RETAIL SUPPLY CHAIN MANAGEMENT

FINAL PROJECT

ID FULL NAME
L1F19BBAM0012 RANA JAHANZAIB ALI
L1F19BBAM0007 HAMZA TAHIR
L1F19BBAM0040 MOHTISHAM SOHAIL

SUBMITTED TO: MS SYEDA UZMA TAHIRA

DATE OF SUBMISSION: 23 JULY,2023

SESSION OF SUBMISSION: SPRING 2023

FOR GRADING:
COMMENTS: MARKS SECURED:
 Table of content

Table of content..............................................................................................................1
Summary........................................................................................................................2
Introduction of company................................................................................................4
Engro Foods Limited is a Pakistan-based dairy and beverages company that has
gained a prominent position in the food and agricultural sectors. Established in 2004,
Engro Foods has grown to become one of the leading players in the country's dairy
industry, offering a diverse range of high-quality products...........................................4
retail supply chain management process of Engro Foods:.............................................5
1. Demand forecasting: ...........................................................................................6
2. Product procurement:..........................................................................................6
3. Production:..........................................................................................................6
4. Warehousing: ......................................................................................................6
5. Distribution: .......................................................................................................6
6. Retail:..................................................................................................................6
 Demand volatility:...............................................................................................7
 Competition:........................................................................................................7
 Cost pressures: ...................................................................................................7
 Regulations:.........................................................................................................7
Inventory Management Strategies and Policies.............................................................7
Data gathering.........................................................................................................8
Data analysis............................................................................................................8
Forecast creation......................................................................................................9
Forecast review........................................................................................................9
Forecast monitoring...............................................................................................10
Merchandise Planning..................................................................................................10
 Demand forecasting: ........................................................................................11
 Product selection: .............................................................................................11
 Pricing: .............................................................................................................11
 Inventory management......................................................................................11
Retail Buying and Logistics.........................................................................................12

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 Retail buying ........................................................................................................12
Logistics................................................................................................................12
 Market research: ...............................................................................................13
 Supplier relationships:.......................................................................................13
 Product analysis:...............................................................................................13
 Transportation: .................................................................................................13
 Warehousing:....................................................................................................13
 Inventory management:.....................................................................................14
 Customer service:..............................................................................................14
Documentation and Record Keeping Process..............................................................14
 Document creation:...........................................................................................15
 Document storage: ............................................................................................15
 Document retention: .........................................................................................15
 Document disposal: ..........................................................................................15
 Compliance:......................................................................................................15
 Protection of assets:...........................................................................................16
 Accuracy and completeness: ............................................................................16
 Internal audits and investigations: ....................................................................16
Technology and Software Used...................................................................................16
 ERP software: ...................................................................................................16
 Supply chain management software: ................................................................17
 Customer relationship management (CRM) software:......................................17
 Warehouse management software: ...................................................................17
 Manufacturing execution system (MES) software: ..........................................17
 Business intelligence (BI) software:.................................................................17
 Cloud computing: .............................................................................................17
 Mobile apps.......................................................................................................17
 Internet of Things (IoT):...................................................................................18
Problem Analysis and Recommendation.....................................................................18
Recommendation:..................................................................................................19

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 Summary

Engro Foods is a leading Pakistan-based dairy and beverages company that operates
in the food and agricultural sectors. The company specializes in the production,
processing, and marketing of a wide range of dairy products, including milk, yogurt,
ice cream, and cheese. Additionally, Engro Foods also offers fruit juices, drinks, and
other value-added products.

Engro Foods is known for its commitment to quality and innovation, leveraging
advanced technology and modern production techniques to ensure the freshness and
nutritional value of its products. The company maintains a strong focus on
sustainability and responsible sourcing, working closely with farmers to promote
sustainable agricultural practices and improve milk production.

With a diverse portfolio of well-known brands such as Olper's, Olwell, Omore, and
Tarang, Engro Foods has established a strong presence in the domestic market and has
expanded its operations to international markets. The company's products are widely
available across Pakistan, catering to the evolving needs and preferences of
consumers.

Engro Foods places great emphasis on consumer satisfaction and invests in research
and development to introduce new and improved products. The company also actively
engages with its customers through marketing campaigns and promotional activities
to build brand loyalty and awareness.

As part of the Engro Corporation, Engro Foods benefits from the group's extensive
expertise in various sectors, including fertilizers, energy, and petrochemicals. This
strategic advantage allows the company to leverage synergies and achieve operational
efficiencies, ensuring sustainable growth and profitability.

In summary, Engro Foods is a prominent player in the Pakistani dairy and beverages
industry, known for its high-quality products, commitment to sustainability, and

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strong market presence. The company's dedication to innovation and customer
satisfaction has enabled it to become a trusted choice for consumers seeking nutritious
and delicious dairy products and beverages.

Introduction of company

Engro Foods Limited is a Pakistan-based dairy and beverages company that has
gained a prominent position in the food and agricultural sectors. Established in 2004,
Engro Foods has grown to become one of the leading players in the country's dairy
industry, offering a diverse range of high-quality products.

The company focuses on the production, processing, and marketing of dairy products,
including milk, yogurt, ice cream, and cheese. Engro Foods also extends its product
portfolio to include fruit juices, drinks, and other value-added items. With a
commitment to delivering nutritious and delicious offerings, the company caters to the
evolving needs and preferences of consumers.

Engro Foods places a strong emphasis on sustainable practices and responsible

sourcing. The company works closely with farmers to promote sustainable
agricultural methods, improve milk production, and ensure the welfare of the dairy
industry as a whole. By implementing advanced technology and modern production
techniques, Engro Foods ensures the freshness and quality of its products.

The company boasts a portfolio of well-known brands that have gained significant
recognition and consumer trust. Some of its popular brands include Olper's, Olwell,
Omore, and Tarang, each catering to specific market segments and consumer
preferences.

Engro Foods has a robust distribution network that enables its products to reach
consumers across Pakistan. It maintains a strong presence in both urban and rural
areas, making its offerings accessible to a wide customer base. The company actively
engages with consumers through marketing campaigns and promotional activities to
build brand loyalty and increase awareness.

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 As part of the larger Engro Corporation, Engro Foods benefits from the
conglomerate's expertise in various sectors, including fertilizers, energy, and
petrochemicals. This affiliation allows the company to leverage synergies and achieve
operational efficiencies, supporting its sustainable growth and profitability.

Engro Foods continually invests in research and development to introduce innovative

products and improve existing offerings. This commitment to innovation, coupled
with its customer-centric approach, has helped the company maintain a strong
competitive edge in the market.

In conclusion, Engro Foods Limited is a prominent player in Pakistan's dairy and

beverages industry. With a focus on quality, sustainability, and customer satisfaction,
the company has established itself as a trusted choice for consumers seeking a wide
range of nutritious and flavorful dairy products and beverages.
Engro Foods offers a diverse range of products and offerings in the dairy and
beverages sector.

Retail supply chain management process of Engro Foods:

Engro Foods' retail supply chain management process is a complex and multi-
faceted process. It involves the following steps:

1. Demand forecasting: Engro Foods forecasts demand for its products by

analyzing historical sales data, customer demand data, and market trends. This
helps the company to determine how much product to produce and how much
product to store in inventory.
2. Product procurement: Engro Foods procures the raw materials and
packaging materials it needs to produce its products. This involves sourcing
suppliers, negotiating prices, and ensuring that the materials are of the highest
quality.

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3. Production: Engro Foods produces its products in its manufacturing plants.
This involves following strict quality control procedures to ensure that the
products meet the company's standards.
4. Warehousing: Engro Foods stores its products in warehouses. This helps the
company to ensure that it has enough product to meet demand and that the product
is stored in a safe and secure environment.
5. Distribution: Engro Foods distributes its products to retailers. This involves
working with distributors, negotiating prices, and ensuring that the products are
delivered on time and in good condition.
6. Retail: Retailers sell Engro Foods' products to consumers. This involves
displaying the products in a way that is appealing to consumers and ensuring that
the products are priced competitively.

The retail supply chain management process of Engro Foods is a critical part of
the company's overall business strategy. By ensuring that the process is efficient
and effective, Engro Foods is able to deliver its products to consumers in a timely
and convenient manner.

Here are some of the key challenges that Engro Foods faces in its retail supply
chain management process:

 Demand volatility: Demand for Engro Foods' products can be volatile, which
can make it difficult to forecast demand and manage inventory levels.
 Competition: Engro Foods faces competition from other companies that sell
similar products. This can make it difficult to maintain market share and grow
sales.
 Cost pressures: The cost of raw materials and packaging materials can
fluctuate, which can put pressure on Engro Foods' margins.
 Regulations: Engro Foods is subject to a variety of regulations, which can
make it difficult to operate its retail supply chain.

Despite these challenges, Engro Foods has been able to build a successful retail
supply chain management process. By focusing on efficiency, effectiveness, and

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 compliance, Engro Foods is able to deliver its products to consumers in a timely
and convenient manner.

Inventory Management Strategies and Policies

here is some more detail about Engro Foods' forecasting process:

Data gathering

The data that Engro Foods gathers for their forecasting process includes:

 Historical sales data: This data shows how much of each product Engro Foods has
sold in the past.
 Customer demand data: This data shows how much of each product customers
want to buy.
 Market trends: This data shows how the market for Engro Foods' products is
changing.

The data is gathered from a variety of sources, such as:

 Sales records: This data is kept by Engro Foods' sales team.

 Customer surveys: Engro Foods regularly surveys their customers to get their
feedback on their products.
 Industry reports: There are a number of industry reports that track the market for
Engro Foods' products.

Data analysis

Once the data is gathered, it is analyzed using a variety of forecasting methods.

These methods can be divided into two main categories: qualitative and
quantitative.

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Qualitative methods involve using expert judgment to make forecasts. This can
be done through surveys, interviews, or focus groups. Qualitative methods are
often used to get insights into factors that may impact demand, such as changes in
consumer preferences, economic conditions, or competitor activity.

For example, Engro Foods might conduct a survey of their customers to ask them
about their preferences for new products. They might also interview their sales
team to get their insights on how the market is changing.

Quantitative methods use historical data to make forecasts. This can be done
through a variety of methods, such as simple moving average, exponential
smoothing, and regression analysis. Quantitative methods are often used to
forecast demand for products that have a long history of sales data.

For example, Engro Foods might use simple moving average to forecast demand
for their Olper's milk. Simple moving average is a forecasting method that takes
the average of the most recent sales data to make a forecast.

Forecast creation

The results of the data analysis are then used to create a forecast for future
demand. The forecast is typically expressed as a range of values, with a most
likely value and a lower and upper bound.

For example, Engro Foods might forecast that they will sell between 100,000 and
120,000 units of Olper's milk in the next month. The most likely value is 110,000
units.

Forecast review

The forecast is then reviewed by the management team. The management team
may make adjustments to the forecast based on their own judgment. The final
forecast is then used to make decisions about inventory levels, production
schedules, and marketing plans.

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For example, the management team might decide to increase inventory levels for
Olper's milk if the forecast is higher than expected.

Forecast monitoring

The forecasting process is not a one-time event. The forecast needs to be

monitored on a regular basis to ensure that it is still accurate. If the forecast is not
accurate, it may need to be adjusted.

For example, Engro Foods might monitor the sales data for Olper's milk on a
weekly basis to see if the forecast is still accurate. If the sales data is higher than
the forecast, they might need to increase production.

Merchandise Planning

Merchandise planning is the process of determining the right mix of products to

sell in a store or online. It involves forecasting demand, selecting products, setting
prices, and managing inventory.

Engro Foods uses a merchandise planning process to ensure that they have the
right products in the right quantities at the right time. The process starts with
forecasting demand. Engro Foods uses a variety of data sources, including
historical sales data, customer demand data, and market trends, to forecast demand
for their products.

Once the demand is forecasted, Engro Foods selects products to sell. They
consider a variety of factors when selecting products, including the product's
popularity, the product's profitability, and the product's fit with Engro Foods'
overall brand.

After the products are selected, Engro Foods sets prices. They consider a variety
of factors when setting prices, including the product's cost, the product's
competition, and the product's perceived value.

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 Finally, Engro Foods manages inventory. They track inventory levels and make
sure that they have enough product to meet demand. They also make sure that
they don't have too much product, which can lead to spoilage or obsolescence.

The merchandise planning process is an important part of Engro Foods' overall

business strategy. It helps them to ensure that they have the right products in the
right quantities at the right time. This ultimately helps them to improve their
profitability and customer satisfaction.

Here are some of the key aspects of merchandise planning at Engro Foods:

 Demand forecasting: Engro Foods uses a variety of data sources to forecast

demand for their products. This includes historical sales data, customer demand
data, and market trends. The demand forecast is used to determine the right mix of
products to sell and the right quantities to order.
 Product selection: Engro Foods selects products to sell based on a variety of
factors, including the product's popularity, the product's profitability, and the
product's fit with Engro Foods' overall brand. They also consider factors such as
the product's seasonality, the product's shelf life, and the product's risk of
obsolescence.
 Pricing: Engro Foods sets prices for their products based on a variety of factors,
including the product's cost, the product's competition, and the product's perceived
value. They also consider factors such as the product's target market and the
product's pricing strategy.
 Inventory management: Engro Foods tracks inventory levels and makes sure
that they have enough product to meet demand. They also make sure that they
don't have too much product, which can lead to spoilage or obsolescence.

The merchandise planning process is an ongoing process that is constantly being

reviewed and updated. This is because the demand for products can change
quickly, and Engro Foods needs to be able to adapt their merchandise planning
process accordingly.

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 By following a systematic merchandise planning process, Engro Foods is able to
ensure that they have the right products in the right quantities at the right time.
This ultimately helps them to improve their profitability and customer satisfaction.

Retail Buying and Logistics

here is some information about retail buying and logistics at Engro Foods:

Retail buying is the process of selecting and purchasing products for sale in
retail stores. It involves identifying products that are in demand, negotiating prices
with suppliers, and ensuring that products are delivered on time and in good
condition.

Logistics is the process of planning, organizing, and managing the flow of goods
and services from the point of production to the point of consumption. It includes
activities such as transportation, warehousing, inventory management, and
customer service.

At Engro Foods, retail buying and logistics are closely intertwined. The retail
buying team works with the logistics team to ensure that products are delivered to
retail stores in a timely and efficient manner. This is important because it helps to
ensure that products are available to customers when they want them.

The retail buying team at Engro Foods uses a variety of tools and techniques to
select products for sale. These include:

 Market research: The retail buying team conducts market research to identify
products that are in demand. This research can be done by surveying customers,
analyzing sales data, or tracking trends in the market.

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 Supplier relationships: The retail buying team builds relationships with
suppliers to negotiate favorable prices and terms. This helps to ensure that Engro
Foods can get the best possible products at the best possible prices.

 Product analysis: The retail buying team analyzes products to determine their
quality, profitability, and fit with Engro Foods' overall brand. This helps to ensure
that Engro Foods only buys products that are of the highest quality and that will
be profitable for the company.

The logistics team at Engro Foods is responsible for the transportation,

warehousing, inventory management, and customer service of Engro Foods'
products. The logistics team works closely with the retail buying team to ensure
that products are delivered to retail stores in a timely and efficient manner.

The logistics team at Engro Foods uses a variety of tools and techniques to
manage the flow of goods and services. These include:

 Transportation: The logistics team works with transportation companies to

ship products to retail stores. This includes choosing the right transportation
mode, negotiating prices, and tracking shipments.
 Warehousing: The logistics team manages Engro Foods' warehouses. This
includes receiving products, storing products, and picking and packing products
for shipment.
 Inventory management: The logistics team manages Engro Foods' inventory
levels. This includes forecasting demand, ordering products, and tracking
inventory levels.
 Customer service: The logistics team provides customer service to retail
stores. This includes responding to customer inquiries, resolving customer issues,
and tracking shipments.

The retail buying and logistics teams at Engro Foods work together to ensure that
products are available to customers when they want them. This is important
because it helps to improve customer satisfaction and profitability.

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 Documentation and Record Keeping Process

here is some information about the documentation and record keeping process at
Engro Foods:

Engro Foods has a comprehensive documentation and record keeping process in

place. This process ensures that all relevant documents and records are properly
created, stored, and maintained.

The documentation and record keeping process at Engro Foods includes the
following:

 Document creation: All documents and records are created in accordance

with Engro Foods' policies and procedures. This ensures that all documents are
accurate, complete, and up-to-date.
 Document storage: All documents and records are stored in a secure location.
This ensures that the documents are protected from unauthorized access, damage,
or destruction.
 Document retention: All documents and records are retained for a specified
period of time. This ensures that the documents are available for reference or audit
purposes.
 Document disposal: All documents and records are disposed of in a secure
manner. This ensures that the documents are destroyed in a way that prevents
unauthorized access to the information.

The documentation and record keeping process at Engro Foods is important for a
number of reasons. First, it helps to ensure compliance with applicable laws and
regulations. Second, it helps to protect Engro Foods' assets and interests. Third, it
helps to ensure the accuracy and completeness of Engro Foods' financial records.
Fourth, it helps to facilitate internal audits and investigations.

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 The documentation and record keeping process at Engro Foods is a critical part of
the company's overall risk management framework. By ensuring that all
documents and records are properly created, stored, and maintained, Engro Foods
is able to mitigate the risk of legal liability, financial loss, and reputational
damage.

Here are some of the benefits of having a good documentation and record keeping
process:

 Compliance: By having a good documentation and record keeping process,

Engro Foods can demonstrate compliance with applicable laws and regulations.
This can help to protect the company from legal liability.
 Protection of assets: By having a good documentation and record keeping
process, Engro Foods can protect its assets. This can help to prevent fraud and
theft.
 Accuracy and completeness: By having a good documentation and record
keeping process, Engro Foods can ensure the accuracy and completeness of its
financial records. This can help to improve the company's financial performance.
 Internal audits and investigations: By having a good documentation and
record keeping process, Engro Foods can facilitate internal audits and
investigations. This can help to identify and address any potential problems within
the company.

Overall, a good documentation and record keeping process is essential for any
business that wants to be successful. By having a good process in place, Engro
Foods can mitigate risk, protect its assets, and improve its financial performance.

Technology and Software Used

Here are some of the technology and software used in Engro Foods:

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 ERP software: Engro Foods uses an ERP (Enterprise Resource Planning)
software to manage its business operations. This software integrates all of the
company's core business functions, such as accounting, manufacturing, sales, and
marketing.
 Supply chain management software: Engro Foods uses a supply chain
management software to manage its supply chain. This software helps the
company to track the flow of goods and services from suppliers to customers.
 Customer relationship management (CRM) software: Engro Foods
uses a CRM software to manage its customer relationships. This software helps
the company to track customer interactions, manage customer data, and provide
customer support.
 Warehouse management software: Engro Foods uses a warehouse
management software to manage its warehouses. This software helps the company
to track inventory levels, manage picking and packing, and optimize warehouse
space.
 Manufacturing execution system (MES) software: Engro Foods uses a
MES software to manage its manufacturing operations. This software helps the
company to track production data, manage quality control, and optimize
manufacturing processes.
 Business intelligence (BI) software: Engro Foods uses a BI software to
analyze data and make informed decisions. This software helps the company to
identify trends, spot anomalies, and make predictions.

Engro Foods also uses a variety of other technology and software, such as:

 Cloud computing: Engro Foods uses cloud computing to store data and run
applications. This helps the company to save money on IT infrastructure and to
improve scalability.
 Mobile apps: Engro Foods has developed mobile apps for its customers and
employees. These apps allow customers to order products and track orders, and
employees to access company information and collaborate on projects.

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 Internet of Things (IoT): Engro Foods is using IoT to connect its products
and machines to the internet. This allows the company to collect data and monitor
operations in real time.

Engro Foods is constantly investing in new technology and software. This helps
the company to improve its efficiency, productivity, and customer service.

Problem Analysis and Recommendation

here are some problem analysis and recommendations for Engro Foods:

Problem 1: Engro Foods' market share is declining.

Recommendation: Engro Foods can increase its market share by expanding its
product line, investing in marketing and advertising, and improving its customer
service.

Problem 2: Engro Foods' profit margins are shrinking.

Recommendation: Engro Foods can improve its profit margins by reducing costs,
increasing prices, or both.

Problem 3: Engro Foods' customer satisfaction is low.

Recommendation: Engro Foods can improve customer satisfaction by improving

its product quality, customer service, and social responsibility.

Problem 4: Engro Foods is facing increasing competition from foreign

companies.

Recommendation: Engro Foods can compete with foreign companies by

focusing on its strengths, such as its local knowledge and brand recognition.

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 Problem 5: Engro Foods is not prepared for future growth.

Recommendations

Engro Foods can prepare for future growth by investing in new technology,
expanding its production capacity, and developing new markets.

These are just some of the problems that Engro Foods is facing. By addressing
these problems, Engro Foods can improve its profitability, customer satisfaction,
and long-term growth prospects.

In addition to these specific problems, Engro Foods may also want to consider the
following general recommendations:

 Continuously innovate: Engro Foods should focus on continuous innovation to

stay ahead of the competition. This includes developing new products, improving
existing products, and finding new ways to market and sell products.
 Invest in people: Engro Foods should invest in its people by providing training
and development opportunities. This will help the company to attract and retain
top talent, and to create a culture of innovation and continuous improvement.
 Be socially responsible: Engro Foods should be socially responsible by operating
in an ethical and sustainable manner. This will help the company to build a
positive reputation and to attract customers and investors.

By following these recommendations, Engro Foods can position itself for long-
term success.

Conclusion:

Engro Foods has a well-established retail supply chain that ensures the timely and
efficient delivery of products to customers. The process begins with the
procurement of raw materials, which are then processed and manufactured into
finished products. The finished products are then distributed to Engro Foods' retail
outlets, where they are sold to customers.

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The retail supply chain process is complex and requires the coordination of many
different activities. However, Engro Foods has a strong team of professionals who
are dedicated to ensuring the smooth operation of the supply chain. As a result,
Engro Foods is able to provide its customers with a wide variety of high-quality
food products at competitive prices.

Engro Foods' retail supply chain is a critical part of the company's business. The
company is committed to ensuring that the supply chain is efficient and effective,
so that it can continue to provide its customers with high-quality food products at
competitive prices.

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