventory  are 

1  Change  in  recipe  

2. Change in packaging due  to several reason such as marketing . price or legal compliance

3.  Rejection  at   any stage in process  after inspection 

4  Slump  in sales  

5. Wrong  specification s  given at  the time of order placement 

6  Due  to  supplies  constrains  one has  to  keep  inventory   of certain critical items 

7 Duplicate Indents 

Inventory  Cost Control  techniques 

 1. Codify all items which are kept as stock in stores or warehouse .Use any inventory management software to track stocks and movement from one center to another. 

2.  Install  ERP software such as  BAAN or SAP   for better control on inventory  if you are  large to medium unit 

3. Classify items by ABC so you know what are high value items and keep a tab on their consumption and procurement . Next focus on low value items .

 4. Examine value of items on basis of return on investment .

 5.Identify high stock out items and then adjust buffer stock on cost trade off basis 

6.Examine all items for safety stocks with respect of lead time , demand , stock out cost , carrying , ordering don't pile up stock intuitively 

6. Do physical stock verification periodically and eliminate dead stocks ,accept obsolescence write off for these items . 

7. Determine Economic Order Quantities of all items .thus eliminating chances of excess material  lying in store blocking capital 

8. Shift owner ship  of  storage to vendors /suppliers  with  Annual contracts /Replenishment contract with  fixed quantity order or as and when requirement .

Thus  plant management needs  to  audit and review  stores and warehouses in regular interval to check  inventory levels  of  goods lying in stores .


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Major National Organisation , Boards Linked To Food Processing

GOVT ORGANISATIONS


Here is the list of major organizations which helps government in policy making , monitoring ,research  and  promote  food industry 


 INTERNATIONAL 

  • Food And Agriculture  Organization(FAO) http://www.fao.org
  •  International Organization for Standardization(ISO) http://www.iso.ch 
  • International Plant Protection Convention http://www.ippc.int/cds_ippc/IPP/En/default.htm Office International des Epizooties (OIE) http://www.oie.int
  • World Health Organization(WHO) http://www.who.org 
  • World Trade Organization(WTO) http://www.wto.org 


 NATIONAL 

  • Ministry of Agriculture 
  •  Department of Agricultural Research and Education http://dare.nic.in
  •  Indian Council of Agricultural Research http://www.icar.org.in 
  •  Department of Agriculture and Cooperation http://www.agri.coop.nic.in
  •  Directorate of Marketing and Inspection (DMI) http://agmarknet.nic.in 
  •  Directorate of Plant Protection Quarantine and Storage 
  • Central Insecticides Board and Registration Committee http://cibrc.nic.in 
  •  Department of Animal Husbandry and Dairying http://www.nic.in/dahd/
  •  Integrated Fisheries Project http://ifpkochi.nic.in 
  •  Department of Atomic Energy http://www.dae.gov.in Bhabha Atomic Research Centre http://www.barc.ernet.in 
  •  Ministry of Commerce and Industry http://www.commin.nic.in
  •  Department of Commerce http://commin.nic.in/doc Agriculture and Processed Food Products Export Development Authority (APEDA) http://www.apeda.com 
  •  APEDA has registered with Food Products Exporters for certain food products  http://www.apeda.com/ecom/scripts/exp_dir_entry.asp 
  •  Cashew Export Promotion Council http://www.cashewindia.org
  •  Coffee Board http://www.indiacoffee.org 
  •  Directorate General of Foreign Trade http://dgft.delhi.nic.in
  •  Export Inspection Council (EIC) http://www.eicindia.org Export Inspection Council (EIC) registers exporters for exports of Commodities for which certification is compulsory.
  •  1) http://www.eicindia.org/eic/units/rice.htm
  •  2) http://www.eicindia.org/eic/units/black_pepper.htm
  •  3) http://www.eicindia.org/eic/units/marineproducts_1.htm 
  • 4) http://www.eicindia.org/eic/units/milk.htm 
  • 5) http://www.eicindia.org/eic/units/egg.htm
  •  Marine Produce Export Development Authority http://www.mpeda.com 
  •  Spices Board http://www.indianspices.com 
  •  Tea Board http://tea.nic.in http://www.teaindia.org
  •  Ministry of Consumer Affairs, Food and Public Distribution http://www.fcamin. nic.in
  •  Department of Food and Public Distribution http://www.fcamin.nic.in/civil_ind. html 
  • Directorate of Sugar http://www.fcamin.nic.in/sugar_ind.htm
  •  Directorate of Vanaspati, Vegetable Oils and Fats http://www.fcamin.nic. in/sugar_ind.htm 
  •  Department of Consumer Affairs http://www.fcamin.nic.in/cons_ind.htm 
  •  Bureau of Indian Standards http://www.bis.org.in 
  •  Ministry of Defence http://mod.nic.in
  •  Defence Food Research Laboratory (DFRL) http://www.drdo.com/labs/dls 
  • Ministry of Environment and Forests http://envfor.nic.in 
  •  Ministry of Food Processing Industries http://www.mofpi.nic.in/ Ministry of Food Processing Industries regulates FPO. The list of Licences under FPO. http://www.mofpi.nic.in/venturesetup/licensing/licensing.htm
  •  Prevention of Food Adulteration Act http://mohfw.nic.in/pfaact.pdf
  •  http://wcd.nic.in Ministry of Science and Technology http://www.mst.nic.in
  •  Department of Biotechnology http://www.dbtindia.org 
  • Research Institutions Bhabha Atomic Research Centre http://www.barc.ernet.in 
  •  Central Food Technological Research Institute (CFTRI) http://www.cftri.com 
  •  Defence Food Research Laboratory (DFRL) http://www.drdo.com/labs/dls/dfrl/index.shtml 
  •  Industrial Toxicology Research Centre (ITRC) http://www.itrcindia.org 
  •  Indian Council for Medical Research (ICMR) http://www.icmr.nic.in
  •  National Institute of Nutrition (NIN) http://icmr.nic.in/000229/nin.htm 
  •  National Dairy Research Institute http://www.ndri.nic.in Industry 
  • Associations Confederation of Indian Industry (CII) http://www.ciionline.org 
  •  All India Food Processors' Association (AIFPA) http://www.aifpa.com 
  •  Confederation of Indian Food Trade and Industry (CIFTI) http://www.cifti.com
  •  Consumers Organizations (Members of NCC) 
  • Consumer Education and Research Centre (CERC) http://www.indiatrade. com/cerc Voluntary Organization in Interest of Consumer Education (VOICE) http://www.consumer-voice.org Consumer Unity and Trust Society (CUTS) http://www.cuts.india.org
  • Niftem  http://iifpt.edu.in

Opinion Poll


Bakerybazar.com  team is thinking in terms of  establishing a  e commerce  platform for  opening of online store  or  platform  for various products .  Options available are 

1. Sell bakery products like  cookies, biscuit , cakes , wafers and rusk ( toast bread )

2. Sell  E books , articles , reports 

3. Machinery spares , consumables , moulds and pans , machines 

4. Food additives , colors , ingredients

5. Packing material like tapes, pvc trays , laminates etc 

Please share your  opinion  on  products you  would  like  to buy  ( go to the link )

Opinion Poll

OR  

Put  your comments  into comment box 

Thanks for your input

Contact Us - bakerybazar@gmail.com

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