LAGOS STATE COLLEGE OF HEALTH TECHNOLOGY

8, Harvey Road, Yaba, Lagos

SCHOOL OF ENVIRONMENTAL HEALTH

TECHNOLOGY (ND2)

COURSE TITLE:

LOGISTIC AND SUPPLY MANAGEMENT

COURSE CODE:

BDT 255-EHT

LECTURER:

Mr. Peter

NAME MATRIC

Ajayi Miracle Esther LASCOHET/EHT ND/2020/007

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 Table of Content

Cover Page

Table of content ii

Executive summary 1

Background analysis 1

The plan 3

The manufacturing process (the making of our products) 4

Distribution/Logistics 11

Return 11

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 SUPPLY CHAIN MANAGEMENT PROCESS FOR SOAP MAKING,

WAREHOUSING, DISTRIBUTION AND MARKETING.

EXECUTIVE SUMMARY:

This business plan details the supply chain management process for Soap production,

warehousing, distribution and marketing process for Mirest Enterprises.

Mirest Enterprises is a sole-proprietorship small scale enterprise established by Ajayi

Miracle Esther, a 200Level Student in the School of Environmental Health, Lagos

State College of Health Technology, Yaba, Lagos in May, 2020. The factory is

located in Gbagada suburb of Lagos.

BACKGROUND ANALYSIS:

Soap is a combination of animal fat or plant oil and caustic soda. When dissolved in

water, it breaks dirt away from surfaces. Through the ages, soap has been used to

cleanse, to cure skin sores, to dye hair, and as a salve or skin ointment. But today we

generally use soap as a cleanser or perfume.

The exact origins of soap are unknown, though Roman sources claim it dates back to

at least 600 B.C., when Phoenicians prepared it from goat's tallow and wood ash. Soap

was also made by the Celts, ancient inhabitants of Britain. Soap was used widely

throughout the Roman Empire, primarily as a medicine. Mention of soap as a cleanser

does not appear until the second century A.D. By the eighth century, soap was

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common in France, Italy, and Spain, but it was rarely used in the rest of Europe until

as late as the 17th century.

Manufacture of soap began in England around the end of the 12th century. Soap-

makers had to pay a heavy tax on all the soap they produced. The tax collector locked

the lids on soap boiling pans every night to prevent illegal soap manufacture after

hours. Because of the high tax, soap was a luxury item, and it did not come into

common use in England until after the tax was repealed in 1853. In the 19th century,

soap was affordable and popular throughout Europe.

Early soap manufacturers simply boiled a solution of wood ash and animal fat. A

foam substance formed at the top of the pot. When cooled, it hardened into soap.

Around 1790, French soapmaker Nicolas Leblanc developed a method of extracting

caustic soda (sodium hydroxide) from common table salt (sodium chloride), replacing

the wood ash element of soap. The French chemist Eugene-Michel Chevreul put the

soap-forming process (called in English saponification) into concrete chemical terms

in 1823. In saponification, the animal fat, which is chemically neutral, splits into fatty

acids, which react with alkali carbonates to form soap, leaving glycerin as a byproduct.

Soap was made with industrial processes by the end of the 19th century, though

people in rural areas, such as the pioneers in the western United States, continued to

make soap at home.

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THE PLAN

At Mirest Enterprise, our goal is to produce high quality soaps for different purposes

ranging from laundry, bathing, dish washing, car wash and general purpose soaps. Our

products are made to satisfy the health needs of our customers as they are made from

quality health promoting raw materials.

Our target is to meet the skin hygiene needs, laundry as well as safety health

environmental needs through the production of soaps that will meet the needs of

consumers in fighting germs and bacterial and giving the skin necessary moisture it

needs to glow and making the environment glamorous. Our products can be used by

both the young and the old as there are no age limit to the usage. Also, we intend to

spread the tentacle of our business across all states in Nigeria and also produce

products that will meet global need and at affordable prices.

The Business Development

At Mirest Enterprise, our target is to create strong synergy between all that will be

involved in the success of our enterprise ranging from the banks as the major financier

to the raw material supplier, production workers, warehouse managers, the marketers,

distributors as well as the retailers. To be able to identify the most reliable source of

raw material and all that will be involved in the supply chain, we had earlier carried

out a feasibility study which result had come out positive on all fronts.

For availability of our products at all time, we have contacted and signed deal with

several dependable raw material suppliers to ensure the production process will not be
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hindered at any time due to unavailability of raw materials. Also, for smooth

distribution, we have also signed pact with existing distributors and marketing

agencies who will always see to the availability of our products in every market and

available for all consumers with ease.

In terms of affordability of our soaps, we have done market survey to compare prices

of existing products with same quality as our products in order to determine the best

affordable price for our products. Also, strategies are in place to ensure the products

can be paid for without stress either through hand-to-hand payment retail quantities,

bank deposit for large quantity or through cash transfer between all parties.

We guarantee quality of our products to health of individuals and the environment at

all times. We also guarantee all processes involved in our business from raw

materials, production processes, warehousing, distribution, payments, return of

defective product (if any) while maintaining high customer satisfaction.

THE MANUFACTURING PROCESS (THE MAKING OF OUR PRODUCTS)

The next phase of our supply chain management process is the manufacturing or

making of our high quality soaps that will be highly demanded by our customers. This

stage covers the products design, production process, testing, packaging, and

synchronization for delivery.

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Proper schedule for all manufacturing process, testing, packaging and preparation for

delivery are done while maintain quality standards to ensure good outputs and high

yielding productivity.

The adopted method of production for our product is the Kettle process and the

continuous process of making soap.

Raw Materials

Soap requires two major raw materials: fat and alkali. The alkali most commonly used

today is sodium hydroxide. Potassium hydroxide can also be used. Potassium-based

soap creates a more water-soluble product than sodium-based soap, and so it is called

"soft soap." Soft soap, alone or in combination with sodium-based soap, is commonly

used in shaving products.

Animal fat in the past was obtained directly from a slaughterhouse. Modern

soapmakers use fat that has been processed into fatty acids. This eliminates many

impurities, and it produces as byproduct water instead of glycerin. Many vegetable

fats, including olive oil, palm kernel oil, and coconut oil, are also used in soap making.

Additives are used to enhance the color, texture, and scent of soap. Fragrances and

perfumes are added to the soap mixture to cover the odor of dirt and to leave behind a

fresh-smelling scent. Abrasives to enhance the texture of soap include talc, silica, and

marble pumice (volcanic ash). Soap made without dye is a dull grey or brown color,

but modern manufacturers color soap to make it more enticing to the consumer.

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Flowchart showing the kettle process of making soap.

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The Manufacturing Process

The kettle method of making soap is still used today by small soap manufacturing

companies. This process takes from four to eleven days to complete, and the quality of

each batch is inconsistent due to the variety of oils used. Around 1940, engineers and

scientists developed a more efficient manufacturing process, called the continuous

process. This procedure is employed by large soap manufacturing companies all

around the world today. Exactly as the name states, in the continuous process soap is

produced continuously, rather than one batch at a time. Technicians have more control

of the production in the continuous process, and the steps are much quicker than in the

kettle method—it takes only about six hours to complete a batch of soap.

The Kettle Process

Boiling

1 Fats and alkali are melted in a kettle, which is a steel tank that can stand three stories

high and hold several thousand pounds of material. Steam coils within the kettle heat

the batch and bring it to a boil. After boiling, the mass thickens as the fat reacts with

the alkali, producing soap and glycerin.

Salting

2 The soap and glycerin must now be separated. The mixture is treated with salt,

causing the soap to rise to the top and the glycerin to settle to the bottom. The glycerin

is extracted from the bottom of the kettle.

3 To remove the small amounts of fat that have not saponified, a strong caustic

solution is added to the kettle. This step in the process is called "strong change." The

mass is brought to a boil again, and the last of the fat turns to soap. The batch may be

given another salt treatment at this time, or the manufacturer may proceed to the next

step.

Pitching

4 The next step is called "pitching." The soap in the kettle is boiled again with added

water. The mass eventually separates into two layers. The top layer is called "neat

soap," which is about 70% soap and 30% water. The lower layer, called "nigre,"

contains most of the impurities in the soap such as dirt and salt, as well as most of the

water. The neat soap is taken off the top. The soap is then cooled. The finishing

process is the same as for soap made by the continuous process.

The Continuous Process

Splitting

The first step of the continuous process splits natural fat into fatty acids and glycerin.

The equipment used is a vertical stainless steel column with the diameter of a barrel

called a hydrolizer. It may be as tall as 80 feet (24 m). Pumps and meters attached to

the column allow precise measurements and control of the process. Molten fat is

pumped into one end of the column, while at the other end water at high temperature

(266°F [130°C]) and pressure is introduced. This splits the fat into its two components.

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The fatty acid and glycerin are pumped out continuously as more fat and water enter.

The fatty acids are then distilled for purification.

Mixing

The purified fatty acids are next mixed with a precise amount of alkali to form soap.

Other ingredients such as abrasives and fragrance are also mixed in. The hot liquid

soap may be then whipped to incorporate air.

Cooling and finishing

The soap may be poured into molds and allowed to harden into a large slab. It may

also be cooled in a special freezer. The slab is cut into smaller pieces of bar size,

which are then stamped and wrapped. The entire continuous process, from splitting to

finishing, can be accomplished in several hours.

Milling

Most toiletry soap undergoes additional processing called milling. The milled bar

lathers up better and has a finer consistency than non-milled soap. The cooled soap is

fed through several sets of heavy rollers (mills), which crush and knead it. Perfumes

can best be incorporated at this time because their volatile oils do not evaporate in the

cold mixture. After the soap emerges from the mills, it is pressed into a smooth

cylinder and extruded. The extruded soap is cut into bar size, stamped and wrapped.

Byproducts

Glycerin is a very useful byproduct of soap manufacture. It is used to make hand

lotion, drugs, and nitroglycerin, the main component of explosives such as dynamite.
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Flowchart showing the continuous process of making soap.

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DISTRIBUTION/LOGISTICS

The next phase of our supply chain management is the distribution or logistics stage.

Our finished soap products are delivered to our numerous customers by the suppliers

who we had partnered with. Customers’ orders are accepted via phone calls, SMS or

online order via our WhatsApp and Facebook platforms. The products are conveyed

from our warehouse by our pick carriers and courier for onward delivery to the

marketers and retailers. Payments are made through our invoicing system.

RETURN

The last and final stage of our supply chain management is the return. Defective or

damaged goods are returned to the supplier by the customer. Here, we deal with

customer queries and respond to their complaints and facilitate the return process for

customers.

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