Client Name

Lipton Teas and Infusions

Faculty Advisor

Dr. Mohsin Zahid Khawaja, Assistant Professor, Department of Finance

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

In terms of thought leadership, our project closely aligned to Investment decision making.

Our work went beyond simply analysing historical data as we applied forward looking techniques and data informed models to help Lipton make smarter and efficient decisions.

For example, by developing a forecasting model for TTS (Trade Term Structures) and SG&A expenses, we provided the finance team with insights into future cost trends, allowing them to proactively adjust pricing and production plans. Moreover, through the Power BI cost optimisation dashboard, we transformed raw data into a visual format providing knowledge to stakeholders in real time allowing for quicker responses to changes. Similarly, by cleaning and aligning material codes under the MOTI hygiene process, we addressed a longstanding operation inefficiency. By identifying the inactive materials tying up working capital, we enabled more accurate procurement and production decisions. Therefore, our ELP showed how finance can also drive transformation across the organisation through reduction of waste and strengthening of controls, leading to more adaptable and forward thinking solutions.

Aligned SDGs

GOAL 12: Responsible Consumption and Production

Aligned SDGs Justification

This ELP directly supported the SD 12 responsible consumption and production by focusing on resource optimisation, cutting down on waste and encouraging responsible and informed decision making. Through our work, we aimed to minimise losses and create a more sustainable operational framework. An example of this was the SKU liquidation activity where we identified products nearing their expiry dates, stock which would otherwise become waste, and redirected them through an internal discounted sales.

Moreover, our fuel misuse flagging activity identified anomalies in vehicle diesel consumption. These deviations and the analysis of their root causes allowed Lipton to cut down waste and strengthen controls against fraud. These initiatives also show how financial discipline and data-backed controls can help drive meaningful change, allowing the organisation to become more efficient in a rapidly changing environment.

NDA

No

Abstract

Our Experiential Learning Project (ELP) with Lipton focused on identifying cost-saving opportunities and maximizing Earnings Before Interest and Taxes (EBIT). We examined the impact of three critical departments: Customer Development (CD) Finance, Supply Chain Finance, and Selling, General & Administrative Expenses (SG&A). The primary objective of our project was to contribute toward operational efficiency and financial optimization within Lipton’s value chain in Pakistan.

The project was structured around a data-driven, analytical approach, incorporating both internal data review and stakeholder consultations to assess key cost elements and revenue drivers. To suggest practical recommendations for expanding market penetration, we set out to evaluate the influence of trade investments, advertising initiatives, and distribution efficiency. We also looked at how inventory management, procurement procedures, logistic costs, and vendor dependability affect us and found several chances for cost savings via better forecasting, leaner processes, and maybe supplier renegotiations. Regarding SG&A, our attention was on administrative overheads and resource usage; benchmarking of best practices and recommendation of workflow optimization to increase corporate agility.

Through close collaboration with Lipton’s teams, this project not only delivered practical solutions for cost optimization but also deepened our understanding of real-world business dynamics in the fast-moving consumer goods (FMCG) sector. We provided recommendations that included streamlining supply chain operations through leveraging digital tools for sales forecasting and automating routine SG&A functions to reduce operation burden. These recommendations aimed to enhance Lipton’s EBIT by cutting nonessential expenditures.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

Download

Share

COinS