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Supply Chain Management at Engro Foods

THE ORGANIZATION

About Engro Foods

Engro Foods Limited

is subsidiary of Engro Chemical Pvt. Ltd. which is one of the most reputedenterprises in Pakistan with

more than 40 years of diversified business operations in the areas of fertilizer and chemicals. Engro

Chemicals, formerly known as Exxon, was taken oven by theemployees and reamed Engro. Since then, it

has diversified into many fields owning andoperating subsidiaries like Engro Asahi, Engro Vopak,

Engro Pak tank, Engro Chemicals andEngro Foods. Engro Foods started its business operations in March

2006 and it hasnt looked back ever since its inception.Within a very short span of 2 years, it has

become the house of four quality dairy milk brands: Olpers Milk, Tarang, Olwell, and Olpers cream.

Engro Foods hasalready set up two processing plants at Sukkur and Sahiwal.While research and

development, production, marketing and finance do play a crucial role in thesuccess of any company,

supply chain management is very crucial in stabling backward andforward linkages between the

company and its suppliers and its customers. Without supply chainmanagement, the company can not

ensure that the basic raw material reaches the plant and thenleaves the plant to the clients.

Why Engro Foods supply chain management process?

Dairy is one of the growing segment of livestock sub-sector and important component ofPakistans

economy. Pakistan is the fifth largest producer of milk in the world.. Milk productionin Pakistan has seen

a constant increase during the last two decades and this has finally translatedinto a mushrooming of

newer entrants into the Milk Processing industry of this country in thenew millennium. Engro Foods is

one of the latest dairy milk processing ventures along withShakarganj with its Good Milk. Thus the fact

that Engro is a newly established organization ina field where perishability of milk makes it imperative

for supply chain to be managed well,made this organization the hands-down choice for this project. A

new entrant and the challengesit has to face could be discovered this way.Another reason for choosing

Engro is the fact that this is one organization that has carefully planned and executed the supply chain.

This is evident from the fact that the milk processing plants are located in Sukkur and Sahiwal i.e both

the provinces of Pakistan. The dairy farmsmostly independently owned have been linked and aresuppliers of Engro that are closely locatedto ensure the supply of milk on time without any delay or

detriment to the milk. Thus it was onlynatural that an organization that considers supply

chain management as so crucial and actuallyworks hard to improve upon it was selected by us for the

term report