Dawn Bread

Supply Chain Implementations & Operations

Group Members: 1. Muhammad Yasir 2. Kamran Safdar 3. Ali Shan
Rashid 4. Haider Karim 5. Aqsa Aftab

Bahria University 12/26/19 BBA – 7M

 Acknowledgement

We would like to express our deepest appreciation to all those who provided all
the support and helped us in completion of this report. The success and outcome
required a lot of guidance and assistance from several people and we are
extremely fortunate to get this all along in order to complete our report on “Dawn
Bread”. We wish to express our sincere gratitude to our respected lecturer Sir.
Raja Khalid Hafeez for providing us the opportunity and giving us all support and
guidance regarding this report. Furthermore, this assignment could not have been
successful without the cooperation and hard work of our group members.
Table of Contents
Acknowledgement ................................................................................................. 1
Introduction ....................................................................................................... 3
SCOR Model ....................................................................................................... 3
Plan .................................................................................................................... 4
Source ................................................................................................................ 4
Make .................................................................................................................. 4
Deliver................................................................................................................ 4
Return ................................................................................................................ 4
SCOR Model Scope ............................................................................................. 5
Customer Interactions .................................................................................... 5
Product Transactions...................................................................................... 5
Market Interactions ....................................................................................... 5
Level 1 ............................................................................................................ 5
Level 2 ............................................................................................................ 5
Level 3 ............................................................................................................ 5
Interview Questionnaire ..................................................................................... 6
Planning in Dawn Bread ..................................................................................... 8
Sourcing in Dawn Bread ..................................................................................... 8
Making of Dawn Bread ...................................................................................... 9
Delivery in Dawn Bread .................................................................................... 10
Return Policy Dawn Bread ................................................................................ 10
References ....................................................................................................... 11
Introduction
This report is based on the research of the Pakistan’s bread market, specifically
the operations included in the supply chain of the DAWN Bread company from the
point of initiation where the raw material is purchased to the point of the
consumption where the consumer gets the bread.
For the purpose of describing all the points without missing any as each of the
point is of equal significance in the supply chain network of the company, we are
taking the help of the SCOR Model. We will describe the processes of the DAWN
Bread company by relating the from the SCOR Model.

SCOR Model
SCOR Model Stands for (Supply Chain Operations Reference Model). It can be
defined as SCOR model is a process meant to assess waste, establish standards,
and continuously improve. It is a repetitive framework of constant engagement
and discovery, developed to describe all the business activities associated with the
phases of satisfying a customer.
The SCOR model is based on three major principles:
Process modeling/re-engineering, measuring performance, and best practices.
There are 5 distinct process-modeling building blocks to the SCOR model:

Plan
These are processes that relate to demand and supply planning. Standards must
be established to improve and measure supply chain efficiency. These rules can
span compliance, inventory, transportation, and assets, among other things.

Source
This step in the SCOR model involves any processes that procure goods or services
in order to meet a demand (real or planned). Material acquisitions and sourcing
infrastructure are examined to determine how to manage the supplier network,
inventory, supplier performance, and agreements. This stage should help you plan
on when to receive, verify, and transfer a product in the supply chain.

Make
In order to meet planned or actual demand, this is the process in which a product
is transformed to its final state. This step is particularly important in the
manufacturing and distribution industries, and helps to answer the questions of:
make-to-order, make-to-stock, or engineer-to-order? The "make" part of the
process includes production activities, packaging, staging, and releasing the
product. It also involves production networks and managing equipment and
facilities.

Deliver
Any process that involves getting the product out, from order management and
warehousing, to distribution and transportation. This step also involves customer
service and overall management of product lifecycles, finished inventories, assets,
and importing/exporting requirements.

Return
This final step focuses on all products that are returned or received, for any
reason. Organizations must be prepared to handle the return of defective
products, containers, and packaging. The return process involves the application
of business rules, return inventory, assets, and regulatory requirements. This final
step directly extends to post-delivery customer support and follow-up.

SCOR Model Scope

The SCOR model does not attempt to explain every business process or activity. As
in all business models, there is a specific scope that the SCOR model addresses,
including the following segments:
Customer Interactions
The entire process of the customer relationship, from order entry through paid
invoice.
Product Transactions
All product, from the supplier's supplier to the customer's customer, including
equipment, supplies, bulk products, etc.
Market Interactions
From the understanding of demand, to the fulfillment of every order.

The focus of SCOR can also be defined and measured on 3 levels of process detail.
Level 1
Defining Scope - geographies, segments, and context
Level 2
Configuration of the supply chain
Level 3
Process element details - identifies key business activities within the chain.
Interview Questionnaire
Q: How do you plan about the future demand of your product?
Q: Which forecasting technique do you use? (qualitative or quantitative)
Q: Who plans the demand in your company?
Q: Is planning centralized or decentralized?
Q: Who plans the supply in your company?
Q: How do you plan the supply for your product?
Q: How do you select your supplier?
Q: What are the criteria for selecting the supplier in your company?
Q: From where you purchase the raw material for your products? And what is the
reason for purchasing from that supplier?
Q: Who selects the supplier in your company? Is it one or two suppliers or more?
Local suppliers or international?
Q: Reason for choosing local or international supplier?
Q: Do you keep long term relationship with your suppliers?
Q: How do you negotiate with your suppliers? Bidding or negotiation?
Q: Who negotiates with the supplier?
Q: Who purchases raw material? Nonproduction items? Is it the same person who
purchases for all or different?
Q: What is the process of making bread? What are the ingredients required?
Q: Who is responsible for the production process? Who designs and monitors it in
your company?
Q: Is packaging process done internally or it is outsourced?
Q: What is the reason for outsourcing or packaging internally?
Q: Do you own the distribution, or it is outsourced?
Q: Do you own your vehicles for transportation, or you use carrier services?
Q: Reason for owning vehicles or outsourcing?
Q: What are the intermediaries involved in the process of delivery to the final
consumers?
Q: What are the places in the country that your products are available?
Q: Is delivery system same for all locations?
Q: What is the return policy?
Q: How do you manage your relationship with the customers?
Q: What is your purchasing process?
Q: Do you use purchase requisition and purchase orders in your purchasing
process?
Q: Which type of purchase order do you use? (Standard, Planned, Blanket)
Q: What is the position of purchasing in your organization?
Q: Who purchases the raw material? And how often it is purchased? And from
where do you purchase?
Q: What is the purchasing limit given to purchasing officer for purchases?
Q: What is your supply base? (how many permanent suppliers)
Q: How you choose supplier?
Q: How do you evaluate your supplier?
Q: Who checks the quality of the material purchased? And how often it is
checked?
Q: Packing Slip, Bill of lading, Acknowledgement slip, Invoice, Discrepancy report.
Do you use these documents in your purchasing process?
Q: Is bank involved in all transactions?
Q: Who pays for the damages due to transition from supplier to the buyer?
Planning in Dawn Bread
On our questions of planning they told me that they do not plan for the long term
because the demand of the bread changes on daily bases.
On our question about forecasting technique they answered that they do not
forecast for long term.
Forecasting technique used by the company is quantitative, just to have an idea
about the future demand.
Demand is planned by the zone managers for their specific zones. Daily actual
demand is recorded by the salesman for the very next day.
In the company most of the decision making is decentralized.
Supply is also planned by the zone managers differently according to demand of
their zones.

Sourcing in Dawn Bread

They select their suppliers through RFI/RFQ.
Criteria for selecting the supplier is mostly based on the amount of credit supplier
is offering, Consistency of supplier, Quality provided by the supplier, Market
reputation of the supplier &. History of the supplier.
They mostly purchase the raw material for their products from Punjab and interior
Sindh and sometimes from foreign countries like they import Margery for their
paratha from USA and the reason for purchasing from these suppliers is the
quality of the raw material they are providing
Supplier is selected through a standard supplier selection process by the
procurement officer in the company.
Long term relationships are kept with the suppliers to work on the supplier
relationship management for the efficiency.
Face to face negotiation is the basic tool to work on the pricings of raw material
between the supplier and procurement officer.
Procurement officers also differ according to the nature of the material
purchased.
The purchasing process starts when a production manager feels a need of the raw
material and calls directly to the procurement officer and places the order related
to the need. Procurement officer makes a purchase order and then sends it to the
permanent supplier in the supply base.
Supplier is evaluated by checking the quality of the raw material quality every time
an order is shipped to the buyer. Quality is checked by the quality control team.
Supply base of the Dawn bread contains 14 to 15 suppliers for the purchasing of
the raw material required for the daily production of the production plant.
Formal documented system is not more common. Most of the work is done by just
phone calls or e-mails.
All the transactions involve bank to have a complete record.
Supplier pays for the damages (if any) in transition from the supplier to the Dawn
Bread.

Making of Dawn Bread

The process of making bread involve six steps in total to convert the raw material
into a finished product.
• Mixing
In mixing floor is mixed with water by a machine to make a dough.
• Molding (In different sizes and shapes)
Mixed dough is then molded into different shapes and sizes according to the
requirements of different breads.
• Kept at Low temperature
Then sized dough is kept at very low temperature to make it strong
• Oven baking
Then it is baked in oven at the required temperature.
• D-panning
In this process the bread is cut in many standard pieces
• Packaging
Finally, bread is packed in the plastic labelled bags

Delivery in Dawn Bread

They own the distributions themselves just to have a control on the processes.
They also own all the vehicles used for transportation, either it is inbound logistics
or outbound.
The only intermediaries involved in the process of delivery to the final consumers
are the retailers only.
Their products are available all over Pakistan. And they also work internationally.
They have 18 Distributions all over the World.
Their delivery system same for all locations whether it is in country or not.

Return Policy of Dawn Bread

In return policy of bread, a specific percentage is fixed for the returns to control. It
is 15% of the total in most cases.
To manage relationship with their customers they were Providing Billboards,
Stands, Counters, Calendars and sometimes they were sponsoring the opening of
new shops.
References
https://www.handshake.com/blog/scor-model
https://www.dawn.com/
https://pk.linkedin.com/in/intikhab-ali-59811925
Appendix