EXECUTIVE SUMMARY

The content provides an introduction to the workings of the company and focuses
on the processes followed at the company. Products transacted from overseas and
local supplies, their qualification criterion, and distribution network management
has also been discussed. The process starts with sales forecasting which gives an
estimate of the sales on monthly basis. Imported material inventory of about
3months is maintained as safety stock. Some indigents are procured locally as well
as packaging material of the product. Raw material warehouse, they also have a
SITE warehouse is the main storage for imported finished products. The customers
in south region are supplied from these warehouses. The ware houses are not only
located in Karachi but also in Lahore Multan and Islamabad.

National Food Limited get raw material by importing by china and Singapore as
well as locally.

National Food Limited maintains those materials till finished goods inventory by
keeping safe in ware houses. There are distributors in the local and international
further supply to retailers in their respective areas. Transport operations are
managed by the company itself with the help of outsourcing within agreement.
Complete operations are recorded and maintained by the supply chain manager of
the company which enhances effective and efficient operations and provides a
competitive edge. The report concludes on the importance of transportation in the
Supply Chain Management of National Food Limited and the wide ranging
benefits of its efficient implementation.

OBJECTIVE OF OUR REPORT

This report has been conducted to gain knowledge about transportation department
in the supply chain management of national food ltd. For this, we had an informal
interview with the _____________ Mr.Asad, of national food Limited.

INTRODUCTION OF NATIONAL FOODS

National foods began its journey in 1970 as a spice company with a revolutionary
product that popularized the concept of having clean, healthy food. National foods’
initiative since then is to make hygienic food, reduce time spent in the kitchens,
faster health and contribute towards a positive and more rewarding lifestyle.
National food is Pakistan’s leading multi-category food company with over 250
different products in 12 categories.

VISION & MISSION STATEMENT

To be a Rs. 50 billion food company by the year 2020 in the convenience food
segment by launching products and services in the domestic and international
markets that enhance lifestyle and create value for our customers through
management excellence at all levels.

FOUNDER’S PHILOSOPHY

• National Foods must focus on customer needs and serve them with quality
products at affordable prices.

• Our products must be pure and should conform to international standards.

• Our research must continuously produce new and adventurous products that
are scientifically tested and hygienically wrapped in safe and attractive
packaging.

• We must create an environment in our offices and factories where talent is

groomed and people have every opportunity to advance in their careers.

• We must provide ourselves to be good corporate citizens, support charitable

causes and bear fair share of taxes.

• Reserves must be built, new factories created, sound profits made and fair
dividend should be paid to our stock holders.

• Through building a reliable brand, National Foods must get itself

recognized as a leader in Pakistan and abroad.

• With the help of Almighty God, the company can achieve its targets in
times to come

AROUND THE WORLD

National Foods is a multinational company with subsidiaries in UAE (National

Foods DMCC), UK (National Foods Pakistan (UK) Ltd.) and Canada (National
Epicure Inc.). Regional representatives are present in key markets to facilitate the
market development

BRIEF SUMMARY OF OUR EXPERIENCE

The corporate office was vision capturing and wonderful, was giving a
professional look. The environment there was also very professional.

Our member had an amazing interview with him; he told us about his work
experience, shared his past experiences with us. He politely replied each of our
questions with detail.

He gave us detail of his company, their supply chain processes describing each
department in detail and a lot more things.

It was really an amazing experience and we learned a lot more things by this visit.

SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the broad range of activities required to plan,
control and execute a product's flow, from acquiring raw materials and production
through distribution to the final customer, in the most streamlined and cost-
effective way possible.

TRANSPORTATION DEPARTMENT:

Transportation refers to the movement of product from one location to another as it

makes its way from the beginning of a supply chain to the customer's handle. This
requires a new broad look at the business of transportation supply chain, including
supply chain management, logistics, & procurement.

THE ROLE OF TRANSPORTATION IN SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM) can be divided into three main areas:

• Purchasing

• Manufacturing
 • Transport

IMPORTANCE OF SUPPLY CHAIN MANAGEMENT

Supply chain management has become an integral part of business and is essential
to any company’s success and customer satisfaction. Supply chain management
has the power to boost customer service, reduce operating costs and improve the
financial standing of a company

For the purpose of our project we were allotted the transportation department in the
supply chain of National Foods ltd.

DESCRIPTION ABOUT THE PROCESSES OF DEPARTMENT OF

TRANSPORTATION AT NATIONAL FOOD LTD:

TRANSPORTATION HIERARCHY:

National foods ltd does not follows a significant transportation hierarchy instead
they have an executive level hierarchy which mainly concerns with logistics.

• Warehouse In-Charge

• Transport Manager

• In-House Logistics Executive

• Material Handling Executive

• Associate, Tech Support

• IT Executive

WAREHOUSES AND EXPERTISE:

National foods consist of 6 warehouses and each warehouse has its own
transportation with a significant set of expertise of operation. Some transporters
have their own vehicle wile sometime other hires some vehicle. These transporters
are working on different criteria of rates. Some are charging on the basis of
distance and sometime national foods also pay on the basis of number of cartons
moving from one place to another.
HIRED / OWNED:

National food didn’t invest in transportation because a company only invests in

their core competency and national foods core competency is their production. So
they have outsourced the transportation as they are getting the transportation
service providers at good rates rather than to investing on owning it.

MAINTENANCE:

As national food doesn’t owned their own transportation so the factor of

maintenance doesn’t comes to their end.

KEY PERFORMANCE INDICATORS (KPIS):

ON TIME DELIVERY:

• Performance should be according to set benchmarks of delivery on time. It

the benchmark is of 3 days than delivery should be in 3 days.

ELEMENT OF COST:

• Especially with regard to the rate of fuel. Manage according to the pre
settled clauses that in what manner moving cost fluctuates according to
fluctuating fuel prizes.

SERVICE QUALITY:

• Availability of vehicles for quick delivery. Mainly they select the services
providers who have vehicles readily available. And they should response on
one call.

GOOD CONDITION OF VEHICLE:

PROPER HANDLING:

• Cartons should be loaded with careful handling not damaging the product.
CONTRACT MANAGEMENT:

The main key factor for managing the contracts is the on time delivery of products
with A-one products condition. And their main priority is making customer satisfy
with superior product quality.

COST CUT STRATEGY:

AVERAGE COST OF SUPPLY:

REACTIVE OR SUPPORTIVE:

National foods follow a reactive transportation strategy in order to make their

product availability on time. A responsive transportation network begins with end-
to-end network visibility. Visibility allows the business to centralize production
operations to lower-cost areas without impacting customer service levels, because
any uncertainty within the network can be monitored and appropriately managed to
keep inventory levels as low as possible.

CONCLUSION:

The overall experience of this visit was nice we learned a lot of new thing related
to supply chain management especially about the department of transportation. We
learnt that patience is an import mat factor if you are a transportation manager
because you have to deal with many hurdles in every day routine. Moreover,
transportation is the essential element of logistic. Without logistics it is difficult to
survive in the industry and without transportation the operations of logistic are not
completed. So for national foods and every other organization transportation play a
vital role to complete their business operations.