Contents

K & N 's Supply Chain Management ........................................................ 2

COMPANY MISSION ................................................................................ 3
................................................................................................................ 4
MARKET ORIENTED MISSION .................................................................. 4
K & N’s GOALS AND OBJECTIVES ............................................................. 4
SUPPLY CHAIN MANAGEMENT OF K&N’s ............................................... 5
SWOT ANALYSIS OF K& N’s ..................................................................... 5
STREGNTHS .......................................................................................... 6
WEAKNESS ........................................................................................... 6
OPPORTUNITIES ................................................................................... 6
THREATS ............................................................................................... 7
K & N’s BUSINESS PROCESSES & PRACTICES ........................................... 7
BUSINESS PROCESSES & PRACTICES ..................................................... 7
Poultry Breeding ................................................................................ 7
Hatching ............................................................................................ 8
Broiler Growing ................................................................................. 8
Feed Milling ....................................................................................... 9
Poultry Processing ............................................................................. 9
Ready-To-Cook ................................................................................ 10
Distribution System & Chicken Stores ............................................. 10
Quality Assurance ............................................................................ 10
Poultry Diagnosis & Research Institute ............................................ 11
STRATEGIC SUPPLY CHAIN PLANNING .................................................. 11

K & N 's Supply Chain Management

The year 1964; Pakistan a young independent nation forging ahead

towards a dream: self sufficiency in food production. Malnutrition
remained a major problem and one out of four children died before
attaining the age of five. 80% of ailing children were affected with
diseases caused by protein, vitamin and mineral deficiency. Poultry
production, the quickest and least expensive way of filling the protein
gap was planned to overcome malnutrition. Backyard poultry farming
had to graduate to a more professional level. January 1964, a young
man, Khalil Sattar, still a college student, had the vision to foresee a
need to establish poultry farm of 1,000 chicks. Little had he known his
flock was to become the foundation stone of K&N’s?
This was the simple, inspired and nationalistic beginning of K&N’s with
a single-minded objective of providing better nutrition for Health and
Happiness of the Nation.
Following are the business activities of K&N’s Pakistan:

 Poultry Breeding
 Poultry Processing
 Hatching
 Broiler Growing
 Feed Milling
 Distribution Systems and K&N’s Chicken Stores
 Quality Assurance Lab
 Poultry and Diagnostic Research Institute

Keeping the business activities in mind, following are the product

lines of K&N’s Chicken
in Pakistan:

 Ready-to-cook Products
 Fully cooked Products3.

COMPANY MISSION

Driven by its basic values in pursuit of perfection, K&N’s is committed

to have superior products and unmatched service through devoted people
and consistent development.
MARKET ORIENTED MISSION

Providing the best hygiene and nutrition for the health and happiness of
the nation being our very first promised makes us remain stick to our
commitment to the customers rather look for what one may call better
for one’s self. The increasing demand of our products all over the
country explains the worth; our promises are getting through our
valuable customers.

K & N’s GOALS AND OBJECTIVES

K&Ns has set an objective for providing better health and nutrition for
the nation. In order to achieve this objective K&N’ Built on years of
poultry expertise, and a commitment of food-safety, K&N’s integrated
all poultry production activities under one umbrella to ensure quality and
food-safety managing and controlling all stages of production.
Four basic objectives of absolute integrity, enthusiastic diligence,
continuous improvement & high-quality maintenance are at the core of
all operations which provide an impelling urge for attaining perfection.
Driven by its basic objectives in pursuit of perfection, K&Ns is
committed to have superior product and unmatched service through
devoted people and consistent development.
SUPPLY CHAIN MANAGEMENT OF K&N’s

SWOT ANALYSIS OF K& N’s

In order to gather useful information about its position in the market and
commercial viability,
K&N’s use SWOT analysis to determine various factors which may
improvise the overall standard, quality and brand equity while growing
in competition to other production units in Pakistan. In its quality
assurance cell, the company maintains a check and balance on methods
of sales distribution, new business ideas and strategic options, such as
entering a new market or launching a new product in its product line,
changing its suppliers and outsourcing its services .A few points
necessary to be included in this section are given in coming sections.
STREGNTHS

The company is now a producer of its own unique type which produces
various categories of products segmented for different chunks of
population while remaining in lowest costs.
Furthermore, Along with the trust, K&N’s has established its name in
international market as well. This is driven by a factor of self-production
plants which are self-sufficient to produce ingredients and helping
materials by themselves for K&N’s finished products.
Another factor is the strong supply chain through its distribution
channels. These factors are the basic strengths of our product inherited
from the company setup. The unique taste and first-time introduction in
the markets have a vast scope in the product line of its nature

WEAKNESS

Though no company is a perfect in business activity performances, yet

pricing strategies have been the pinching element in company’s market
positioning. Though the products are cost effective as we take quality
under

consideration yet most of the products are targeted for the upper class of
society. We can use appropriate and differentiated pricing strategy to
avoid this weakness

OPPORTUNITIES

As K&N’s majorly operates in Pakistan, a country where distribution of

products is limited to specific areas within an urban sector hence
grooming their product of under such circumstances has always been an
opportunity for K&N’s. By improving their Distribution channels as
well as pricing strategies for, can give a robust increase in brand equity
and can promote their product demand overall in the market.

THREATS

Threats are always there in poultry-oriented firms so K&N’s keeps an

eye on new competitors in dealing with different products related to
chicken and poultry. At present the only threat is the diseases spread
amongst broiler chickens which can be prevented by establishing medic
control at breeding premises of company.

K & N’s BUSINESS PROCESSES & PRACTICES

BUSINESS PROCESSES & PRACTICES

Poultry Breeding

K&N’s maintains layer and broiler parent stock populations in different

regions of Pakistan.
Layer parent stock farms are located in the south and broiler parents are
bred in the colder mountainous northern region. Both types of parents
are housed at isolated breeder farms. K&N’s operates several
strategically located hatcheries covering all day-old chick markets to
ensure delivery of high-quality layer and broiler day-old chick to
commercial farmers throughout Pakistan Strict bio-security measures are
taken at all farms to reduce the risk of disease transmission through
mechanically and physically transferred disease causative agents.
Careful attention is paid to bird health, vaccination, weightiest and
selection to maintain healthy and uniform breeding flocks

Hatching

All hatcheries are equipped with most modern cooling, heating and
humidification systems to provide a uniform and consistent hatchery
environment independent of varying outdoor we at her conditions.
Incubators from world-renowned manufacturers are installed at all
hatcheries and their performance data is recorded and monitored by a
computerized incubation monitoring system. Upon arrival from breeder
farms, hatching-eggs are candled at all hatcheries to remove eggs, which
may have cracked during transit. Sanitation and hygiene is enhanced by
mechanically transferring eggs from one type of tray onto another until
chicks are harvested from hatchers. Maximum care is exercised while
handling, reconstituting and administering vaccines using proper
techniques and modern equipment. To ensure chicks get off to the
healthiest start from viral diseases, they receive inject able and spray
vaccinations at the hatchery.

Broiler Growing

In addition to supplying day-old chicks to farmers, K&N’s is also

engaged in broiler growing at company owned farms to produce broilers
for our poultry processing plant. Under the watch full eye of our own
poultry nutrition, health and housing specialists, they grow-up in large,
clean and airy houses equipped with state-of-the-art heating, cooling and
ventilation equipment. The chickens freely strut around, breathe fresh
air, eat at will and drink fresh, cool and pure water. We really mean pure
water as our chickens do not drink water from troughs, which can lead to
water contamination

Feed Milling

To ensure consistent performance with high standards, our chickens

really live on a healthy and well balanced diet. It is based on: natural
grain products such as corn, corn gluten, rice and wheat; oil seed meals
such as soybean, canola and sunflower; fish; oyster shells supple minted
with multi-vitamins and minerals. Feed is always tested by our quality
assurance lab to ensure it is wholesome because K&N’s does not
compromise on quality. Feed is also supplied to our day-old chick
customers and growers for realizing the profit potential of K&N’s
quality day-old chicks

Poultry Processing

At our state-of-the-art poultry processing plant, only healthy chickens

are used to produce high quality, safe and healthy chicken products.
Chickens are Halal slaughtered by hand (Islamic Zabeeha) strictly
according to The Shariah. After Halal slaughter, chickens are processed
in the most hygienic and automated manner. During processing, the
birds are washed inside out and our veterinarians constantly examine the
birds to confirm they are wholesome. Cleaning is constant

and each evening the entire operation is completely washed and

sanitized. Only after very thorough inspection, the plant begins Supply
Chain Management of K & N’s operation each day. All chickens pass
through veterinary inspection to confirm they are wholesome

Ready-To-Cook

Ready-To-Cook and Fully Cooked Chicken Products Some chickens are

used for preparing our ready-to-cook and fully cooked chicken products
using state-of-the-art meat preparation and production equipment.
Choicest meat is carved and select ingredients are added to our premium
chicken meat, for preparing flavorful high-quality products such as
burger patties, nuggets and kababs. Our world-class value-added chicken
products are individually quick frozen using Individual Quick Freezing
(IQF) Technology.

Distribution System & Chicken Stores

Products are stored at -21ºC to maintain freshness. Packed products are

moved into K&N’s sanitized refrigerated trucks for distribution to
ensure uncompromising quality control. K&N’s chicken products are
available at K&N’s Chicken Stores and leading retailers and also
delivered o quality and food-safety conscious institutions such as hotels,
restaurants, airlines, clubs and international restaurant chains

Quality Assurance
Lab K&N’s state-of-the-art Quality Assurance Lab monitors the entire
integration process, from livestock to feed and on to preparation of
ready-to-cook & fully cooked products. The entire integration process is
monitored and regulated to ensure K&N’s chicken products are
wholesome, safe and healthy.

Poultry Diagnosis & Research Institute

With the assistance of US Agency for International Development,

K&N’s Poultry Diagnostic and Research Institute was established in
collaboration with Pakistan Agricultural Research Council. It is a very
well equipped and state-of-the-art disease diagnostic, feed and feed raw
material testing laboratory which provides invaluable service to
Pakistan’s poultry industry through research and extension service in
close coordination with K&N’s Advisory Service.

STRATEGIC SUPPLY CHAIN PLANNING

There are four steps which basically form the plan for our company
which could derive results in form of long term company survival
K & N’s Supply Chain Strategy

Product flow involves the movement of goods from a supplier to the

customer, as well as any customer return or service needs, information
flow involves getting orders. Supply chain management flows can be
divided into below main flows:

1. K & N’s goal of effective supply chain management system is to

reduce inventory ( with the assumption that products are available
when needed)
2. K & N’s supply chain management involves coordinating and
integrating these flows both within and among companies. Supply
chain management (SCM) of K & N’s is the oversight of materials,
information, and finances as they move in a process from suppliers
to manufacturer to wholesaler to retailer to customer and updating
delivering status, the financial flow consist of credit terms,
payment schedules, and consignment and title ownership
arrangements.

Framework of Supply Chain in K & N’s

Supply Chain Management of K & N’s 6

1. 7. Abso