Group Member’s

S.No Name Roll#

1 Kamran Khan 1156

2 Tamkeen Ahmed 1108

3 Syed Waqas Shah 1115

4 Zubairuddin 1140

Presented to : Mr. Asad Nizamani

Group: “A”

Subject : Supply Chain Management

Slide 1

Objective:-

To highlight the features of Supply Chain in TAPAL (Pvt. )Ltd.

Over View:-

Our purpose is to discuss the function that perform the TAPAL with respect to Supply Chain

Slide 1

Kamran Khan

Introduction:-

In 1947 Tapal started business as a tea leader .

Tapal is a well known company in Pakistan .

Today Tapal has become the largest & 100% Pakistani owned tea in this country .

Founder is Mr. Adam Ali Tapal & currently managed by Mr. Aftab F. Tapal (MD) .

Modern Tea blending & packaging factories and warehouses with state-of-the art

equipment & a team of highly dynamic professionals .

Mr. Aftab F. Tapal was the first who invent .

Slide 2

Kamran Khan

Vision:-

Tapal look forward to greater progress & innovations in the year to come & committed to provide the people of Pakistan with only the highest quality product and improve their lives in what ever little way possible.

Mission Statement:-

Our mission statement is to benchmark for quality, creativity and ethical values to a diverse consumer base of varying backgrounds by building on our ability to provide customers with superior, differentiated product solutions via continuous assessment of the market need we serve & to maintain close and direct contact with our customer through consumer insights and dedicated services.

Long Term Objective:-

Customer Satisfaction

Quality

Brand Loyalty

New Product Development

Slide 3

Kamran Khan

T a p a l D a n e d a r

Tanveer Kamran

Slide 6

Market Share of Tea Beverages

Branded 60%

Unbranded40% Branded

Unbranded

Kamran Khan

Slide 4

T a p a l D a n e d a r

Tanveer Kamran

Branded Tea Share in Market

45%

20%

25%

10% Tapal

Supreme

Lipton

Others

Slide 5 Kamran Khan

Market Analysis

Tapal Product’s

        

 

Danedar Leaf Blend

Mezban Super Dust

Jasmine Green Tea

Special Round Teabags

Gulbahar Green Tea

Chenak Kenya Dust

Family Mixture Safari Kenya Leaf

Special Teabags

Tezdum

Slide 6

Kamran Khan

Management Of TAPAL

Aftab F. TapalC.E.O

Mohd. MiabhoyC.O.O

Mahmood NanjiC.M.O

Haroon RashidG.M Marketing

Ayyaz Ali KhanG.M Sales

Mohsin M. SaifyG.M Tea & Blend

Mohd. ShabbirG.M Supply Chain

Syed Zafar AliG.M Admin.

Own AliG.M Finance

Anjum PervaizG.M Projects

Arshad SohailG.M Prod. & Quality

Imran Ali KhanManager HR

Slide 7

Kam

ran K

han

Supply Chain Management

Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption

Slide 8

Kamran Khan

Role of SCM in TAPAL

ERP implemented

Close relationship with supplier

Flexibility

Slide 9

Kamran Khan

Supply Chain River Of TAPAL

Slide 10

Kamran Khan

Importing raw tea

Manufacturing

Packaging

Distribution

Retailers

Consumers

Ware Housing

Integration of Supply Chain Management

Slide 11

M. Zubair

GM SCM

PLANNING LOGISTICS PROCUREMENT MATERIAL MAGT.

INPUT SALES

OPERATION PLAN

TRANSPORTATION

RAW TEA

PACKAGING

MATERIAL

CONTROLLING

MATERIAL

The supplier selection process

Identifying potential suppliers

Drawing up a shortlist of suppliers

Choosing a supplier

Get a quotation

Compare potential suppliers

Negotiate terms and conditions

Slide 12

M. Zubair

Supplier Evaluation

Supplier Audit Supplier Visit / Surveys Supplier Previous History Getting Information from Company’s Consultants

Slide 13

M. Zubair

Purchasing Information Gathering

Supplier Contact

Background Review

Negotiation

Fulfillment

Renewal

Slide 14

M. Zubair

Types of Purchasing

RAW Tea

Packaging Material

MRO (Maintenance Repairing Operation Material)

Slide 15

M. Zubair

Purchasing Procedure

On every Wednesday the suppliers obtain samples to get

them tested and if they are approved, the purchase is

finalized through an auction. Tea samples are tested

through laboratory tests as well as are sent to Pakistan in

order to check the atmosphere and environmental effects

on the type of tea.

Slide 16

M. Zubair

Packaging Material

Packaging material is purchase from the local supplier

GADUN AMAZAI

REHMAN PACKAGES

BEST PACKAGES

PACKAGES LTD.

FAZLI SONS

Slide 17

M. Zubair

Filter paper that is used in making tea bags is imported from Italy, MYSA is the supplier for that filter paper.

Filter papers for teabags are imported because of unavailability of local manufacturers and suppliers for teabags.

Purchase of Filter Paper

Slide 18

M. Zubair

TAPAL’S Logistic

TAPAL divided the logistic in two types

according to nature and work.

Warehouse to warehouse

Warehouse to distributor

Slide 19

M. Zubair

Production Planning

TAPAL divided in two region South in North:

Production plan is floated on each Wednesday for the next

week

Production Unit 3 (2 Karachi, 1 Rawind)

Slide 20

S. Waqas

Production Planning and control

Capacity planning (machinery)250 MT : 3 factoriesKHI Unit 1 : 50 MT approx.KHI Unit 2 : 125 MT approx.RWD Unit 3 : 75 MT approx.

Capacity of the production units in KHI factory 1 with 8 machines = 50 MT approximately factory 2 with 30 machines = 125 MT approximately

Slide 21

S. Waqas

3 shifts – A , B & C Morning – 08 hours Evening - 08 hours Night – 08 hours

CYCLE TIME TO PRODUCE A PRODUCT 1 Minute -120 Sachets 1 Minute - 55 to 60 soft pack hard pack 1 Minute - 18 to 20 pouch

Slide 22

S. Waqas

Production Planning and control

Inventory Management

Inventory is a list for goods and materials, or

those goods and materials themselves, held

available in stock by a business

Tapal using FIFO inventory system

Slide 23

S. Waqas

Inventory management and control

WAREHOUSING is considered by the management

15 days inventory can be hold 800 tons max. at KHI warehouse 200 tons max. at HYD 200 tons max. at SUK 100 tons max. at MUL 400 tons max. at RWD 50 tons max. at ISL

Dates matter as the selling mostly occur during dates

22nd to 10th of next month.

Slide 24

S. Waqas

Tapal's reason for keeping stock

Time

Uncertainty

Slide 25

S. Waqas

Warehouses of TAPAL

Slide 26

S. Waqas

Tapal has 6 Warehouses

Karachi Lahore Islamabad Sukkur Raiwind Multan

Order sheet submitted by distributor along with the pay order to Tapal as soon as the order is booked, a memo is sent to the concerned warehouse and the order is delivered in approximately two days subject to the location.

Slide 27

Ordering Process

S. Waqas

Distribution

Tapal has a distribution network spread across Pakistan from Karachi to Khyber with over 400 distributors.

86 distributors in Karachi only.

Competition with Unilever lead to further strengthening the distribution network.

Sales force - DSR - order bookers, van drivers.

Margin to distributors 2%--4%

Slide 28

S. Waqas

Core Competencies

Production planning strong

FIFO Implemented

Low cost Leadership

Brand Image

Process are Refine

Slide 29

Tamkeen Ahmed

Key Performance Indicator

Machine Utility

Inventory Turnover

Production Rejection

On time delivery

Slide 30

Tamkeen Ahmed

SWOT

Strength of TAPAL

ERP Implementation Organized Integrated systemSCM ProfessionalEfficient Quality Department Brand Image

Slide 31

Tamkeen Ahmed

SWOT

Weaknesses of TAPAL

Don’t have Strategic Partnership with Supplier (Trends)

Radio Frequency Device is not implementedWeak Distribution in North Region

Slide 32

Tamkeen Ahmed

SWOT

Opportunities for TAPAL More Effective R & D J.I.T Implementation Expansion to new markets (Export).

Threats for TAPAL Environment and strike Legal Threats Competitor may implement JIT Local and global competition

Slide 33

Tamkeen Ahmed

Competitive Advantage

Low cost leadership

Brand image

Strong SCM

Unique blending formula

Strong Segmentation: different taste for every region.

Slide 34

Tamkeen Ahmed

Role of Government Agencies in Tapal

Rate of packaging material increased.

Tax increases on raw tea

Rapidly increase in Petrol & Diesel Prices which will increase the

transportation cost.

Movement of Heavy Transport after 12 at night which increase the

cost of production. Slide 35

Tamkeen Ahmed

ISO 9002 certified company TEA Department (testing tea at different stage) Before auction test Random sampling test

Slide 36

Tamkeen Ahmed

Quality Assurance of Tapal

MAJOR BENEFITS WILL BE ACHIEVED BY IMPLEMENTING SUPPLY CHAIN MANAGEMENT:

• Less wastage of raw materials.• Production department would focus only on production.• Materials are more standardized.• Effective utilization of resources like raw-material,

manpower, energy and capital resources.• Cost of production ultimately reduced.• SCM department will provides quality assured raw material

to production floor.• Supplier selection procedure will be easier.• Lesser wastage, shortened repair times and effectively

handled production delays, So cycle time will be automatically reduced.

Star

Slide 30