Supply Chain

Management
SCM Business Proposal
Acknowledgement:-

I would like to thank our Supervisor sir.kashif for his cooperation and help. He
fully supported me throughout my work. I express my heartiest gratitude to him.
His cooperation made this project a lot much easier Bundle of thanks to my
parents, who were and are very supportive and cooperative at every time.
Executive summary:-

Pak-shay Teahouse is a new tea room in the Pakistan. Pak-shay Teahouse is a

Limited Liability Corporation. Pak-shay Teahouse will offer a full range of teas
(hot and iced), as well as, premium chocolates, tea accessories, and loose teas for
taking home or giving as gifts. The Pakistan tea market is growing rapidly. Tea
sales have increased 25% over the last fifteen years, with the number of tea
rooms offering sit down service rising about 15% to about 1,500 shops.

Pak shay Tea is an aromatic beverage commonly prepared by pouring hot or

boiling water over cured leaves of the Camellia sinensis, an evergreen shrub
(bush) native to Asia. ... These are sometimes called tisanes or herbal infusions to
prevent confusion with tea made from the tea plant
Introduction:-
Teahouse is a new tea room in the Pakistan. Pak-shay Teahouse is a Limited
Liability Corporation. Pak-shay Teahouse will offer a full range of teas (hot and
iced), as well as, premium chocolates, tea accessories, and loose teas for taking
home or giving as gifts. The Pakistan tea market is growing rapidly. Tea sales have
increased 25% over the last fifteen years, with the number of tea rooms offering
sit down service rising about 15% to about 1,500 shops.

Pak shay Tea is an aromatic beverage commonly prepared by pouring hot or

boiling water over cured leaves of the Camellia sinensis, an evergreen shrub
(bush) native to Asia. ... These are sometimes called tisanes or herbal infusions to
prevent confusion with tea made from.
Vision:-
Pak-shay tea industry provides high quality and safe tea for consumers, good
livelihoods for producers, workers and their families, whilst at all times caring for
the natural environment

Mission:-
To sustainably transform the Pakistan tea industry for the benefit of consumers,
workers, farmers and the environment, by:

Verifying tea producers against a world class sustainability code of conduct.

Working with tea industry to address key sustainability challenges such as food
safety, stagnating yields, pest and disease control, living wages, worker welfare
and equality

Core values:-
1. Trust. Every one of our practices flourish in trust, respectability, and
responsibility, none of which we will trade off.

2. Quality. We endeavor to exceed expectations in the entirety of our endeavors,

and convey greatness to our buyers as well.

3. Imagination. We empower horizontal reasoning, and are responsive to crisp

ideas.

4. Advancement 5. Initiative 6.solidari

 Information about location / contact detail
Head office
Plot 00, Sector000, Korangi Industrial Area,
Karachi – 12345, Pakistan.

Phone: 021-350-0000 (4 Lines)

Fax: 021-12345678

Raiwand factory
5 KM, Raiwind Manga Road,
Near Bashir Chowk, Industrial Area,
Raiwind-Lahore, Pakistan.

Phone: 042-12345678-90

Fax: 042-12345678

City Office
Tapal House Saifuddin sayedna tahir Road, Namakwada Pan Mandi, Karachi.

Phone: 021-2737202-4 Sayedna Tahir

Islamabad Regional Office

Plot No. 000,000 Industrial Area I/9-2, Islamabad

Phone: 051-12345678-12345678
 Customer segmentation:-
Customer profile

Geographical

Region All region of Pakistan

City All cities of Pakistan

Rural–semi urban area Both rural- semi urban areas

Demographics

Age 5 years and above

Gender Both Male & Female

Family All families including joint & single etc.

Income Income does ,not matter

Occupation

Education Both educated & uneducated

Behavioral

Occasions Regular & special occasion

Benefits Quality , economy , nutrition , uniqueness , and convenience

User status Non user , potential user and first time users

User rate 46 %

Loyalty status Very good

 Forecasting demand:-
These facts and figures are all assumption but we forecast demand like this
Demand Forecast example

Karachi:

Population: 20 million

Literacy rate: 60%

Literacy rate of our product: 70%

People who can afford our product: 82%

People who will eventually buy the product: 60%

20,000,000*0.6*0.7*0.82*0.6 = 4132800

Lahore

Population: 12.5 million

Literacy rate: 60%

Literacy rate of our product: 45%

People who can afford our product: 60%

People who will eventually buy the product: 45%

12500000*0.6*0.45*0.6*0.45 = 911250
 Production planning:-
Production planning:

Pak-shay divided in two regions south & north

Production plan is lifted on each Wednesday for the next week

Production unit total are 3 (2 in Karachi 1 in Lahore)

Capacity planning (machinery):

250 MT: 3 factories

Karachi unit 1: 50 MT approximately

Karachi unit 2: 125 MT approximately

Lahore unit 3: 75 MT approximately

Shifts labor / staff planning:

3 shifts A, B $ C

Morning – 8 hours

Evening – 8 hours

Night- 8 hours
 Procurement plan:-

Tea leaves are taken Leaves are taken to

Tea produced
the factory

Samples taken to the Pre-auction sample Tea is auctioned

lab for testing

Pre-shipment on Shipment taken place Tea reaches the port

dock

Random sampling on Goes through the

Tea reaches pak-shay
dock clearing agent

Reaches Reaches
Sample accepted Blending taken place
warehouse warehouse
(red area) (green area)
Suppliers:-

All tea in Pakistan is imported. Pakistan mainly imports tea from Kenya and other African countries like
Uganda, Burundi and Tanzania, while multinational companies in Pakistan also import tea from Sri
Lanka, Indonesia and Bangladesh. Pak-shay suppliers are major the importers of Tea from these
countries. So pak-shay mainly imports tea from Kenya, Uganda, Tanzania, & Indonesia.

Channel of distribution:-

Manufacturer ------Distributor---------Retailer --------Consumer

The channel of distributions according to this brand pak-shay is simply as shown by the diagram as
manufacturer to distributors who vary according to geographical dispersion and then to retailer to final
consumer. Pak-shay has a great channel of distribution not only to this brand but also all other brands
that vary geographically according to consumer needs. Pak-shay has 5 main warehouses in Pakistan,
which are located in the following cities:-

1. KARACHI 2. HYDERABAD 3. SUKHUR 4. MULTAN 5. RAIWIND.

From these warehouses the product move to the distributors as only in north they have 207 distribution
channels. And from these distributors the product moves to the next, which is retailer and then to the
consumer. This is also one of their strengths that they have a strong distribution channels. In the
beginning the company sole aim was to capture the tea market of Karachi, as they were already in tea
business here, only and then strategically build their network to other cities of Pakistan. Now pak-shay
has a distribution network spread across Pakistan, from Karachi to Khyber with over 400 distributors.
Extensive training programs are provided for the devoted sales personnel. The popularity of its fine
brands is unabated, making it the No 1 national tea company in Pakistan. Pak-shay caters to its
customers by providing pak-shay Dander and Family Mixtures to more than 140,000 outlets in Pakistan,
which include superstores, department stores, general stores, medical stores, paan walas, grocery
stores, merchants, etc. Grocery stores and merchants together provide 80% volume of the tea sales.
 Inventory planning:-
Inventory is a list for goods and materials, or those goods and materials themselves, held available in
stock by a business

Pak-shay using FIFO inventory system

WAREHOUSING is considered by the management

15 days inventory can be hold

800 tons max. At KHI warehouse

200 tons max. At Hyderabad

200 tons max. At Sukkur

100 tons max. At Multan

400 tons max. At Raiwind

50 tons max. At Islamabad