Supply Chain Management

TERM-REPORT
Fall-2020

Submitted To:
Sir Sajid
 Submitted By:
Sahiba Faisal
Danyal Sattar
Mansoor Khan

Letter of Transmittal
December, 19th 2020
Sir Sajjid
Course- Supply Chain Management
It brings us great pleasure and excitement to send the paper. This report provides us with detailed
details on the subject of how this study applies the various pieces of experience and what the
following phrases are passed through the institution before it is finished.
Although compliance has been carried out, compliance with all facets of the report is our key
priority.
Yours truly,
Sahiba Faisal
Mansor Khan
Danyal Sattar
Contents
.................................................................................................................................................................... 4
Agility Pakistan...........................................................................................................................................4
Background.................................................................................................................................................4
Partners........................................................................................................................................................5
Objectives....................................................................................................................................................5
Role of Inventory in Supply Chain..............................................................................................................6
Transportation and Distribution Processes..................................................................................................7
Financial Flow.............................................................................................................................................7
Return on Capital.........................................................................................................................................8
Supply Chain Activities...............................................................................................................................9
End-to-end options for the supply chain:.....................................................................................................9
Logistics Deal..............................................................................................................................................9
Distribution Scalable Services...................................................................................................................10
Parks for Agility Logistics (2PL)...............................................................................................................10
Inventory control:..................................................................................................................................11
Directed task management.....................................................................................................................12
Routing..................................................................................................................................................12
Picking and packing...............................................................................................................................12
Crossdocking.........................................................................................................................................12
Dispatching:...........................................................................................................................................12
Inspection:.............................................................................................................................................12
Solutions:...................................................................................................................................................12
Profound awareness...................................................................................................................................12
Sustainable growth....................................................................................................................................13
Conclusion.................................................................................................................................................13
Agility Pakistan
Agility is one of the most prominent names in the logistics industry, offering world-class logistic
services in Pakistan and worldwide. Agility Logistics is a public traded company headquartered
in Kuwait. It offers smart, efficient, and tailored supply chain solutions equipped with the latest
methods and technologies to help operate the business operations smoothly and efficiently on a
global scale.
Agility Logistics is spread over a vast network. If we just talk about Pakistan, it has more than
700 employees under its name. In addition to that, it covers more than 1 million sq. ft. of
warehouse space in the five different locations from where it operates that consists of eight
different offices as well.
Since 2001 Agility Logistics centered on offering their clients genuinely tailored services and
flexible supply chain answers to fulfill their business goals. Agility offers and deploys in services
in a wide array of industries it has its clients in multiple sectors such as
1. FMCG
2. Telecom,
3. Pharmaceuticals
4. Hi-Tech
5. Retail
6. Apparel
7. Fashion
8. Chemicals
9. Engineering
10. Oil and Gas
11. Government Services.

Background
Agility's main focus is in markets that have potential, its tailor-made and customized solutions
bring the highest level of customization which present an efficient solution to the supply chain
related issues. The logistics provider originated from Kuwait in the year 1979 it got its start as
neighborhood warehousing issuer in Kuwait, and soon expanded its operation becoming the
leading player in supply chain consultation industry in the gulf countries. It acquired some of the
soundest companies in the market and then those came under the logo of agility. Currently the
company offers it services in more than 100 nations and consultation quality remains unmatched.

Partners

Agility partners up with multiple business to make the highest quality of services possible for its
clients some of the names are

 PWC logistics

 Synergy

 Logistic

 Geo logistics

 Lassen

 Tri star

 GES

 Matrix

 Translink

Importance of Supply Chain

Every business is different from other businesses, but one thing that's common in all of the
businesses is the requirement of Supply Chain Management. Supply chain management can be
called the performance or revenue decider for the business. By using the right supply chain
Strategies Company can reduce the costs and boost the customer experience. 

Agility currently facilitates companies in many industries. It has industry-wise standard specific
solutions, which it deploys by a standardized process or by a personalized method depending on
the type of the solution needed facing and concerning the solution. Agility keeps in mind the
individual needs and problems of its clients and then proceeds to make optimal supply chain
networks to keep in mind what will best suit them. Its focus on sustainability and cost-cutting. It
opens up a lot of new opportunities and paths for its clients.
Objectives
– To provide individual supply chain solutions for a changing world.
– To make a step-change in the supply chain
– To minimize the extra costs of labor
– To implement the latest supply chain technology to boost supply chain operations' efficiency
that benefits the customers directly.
– To reduce the costs through optimizing storage
– To sustain the environment by reducing the carbon footprint.
– Waste management and recycling

Role of Inventory in Supply Chain

Inventory management is a critical function of any logistic company. If the inventory is not
managed correctly, it can cause extra costs to the company. Agility Logistics see inventory
management as a more comprehensive supply chain. Each type of goods are stored in different
areas. If the goods are chemical, hazardous, or require extra services like bagging or drumming,
Agility takes care of it all. 

At Agility Logistics, an individual team with inventory management expertise manages and
reviews all the warehouse operations. In addition to that, in house DGSA and HSSE experts
ensure compliance to maximize customer satisfaction. Agility warehouse operations assignment
includes, 

 Safety & DGSA Audit

 Receipt & Put-away
 Reserve & Forward Stock
 Picking & Packing
 Marshalling & Loading
 WMS Capability / Automation
 Cycle Counting
 Inventory Management & Accuracy
 Racking & Block Stacking
 Materials Handling Equipment
 Productivity
 Pick Accuracy
 Capacity & Utilization
 Manual Handling
Transportation and Distribution Processes
Agility is one of Pakistan's biggest 3PL suppliers, offering cutting edge warehousing and
dispersion offices. Deftness works a 20,000-sqm stockroom in Karachi to oversee dissemination
for a worldwide customer merchandise goliath.
The client depends on Agility for stockroom administrations, including getting and stock control
of crude material and completed items. The office - furnished with stockroom, the executive's
frameworks, and taking care of gear - ensures effective administration of the client's items and
circulation all through the nation. Deftness additionally offers some benefits included
administrations, for example, pressing, dealing with, and marking.
The transportation and distribution process of Agility Logistics can be divided into several steps.
These steps can vary from the type of service and inventory of the customers as per their
demand.

Financial Flow
Despite regional and economic challenges, agility has produced progress. In the last
financial year, after three consecutive years of double-digit growth, EBITA rose by over five
percent. For the logistics sector, global trade conflicts, international economic instability, and
financial market pressure in emerging markets all led to a difficult year. Given this climate, the
organization proceeded to concentrate on digitization on driving organisational productivity and
improved customer experience. Beyond internet, a primary investment priority has still remained
on emerging markets. This included the development of logistics parks throughout the Middle
East and Africa, the Reem mega-mall project in Abu Dhabi, via the fuel logistics subsidiary,
taking in new ocean vessels and fuel farms.
In the current year, the global economy encountered uncertainty that had an effect on the
logistics sector, as well as slower consumer activity in some countries that could influence some
portfolio companies. They were well placed to man oeuvre across them, amid these obstacles. It
should be noted that the company’s earnings before tax has posted a fourteen percent
compounded annual growth rate since the past five years and produced greater than 20 percent
for its shareholders. Financially, in last year, the company posted a greater than 60 million in net
profit, per share, an improvement of more than 6 percent from the past two years. Revenue hit
1000 million for the last year and Earning before tax was greater than 190 million, rises of about
2 % and 25 % respectively, and the Board of the organization acknowledges the credibility of the
financial results prepared
The financial burden of the Covid-19 situation has had an uneven impact on agility firms.
This has been relatively well weathered by the contract logistics industry and logistics parks
since demand for storage space has been steady or increased, particularly when consumers have
tried to add to the protection stock or encourage pandemic-driven growth in e-commerce sales.
They also encountered fast acceptance of disruptive and evolving innovations connected to the
pandemic or underlying CSR paradigms in several cases. Other company undertakings, such as
aviation and airport activities, have been directly influenced by the drop in air transport and
traffic, and are now pivoting towards the creation of pioneering technological technology that
would be critical for global travel to be re-enabled.
In the first half of this year, both air and sea transport volumes declined by 24 percent and
15 percent in, owing to the effects of lockdowns, output stoppages, and economic downturn
across sectors and geographies on demand for COVID-19. However, owing to infrastructure
constraints and an increase in demand for urgent shipments of Protective equipment and other
medical supplies, the first quarter saw higher returns in transport by air. First-half net revenue
from rose by an estimate of 16 percent compared to the same span a year ago, while net revenue
from it fell by 15 percent compared to the same period last year.

Return on Capital
The method for estimating
capital gains is reasonably
simple. You deduct dividends
from net profits, put debt and
equity together and split debt
and equity into net income and
dividends. The return on capital
for the company was reported to
be 4.41%. In order to finance the
enterprise and optimize
shareholder equity, the primary
goal of the company is to ensure
that it retains safe capital levels.
The company controls its capital structure and in view of developments in economic
circumstances, allows modifications to it. The company can adjust the payment of dividends to
shareholders, return capital to shareholders or issue new shares in order to preserve or modify the
capital structure.

Supply Chain Activities

Agility Pakistan deliver technologies that link company with vendors and markets around the
world for forwarding, fleet management and contract logistics and the supply chain. Air
shipping, ocean transport (FCL/LCL), and rail freight options. World-class stock management
and inventory delivery. Customs clearing and brokerage facilities to ensure a seamless operation
of cargo. Exhibition and exhibition specialized logistical strategies, chemical logistics and
dangerous goods, as well as lift and construction logistics. Leading technologies and tools of
Agility include SKU awareness, improving performance, cutting costs and reducing the risk
supply chain.
Services

 Air Freight
 Ocean Freight
 Road Freight
 Contract Logistics
 Project Logistics
 Fairs & Events Logistics
 Chemical Logistics

End-to-end options for the supply chain:

Storage, freight forwarding, fleet management and brokerage, logistics, sales and records
management to help companies maximize and increase the performance of their supply chains.

Logistics Deal
In some of the world's increasingly rising markets, flexible warehousing and logistics capabilities
for a wide spectrum of value addition services. Agility offers worldwide warehousing of 2,2
million SQMs for consumers in the life sciences, automobile, high-tech, consumer products,
industry, retailing, and the oil and gas sectors. Agility runs world-class warehouse assets that are
driving business penetration and expansion in the Middle East and Asia Pacific.
The company is establishing a network of 2PL logistics and light manufacturing facilities
throughout the Middle East, Asia and Africa as well as 3PL warehouse solutions, which is
operated by Agility. Agility has over 10 million square meters of land, with over 3 million +
SQM of interconnected logistics infrastructure, the biggest private owner and commercial real
estate developer in the Middle East and Africa.
Strategic positions in the fastest developing markets and demand centers worldwide:
In the fast-growing markets of the Middle East, Africa, and Asia Pacific, Agility operates and
develops world standard warehousing that enables consumers to take new opportunities and
rapid business entry while reducing risks.
Distribution Scalable Services
Agility develops and manages provincial, cross-border and international door-to-door delivery
networks in order to satisfy the demand requirements in many markets.
Expertise and quality credibility in advanced management
Agility warehousing facilities are used to maintain quality integrity for consumers needing
partners with highly skilled handling, technological know-how and certifications in fields such as
GDP, TAPA and oil & gas.

Parks for Agility Logistics (2PL)

In Port Qasim, Karachi and Lahore there are more than 250,000 SQM of ground, warehousing
and logistics facilities. Consumer brands, dealers, automakers, distributors, and others are
counted among consumers.
Receiving: The first stage of the distribution process starts from the receiving which is done on
the paper work. In this stage the Supply Chain Manager of Agility Logistics signs and take
acknowledgment of the goods received and to be processed further as per the customer demands.

Put away: This step is where Agility Logistics uses the storage optimization strategies and
generate task. This is the pre step of inventory control.

Inventory control: Agility Logistics uses advance technology for Inventory management and
tracking. Because this company is handling every type of business, be it motorbikes, heavy
equipment or chemical inventory so the inventory management plays a crucial role here.
Company have separate warehouses of different type of inventory. There is an automated system
for keeping the inventory count and location.

Directed task management: In this stage, the dispatching is done through different modes of
transportation. There is an individual team for task management which cater these functions.

Routing: In this step the manager analyse the details of the orders and selects the best route for
the transportation and delivery of the goods.
Picking and packing: This function is done through automated picking and packing. It includes
discrete, clusters, batch and zone picking. When packing is done, outbound container ID is
generated for tracking purpose. Each package is labeled.
Crossdocking: It is the process of picking commodities and moved directly from the inbound
dock to the outbound dock. It avoids storage process which reduces the costs. With that it
enhances the inventory velocity and reduce staffing equipment and space requirements which
reduces the overall inventory costs.

Dispatching: In this stage, the dispatching functions are performed and the goods are taken out
for loading.
Inspection: Before the goods get dispatched the quality control manager does a quick inspection
with the inspection team and make sure that all the goods are in the ready condition to be
delivered.

Loading: Now after the inspection is done, the units are loaded into the vehicles to be
transported as per the customer requirement.

The company gives consumer-pushed answers devoted to solving its customers complicated
logistics requirements. Its logistics facilities are strategically placed, i.e. In Karachi, Lahore,
Faisalabad and Islamabad catering to the FMCG, Telecom, Pharmaceuticals, Hi-Tech, Retail,
Apparel, Fashion and Oil and Gas sectors. In addition, the company also operates cold storage
centers in Karachi, Lahore and Islamabad.

Solutions:
Working in collaboration to evaluate the market, analyze potential for growth, develop
personalized strategies, manage execution, and ensure quality.

Profound awareness
The deep experience, quantitation analytical methods, and leading market technologies are
provided by team of supply chain solutions.

Sustainable growth
Almost always, strong logistics is greener. We will minimize costs and eliminate your
environmental impact by leveraging the supply chain. Their values are expressed by them.

Conclusion
Agility provides Integration of Agility Monitoring through the ERP of consumers to have maximum
control of both inbound and outbound buying orders. It provides trailer on site for aggregation of export
orders and distribution of all import orders. The supply chain management at agility is planned to be
Created and distributed KPI suites to support customers meet their strategic goals. It Implants on site at
busy hours. It allows for Improved forecasting, reduced inventory costs, more capital to focus on
company development. The company aims for less administrative time pursuing current orders and more
time taking fresh orders to expand the organization. To maintain policy on track, externally measured and
delivered indicators are followed.

Recommendations

 Since recognising possible challenges, below are few tips to mitigate against a failure of
the supply chain:
 Establish a close alliance with the vendors. When there is a strong partnership, it is often
better to press for favours. They would now be better informed to report any delays in
order to schedule accordingly.
 On a similar note, to distribute the danger, several supplier relationships can grow, likely
across different countries. A few suppliers you can trust, though are typically safer than
finding loads of half-hearted suppliers.
 Ensure the information system is running in real-time. Knowledge timeliness is an
important method when coping with supply chain concerns since it allows you to easily
make educated choices
 After moving from conventional methods to the logistics and supply chain management
system's proposed agile logistics approach, the implications or effects for the business
would follow.
 Diverse needs and increasing consumer conditions can be handled quickly and effectively
when the marketplace is more conscious of the local production sites than the middle.
 Inventory processing expenses, requests and consumer sensitivity, lead times and product
consistency can improve as we do not need to ship from Europe to satisfy the local
requirements of American or Asian consumers who take more time, incur more costs and
often increase inventory due to poor sensitivity to the market.
 Due to enhanced information exchange and the creation of local knowledge banks within
the enterprise, operational skills to handle potential developments would improve.
 The advantages of time-phased stock planning are various. By lowering inventory
holding costs, eliminating missed revenue by increased in-stock, reducing markdowns
and store-to-store transitions through earlier commodity supply, and improving efficiency
at fulfilment centres and stores, the majority of benefits lead to improved gross margins.
 It is not unusual for retailers to experience double-digit inventory percentage declines
while retaining or improving quality of service. Increased revenue and customer support
are added advantages as the inventory schedule more readily reacts to shifts in the market
outlook.