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INTRODUCTIONEnglish Biscuit Manufacturers (Private) Limited was established as a jointventure company in 1965 with the name of Peek FreansPakistan LimitedEBM provide Pakistani consumers with nutritious andhygienically packed biscuits of the highest quality.The brand name Peek Freans is a household name, andpeople trust and believe in the quality of the products producedunder this brandEBM is also the first biscuit company in Pakistan to have achievedISO - 9001 Certification in correspondence with its institutionalslogan The Legend Leads.EBM is also the only food company to have been awardedEnvironmental Excellence Award for seven successive years 2004 to 2010 AROOBA AZAM
OVERVIEW OF THE ORGANIZATION VISION: •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 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 believe in leading and innovating in all aspects of business.
EBM’S MAJOR SUPLIERS:EBM’S major suppliers are:•Habib sugar mills.•Millac and Saima packaging.COMPETITOR:The major competitor of English biscuits isCONTINENTAL BISCUITS (LU), which has asignificant share of the market in terms of sales volume.LU basically has five to six brands which it markets vigorouslyin comparison to English Biscuits Manufacturers.
EBM’S SUPPLY CHAIN MANAGEMENT STRUCTURE: STRUCTURE PROCUREMENT OR WAREHOUSING SOURCING DOMESTIC RAW PACKAGING FINISHED IMPORTS MATERIAL MATERIAL GOODS PROCUREMENT STORE STORE STORE DIRECT MATERIAL INDIRECT MATEIAL RAW PACKAGING MATERIAL HIRA SHAHID KHAN
EBM’S SUPPLY CHAIN MANAGEMENT PROCESS: RAW MATERIAL SUPPLIER RETAILER COMPONENT SUPPLIER DISTRIBUTION PRIMARY WAREHOUSE MANUFACTUREREBM’s supply chain process is comprised of a series of interdependent steps and starts with thecollection of raw materials and ends with packaged brands on customers shelves.The supply chain at EBM comprises the following areas:•FORECASTING:Forecasting is a vital element of the business, and can be defined as an unconditional statementof demand of biscuits.
•PLANNING:The function of planning is to convert marketing forecasts intomanufacturing plans.•MANUFACTURING:The manufacturing process at EBM involves the conversion of raw andpackaging material into finished product .EBM production takes placeat 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 aimof maximizing the profit of the firm.•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 ordersto a customer. EBM has more than 350 distributors all over Pakistan. BEENISH KABIR
•THE CONSUMER /SHOPPER:The shopper and consumer are the individuals who eventually buy andconsume EBM’s products.MARKETING & SALES DEPARTMENT: EBM is very much concerned about its marketing as it is the backbone ofits sales. EBM does advertising through different media channels whichinclude TV commercials, Radio, Magazines etc. Furthermore, EBMhas more than 350 distributors all around Pakistan.SALES FORECAST:In EBM, sales forecast for the coming month is provided before the end ofcurrent month and sometimes forecast of two additional months isprovided in advances.PRODUCTION PLANNING:On the basis of sales forecast production department will start production planning.MANAGEMENT RESOURCE PLANNING (MRP):The MRP process help the sales department provides reports forecasting future orders.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.In short we got requirement, raise purchase orders and material isavailable to us by our suppliers.QUALITY ASSURANCES DEPARTMENT:EBM, has developed a Quality Assurance & Development Department.The basic function of this department is to check and maintain the qualityand standards of raw material used.Four Labs are currently working at EBM, for checking and testing purpose.•Construction.•Analytical Lab (Centre of Excellence C.O.E )•Packaging Lab•Microbiological Lab•Process Lab SAHAR KHAN
Waqas JalilMIS (MANAGEMENT INFORMATION SYSTEM) DEPARTMENT:EBM is an ERP (Enterprise Resource Planning) based Organization. All the departments arelinked with each other through networking called INTRANET. A central database has beenmaintained at EBM where the information related to Payables, Receivables, Fixed Assets,and Inventory etc. are saved.LEAD TIME:The lead time of every product of EBM is different from other products.FOR LOCAL PRODUCTS:On an average the lead time of local manufacturing products is 21 to 25days, it may extend to a maximum of 30 days depending on theirrequirements.FOR IMPORTS:In case of imports the lead time is about 2 to 4 months. For differentorigins and different products lead times will be different.
EBM’s SUPPLY CHAIN STRATEGIES:•Monitoring local and international pricing, comparing them, findings synergies andswitching 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 2The buying at EBM takes place at two tier level. Tier 1 is our supplier. Tier 2 is our suppliersupplier’s. We monitor international and national prices. Converters are the one who arepurchasing us (SC department) do not have any money involvement in it. But the decisionis our, we decide the price point of material. Another important thing that we do wenegotiate with our suppliers on conversion cost. Annually we sit and discuss issues likeinflationary effects, utility expense, labor cost etc for the year SAMREEN LODHI
EXPORTS:EBM exports its products to USA, Canada, UK, UAE, Bahrain,Djibouti, Saudi Arabia Mauritius, Sudan and South Africa.LEVEL OF UNCERTAINTY:As we are sitting in FMGC the level of uncertainty could be either +100 or -100. Becauseon the shop consumer decides which biscuit they want to buy
EBM’S SUPPLY CHAIN MANAGEMENT DECISIONS: Supply chain management decisions are often said to belong to one of three levels; strategic, tactical or the operational level: STRATEGIC LONG TERM DECISION LEVEL TACTICAL LEVEL MEMEDIUM TERM DECISION OPERATIONAL LEVEL DAY TO DAY OPERATIONSTRATEGIC LEVEL: Alignment of overall organizational strategy with supply chain strategy to achieveorganizational objectives.•Decisions concerned with the size, number, and geographic location of the supply chain•entities, such as plants, inventories, or distribution centers. DOULAT MALIK
•To determine which products to produce, where to produce them, which suppliers to useand to identify plants from which distribution centers are supplied.•Development of information technology infrastructure to support supply chainoperations through planning and execution related applications.TACTICAL LEVEL:•Identification of sourcing locations, establishment of contracts and other purchasingdecisions.•Inventory decisions including quantity, location and quality of inventory.•Transportation s t r a t e g y including frequency, routes and contracting.•Identification of new cost efficient markets for procurement of materials required forproduction
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 forecastwith all suppliers.•Source planning, including current inventory and forecast demand,in collaboration with all the suppliers.•Inbound operations, including transportation from suppliers andreceiving inventory along with Outbound operations including all fulfillment activities and transportation to customers.•Performance tracking of all activities pertaining to supply chain. 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, Waqar jalil