Supply chain of Shezan Tomato Ketchup

Presentation

Supply Chain Management

Institute of Administrative Sciences(PU)

Group Members

Hafiz Muhammad Nauman-04Afzal Gill-12Hafiz Ali Raza Khan-18Madiha Arshad-13Azeem Abbas-07


Shezan International Limited is a Private Limited Company, with the main objective to set up an industrial undertaking for manufacturing of juices, squashes, sherbets, jams, pickles and preserves from fruits and vegetables. Shezan International Limited was conceived as a joint venture by the Shah Nawaz Group of Pakistan and Alliance Industrial Development Corporation of U.S.A. Today Shezan is the largest food processing unit having developed and installed the capacity to meet the country's local as well as export needs.

Introduction


Mission statement

“Our mission is to provide the highest quality fruit and vegetable related juices and products to retail and food services customers. We will accomplish this by maintaining a tradition of pride in our products, growth through innovation, integrity in the management of our business and commitment to team management and quality improvement process.”


Vision

“To be known as leader of quality products in the region. Dedication to quality is a way of life at our company. In its activities the company will pursue goals aimed at the achievement of profitable business .these results will be derived from the dedicated efforts of each employee in conjunction with supportive participation from management at all levels of the company. To pay its role in the economic development of the country and to enhance quality of life of its people”


Competitive strategy

Shezan has the highest production capacity as compared to its competitors. Shezan is very strong name and can afford to have super production facilities.Shezan international is using cost leadership strategy in which all of the efforts are made to minimize the costs and to provide the masses with your low cost product. Shezan with this strategy is quite successful in the market and is able to cope up with the competition quite effectively and efficiently.


Raw material

Fresh tomato's Water Soybean oil Food starch-modified Sugar Whole eggs Salt Vinegar Phosphoric Acid less than 2% Lemon concentrate Natural flavor


Supply Chain

Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. Supply chain comprises of all the activities necessary for making and delivering the product to consumers. A basic model of supply chain can be seen in the following diagram.


Cycle View of Supply Chain Process

Figure 1-3


Why Focus on Supply Chain Management?

Improve return on investment

Improve product availability

Net profit = Net profit x Net sales

Total assets Net sales Total assets

Reduce Costs! Increase Efficiency!Reduce Costs! Increase Efficiency!

Adapted from Levy and Weitz


Zone of Strategic Fit

Figure 2-5


Push vs Pull System

What instigates the movement of the work in the system?

In Push systems, work release is based on downstream demand forecasts Keeps inventory to meet actual demand Acts proactively

In Pull systems, work release is based on actual demand or the actual status of the downstream customers May cause long delivery lead times Acts reactively


Efficient & Responsiveness

Efficient

Responsiveness


Drivers of Supply Chain Performance

Efficiency Responsiveness

Inventory Transportation Facilities Information

Supply chain structure

Drivers


Transportations

Company have more than hundered vehicles to convey their finished goods to retailers and distributors.

Transportation mode is good due to high quality infrastructure.

All distributors are responsible for transportation.

For international delivery company used container from manufacturing unit to Karachi port

For local delivery company used trucks and containers.


Facilities

Direct distribution. Company used direct distribution METRO HYPERSTAR AL-FATEH SHEZAN BAKERS Indirect distribution. Distributors are responsible for other retailers


Information systems

The use of information systems has become increasingly important in today's world. Companies need to have the best set of information systems and professional to fully benefit from it. A good information system can provide company with a competitive advantage. Shezan currently uses software like excel, SPSS and some features of oracle software in their research and development. Apart from this they have a computerized system for their inventory control and production handling.


- - - - Merchandise flow Information flow

Buyer

Vendor

Stores

Distribution center

Customer

Sales info

Information and Merchandise Flows

Source: Levy and Weitz


Information Flow

Source: Levy and Weitz


Conclusion

Supply chain of shezan company is very good because they have hundred of vehicles for delivery their product

They have efficient supply chain strategy. They produced tomato's on their own forms. So the

quality of ketchup is very high They have very fast information system so due to good

information system they could manage their inventory of raw material very good manners

According to our analysis shezan have a very good and efficient supply chain.


Supply chain of Shezan Tomato Ketchup

Marketing

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