Supply Chain Management

Group members

Fahad Ur Rehman Khan

Daniyal Faiq

Humais Zakai

Momin Junaid

Hassan Ali

Farid Chugtai

Submitted to

M. Faisal Mushtaque

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ACKNOWLEDGEMENTS

Starting with the name of all mighty Allah who has helped us in completing this report his blessing has helped throughout in completing this report. We also want to

acknowledge the manager of Facilities Corporation who had allowed us to visit the department of supply chain and also provide us the information about the supply chain.

We also wanted to acknowledge M Faisal Mushtaque lecturer of supply chain management whose guidelines became fruitful in completing this report.

TABLE OF CONTENTPage | 2

S.No Page

1. INTRODUCTION……………………………………………………………..……………..…………4

2. Supply Chain Process……. ...……………………………………… ………....………….……............4

3. Organizations Product line………………………………………………………..…………..………...4

4. Procurement……………………………………………………..………………..…………..………...8

5. Logistics system and Tools…...………………………………………………………..…………….....5

6. Supply Chain Model...……………………………………… ………………………............................9

8. Conclusion….…………………………………………………………………………....................... 13

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INTRODUCTION

The name of the company describes that it is a service provider industry based on logistics. This company mainly focuses in the shipment but it deals with all type of transportation. Facilities

shipping agency opened their business in 1995 having aim to provide the high standard of goods forwarding service started their business with in a very small are of 400 sq.ft today after long

time struggle facilities shipping agency operating in much larger premises of 4000 sq.ft at M.T khan road with a work force of professionals throughout the major industrial stations including

Lahore, Faisalabad, Sialkot & Islamabad.

Now we are one of the biggest service provider industries in Pakistan and we are not only providing services in Pakistan but we are connected with more than 50 countries and more than

600 inlands destination world wide.

SUPPLY CHAIN PROCESS

ORGANIZATIONS PRODUCT LINE

There is no specific product line of our industry because it is not a manufacturing industry but the task and duties that we perform to fulfill our customer needs can be included in our product line those .the product line can be claim as the shipment , air ways.

SEA FREIGHTOur shipment can be said as one of the product because it depends upon the customer to what he is giving preference if there is no urgency or time specification then the product can be delivering through shipments. We also have to identify the nature of the product that of which nature the product is i.e. it can be transfer through shipment or not.

AIR FREIGHTAir ways can be considered as another product because if product is demanded on the phenomenon of efficiency then the product has to be delivered through airways. And if the goods are specific i.e. the nature of the goods they cannot be transfer through shipment so we have to use other mean of transportation.The main area that we focus is our ocean side but keeping in view the increase of demand of our v.i.p customers. As an international air transport association (IATA) agent we have certified our airfreight division through market professionals who are expert in performing their duties which results in increase of customer orders from the

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globe. No matter which size of good or what kind of commodities you are having our professional’s teem will keep it at right place using right tools and keeping it secure.

MOVER & PACKERMoving and packing of different products can also be included in one of the product line of our industry we also pack the goods according to its conditions its features and also help in moving from warehouses to warehouses and also deliver the product through afghan transit trade (ATT)

WAREHOUSING AND DISTRIBUTINGAnother thing that can be including in our product line can be the warehousing and the distributing of the products. Our most of the ware house are at the dock which is easy to transport and some of them are at the airport so that goods can easily carried to the shipment and to the aircrafts.We also distributes the product when we import the goods they are stored at the warehouse and after then they are transmit to their desired position. The products are kept in the warehouse by the process of racking and chafing.

HANDLING AIR & SEA CARGOHandling air and sea cargo can be said as another product of our industry because handling air and sea cargo is not an easy task. So this task is also accomplishing my industry all the taxes and legal task are performed by our industry. This is also helpful in gaining customers importance and also helps in getting in achieving the competitive edge over the customers

CENTRAL DISTRIBUTION CENTER

Our industry is worldwide shipping industry so our central distribution unit is in the Dubai because it is the economic hub of the world so our most of the decision are taken from the Dubai. Another reason is that the Dubai is full of business and there is large amount of import and exports on the regular basis

LOGISTIC SYSTEM

Logistics can be define as the making the product available for customer as quickly as you can also fulfilling the demand of the customer it includes the process from raw material to finish goods and delivering those finish goods to the customers . All the processes in delivering those products to the end user can be included in the logistics.

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SOFTWAREOur industry is associated with much software but one of the top most important and used software is red berry software this software helps in providing solutions for both international and domestic freight forwarding. This software was introduced in 1979 in United Kingdom (UK), gradually this software is now becoming as a sign of standard for an organization and this software is associated globally in service industriesNow this software has introduce a new software known as freight forwarding software to provide complete flexibility and visibility of procedure and is also used for financial control at all stages of freight movement

TRANSPORTATIONMost of our transportation are done through air ways and shipment so our transportation is based on responsive and efficiency that to what thing the customer are giving preference i.e to the time or to the safety on those basis we decide to use the phenomenon of responsive and efficiency.We are also using r.f.i.d and tracking devices to facilitate our customer we provide customer a code, by the help of that code customer can identify that at which point his product is at the moment and at what condition it is in.

WAREHOUSEWhen we are concerning about logistic the importance of logistic cannot be neglected and also the distribution of products from ware house. Facilities shipping agency put their high concentration to these aspects of supply chain for this reason we have a team of high expertise to meet the high standard of their product as per customer requirement. We are providing dedicated and shared operations to ensure that you can deliver your services promise to your customer worldwide.Facilities shipping agency also provides the best ware housing for such customer who wanted to transport their goods on afghan transit trade (ATT) on regular basis. Also we provide ware houses to most of the companies also for china transit trade.

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PHASES OF SUPPLY CHAIN

The phases of supply chain is basically depends upon the supplier, manufacturer, warehouse, distributer, retailer, customer. But in case of our industry it is service provider industry so we have to only four factor in it the supplier, manufacturer, warehouse, and customer. These are further elaborated below

SUPPLIEROne of the main and important phase of supply chain is the supplier but in our industry the client is our supplier because they give an order to supply good or to import good. So after receiving the order i.e. to supply goods or to import goods we started to work on that.

MANUFACTURERAfter receiving order from the supplier the manufacturing process take place. In this process we load product from warehouse and load it in our vessels or in air craft and take those products to their desired destination. These products are transferred on the basis of efficiency and responsive phenomenon and also that to give v.i.p customer most importance.

WAREHOUSINGWarehouse can be said as the art of store useable products to amplify the sub categories of the stock keeping units. After going through the phase of manufacturing the product is now entered in the phase of warehousing before reaching to its desired destination products are kept in the warehouse of the facilities. In warehousing the racking and chafing phenomenon are considered.Our industry have both the bounded ware house and private warehouse.in bounded ware house most of those item are kept which are to be export or are imported. In those warehouses our industry helps in paying the duty and after paying the product is released.After bounded warehouses products are now transferred to private warehouse where they are kept on the base of space utilization and the capacity planning. After that by the help of cross docking product is now delivered to customer.

CUSTOMERIn our industry customer can be said as the retailer or distributer because our finish product the goods are now delivered to the customer who import that goods or for whom the goods are exported. But before the goods are delivered to the customer they have to go through the phase of bounded warehouse where the custom check the products and charge the duties. After paying the duties the product are kept in the private warehouse

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of facilities and after that the product is delivered to the customer through one of the mode of cross docking.

PROCUREMENT:

Our industry is a service provider industry so the procurement process can take place between the supplier and the manufacture (service provider) in which there can be the product order product specification or can be contracts related to products or the bid evaluation and the finalization of goods can come in the procurement process because on the basis of specification we have to elect the product and has to deliver.

We have to elect the product keeping in view all resources i.e. we can take that specific product are the product legal or not are the product is to dangerous for society and some other aspects we have to consider after that we have to procure the product.

REPLENISHMENT CYCLE

After surveying and getting information about Facilities Company we find that according to us there is not as much replenishment cycle in this industry and it will only be occur between the distributer and the ware house since the product is imported and kept in our ware house so if there is deficiency found then they will acquire the desired quantity of the product. But that product will be kept for the certain time period on the rental basis.

CUSTOMER ORDER CYCLE

The last cycle that took place during this process is the customer order cycle is to fulfilling the demand of the customer so the product after going through these cycle the product which was sent by our client is now reach to our ware house and they are delivered to the customer by the process of cross docking and fulfilling the demands of the client may give competitive edge over the competitors. There the maximum truck strategy can be applied to provide the desired product to the customer.

Supply Chain Models

Page | 8Online orders

Cross docking

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Clients

shipment

suppliers

Ware house

airways

Transport

clients

Clients

Clients

Ware house

clients

clients

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Clients Q100

Shipment 30,000/Q100

Online orders

1lac/Q100(R) 1.5 lac/Q100(E)

suppliers

Ware house 20,000/Q100

Airway 60,000/Q100

Transport

clients

Ware house 20,000/Q100

clients

clients

Cross docking

Clients Q100

Clients Q200

FOR RESPONSIVE WE ARE EARNING PROFIT OF 30,000

FOR EFFICIENCY WE ARE EARNING PROFIT OF 50,000

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Clients Q100

Shipment 30,000/Q100

Online orders

1lac/Q100(R) 1.5 lac/Q100(E)

Ware house 20,000/Q100

Airway 60,000/Q100

Transport

clients

Ware house 20,000/Q100

clients

clients

Cross docking

Clients Q100

Clients Q200

suppliers

IN-BOUND LOGISTICS

OUT-BOUND LOGISTICS

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Clients Q100

Shipment 30,000/Q100

Online orders

1lac/Q100(R) 1.5 lac/Q100(E)

Ware house 20,000/Q100

Airway 60,000/Q100

Transport

clients

Ware house 20,000/Q100

clients

clients

Cross docking

Clients Q100

Clients Q200

suppliers

ManufacturingSuppliers

Procurement

Warehouse Clients

Capacity planning

Customer order cycle

Logistics

Inbound / outbound logistics

CONCLUSION

Facilities shipping agency is using logistics and implement all the aspects of supply chain in their model. They are the service provider industry they depend on the demand of the customer. They provide their services to the clients. But in some rare cases the natural incidents arrive as such

bad weather so they implement the lead time phenomenon this brought products before the delivery time and kept in the ware house they also kept extra duration so that they can deal with

any conditions.

They also have to satisfy the customer needs so that they create a positive image on the customer and also have strong binding with the customer. Because customers are the source of marketing they also give importance to VIP customers. If customer requires less time for the product we

use air shipment for efficiency. For customer maximum satisfaction we apply lead time effect to face every situation by keeping extra days for the shipment of products.

There is not much bull whip effect occur in our organization but in some cases this technique is used in those condition if we assumed that all vessels of different shipping agency are full and are sailed to their desired destination so in that condition we use maximum truck load strategy

We also increase our vessels so that we can earn a great amount of revenue and can earn customer satisfaction.

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