Logistic optimization and supply chain feasibility of Engro foods limited
Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Project Coordinator (Internal)
Dr. Nasir Afghan, Asad Ilyas
Engro Foods Limited
MBA Research Project
Abstract / Summary
Engro Foods Limited Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Milk production in Pakistan has seen a constant increase during the last two decades and this has finally translated into a mushrooming of newer entrants into the Milk Processing industry of this country in the new millennium. At Engro each business unit develop annual business plans to describe how their organization will contribute to the achievement of the strategic objectives. Preparation of business plans is contingent upon having adequate cost and performance data to make projections and establish measurable goals and targets. The specific objectives of our project are to ensure that our client carry out effective supply of its products aiming at having such a logistics system which maximizes the customer service and minimizes the distribution cost. Identify those activities which are of no value or of less value but expensing more to the company. At present, EFL’s logistic expense is 1.2 billion rupees. EFL has two plants in Pakistan where juices, milk, ice cream, flavoured milk, powder milk and ghee are manufactured - Production capacity of Sukkur plant is 0.4 to 0.5 million liters / day, which is primarily used for making juices, flavoured milk and small SKUs, whereas Sahiwal plant is run on economies of scale its daily running capacity is 1 to 1.1 million liters. For distribution and storage of the product EFL has put up three warehouses, two of them are at plant sites, whereas third one is at Islamabad. To achieve the objective of this project we visit all the sites of Engro Foods Limited, including Sahiwal, Sukkur and Islamabad. It was very imperative for us to pragmatically visit all the warehouses, docks and logistic related operations to identify the loopholes in the system. After deep analyses and study of the current practices of EFL we proposed some suggestions which will not just reduce the logistic expense of EFL but also reduce the customer order filling time thereby increase the customer service level.
Hussain, M., Ahmed, O., Rana, S. A., & Asim, S. M. (2012). Logistic optimization and supply chain feasibility of Engro foods limited (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/41
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