1. SUPPLY CHAIN MANAGEMENT Report to Be Submitted To Sir “ANAS IFTIKHAR” By;
S.M.ARSALAN HUSSAIN (6141)
SYED MUHAMMAD JASEEM (5463)
MASOOD_UL_HUSSAIN RATHORE (5425)
MUHAMMAD RAFAY ALAM (6182)

2. 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 as Associated Biscuits International Limited
(ABIL), while the venture was renamed to English Biscuit Manufacturers (Private) Limited,
which stands to date.
EBM has led the biscuit industry in Pakistan for over 40 years by providing innovative and
high quality biscuits. It started manufacturing and marketing world famous Peek Freans
range in order to provide Pakistani consumers with good quality, healthy, nutritious, and
wholesome and hygienically packed biscuits.
The trade mark of Pied Piper made its mark about 35 years ago which is recognized as a
symbol of 'trust & confidence' for consumers and is true to its corporate claim, 'The Legend
Leads'.
With the help of their strategic vision and direction EBM has successfully transformed the
biscuit eating habits of Pakistani consumers by making biscuits more of an everyday
necessity and less of a luxury item.
English Biscuit Manufacturers (Pvt.) Ltd., or (EBM), are the pioneers of packaged biscuit
manufacturing in Pakistan and the country's leading manufacturer of biscuits and cookies
since 1967.
Company implements ISO Standard for safety, & Quality management.
Company Products: Sooper, Click, Rio, Party, Peanut Pista & glucose.
Company Objectives
 Improve the knowledge base of the cereal and baking technology
 Create awareness in people about hygiene and nutritional value of food
 Overcome the non-availability of the equipments for quality determination of raw
materials
 Bring our country on the top with a reputation not only for world class scientific and
technological discovery but also for turning that knowledge into new and quality
products and services.

3. EBM SUPPLY CHAIN
Minor & Major Purchasing Decisions & Who’s Responsibility
Head of supply chain take major decisions of purchasing and also responsible of giving
approval. For minor decision supply chain department members done all homework and
after that final authority will be of head of supply chain.
In other part if we are purchasing out of routine then we have to get the approval from the
Board of Directors. For supposed if we are given the approval to consume 10 Crore per
quarter but if due to certain extra purchases we get to consume more money which beyond
to 10 Crore then we are responsible for getting the approval from board of directors.
Company replenishes direct material and indirect material one time. All departments are
working collaboratively in finding the required material. For example if a company require a
new Ac then its technical team explain its configuration from where to buy which brand is
good for long term.
On this specification company select vendor and negotiate with vendor and allow material
to be available. We prefer supplier having low cost.
Functions of Outsourcing & Reasons
We outsource Warehouses, Logistics & Hiring Workers
Company has outsourced at two levels: Upstream & Downstream
At upstream level all material purchase through supplier is outsourced. For example we
purchase flour from supplier this is also outsourcing. Purchasing is all about outsourcing.
Company for example for a raw material rent a place for inventory management. Rental
place for warehousing purpose is also outsourcing because we store inventory there for a
time period. At Downstream level logistics is all outsourced. All transport dispatched are
outsourced. For example: Agile….
At organizational level all labor are outsourced. Company has different contractual workers
or timely workers having different degree of requirements .Contractual workers have
individual segment approval authority.

4. Difference Between Transaction & Alliance Partners
Dealings with Them
In Transaction Alliance Company done simple purchasing in which one purchaser and one
seller are involved. Company have no concerned about suppliers backup. Where as in
Alliance both company are mutually work together. Both company departments work
collaboratively. Relation totally depends on which volume company is doing business then
company interacts accordingly. Company are restricted to suppliers visit because we are ISO
certified so if company see any lacking from supplier then they rectify it &we matched our
environment with suppliers environment. Supply chain members are only allowed to gives
recommendation to suppliers then it will be supplier’s responsibility if any bottle neck
appear we explain it to suppliers that it should b problematic in future. EBM gives feeding to
supplier. Company maintains relationship where we have planned to purchase in high
volume.
View on Role of Power
Does It Influence Between Buyer & Supplier?
Power depends on which volume company is doing business. On these bases both parties
have more influence on each other. If we are doing business at low level then we will remain
flexible. Power actually exert on other party when one party have strong profile, more
capacity than other one.
Managing Alliance in Difficult Conditions
Some Comments on Situations Where Alliance Is Not
Appropriate.
Company is a part of supplier’s environment & operations so we have knowledge about
difficulties which can be come through suppliers. We have a good interaction with suppliers
if any difficulty occurs then we make new schedule or find another alternative . Alliance is
not appropriate when good are not received on time because it can damage your profile in
the market. Secondly there is always a risk of sharing important information with suppliers.
There is minimum chance of information to be saved in supplier’s merger. To deal with this
we arrange meeting in which we are talk with the royal supplier’s top men (a person who
have a strong profile) about the information safety. When a company making a new product
we use single a supplier source & for packaging material company use multiple supplier’s
source

5. Comments on ISO 9001 & ISO 14001 & Their Impact on
Industry
EBM are ISO certified. We are working on safety standard. Actually standard tells you the
way of doing business efficiently. For example if we are exporting then at export level
company must have ISO standard logo otherwise we will not be able to do exporting. It is
not a cost bearing element but kind of investment. We have a budgeted amount for
standard implementation.
Procedure of Issuing Purchase Order & Bidding
Elements Emphasized In
Procedure of purchase orders for example for direct material first we make plans for sales
volume. We buy quarterly by considering next two months. Plan are then convert into
packing material and raw material & according to plan we consider how much units are
required for the next two months then we lock it and see supplier capacity. Order depends
on supplier’s capacity. We give numbering to suppliers according to their profile. Suppliers
having more capacity are able to receive more order. Company decides on which type of
volumes are given to most capable suppliers. Then after doing this meeting is held with boss
who gives approval and then we make purchase order. Suppliers are informed about the
upcoming order so that they alliance things in their backup. Head of the supply chain decide
with whom to procure an on which volume.
Decisions on Procuring & Leasing New
Processes of Using Equipments
Company prefers purchasing of new equipment in comparison of old one. For example plant
machinery purchasing depends on need. All work has been done by technical team.
Marketing & Operation team alien what type of machine is required and after that supply
chain department and technical team are involved from where we have to buy the machine.
We make deal with seller of machine. We consider machine lead time, machine cost and
dispatch time before making final purchase of machinery.

6. Managing Inventory & Warehousing
Basically we manage inventory on sales. Company maintains cover stock. Just in time
approach is not applicable in manufacturing industry. It can be possible in single supplier
situation and where quality assurance not done inspection at arrival.
Transportation
At upsetting we mostly use containers but locally we use road transportation for example
Trucks
Ensuring Safety, Quality, & Timely Delivery of Products to
Customers
For ensuring safety & quality supply chain department visit suppliers to meet safety and
quality standards. For timely delivery of products we give schedule to suppliers on which
date we required material then suppliers confirm us delivery schedule if any lacking appear
they informed us and then we makes changes in schedule or switch to another supplier.
Basically first we have warehousing for goods & from that
Distributors Wholesalers Retailer Final consumer.
Increasing Effect of Price
In commodity base, we have yearly contract. While making a contract we assume prices. For
example if 2% increase in price then supplier cater the effect but if price increase more than
2% it will cater by the company but consumer are not affected by changes in price.EBM
major effort for dealing this started in 1996-97 to 2007, we decrease our profit margin but
we never increased the price of our products to get our customer price flexibility.

7. Make To Stock or Make to Order
In actual usually food items do not prepare at make to order (Its depend on the nature of
the product) so our company do not implement on this strategy whereas we work over
“Make to Stock” by seeing the past demands received by the market place
Most Interesting Event Whether Related To Wrong Or Right
Decision Of Your Professional Career.
Adeel Omar (Assistant Manager of supply chain) I have joint this company one & half year
back approximately but when I joined Tapal at that time production capacity were 10 tons
and at the time of my resignation it increased from 10 to 25 tons. Actually company make
huge invest in machinery for a long term and that was the interesting event for me. Event
related to wrong decision mostly occurred when we planned something and we never get
certain things according to plans.
And more decision our company taken is that we recently got breakup from our certain
supplier in which were used to buy sugar in the quantity of 5000 tons but due to his high
demand miss commitment, late supplying, bad behavior we have switched towards an other
supplier
Supply Chain Management According to Me
According to me Supply Chain Management became a Backbone of a company now days the
companies do not compete with other companies but one supply chain competes with
other supply chain. So, the companies involved in a specific supply chain are managed as a
single entity, not the separated ones.

8. Detailed Business Process Model In Form Of Flow Chart.
Business Process & Supply Chain Model Flow Chart
STRUCTURE
Procurement Or Warehousing
RAW PACKAGING FINISHED
Domestic Imports MATERIAL MATERIAL GOODS
Direct Material Indirect Material
RAW Packaging
MATERIAL

9. Conclusion
EBM is one the leading biscuit manufacturers in Pakistan merged with Peek Freens around
1960’s. Its a national company.
EBM famous product is Sooper biscuit. EBM has one more company in hattar. Product of
both company sales according to region wise. Sooper produces only in Karachi and cater the
largest sales volume.
Purchasing in EBM are all done with collaboration of other departments. Purchasing
approval is the responsibility of head of supply chain. Company outsourced all function at
upstream and downstream level. Company deals with transaction and alliance partners
separately. In alliance relation depends on volume of purchasing & in transaction simple
purchasing is done by supply members.
Company is ISO certified so they are restricted to suppliers visit. EBM have temporary and
contractual workers. Company makes early suppliers involvement in NPD. EBM is a strong
buyer in terms of power because company purchase in high volume from suppliers and have
strong profile in the market. Company issue purchase order for the most capable supplier or
supplier having more capacity.
Company manage inventory on sales volume. Company prefers purchasing and leasing of
new equipments with collaboration of different department like finance, marketing, supply
chain, and technical team.
Company use containers and trucks as transportation usage I saw agile containers there
during visit.
For meeting safety and quality assurance company prefer suppliers visit and recommend
suppliers for any kind of bottle neck can be appear in future. Company makes timely
delivery schedule for the continuity of products to final consumer. Company never wants to
compromise on quality in order to provide high quality biscuits to consumer. Company
decreases their profit margin in order to stable the prices. Companies have a good
interaction with their suppliers. In case of uncertainty both parties cater the lost and
manage their relationship in an efficient manner.
So this report can apparently show that EBM has a strong supply chain network with
collaboration of suppliers and their departments.