Supply Chain Analysis of United Nimko

BY
Okasha Osama Paracha
53006
Umair Ahmed
53378
Zoha Afridi
54073
Urooj
53152
 • A comprehensive analysis of SCM activities of United Nimko
manufacturer.
• A well established nimko manufacturer with 30 years of
experience.
• Report aims to evaluate:
a) Organization’s sourcing
b) Manufacturing
Introduction c) Inventory management.
d) Transportation
e) Facility decisions
f) Technology utilization
 • By identifying deficiencies and providing recommendations, this
analysis seeks to enhance the overall SC efficiency and
profitability.

Cont. • The report aligns with the project requirements and aims to
provide valuable insights into United Nimko’s SC practices.
Organization and Product
Description.
• Started Business 30 years ago.

• Main shop at Masjid Road in Quetta.

• Built a strong reputation for producing high quality nimko snacks.

• Five other shops strategically located across Quetta city and an

additional shop in Islamabad, the company serve a wide customer
base.

• Specializes in manufacturing a diverse range of nimko products,

including Mix Nimko, Moong Daal, Chana Daal, Daal Moth, and
Daal Sew and many more.

• Products are known for their authentic flavors and loved by

customers of all age group.
Product Chosen – Nimko Snacks
• Mix Nimko

• A flagship product of United Nimko, is a tantalizing blend of crispy and crunchy ingredients. With a
combination of fried lentils, chickpeas, peanuts, and spicy noodles.

• Moong Daal

• Another popular nimko snack, features fried and seasoned split green gram lentils.

• Chana Daal

• On the other hand, showcases the deliciousness of fried and seasoned split chickpeas.
 Cont.
• Daal Moth

• For those seeking a bolder and spicier

option, Daal Moth is the go-to nimko
snack. This flavourful combination of
fried lentils and peanuts is expertly
seasoned with an assortment of spices.

• Daal Sew

• Lastly, Daal Sew is a unique nimko

snack that stands out with its thin and
crispy lentil flour noodles.
Overall Supply Chain
Activities
 Sourcing:
• Well-defined sourcing strategy for high-quality ingredients.

• Acquiring oil locally from Quetta and procuring key ingredients including
flour, spices, lentils from Karachi.

• To maintain quality standards, the company ensures the freshness of

ingredients by conducting sample checks before making purchases.

• Additionally, packaging materials are sourced locally to meet their

packaging requirements.
 Manufacturing:

• Manufacturing plants at Eastern bypass Quetta and in

Islamabad.

• Processing and transformation of sourced lentils,

chickpeas, flour, nuts and spices into crispy and
delicious nimko snacks.

• Steps: blending and mixing, cooking, and frying,

seasoning, and flavoring, cooling, and packaging.

• Advanced machinery and skilled workforce ensures

high quality nimko snacks.
Blending and Mixing

• The blending and mixing stage combines manual and

machine-assisted techniques.

• Meticulous attention is given to the ratios of the

ingredients used in the blending process.

• The goal is to achieve a consistent flavor profile

across United Nimko's nimko product range.
Cooking and Frying

• The nimko mixture is transferred to large ovens for

cooking.

• The ovens are set at controlled temperatures to

achieve the desired texture and crispiness.

• The cooking process is crucial in creating the

signature crunch of nimko snacks.

• After cooking, the nimko mixture is fried to

perfection, enhancing its flavor and texture.
Seasoning and Flavoring

• After cooking and frying, the nimko undergoes the

seasoning and flavoring stage.

• United Nimko adds a variety of seasonings, spices,

and flavors to create distinct taste profiles.

• This stage allows for customization based on different

product variations and customer preferences.

• The addition of seasonings enhances the overall flavor

and taste of the nimko products.
 Cooling and Packaging
• After seasoning, the nimko snacks are cooled to room temperature to
preserve their freshness and crispiness.

• The cooling process ensures that the nimko snacks maintain their
quality and taste.

• Once cooled, the nimko snacks are meticulously packaged in airtight

packaging to protect them from moisture and maintain their freshness.

• The packaging process includes labeling, sealing, and coding for easy
identification and traceability.

• Proper packaging is essential to ensure that the nimko snacks remain

fresh and retain their quality during storage and transportation.
Inventory Management:
• Relies on experience and demand patterns to
manage inventory.

• Production levels are adjusted based on anticipated

demand particularly during religious festivals when
demand typically increases, To avoid stock outs or
excessive inventory.

• By closely monitoring sales patterns and leveraging

their industry expertise, the company ensures a
continuous supply of nimko products.

• They typically reorder raw materials approximately

10 days before they are expected to run out,
minimizing the risk of disruptions in production.
Transportation:
• Transportation of raw materials and finished
goods is a critical aspect of United Nimko's
supply chain.

• Which includes their physical shop, attracting

customers through walk-ins, to transport
finished goods from their shops to other
businesses located within Quetta city.

• United Nimko employs its own delivery fleet,

which includes vehicles like Suzuki wagon and
other suitable vehicles.

• For the transportation of raw materials, they

rely on containers provided by trusted third-
party logistics firms such as Quetta Qadri
Goods.
 Cont.
• The use of these containers ensures the safe and
timely delivery of raw materials to the central
factory.

• Additionally, third-party logistic firms such as

Sadabahar and other reputable companies are
engaged for transporting finished goods to various
cities like Khuzdar, Qila Saifullah, Zhob, and
Ziarat.

• This multi-modal transportation approach enables

United Nimko to reach its wide customer base
efficiently.

• Also, the use of a combination of transportation

options ensures timely and efficient distribution.
Facility Decision:
• The company operates a centralized factory, strategically designed
to accommodate both production and storage requirements.

• Factory is equipped with advanced machinery and equipment,

allowing for efficient production processes.

• Each shop is equipped with a dedicated storeroom at the back to

store finished products, ensuring quick and easy access to
inventory.

• The company has also established a storage facility within the

factory premises on the Eastern Bypass in Quetta, as well as a
production facility in Islamabad to cater to the additional shop.

• These facilities are essential for maintaining optimal inventory

levels and facilitating timely deliveries.
Inventory Management,
Transportation, &
Facility Decision
Raw Material Inventory

• United Nimko's inventory management of raw

materials relies on experience and demand patterns.

• They reorder raw materials approximately 10 days

before they are expected to run out to minimize the
risk of stockouts and production disruptions.

• The company prioritizes sourcing raw materials from

suppliers that offer the best rates without
compromising quality.
Work-in-Process (WIP)
Inventory
• United Nimko maintains a continuous production flow
to minimize lead times and ensure a steady supply of
nimko products.

• This approach enables them to respond quickly to

customer orders and meet demand efficiently.
Finished Product Inventory

• United Nimko's practice of maintaining a backup

stock of finished products at the backroom of each
shop helps ensure product availability and meet
customer demand.

• This strategy acts as a buffer to overcome any

potential delays or challenges in the supply chain,
minimizing the risk of stockouts and customer
dissatisfaction.
Raw Material
Transportation
• United Nimko relies on trusted third-party logistics firms
such as Quetta Qadri Goods for the transportation of raw
materials.

• These logistics firms provide specialized containers that

ensure the safe and secure delivery of raw materials from
their respective sources.

• The use of reliable logistics partners helps United Nimko

maintain a consistent supply of high-quality raw materials
for their nimko production.
 Finished Goods
Transportation
• United Nimko utilizes their own delivery fleet, including pickups and other
vehicles, for the transportation of finished goods within Quetta city.

• By using their own delivery fleet, United Nimko has greater control over the
delivery process, ensuring timely and reliable distribution of their products to
other businesses within Quetta city.

• This direct delivery approach allows United Nimko to maintain customer

satisfaction by ensuring that products are delivered on time and in good
condition.

• For transportation to other cities like Khuzdar, Qila Saifullah, Zhob, and
Ziarat, United Nimko partners with third-party logistics firms such as
Sadabahar and other reputable companies.

• These logistics partners specialize in intercity transportation, allowing United

Nimko to efficiently expand its distribution reach beyond Quetta city.
 Warehousing Facility
• United Nimko operates a centralized factory that serves as both a
production and warehousing facility, allowing for streamlined
operations and efficient inventory management.

• The centralized factory enables United Nimko to consolidate

their inventory, reducing the need for multiple warehouses and
associated costs.

• In addition to the centralized factory, United Nimko has built

storerooms at the back of each shop. These storerooms provide
additional storage space for finished products, ensuring quick
access to inventory and minimizing stockouts at the shop level.

• The storerooms at each shop enable United Nimko to meet

customer demands promptly and ensure product availability on
the shop floor.
 Production Facility
• The centralized factory of United Nimko is the primary production facility for
nimko snacks.

• The facility is equipped with advanced machinery and equipment to support

efficient nimko production processes.

• The investment in modern production technologies helps United Nimko enhance

production efficiency and maintain consistent product quality.

• The layout and design of the production facility are optimized to ensure a smooth
workflow and maximize productivity.

• United Nimko has expanded its operations by establishing a production facility in

Islamabad, allowing them to cater to customers in that area and expand their market
reach.

• The expansion into Islamabad demonstrates United Nimko's commitment to serving

customers in different cities and meeting their demands effectively.
 Strategies for
Improving Profitability
Product differentiation

• Produces different quality products to cater to

customers with varying price preferences.

• By offering both low-quality and high-quality

products, they are targeting different market
segments and are capturing a wider customer
base, ultimately increasing sales and
profitability.
Cost Management

• Relies on experience and demand patterns to manage

inventory levels and production quantities.

• By aligning production with demand and ordering raw

materials 10 days before they are expected to run out,
they aim to avoid stock outs and excessive inventory,
thus minimizing costs and maximizing profitability.
Delivery Fleet

• The company uses its own delivery fleet,

including pickups and other vehicles, for the
delivery of products from their shops to other
businesses.

• By maintaining control over their delivery

process, they ensure timely and reliable
distribution, which enhances customer
satisfaction and repeat business, leading to
improved profitability.
Supplier Selection and
Quality Assurance
• United Nimko carefully selects suppliers for their
ingredients, such as oil sourced from Quetta and
lentils, chickpea flour, nuts, and spices from
Karachi.

• They prioritize the quality and freshness of their

ingredients by checking samples before making
purchases.

• This strategy ensures that they maintain high-

quality standards in their products, which leads to
customer loyalty, positive word-of-mouth, and
ultimately, increased profitability.
Centralized Factory
and Shop Storage
• United Nimko operates a centralized factory that
can handle both production and storage
requirements.

• They have also built storerooms at the back of each

shop to store finished products.

• By centralizing their operations and utilizing shop

storage facilities, they can efficiently manage
inventory, reduce costs associated with multiple
warehouses, and ensure product availability to meet
customer demand.
Technological Role
Technology Utilization

• POS software for streamlined sales transactions,

inventory management, and sales reporting.

• Use of modern machinery and equipment for efficient

production processes and consistent product quality.

• Communication technology, including cell phones, for

effective coordination and information sharing across
the supply chain.
Deficiencies and
Recommendation
s for
Improvement
 Lack of Technology
Utilization
• Lack of advanced technology and software systems hinders optimization of
operations and supply chain visibility.

• Consider investing in an inventory management system or ERP software to

streamline processes and improve data accuracy.

• Implementing technology solutions can provide real-time visibility into

inventory levels, demand patterns, and production schedules.

• Enhance forecasting accuracy and enable better decision-making using

technology.

• Embrace digital tools for communication, collaboration, and data analysis

to improve overall supply chain efficiency and responsiveness.
 Limited Forecasting and
Demand Planning:
• Limited reliance on experience and demand patterns for forecasting can
lead to suboptimal inventory decisions.

• Improve forecasting and demand planning capabilities by leveraging

historical data, market trends, and customer insights.

• Adopt demand planning software or collaborate with external experts to

enhance forecasting accuracy.

• Align production and inventory levels with demand forecasts to minimize

stockouts and excess inventory.

• Regularly monitor and analyze demand patterns to identify trends and

adjust forecasts accordingly.
 Inefficient Inventory
Management:
• Implement an inventory management system to optimize
inventory levels and reduce holding costs.

• Incorporate demand forecasting to accurately predict customer

demand and adjust inventory levels accordingly.

• Utilize order optimization techniques to optimize order

quantities and minimize stockouts.

• Implement stock replenishment strategies to ensure timely

availability of inventory and avoid excess inventory.

• Regularly review and update inventory policies to align with

changing market conditions and customer preferences.
 Suboptimal Transportation
Management:
• Implement transportation management systems or route optimization software to improve
delivery efficiency.

• Optimize routes and schedules to minimize transportation costs and reduce delivery lead
times.

• Utilize real-time tracking and monitoring systems to ensure timely and accurate delivery of
products.

• Collaborate with third-party logistics providers to identify opportunities for improvement in

transportation processes.

• Regularly evaluate and analyze transportation performance metrics to identify areas for
optimization and cost reduction.
 Conclusion:
• United Nimko has established itself as a prominent nimko manufacturer
with a strong presence in Quetta and Islamabad.

• While the company has demonstrated effective supply chain practices

through its sourcing, manufacturing, inventory management,
transportation, and facility decisions, there are opportunities for
improvement.

• By implementing recommended strategies, including the adoption of

inventory management systems, streamlining transportation processes, and
leveraging technology for demand forecasting, United Nimko can enhance
operational efficiency, meet customer demands effectively, and increase
profitability.

• These enhancements will position United Nimko as a leader in the nimko

industry while adapting to evolving market dynamics.
THANK YOU