Company Project Report

Supply Chain At Al Wasl Water Purification LLC.

Submitted by: PrateekKarnadhar (SMBA09051) Ankur Sharma (SMBA09012) Sam Tarkeshi (SMBA09059 )

CERTIFICATE

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CERTIFICATE

We hereby certify that the project work done under Al Wasl Water Purification LLC which is being presented in this respect entitled:Supply Chain at Al Wasl is an authentic record of our work carried out for a period of eight weeks under the guidance of Mr. Laquiddin, General Manager,AlWasl Water Purification LLC, Dubai.

Ankur Sharma PrateekKarnadhar Sam Tarkeshi MBA (Class of 2009-11) Institute of Management Technology, Dubai

We hereby declare that the above information given by us is true & correct to the best of our knowledge and belief.

(Mr. Laquiddin) General Manager Express Flexi-Pack, Dubai United Arab Emirates

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Acknowledgement

I owe gratitude to many employees of Al Wasl Water Purification LLC,Dubaiwho supported us throughout the company project. My sincere thanks to Mr. Laquiddin,General Manager to have provided this opportunity of company project with Al Wasl Water Purification LLC,Dubai. This report would not have been possible without the rich inputs of my mentor Mr. Ali, Marketing Managerand Mr. Aslam, machine operator, who lived the role of a mentor in letter and spirit. Their guidance helped me to take the right direction while working on the project. Without their guidance it would have been very difficult to complete this work. Lastly I would like to thank Dr. Waheed, Marketing Professor at IMTDubai for his support and guidance. From time to time he guided us through our company project with his valuable points and knowledge.

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Executive Summary

"To run effectively, a water packaging firm must cope up with an extremely competitive and complex market environment." The growing market competition between water packaging firms in Dubai, UAE has resulted into adoption of new strategies in order to survive in the long run. The microstructure is in which water packaging firm work is highly competitive and complex. For consumersit's always a difficult to choose the right one among different water products available in the market. Majority of water packaging firms offer similar products with almost same prices and hence leaving people perplexed/confused. Now, it's "Supply Chain Management" which plays an important role when it comes to provide market responsiveness and placing the product at the right price. How Supply Chain Management is used as a tool to develop strategic view among the employee and the company in terms of competitive advantage. Now when the company has brought a new change in its "Product Line by introducing200ml water cupin year 2009 then what would be its new strategy to compete against top water packaging firms?

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Table of Contents
1. Introduction6 2. Company Profile6-7 3. Products 3.1200ml Water Bottle 8 3.25 Gallon Water Bottle 8-9 4. Supply Chain Management ..9-19 5. Methodology..19 6. Current Supply Chain Network 6.1200 water cups ...20-21 6.2 5 Gallon water bottle......21-22 7.Benchmarking..22-24 8. Issues and Recommendations.25-26 9. References.........27

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1.

Introduction

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. These functions include new product development, marketing, operations, distribution, finance, and customer service. A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages. Example, Wal-Mart provides the product, as well as pricing and availability information, to the customer. The customer transfers funds to Wal-Mart.WalMart convey point-of-sales data as well as replenishment order via trucks back to the store. Wal-Mart transfers funds to the distributor after the replenishment. The distributor also provides pricing information and sends delivery schedules to Wal-Mart. Similar information, material, and fund flows take place across the entire supply chain.

2.

Company Profile

The Express Group is based in Dubai, the United Arab Emirates (UAE). The Express Group is an integral part of this vibrant society. Express Group has been celebrating with the growth of UAE for over 25 years. In 1978, along with printing, we pioneered the packaging industry in UAE. We feel both humbled and awed that today, we are one of the leading Printing & Packaging houses in the UAE. Like UAE, our vision and full potential is yet to be realized. This is only the beginning! Over the years we have added several new services to complement your needs so that we may provide you robust, end-to-end set of solutions. Along with Printing & Packaging, you can rely on us to service your needs in flexography, carton production including corrugation,

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paper retailing, publishing, marketing, communications, branding, design solutions and manufacturing of pens. We are also the exclusive national franchise for Kompass International SA, France, making us a part of the United Nations Industrial Development Organization (UNIDO). From labels to magazines, and from profiles to packaging, the Express portfolio of services extends the entire gamut of printing and publishing - on paper, parchment, polyester and more. While support services include English and Arabic typesetting, graphic design and innovative commercial printing, complementing services include the branding of products, its packaging and presentation; creating corporate identities; retail merchandising and publishing, and electronic publishing on diverse media including CD-ROM, DVD and the web. These policies and procedures have resulted in three of our companies getting ISO 9001 and the others are in the process of being certified. The Group ABDUL QADIR MOHAMED GENERAL TRADING CO. (L.L.C) EXPRESS PRINTING SERVICES (L.L.C) EXPRESS PRINT (L.L.C.) EXPRESS PACK PRINT EXPRESS FLEXI PACK EXPRESS ENGINEERING AL WASL WATER PURIFICATION PARK LANE PUBLISHERS LTD. EXPRESS INTERNATIONAL FZCO EXPRESS PAPER FZCO

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3.

Products

3.1 200ml Water cup

Al Wasl takes raw water from Dubal water and then stores this water into its storage tank. Than process of filtration take place they use sand filter, carbon filter than process of pre filter of 5 micron is used after that process of reverse osmosis is conducted after this minerals like sodium bicarbonate, Calcium Carbide, Magnesium Sulphate are injected to maintain the TDS level in water, Ph level maintained is 7.5, TDS level maintained is 100 which is standard it should not be below than that and should not be greater than 500. This mineral water obtained is again passed through filter of 1 micron after all this ozone is injected into water to make it bacteria free. After water is prepared than it is filled into cups. These cups are produced in Al Wasl itself for producing cups they take Pet sheet from IRD and Interplast Company limited, also they take aluminum led from Express flexi pack and finally when cups are ready they are placed manually in cartons which are obtained from Express pack print. The shelf life of cups is 1 year. Al Wasl produces around 2000 cups daily. Cups are distributed to SMEs, Residences, Resellers (Grocessory, Supermarket, Exporters). Distribution takes place through own trucks they have 8 trucks. Water cups are the major source of business in Al Wasl as they have fewer competitors around 12.

3.2 5 Gallon Water bottle

Al Wasl takes raw water from Dubal water and then stores this water into its storage tank. Than process of filtration take place they use sand filter, carbon filter than process of pre filter of 5 micron is used after that process of reverse osmosis is conducted after this minerals like sodium bicarbonate, Calcium Carbide, Magnesium sulphate are injected to maintain the TDS level in water, Ph level maintained is 7.5, TDS level maintained is 100 which is standard it should not be below than that and should not be greater than 500. This mineral water obtained is again passed through filter of 1 micron after all this ozone is injected into water to make it bacteria free. Than this water is placed into poly carbonate bottles which are
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obtained from National FMPC and Emirates plastics, Caps are acquired from ATM Enterprise, Slew/Shrink used to cover the top of bottle is obtained from Al Mahati Traders. Around 1200 bottles are produced daily than these bottles are loaded and unloaded is done manually with racks, a small truck carries 25 racks and a big truck carries 32 racks. The shelf life of bottle is three months and this bottle can be used 18 times after that it has to be disposed. Bottle is washed 14 times before being reused. Al Wasl follows FIFIO i.e. First in first out policy for its products. Bottles are collected from customers by helper which goes along with Truck drivers. Orders for the products are taken on phone and are passed to drivers which are on field. A big truck can carry around 192 bottles while small truck can carry around 144 bottles. Water bottles produce more profits but they have many competitors around 5o so they have to face a tough competition in this.

4.

Supply Chain Management

Supply Chain A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also

transporters, warehouses, retailers, and customers themselves. Within each organization, such as manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. These functions include new product development, marketing,

operations, distribution, finance, and customer service. A supply chain is dynamic and involves the constant flow of information, product, and funds between different stages. Customer is an integral part of the supply chain. The primary purpose from the existence of any supply chain is to satisfy customer needs, in the process generating profits for itself. Supply chain activities begin with a customer order and end when a satisfied customer has

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paid for his or her purchase. The term supply chain conjures up images of product or supply moving from suppliers to manufacturers to distributors to retailers to customers along a chain. It is important to visualize information, funds, and product flows along both

directions of this chain. The term supply chain may also imply that only one player is involved at each stage. In reality, a manufacturer may receive material from several suppliers and then supply several distributors. Thus, most supply chains are actually networks. It may be more accurate to use the term supply network or supply web to describe the structure of most supply chains. A typical supply chain may involve a variety of stages. These supply chain stages include: Customers Retailers Wholesalers/Distributors Manufacturers Component/Raw material suppliers

Supply Chain Strategy Supply Chain Strategy is a long term plans to set-up the supply chain to deliver an appropriate level of service to its customers at minimum cost.Supply chain management operates at three levels; strategic, tactical and operational. At the strategic level, company management makes high level strategic supply chain decisions that are relevant to whole organization. The decisions that are made with regards to the supply chain should reflect the overall corporate strategy that the organization is following. The strategic supply chain processes that management has to decide will cover the breadth of the supply chain. These include product development, customers, manufacturing, vendors and logistics.

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Product Development Senior Management has to define a strategic direction when considering the products that the company should manufacture and offer the product to their customers. As product cycles mature or products sales decline, management has to make strategic decisions to develop and introduce new versions of existing products into the marketplace, rationalize the current product offering or whether develop a new range of products and services. These strategic decisions may include the need to acquire another company or sell existing businesses. However, when making these strategic product development decisions, the overall objectives of the firm should be the determining factor. Customers At the strategic level, a company has to identify the customers for its products and services. When company management makes strategic decisions on the products to manufacture, they need to then identify the key customer segments where company marketing and advertising will be targeted. Manufacturing At the strategic level, manufacturing decisions define the manufacturing infrastructure and technology that is required. Based on high level forecasting and sales estimates, the company management has to make strategic decisions on how products will be manufactured. The decisions can require new manufacturing facilities to be built or to increase production at existing facilities. However, if the overall company objectives include moving manufacturing overseas, then the decisions may lean towards using subcontracting and third party logistics. As environmental issues influence corporate policy to a greater extent, this may influence strategic supply chain decisions with regards to manufacturing.

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Suppliers

Company management has to decide on the strategic supply chain policies with regards to suppliers. Reducing the purchasing spends for a company can directly relate to an increase in profit and strategically there are a number of decisions that can be made to obtain that result. Leveraging the total companys purchases over many businesses can allow company management to select strategic global suppliers who offer the greatest discounts. But these decisions have to correspond with the overall company objectives. If a company has adopted policies on quality, then strategic decisions on suppliers will have to fall within the overall company objective. Logistics The logistics function is a key to the success of the supply chain. Order fulfillment is an important part of the supply chain and company management need to make strategic decisions on the logistics network. The design and operation of the network has a significant influence on the performance of the supply chain. Strategic decisions are required on warehouses, distribution centers which transportation modes should be used. If the overall company objectives identify the use of more third parties subcontracting, the company may strategically decide to use third party logistics companies in the supply chain. Developing a Supply Chain Strategy y Understand the Business Strategy

The first step is for supply chain executives to clearly understand how the enterprise chooses to compete. It forces the supply chain operation to see itself as a customer facing entity serving the competitive goals of the enterprisenot merely an operational department. Supply chain strategy is not simply a linear derivative of the business strategy. At best, supply chain strategy can be the enabler of the business strategy. If the business strategy is to be the low cost provider, the supply chain strategy should support this. And just like when developing a business strategy, look to core competencies, focus, and means of

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differentiation when developing a supply chain strategy. Being able to strategically source parts at an attractive price may support both your supply chain strategy and business strategy, but only if you have the capabilities to do so effectively. Look to your supply chain competencies and leverage what you do well. You may want to focus on a particular market or segment in which to gain supply chain efficiencies. Or you may want to differentiate your organization operationally by providing lower costs to customers or providing services that other industry players are unable to do.

Assess the Extended Supply Chain

The next step is to conduct a detailed, realistic assessment of the capabilities that exist within the organization and even the extended supply chain. Begin by closely scrutinizing your organizations assets and evaluate how well they support the strategy. Old machinery and disparate systems may mean high operational overhead and costly process inefficiencies and redundancies clearly not supportive of a low cost provider strategy. A formal supply chain assessment by a non biased outside party may assist you in better understanding your operational strengths and opportunities for improvement. Look for a firm that can provide you with operational benchmarks both inside and outside of your industry in order to measure core competencies. Once the assessment is complete, assemble a team to review and prioritize recommendations, validate the opportunities, define the risks, and the requirements for implementation. Ultimately, if there is a disparity between the supply chain strategy and the operational assets, you may have to make capital investments. The other alternative is to change your assumptions and alter your strategy all together.

Develop an Implementation Plan

The development of an implementation plan should include activities and tasks, roles, responsibilities, a corresponding timeline, and performance metrics. Establish a sub-team to guide the execution and provide project management responsibility to resolve issues and track status.

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Development Considerations

Cooperate and Collaborate with your Partners throughout the development process remember to include your supply chain partners. While you dont necessary need to disclose the full details of your strategy, you can certainly communicate how you would like to do business. Ideally, seek out mutual goals that both organizations can execute on. Not only will you be one step closer to realizing your supply chain strategy, you will learn more about the companies that you do business with. For example, collaboration in product design may meet your need to stem R&D costs and also alert you to new product concepts that you wouldnt discover without working with your customer. Part of developing a supply chain strategy includes evaluating opportunities to outsource areas that are not your core competency. If someone else can do it cheaper, it may be worth outsourcing not only to drive down costs, but also to focus more resources on the core competencies you organization does well. Objective of supply chain management Reducing operating cost Efficient supply chain management will decrease the firms operating costs; manufacturing costs, transportation costs and distribution cost. The classic supply chain approach has been to try to forecast future inventory demand as accurately as possible, by applying statistical trending and "best fit" techniques based on historic demand and predicted future events. The advantage of this approach is that it can be applied to data aggregated at a fairly high level, requiring modest database sizes and small amounts of manipulation. Unpredictability in demand is then managed by setting safety stock levels. Firms applying demand forecast methods accurately are able to predict the future demand more precisely which automatically leads to decrease in excessive production and decreases the manufacturing cost of the firm. Supply chain management refers to the management of a distribution channel across organizations. All the members of the channel, from suppliers to end users, coordinate their business activities and processes to minimize their total costs and maximize their effectiveness in the market. The goal is to achieve the coordination and continuity of a
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vertically integrated channel without centralized ownership of the entities comprising the channel. The firms in the channel form a long-term partnership or strategic alliance in order to improve service to the end consumer, reduce channel costs, and create a competitive advantage. Supply chain management can be contrasted with a traditional distribution channel in which firms deal with one another on a short-term, arm's-length basis, with each one trying to maximize their own gain from each transaction. Without supply chain management, the relationship between firms in the channel lasts only from transaction to transaction. Most organizations in the traditional channel do not really see themselves as part of a vertically integrated channel. They only see themselves as independent businesses that buy from suppliers at the lowest possible price and sell to customers at the highest possible price. Diseconomies caused by redundancies, particularly of inventory, are common in such a channel. By looking across the entire channel, supply chain management tries to eliminate these redundancies. In contrast to manufacturing and distribution cost which should be reduced to achieve the optimal supply chain cost, the transportation cost increase moves in the opposite direction.A organization who wants to reduce supply chain costs need to spend more on transportation. The key to lower supply chain costs is holding less inventory. Buying more transportation lets you reduce inventory safely. The greatest mistake that manufacturers make today is equating transportation cost reductions with total available supply chain savings. In fact, transportation savings do not even correlate with overall supply chain savings. The largest economies come from inventory reductions that often result from buying more transportation.

Compressing order cycle time Whether you are a 3PL, manufacturer, wholesaler, distributor, retailer, importer, exporter, supplier, customer, logistics service provider or other type of firm that participates in supply chain management, a major key to success is time compression. Increasing velocity, rapid response to changing market conditions, minimizing time and sustaining that velocity--are

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the reasons for collaboration, integration, supply chain visibility and other endeavors to accelerate the movement of product and information. There are numerous financial and non-financial cycle time metrics, for example on-time customer order delivery, manufacture to order complete, cash conversion cycle and days sales outstanding. A good one should be a measure of the length of time for a process, especially one that crosses the organization. The cycle time metric should be important to the company. It should recognize pain points or should add value and competitive advantage for the company. A key process that crosses the organization is a day in inventory that measures the number of days that inventory is held. For manufacturers this would include raw materials and work-in-process. Days-in- inventory is an important part of the cash conversion cycle. Reducing inventory levels and days of inventory improves profits and frees up needed capital. To become more conversant with the information technology IT is the enabler, facilitator and the linkage that connects and integrates the various components and partners of the supply. The agility and competiveness of any supply chain depends on the systems and supply chain information technology used to plan, collaborate, monitor and execute processes. Supply chain systems projects cannot achieve their full potential unless operational best practices and systems integration play a leading role. One significant impact of IT relates to the quality of information available within the supply chain. Company can develop Web-based programs or intranets to distribute information, such as about new products, delays or changes. IT allows everyone in the supply chain to be integrated and thus, stay informed, which when used appropriately can translate into management efficiency and reduced risks. To develop more intimate knowledge of the customer As one of the worlds largest industries, the supply chain sector relies on knowledge as its lifeblood. This information is necessary to co-ordinate and manages a vast network of

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organizations. It requires sophisticated technology and excellent communication and, in short, it helps us to get the right product to the right place at the right time. The key to achieving this is to understand your customers and to anticipate their wants and needs. Easier said than done, sometimes, but in a 3PL scenario as the last link before the customer there is a wealth of knowledge to be gathered and used to help predict their next request so that you can be ahead of the game. CRM is designed to help you understand your customers, both current and potential. The intention is to leverage competitive advantage by means of targeted customer information that is used to attract new customers and retain existing ones through relationship management, thus saving cost and increasing effectiveness. Supply chain component Supply chain management is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service, manufactures that product or service and delivers it to customers. The following are five basic processes for supply chain management.

Logistics drivers To understand how a company can improve its SCM performance in terms of responsiveness and efficiency, the logistical drivers and cross functional drivers performance must be examined. The three logistical drivers are the following: Facilities, Inventory, Transportation and The three cross-functional drivers consist of:Information, Sourcing, and Pricing.

FACILITIES Actual physical locations in the Supply Chain network where product is stored, assembled, or fabricated. For Example: Having Warehouses near to customer for responsiveness. High efficiency distributor has fewer warehouses to increase efficiency but this will reduce responsiveness. INVENTORY Consists of all raw materials, work in process and finished goods within a supply chain changes in inventory policies can alter efficiency and responsiveness of the supply chain.
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Transportation Entails moving inventory from point to point in the supply chain. Transport choices have a large impact on the supply chain responsiveness and efficiency. For Example: Using FedEx to ship a mail order to make more responsive or usecheaper ground transportation to improve the efficiency.

CROSS FUNCTIONAL DRIVERS Supply Chain Management is increasingly focused on the cross functional drivers, such as sourcing, information and pricing. The cross functional drivers interact to enhance the overall supply chain performance.

Information It consists of data and analysis concerning facilities, inventory, transportation, cost, prices and customers throughout the supply chain. Information presents management with the opportunity to make supply chain more responsive and efficient.

Sourcing It is the choice of who will perform a particular supply chain activity such as production, storage, transportation or management of information. At the strategic level, these decisions determine what functions a firm performs and what functions the firm outsources.

Pricing Determines how much a firm will charge for goods and services that it makes available in the supply chain. Pricing affects the behavior of the buyer of the goods or service, thus affecting the supply chain performance.

Inventory Driver: y y y Low inventory level Pioneered Cross-docking Owns own Trucking Fleet

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y y

Centrally located Distribution Centers Builds Retail Stores where demand exists

Information Driver: y Has invested in IT more than competitors hence improved responsiveness and decrease inventory investment. y Suppliers produce only on demand. Sourcing driver: y Identifies efficient sources for each product. y Provides large orders to exploiting economies of scale.

Pricing Driver:  Practices everyday low pricing, for obtaining steady customer demand and to avoid fluctuation in prices.

5.

METHADOLOGY

Aim is to study and analyze the supply chain process of Al Wasel. Identify the flaws in the process and give suitable recommendations.

6.

Current Supply Chain Network

The company has 2 supply chain models running under the aegis of Al Wasl Water Purification LLC since the company has got two product lines. Lets closely look into the supply chain model for these 2 product lines.

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6.1 200ml Water Cup

Al Wasl has three suppliers for their 200ml water cup product. Procurement department gets materials like raw water, plastic sheets and aluminium foils from these suppliers. Plastic sheets are used to get cups from plastic injection moulding machine. At the same time water gets purified and gets filled in these cups with seal fitted on top. All these activities take place in WIP (work in progress), which is called production unit. Final products are kept in the inventory by the employees manually. Inventory is always needed to match the future demands. The company has in-house distribution centre to cater the market needs or demands. Mostly customers are traders, SME (small and medium enterprise) and resellers. The information and money flow is backward starting from customers to suppliers making this supply chain complex but the company is all set to cater their customers demand efficiently.

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6.2 5 Gallon Water Bottle

The second product is 5 gallon water bottle and has three suppliers. Procurement department gets materials like raw water, empty bottles, caps and slew/shrink from these suppliers. Empty bottles are cleaned at the same time water gets purified and gets filled in these 5 gallon empty water bottles with seal caps fitted on top. All these activities take place in WIP (work in progress), which is called production unit. Final products are kept in the inventory by the employees manually. Inventory is always needed to match the future demands. The company has in-house distribution centre to cater the market needs or demands. Mostly customers are traders, SME (small and medium enterprise) and resellers. The information and money flow is backward starting from customers to suppliers making this supply chain complex but the company is all set to cater their customers demand efficiently.

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7.
Al Ain

Benchmarking

Al Ain Mineral Water Companys manufacturing facility was opened on 5th August 1990 by Sheikh Saeed bin Tahnoon and is situated on Khattam Al Shiklah Road in Al Ain. The company produces one of the leading bottled water brands in the UAE. They have a strong heritage and tradition in the Emirate of Abu Dhabi where we are the number one brand choice amongst consumers. Al Ain Water Company is wholly owned by AGTHIA Groupwhich is a listed company on the Abu Dhabi Securities Market. There are four key values that are of top priority for Al Ain company; commitment, teamwork, achievement and entrepreneurship. Operation: Al Ain Mineral Water Company is a leader in bottled water manufacturing in the Middle East. Al Ain products are processed and packaged in a fully automated, modern manufacturing facility utilizing innovative processing technologies. Water passes through a multi stage filtration system before it is blended with FDA-approved minerals to enhance the taste. Al Ain Mineral Water Company has won local and international recognition through quality certifications, such as the H.H. Sheikh Khalifa Award for Industry and Quality. Products: Bottled water: Al Ain Mineral Water Company pioneered a new purification and re-mineralization process to produce water that conforms to the strictest US Food & Drug Administration, European and Abu Dhabi Food Control Authority guidelines.Al Ainfactory uses fully automated manufacturing processes. The water is packed in PET bottles and cups manufactured at the plant itself. The modern laboratory, the latest water-testing equipment and excellent packaging material allow us to deliver products of the highest quality that guarantee consumers healthy, natural and fresh water.

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The product range comprises: Al Ain 5 gallon: Al Ain Mineral Water has launched the new 5-gallon pack to cater to the daily needs of families. This volume is especially suited for home consumption. Pure and hygienically sealed, the 5-gallon pack is created keeping convenience and economical pricing in mind. The bulk water (HOD) category is a growing segment and one which currently accounts for Approximately 60% of the UAE water market. Product rangewhich spans a wide variety of packs, from 100ml cups to the 5 litre bottle, under the long-trusted Al Ain Water brand.The launch of Al Ain Mineral Water 5-gallon perfectly complements the Companys already strong position in bulk water segment. Capri sun: The newest entrant to the Al Ain Mineral Water portfolio, Capri-Sun is sold and enjoyed in around 100 countries all over the world. The manufacturers of Capri-Sun entered what was a new market segment at that time as genuine pioneers. Loved by children everywhere, CapriSun is produced in 18 countries throughout the world including the USA, the United Arab Emirates, Saudi Arabia and Nigeria. Al Ain Mineral Water Company is the exclusive manufacturer and distributor for Capri-Sun in UAE, Bahrain, Qatar, Oman and Kuwait. Sales and logistics: Domestic: Al Ain Mineral Water products are distributed throughout UAE via owned freestanding sales and distribution team. There is four distribution centers, one each located in Al Ain, Abu Dhabi, Dubai and Sharjah. The products are available in all key retail channels across the UAE.

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Exports: Al Ain Company distributes its products through different distributers located in the countries like Bahrain, Kuwait, Qatar, Oman, Airlines Going Green Movement: Al Ain Mineral Water Company brings forward an idea to avoid the waste of plastic and save the environment. The Shrink-A-Bottle' campaign is an initiative that aims to inform people of the need to recycle. The campaign encourages consumers to reduce Polyethylene Terephthalate (PET) waste by utilizing a bottle shrinking appliance, which reduces the size of an empty PET bottle to 15 per cent of its original size within 10 seconds. The company has partnered with Horizon Technologies, the first PET recycling factory in the Middle East, which converts almost all bottles collected in the region into PET flakes. These flakes are then used to produce high quality packaging and other related products. Recycled plastic can be used in the production of non-food applications.

8.

Issues and Recommendation

1. Less Suppliers - The Company has one supplier for each of their materials because of which the company had previously faced lot of challenges in terms of quality. In case of sudden break down in the supplier's company would result in less materials supplies and company might run out of materials resulting in lowproduction to meet the demand effectively.

2. The company can get into some contracts with other suppliers so that in case of sudden break down or exigency Al Wasl can always move to other suppliers in case of emergency.

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3. Vertical Integration - Since the company is not into any kind of vertical integration with the suppliers like that of 'Masafi' or 'Al Ain' doing with their suppliers. Its always a good idea to treat your suppliers as your partners so they understand your needs better and send you good quality materials. Sometimes its equally important for your suppliers know what the demand in the market is so that they are ready with the next supplies to meet the demand. This would need a kind of central system to monitor the demand activity and sharing it within Al Wasl departments and all suppliers.

4. Demand Fluctuation - Market demand is unpredictable and needs proper attention to forecast current and future demands. This would directly make an impact on the production and inventory level. Higher the demand means higher the production and higher the inventory to meet unexpected market demand. This is a complex structure and needs data analysis by the sales & distribution department to properly forecast and monitor demands. This would result in more cost savings in terms of estimated production after calculating the market demand. Extra inventory will accrue extra cost (employees, managing, loading, unloading, wearout, damages etc) to the company in terms of managing the inventory. When there is good sales then there has to be good inventory means inventory turnover ratio should be large neither too small. There has to be a balance between sales and inventory to support sales.

5. Information Technology - The Al Wasl company does 80-90 work without the use of information technology and needs special attention to start using some kind of 'Management Information System' where the system has all the data starting from procurement of materials till the end where customers meet their expectations. This will surely bring an impact and overall productivity of the organization in the long run. The data can be easily studied through MIS reports which will help top management to plan better and more process oriented by making information flow better within the system.

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6. Environmental Issues-The AL Wasl water Purification Company could initiate the green movement by using the recycling process for their plastic bottles. Al Wasl corp. could Have a contract with the third party contractor or have a separate division in the company itself for collecting the used bottles from the end users. The benefits results from implementing this strategy is the conservation of oil, reduction of green house gas emission, saving landfill space and energy saving. The recycled material is used in manufacturing of new products and substitutes recycle materials for virgin materials. This action not just only will reduce the land fill costs along with manufacturing cost but also create a good will value for the company as well. Customers who are informed about the recycling process implemented by the firm are more enthusiastic to purchase goods from the firm which is more environmentally friendly.

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9.

References

y Al Ain Water (Hitting the Google search engine searching for Al Ain Water in UAE)
[Online] Available at: http://www.alainwater.com/en/default.aspx [Accessed 10th April 2011]

y Masafi, a water of good (Hitting the Google search engine searching for Masafi in UAE)
[Online] Available at: www.masafi.com [Accessed 11th April 2011]

y Profile, a water of good (Hitting the Google search engine searching for express Group in
UAE) [Online] Available at: www.expgroup.com [Accessed 12th April 2011]

y Profile , a water of good (Hitting the Google search engine searching for express Group
in UAE) [Online] Available at: http://www.expgroup.com/low/profile.html [Accessed 12th April 2011]

y Al Wasl Water Purification LLC Dubai (Hitting the Google search engine searching for
express Group in UAE) [Online] Available at: http://www.expgroup.com/low/alwaslwater.html [Accessed 12th April 2011]

Institute of Management Technology, Dubai