ِ ‫بِس ِْم هللاِ الرَّحْ ٰم ِن الر‬

‫َّحي ِْم‬

Group Members

M.Abdullah (19383)
Atiq khan (19388)
M.Ahsan (19397)
M.Umar (19387)
Mauzam (19384)

Subbmitted to:
Dr:Shahbaz
 Assignment
Supply Chain Management
Company Introduction
The cooking oil industry is one of the largest manufacturing sectors of Pakistan. A
large number of local and multinational organizations comprise this rapidly
growing industry. Currently, 160 small and medium-scale vegetable oil and ghee
firms are part of the edible oil industry. Some of the most well-known brand
names that are a part of this industry include Shan, Dalda, Habib, Mezan, Kashmir
and Sufi.

Zouq Mills had set up the factory in 2011 by the founder of Zouq Mills, Hafiz
Muhammad Usman Tariq. The gheeintroduced in the market is known as Zouq
Banaspati ghee. Zouq Banaspati ghee is relatively a new product in the industry. It
is manufactured by Zouq Mills, a medium-scale company that engages in the
refining and processing of cooking oil and ghee.
The head office of the company is located at Link Road, Lahore. Departments at
the head office include: Accounts, Sales and Owner/director’s office.
The company engages in manufacturing and trading. Currently, the firm’s
operations are carried out on a medium-scale, however, the management plans
to achieve intensive expansion and ultimately become a large-scale operating
firm. The production plant is both capital intensive and labor intensive, providing
facilities such as:

Electric Room: Used to control the operations of various areas. The power of an
area is disconnected if no operations are to take place there.
Mechanic shop: Repair of machinery takes place here
Boiler: The boiler is the main hub of energy. There are various sources of energy
which ‘feed’ the boiler to produce energy. E.g. coal, wood and corn.
 Contents
No:1 Objectives of the project
No:2 Brief introduction of ZOUQ mills
No:3 Products & categories
No:4 Supply chain of ZOUQ mills
No:5 Analysis of supply chain if ZOUQ mills
No:6 Competitive strategy
No:7 Understande the supply chain capibilities
No:9 Achieving strategic fit
No:10 Forcasting
No:11 Conclusion
Products & Categories
The company under discussion is named Zouq Mills, Private Limited.
The products being sold under the company are:
Zouq Banaspati
Zouq Cooking Oil

Supply Chain of Zouq Mills

The supply chain of Zouq Mills is shown in appendix 1. Zouq Mills
imports all its raw materials from its suppliers in Malaysia, Indonesia
and Thailand. They purchase cotton seeds from cotton factories and
metal tins, polythene pouches and packaging cartons from suppliers in
Pakistan. The firm has established good relations with its suppliers who
provide them with raw materials on long term credit. The finished
goods are sold in bulk to the wholesalers who then sell them to the
retailers and finally the end consumer purchases the product.
Analysis of the Supply Chain of Zouq Mills
Competitive Strategy
A strategy relative to its competitors, in which set of customer needs are met
through products and services. Zouq Mills aims to be efficient by providing
products with reasonable quality and at low prices because the customer of Zouq
Mills place emphasis on these two factors. The competitive strategy revolves low
prices and quality and this is done by remaining efficient.

Zouq Mills Supply Strategy and Strategic Fit

Supply strategy includes design decision regarding inventory, operations, facility
and the flows of the information within and outside of the organization. The
decision of Zouq Mills to build factory near Raiwind road, using distributors to
supply the product and in house production are part of the supply chain strategy.
In strategic fit there must be consistency between the customer priorities that are
known through competitive strategy and supply chain capabilities that are known
through supply chain strategy. The important part here is strategic fit which is
explained below.

Understanding the customer and supply

chain uncertainty
Customer segment of Zouq Mills is actually looking for low prices in oil and ghee.
Customers of Zouq Mills are actually aiming to get reasonable quality in exchange
of reasonable prices as compared to other superior leading brands in the market.
This is why the customers are willing to spend time to get it. The demand of the
customers, of oil or ghee.
Forecasting
Forecasting is the art and science of predicting the future demand for a product. It
is usually stated as a quantity (or value) over a specific time period. Hence,
demand forecasting primarily deals with analyzing historical data, generating
statistical forecast for old and new products and collaborating the data with
suppliers and internal mangers. There are a number of inputs into a forecast, such
as: historical data, market trends, marketing data and sales force feedback. It is
used in supply chain design, planning as well as in operations. Due to the huge
influx of inventory for Zouq, it is essential to integrate complex forecasting tools
and methods to match it with the level of sales. First of all, Zouq aggregates
demand near the suppliers’ end which increase the overall accuracy of forecasts
as well as allow to gain advantage of economies of scale when purchasing raw
materials.

Conclusion
The competitors of Zouq Mills, such as Sufi Banaspati are using high end
technology and are closely associated with their suppliers. This aids them and
gives them the competitive edge. In order to be able to stay competitive Zouq
Mills needs to expand the nature of its operations. Firstly, it needs to offer
additional variety such as by reducing the fats or adding minerals. This would help
them target newer potential market. Secondly, we have the ingredients such as
castic soda and others to produce the by-products such as the detergent soaps
which it should opt to produce. This will turn their facility into a multi-product
one. And this would be one of the initial steps that we take towards
responsiveness.
 Appendix
Suppliers of Raw Materials
Thailand

Malaysia

Indonesia

Distribution Areas
Khanewal

Narewal

Sahiwal

Sargodha

Kot Momin

Mor Gunda

Pindi Bahauddin

Kasur

Mian Channu

Renala Khurd

Distribution Areas
Khanewal

Narewal

Sahiwal

Sargodha

Kot Momin

Mor Gunda

Pindi Bahauddin

Kasur

Mian Channu

Renala Khurd