EBM

JINNAH UNIVERSITY FOR WOMEN

GROUP MEMBER’S NAME:

ENGLISH BISCUIT
SAMREEN LODHI
MANUFACTURER:
BEENISH KABIR
SUPPLY
DOULAT CHAIN
MALIK DOLLY
MANAGMENT
AROOBA AZAM
SHAHZADI NEELOFER
SAHAR KHAN
HIRA SHAHID KHAN
CLASS: BBA IV

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ACKNOWLEDGEMENT
C K N O W L E D G E M E N T

We thank Allah for guiding us through the phases of

compiling this report and helping us out in all the difficulties.

We would like to take this opportunity to thank MRS,

TOOBA SAUBAN our teacher for the course of “SUPPLY
CHAIN MANAGEMENT” at JINNAH UNIVERSITY FOR
WOMEN, for her valuable support and encouragement, which she
has offered.

This report is a joint effort of all the group members SAHAR

KHAN, SHAHZADI NEELOFER, HIRA SHAHID KHAN,
DOULAT MALIK DOLLY, BEENISH KABIR, AROOBA
AZAM and our group leader SAMREEN LODHI and we could not
have been made possible without the immense help and cooperation of
our family members. Without their support and the amount of time
that they gave us, this report would not have existed.
SUBMITTED TO:
MRS, TOOBA SAUBAN
Thanks a lot.

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EXECUTIVE S UMMARY
X E C U T I V E U M M A R Y

This Report “Supply chain management of English Biscuit Manufacturers

Limited” (EBML) is a project of our supply chain management course in 8 th
semester at the JINNAH UNIVERSITY FOR WOMEN. We conducted this
report under the guidance of our teacher Miss TOOBA.

English Biscuit Manufacturers (Private) Limited was established as a joint

venture company in 1965 with the name of Peek Freans Pakistan Limited.
EBM has been in the business of manufacturing and marketing branded
biscuits in Pakistan for over 40 years. EBM is also the first biscuit company
in Pakistan to have achieved ISO - 9001 Certification in correspondence
with its institutional slogan 'The Legend Leads' .English Biscuit
Manufacturers (Pvt) Ltd., or (EBM), is the country's leading manufacturer
of biscuits and cookies since 1967

We also highlight our commitment to Best Practice, not just within our
company, but encouraging other companies and individuals on to being
the very best that they can be. Presenting our commitment to a healthy
environment through our own initiatives, to manage the impact of our
activities and by encouraging that commitment in others. EBM has a
vision for a brighter future and we believe that this report demonstrates
our commitment to realizing that future, through our actions, through our
own plans for the future, and through everything that we are.

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TABLE OF CONTENT

 Company introduction

 Vision

 Mission

 Values

 Policies

 Product line

 Major suppliers

 Major competitor

 Supply chain management

 Structure of supply chain management

 Process of supply chain management

 Strategies of supply chain management

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Decisions of supply chain management

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THE LEGEND
INTRODUCTION:
English Biscuit Manufacturers (Private) Limited was established as a joint venture company in
1965 with the name of Peek Freans Pakistan Limited. In 1966, the UK sponsor company was
renamed Associated Biscuits International Limited (ABIL), while the venture was renamed
English Biscuit Manufacturers (Private) Limited (EBM), which stands to date. EBM started
manufacturing and marketing the world famous Peek Freans range in 1967 in order to provide
Pakistani consumers with nutritious and hygienically packed biscuits of the highest quality.

EBM has been in the business of manufacturing and marketing branded biscuits in Pakistan for
over 40 years. The brand name 'Peek Freans' is a household name, and people trust and believe in
the quality of the products produced under this brand. EBM is also the first biscuit company in
Pakistan to have achieved ISO - 9001 Certification in correspondence with its institutional
slogan 'The Legend Leads'. The achievement also endorses the company's firm commitment to
high standards of quality.

English Biscuit Manufacturers (Pvt) Ltd., or (EBM), is the country's leading manufacturer of
biscuits and cookies since 1967, with an annual sales volume and production capacity of more
than 90,000 tons and a turnover of more than Rs. 12 billion. EBM is the only Company in the
industry to have achieved recognized international certifications pertaining to quality control,
environmental management system and human resources management, including ISO
9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People) Recognition.
EBM is also the only food company to have been awarded Environmental Excellence Award for
seven successive years 2004, 2005, 2006, 2007, 2008, 2009 & 2010.

VISION:
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 To provide high quality value-added food to contemporary and future generations.

 To constantly endeavor for the acquisition of knowledge and excellence in developing human
skills, product innovations and state-of-the-art technologies.

 To be a good corporate citizen by giving back to the community and improving the lives of
the underprivileged.

 To dispense equitably, fairly, and with compassion, the fruits of success among our “partners
in business”.

 To become a partner with the Government in sharing the responsibility of economic and
social uplift and development of Pakistan.

MISSION:
 Strive for highly responsible management.

 Highest standards of hygiene.

 Protect and preserve the environment.

VALUES:
 We believe that no individual is bigger than the
institution.

 We believe in integrity, transparency and commitment as our cultural ethos.

 We continually adhere to the highest standards of hygiene and ecology.

 We believe in governance in human face.

 We protect and promote the cause of the environment.

 We emphasize on employee welfare.

 We believe in leading and innovating in all aspects of business.

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POLICIES:
EBM Quality Management System binds the management and employees of the company to
follow core policies:

 We will critically examine and continuously review all aspects of operations, from
procurement to be distribution of finished products, to identify any shortcomings or space
for cost - effective improvement and will undertake appropriate quality – enhancement
measure.

 We will identify and, where possible, anticipate changes in consumer tastes and
preferences through Market Research, on the one hand, while Technical Research and
Development on the other, in other to retain leading edge in product and process
development.

 We will endeavor to recognize and establish Beat Practice criteria for all aspects of the
company's activities, including the maintenance of environmental protections and safety
standards.

 We will undertake continuous appraisal, feedback and training of our personnel at every
level to ensure optimum levels of productivity, creativity and job satisfaction.

 The Management believes that every member of the organization at every level shares
and fully affirms the Company's Quality Commitment.

FOOD SAFETY FAMILY:

"For more than four decades, EBM philosophy has been to produce biscuits which meet
International standards of Quality and Hygiene in terms of safety and wholesomeness.

Every member of EBM team is committed to owing this philosophy and has mind-set to produce
the best of products under the Trade Mark of "Peek Freans" and has inculcated this qualitative
culture which gives EBM a competitive edge in keeping its customers satisfaction".

ENVIRONMENT POLICY:
"The EBM Management takes environment as a part of its cultural ethos and deeply committed
to consistently deliver high quality products. It is EBM‘s mission to strive continuously for
environmentally friendly technologies based on a highly responsible management and regulatory
requirements. Aiming to protect and preserve the environment for our employees, our valued
customers, our business associates and the community at large."

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EBM PRODUCT LINE:

 PLAIN SWEET BISCUITS:
 Gluco
 Marie
 Sooper

 CREAM BISCUITS:
 Lemon and chocolate
sandwich
 Rio
 CRACKERS:
 Butter Puff
 Saltish

 NUTS:
 Party
 Peanut Pick
 Peanut Pista

EBM’S MAJOR SUPLIERS:

EBM’S major suppliers are:

 Habib sugar mills.

 Millac and Saima packaging.

COMPETITOR:
The major competitor of English biscuits is CONTINENTAL BISCUITS (LU),

which has a significant share of the market in terms of sales volume.

LU basically has five to six brands which it markets vigorously in comparison to

English Biscuits Manufacturers.

But EBM’s strong planning, management and rational decision making took back the market.
Since then, EBM has been growing fast and has left its competitor far behind.

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SUPPLY CHAIN MANAGEMENT:

“A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers”.

The management of this chain of events is what is known as Supply Chain Management. To be
more precise Supply Chain Management can be defined as:

“The proactive act of improving the efficiency and effectiveness of the

flow of goods services and knowledge within a particular channel with
the goal of reducing total cost and obtaining a competitive advantage for
all the partners.”

EBM’S SUPLY CHAIN MANAGEMENT STRUCTURE:

STRUCTURE

PROCUREMENT WAREHOUSIN
OR SOURCING G

RAW PACKAGIN FINISHED

DOMESTIC IMPORT MATERI G GOODS
PROCUREMEN AL MATERIAL STORE
S

DIRECT INDIRECT
MATERIAL MATEIAL

RAW PACKAGING
MATERIA

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The structure of supply chain department of English Biscuits is divided into two broad
categories:

 Procurement or sourcing.
 Warehousing.

1. PROCUREMENT OR SOURCING:-
EBM’s sub-divide their procurement section into two parts:

 Domestic procurement.
 Imports.

DOMESTIC PROCUREMENT:

The domestic procurement is sub-divided into two parts:

 Direct material
 Indirect material

DIRECT MATERIAL:

Direct material is further divided into two sections:

RAW MATERIAL

The raw materials basically are ingredients material which are using in English Biscuits products
such as eggs, flour, milk, sugar, cocoa etc.

PACKAGING MATERIAL

EBM’s product packaging involves three packaging material that is master carton, dispensers
and films.

INDIRECT MATERIAL:

Indirect material are those material which are uses in the factory but that are not directly related
to the products such as computer equipment ,marketing stuff, tool , stores/equipment, medicines
and stationary.

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IMPORTS:

The EBM appoint two officers who dealing the imports of raw material that is using in products,
the factory tools and spare parts of machinery and equipment.

2. WAREHOUSING:-
EBM’S has three warehouses:

RAW MATERIAL STORE:

Raw material store are those in which they store their raw material stock which are using in their
products such as eggs, milk, flour and cocoa etc.

PACKAGING MATERIAL STORE:

Packing material store is that store in which they store all their packaging material that is films,
dispensers and master carton.

FINISHED GOODS STORE:

Finished goods store are those in which they store their finished goods that’s products.

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EBM’S SUPPLY CAHIN MANAGEMENT PROCESS:

RAW
MATERIAL
SUPPLIER

RETAILER COMPONENT
SUPPLIER

DISTRIBUTION PRIMARY
WAREHOUSE MANUFACTURER

EBM’s supply chain process is comprised of a series of interdependent steps and starts with the
collection of raw materials and ends with packaged brands on customer's shelves. The Supply
Chain Management at EBM ensures that appropriate quality standards are upheld and maintained
at each link in the chain.

The supply chain at EBM comprises the following areas:

Forecasting
Planning
Manufacturing
Deployment
Suppliers
Distribution
The consumer / shopper

FORECASTING:

Forecasting is a vital element of the business, and can be defined as an unconditional statement
of demand of biscuits. Simply put, a forecast predicts how much demand there will be in the
market for a specific product over a certain period.

PLANNING:

The function of planning is to convert marketing forecasts into manufacturing plans. The
planning department works closely with the various operations to ensure that manufacturing
plans are accurately converted into monthly and weekly production plans and budgets.

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Planning is also responsible for monitoring and controlling the amount of stock the company
holds and for ensuring that the correct stock holding levels are maintained to meet customer
service requirement.

MANUFACTURING:

The manufacturing process at EBM involves the conversion of raw and packaging material into
finished product in the most cost effective manner possible. EBM manufactures all of its own
products, and production takes place at the two factories located in Karachi and Hattar.

DEPLOYMENT:

Deployment is the movement of finished goods (biscuits) to warehouses.

MARKETING AND SALES:

The function of marketing and sales is to market the product with the aim of maximizing the
profit of the firm. Effective policies and strategies are made for this purpose.

SUPPLIERS:

For every item EBM have 3 to 4 suppliers, so to cope with any uncertainty.

DISTRIBUTION:

Simply defined, distribution involves the execution (delivery) of sales orders to a customer.
EBM has more than 350 distributors all over Pakistan.

THE CONSUMER /SHOPPER:

The shopper and consumer are the individuals who eventually buy and consume EBM’s
products.

A shopper is the person who purchases the product in store, whereas a consumer is the person
who eventually consumes the product. In many instances the shopper and consumer are one and
the same.

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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 responsible for
influencing the level, timing, and composition of
Customer demand in a manner that will achieve the
company's objectives.

EBM is very much concerned about its marketing as it is

the backbone of its sales. A good marketing strategy has
always been adopted by EBM which keeps on changing with the passage of time. One of the
biggest tools of marketing is advertising. EBM does advertising through different media
channels which include TV commercials, Radio, Magazines etc. Furthermore, EBM also
sponsors different events like cricket matches, concerts etc. Sales activity is also performs 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. Their overall strategy is to
maximize the sales by observing the market trend and consumer demand. EBM has more than
350 distributors all around Pakistan. EBM has recently achieved a sales target of Rs.7 billion,
which is a great achievement.

SALES FORECAST:
In any industrial unit or FMGC unit planning starts from sales forecast. In EBM, 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.

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

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producing 100% we took 15% of that 100% to our opening stocks for the next month. On the
basis of production planning we break them in to the components known as MRP.

MANAGEMENT RESOURCE PLANNING (MRP):

MRP is a systematic approach to management and
planning that allows us to develop production plans
and order materials as required by the plan.

Keeping unnecessary inventory on hand is expensive

and inherently wasteful. MRP helps us avoid costly
overstocks. Conversely, inventory shortages can stop
the manufacturing process and lead to employees
being sent home or working on other less productive
tasks. Material Resource Planning programs provide a
time-dependant picture of future requirements.
Automated planning of material requirements allows
us to consistently meet customer due dates. The MRP
process help the sales department provides reports
forecasting future orders. The forecasted data is integrated with information regarding orders
already in-process. The Bill of Materials module is consulted to determine raw material
requirements. Purchase orders are scheduled using the following criteria. The master production
plan is scheduled. EBM is working to connect suppliers on MRP to have physical contact with
them.

MANNER OF PLACING ORDER TO SUPPLIERS:

To many suppliers we provide material forecast that we have to do. Afterwards the suppliers
have their own requirements and lead times. We purchase material when dealing in for long
terms. Sometimes when we have a good understanding with suppliers we provide them material
forecast which is as good as an order. On this basis suppliers perform their planning and
procurement. In this way whenever we want we place order and purchase the material. In short
we got requirement, raise purchase orders and material is available to us by our suppliers.

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QUALITY ASSURANCES DEPARTMENT:

EBM is the only Company in the industry to have achieved
recognized international certifications pertaining to quality control,
environmental management system and human resources
management, including ISO 9001:2000, ISO 14001:2004, HACCP
certifications and IIP (Investors in People) Recognition. EBM is also
the only food company to have been awarded Environmental
Excellence Award for seven successive years 2004, 2005, 2006,
2007, 2008, 2009 & 2010.

EBM is strictly following the policy of providing its customers, the

best quality. EBM has never compromised on this and therefore, it has been the main reason why
the EBM is so successful and famous amongst its customers. EBM, for this purpose, has
developed a Quality Assurance & Development Department. The basic function of this
department is to check and maintain the quality and standards of raw material used. This includes
testing of flour, eggs, Oil & fats etc. Four Labs are currently working at EBM, for checking and
testing purpose. Two more labs are under:

 Construction.
 Analytical Lab (Centre of Excellence C.O.E )
 Packaging Lab
 Microbiological Lab
 Process Lab

Under-constructed lab includes Research and Development where

research work will be
Performed and new product development work will be done.
Quality control begins with the ingredient assembly stage of
production during the measuring, weighing, and processing of the
raw ingredients. Additionally, most large manufacturers have
quality control (QC) labs responsible for making sure the
materials meet determined specifications. Characteristics such as
appearance, color, odor, and flavor are checked. QC technicians
also test for particle size, viscosity of oils, and pH of raw material. The finished product is also
carefully monitored. Like the inspection of the raw material, the finished products must be
examined for appearance, flavor, texture, and odor. The product is compared to a standard
established during product development. Specially trained testers are responsible for detecting
subtle differences that deviate from the norm. No information is passed on the ERP until it
passes from QC department.

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MIS (MANAGEMENT INFORMATION SYSTEM)

DEPARTMENT:
EBM is an ERP (Enterprise Resource Planning) based
Organization. All the departments are linked with each
other through networking called INTRANET.
EBM is also connected with CFL with INTERNET as
well. A central database has been maintained at EBM
where the information related to Payables, Receivables,
Fixed Assets, and Inventory etc. are saved. Module has
been established for each (payables, receivables, fixed
assets, inventory and so on). Each module is integrated
with each other. This integration has increased the
efficiency of each department, as maintaining and
keeping record of data and information have become
easier. Overall effectiveness of the organization has
also increased to a great extent. All the budgeting,
general accounting and treasury related works are
being performed on this ERP software.

MIS department is responsible to make sure the safety

of information. They are also responsible to take
corrective measures if any problem relating to ERP
arises. Moreover, any issue relating to networking,
hardware, software etc are dealt by this department.
Since ERP has been recently developed and
implemented at EBM, therefore it still has some areas
to be improved. If any department has any query
relating to its concerned module, it may ask and instruct MIS department to make desired
alterations. Furthermore, new modules are also being constructed for the complete
implementation of ERP.

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LEAD TIME:
The lead time of every product of EBM is different from other
products. let say e.g. if we needs eggs we get them on one day notice
so we don’t need a huge stocks 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.

FOR LOCAL PRODUCTS:

On an average the lead time of local manufacturing products is 21 to 25 days, it may extend to a
maximum of 30 days depending on their requirements.

FOR IMPORTS:

In case of imports the lead time is about 2 to 4 months. For different origins and different
products lead times will be different.

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EBM’s 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.

COMPETITIVE EDGE OF EBM:

TIER 1 TIER 2

The buying at EBM takes place at two tier level. Tier 1 is our supplier. Tier 2 is our supplier
supplier’s. We monitor international and national prices where we see synergies we say our
converters to book orders. Converters are the one who are purchasing us (SC department) do not
have any money involvement in it. But the decision is our, we decide the price point of material.
In material pricing we see the main components such as films, what we do we collaborate with
local or international suppliers and crack a deal because obviously our volumes are huge and
when we deal in with large volumes we get synergy’s, our converters deal on our behalf and get
those volumes if e.g. requirement for a particular material is around 150 to 200 tons for a month.
Individual vendor will not be able to provide material of more than 30 to 40 ton.

When that individual vendor go to either local or international supplier with 30 to 40 ton volume
it will be expensive because price will be set on individual ton as it is less in quantity. What we
do we go to the party and state our requirement which is around 200 to 300 tons of volumes and
on the basis of huge volumes we get a very a good price. Afterward we allocate those volumes to
our individual converters e.g. 30 ton belongs to converter 1, 50 ton to converter 2 and it goes
further on until all is allocated. If it is an international party the converter opens LC and if it’s
local converter directly purchase it. The benefit we get that we cover 70% out of that 80%. We
are controlling the suppliers by helping them buy less expensive material.

Another important thing that we do we negotiate with our suppliers on conversion cost.
Annually we sit and discuss issues like inflationary effects, utility expense, labor cost etc for
the year. We negotiate hard and set the final conversion cost for the year. It addresses 15%
or 20% of the components.

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EXPORTS:

English Biscuit Manufacturers (Private) Limited is a producer of high

quality biscuits in Pakistan. It caters not only to the wide requirements
of the domestic market but also exports its products to USA, Canada,
UK, UAE, Bahrain, Djibouti, Saudi Arabia Mauritius, Sudan and
South Africa. English Biscuit Manufacturers exports its products in
special sea worthy packing to keep its products intact during and after
transit.

LEVEL OF UNCERTAINTY:

As we are sitting in FMGC the level of uncertainty could be either +100 or -100. Because on the
shop consumer decides which biscuit they want to buy. Supply chain officer said himself he had
never seen pre calculated buying.

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EBM’S SUPPLY CHAINS MANAGEMENT DECISIONS:

Supply chain management decisions are often said to belong to one of three levels; strategic,
tactical or the operational level:

STRA
TEGIC LONG TERM DECISION

LEVEL
TACTICAL
LEVEL

OPERATIONAL
LEVEL

MEMEDIUM TERM DECISION

DAY TO DAY OPERATION

STRATEGIC LEVEL:

 Alignment of overall organizational strategy with supply chain strategy to achieve

organizational objectives.
 Decisions concerned with the size, number, and geographic location of the supply chain
entities, such as plants, inventories, or distribution centers.
 To determine which products to produce, where to produce them, which suppliers to use and
to identify plants from which distribution centers are supplied.
 Development of information technology infrastructure to support supply chain operations
through planning and execution related applications.

TACTICAL LEVEL:

 Identification of sourcing locations, establishment of contracts and other purchasing

decisions.
 Inventory decisions including quantity, location and quality of inventory.
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Transportation s t r a t e g y including frequency, routes and contracting.

Benchmarking of all operations against competitors and implementation of best practices
throughout the organization. Decisions such as medium term production requirements
demand forecasting and staffing planning etc.
 Identification of new cost efficient markets for procurement of materials required for
production.
OPERATIONAL LEVEL:

 Daily planning of all related nodes in the supply chain. Demand planning and forecasting,
coordinating the demand forecast of all the customers and sharing the forecast with all
suppliers.
 Source planning, including current inventory and forecast demand, in collaboration with
all the suppliers.
 Inbound operations, including transportation from suppliers and receiving inventory along
with outbound operations including all fulfillment activities and transportation to customers.
Supply chain operations, including consumption of materials and flow of finished
goods.
 Performance tracking of all activities pertaining to supply chain.

During the last few decades we have seen an increasing rate of globalization. Products are no
longer produced and consumed within the same geographical area. The world has shrunk to palms
with the introduction of computer based business applications, internet and e-procurement
concepts, thus changing fundamental assumptions about business in terms of challenges
and opportunities.

Organizations operating in today’s business are required to understand these new

phenomena’s and respond quickly to ever changing global requirements by seeking maximum
benefits out of available technological developments to achieve their business objectives. Since
in today’s world only “survival of the fittest is the rule of the game.

One word to describe supply chain of EBM is “EFFICIENCY” in 4M’s man,

material, machinery and method.

By Senior Manager,

Waqas Jalil

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