Supply Chain Management

Final Project Submitted To: Sir Ashiq Abbasi Submitted By: Ahmed Hasan (01-211062-005) Fakhar Zaman (01-211062-024) Hammed M. Mushtaq (01-211062-026) Mir Usman Iqbal (01-211062-036) Bahria University of Management and Computer Sciences

Table Of Contents Noble Packs Carton Makers....................................................... ..................................4 History and Owners Experience................................................... ...............................5 Mission Statement............................................................... .......................................6 Products........................................................................ ..............................................6 Supply.......................................................................... ...............................................7 Manufacturing................................................................... .........................................8 Manufacturing Process:.......................................................... .................................9 Pasting Machine................................................................. ....................................12 Rotary Machine.................................................................. ....................................13 Slotting Machine................................................................ ....................................14 Pin Machine..................................................................... ......................................14 Distribution.................................................................... ...........................................15 Customers....................................................................... .........................................16 How to choose Customer:......................................................... .............................16 Sample for Customer............................................................. ................................17 Supply to Customers............................................................. ................................17 Customer Order Process Diagram.................................................. ...........................18 Information Handling and Decision Making........................................ ......................19 Decision Making................................................................. .......................................20 Company s Information and capacity Contents....................................... .................22 Information Handling:........................................................... ....................................22 Flexible Machines:.............................................................. ......................................23 Distribution Network:........................................................... .....................................24 Manufacturer Storage with Direct Shipping....................................... .......................26

Response Time................................................................... ...................................26 Product Variety................................................................. .....................................26 Product Availability............................................................ ....................................27 Customer experience............................................................. ...............................27 Time to Market.................................................................. ....................................27 Order Visibility................................................................ .......................................27 Return ability.................................................................. .......................................28 Inventory....................................................................... ........................................28 Transportation.................................................................. .....................................28 Facilities and Handling......................................................... ..................................29 Information..................................................................... .......................................29 NOBLE PACKS STORAGE WITH DIRCT SHIPPING......................................... ...............30 Our Experience.................................................................. .......................................31 Recommendations................................................................. ...................................32

NOBLE PACKS CARTON MAKERS .

It is a customer driven company. cartons and rolls. Also supply of raw materials and semi prepared product is done. HISTORY AND OWNERS EXPERIENCE .Noble Packs Carton Makers factory is located at Lahore in Farooq Industrial State at Ferozpur Road Lahore. The main working of this factory includes manufacturing and trading of the finished goods i. It was established 1997.e.

After that orders started coming from the spinning mills and garment factories.Noble Packs was founded by Nazar Hussain in 1997. The others are closed due some lawsuits and other problems. slotting and pin machines. Competitive Prices and Prompt Delivery' PRODUCTS . Rotary machines. MISSION STATEMENT Providing 'Quality Products. Excellent Service. Out of the functional factories 700800are the most active competitors but NOBLE PACKS edge is the quality of the services and the product. they shifted to Lahore. After learning all the major field aspects he started working on his own at a rented place with two machines for carton making. 2 pasting machines. After retiring from the Pakistan Army. The company now owns 2 corrugators. Over 2600 carton making factories are setup in Lahore out of which 1700-1800 are functional. There are a lot of competitors. For first three months. After 6 years the company bought its own place and started working there. the company received no order from any company. One of their friends advised him to visit another friend s factory who taught them the carton making art and its workings. The first order was from the Rice mills for 400 cartons.

NOBLE PACKS manufactures cartons from the size of an iron to a Refrigerator hence making it possible to make any types of cartons. Australia.e. Different types of papers are water proof and non water proof also representing different type of quality. seven ply corrugated cardboards to accommodate any shipping needs. cartons as well as semi manufactured material called rolls. Die-cut Boxes. A carton is made from 3-7 ply s depending upon the customer s request. Their main products: Corrugated Cartons (RSC) of all sizes and types. triple ply. as said earlier being a customer driven company. Pined Boxes. Main suppliers of paper from outside Pakistan are Brazil. Paper Packaging Products. Outside covering of carton is done by imported paper while inside covering is done from the home made paper. Paper reels are imported that are on a later stage of manufacturing converted into rolls.Noble Packs manufacture single ply. It supply s according to the customer needs. The paper used to make cartons is of both imported and internal. They have different flutes to satisfy any specific requirements. Various types of papers are imported from various suppliers. SUPPLY The company supply s finished goods i. also cartons can be printed with gr aphics in 1 to 2 colors printing and screen printing. five ply. Italy etc. Sweden. double ply. .

The papers imported from other countries are delivered to their Distribution Centers mainly situated in Karachi. The rent is divided among both the parties as per decided in the contract. NOBLE PACKS owns all these machines that s why it supplies both finished and the semi manufactured product i. pasting and rotary machines. 20 factories or more have no corrugator. And the circulation continues every month after that with 20000 cartons. MANUFACTURING The manufacturing process includes corrugators.e. rolls to those factories or companies who don t own corrugators for rolling function. Different types of raw materials are used as per instructions provided by the customers. . rolls are bought and the respective company itself makes it into cartons by processing making NOBLE PACKS more efficient as it only manufactures half of the product and then sells it to buyers for other processing. that s why they directly take the rolls from NOBLE PACKS.Customer demand is always known so production is done in reaction of customer needs. The semi manufactured product i.e. Also products delivered to the companies are delivered with rented trucks. Like any company for the first time asks for 30000 cartons although it needs only 20000 cartons and keeps 10000 as safety inventory in case if NOBLE PACKS is unable to provide due to any problems. slotting machine and Pin machines. Certain customers are on-going customers always places order once in a month when their inventory needs replenishment. After that the papers are acquired in accordance to their need in the factory through trucks.

The company owns 2 corrugators. Rotary machines. the company can produce more than 400000 carton rolls and cartons. slotting and pin machines and has the capacity to produce cartons of any size as well as any quantity. . 2 pasting machines. For instance. However if the workload is more the company hires extra staff to lessen the load. MANUFACTURING PROCESS: The first step involved in the manufacturing process is done by the corrugators as shown in the Figure below.

. paper reels into rolls making them 2 ply or 5 ply s as required by the customer.e. starch adhesive. Two paper reels circulates at one time and are joined together by sticking them together by adhesives like sodium silicate. The two paper reels are pasted together with the help of the corrugator.The corrugator converts the raw material i.

.PASTING MACHINE The pasting machine pastes the two ply s made by the corrugator with a third paper thus making a paper roll. If the customer wishes to have a carton made up of 5 or 7 ply s then the same 3 ply carton rolls is pasted with another 2 ply roll from the corrugator and so on if needed. This is a 3 ply carton.

Similarly 10 of length and 10 of width multiply by 2 plus 2 is done as carton is in a cube shape that s why we multiply it with 2 for finishing. (10 + 10) x 2 + 2 . 10 meter of width and 10 of height then 10 of height and 10 of width plus an extra 1 meter is added for fine finishing. It consists of horizontal and vertical bending.ROTARY MACHINE The Rotary machine bends the carton paper according the size desired by the customer. width and height. its length. Three things are kept in mind while determining the size of carton. Also the waste paper is cut in the rotary machine. For example if the size of carton is 10/10/10 meaning 10 meter of length.

The use of pin machine depends upon customer order. After passing through all these machines the cartons are sent to the printing press for the printing of the cover of the product that needs to be put into it. The covers format is given by the customer company to the printer press. PIN MACHINE As the cutting of the paper and their corrugation is in the form of sheets. . They prefer some glue material to attach the both sides of sheets.Length Width Extra paper for finishing SLOTTING MACHINE It eases the bending and is also used to cut the bends. Some customers do not want pin in their carton. the Pin machine is used to fold that sheet and convert that sheet in box shape cartoon by suture the one side of sheet with other one.

DISTRIBUTION NOBLE PACKS does not have any Distribution Center. That same truck won t be used for making delivery to Gujranwala but trucks that are available for Gujranwala region will be hired. Thus by delivering directly to its customers. Separate locations have separate truck rentals for example if any order comes from Sargodha Mills. The customer places an order for cartons or rolls and the company sends it directly through trucks to factories for packing or more processing in case of roll supplying to those factories who cannot make rolls themselves but can do further processing needed after roll making. Trucks for different locations are present for hiring. trucks making deliveries from Sargodha to Lahore are hired as they also have to go back to Sargodha and don t want to go empty. NOBLE PACKS have created a very good Customer Relation as well as goodwill for its good quality of cartons. As it is situated in the heart of Industrial area of Lahore. it can supply directly to its customers from the factory. . it s up to them whether they want their cartons to be delivered monthly. The trucks are rented for making deliveries. Distribution cycles are also determined by the customers who want to continue their supply monthly like if a company wants 20000 cartons. It acts as a retailer also because it directly sells its product to its customers. weekly or daily basis.After printing the cover the carton is fully manufactured and delivered to the required customer and the contract is finished.

Different Companies and factories have special need of diverse size and shapes of cartons. If Noble packs can provide them with a better quality pro duct with low cost then they would love to do business with them. HOW TO CHOOSE CUSTOMER: The first thing they do is get a list of all the companies. After receiving the customer orders. The personnel from . the manufacturing process starts.CUSTOMERS Customers being the most integral part of supply chain. firms and factories that use corrugated cartons. Then the marketing starts. If anyone is interested in Noble Packs. Customer orders are fully satisfied by making an accurate sample of their desired product design. The customer s of NOBLE PACKS based on pull strategy. Product designs depends upon the customers. they provide them with samples ei ther printed or plain so as to tell them that this is the kind of product they are ge tting at this particular price. Main customers of NOBLE PACKS are as follow: · KOHINOOR SPINNING MILLS · CHAKWAL SPINNING MILLS · BRIDO COSMETICS · PHARMACEUTICAL COMPANIES · ELECTRONIC GOODS MANUFACTURERS NOBLE PACKS value their customers by being more responsive and efficient. they visit each location and give them a brief introduction about their product. then ask them to try Noble packs.

SUPPLY TO CUSTOMERS Customer orders are delivered according to terms and conditions as decided in contract. Large containers are usually hired for this purpose as cartons need unique temperature.Noble packs then bring the samples to the factory and then the samples are analyzed. the manufacturing process for the whole order starts. SAMPLE FOR CUSTOMER NOBLE PACKS makes the samples of customer desired order and then after confirmation of the sample from the customer. Terms and conditions are initially decided and then adapt them in written form. Delivery charges decided by both the parties according to contract. If the sample is approved the order is then given to Noble Packs. Customers are selected by first negotiating with them about their desired design. The samples a re then examined and approved by the clients after testing for bursting power etc. Financial matter regarding customer orders decided in this phase. . The testing is done by applying pressure to the samples to check how much weight the y can carry and at what level they will burst. The factory provides the clients with some samples so they have an idea of the product that will be delivered to them along with a quotation.

LOCAL IMPORTED PAPER RAW MATERIAL SUPPLIERS NOBLE PACKS Manufacturers & Distribut CUSTOMER ORDER PROCESS DIAGRAM WAREHOUSE S CUSTOMERS (INDUSTRIES and FACTORIES) .

Some of 0ther Major clients of Noble Packs are: . Funds are also flowed by NOBLE PACKS and the supplier delivers the product i. . Grease . their products are highly recommended an d adopted by many national and international corporations. funds and product is done in all the stages of the supply chain. Information infrastructure involves direct communication with its suppliers and to whom it is supplying. Proper planning is done before the company has to make decisions regarding new investments like producing huge orders or buying new machinery for increasing capacity of the facility. toys. the raw material (reels). NOBLE PACKS focuses on both being responsive and cost efficient. Flow of information. Vimto . Fruit Exporters INFORMATION HANDLING AND DECISION MAKING Proper organization of information is done. Information is provided to the supplier when an order is placed for raw materials acquisition. food & drink and etc.Noble Pack s customers come from a varied range of industries including electrical.e.

how. road). Who will pay the rent? If shared. its most loyal customers. material acquisition orders are all done on paper basis and in writing so that proof can be provided if any fault occurs.Contracts. NOBLE PACKS maintains its information system on single computer based database system which includes the company s all classified information relating its assets. where. what is the product needed and also tells the price it is willing to pay for that order and product. purchase orders. The . budgets both current and forecasted. DECISION MAKING The company s decision making is done with the consent of its financial managers. lawyers. how much. labor union heads and the Chairman itself. order information. If the company is thinking of taking a huge order of making cartons a meeting is called of all the above mentioned people and opinions are taken. financial statements. The flow of information. Negotiations are done if any changes have to be made for any aspect of the supply chain as which delivery system must be used (air. product and funds when NOBLE PACKS acts as a supplier is when the customer places an order for cartons or semi manufactured product. what will be its division? All this information is flowing through the supply chain during a single transaction. The customer provides information that when. And product is afterwards delivered to the desired location.

financial manager provides information whether the company has the financial resources to cater such an order. The maintenance of the factory and its machinery needs proper weekly decisions which enhances the life of the machinery. NOBLE PACK also makes decisions in respect of purchasing the raw materials from different suppliers. NOBLE PACKS thinks several times in order to align their manufacturing process and order fulfilling date. Inbound transportation of raw material and about the space required for the raw material in the factory. NOBLE PACK pays special attention in making . The labor union head provides information whether the labor number is enough to do the job or not. In decision making. He prefers the warehouses in the perimeter of factory which decreases its extra capacity cost. If not more skilled labors are hired for the specific job. The decision about facilities are also made by the NOBLE PACKS owner. These decisions are in accordance with the financial basis as established by the Chairman. Important decisions were made for timely fulfilling of customer orders which increases the NOBLE PACKS popularity in the market. the lawyer makes the contract and check if there s any unwilling clauses in the contract or any ambiguity that can make negative consequences. This means the NOBLE PACKS also behaves like a customer when making transactions with its suppliers. Noble packs makes decisions when it is behaving like a customer about paper quality from suppliers. All the decision making is done on the basis of having a proper information infrastructure and proper planning which NOBLE PACKS does not lack.

rotary and pin machines. COMPANY S INFORMATION AND CAPACITY CONTENTS The company is situated in Lahore s Farooq Industrial State at Ferozpur Road. INFORMATION HANDLING: . Rotary machines. two pasting machines. This machine plays the role of all corrugators. All these machines perform separately to make end product i. cartons.decision regarding with its budget in which yearly budget is being made which included all the expenses and revenues of the firm. pasting. It can meet any orders of any number of cartons. The company also owns 1 machine that performs the function of making cartons in just 1 place.e. It consists of two corrugators. The facility s capacity is to produce any number of cartons from the size of an electric iron to an air split or refrigerator. And all these decisions are made by the owner of the Noble Packs. slotting and pin machines. The facility has the capacity to produce unlimited cartons provided that there is time.

Information is passed to low level employees by managers about the working. FLEXIBLE MACHINES: As mentioned earlier carton for electric iron to refrigerator can also be made as machines have flexibility of changing the length of cutting and pasting. . According to factories law.All the information is handled by company manager as guided by the chairman. Information regarding customer s orders is completely operated by chairman of the NOBLE PACKS. any production facility or factory must have a green corner in its premises so NOBLE PACKS also have a green patch inside its premises.

DISTRIBUTION NETWORK: .

Customer orders are delivered through trucks from the warehouse. The customer needs that are met influence the NOBLE PACKS revenues. NOBLE PACKS evaluates the impact on customer service and cost as it compares different distribution network options. which along with cost decide the profitability of the delivery network.NOBLE PACKS distribution network is highly responsive and efficient because customer orders are fulfilled timely. In this Option. we focus on these measures that are influenced by the structure of distribution network which is distributor storage with carrier delivery. NOBLE PACKS saves its warehousing cost as warehouse is located in the factory. Although customer service consists of many components. Distribution network of NOBLE PACKS is Manufacturer storage with direct shipping and manufacturer storage with direct shipping and in-transit merge. Inventory is held with the Noble Packs in warehouses which is located in the premises of factory. . The raw material came from supplier is kept in factory warehouse and process along the manufacturing as per order of the customer.

PRODUCT VARIETY NOBLE PACKS capacity of making different product for different customers provides large product variety. One of another advantage which NOBLE PACKS have is that the retailer and agents level is also owned by them. Information flow from the customer. It depends on customers to tell NOBLE PACKS which type of variety they want. to the NOBLE PACKS. product is shipped directly from the NOBLE PACKS to the end customer.MANUFACTURER STORAGE WITH DIRECT SHIPPING In this option. The biggest advantage of drop-shipping is the ability to centralize inventories at the NOBLE PACKS. thus complicating receiving. RESPONSE TIME The response time of NOBLE PACKS by this distribution network is not so faster because it has only one warehouse which is in the premises of factory located at Lahore and also Response time may vary from product to product. Which results in the accurate inflow of information and accurate manufacturing according to that information. . and the product is directly shipped from the NOBLE PACKS to the customers. via the retailer or agent. Because cartons are made in 3 -7 ply.

ORDER VISIBILITY It is more difficult for NOBLE PACKS to visible the location of order but also it is very important from the customer services prespective. then it can quickly show it to their customer because already the link between customer and NOBLE PAKCS. TIME TO MARKET If Noble packs designs some new kind of carton. . But it is note good if customer requirement for carton is very high so the other manufacturer is needed to fulfill customer requirement.PRODUCT AVAILABILITY It is easy for NOBLE PACKS to provide a high level of product availability Because of aggregation at Noble packs. CUSTOMER EXPERIENCE It is very good in terms of delivery to the customer s place.

TRANSPORTATION NOBLE PACKS has high cost of transportation because of increased distance and disaggregate shipping. Which higher the cost. The description is as follow. So there is no need to open other facility which increases the inventory cost. As we wrote in our project that different order comes from different customers which is fulfilled according to the terms and conditions decided first. And if any order is given to 26th or 27th. . NOBLE PACKS sends it transportation for order which is given at 20th of the month.RETURN ABILITY As NOBLE PACKS manufacture only customized products by showing the sample first. Then the transportation would be according to that time. If any one of the order would be returned then it is very expensive and difficule for NOBLE PACKS to implement. again the transportation will move to fulfil l that order. This distribution network of NOBLE PACKS also effect the cost factors. By this there are very rare chances for return ability. For example. So different customers have different time of fulfilling order. INVENTORY NOBLE PACKS inventory cost is very less because of aggregation of inventory at warehouse which is located in the boundary of factory.

. So there is no need to do significant investment in information Infrastructure to integrate NOBLE PACKS and its retailers.FACILITIES AND HANDLING NOBLE PACKS has lower facility cost because of aggregation of inventory at the warehouse located in the factory. And much of the information handled by the NOBLE PACKS itself. Some saving on handling costs if NOBLE PACKS can manage small shipment or ship from direct production line. But this wont happens because there are too many orders to fulfill and handling of warehouse for these orders increases the handling cost. INFORMATION NOBLE PACKS information infrastructure is quite good because the agents and retailers belongs to NOBLE PACKS.

NOBLE PACKS STORAGE WITH DIRCT SHIPPING NOBLE PACKS Manufacturers Agent/Retailer of NOBLE PACKS Customer CUSTOMER PRODUCT FLOW INFORMATION FLOW KOHINOOR SPIINNING MILL BRIDO COSMETICS .

It gave us a real world .OUR EXPERIENCE This project was a wonderful way for us to understand the importance and basic concepts of the subject being applied in practical life.

g. marketing etc. We are grateful to our teacher Sir Ashiq Abbasi for assisting and supporting us whenever needed and also giving us such a wonderful opportunity to understand and explore a different side of the business. human resource management. This shift will help the company in fast production by producing large orders in less time making the client more satisfied and responsive. The recommendations are: As all the Manufacturing process is being done by manual labor. It was a very interesting and learning experience as we never thought what actually goes behind making a product. The company should hire some Marketing expertise for it to expand nation wide according to the owner the finance is not the problem. the company should now move toward Automation process by training their employees the skills and techniques. There are so many nitty gritty details to analyze that it is difficult for one to understand if one has not seen and analy zed the process in person. the .experience to help us in better application of what we have learned regarding th is course and other management courses as well e. RECOMMENDATIONS After thorough analysis of Nobel Packs we came up with some recommendations which will help the company to excel.

. The company is young so it needs to think over these issues mentioned above in order to grow and become more active in the market.problem is to go in the market in search of clients so this problem is be solved by hiring marketing force which will help the company to get new clients and increase their business in terms of both Manufacturing as well as trading.

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