Final Project On “Production Operational Management” On the topic “Nestle Milk pak”

1. Final Project
On
“Production Operational Management”
On the topic
“Nestle Milkpak”
Presented To:
“Sir. Asad Hasan Butt”
Presented By:
Umer Shareef MCE-12163
Salman Anjum MCE-12157
Hafiz Ayaz Ali MCE-12148
Mutahir Bilal MCE-12147
Hina Anjum MCE-12112
Aasia Noren MCE-12173
Class M.Com
Semester 4th Evening
Superior University
Lahore.

2. Table of Contents
Acknowledgement.....................................................................................................................3
Executive Summary....................................................................................................................4
Introduction ................................................................................Error! Bookmark not defined.
Situational Analysis:....................................................................Error! Bookmark not defined.
PESTLE Analysis: ......................................................................Error! Bookmark not defined.
SWOT Analysis:........................................................................Error! Bookmark not defined.
Competitors Analysis ..................................................................Error! Bookmark not defined.
Supplier Network:.......................................................................Error! Bookmark not defined.
Input Process:..............................................................................Error! Bookmark not defined.
Bottle Manufacturing:.............................................................Error! Bookmark not defined.
Production Process: ....................................................................Error! Bookmark not defined.
Water filling in the bottles:.........................................................Error! Bookmark not defined.
Cap of Bottle: ..............................................................................Error! Bookmark not defined.
Packaging: ...................................................................................Error! Bookmark not defined.
Storage:.......................................................................................Error! Bookmark not defined.
Distribution: ................................................................................Error! Bookmark not defined.
Distribution Channel: ..............................................................Error! Bookmark not defined.
Target Market: ............................................................................Error! Bookmark not defined.
Production Capacity:...................................................................Error! Bookmark not defined.
SKUs of Sufi Water: .................................................................Error! Bookmark not defined.
Channel Flows............................................................................................................................4
Problems in the Processes:.........................................................Error! Bookmark not defined.
Small Suppliers:................................................................Error! Bookmark not defined.
Single bottle filling: ..........................................................Error! Bookmark not defined.
Electricity Problem:..........................................................Error! Bookmark not defined.
Limited Target Market: ....................................................Error! Bookmark not defined.
Prioritization of the Problems:....................................................Error! Bookmark not defined.
: ...................................................................................................Error! Bookmark not defined.

3. Acknowledgement
We are very thankful to almighty Allah who enables us to complete this project. Man
is not perfect in all the context of his life. Although today man is doing some difficult and
nearly impossible things, but his mind is still limited and has minor thinking approaches. It is
mercy of Almighty ALLAH who blessed man with mind and knowledge and make him able to
do a lot of things. HE is Almighty ALLAH who shows the man light in the darkness and man
finds his way to the light. Without blessings of Almighty ALLAH man is nothing but a helpless
Creature. Same is the case with us, we also face many difficulties during completion this
project and have been successful in my duty only because of the help of Almighty ALLAH.
We feel pleasure to admire of Sir. Asad Hassan, whose tireless efforts are fruitful for
the students and better educational atmosphere, We are also thankful to Mr. Muhammad
Fayyaz project support executive at nestle who helped us a lot to complete this project. We
are especially thankful to Superior University who provided us an opportunity to learn by
doing work on the project. We are thankful to all those people who help us a lot and
provided us an opportunity to understand and learn every aspect.

4. Executive Summary
This is an informative report on Nestle Pakistan Private Limited in this report we
have described how Nestle came into being internationally and in Pakistan. Through our
research we found out how much Nestle cares about its consumers. Good food Good life is
the principle they always follow. We have described the marketing strategies Nestle uses
and we have explained the performance of Nestle. Nestle Pakistan Limited, formerly known
as Nestle Milkpak Limited is a subsidiary of Nestle a company of Swiss origin headquartered
in Vevey, Switzerland. It is listed on Karachi and Lahore stock exchanges. For the 5 years in a
row, the company has placed among top 25 companies of the KSE. Its principal activities are
to manufacture process and sell food products. The food products include dairy, sweet and
cooking products, coffee and beverage and drinking water. The major brands include
Milkpak UHT, Nestle Everyday, Lactogen and Nescafe. Nestle has been serving Pakistani
consumers since 1988, when its parent company, the Switzerland-based Nestle, first
acquired a share in Milkpak Ltd. In line with its parent company's global philosophy, it is
proudly committed to excellence in product safety, quality, and value. Today, the company
is fully integrated in Pakistani life. And is recognized as producer of safe, nutritious and tasty
food, and leader in developing and uplifting the communities in which it operates.
In this report, we make the situational analysis of Nestle Milkpak which included the
SWOT analysis and PESTLE analysis, in SWOT analysis we focused on the Stength,
Weaknesses, Threats, and Opportunity of the company and in PESTLE analysis we focused
on the Political, Economical, Social, Technological, Legal and Environmental Factor that
effect the milk industry of the Pakistan. The report include brief introduction of the Nestle
Pakistan and Milkpak, at second stage it is shading light on the analysis been conducted,
later the detailed processing from supply chain to distribution of Milkpak. In the process
including
 Supplier
 Distribution
 Storage
 Packing
 Transfer of raw material
 Customer feed back
 Distribution claim
 Processing
At the problems has been identified related to Milkpak and latter suggestion has also
been given for the removal of these problems. And then draw the conclusion about the
Milkpak.

5. Introduction
Nestlé was founded in 1866 by Henri Nestlé and is today the world’s biggest food
and beverage company. Nestle employ around 250,000 people from more than 70 countries
and have factories or operations in almost every country in the world. The history of Nestle
began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his product
Farina Lacteal Nestle a nutritious gruel for children. Nestlé Pakistan Ltd is a subsidiary of
Nestlé S.A. - a company of Swiss origin headquartered in Vevey, Switzerland. It is a food
processing company, registered on the Karachi and Lahore stock exchanges and operating in
Pakistan since 1988 under a joint venture with Milk Pak ltd and took over management in
1992. For ten years in a row, the company has won a place among the top 25 companies of
the Karachi Stock Exchange.
Nestlé Pakistan now operates the biggest milk collection operation in Pakistan,
Currently; Nestlé Pakistan collects milk from an estimated 190,000 farmers spread over
145,000 sq Km's in the province of Punjab and Sindh.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key
focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout
Pakistan to serve the consumers. Nestlé Pakistan also prides itself in being the leaders in
Nutrition, Health & Wellness. Ever since 1867, when Henri Nestlé invented the first infant
food, nutrition has been in our DNA. Today more and more consumers mirror our emphasis
on nutrition, as they realize that food choices affect their health and quality of life.
Vision Statement
Nestlé’s vision of making good food central to enjoying a good healthy life for
consumers everywhere. This implies gaining a deeper understanding in many areas of
nutrition and food research and transforming the scientific advances into applications for
the company. Having a broad vision the company is doing its best for their consumers to
show the great sense of responsibility.
Mission statement
To positively enhance the quality of life of the people of Pakistan and all over the
world by all that we do through our people, our brands and products and our CSV activities.
Nestlé’s aim is to meet the various needs of the consumer every day by marketing and
selling food of a consistently high quality.
History and Bibliography of Nestle on
Attached Annexure

6. Goals & Objectives
Goals & Objective of Nestle Pakistan is Simple & well designed with the core strategy
to meet the demand of the consumers & to fulfil the needs of the customers.
The goals & objectives are;
 To be the best & quality brand in Pakistan
 To meet the needs & requirements of the consumers
 To capture the desired market share
 To dwell in to the life of people & consumers
 To be the number one nutritious company of Pakistan
Situation analysis
SWOT
Analysis
PESTEL
Analysis
Situation
Analysis

7. PESTLE analysis:
PESTLE
Political
Economical
Social
Technological
Legal
Environment

8. SWOT Analysis
1. Strength
Brand Name:
Milkpak is the product of Nestle.Milkpak is a trusted brand known throughout the
country for its nutritious wholesome goodness and pure natural taste.
Quality:
The quality of milkpak is superior and they continuously work to maintain the quality. They
believed that quality and persistent commitment t0 continuous improvement are essential
t0 our ongoing success.
UHT(Ultra Heated Treatment):
They used ultra-heated treatment to kill the spores in milk.UHT is the sterilization of food by
heating it for an extremely short period, around 1–2 seconds, at a temperature exceeding 135°C
(275°F).
Research and Development Department:
Research and Development Department continuously worked on innovation of milk process
and quality. For success of any product its requires t0 continually strive to produce break through
ideas that result in improved solutions and services t0 customers.
Strength Weakness
Opportunity Threats

9. Distribution Network:
Nestle MilkPak have very strong distribution network and its cover all over the Pakistan
Big Market Share:
The packaged milk category was originated in 1981 by (quaintly named) Milk Pak, which
pioneered tetra pack milk in Pakistan have big market share in food industry of Pakistan.
Packing:
Milk Pack was the first tetra pack introduced in Pakistan in 1981 with green and white
packaging .This green and white color associated with Pakistan’s flag.
Brand Loyalty:
Milkpak is the product of Nestle due to this its have large quantity of brand loyal customers.
2. Weakness
External sources for raw materials:
Milkpak depend on external sources for raw materials due to this same times they face
some problems.
Tetra Pak:
MILKPAK depend on Tetra Pak for the packaging of its entire dairy products. Tetra Pak is the
only option available for nestle milkpak packaging because its having monopoly in the packaging
sector in Pakistan. Due to this reason Tetra Pak can charge them higher price and could increase the
production cost.Low advertising and Marketing:
Milkpak require a stronger marketing campaign to challenge the decreasing product
awareness in the market and customers.
Weak implementation of CSR:
The company has announced and is involved in many programs that aim to make company
more eco-friendly and improving the working conditions of its suppliers. Still, Nestlé receives a lot
criticism over the effectiveness of its programs.
3. Opportunity
Develop its own farms:
Milkpak should develop its on farms its help to reduce the cost and maintain the quality of
milk.
Increased Government Funding/support:
Government of Pakistan decided to increase the farmers funding. This is an opportunity for
Milkpak because farmers will be better able to produce milk for longer time periods. Explore
support from the Government of Pakistan for in-country investment opportunities.

10. Strong Marketing and advertisement campaign:
With the help of store market campaign milkpak can increase its sales.
Credit policy:
MILKPAK should adopted some more credit polices to increase sales.
Suitable environment :
Pakistan is the seventh largest producer of milk in the world with annual output of over 22
billion liters. There are substantial growth opportunities considering the average yield of Pakistani
animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in Europe and
USA. There are nearly 20 million milk producing animals in the country.
4. Threats
Competitors:
Two main competitors Haleeb and Olpers are main threat for MilkPak especially the olpers is
growing.
New entrants:
Market segment growth could attract new entrants.
Political and economic issues
Economic slow down can reduce the demand and politically Pakistan is not a store country.
Religious Extremist:
Due to foreign origin company some religious extremist avoid to bus the NESTLE product.
Rising raw food prices:
With an overall growth of world economy and population, the demand for raw food will
rise. The result of that will be higher material costs and squeezed margin for Nestle.
Inflation:
Inflation is getting higher and higher so the purchasing power of the people is decreasing
day by day.

11. Competitor Analysis
No of Units Nestle
Price
Olper Price Haleeb Price
1000 Ml
500 Ml
250 Ml
Channel Flows on the
attached Annexure

12. Supplier network
1000 small village diaries:
 An agent runs the diary. It occupies a small room of about 20 to 30 m either in the
agents house or in a building that nestle’ rents.
 The milk collected on average is two times 150 liters per day
 The agent does a quick tasting test on the milk before recording the delivery in the
farmer’s personal milk logbook.
 The dairy is open two or three hours morning or evening.
 The agent transports the milk to one of the 972 secondary receptions and cooling
station before closing
972 secondary reception and cooling stations:
 These generally occupy about 40 m, divided into two rooms.
 One of these houses an electrically powered milk-cooling tank with a capacity of 600
to 2500 liters.
 Power cuts are frequent, so 95% of the stations have their own generator.
 An agent who also works as a milk inspector to run quality tests runs each secondary
station.

13. Main reception and cooling stations:
These constitute the final stage in milk collection before it is delivered to factories.
 It also fitted high capacity milk tanks.
 8 of them are equipped with plate heat exchangers for getting the milk re cooled
before transported to the factories.
 The quality analyses run as each tanker of milk arrives are more thorough than in the
secondary station.
 The 23 main stations also stores the laboratory supplies needed in the secondary
stations and village diaries.
 Link to the factories by telephone and Internet, the main stations act as the
communication and administration center for the entire collection system.
Milk Cooling Tanks:
Milkpak set up reception centre with cooling facilities where farmers and dodhies, small-
time milk merchants, could bring their wares. It was a simple solution, but difficult in practice:
importing the stainless steel chilled containers required was prohibitively expensive. By 1988, the
company purchased 120tons of milk a day from 26,000 farmers. After acquiring a share in Milkpak
Ltd in 1988, Nestlé immediately began investing in milk cooling tanks. Between 1988 and 1992, 100
milk tanks were installed.1992 onwards, with full support from the Nestlé headquarters in
Switzerland, reorganization of the milk collection operation and the provision of agricultural
technical assistance became top priorities. The investment paid off. Within a decade, Nestlé's
purchase of fresh milk had quadrupled, and the number of small farmers selling milk to Nestlé
tripled.
Milk Processing
Nestle Factories:
Our products are manufactured in five facilities scattered around the country, from
Islamabad in the north, to Karachi in the south. Two state-of-the-art multipurpose factories are
located in the agricultural heartland of the Punjab, and the remaining three are dedicated to
producing our trusted brands of bottled water. As citizens of Pakistan, we consider it our duty to
make sure that our manufacturing processes are clean, hygienic and safe.
We are constantly working to reduce emissions at our factories, reducing and treating
wastewater, and making our packaging environmentally friendly. Regular audits have confirmed that
our factories' environmental management meets the Nestlé international standard.
Sheikhupura Factory:

14. The factory commenced operations as part of Milkpak Ltd in 1981. At the time it produced
only UHT milk, but by 1988 had expanded to produce butter, cream and ghee, as well as fruit drinks.
 Milk filling machine TBA-22 (most modern and efficient and high speed equipment
available in dairy industry)
 National distribution centre was also constructed in 2000 with capacity to store 8300
pallets.
Kabirwala Factory:
In 1990, Nestlé Milkpak acquired the Kabirwala factory, located in Khanewal district of the
Punjab, as a subsidiary. By 1997 it was a fully owned unit of Nestlé Pakistan Ltd. 2006 has seen the
commencement of Kabirwala Extension Project that would be completed in April 2007 at a cost of
about Rs. 4.0 billion. The project has seen expansion of milk processing capacity to triple its current
size.
 In 2005 Fresh milk capacity was increased from 676 to 800 tons per day.
 In 2007 an additional raw and packing and semi finished product stored and a bigger
distribution centre, a stick pack filling machine and 1000 gr.
Processing
Milk Reception:
The Milk Reception Unit receives milk for a milk processing plant. The unit measures and
pumps the product for buffering or further treatment.
Heating & Cooling:
Heating and cooling are basic processes within dairy processing and take place in plate or
tubular heat exchangers. Tetra Pak heat exchangers have high thermal efficiency for low energy
consumption.
Standardization:
Automatic direct in-line standardization of milk. Accurate control of fat, fat/solids and non-
fat ratio gives better utilization and control of the production parameters.
 20% Iron
 41% Calcium
 18% Vitamin A
 20% Vitamin C
Pressurization:

15. Along with correct cooling, pasteurization is one of the most important processes in the
processing of milk. If carried out correctly, these processes will supply milk with longer shelf life.
Temperature and pasteurization time are very important factors which must be specified exactly in
relation to the quality of the milk and its shelf life requirements. The pasteurization temperature for
homogenized, HTST pasteurized, regular-grade milk is usually 72-75 °C for 15-20 seconds.
Nestle milkpak has 3 months of shelf life.
UHT Treatment:
UHT treatment is a thermal process for preserving liquid milk. UHT stands for Ultra High
Temperature and by heating to 137 – 140 °C for a very short time (2-10 s) the micro-organisms are
inactivated. If the milk is packaged under aseptic conditions it can be stored at room temperature
for months.
Packaging
Nestlé is committed to reducing the environmental impact of packaging, without the risk of
safety, quality or consumer acceptance of its products. As far as milk is concern packaging is very
important, it is perishable item which requires special packaging to preserve it for few months. To
meet this objective Nestle Milkpak use tetra Pak to deliver fresh milk to its customer without
sacrificing in health measures. Nestle have following objectives in mind regarding packaging:
 Result in the lowest possible weight and volume of packages while maintain pack
reliability.
 Take into account new packaging materials and processes that reduce the impaction
the environment of unnecessary transportation;
 Avoid the use of material that can adversely impact the environment during
packaging production and disposal
 Decrease packaging waste at all stages in the supply chain, including package
manufacturing, utilization and disposal
 Increase the use of recycled materials wherever possible, and increase the
recyclables and compatibility of packages with existing waste management schemes.
Transportation:
Logistics concerns finished milk movement from factory to different warehouses located in
different cities. The logistics deliver the milk form manufacturing factories at, kabirwala and
shaikhupura.

16. Distribution
According to the distribution, Pakistan is divided into three geographical zones and then in
further Regional Sales Offices.
MilkPak is not sold directly to consumers. A complete distribution process is followed.It uses
indirect channels for distribution like:
North Zone
•Islamabad and north outstations
•Peshawar
•Jhelum
Central Zone
•Lahore
•Faisalabad
•Gujranwala
•Multan
•ahiwal
South Zone
•Karachi
•Hyderabad
•Quetta
•Sukker

17. Distributors in Lahore
Promotion
Manufacturer
Distributor
Wholesaler
Retailer
Consumer
• Model Town
• Town Ship
Saeed Brothers
• Airport
• Ghazi Road
Zakir & Sons
• Muslim Town More
Deen Distributors
• Fatah Garh
SMR Distributors

18. Advertisement:
About 60% of promotional budget is spent on advertisement. Following are the different
Advertisement Medias used by Nestle to promote its product:
 Television
 Bill Boards
 Shelf show
 Print Media
 Radio
Sale Promotion Activities:
 Events:
The company conducts different sports event, fashion shows and schoolfunctions in which
they sale their product on discount prices. They alsogive their product to participants as a gift or
memorandum.
 Free Sampling:
On different events free samples are given to the people to attract the people towards their
products.
 Public Relations:
Nestle remains committed to Pakistan and is deeply engaged in there cent flood relief
activities. By the end of September, 2010 the Company has so far committed around PKR 24 million
Promotion
Advertisement
Sale Promotion
Activities
Public
Relations

19. to relief efforts in the shape of food to affected people, water tankers supplying clean drinking
waters, veterinary and vaccination support to cattle and other related relief.
In addition Nestle SA has donated PKR 20 million and Nestle employees from Pakistan and
other Nestle Markets have also donated additional PKR 7 million, bringing total contribution to PKR
51 million.
Market Segmentation
For getting the maximum market share and respect of the product in the minds of the
consumer, as per our observation and market survey we have concluded that Nestle MilkPak
segmentation is based on two points.
 Demographic Segmentation
 In-Store Display Segmentation
Demographic Segmentation:
Family, Age & Income:
Milk Pack has made different sizes of Tetra packs which can match theneeds of buyers,
ranging from 0.25 liters to 1.5 liter. Buyers can buyaccording to their need between these quantities.

20.  1 liter of Nestle milkpak has the major 55% of total sales.
 250 ml of Nestle milkpak has 25% of sales
 1.5 liter of Nestle milkpak has 10% of sales
 500 ml pf Nestle milkpak has 10% of sales
In-Store Display Segmentation:
Nestle have also segmented Milk Pack on the bases of In-Store display segmentation. I n this
type of segmentation the company have given different shelves in big stores and also given the
chillers to some of the agent
having the Milk Pack sticker
upon them but in Pakistan
unfortunately the shop keepers
are not using the shelves
properly and they have put
other brand products on those
shelves.
Problems
 Diseases
 Energy crises
 Credit policy

21.  Seasonal problem
 Religious matter
 External competitors
Prioritize the problems

22. Conclusions:
Nestlé Milkpak Limited is a gigantic organization. Basically it is a food concern emphasizing
on producing good food for good health. The seed Henri Nestlé had planted in 1866 is now a tree
which provides extremely qualitative food to billions of people all around the world. It is also
providing jobs to millions of people in more than 479 factories in 81 countries.
Nestle is a market leader due to different reasons:
 Its price is high against its competitors but it matches its quality with its competitors.
 Nestle is today the worlds largest food and beverage company with its mission to
provide healthier lifestyle.
 Nestle is using its brand name and its packaging is good to promote its products.
 We can easily find Nestle from any retailer shop
Energy crises
Diseases
External competitors
Seasonal problem
Religious matter
Credit policy

23. Annexure
Bibliography:
HISTORY
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A. - a company of Swiss origin headquartered
in Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock
exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak ltd and took

24. over management in 1992. For ten years in a row, the company has won a place among the top 25
companies of the Karachi Stock Exchange.
Headquartered in Lahore, the Company operates four production facilities. Two of its
factories in Sheikhupura and Kabirwala are multi product factories. One factory in Islamabad and
one in Karachi produce bottled water. Through its effective marketing and a vast sales and
distribution network throughout the country, it ensures that its products are made available to
consumers whenever, wherever and however.
Nestlé Pakistan operates in many ways but people, products and brands are the main flag
bearers of the Company’s image, and we continue to enhance the quality of life of people.
Nestlé Pakistan now operates the biggest milk collection operation in Pakistan, Currently;
Nestlé Pakistan collects milk from an estimated 190,000 farmers spread over 145,000 sq Km's in the
province of Punjab and Sindh.
Nestlé believes in creating shared value and is committed to the communities it works and
lives with. In Pakistan, the company is working closely with the communities in areas related to
Nutrition, Water and Rural Development, and continues to enhance the quality of life of people
throughout its value chain.
Nestlé Pakistan today is the leading Food & Beverages Company in Pakistan with key focus
on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to
serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health &
Wellness. Ever since 1867, when Henri Nestlé invented the first infant food, nutrition has been in our
DNA. Today more and more consumers mirror our emphasis on nutrition, as they realize that food
choices affect their health and quality of life.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture. Nestlé’s existing
products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term performance. The
Company’s priority is to bring the best and most relevant products to people, wherever they are,
whatever their needs are, and for all age group.

25. Channel Flows
There are some channel flows which show the flow of channel functions among themselves.
Physical Possession Flow:
In the above diagram, Nestle uses this channel flow for physical possession of MilkPak.
Producer transfers the possession of Milk to the other channel members and every channel member
does the same according to the upper mentioned flow.
Ownership Flow:
In the above diagram, Nestle uses this channel flow for ownership of Milk. Producer
transfers the ownership of Milk to the other channel members and every channel member does the
same according to the upper mentioned flow. This channel flow is from producer to customer.
Producer Distributer Wholesaler
Producer Distributer Wholesaler Retailer Customer

26. Promotion Flow:
In the above diagram, Nestle uses this channel flow for the promotion of Milk. Producer
does promotions of Nestle Milkpak for its end users. This channel flow is from producer to customer.
Negotiation Flow:
In the above diagram, Nestle uses this channel flow for negotiation between each channel
members. Every channel member negotiates with his relevant channel member regarding the
transactions and daily work. This channel flow is from producer to customer and customer to
producer as well.
Financing Flow:
In the above diagram, financing flow has been shown among channel members of Nestle
Milkpak distribution. Every channel member finances his relevant channel member in the
transactions and daily work. This channel flow is from producer to customer and customer to
producer as well.
Producer Distributer Wholesaler Retailer Customer
Producer Distributer Retailer CustomerWholesaler
Producer Distributer Retailer CustomerWholesaler

27. Ordering Flow:
In the ordering flow of Nestle Milkpak distribution channel, there is reverse flow in the
channel. Customers order to retailer for Milkpak and retailer orders to wholesaler for the demand of
water. Wholesaler orders to distributer and distributer orders to producer for Milkpak.
Payment Flow:
In the payment flow of Nestle Milkpak distribution channel, there is also a reverse flow in
the channel. Customers make payment to retailer for water and retailer makes payment to
wholesaler for Milk. Wholesaler makes payment to distributer and distributer makes payment to
producer Nestle Milkpak for Milk.
Producer Distributer Retailer CustomerWholesaler
Producer Distributer Retailer CustomerWholesaler