Quantitative Methods in Production & Logistics Submitted to: Sir Arsalan Zahid Group Members: Sumair Memon 27030 Umair Aziz Memon 26978 Abdul Aziz 25673 Misbah 25449 Shams-us-Zaman 28238 Introduction It all began in the year 1966; the year that saw the advent of a biscuit company then named Peek Freans Pakistan Limited. But no clairvoyant could have predicted that it would be this very company which would go on to become the country's leading manufacturer of biscuits. Over 48 years down a well-traversed road, the company now known for decades as English Biscuit Manufacturers (Private) Limited, or EBM, has come a long way. But this is no arbitrary rags to riches tale based on good fortune alone. EBM's journey to success has been paved with consistent adaptability, tolerance, and conservative financing. Brands EBM revolutionized the concept of biscuits in Pakistan with its mouth-wateringly diverse portfolio of healthy and tasty biscuits under the Peek Freans umbrella. EBM transformed biscuits from an extravagance to a daily must-have. 50 years on, EBM has once more innovated to expand its domain most deliciously: The Cake Up range offers four delightfully flavored cupcakes, centerfilled with real goodness inside! Internationally acclaimed as a Super brand, the Peek Freans brand symbolizes wholesomeness and inspires trust in consumers. Below are the divined brands that EBM offers with SKUs such as Pouch, Snack Pack, Half Role, Mini Half Role, Ticky Pack: Sooper Choco Bites RIO Click Gluco Saltish Jam Delight Peanut Pik Butter Puff Pista Pik Sandwiches Party Chocolicious Marie Whole Wheat Cake Up Farm House Cookies Smile Donut Nan Khatai Sooper Soft Cake Corporate Vision To be the leading food company, delighting and nourishing consumers with superior products and services; while leading sales, shares and profits, thus allowing people, community and stakeholders to succeed. Corporate Mission To provide wholesome, nutritious, hygienic food-between-meals across Pakistan and beyond. Corporate Values Never compromise on quality, the four values that define us as a company form the center of our practices Leadership – To be the pioneers of change Innovation – Continue to innovate in every area, Vitality – Add and maintain value to lives Humanity – Extend to uplift lives of the most deserving people. Owners (Shareholders) Profile Mr. Khawar Masood Butt Founder of EBM and First CEO of EBM Dr. Zeelaf Munir CEO & MD of EBM Dr. Saadia Naveed Deputy MD of EBM Organization EBM has built its structure on marital basis with focus on being the best in food category across nation and beyond Organizational Structure For a successful organization, the most important factor is how the activities are going to be carried out in order to achieve its goals. Similarly, EBM outlines its structure by implementing the strategy to carry out the task’s distributions, supervision and coordination successfully under well qualified profiles. Situation Analysis Corporate Strategy To be the leading food company, delighting and nourishing our consumers with superior products and services, while leading sales, shares and profits, thus allowing our people, community and stakeholders to succeed. To provide the wholesome, nutritious, hygienic food between-meal across Pakistan and beyond. The four values that define us a company form the center of our practices i.e. Leadership, innovation, vitality, humanity. Brand’s Market Share According to Nielsen Survey, EBM as whole, enjoys over 45% of market share across nation, producing some of the divine biscuits. Its Sooper brand generates almost half of the company’s revenues. Competitors Analysis Competitor research is a critical part in the success of an organization. EBM’s marketing department analyze its topmost competitors and research their products closely to figure out what different their competitors are opting for, and then passes information to R&D department to research for new product and come up with an innovative solution in their biscuits in order to overthrow competitors to reach at the top. In Pakistan, EBM faces competition from some of the biscuits manufacturers below as mentioned below: 1. 2. 3. 4. 5. LU - Continental Biscuits Bisconni Mayfair Rupali Foods Lotte Kolson 1. What steps firm has taken to bring digitization in the supply chain? Organizations are turning more towards digitization which is the current need of the world to live in and keep the footprints into the market to survive. Since COVID19, organizations are interested more on adopting digitization and are planning to invest in technology driven supply chain. Similarly, English Biscuit Manufacturers is also one of the organization that are driving towards the new norms of the world after COVID. A few steps that the firm took to bring digitization into the organization are: 1. Ending a physical paper based contracts with suppliers. 2. Bringing in systematic contracts. 3. Integrating EBM’s production requirements (production plan) with vendor’s production facility in order to identify real time need of material for better transferring of data so as to allow vendor to manufacture and deliver the material required on time. 4. Booking bulk orders for minimum of six months instead of 2 months in order to avoid material shortages. 2. During the COVID19 times, what specific strategies have been deployed to avoid or mitigate the COVID 19 supply chain related disruptions. COVID 19 has obviously affected the whole world and every industry. Similarly it has also affected the Supply Chain Management in EBM Manufacturers. However, with the help of proper communication, implementing strategic approaches timely and teamwork support, major anticipated disruptions were catered. EBM Manufacturers lies under the category of essential items therefore the production was not abruptly stopped but yet reduced the production quantity. The schemes were designed to mitigate/avoid the impact of COVID 19 disruption with respect to Production and Planning department. With respect to Production, material booking, ordering was the main concern. The key strategy was regarding fulfillment and maintain continuous flow of material required to continue the production/operation process. To avoid its disruptions, EBM Manufacturers identified which of the suppliers can produce required material in bulk and provide immediately. The suppliers who were able to provide greater amount of material within shortest possible time, EBM contacted such suppliers and negotiated to make long term yearly systematic contracts. Similarly, Planning team in coordination with production, implemented the strategic approach by revising the material requirement plan and besides, considering the lead time of imported material, made advance buying, long term booking. The normal lead time other than COVID 19 was 2 months which extended to 4-6 months in the COVID 19. The material requirement was revised on monthly basis and recalculated and monitored critical based on previous month consumption. The challenges that were met are dealt efficiently were the revising of plans continuously based on forecasting on simple moving average and ordering the material considering the delay in lead time and capacity of suppliers. For example, for the raw material import, initially in the first month 2 containers not received but sooner in the 4th month, 4 containers received combined which lead to develop excess inventory in the store and ultimately affected the cash flow. However, the demand was met properly and did not affect with COVID disruption. 3. Specify the results of the actions that have been made through the specific strategy. Since EBM manufacturers falls in FMCG sector it was one of the few industries that were able to keep their production on during difficult times of COVID. EBM was able to continue its production through-out, although it did take effect as production was slowed down due to unavailability of workers and other regulations during COVID times. Although there was demand uncertainty throughout the times which was taking hit in forecasting correct material shortages, EBM was able to keep the raw material shortage with better planning strategies as mentioned above. The main idea was continuity of production for which supplier selection was very important and having a supplier who can supply as per demand with lesser lead time helped them to have continuous production throughout. This was from the procurement department; they even provide relevant resources to the designated supplier to ensure there is lesser risk of shortage while production. Advance buying of import item helped the organization to negate the risks that could have been faced in peak times of COVID. Advance ordering even helped import suppliers to buy their raw material in advance. This strategy helped build up long term inventory in the toughest times. This was only possible because Pakistan faced COVID after the world was hit. So, EBM planners had margin to arrange and implement such strategies. As per rapid change in demand it was important to see history for forecasting which helped in accurate shortage of raw material as maintain the inventory levels in factory was also a concern and not an easy task. But build up inventory only helped EBM in the times when there were container shortages all around the world. It helped EBM with fulfilling sales order and continuous production.
