TAJ RE-ROLLING & STEEL

MILLS
Supply Chain Implementation and Operations Final Project

SUBMITTED BY:
Muhammad Ali Shah (01-111211-112)
Shehreyar Nadeem (01-111211-106)
Hizbullah (01-111211-039)
Adeena Naeem (01-111211-232)
Ayesha Tasawar (01-111211-021)
Muhammad Adam Banoori (01-111202-087)
Contents
INTRODUCTION OF TAJ RE-ROLLING AND STEEL MILLS ........................................................... 2
VISION:......................................................................................................................... 3
MISSION: ............................................................................................................................ 3
PRODUCT AND QUALITY ASSURANCE: ............................................................................... 3
MARKET SHARE: ............................................................................................................. 4
Our Customers and Dealers .................................................................................................. 5
Quality Assurance: ........................................................................................................... 6
Investment in Technology and Innovation: .......................................................................... 7
Training and Development: .................................................................................................. 7
Long-term Relationship Building:....................................................................................... 7
SWOT Analysis ............................................................................................................... 7
Problems ..................................................................................................................... 10
Delay in Shipment: ............................................................................................................ 11
Increased Freight Costs: .................................................................................................. 11
PESTLE Analysis ............................................................................................................. 12
Solutions ..................................................................................................................... 13
Sourcing Locally:................................................................................................................ 13
Integrating Technology: .................................................................................................. 14
Solutions Impact on Company's Operations / Recommendations ........................................... 16
Conclusion: .................................................................................................................. 20
Reference: .................................................................................................................. 20
 INTRODUCTION OF TAJ RE-ROLLING AND STEEL MILLS
Taj Re-Rolling and Steel Mill is a prominent name in the steel industry, known for its production
of high-quality steel products through the process of re-rolling. After achieving success in
plywood oil and ghee and PP woven bags, Taj Enterprises launched another subsidiary named
Taj Re-rolling and Steel Mills in Dargai Malakand. The company was launched in 2017 with two
10-ton furnaces, each a continuous casting plant and a re-rolling mill. The production capacity
of MS bars is up to 200 M tons per day. An ISO 9001-2015 certified company that produces
quality steel of grade 40/60 as per ASTM standards.
VISION:
By concentrating on our consumer's needs, we conceive ourselves as value builders,
determined to build and innovate to touch lives beyond expectations for the industry.

MISSION:
To be a model steel manufacturing organization by keeping three pillars of business in mind
which are commitment, involvement, and dedication coupled with honesty.

PRODUCT AND QUALITY ASSURANCE:

To achieve quality products Taj Steel has installed a CC plant, which would result in producing
the standard MS bars at grade 40 and grade 60 as per ASTM A-615. The company, having many
factories, has ample place for storage of steel for delivering the products to its clients without
any delay. To maintain quality, a Spectra and Analytical Lab along with a physical testing
laboratory has been established, which is equipped with modern testing types of equipment.
The machinery is being calibrated by well-reputed engineers fortnightly. The company has
formed a sales department to ensure the timely delivery of its product, maintain close liaison
with its clients, and clarify types of queries occurring during the process.

RAW MATERIAL:
The raw material is being considered of prime concern in Taj Steel. Mostly it is imported from
South Africa, Oman, Bahrain, the UK, DUBAI, and shipbreaking at Gadani, Karachi. The
material is sorted out at the site and then it is forwarded to the furnace section. The furnace
has a capacity of 10 metric tons each.

MARKET PERFORMANCE:
The steel industry in Pakistan has seen both challenges and opportunities in recent years.
Despite facing headwinds such as fluctuating raw material prices, energy shortages, and
economic uncertainties, several steel mills have managed to maintain steady growth through
strategic investments and operational efficiencies.
Taj re-rolling and steel mill has an installed capacity of 160,000 tons annually to produce
deformed and reinforced bars in conformance with ASTM A 615 G- 40 and G-60. In recent
years, Taj Steel Mill has undergone significant restructuring efforts aimed at reviving its
operations and enhancing its competitiveness in the market. These efforts have included
modernization initiatives, capacity expansions, and cost-saving measures.
Additionally, the growing infrastructure projects, particularly in the KPK side, have provided a
significant boost to the demand for steel products. This increased demand has positively
impacted the market performance of Taj Steel Mill, including improved sales volumes and
profitability.
However, challenges such as regulatory hurdles, infrastructure constraints, and global
economic uncertainties continue to pose risks to the industry's growth trajectory.
Nonetheless, with strategic planning and continued investments in technology and
innovation, steel mills in Pakistan are well-positioned to capitalize on the opportunities and
navigate the challenges in the market.

MARKET SHARE
Market Overview:
Steel is one of the most vital industries that play significant roles in industries such as
construction, automobiles, and infrastructure among others. Some mills have a higher
production capability and relatively longer market coverage as compared to other mills in
this industry, especially Taj RE-Rolling and Steel Mill.

Current Market Share:

Taj RE-Rolling and Steel Mills have the advantage of the continuous nature of the operation
and it has survived in the contest where many new players have entered and now it has 2%
of the total market share. This percentage proves its secure position among customers and
its ability to achieve its goals, which oriented it on the customers’ needs and preferences
irrespective of the tendencies transforming the provision of financial services. Pest analysis
Taj Steel Mill mostly operates in KPK and some other areas meaning there could be more
chances for expanding a market share.

Competitive Landscape:
Many players are in the industry, ranging from large steel mills with extensive resources and
well-defined strategies to regional groups aspiring to become key international players.
However, through the sheer quality of its product, reliability, and customer-centric approach,
Taj RE-Rolling and Steel Mill has reached an enviable position in the market.

Factors Influencing Market Share:

Several factors affect the market share of Taj Steel Mill, including: Several factors affect the
market share of Taj Steel Mill, including:

Product Quality: In this way, the buyers of Tata Steel Mill ensure quality which makes them a
preferred choice.

Innovation: Able to maintain cost efficiency due to frequent developments in efficiency in

production processes and new product variations in response to customer requirements it
serves Taj RE-Rolling and Steel Mill.

Supply Chain Efficiency: The timely delivery as in SCM improves supply deliveries and
increases the satisfaction of the customers, thus improving the sales proportion or market
share.

Market Expansion: Exploration of new markets and segments is often seen as strategic
undertakings that can improve market share position and mitigate the risk of market
saturation, or total reliance on a particular geographical area or industry.

Outlook:
Taj Steel Mill has laid out the strategy it intends to use to foster sustainable growth and to
increase its market share and dominance. Strategists that were seen in the company include
the adoption of advanced technology, product differentiation, and geographical expansion
which will assist in the formulation of methods to maintain and improve its market position.
Further, it qualifies for the basic strategies such as the formation of strategic partnerships
and incorporation of sustainable practices for the enhancement of its competitive advantage
in addition to attracting eco-conscious consumers.

Our Customers and Dealers

1: METRACON Islamabad
2: ZAIN UL ABIDEEN CO. SWAT
3: KPK CONSTRUCTION COMPANY SWAT
4: MAIMAAR CONSTRUCTION, PESHAWAR
5: ANHUI MAQBOOL, PESHAWAR
6: AL MAUREEN CONSTRUCTION, PESHAWAR
7: JANSON CONSTRUCTION CO. PESHAWAR
8: TAHIR SADDIQUE AND BROTHERS, MARDAN
9: BILAL CONSTRUCTION, MARDAN
10: TAKHT BHAI CONSTRUCTION COMPANY, MARDAN
11: ZEENAT CONSTRUCTION, PESHAWAR
12: MOMAND CONSTRUCTION, PESHAWAR
13: IMRAN CONSTRUCTION, CHAKDARA LOWER DIR
14: SHER NIAZ CONSTRUCTION CO. MARDAN
15: INSAF STEEL, PESHAWAR
16: KHATTAK STEEL CORPORATION, PESHAWAR
17: FARAZ ATIQ AND CO. SWAT
18: BAKHT SHER ALI AND CO. SWAT
19: ASMATULLAH AND CO. MATTA SWAT
20: NEW ZAMAN STEEL, MINGORA SWAT
21: ALAMZEB AND CO. SWAT
22: SHER ALI CONSTRUCTION CO. MATTA SWAT
23: SHAUKAT STEEL, MINGORA SWAT
To add to the profitability of Steel Mills, it is important to manage the relationships of
customers with their dealers. Here are some of the strategies that they can bring into practice:

Quality Assurance:
The quality of the steel products is important, therefore, ensuring that the quality remains
top-notch is significant. The result of delivering high-quality steel is consistent and reliable,
which is a pathway to the trust of customers and dealers, which leads to positive and
impactful referrals with constant business dealings.

Customer Segmentation:
Categorizing and segmenting customers according to their preferences, needs, and buying
behavior gives the steel mills a chance to carve out the products and services that resonate
with them. To be able to understand each category and segment requires assistance in
personalized tailor-made solutions, which can be a road to a high level of loyalty and
satisfaction.

Effective Communication:
Vivid and crystal-clear communication with customers and dealers is a significant key. This
communication includes updates on time regarding their order status, the variation in the
price ranges, the specifications of the product, and all other relevant information. Maintaining
open and effective communication with customers adds to the trust and propels strength in
this relationship.

Value-added Services:
Being able to offer some value-added services such as technical support, after-sales services,
and training helps the steel mill to stand out against all other competitors. Being able to cater
to the concerns of the core product is one thing but having the ability to provide additional
assistance and support except for the core product and beyond that paves the way for an
elevated increase in customer loyalty and competitive advantage.

Flexible Pricing Strategies:

Being able to mold the price ranges according to the demands of the customer, the condition
of the market, and the competitive landscape, such flexibility can boost the profitability of
the steel mill. These flexible pricing strategies can include loyalty incentives, volume
discounts, or dynamic pricing which is based on the fluctuations of the costs of the raw
material.

Efficient Supply Chain Management:

Designing the supply chain in a way that decreases and minimizes the inventory costs lowers
the lead times, and overall enhances efficiency is essential. Making use of technologies such
as advanced forecasting tools and just-in-time inventory systems can generate quality levels
of inventory and ensure the delivery is on time for the customers and dealers.

Customer Feedback and Satisfaction:

To keep the feedback up to date by actively collecting it from customers and dealers, about
how their experiences with the services and products of the steel mill are extremely
important for consistent growth and improvement. Catering to any of the issues or concerns
that a customer or dealer comes up with, timely and promptly demonstrates the image of
extreme commitment to customer satisfaction and helps in the building of long-term
relationships.

Investment in Technology and Innovation:

Taking full advantage of technological advancements and, investing in the right kind of
innovations can step up the gains in efficiency and improvements of the product but also side
by side, the costs can be reduced due to digitalization which could also enhance the quality
of the product, and keep the steel mill ahead of all the competition around.

Training and Development:

Giving efficient training and opportunities for development for the sales teams and dealers
would crown them with even more knowledge and structured skills to be able to promote
and sell the steel mill’s product efficiently and effectively. When the sales professionals are
well-trained and have enough knowledge about the product, they can understand the
customer’s needs better and can cater to them with innovative solutions, which would
simultaneously lead to an increase in profits and sales.

Long-term Relationship Building:

The reason to build and encourage long-term relationships is based on mutual respect,
reliability, and trust which is the main tool for consistent and sustainable profitability.
Prioritizing water and nurturing the already existing relationships while also being aware of
every new opportunity that arises for the growth and expansion of the Steel Mills.

SWOT Analysis

Strengths:

• Advanced Production Technologies and Efficient Manufacturing Processes:

Taj Steel uses advanced technologies in manufacturing, with high levels of automation and
line efficiency that improve productivity and product quality. This technology introduces
the company to cost-effective production that enhances its ability to meet consumer
demands while at the same time maintaining high-quality standards.

• Diverse Product Range:

 Including a diverse range of steel products in its portfolio, Taj Steel can spread risks across
more than one targeted market segment, thus minimizing risks tied to dependence on one
or more kinds of products. The company needs to influence market position and share
since it reduces risks associated with fluctuations in a particular segment.

Weaknesses:
• Reliance on Global Supply Chains:
The company heavily relied on imported raw materials to pursue its efficiency drive, which
has exposed it to multiple risks, including delivery disruptions and skyrocketing transportation
costs. It should also be understood that these disruptions do not merely disturb a production
schedule and raise operational costs.

• Vulnerable Supply Chain:

Taj Steel's reliance on an efficient and affordable supply chain puts the company at
loggerheads with risks of logistical disruptions in supply chain routes, that result in inefficient
inventory and production hold-ups.

• Rising Costs:
The researchers identified issues such as the rising cost of raw materials and energy as a threat
to the profit of organizations. Due to the fluctuations of the two costs described above, the
challenge of keeping profits afloat emerges.

• Inventory Management Issues:

some customers end up experiencing stock out due to shipment delays hence it is difficult to
coordinate customers’ orders with available stocks.

• Environmental Impact:
All types of steel manufacturing are by nature energy-consuming and have negative impacts
on the environment. Penalties for non-compliance with the established norms and
requirements proposed by the government entail fines, thus putting the image of the
company at risk.

Opportunities:
• Taj Steels can improve its functioning by coming up to partner with local suppliers to
somewhat alleviate supply chain problems.
• The opportunities available for Taj Steels include research and development to enhance
efficiency.

• It might be possible for Taj Steels to undertake some of the green production techniques
that will enable them to attract consumers who are sensitive to the environment.

• Expansion opportunities within developing regions of Pakistan that may possess

requirements for infrastructure upgrades.

Threats:
• Economic upheavals such as fluctuations in the price of steel result in a decrease in the
overall steel demand hence a negative impact on Taj Steel sales.

• High competition is in the steel industry, which makes them price their products
competitively.

• New rules regarding international trade and environmental regulation pose a risk of cost
rise.

• Newer methods of producing steel are also eco-friendly and might lead to a lesser
demand for traditional production steel.
 The Supply Chain of Taj Re-Rolling and Steel Mills

Problems
Taj re-rolling and steel mills mostly import raw materials such as iron ore, Coal (Coking Coal),
Scrap Metal, etc from countries like South Africa, the UK, and Dubai. In recent years, COVID-
19 has caused major issues and disruptions worldwide. Many countries shut down their port
to slow down their major processes like mining and cause delays in the iron ore and coal
needed by the company. Secondly, Pakistan was facing an energy crisis, making producing
steel more expensive and less competitive than other countries around the world and in the
competitive market.
Taj company started struggling to get the raw materials they needed for the flow of their
supply chain as import has become difficult and expensive. Many issues arise due to Several
import restrictions and high freight costs which means the company must pay a lot more to
bring the essential supplies. This is making it harder for the company to keep up with their
production and to stay competitive in the steel industry making it tougher to operate
smoothly.
Delay in Shipment:
The restrictions on the import caused major delays in getting the raw materials that the Taj
Steel Company needed, causing problems in their supply chain as a result they could not
maintain their schedule which led to missed deadlines and won’t be able to fulfill the
customer orders.
Their inability to meet the orders and customer requirements on time caused dissatisfaction
as the customer was unhappy about the delay and lost their trust in the company so the
customers started to switch to competitors who claimed to provide more reliable and timely
delivery. This is causing the company to lose market shares and is causing long-term damage
to its reputation and customer relations.

Increased Freight Costs:

Several restrictions on import led to the increase in the freight cost as the government
started trying and adopting new routes which are significantly more expensive but less
efficient and more costly, driving up the expenses related to the transportation of the raw
material. Additionally, fuel prices also fluctuate so raising the fuel price directly impacts
shipping costs, further increasing the overall cost of the material.
The currency exchange rate also has a crucial role as the local currency of our country is
weak as compared to foreign currencies the cost of importing raw material increased even
more. As a result, the simple raw materials, which might have only increased in cost by
about 10% due to direct factors like freight and fuel end up costing more than these factors
combined affecting the company's overall production costs and profitability.

Customs Clearance Issues:

The delay occurs in the customs processes due to inspections, incomplete documentation,
and blockage on the port slowing down the import of raw materials like iron ore and coal,
etc. These delays result in higher costs paid in storage fees, extra container charges, and
unexpectedly high import taxes. Keeping up with these issues can make operations more
complicated the supply chain gets messed up creates inventory problems and risks the
company's reputation causing unhappy customers and contract losses.

Decreased Profit Margin:

The various challenges that the company is facing are making it difficult to generate profit.
Their struggle to get the material on time, government restrictions, import restrictions, etc
are making things even tougher. This leads to few noes of sales and higher costs for
production and operations as the material is expensive. With this increased cost they make
less money from their sales. Since they can't always raise prices, their profit margin gets
smaller. This financial pressure on the company makes it harder to invest in other
departments like technology and growth and puts long-term success at risk.

Market Competitiveness:
In a discussion with the CEO of Taj Steel, it's clear that market competitiveness played a
major role in their struggles. Economic instability in Pakistan, coupled with rising electricity
and gas prices, posed significant challenges. Unlike Taj Steel, some sugar mills generated
their energy from waste, enabling them to manage costs better despite higher raw material
prices. This allowed them to offer competitive prices for their steel and gain market share.
Competing with steel producers with access to cheaper raw materials became increasingly
difficult for Taj Steel, leading to a potential loss of market share both locally and globally.

PESTLE Analysis
Political:
1. The costs of Taj steel can be affected by changes in international trade policies such as
tariffs.
2. The political stability of the regions where alternative suppliers are located may impact
the reliability of the Thai steel supply chain.

Economical:
0. Taj Steel’s profitability in international trading can be significantly affected by inflation
which may raise the cost of doing business.
1. Logistical bottlenecks or fuel price hikes leading to high freight costs could narrow
down profit margins.
2. During economic boom or recession periods in a market, demand for steel which can
be used by Taj Steels may fluctuate extensively.

Social:
1. Taj Steel's productivity and costs are influenced by the availability of skilled manpower
and labor costs.
2. The demand for steel as well as urbanization is growing.
3. Taj Steels will be forced to switch to greener production methods (use of renewable
energy) due to an increased preference for environmentally friendly products by
consumers.

Technological:
1. Automation and efficient production technologies can be used to help Taj Steels lower
operating expenses and alleviate supply chain issues, thus allowing them to focus
better on their profits.
2. The possibility that new materials and manufacturing methodologies may open
avenues for product innovation at Taj Steels cannot be overlooked.
3. In addition, automating processes as well as AI can also help with operations
streamlining and decrease labor costs at Taj steels saving them money in terms of
salaries paid out per annum.
Legal:
1. Keeping Environmental, Health & Safety (ESH) regulations gives a company like Taj
Steel protection from legal actions resulting in fines or loss of operating licenses while
at the same time ensuring employee safety, especially with regards to the prevention
of accident occurrences that might lead to injuries or even lives lost at workplaces.
Furthermore, complying with these environmental regulations may increase
expenditure because there is a need to invest in technology.

Environmental:
0. Adjusting to stringent environmental regulations can increase operational costs for Taj
steels but can also open opportunities for market differentiation.
1. Adopting sustainable practices and reducing the carbon footprint can improve Taj
Steel's reputation and attract eco-conscious customers.

Solutions
Businesses require a stable market and friendly government policies to work. Precarious
economy and political instability are among many crises the market is facing in Pakistan. Due
to such crises, harsh policies take place as a result businesses like Taj Re-rolling and Steel Mills
suffer losses and unstable operations. Below are the solutions to the identified challenges.

Sourcing Locally:
To clarify, sourcing locally will benefit Taj Rerolling and Steel Mills in overcoming the crisis of
delayed shipments. Sourcing locally is also appreciated due to reduced lead time. Contacting
and placing orders with local suppliers requires less time when compared to international
suppliers. Subsequently, local suppliers deliver the product quickly compared to international
sources due to which local sources are deemed to be more agile.
Taj Re-Rolling and Steel Mill imports their raw material from multiple countries including
Dubai, The UK, South Africa, Bahrain, and Oman. The raw materials include Metal Scrap.
Furthermore, Metal scrap is imported from these countries due to its good quality. However,
due to fluctuations in the exchange rate, issues with Letters of Credit (LCs), and import duties,
the cost of raw materials increased significantly. This sudden increase affected the profit
margin as well as the operational schedule.
Due to these issues, Raw Materials cannot be imported into the country. The unavailability of
Raw Materials disrupted the operations of Taj Re-Rolling and Steel Mill. Consequently, the
customers were not getting their demanded product in time. To cope with this challenge, we
suggest Taj Re-Rolling and Steel Mill source locally. To clarify, sourcing locally will benefit Taj
Re-Rolling and Steel Mills in overcoming the crisis of delayed shipments. Sourcing locally is
also appreciated due to reduced lead time. Contacting and placing orders to local suppliers
requires less time when compared to international suppliers. Subsequently, local suppliers
deliver the product quickly compared to international sources due to which local sources are
deemed to be more agile.
Integrating Technology:
In addition, integrating technology will help in the visibility and coordination across the supply
chain. Software like Shippeo, Fourkites, SAP Ariba, and Oracle SCM can be very helpful in
better planning and anticipation of delays. Integrating technology can bring numerous
opportunities to mitigate the challenges faced by Taj Re-Rolling and Steel Mills. To clarify,
Software can ensure the automation of tasks such as streamlining of procurement processes
from putting out the demand and payment for goods. In addition, the software will also help
in forecasting, planning, and replenishment processes. Consequently, the management will
feel at ease in managing inventory by having a real-time inventory tracking system and
automated reordering. Software like Fishbowl Inventory and NetSuite ERP will be beneficial.

Inventory Buffer:
Safety stocks have various benefits and for a company like Taj Re-rolling and Steel Mills, the
product can last forever without having the trouble of expiry like other products. In such a
way Taj Re-Rolling and Steel Mill can make full use of implementing an inventory buffer that
will offer various significant advantages in mitigating supply chain uncertainties and ensuring
smooth operation management. The current uncertainties faced by Taj Re-Rolling and Steel
Mill include delayed shipment and late deliveries to customers. To cope with such challenges
Safety stock will eradicate Supplier Delays, assist the operation during import restriction
crises, ensuring on-time delivery, consistent product availability, operational continuity, cost
management, and risk reduction.

Collaborative Logistics:
Collaborative Logistics offers a strategic approach to handling the challenges faced by Taj Re-
Rolling and Steel Mill. One of the most prominent issues businesses in Pakistan face is the
increased freight cost. The trend of revising petroleum costs every 15 days puts an abundance
of pressure on the business environment. Below is the graph of petroleum price trends from
2015 to 2024.

As prices of petroleum surge for industrial consumers along with domestic consumers, large
industries are starting to feel the heat. The Pakistan Association of Large Steel Producers
(PALSP) on Sept 23rd,2023 issued a grave warning regarding the surge in Steel products. To
clarify, petrol prices are influenced by global crude oil rates, exchange rates, and government
taxation. Pakistani Rupee exchange rate deteriorating over time we suggest Taj Re Rolling and
Steel Mill opt for Collaborative Logistics. Taj Re-Rolling and Steel Mill can apply the model of
Competitor Collaborating. The model states that companies from the same industry can
collaborate on logistics for mutual benefit. Taj Re-Rolling and Steel Mill will have to partner
with other companies which may include other Steel Mills or any logistic company to share
transportation costs.
Furthermore, the management will also be required to negotiate fuel surcharges with the
partner firms. This will result in a significant discount from the courier when their service is
purchased in bulk, reducing the cost per unit of goods transported. Subsequently, sharing
logistics data will help in optimizing routes due to which travel time is reduced and fuel
consumption. To clarify, Collaborative Logistics is combining shipments from multiple
companies that can lead to a fuller load and fewer trips making it more efficient.

Product Mix and Operation Optimization:

The extreme environment of the market makes it much harder for businesses to grow or even
survive. A decreased profit margin often results in breakeven and sometimes facing huge
losses. However, businesses need to make sure to optimize their operations and product mix.
Against the realistic background of excess production capacity, product structure imbalance,
high energy consumption, and procurement of materials, the implementation of operation
and product mix optimization is essential. Taj Re-Rolling and Steel Mill is one of the typical
resource and energy-intensive companies.
Taj Re-Rolling and Steel Mill follows the production operation mode of customer orders that
leads to production orders followed by production planning and production scheduling.
Following such an operation mode results in a certain number of production orders for mass
production. Subsequently, production planning and scheduling are the two main techniques
for operation optimization. Taj Re-Rolling and Steel Mill should switch to order-driven
manufacturing mode. Orders from customers are scattered with multiple varieties,
specifications, and delivery time differences among many characteristics. To avoid holding
costs associated with products order manufacturing mode will be beneficial for Taj Re Rolling
and Steel Mill in cutting the cost and increasing their Profit Margin.
Furthermore, making use of Product Mix Optimization to focus on high-margin products and
discontinue low-margin products. It is crucial for Taj Re-Rolling and Steel Mill which is facing
challenges related to decreased profits and increased costs associated with production.
Shifting the focus of resources towards high-margin products will ensure the company’s
efforts are directed towards the most profitable areas. By focusing on high-margin products
Taj Re-Rolling and Steel Mill will be able to improve their overall profitability. Consequently,
workers associated with the production of low-margin products should also be let go,
ultimately decreasing the cost of production. To conclude, reducing the number of low-margin
products will simplify the supply chain making it easier for management in terms of visibility,
control, plan, and organization.
 Solutions Impact on Company's Operations / Recommendations
The recommendations that were made for Taj Re-Rolling and Steel Mills handle a variety of
operational issues and offer doable advice to improve their effectiveness and durability in the
face of Pakistani instability and market instability. Let's evaluate how each option will affect
the business's operations:

Sourcing Locally:
➢ Recommendation:
Taj Re-Rolling and Steel Mills can benefit from several advantages, such as shorter lead times
and a more dependable supply chain, by giving precedence to local suppliers.
➢ Impact:
Reduced Risk of Delayed Shipments:
Taj Re-Rolling and Steel Mills may avoid the hassles of foreign logistics, such as delays in
customs clearance and shipment, by procuring materials locally. This reduces the possibility
of production interruptions and maintains continuous operations by guaranteeing a regular
and on-time supply of raw materials. Furthermore, local suppliers are more likely to be
knowledgeable about native laws and market dynamics, which further lowers the possibility
of delays or issues with compliance.
Enhanced Agility:
Being close to regional suppliers makes reacting quickly to unexpected interruptions or
changes in market demand easier. The organization might maximize resource allocation and
customer service by rapidly adjusting production plans or procurement strategies, thanks to
improved communication channels and reduced lead times. Also, local vendors are frequently
more accommodating to last-minute demands or needs for adaptability, giving more freedom
to satisfy client specifications.
Cost Savings:
Local sourcing reduces extra expenses like import fees and shipping costs, even though it could
initially cost more than international alternatives. This eventually leads to huge cost
reductions and higher profits. Plus, local suppliers could charge less for specific materials or
components, particularly if they gain from economies of scale or unique advantages in the
home market. Taj Re-Rolling and Steel Mills may improve its cost competitiveness and long-
term profit margins by selectively sourcing locally.

Integrating Technology:
➢ Recommendation:
There are several benefits to using advanced supply chain management software, including
increased automation, decision help, and transparency and collaboration.
➢ Impact:
Enhanced Visibility:
Problems in the supply chain may be continuously identified and resolved with the help of
modern IT solutions, which provide real-time insights into inventory levels, supplier
performance, and production status. This enhances inventory management procedures by
supporting the effective deployment of resources and lowering the possibility of shortages or
overstocking. Additionally, forecasting and scenario analysis made possible by modern
analytics capabilities allows Taj Re-Rolling and Steel Mills to foresee future patterns in demand
and modify its operations appropriately, lowering the possibility of expensive interruptions or
inefficiencies.
Streamlined Processes:
Task fulfillment speeds up and human error reduction is achieved by automating critical supply
chain processes including order processing and demand forecasting. Employee attention may
now be directed towards strategic goals like product innovation or market development,
which will increase overall operational efficiency and growth. Furthermore, information may
be readily exchanged with suppliers, customers, and logistics partners through connection
with other data sources and systems, promoting improved cooperation and quicker decision-
making throughout the supply chain ecosystem.
Improved Collaboration:
Integrated software platforms allow smooth communication and teamwork between internal
divisions and outside associates. The terms coordination, responsiveness, and customer
satisfaction may all be improved by Taj Re-Rolling and Steel Mills exchanging data and insights
throughout the supply chain ecosystem. For instance, suppliers can modify their delivery dates
in response to real-time visibility into production plans and inventory levels, which lowers the
possibility of inventory shortages or production delays. Like this, a closer relationship between
Taj Re-Rolling and Steel Mills and its customers is made possible by cooperative forecasting
and demand planning, which guarantees speedy product availability and increased client
satisfaction.

Inventory Buffer:
➢ Recommendation:
Keeping safety stocks available as an inventory buffer protects against supply chain delays and
ensures continued operations.
➢ Impact:
Risk Mitigation:
Safety stocks provide reliable service and customer satisfaction by acting as a protective
measure against unexpected events like production breakdowns or supplier delays. Taj Re-
Rolling and Steel Mills may reduce the risk of inventory shortages or excess inventory by
keeping a safe stock of essential raw materials or finished items, protecting its sources of
revenue and market share. Furthermore, safety stocks provide a buffer against seasonal and
demand uncertainty, allowing the business to react more quickly to unexpected changes in
consumer demand or market demand.
Operational Flexibility:
Having too much inventory gives the business the flexibility to react to changes in the market
or delays in the supply chain. Having excess inventory on hand allows Taj Re-Rolling and Steel
Mills to swiftly modify its production plans or fulfillment priorities, preserving excellent service
standards and client satisfaction, whether dealing with unexpected jumps in demand or short
supply shortages. Additionally, safety stockpiles can safeguard against production risks or lead
time uncertainty, enabling the business to keep producing at an even rate despite outside
challenges or difficulties.
Cost-Effective Planning:
Although carrying costs relate to keeping emergency supplies on hand, the advantages of
continuous operations and satisfied customers frequently exceed these costs. Moreover, just-
in-time replacement and demand forecasting are two strategic inventory management
techniques that may gradually reduce holding costs and maximize inventory levels. Taj Re-
Rolling and Steel Mills may increase its operational efficiency and profitability while lowering
the risk of excess inventory or shortages by finding the ideal balance between service levels
and inventory investment.

Collaborative Logistics:
➢ Recommendation:
Transportation expenses may be reduced, and supply chain efficiency can be increased by
using collaborative logistics with partners or peers in the sector.
➢ Impact:
Cost Reduction:
Taj Re-Rolling and Steel Mills can take advantage of economies of scale and bargain for better
shipping rates through collaboration with peers in the sector or technical partners. The firm
may increase profitability and cut costs by combining resources and sharing logistical assets
like trucks and warehouses. This will help it become a greater threat in the market. Further
improving its cost competitiveness and operational flexibility, cooperative logistics
partnerships may also provide Taj Re-Rolling and Steel Mills with access to specialized
transportation services or infrastructure that would be costly or logistically difficult to develop
internally.
Optimized Routes:
By effectively merging goods and reducing delivery routes, collaborative logistics lowers the
cost of transportation and its negative environmental effects. The organization may meet
sustainability goals while improving operational effectiveness and customer happiness by
reducing empty kilometers and improving vessel use. Plus, cooperative logistics alliances
could allow Taj Re-Rolling and Steel Mills access to routes for transit or special treatment from
logistics suppliers, cutting down on delays and raising customer satisfaction levels.
Risk Sharing:
Reducing the risks associated with capacity limitations or delays in transportation can be
achieved by forming partnerships with reliable logistics providers or similar businesses. Taj
Re-Rolling and Steel Mills can guarantee rapid and reliable delivery of goods to clients,
increasing their happiness and loyalty, by expanding their range of transportation alternatives
and pooling their resources. Furthermore, in the case of localized interruptions or regulatory
changes, friendly logistics alliances may allow the organization to access other forms of
transportation or routes, guaranteeing company stability and flexibility in the face of external
problems.

Product Mix and Operation Optimization:

➢ Recommendation:
Connecting production plans with market demand, focusing on high-margin items, and using
flexible manufacturing techniques are all part of improving product mix and operations.
Impact:
Profitability Improvement:
Taj Re-Rolling and Steel Mills may maximize its product mix by emphasizing high-margin goods
or take advantage of specialized markets by examining market trends and consumer
preferences. By improving revenue generation and profitability, this strategic focus lets the
organization improve its market share and financial performance over time in an ongoing
way. Additionally, by focusing on high-margin items, Taj Re-Rolling and Steel Mills can set itself
apart from competitors and take more value from its current customer base, securing its
position in the market and the competitive environment.
Resource Efficiency:
Using lean production ideas and flexible manufacturing processes maximizes the use of
resources and reduces waste. The organization may improve operational effectiveness and
profitability by reducing excess inventory and related carrying costs by employing just-in-time
inventory management and matching production levels to real demand. Utilizing automation
and robotics, two newer manufacturing technologies improves product quality and
production efficiency while further maximizing the use of resources and lowering production
costs.
Agility and Responsiveness:
Taj Re-Rolling and Steel Mills can quickly adapt to changing customer preferences or market
conditions by matching production schedules with demand. This flexibility allows the business
to take advantage of new possibilities and reduce risks, maintaining its competitive advantage
and long-term market relevance. Additionally, Taj Re-Rolling and Steel Mills may rapidly offer
new products or variations in response to changing customer demands and preferences while
minimizing time-to-market and development costs by using flexible manufacturing techniques
and flexible product designs.
Simply Taj Re-Rolling and Steel Mills may increase the durability of their supply chain, improve
their operational efficiency, and set themselves up for long-term development and success in
Pakistan's ever-changing economic environment by putting these complete solutions into
practice.

Conclusion:
Taj Re-Rolling and Steel Mill is a company which was known for its quality steel products.
They are certified for their quality of producing steel and meeting international standards.
But lately, in recent years they have been facing some tough times. Several import-related
problems have occurred like delays in getting the raw material, higher shipping costs, and
challenges in clearing customs are making the company cope with their normal operations.
However, several measures can be taken to improve and reduce these challenges and the
company can ensure sustained growth and competitiveness. By sourcing locally, integrating
technology for supply chain visibility and efficiency, implementing inventory buffers,
embracing collaborative logistics, and optimizing product mix and operations the company
can solve the complexities more effectively. These are long-term success guidance and
solutions to enhance operations, profitability, and customer satisfaction.

Reference:
• https://www.facebook.com/taj.steelmills/
• https://www.instagram.com/unitedsteels/?igsh=MXRjczZ3aDkyb2FhYw%3D%3D