Drivers

Definition
positively or negatively affect the performance
of a supply chain.
Frameworks:
1) to be more competitive
2) efficient or responsive.
Responsive - how quickly or in a timely fashion
a company can satisfy consumer demand,
Efficient- how much a company is competent
enough to manage its resources in such a way
that they are able to minimize cost.

Facilities

inventory is produced, stored, assembled, or fabricated.

Three manufacturing Plants :Lahore, Islamabad and Karachi, and Multan
plant is under construction.
Warehouse facilities areas such as Gujranwala, Sukkur, Peshawar and
Abbottabad.
Locations decision - metropolitan cities, where the demand for bread and
buns is high.
There competitive strategy is that they are achieving economies of scales,
when the company is able to lower per unit

 competitive strategy -is that they are

achieving economies of scales
responsive -as of having several
warehouse facilities so that they
could cater to the uncertainty in
demand around those areas.

Inventory

It is the raw-material, semi-finished good or even finished good of the

company, which are to be used by the company in production process or
for sale.
one week inventory in stock of raw-materials that are being imported from
international suppliers such as
Gluten from AbMoree, which is a Malaysian company but this company is
also operating in Pakistan as joint venture with Dawn Company to produce
Yeast. They are buying eggs from an SD poultry farm, an Islamabad based
company, flour from Rehmat Mills and milk from Nestle.
Cycle mode for inventory - produce an average
Finished product in Warehouse NOT for longer time period,
retail outlets daily in the morning by 11 am
Responsive- catering to larger demand every day

Efficient -reducing the cost of keeping inventory for a longer time period

Transportation

It is about moving the product from one

place to another in the supply chain.
Modes of transport - shipment and trucks
Faster delivery of items to B2B
customers:
1) outsourced transportation (private
truck and drivers transporting daily
items.
2) ratio of 30:70.
Total they are using 110 trucks
-distribution of items.
Responsive by using faster mode and
provide customers items on time.
Efficient- outsourcing transport as to
maintenance cost

Information
Pull of information:
several sales boy who are given one
outlet and for 365 days
understand the trends, behaviors and
demand pattern of end consumers.
Responsive - estimate that for every
event, demand increase by 30% from
regular stock
10,000-12,000 item for large retail
stores and 1000-4000 for small retail
stores.
SAP- which integrates all business
areas
maintains purchasing, good receiving,
material storage, consumption
planning and inventory level record
for the facilities and warehouse
together

Sourcing

domestic and international buyers at the same time, mainly

focuses on quality of the product so for that they need quality rawmaterial above cost in this area.
They have selected suppliers that could provide them high quality of
gluten, yeast, Margarine and these suppliers are international.
Other raw-materials are domestic, but still carefully selected the best
suppliers who have repute in the market for providing quality material and
on time.
has three as back-up for each and every supply-avoid uncertainty from
suppliers and remain responsive.

Pricing

Amount which customers are willing to pay for the product.

The company is able to achieve economies of scale -charge
a fixed price
Profit Margin 2-3%
quality of product is very high -not charging high price

Distribution Network
Retail storage with customer pickup
in this option- inventory is stored
locally at retail stores
B2B and B2C
Customers walk into the retail store
and pick it up retail store shelf

3 Steps
Step 1