PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

A
PROJECT REPORT
ON
SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

INDEX

S. No Description page

1. Introduction to supply chain management

i.
2. Levels of supply chain management

3. History-Imtiaz super store

4. Imtiaz super store introduction & business process

5. Ensuring low prices

6. Developing Systems and Structures

7. Growth and Diversification

8. Organogram of Supply Chain Department

9. Supply Chain Management at Imtiaz super store

10. Procurement and Distribution

11. Logistics Drivers

12. Cross functional drivers

13. Issues in Supply Chain Management

14. Problems
15. Suggestions

16. Conclusion

17. List of references

PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

Acknowledgment
We are grateful to Almighty ALLAH, who gave us strength and provided us with all the
resources, so that we make their proper use for the benefit of mankind. He keeps providing us
with the proper guidance and all the resources to keep helping the mankind.

We are thankful to our teachers for their guidance and support. Especially we would like to
thank our project supervisors MR. SOHAIL YOUNAS, whose encouragement, guidance and
support from initial to final stage has enabled us to complete the project. Always being
available, even at very odd times, listening to our problems and solving them even at busy
time. For their confidence in our abilities, we wish to thank them from our hearts and wish
them successful and a blessed life. Aameen.

We also wish to thank our parents who stood by us throughout this project helping us in any
way possible for them. Their kindness, blessings, advice, love and support helped us through
this time a lot.

May ALLAH Almighty Bless all.

Aameen
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1. Introduction to Supply Chain Management

Supply Chain Management is the discipline which encompasses the end to
end business activities carried out in any business, independent of the manufacturing or
service sectors. It is the synchronization of a network of facilities and distribution options
that performs procurement of materials, processing the materials into finished products,
and distribution of the products to customers. SCM is seen as involving five
fundamental processes. These include planning, sourcing, making, delivering,
and returning.

This is a typical supply chain showing interrelations between all involved

parties. [Source: Auto-ID: Managing Anything, Anywhere, Anytime in the supply chain,
Bose and Pal, ACM August 2005]
SCM subsists in both service and manufacturing environments. A typical supply of many
interactions between suppliers, manufacturers, distributors, retailers, with the vital goal of
providing either a service or a product to customers. This also works in reverse with the
customer at the head of the process when returning a product.
SCM is used as a means to assimilate planning, purchasing, manufacturing,
distribution, and marketing organizations that normally do not work together to achieve a
common goal. Each works toward goals specific to their own organization that
accomplish narrow objectives. SCM is a way of integrating these varying functions so
that they work together to make best use of the benefits for all involved.
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2. There are three levels of SCM: strategic, tactical, and operations

Three Levels of SCM [Source: Auto-ID: Managing Anything, Anywhere, Anytime in the
Supply Chain, Bose and Pal, ACM August 2005]

2.1: Strategic SCM covenants with future planning than looking at market
evaluation, capacity issues, new products, and technology changes. This planning is
addressing issues that may be factors several years out. This is accomplished at the
executive management level.
2.2: Tactical SCM involves a shorter planning cycle. It is more concerned demand
planning, inventory planning, and supply planning. This is determined at a less senior
level than Strategic SCM.
2.3: Operational SCM is current planning activities measured in at most weeks.
Operational SCM involves the mainstream of the operations. It includes
demand fulfillment, scheduling, production, transport, and monitoring.
There are many decisions that are made while looking at SCM. They follow
the categories as discussed above. Strategic decisions are made over longer periods of time
and linked to a corporation’s strategy. Operational decisions are more or less short term
in nature and look after day to day activities. Mainly Four major decisions are considered.
They include decisions on location, production, inventory, and transportation. A
geographically strategic placement of the production facilities is the key to creating a
successful supply chain. Decisions on what products to be produced have to be made
wisely and strategically. Inventory decisions and management is critical. Some
inventories are necessary to hedge against uncertainty, but this comes with a cost.
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

Managing these inventories proficiently will be of benefit to the corporation.

Transportation decisions include cost versus benefit. Air transportation is costly, but fast
and reliable. Other modes of transportation may be cheaper, but the sacrifice has to hold
inventories due to delays that may occur. If the above decisions are made with careful and
strategic thought as well as with concern for integration, the supply chain should be
efficient and successful.
The complete goal of SCM is to optimize supply chains in an endeavor to provide more
accurate and time sensitive information that can be used to improve process times and cut
costs. Supply chains have been around for decades and a constantly being
improved. The newest opportunity for improvement is the introduction of
Radiofrequency identification (RFID) tags. RFID technology will provide real-time
information that will allow manufacturers to get better readings of customers and
markets thus further improving supply chains. RFID will help retailers provide the right
products at the right places at the right times.

3. History-Imtiaz Super Store

 1955: Formed as a small grocer's outlet in Bahadurabad by Mr. Hakim Khan

Abbasi
 2003: Imtiaz II came into being in 2003 located in Main Shah rah-e-Faisal.
 2011: Imtiaz III came into being in 2011 located in Nazimabad
 2013: The fourth Imtiaz Super Market has opened on 22nd February 2013 at the
confluence of KPT Interchange and Khayaban-e-Ittehad.
 Imtiaz Super Market Defence Branch67/1, Korangi Road, KPT Interchange,
Karachi
 Kings Mall, Gujranwala Chan Da Qila، Grand Trunk Road، Gujranwala, Opened
25 September 2016
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Vision
"Our vision is to be recognized and respected as one of the premier supermarkets that is
creating a world where everybody can buy like rich people”

Mission

“In line with company's vision statement, we want customers for life. To earn customer's
loyalty, we must unlock the potential of customers buying power to improve their quality
of life."

Values

1. Provide customer an enriching environment of trust and co-operation.

2. Anticipate customer needs and act to create value in their eyes.
3. Create self-servicing environment; where customer can have separate product
departments, discounts and pricing.
4. Our employee’s management fit with our strategic management planning.
5. Employees flourish as company is flourishing.

4. Imtiaz Super Store Introduction and its Business Processes

Back in the early 1960s, Hakim Khan Abbasi opened up a general store in Karachi's
Bahadurabad neighborhood. He named the shop after his son, Imtiaz and always focused
on establishing strong relationships with customers. Since that time, the neighborhood
store has been expanding into a retail chain that operates multiple outlets throughout the
port city.
Imtiaz Abbasi, the son after whom the store has been named and who took the reins of
the Company from his father after completing his higher education, met with BR Research.
The following transcript is based on key takeaways from that exchange.
Given its persevering business success and rapid expansion, Imtiaz Super Stores have
been the focus of many a case study by students of business administration. Successive
reports on the Company have attempted to identify the unique selling proposition that has
led to the success of this retail chain.
But, Imtiaz Abbasi, the owner of the Company, contends that the strategy is simple:
"Since the first day that I started working with my father, we have always laid the most
stress on inculcating and developing strong relationships with our customers. If you
respect your patrons, consider their needs and priorities as sacrosanct and always persevere
to surpass their expectations; your business will grow leaps and bounds," he explained.
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

Abbasi said that it is this consideration that led the neighborhood store to introduce its
first innovation back in 1971. At that time, the Imtiaz Store became the first retail outlet
to process and package rice, wheat flour, pulses, spices and grains for its customers. "All
others were selling straight out of gunny bags by the kilogram and customers had to take
the products home and clean each of these themselves. So, we brought convenience to
grocery shopping by cleaning the products for them and also by packaging them in
manageable quantities.
A few years later, the store innovated again, this time offering home delivery to
customers. "At first there was one employee who went around to the houses of customers
in the neighboring area. They would send over a shopping list and he would load the stuff
on a truck and deliver it to their homes and offices," explained Abbasi. By now that truck
has been replaced by a number of delivery vans that collectively deliver to locations all
over Karachi.
However, the strong presence of international competition was hardly any deterrence to
the growth of this local brand. ISM presently employs more than 3,000 people and
serves 70,000 customers a day at its five branches in Karachi – the brand’s strength can
be judged from the fact that it has 700,000 home delivery customers.
ISM makes more money than any other supermarket in the country. After the opening of
its Gulshan e Iqbal branch, the company’s earnings are estimated at more than
Rs400,000 per square foot

5. Developing systems and structures

Mushrooming demand for a convenient, well-stocked retail outlet which offers a wide
variety of quality products at affordable prices has provided Imtiaz Super Stores with the
opportunity to expand its portfolio to five stores all over Karachi and one in Gujranwala.
They also planned to open more store in other cities of Pakistan in next two years.
However, this rapid growth could only be possible because the Company has put in place,
the scalable structures, procedures and systems. Abbasi contended that his Company has
the most sophisticated IT infrastructure among all retail chains in the country. We are
using SAP and i-Vend in each store which make conection with head office of all stores.
He also highlighted that key functions such as finance and supply chain employ qualified
professionals that use automated procedures for demand forecasting, cash flow
management and other operational purposes.
Abbasi highlighted that the Company employs about 1,500 individuals, many of whom
are qualified youths. He said that providing opportunities for people has always been a
key consideration for this Company. The retail chain owner also stated that dozens of small
businesses have been given a platform for growth by this retail chain.
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6. Growth and diversification

Imtiaz Abbasi revealed that plans are afoot for the Company to acquire a second rice mill.
He explained that the Company has been exporting rice over recent years to markets in the
Far East, Middle East, Central Asia and Europe, in addition to domestic sales.
He stated that demand for Pakistani rice is significant and climbing. At the same time, as
the Company drives ahead with its expansion plans within the country, the local appetite
for rice that is catered by Imtiaz Store is also growing. For this reason, it has now become
necessary for this firm to boost its internal capacity to process and package rice. Abbasi
highlighted that providing superior quality rice and unmatched prices to customers has
been among the most important selling propositions for this retail chain since its inception,
so it is very important to maintain this edge in future.
In 2014, the Company will apply the lessons from its backward integration in rice and
flour, to another key food item. Imtiaz Abbasi told BR Research that his Company will be
launching its own edible oil mill next year. That mill will be operated in a similar manner
as the rice and flour mills. Procurement of edible oil for that venture will also be managed
by the firm itself.
The Company launched its sixth outlet in Gujranwala just a few month back. Now the
senior management is already hustling to launch yet another outlet; this time in Faisalabad.
Besides, the Company is considering various possible locations for establishing its
inaugural stores in Lahore, Multan and other cities of the country
Imtiaz Abbasi also revealed that the Company intends to tap the country's stock markets
to allow it to grow to the next level. "Imtiaz Super Stores will be listed within a couple of
years," said Abbasi. He urged that the countrymen should give preference to national
companies both in terms of their purchases and their decisions to invest.

7. Distribution:
7.1 Distribution network:
The distribution network is telling us about the flow of product means this tell that how
product move from manufacturer to the customer. The Imtiaz super store takes all the
product from the manufacturer and store all the product in the godown according to the
nature of product. When the customer needs the product, they take from the stores and
also have the home delivery in ramzan for the customer. When the super stores need, the
product need the product the give the order information to the godown the product reach
from godown to the stores and also super stores directly connected with the
manufacturer if they need urgently product they send the product information to the
manufacturer and the send product to store.
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

7.2 Distribution Model:

Manufacturer-1 Manufacturer-2 Manufacturer-3

Godown

Imtiaz Imtiaz
super store super store

Customer Customer
1 2
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

8. Organogram of Supply Chain Department:

9. Procurement and Distribution:

Imtiaz Super Store’s process of procurement involves reducing its purchasing costs as far
as possible so that it can offer best price to its customers. The company procures goods
directly from the manufacturers, bypassing all intermediaries.
Imtiaz Super Store has distribution centers. Imtiaz Super Store’s own
warehouses supply about 80% of the inventory. Each distribution center is divided
in different groups depending on the quantity of goods received.
10. Supply Chain Management at Imtiaz Super Store
Supply chain management at Imtiaz super store comprises of the following sub-sections
1. Logistical Drivers

2. Facilities Management:
 Supplier Location:
ISM make their supplier near to store, its supplier responsibility to deliver
product at the store or godown.
 Godown Location:
Godown are always make near to every store. There is many godown which
deliver products to the sore when it need.
 Store Location:
All store of ISM are in rural and in the main city and near to housing
societies.
3. Inventory Management:
Considering the expansion of Imtiaz Super Store stores, it was essential to have a very
good communication system. Imtiaz Super Store ensures that unproductive inventory is as
less as possible, by allowing the stores to manage their own stocks, thereby
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

reducing pack sizes across many categories and timely price markdowns. Imtiaz Super
Store makes full use of its IT infrastructure to make more inventories available in case of
items that customers wanted most, while reducing overall inventory. By making use of
Bar-coding, different processes like efficient picking, receiving & proper inventory
control of the products along with easy packing and counting of the inventories was
ensured. A Centralized inventory database allows the personnel at the store to find out the
level of inventories and location of each product at a given time. It also shows the location
of the product like distribution center or transit on the truck. When the goods are unloaded
at the store, the inventory system is immediately updated. Each store has many warehouses
near to store, Imtiaz Store Gujranwala have four ware houses near to Coca Cola
Gujranwala which also near to King Mall.
4. Transportation Management:
A big part of success depends on fast & responsive transportation system. Company
owned trucks services the stores. These dedicated trucks enable shipping of goods from
distribution centers to the stores within 2 days and replenish the store shelves thrice a
week. The drivers hire dare all very experienced & their activities are tracked regularly.
This allows the drivers to be aware of the terms & conditions for safe exchange of Imtiaz
Super Store property. For more efficiency, finished goods are directly picked up from the
manufacturing site of supplier, sorted out and directly supplied to the stores or warehouse
near to store.
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a) Transportation Design

Godown 1 Imtiaz super

store 1

Godown 2 Imtiaz super

store 2

Godown 3 Imtiaz super

store 3

Second Transportation Model:

Customer

Imtiaz super Customer

store 3

Customer
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b) Transportation Mode
The transportation means that the movement of product from one place to another place.
The Imtiaz super store manages the transport for availability of product in the all stores.
The modes which use for the product availability in the stores they use the road transport
system for the product. They use the truck for the product availability in the stores. When
the product need in the stores the store, keeper sends the product with the help of truck for
meet his demand. When the stores need any product, the order give to the relevant stores
they send the product to the stores with the help of truck.

 Cross Functional Drivers

1. Sourcing Management:
We offer a wide range of quality products which include but not limited to world-class
medicinal products, huge variety of house hold items as well as outstanding quality of
food stuff which is responsibly sourced from around 2,000 suppliers, globally. We have
our own brand Ponam of daily usage products. ISM have their own production sites and
purchases finish goods from different manufacturer
i. Inhouse or Outsource
ISM is sales both products inhouse and outsourced.

ii. Selection of manufacturer

Company have more than 20000 suppliers ISM outsource different kind products
from them.

2. Information Management:
In recent years, Imtiaz Group has achieved growth through an aggressive strategy for
opening new stores. While Supermarket sales are a major driver for this strategy, the
company’s warehouses had become burdened by poor inventory visibility and control and
limited data that compromised its decision making.
As an expanding business, they required a modern IT platform that could consolidate their
Retail and warehousing operations and foster the planned pace of growth.
 No centralized access to inventory information & availability of proper sales data
 Inefficient stock monitoring & movement
 High transaction time at point of sale and system constraint to handle high footfall
at store
 Data existed in siloes at each branch & lead inaccurate inventory calculation
 Unmanageable data consolidation & audits
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For this purpose, iVend Retail Management Suite with SAP Business One was
introduced.

Benefits of this new system are as follows:

iVend Retail was able to enhance key retail transaction performance at store &increased
overall employee efficiency
Synchronized data transfers between Stores & enterprise ensured accuracy
across Retail chain
Allowed to measure sales numbers better and track inventory stock levels
efficiently
Easy identification of slow moving inventories for improved purchasing decision
making

3. Pricing:
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Ensuring low prices: As the customer base for the retail store expanded, the senior
management realized that backward integration would be vital to maintain the Company's
competitive edge in terms of prices and quality of products. Over the years, a rice mill and
a flour mill have been added to the Company.

"We also purchase the wheat, rice and all other fresh produce that is sold in our stores
directly from farmers," explained Abbasi. He added that this allows the Company to cut
out as many as seven different middle men and hence ensure that the commissions to these
brokers are skipped and retail prices remain low.
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

Imtiaz Super Stores also operates its own grindstones for turmeric, spices, corn flour and
other edibles. Besides, all international products sold at the Company's outlets are also
imported directly instead of being routed through buying agents. Abbasi contended that
besides ensuring low cost, this approach allows the Company to slice delivery times as
well.

a) Type of Price Store Offer

i. Fixed price
ISM offer all range of products on fixed price at all level “ISM is out to kill the
competition,” an official said referring to its business strategy. They simply unleash the
supply chain and play around their strong buying margin, he said. Explaining the official
said ISM buys merchandise at 2% to 3% lower margin and even sells it at 5% to 7% lower
margin compared to other retailers, giving it an aggregate advantage of up to 10% which
is tough to compete.
“The benefits of our new Retail management system are splendid. We have full
control on what is being purchased, what is being sold, and what is available in the
inventory. Now we have obtained a fairly transparent view of store operations
through process integration”

Waqas Hanif, Imtiaz Supermarket

11.ISM Forecasting:

Imtiaz Super Market

Year Revenue Pr- Square Feet

2011 150000

2012 180000

2013 200000

2014 250000

2015 300000

2016 400000

2017 412666.6667
 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

Imtiaz Super Market

Year Revenue Pr- Square Feet

2011 150000

2012 180000

2013 200000

2014 250000

2015 300000

2016 400000

2017

Graph Presentation of forecasting:

Revenue Pe- Square Feet

450000
400000
350000
300000
250000
200000
150000
100000
50000
0
2011 2012 2013 2014 2015 2016 2017

Revenue Pe- Square Feet Linear (Revenue Pe- Square Feet)

12.Problems in ISM system

 Inventory management: Stock outs of highly demand products.

 PROJECT - SUPPLY CHAIN MANAGMENEGT AT IMTIAZ SUPER STORE

 Logistics & Distribution: Problems in distributing products in all the branches

in Karachi due to law and order situation.
 Information management: Issues in maintaining product information in iVend
Retail software due to lack of supplier’s awareness
 No navigate sign in the store: ISM don’t any navigation sign to facilitate
customer where is the product, which he come to buy.

13.Suggestions:
Share information with supplier:
ISM management should develop information system with his supplier. When supplier
have your stock and highly sale able product data they manage it on time.
Develop godown near to store:
For the logistics and distribution, they need to make more distribution center near to store,
it will reduce cost, time and risk of damage in law and order situation.
Show Sign on different palace in the store:
To facilitate the customer ISM should show the navigation sign in different place of store,
so that it makes easy buying process for customer.
Increase Variety of product:
There is less variety of product on the store, ISM promote that there is everything under
one roof. so, they need to increase the variety of product.
Low variety of men’s veer:
In the store, there is less variety of men’s veers they need to increase it.
Online Order Taking:
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Conclusion
Retailing in Pakistan is still in its infancy, chances and scope for growth in retail are huge,
keeping this in mind Imtiaz store is expanding its retail stores in different locations to cater
all the segments in Karachi but due to the issues in supply chain is lacking behind.
We are still running in the dark ages as compared to retailing worldwide which are now
moving towards RFID technology which refers to a set of technologies that are used to
identify and transmit information from tagged objects by making use of radio waves. This
technology is primarily used for automatic data capture and has the potential to
revolutionize business performances and change how businesses operate today. RFID
technology will not replace bar coding, but it holds even greater promise to improve
operations and reduce costs for all parties.
List Of References-
http://www.imtiazsupermarket.com.pk/index.php
http://www.brecorder.com/market-data/rates-a-schedules/118/1172879/
http://www.scribd.com/document_downloads/direct/114280880?extension=docx&ft=13
69225764&lt=1369229374&user_id=48337637&uahk=XxHuKRcQOlt1FLmPZqPG85a
sowk
http://www.citixsys.com/blog/imtiaz-supermarket-goes-live-on-ivend-retail/
http://www-
304.ibm.com/businesscenter/cpe/download5/29826/RCC_WhitePaper.pdf12