Supply Chain Management Assignment No.


Submitted By Raza Sajjad Hussain 12350 Submitted to Mr. Adnan Shehzad

Date: Class:

8-March-2013 Friday 6-9

Desi ghee. yogurt. Rahim Yar Khan’s facility commenced in 2005 when HFL’s daily demand fetched to1. fabricated and stored. inventory and transportation are logistical drivers. Engro.2 million litters per day. Good milk) producing essentially the same commodity. cream. whereas rests of three are known as cross-functional drivers. 1. new production lines were installed like juices. The brief description regarding theses drivers as tailored Haleeb Food is as under. Bahi Pharoo’s facility began operations in 1986 with the production of UHT milk. These five drivers play a vital role in HFL’s supply chain process in order to achieve both efficiency and responsiveness in fulfilling the market demand. this facility is not being operated due to low market demand. powder milk.Haleeb Foods Limited (HFL) The industry structure packed milk in the category is oligopolistic where there are a few firms (Haleeb. These supply chain drivers include: 1) Facility 2) Inventory 3) Transportation 4) Information 5) Sourcing First three drivers of facility. Facility HFL have two facilities where all the products that include milk. Recently. While reorganizing and reinforcing the existing brands. Nestle. tea mix and juices are assembled. cream and yogurt. powder milk and Dairy Queen. Pakistan is the fourth largest producer of milk in the world. three-fourth of its total milk is produced in the Punjab province. These facilities are located in the districts of Bhai Pharoo and Rahim Yar Khan. . Supply Chain Driver: There are five supply chain drivers that are integrated with the motive to achieve company’s competitive and supply chain strategy in optimal manners.

Both of HFL’s facilities are equipped with advanced imported plants. Besides. Similarly. HFL’s inventory control strategy enables the company to gain efficiency since minimum inventory is held. it is not stopped at any cost until the last step of packaging is performed. While production of dairy items and juices. HFL’s intensive distribution network delivers the products to distant areas where Haleeb Food plans to create a market. Inventory: HFL does not carry large amount of inventory in its facilities and warehouses. 2. which enable the company to vary its production capacities according to market demand. Transportation HFL is using only traditional fast moving road transportation modes in all the stages of supply chain process. This strategy also helps Haleeb Food in demonstrating a low cost producer where the advantage of cost reduction methodologies is transferred customers. All the trucks at procurement stage are equipped with essential technology that ensures the safe transfer of milk from PHEs to facilities. This mode is adopted to achieve efficiency while reducing transportation costs in the movement of products in all stages without any lose in quality and standards of products. HFL Limited is emphasizing on both responsiveness and efficiency in transportation of goods with an objective to carry final products to customers within the targeted cycle time of 2 days by incurring as minimum cost as possible. Only the finished goods inventory is held at plant’s warehouses that too for very short time period. achievement of economies of scales is not a hurdle. Due to this capability. milk and fruits are transferred to production facilities just after the arrival at plants. .These both facilities are located near to HFL’s big markets and its collections centers. gets production through varied capacity and entire products are dispatched to market in 7 days. which really enable the company to get and make the supply of prime quality material. when the fabrication begins. hence no work in process inventory is maintained. no inventory of raw material is kept. 3.

which keeps up-to-date record of inventory and new orders and shares with Head Office on daily basis. company’s agri-services teams visit all the rural areas and securitized all the factors that are essential to perform prior to obtaining the superior quality inputs. 5. fruits and technology. Enterprise Resource Planning and Supply Chain Management Software to keep the full information regarding supplier’s and PHE’s capacity. routs through which a milk should be carried to PHEs and then to production facility in Bhai Pharo. since HFL is committed to provide prime quality goods to its customers.4. HFL also ensures the complete and accurate information of trucks during their journey towards the facility. Information HFL has designated an active Forecasting and Planning Department. for which company is relying both on in-house and outsourced sources that will ensure the delivery of prime quality products to market. faxes. reliability. coordination and consultation. delivery to warehouses and sales per day. HFL have a careful process as far as the selection of its supplier is concerned. Besides. in case of any accident or unfavorable circumstances. HFL have a portfolio of suppliers regarding all the fundamental inputs of milk. For this purpose. HFL’s basic objective is to achieve efficiency in its operations. total production per day. internet. which explores the customer’s purchasing patrons and behaviors in each market and prepares a feasible demand sheet on weekly basis. This all information really enables the company to be responsive and fulfill any uncertain demand within the time span of 3 to 4 days. This report helps Procurement Department in assigning targets to all Milk Collection Centers. . alternative sources are drastically used to avoid any kind of lose. Company believes in long term and strong relationship with all of its suppliers by demonstrating mutual respect. HFL Limited has accessed to all necessary information technological tools like mobile phones. Sourcing: HFL’s entire manufacturing process of all products categories is performed in-house facilities under the domain of company’s experts. HFL Limited also developed an Operations Team.

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