Nestlé Pakistan operates the biggest milk collection operation in Pakistan. Currently, Nestlé milk is collected from an estimated 190,000 farmers spread out over the provinces of Punjab and Sindh. It produces a full range of dairy products including milk, powdered milk, cream, tea whiteners and yoghurt.
While the demand for its milk products is relatively constant throughout the year, milk production varies very significantly from season to season. A further complication is that the content of milk obtained from farmers also varies. Hence Nestlé is faced with the problem of managing its production capacity in the most efficient
way based on both major supply side constraints and demand side variations.
Despite significant investment in ERP systems, Nestlé was unable to automate its highly complex milk production planning process. There was also a strong realization of the limitations of the manual planning that was being used. Nestlé decided to see if a customized planning system could be developed. Techlogix was engaged and an
ambitious two year multi-phase project was launched.