Supply Chain Management Term Report

(End-To-End Supply Chain)

Submitted By:

Zaifullah Shaikh 20221-31702

Instructor: Sir Aslam Soni

INSTITUTE OF BUSINESS MANAGEMENT (IoBM)

KARACHI

May 2024

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 Table of Contents

Company Profile.......................................................................................................................3
 Vision:........................................................................................................................................4
 Mission:......................................................................................................................................4
End-To-End Supply Chain.......................................................................................................4
Sourcing and Procurement...............................................................................................................5
 Farm Selection:...................................................................................................................................6
 Farmer Partnerships:.........................................................................................................................6
 Procurement Strategy:........................................................................................................................6
Transportation to Mills.....................................................................................................................6
 Logistics Coordination:......................................................................................................................6
Processing...........................................................................................................................................6
 Initial Cleaning:...................................................................................................................................6
 De-husking:..........................................................................................................................................6
 Paddy Separation:...............................................................................................................................7
 Polishing:..............................................................................................................................................7
 Grading:...............................................................................................................................................7
 Color Sorting:......................................................................................................................................7
 Quality Assurance:..............................................................................................................................7
Packaging...........................................................................................................................................7
 Custom Packaging Solutions:............................................................................................................7
 Advanced Packaging Technology:.....................................................................................................8
 Labeling and Branding:......................................................................................................................8
Storage and Inventory Management...............................................................................................8
 Climate-Controlled Warehousing:.....................................................................................................8
 Inventory Control:..............................................................................................................................8
Distribution and Export....................................................................................................................8
 -Global Logistics Network:................................................................................................................8
 Export Documentation:......................................................................................................................9
 Local Agents and Distributors:..........................................................................................................9
Retail and End-Consumer Delivery.................................................................................................9
 Retail Partnerships:............................................................................................................................9
 Customer Service:...............................................................................................................................9
Feedback and Continuous Improvement........................................................................................9
 Consumer Feedback:..........................................................................................................................9
 Innovation and R&D:.......................................................................................................................10
ERP at Al Asad Rice Mills.....................................................................................................10
Problems Faced by Al Asad Rice Mills..................................................................................10

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 Company Profile

Al Asad Rice Mills was established in 1994 by Mr. Mohammad

Hussain Khandwala with an aim of exporting processed Rice all over
the world. He has been engaged in this business since 1988 when for
the first time, Rice was allowed to be exported by the private sector.
Since, then he has gathered prolific experience and combined modern
methods for continuous value-addition. The 2nd Generation has added
to the experience with all modern techniques of Management.

Al Asad Rice Mills has been exporting rice to over 35 countries all
over the World with more than 100 quality conscious customers who
understand rice very well and appreciate our qualities. We also have
our agents in these countries who book orders for us and this remains
the core competency of the firm.

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  Vision:

“Al-Asad Rice Mills vision is to provide quality products, fairness in

dealing and efficient services with promise and an assurance of
personal service and to promote creative and innovative management
to cope up with the changing environment.”

 Mission:

“Al-Asad Rice Mills ensure quality products and service excellence

for total customer satisfaction and endeavor to develop the state of art
technology and resources to meet the demands of competitive global
markets.”

End-To-End Supply Chain

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Sourcing and Procurement

 Farm Selection:

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 Al Asad Rice Mills sources its rice primarily from the fertile regions of Pakistan,
known for producing high-quality rice, especially Basmati varieties. The primary
regions include Punjab and Sindh provinces.

 Farmer Partnerships:

The company collaborates closely with local farmers, providing them with necessary
support and ensuring sustainable farming practices. This partnership helps in securing
a steady supply of high-quality paddy rice.

 Procurement Strategy:

The procurement process is designed to ensure that only the best quality paddy is
selected. This involves rigorous inspection and quality checks at the farm level before
purchase.
Transportation to Mills

 Logistics Coordination:

Once procured, the paddy rice is transported to the processing mills. This involves
coordination with local logistics providers to ensure timely and safe transport,
minimizing any damage or quality degradation during transit.

Processing

 Initial Cleaning:

At the mill, the paddy undergoes an initial cleaning process to remove dust, stones,
and other impurities using pre-cleaners and de-stoners.

 De-husking:

The cleaned paddy is then de-husked to remove the outer husk, producing brown rice.
This is done using rubber roll shellers.

 Paddy Separation:

Post de-husking, the mixture of brown rice and husk is separated using paddy
separators.

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  Polishing:

The brown rice is polished to remove the bran layer, producing white rice. This step
involves a series of polishing machines that gently abrade the surface of the rice
grains.

 Grading:

The polished rice is graded based on size and quality using grading machines. This
ensures uniformity and removes broken grains and other imperfections.

 Color Sorting:

Advanced color sorting machines (like Buhler color sorters) are used to detect and
remove discolored or defective grains. This step is crucial for maintaining the high
visual quality of the rice.

 Quality Assurance:

Throughout the processing stages, stringent quality checks are conducted to ensure
compliance with international standards. Al Asad Rice Mills holds certifications like
ISO 22000:2005 and HACCP, which testify to their commitment to quality and food
safety.

Packaging

 Custom Packaging Solutions:

The rice is packed in various types of packaging, ranging from small consumer packs
to large bulk bags, based on customer requirements. They offer branded packaging for
their own products and also provide custom packaging for private labels.

 Advanced Packaging Technology:

The packaging process employs advanced machinery to ensure airtight sealing and
optimal preservation of rice quality during storage and transit.

 Labeling and Branding:

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Packaging includes detailed labeling, including nutritional information, cooking
instructions, and branding elements. For export markets, labels are often customized
to meet local regulations and language requirements.

Storage and Inventory Management

 Climate-Controlled Warehousing:

The packed rice is stored in climate-controlled warehouses to maintain its freshness

and prevent any quality degradation. These warehouses are equipped with modern
facilities to manage inventory efficiently.
 Inventory Control:

Advanced inventory management systems are used to track stock levels, manage
orders, and ensure timely dispatch of products. This helps in maintaining a seamless
supply chain flow.

Distribution and Export

 -Global Logistics Network:

Al Asad Rice Mills has developed a robust logistics network to facilitate the export of
rice to over 35 countries. This involves collaboration with shipping lines, freight
forwarders, and customs brokers to ensure smooth and timely delivery.

 Export Documentation:

The company handles all necessary export documentation, including certificates of

origin, phytosanitary certificates, and other compliance documents required by
importing countries.

 Local Agents and Distributors:

In many countries, Al Asad Rice Mills works with local agents and distributors who
manage the distribution of their products, ensuring that the rice reaches retail outlets
and consumers efficiently.

Retail and End-Consumer Delivery

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  Retail Partnerships:

The rice is distributed through various retail channels, including supermarkets,

wholesalers, and online platforms. The company has established strong relationships
with major retailers in different markets.

 Customer Service:

Al Asad Rice Mills provides excellent customer service, addressing any issues or
feedback from consumers. They also engage in marketing and promotional activities
to enhance brand visibility and consumer loyalty.

Feedback and Continuous Improvement

 Consumer Feedback:

The company values feedback from consumers and incorporates it into their product
development and quality improvement processes.

 Innovation and R&D:

Continuous investment in research and development helps Al Asad Rice Mills stay
ahead in the market, introducing new products and improving existing ones based on
market trends and consumer preferences.

ERP at Al Asad Rice Mills

The ERP system at Al Asad Rice Mills likely includes several key modules
such as inventory management, production planning, sales and distribution,
procurement, quality control, and financial management. These modules help
the company manage its extensive operations, including the processing,
packaging, and exporting of rice to over 35 countries, Al Asad Rice Mills –
Processors, Importers, Exporters & Commission Agents.

Inventory management within the ERP system ensures optimal stock levels,
tracks the movement of raw materials and finished goods, and reduces waste.
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Production planning helps optimize resource allocation and improve production
efficiency, while quality control ensures that the rice meets stringent quality
standards before export.

Financial modules within the ERP system provide comprehensive financial

reports, streamline accounting processes, and improve financial oversight. This
integrated approach allows Al Asad Rice Mills to maintain high standards of
operational efficiency and product quality, meeting the demands of a
competitive global market.

Problems Faced by Al Asad Rice Mills

Al Asad Rice Mills faces several challenges typical of the rice milling industry.
These include fluctuating paddy prices, which can affect profit margins and
make financial planning difficult. Additionally, the company must manage
quality control to meet international standards, which can be resource-intensive.

Environmental concerns also pose significant issues, such as managing dust,

noise, and waste generated during milling operations. Labor-related challenges
include ensuring safe and healthy working conditions for employees, which is
critical in maintaining productivity and compliance with regulations, Rice Mill
Business Overcoming Challenges and Maximizing Profits.

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