Supply Chain Management

Ma’am Wardah
Alishba Amjad
Mohsin Hassan Khan
Fatima Gohar
Anshara Sabir
Malik Tabish
Farzana Usman

BBA V-A
 Acknowledgments
We would like to take this opportunity to thank the Almighty and then our teacher of the course
of "SUPPLY CHAIN MANAGEMENT" at Karachi University Business School, for assigning
us this project with the encouragement to fulfill.

The purpose of this report writing was to explore Supply Chain Management concepts including
planning, Sourcing, Manufacturing, Delivering and return at one of the leading biscuit
manufacturers “English Biscuit Manufactures (Pvt) Limited” and to gain knowledge as how
company directors implied leadership to form such a renowned brand.

We would like to express our gratitude to Mr. Sohail Assistant manager QA, for giving us an
opportunity to meet with him in person. He guided us through the entire PSMDR cycle of his
company, which really aided us with our report. This report would not have been possible
without his assistance and guidance.

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TABLE OF CONTENTS
1. Company Introduction 3
 Company Goals
 Product line
 Major Suppliers
 Major Competitors

2. Supply Chain Management 4

 Planning 4
 Sourcing & Procurement 5
 Making & Manufacturing 6
 Delivery & Distribution 7
 Return & Reverse Logistics 8

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3.Conclusion

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INTRODUCTION
English Biscuits manufacturers Limited (EBM) opened in the mid of 1900s and works under the
name Peek-Freans Pakistan Limited. Now, more than 50 years later. EBM is also the first cookie
company in Pakistan, who has achieved ISO 9001 certification with “the legend lead” tagline.

EBM produces 155,000 tons of products annually, making it Pakistan's largest cookie
manufacturer in the sector. As stated by Nielsen survey, EBM has a market share of 45%.

COMPANY GOAL

The main aim is to improve the knowledge in the technology of baking. Make people aware of
the hygiene and nutritional value of food. Overcoming the lack of availability of equipment to
determine the quality of raw materials.

EBM PRODUCT LINE

EBM manufactures 80% biscuits while they also established Cakes which now has a 20%.ratio.

 PLAIN SWEET BISCUITS Gluco, Marie, Sooper

 CREAM BISCUITS: Lemon and chocolate sandwich, Rio
 CRACKERS: Butter Puff, Saltish
 NUTS: Party Peanut Pick Peanut Pista
 MAJOR SUPPLIERS

Habib sugar mills, Millac and Saima packaging.

 MAJOR COMPETITORS

The most important competitor of English biscuits is Continental Cookies (LU), which has a
remarkable market share in trading. LU has substantially five to six brands that prevail compared
to English cookies.

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EBM Supply Chain Management
PLANNING

Most companies do not have a specific department to deal with planning and take planning to be
a part of the overall business strategy. But in some cases like that of EBM, the company has a
separate department namely Sales and operation planning (S&O.P) department to deal with the
firm’s planning. Sales and operation planning refers to a process for better matching a
manufacturer's supply with demand by having the sales department collaborate with operations
to create a single production plan.

In EBM the (S&O.P) department does their demand planning of 3 months with the help of RSF
regional sales forecast which is a demand planning and forecasting tool that helps you track
trends that impact future demand for your products. To cover its planning function EBM uses the
SAP ERP I.T tool. Only a few industries in Pakistan are using this software. In EBM it was
introduced in the year 2014.

SAP ERP and BPC Implementation

SAP ERP is enterprise resource planning software developed by the company SAP SE. (SAP SE
is a German multinational software corporation based in Walldorf, Baden-Württemberg) ERP
software, or enterprise resource planning software, is a modular system that integrates the main
functions of a company's core business processes into a single system.

EBM also uses another software called SAP BPC. SAP BPC Business Planning and
Consolidation is an SAP module that allows you to plan, budget, forecast, and consolidate your
finances. It provides a unified solution with a single view of financial and operational data that
supports Performance Management processes such as adjusting plans and forecasts and speeding
up budget and closing cycles. Once EBM is done with its demand planning the predicted figure
or demand is forwarded to the supply planners, who further plans his supply operations.

The MPS (master production scheduling) software is used as a tool to plan supply operations in
EBM. The Master Production Schedule (MPS) is the main driver of the Material Requirements
Plan (MRP). The master production schedule (MPS) delineates what products a manufacturer
will produce, when and in what quantities.

The safety stock is added, the existing inventory is deducted and the bill of material is multiplied
from the existing figure calculated. (The bill of material is the standard quantity of how much
material is used to produce a product). This is how the final quantities to be produced are
calculated at EBM.

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SOURCING AND PROCUREMENT

After planning and collecting data from its supplier planner software (MPS), EBM sends the data
to its procurement department that analyzes it to send purchase requisitions and place purchase
orders with the most suitable and reliable suppliers. The procurement division prepares a
schedule of the total quantity of raw materials required for the production process. EBM chooses
multiple sourcing for its raw materials that allows it to reduce its over reliance on a single
supplier and thus the risk of incurring losses if any supplier fails to meet the criteria of the
contract due to a disruption in the supply chain.. When a material schedule is prepared, purchase
requisitions are sent to the selected supplier(s) electronically through software or emails before
the order is confirmed. Once the requisitions are approved, the purchase order including material
requirements, delivery time and date and payment method is sent to the supplier after which the
supplier starts preparing the goods to be delivered.

When EBM plans to introduce a new product to their existing product line, they begin their
source development process by identifying and evaluating the best sources to purchase the new
materials required for its production. However, EBM prefers to outsource from their existing
suppliers mostly in case of a new product development because of their strong relationship and
communication with them. After analyzing and choosing a supplier, the company requests
samples which are given to its quality assurance team for testing and assessment. The company
does not request the material directly; instead, it sends its internal stakeholders to the supplier’s
site to audit and inspect the safety, health and quality standards followed by them. Then, the
company scrutinizes the supplier’s financial standing and credibility in the market and checks
whether or not it has the capacity to fill large orders. EBM ensures that the supplier from whom
they are outsourcing is FBR-registered, efficiently manages customer relationships and has a
good market reputation. The company does not set a long-term deal with the supplier even if it
fits their product's standards and specifications and has passed its evaluation test. It orders the
consignment and puts it on a trial for a few months. If the supplier passes the trial, the
procurement department issues the purchase order.

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MAKE & MANUFACTURING

The process of manufacturing includes in making, baking and packaging in very effective way.
EBM manufactures its product in two factories situated in Karachi and Hattar. The step of this
process are as follows:

 Preparing dough

The manufacturing process initiate by measuring and scaling the ingredients, like flour, fats,
flavors, water mixed in the right proportion to make a dough which should be homogeneous. The
temperature of the dough should be 14-16°C, this prevents fats from melting and reduce
toughness of the dough. About 10-15 minutes dough is passed though the resting phase during
which process of fermentation occur.

 Giving shape to cookies:

Now the dough is folded and sheeted with predetermined thickness then rotatory cutting of
dough pieces occur.

 The baking process:

Now the molded cookies are baked in an oven having a tunnel like structure in a continuous
process. The oven trays carrying the rotatory dough pieces are inserted in the oven and
withdrawn after an interval. Cookies are bake in long tunnel ovens from several heated and
controlled areas. The short ovens have a single area, but the longer have two or more areas. The
most common composition is 3 to 4 zones. Due to the availability of multiple areas which
provide different temperatures, extraction and applications of heat. There are several heating
methods like conduction, convection and radiation, for the facilitation of baking process. The
oven designed in such a way that their temperatures maintain the moisture content in the molded
cookies. Baking time is about 15-20 min, time varies in different types of cookies. Consistency of
color with time and across the width of the oven band Some products, such as Marie require a
very even bland color, other such as cream crackers and some rotary moulded designs require
color contrasts and highlights. These features require different baking systems to enhance the
appearance of the product.

 Cooling and testing of biscuits

After coming from hot chambers, they pass from the chamber of cooling, conveyer. Also testing
and checking of quality occur.

 Packaging:

Once the cooling process is complete, the cookies are transported to a packaging machine where
the packaging process is completed before finally being released into the market.

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DELIVERY AND DISTRIBUTION

Delivery and Distribution concerns all over the logistics that are undergoing radical change as
the increasing globalization directly related to the increase in competition which only retains as if
the focus on logistics strategies, and integration are performed with excellency as it helps EBM
in their cost reduction at whole marginal cost, EBM knows that and put into consideration the
value chains between the clients, customers, consumers at most concerned fact the defined,
distribution involves the execution (delivery) of sales orders to a customer. All over Pakistan
EBM holds more than 350 distributors.

The delivery process faces huge amounts of pressure to deliver your items on time. Drivers
spend a considerable amount of time getting their containments ready before battling the chaotic
roads. This is in addition to printing labels that typically must be completed in acquired time as
per the location which might be more deflects when it come interchange cities, such time from
Karachi to Faisalabad or Islamabad and vice versa. The lead time for all EBM products is
different from other products. let's say e.g. if we need eggs we get them with a one-day notice so
we do not need large stock or have a high lead time to order. We order one day and the next day
tangible items are available to us. We keep 2-3 days of items in stock. If any of those products
require additional production time or suppliers have material delivery schedules then set the lead
times accordingly.

 Local Products: The average lead time for local product production is 21 to 25 days, it can
be extended to 30 days depending on its requirements.
 For Import Items: As per the imported goods are delivered the lead time altered and
estimated approximately about 2 to 4 months. For different backgrounds and different
products, the lead times will vary.

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RETURN AND REVERSE LOGISTICS

It is very important to understand why customer would return your product. Because this same
reason may lead to drawback your product in the market. Such factors are the reason:

 Product damage
 Low quality
 Unmet expectation by the customer

The products are delivered by different means of transport i.e (by road, by air). When a factory
deliver their goods by road to different area of city including the northern area where the roads
are not that suitable for goods loading vehicles also the forecast may change time to time , they
already are prepared for the return most of the time as the product got damage mostly because of
the rain or any other such circumstances the company/factory took all the product back to their
outlet and check the quality of that damage good, if the quality can be re-make through by this
material only they remake its packaging and sent back, otherwise it get recycled , the third and
last option for the factory which cause damage to their profit percentage is discard of that
product, but the process of discard is also necessary for the factory reputation as brand (EBM)
has maintained a good name in the market only through the quality product . But At EBM if
products are damaged or delivered at low quality, EBM makes sure that none of the goods are
disposed of by the retailer itself rather through reverse logistics the material is to be returned
back to EBM. This is done so that the brand image of EBM is not tarnished if the material gets
into wrong hands as the brand image can be misused.

CONCLUSION:

EBM is focused on being the best. Improvement and innovation at EBM are more than just
buzzwords, they are valued, talked of and worked upon corporations’ growth and change over
time. EBM, continue to strive towards achieving the 3Ps,people,planet and profit and look
forward to an exciting future of even greater growth and prosperity for all involved.

If we talk about the long-term plans of EBM, shareholders conduct an annual meeting to discuss
the strategic goals of EBM. For instance, EBM, in one of its annual meetings in 2012 decided to
make EBM a 15-billion-dollar company after 8 years, goals were made, plans were followed and
today if we look EBM is a 70-billion-dollar company that reigns the biscuit industry. And still
EBM has not set their proper export market nor the rural market of Pakistan, so it appears that
EBM still is open to unexpected growth if it sets a firm foot in these market.in the end it would
not be wrong to say that EBM’S strategic goal of making it a 100 billion industry by 2025 would
also be achieved if we keep in mind the company’s current progress and growth.