STRATEGIC SOURCING
ASSIGNMENT ON PURCHASING PROCEDURE OF
BRITANNIA INDUSTRIES
Date: 10/03/2025
Made by: SYED ADNAN
Roll No- 241146
Section C
Purchasing Procedure at Britannia Industries
1. Supplier Selection Process: Britannia Industries follows a rigorous supplier selection
process to ensure the highest standards for its wide range of food products. Suppliers are
evaluated based on the following criteria:
Quality Standards: Ensuring raw materials meet FSSAI, ISO, and HACCP
certifications to maintain food safety and product consistency.
Cost Efficiency: Britannia negotiates competitive pricing with suppliers while
ensuring the quality of materials is not compromised.
Delivery Reliability: Suppliers are assessed on their ability to deliver ingredients like
wheat, milk, sugar, and other raw materials on time to ensure smooth production.
Innovation and R&D Support: Britannia collaborates with suppliers that offer
innovative solutions to enhance product quality and shelf life.
2. Global and Local Sourcing Strategy:
Britannia employs a hybrid sourcing strategy by working with both local and global
suppliers. This ensures they meet demand while maintaining product consistency and
cost efficiency.
Key raw materials such as wheat, sugar, and milk are often sourced locally to
minimize costs and support regional suppliers, while specialized ingredients and
equipment may be imported to maintain premium standards.
3. Just-in-Time (JIT) and Lean Manufacturing:
Britannia follows JIT principles for perishable ingredients such as milk, butter, and
other dairy products to ensure freshness and minimize wastage.
The company maintains an optimal inventory level to avoid overstocking, reducing
storage costs and ensuring consistent product quality.
JIT practices demand close coordination with suppliers to ensure delivery timelines
are met without disruptions.
4. Sustainability and Ethical Sourcing:
Britannia actively integrates sustainability in its purchasing practices by partnering
with suppliers that follow eco-friendly practices.
The company emphasizes sourcing palm oil, cocoa, and other raw materials from
certified sustainable sources.
Britannia maintains a strong focus on reducing carbon emissions across its supply
chain by working with suppliers who adopt green practices and sustainable packaging
materials.
5. Technology and Innovation in Procurement:
Britannia leverages advanced ERP systems to manage supplier relationships, track
orders, and analyze procurement data for efficient decision-making.
AI-driven data analytics tools help the company predict supply chain disruptions,
assess supplier performance, and optimize inventory levels.
Digital communication platforms are employed to ensure seamless collaboration with
suppliers.
6. Supplier Risk Management:
Britannia Industries uses risk assessment frameworks to evaluate potential
disruptions in its supply chain.
Supplier audits are conducted regularly to ensure compliance with food safety
standards, environmental guidelines, and labor policies.
The company maintains a diversified supplier base to minimize risks linked to
dependency on a single source.
7. Inventory Management:
Britannia follows a strategic inventory management system to balance product
availability and minimize waste.
Ingredients with shorter shelf lives, such as dairy products, are managed with precise
demand forecasting to avoid spoilage.
The company employs demand-driven planning tools to anticipate market trends
and ensure efficient stock management.
Conclusion: Britannia Industries' purchasing procedure is a well-structured system that
emphasizes quality, sustainability, innovation, and risk management. Their approach to
sourcing, inventory control, and supplier engagement significantly contributes to the
company's strong market presence and operational efficiency.
