FINAL PROJECT:

Supply chain ManageMent

Project Topic

Supply chain of faM bakery

Submitted By:
Aiman Rani (2025106002)
Falak Naz (2025106016)
Fleeha Batool (2025106019)
Maryam Ishfaq (2025106032)
Arooj Ali (2025106009)
Semester:
BBA-VII

Submitted to:
Mam. Asvir
 DEDICATION
We dedicate this report to Allah Almighty our creator, our source of inspiration, sagacity, and
command. We also want to dedicate it to our beloved parents. Without their patience,
understanding, support, and most of all their love and prayers, the completion of this work would
not have been possible.
We would also like to dedicate this report to all our respectable teachers for not only being our
teachers but our mentors as well and teaching us everything that we required to complete our
project.
We acknowledge all those people who helped us directly or indirectly with the completion of our
project. Especially, we are sincerely thankful to our supervisor Mam Rabia Asif for her complete
guidance and directions and most importantly, for bearing with the constant stream of queries
while providing timely feedback and encouragement when needed, without which it would have
been quite impossible to complete this piece of work.
 EXECUTIVE SUMMARY

Bakery industry is an industry which is forever growing industry. From birth of child till his
birthday, from Mother's Day to brother sister father or friend’s day, from engagement anniversary
to wedding anniversary, at every joyful moment, people try to bring happiness on the faces of their
loved ones by bringing cakes and bakery items. With the evolving time, this industry has also
involved very much but its profitability did not become less with its increasing number of
businesses. Revenue in the Bread & Bakery Products market amounts to RS.21.25bn in 2023. The
market is expected to grow annually by 7.31% (CAGR 2023-2027).
We FAM BAKERY also stepped in this field, which is a bakery but our basis of differentiation is
our mobility. We provide services to people as a mobile bakery. We want to give them comfort and
easiness so that, they can get their favorite items at their houses. So that, they can make their every
moment memorable without get worry about time, distance etc.
Our target market is mainly middle-class people who cannot afford luxurious and expensive bakery
items. We are marketing our products through the internet and social media platforms. Marketing
through the internet will enable the products to reach a greater percentage of the population as the
recent era is fast, technical and every person has access to it. In this way, we can effectively
promote our products. Apart from this, pamphleteering will be our next step to involve and target
the close on hand or population in our localities.
Our main target is to make everyone’s special day more special with our sweetness. So that, they
can say their friends and families, BAKE YOUR DAY with FAM bakes.
 SUPPLY CHAIN OF FAM BAKERY

Supply chain of our bakery

includes procurement of raw material, convert
them into finished goods then send these goods
to direct customers. We do not have any
wholesalers and retailers. We deal our
customers' directly.

What we offer to our customers?

We deal with cakes, cupcakes, biscuits and
bread.

Target customers:
Our target market is mainly middle-class people who cannot afford luxurious and expensive bakery
items. We are marketing our products through the internet and social media platforms. Marketing
through the internet will enable the products to reach a greater percentage of the population as the
recent era is fast, technical and every person has access to it. In this way, we can effectively
promote our products. Apart from this, pamphleteering will be our next step to involve and target
the close on hand or population in our localities.
People who are diet conscious & worry about your health, sugar patients, blood pressure problem,
high cholesterol, liver patients & many other patients. Moringa is very useful for all people.

Our main target is to make everyone’s special day more special with our sweetness. So that, they
can say their friends and families, BAKE YOUR DAY with FAM bakes.

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 Supply chain cycle & puSh/pull VieW

Customer order
&
Manufacturing PULL PROCESS

Cycle
Manufacturing,
customer order
Manufacturer&
customer

Customer Order
Arrives Procurement

Supplier
Procurement PUSH PROCESS
Cycle

Our supply chain works in two main processes, push and pull process. In push process,
we procure our raw material from our supplier in anticipation of customer order. And our manufacturing is
done in reaction of customers order, which is our pull process.
Supply chain of cake
From acquiring raw material to convert them into finished goods and send them to customers, we
have following parties:

Supplier:
Supply chain of cake

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Product Line:
• Vanilla
• Chocolate
• Strawberry
• Red velvet
• Carrot cake
• Lemon
• Chocolate chip
• Peanut butter
From suppliers, we get our raw materials whether those are products or equipment; Following
raw material will be used in the manufacturing of cake:
▪ Flour, Sugar, Salt, Butter, Eggs, Liquid (Such as water, milk, and juice, is needed to hydrate
and bind the flour, to develop the gluten, and to dissolve than yeast) Yeast, Extracts & other
baking material
▪ Baking Tools (measuring cups, whisk, baking trays, baking pans & tins, mixing bowls, etc.)
▪ Baking Equipment (baking oven, blender machine) And we get this raw material from these
places:
▪ Waqar baking food in Main market Gulberg
▪ Bake House in Canal park block Gulberg

▪ Bake Inn Bakers in Johar town Location:

▪ A rental warehouse where raw material is stored.

(Township)
▪ A rental room for manufacturing. (Township)

Transport
We will use Suzuki Pickup to bring the raw material to the location & deliver products directly
from office to customer with Suzuki.
Manufacturing:

We are doing baking ourselves with the help of Zoha Mirza is a baking expert.

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Following is the flow chart of manufacturing of cake
Distribution:

▪ Online selling through Google website & Instagram

▪ Delivery through food panda

Marketing:
▪ Social Media Accounts
▪ Google Ads
▪ Partner with complementary brands.

Supply chain of biScuitS

PRODUCT LINE
• Gluco
• Plain sweet biscuits
• Cream biscuit
• Lemon and Chocolate Sandwich
• Crackers
• Butter puff
• Nuts
• Party
• Peanut Pick
• Peanut Pista

Product Range:
FAM Bakery chocolate chips is available in three different sizes

• 24 gm pack (Ticky pack)

• 54 gm pack (half role)
• 90 gm pack (family pack)

According to us, Supply Chain Management became a Backbone of a company now days the
companies do not compete with other companies but one supply chain competes with other supply

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chain. So, the companies involved in a specific supply chain are managed as a single entity, not
the separated ones.

SUPPLY CHAIN SIX DRIVERS

1. Facilities
2. Inventory (Stock)
3. Distribution
4. Location
5. Transportation
6. Information

All these six drivers are measured on the basis of efficiency and responsiveness.

Production Facility: The raw material ingredients used for the production of chocolate chips are as
follows;

Wheat flour, starch, sugar, hydrogenated vegetable fat, chocolate chips, coca powder, skimmed
milk powder, baking soda, ammonium bicarbonate, lecithin, salt, nature food color. These
ingredients are procured from different suppliers of both local and international repute. FAM
BAKERY follows a FIFO method of production scheduling; namely, the first materials that are
supplied are the first to be used in the production processes. FAM BAKERY does not like too
Overstock finished goods, thus they aim to optimize the production process so as to minimize the
stocking of finished goods. Production is carried out on a daily basis, and the levels of production
are determined from past sales information that the sales and marketing department supplies to the
production floor managers.
Raw Material Delivery:

The delivery period for raw materials falls between two and five days. During the on season, raw
materials are delivered through local supply channels and thus take less time to be delivered. Raw
materials are converted daily during the production process; thus the work-in process inventory
does not extend to more than one day. Before the production processes take place, all raw materials
are assured by FAM BAKERY quality assurance department.
Raw Material Receipt and Storage

▪ Raw material for biscuits such as wheat flour, sugar crystal, full cream, baking soda, butter,
edible vegetable oil, skim milk powder, salt, flavor, additives, etc. and packing material
such as wrappers, boxes, etc. are received from various suppliers
▪ These raw materials are then weighed, inspected and tested for their quality during
inwarding process and the relevant documents are checked
▪ After everything is OK, the materials are then stored in incoming stores
▪ The Flour and sugar are usually stored in silos or large containers with proper insulation
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 ▪ The liquid products are stored in stainless steel containers with proper insulation and
temperature regulation
▪ The remaining products too are stored in shelves in store room with proper insulation
temperature regulation
▪ The inventory system used is FIFO (First in First out) or FEFO (First expiry First out) The
material in bags and packets are handled using hand carts Distribution:
▪ Online selling through Google website & Instagram
▪ Delivery through food panda Inventory:

FAM BAKERY has implied a specific inventory management technique in the stocking of its raw
materials or finished goods. A specified level of inventory is maintained, which may vary in
numbers depending on availability and seasonal factors. A synchronized inventory management
system is at work which stays in contact with suppliers of wheat flour, poultry items and other
major ingredients. A continuous inventory level updation takes place on daily bases thus notifying
the production team of FAM BAKERY as well as suppliers about respective inventory stock levels.
This system helps us in keeping a low level of raw material stock and thus makes it possible for
delivery of raw material just in time. We follow a policy of maintaining one day of finished goods
stock in their inventory. This along with their raw materials inventory are the only inventories that
contribute to the total inventory pool, as the work-in-process inventory is converted on a daily.

Locations:
FAM BAKERY has independent distributors in every region of Pakistan. Beside the primary
warehouse in township Lahore, andthus supplies the product to its primary distributors/stockiest is
in Lahore because we recently start our business. Market segmentation is carried out in-house and
then relayed on to distributors by the sales managers with specific instructions on distribution and
handling aspects.
Transportation:
Logistic concerns are out sourced mostly, the delivery of raw material from our suppliers to
production facility is the responsibility of the suppliers, while the finished goods inventory which
leaves the factory after production. We will use Suzuki pickup to bring the raw material to the
location. We also deliver our product and market our product through online and send them through
TCS or any other channel.

Information:
The effective procurement and utilization of information is outsourced by FAM BAKERY to
research firms. There is one sales representative who irresponsible for gathering information on
past performance, and the perceptions of wholesales distributors. He does this by conducting
surveys and studying historical data. This information along with the data provided by research
firms, allows us to take informed strategic business decisions. All the daily reports of inputs and
outputs are fed into an inventory management software that manages the efficiency and

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effectiveness of FAM BAKERY inventory and stock keeping processes. Meetings are conducted
regularly to utilize information in an effective fashion, and discussions on the raw material price
hikes and foreign exchange rates, which the company is curently facing allow the management to
better gauge their performance and improve.
Combination of Responsiveness and Efficiency

The right combination of responsiveness and efficiency in each of these Cross Functional and
logistical drivers allow FAM BAKERY supply chain to increase throughput while simultaneously
reducing inventory and operating expenses. Essentially a trade-off, FAM BAKERY can gauge their
position on the supply chain as relative to these five drivers, and manage them to the optimum
level. We maintain that it seeks to align its supply chain so as to find the best payoff between
responsiveness and efficiency.

SUPPLY CHAIN OPERATIONS

There are four categories of supply chain operations; planning, sourcing, making and delivering.
These four categories organize the supply chain operations; Planning:
It refers to all the operations that are necessary in order to actively facilitate the sourcing, making
and delivering of a company’s product. Planning is essentially the backbone of the entire process,
without accurate planning, the entire supply chain network will suffer. It provides a base from
which all other decisions can be made. By covering the several operations that fall under this
category, such as demand forecasting, product pricing and inventory management, companies can
take informed decisions in regards to successfully managing their supply chains.

Sourcing:
It essentially refers to the processes and activities required by a company to facilitate the
acquisition of materials and other inputs in order to further its business. This includes all
procurements from suppliers and other channel members.

Making:
It basically covers all the operations needed to successfully create a product out fall the given
inputs. The three subsets of this category are; product design, production scheduling, and facility
management.

Delivering:
It sees that all operations involved with the effective allocation of the finished product to distributor
channel members take place without hitch. Order management, and delivery scheduling are crucial
factors involved in delivering operations, and allow the company to optimize its delivery channels
so as to maximize profits.
Fam Bakery does not face very irregular demand for its products. In spite of this, we do witness
general changes in demand trends over long periods oftime.and do demad forecasting.

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Competitors:
Direct
Candy chocolate chips by LU and Innovative chocolate chips by Cadbury are direct competitors
of chocolate chips.
Indirect

• LU Chip Munch
• LU Prince Chocolate
• EBM Rio
• EBM Chocolate Sandwich
• Kolson Bravo
• Bakery chocolate biscuits

FAM SUPPLY CHAINS STRATEGIES

▪ Monitoring local and international pricing, comparing them ▪ Findings synergies and
switching towards it.
▪ Long term buying
▪ Long term bookings when suppliers don’t need money and we trust them enough we
book orders.

Marketing & Sales Department:

Marketing is a business discipline focused on the practical application of marketing techniques

and the management of a firm's marketing resources and activities. Marketing managers are often
FAM responsible for influencing the level, timing, and composition of Customer demand in a
manner that will achieve the company's objectives. FAM is very much concerned about its
marketing as it is the backbone of its sales. A good marketing strategy has always been adopted by
us which keeps on changing with the passage of time. One of the biggest tools of marketing is
advertising. We do advertising through different media channels which include TV commercials,
Radio, Magazines etc. Furthermore, Sales activity is also performing by the same department. This
department sets the targets of sales for the current year and for the upcoming years. Once the target
is set, a strategy is developed for achieving this target. They collect orders from the distributors
and supply to them the same. Our overall strategy is to maximize the sales by observing the market
trend and consumer demand.

Sales Forecast:
In any industrial unit starts from sales forecast. In FAM, sales forecast for the coming month is
provided before the end of current month and sometimes forecast of two additional months is
provided in advances. Now the forecast is for the months of October, November and December.
The benefit from it is that we get an idea about the trend coming.

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Production Planning:
On the basis of sales forecast production department will start production planning. Production
capacity will either be above from sales forecast or below the forecast it’s never in line with
production capacity. If it is above the production capacity than material flow from opening stocks.
If it is below production capacity than production department will have to take decision either to
produce less or to produce maximum in order to build further stocks. The trend that EBM follow
is to build further stocks. Let say for example in the month of Ramadan if we have 100%
production capacity and the demand is for 35% we opt for producing 100%. By producing 100%
we took 15% of that 100% to our opening stocks for the next month.

Lead Time:
The lead time of every product of FAM is different from other products. let say e.g. if we need
eggs we get them on one day notice so we don’t need a huge stock or to have maximum ordering
lead time. We order one day and on the very next day material is available to us. We hold 2-3 days
of material in stocks. When there are those products which need either more production time or
the suppliers have schedules to provide material then we set lead times accordingly.

Supply chain of cupcakeS and donutS

FAM bakers introduce a cupcake.
 Flavors:
Cupcakes come in a seemingly endless variety of flavors. Some of the most popular flavors
include:
• Vanilla
• Chocolate
• Strawberry
• Red velvet
• Carrot cake
• Lemon

• Chocolate chip
• Peanut butter
• Funfetti  Ingredients:
The basic ingredients for cupcakes are flour, sugar, eggs, butter, milk, and baking powder.
However, there are endless variations on this basic recipe. Some common additional ingredients
include chocolate chips, vanilla extract, fruit purees, and spices like cinnamon or nutmeg.
 Frosting:

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Frosting is one of the most important parts of a cupcake. It adds sweetness, moisture, and flavor.
Some of the most common types of frosting include:
• Buttercream
• Cream cheese frosting
• Whipped cream
• Ganache
• Fondant
 Decorating:
Cupcakes can be decorated in a variety of ways to make them even more special. Some common
decorations include:
• Sprinkles
• Candies
• Fruit
• Nuts
• Chocolate chips
• Fondant shapes
• Piping frosting designs

Product line of Donut:

• Classic Glazed Donut
• Chocolate Frosted Donut
• Sprinkle Explosion Donut
• Jelly-Filled Donut
• Maple Bacon Donut
• Cinnamon Sugar Twist
• Cream-Filled Delight
• Fruit-Filled Ring
• Coffee-Infused Donut

SUPPLY CHAIN OPERATIONS

▪ Ingredient Sourcing:
The supply chain begins with the procurement of raw materials. Our business sources ingredients
like flour, sugar, eggs, milk, and flavorings. These come from multiple suppliers, and stringent
quality control ensures adherence to the brand’s standards. The sustainability and ethical sourcing

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of ingredients may also be considered. Raw material for donuts such as wheat flour, sugar crystal,
full cream, baking soda, butter, edible vegetable oil, skim milk powder, salt, flavor, additives, etc.
and packing material such as wrappers ,boxes, etc. are received from various suppliers
These raw materials are then weighed, inspected and tested for their quality during in-warding
process and the relevant documents are checked
After everything is OK, the materials are then stored in incoming stores
The Flour and sugar are usually stored in silos or large containers with proper insulation
The liquid products are stored in stainless steel containers with proper insulation and
temperature regulation

▪ Manufacturing and Production:

Once the ingredients are secured, they are transported to the donut manufacturing facility. The
production process involves mixing the ingredients, shaping the dough, and baking. The machinery
and equipment used in this phase play a crucial role in maintaining consistency and quality across
batches.

▪ Packaging:
Packaging materials, including boxes and wrappers, are sourced to ensure that the final product
reaches consumers in optimal condition. Packaging design may be a part of the branding strategy,
with an emphasis on attracting customers while maintaining freshness and preventing damage
during transportation.

▪ Distribution:
Distribution is a pivotal stage in FAM mobile bakery supply chain. Packaged donuts move from
the production facility to distribution center. Coordination with logistics companies is essential to
ensure timely and efficient delivery to retailers. Donut businesses opt for a centralized distribution
model or work with regional distributors to reach a broader market.

▪ Retailers and Stores:

Donuts reach various retailers, including grocery stores, convenience stores, and specialty shops.
Establishing strong relationships with retailers is critical for consistent placement on shelves. The
brand might have contracts with specific retailers or collaborate with distributors to expand its
market presence. Point-of-sale materials and marketing collateral could support product visibility
in stores.

▪ Storage and Display:

Upon reaching retailers, donuts are stored in appropriate facilities to maintain freshness. Inventory
management is crucial to minimize waste and ensure that consumers receive products within their
optimal shelf life. Proper display strategies are implemented to attract customers, and retailers play
a role in maintaining the overall quality of the product.

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▪ Consumer Purchase:
Consumers purchase donuts from various retail outlets, both in-store and increasingly online. The
ease of accessibility and convenience can influence consumer behavior. Donut businesses may
implement promotions, discounts, or loyalty programs to encourage repeat purchases.

▪ Feedback and Quality Assurance:

Feedback from consumers is valuable for continuous improvement in products of FAM mobile
bakery. Donut businesses actively collect and analyze customer input to assess product satisfaction,
identify areas for enhancement, and refine their offerings. Quality assurance processes are
maintained throughout the supply chain, encompassing both ingredient sourcing and
manufacturing, to uphold the brand’s standards. ▪ Technology Integration:
In our contemporary supply chain, technology plays a pivotal role. Our business leverage advanced
software for inventory management, demand forecasting, and supply chain visibility. Automation
on production processes enhances efficiency, and data analytics aids in decision-making for
optimizing the supply chain.

▪ Regulatory Compliance:

Adhering to food safety and quality regulations is non-negotiable in the donut supply chain of our
business. Businesses must navigate a complex landscape of regulations to ensure that our products
meet the necessary standards. This involves regular audits, documentation, and compliance with
health and safety guidelines.

▪ Environmental Considerations:

Sustainability is increasingly a concern in supply chain management. Donut businesses are

exploring eco-friendly packaging options, reducing waste in production, and evaluating the
environmental impact of transportation. Initiatives for carbon footprint reduction and responsible
sourcing contribute to a positive brand image.
▪ Globalization and Supply Chain Risks:
Global supply chains bring opportunities but also introduce risks. Donut businesses need to
navigate factors such as geopolitical events, natural disasters, and economic fluctuations that can
impact the availability and cost of ingredients. Diversifying suppliers and implementing risk
management strategies are essential.

MARKETING AND SALES DEPARTMENT

The donuts supply chain, the marketing and sales departments play crucial roles in promoting
products, building brand awareness, and driving revenue. Here’s an overview of their
functions:

 Marketing Department:
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▪ Brand Development:
Develop and maintain the brand identity, ensuring it aligns with the company’s values and
resonates with the target market
▪ Market Research:
Conduct market research to understand consumer preferences, trends, and competitor strategies.
Use insights to shape product development and marketing campaigns.

▪ Product Positioning:
Determine the unique selling propositions of the donuts and create a compelling positioning
strategy in the market.
▪ Advertising and Promotion:
Plan and execute advertising campaigns across various channels, including digital media, print,
and social media platforms, to reach a wider audience.
▪ Social Media Management:
Manage social media accounts to engage with customers, share product updates, and create a
community around the brand.
▪ Content Creation:
Develop content such as blog posts, videos, and visuals that showcase the donuts, their quality, and
the brand story.
▪ Packaging and Presentation:
Collaborate with the design team to create appealing packaging that not only preserves freshness
but also enhances the product’s visual appeal on store shelves.
▪ Customer Loyalty Programs:
Implement loyalty programs to encourage repeat purchases and reward customer loyalty.

 Sales Department:

▪ Distribution Strategy:
Collaborate with the distribution team to ensure donuts are efficiently and effectively delivered to
retailers, considering factors like shelf life and demand forecasting.
▪ Retailer Relationships:
Establish and maintain strong relationships with retailers, negotiate contracts, and ensure optimal
product placement in stores.
▪ Sales Forecasting:
Utilize data and market trends to create accurate sales forecasts. This helps in production planning
and managing inventory levels.
▪ Sales Training:
Train sales representatives on product knowledge, selling techniques, and customer service to
ensure they effectively communicate the value of the donuts.
▪ Trade Promotions:

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Implement trade promotions, discounts, and incentives to encourage retailers to promote and sell
more donuts.
▪ Sales Reporting and Analysis:
Regularly analyze sales data to identify patterns, assess the success of marketing campaigns, and
adjust strategies accordingly.

 Competitors:
The Lahore bakery scene is bustling with delicious offerings, and competition is fierce! Here's a
glimpse into some notable competitors of a bakery in Lahore:

Traditional Bakeries:

• Butt Sweets & Bakery: A historic Lahore institution, Butt Sweets is renowned for its melt-
in-your-mouth doodh patti and rich, dense cakes.
• Hazoor Bakery: Another old-timer, Hazoor Bakery is famous for its flaky pastries and
traditional sweets like gulab jamuns and jalebis.
• Oh Fudge! This trendy bakery whips up gourmet cupcakes, cookies, and cakes with unique
flavors and artistic flair. Their focus on modern aesthetics and innovative taste combinations
makes them a strong contender.
• Dunkin Donuts: This global giant brings its iconic donuts and coffee blends to Lahore.
Their brand recognition and standardized offerings are undeniable strengths.
• English Biscuit Manufacturers (EBM): This established brand produces popular
biscuit varieties like Glucose and Marie. Their long-standing presence and brand loyalty are
significant advantages.
• The Cakery by Anushah: This home-based bakery is gaining popularity for its beautiful
and delicious cakes, cupcakes, and macarons. Their focus on quality ingredients and artistic
designs makes them a promising contender.

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