Top 10 Figures To Monitor Bakery Production Performance
Unibic forays into wafer biscuit segment
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
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 .
baking oven mixers packaging machines learn more on bakery business
Major National Organisation , Boards Linked To Food Processing
- 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
- 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
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