BAHRIA UNIVERSITY ISLAMABAD

Inventory Management
Industrial Visit to Zong Warehouse

Subimitted to: Dr Hafiz Mushtaq

Submitted by: Muhammad Ali (MS-SCM 2A)
Enrollment: 01-296152-011
Date: 23-4-2016

Introduction
Communication and information technologies are the foundation of the new global informationbased economy Advanced telecommunications networks and related systems, increasingly
permeate every economic sector and help business of all kinds. It enhances their organizational
efficiency and competitiveness while providing customers better goods and services at lower
prices.
The current global telecom industry, is going through a phase of turbulence after years of
stability, the situation is changing radically. The industry is facing number of challenges; the
most pressing one is opening of the telecommunication sector. It has led to evolve genuine
competition in many markets; the introduction of mobile, Internet together with other value
added services is rapidly creating new segments of market with very few similarities with the
traditional marketplace.
Pakistan mobile industry at the moment is experiencing growth explosion. Though the existing
players are trying hard to meet the growing demand still there is a huge amount of unmet
demand in the country as against the supply of connection by the operating mobile companies.
Cellular industry of Pakistan comprises of five companies namely, Mobilink, Warid, U-fone,
Telenor and now Zong. The core essence of ZONG is to allow people to communicate at will
without worrying about tariffs, network coverage, capacity issues or congestion. ZONG will be
supported by ground breaking communications, trend setting customer service and an unmatched
product offering which will redefine rules of the game and establish ZONG as a serious
contender for the number one spot. ZONG would offer its customers with entertaining &
innovative value added services and will empower them by giving a wide variety of products,
services & content to choose from.

Background of Zong
Paktel is a mobile telecommunication company in Pakistan. It was the first ever company
granted license to carry out cellular phone services in Pakistan, set up by Cable & Wireless. It
carried out AMPS services until 2004, when the company launched GSM services as well. Its

main competitor emerged in late 1990s as Instaphone and soon began to dominate the market.
However after the launch and rapid success of Mobilink in 1998, both services lost market share.
ZONG is the first International brand of China Mobile being launched in Pakistan. China Mobile
is the world's largest telecom operator. Having a customer base of over 300 million customers.
China Mobile is perhaps the only cellular network that provides uninterrupted, reliable coverage
through tunnels, on highways, inside sky scrapper elevators as well on top of Mount Everest.
One of the unique features of China Mobile servicing excellence is to customize its products,
services and tariffs to suit the individual needs of its huge subscriber base.

Company profile
Zong is the first International brand of China Mobile being launched in Pakistan. It is meant to
empower and liberate the people of Pakistan in every corner of the country. It aims to become a
part of their hearts, their minds and bring about a change in their lives that everyone desired,
regardless of their segment and location. The core essence of Zong is to allow people to
communicate at will. Without worrying about tariffs, network coverage, capacity issues or
congestion. Zong claims to be supported by ground breaking communications, trend setting
customer service and an unmatched product offering which has redefined rules of the game and
establish Zong as a serious contender for the cellular market. Zong aims to offer its customers
with entertaining & innovative value added services and empower them by giving a wide variety
of products, services & content to choose from. Zong has targeted the low and middle end
market. Initially they were least interested in very few elite class customers; instead they hit the
low end market.

MISSION STATEMENT:
To be the leading mobile operator of Pakistan by continuously innovating and offering
exceptional quality services; to be a good corporate citizen and envoy of friendship between
China and Pakistan.

ZONG VISION:
Zongs vision is to make communication exciting and become the leading mobile operator in
Pakistan.

Hierarchal structure
In Zong the hierarchy is very lean, in general the whole setup is centralized, all the matters are to
be reported to the main company and all the policies and targets are approved at the higher level.
But at the department level the structure is decentralized. The human resource of Zong is highly
skillful, educated and committed towards their work. Mostly people working in Zong are masters
in specialized fields. According to them their human resource is their biggest assets. Human
resource manager is responsible of handling any disturbances but small disputes are handled by
supervisors. A continuous training is conducted inside and outside the organization to improve
the skills of the employee.

SWOT Analysis

Product and its Packages

ZONG offers a wide range of new services to serve customers even better. Below is a brief
introduction of all these services.

12 Aanay Package.

50paisa/call

Free package

Zong super free num

Break time offer

Aik sec package

PEST Analysis:

Political factors:

The current situation of telecom in Pakistan clearly indicates the success of policies adopted by
the government of Pakistan in Telecom sector. China Mobile has already invested $500 million
in the country and has plans to invest more. It has made the largest investment among all the
Chinese investment in Pakistan.

Economic factors:

Marketers should consider long term and short term state of a trading market. Inflation is getting
uncontrolled and rate of unemployment is alarmingly high. Due to recession of the economy, the
turnover ratio is increasing as companies have no more capacity to hire the people.

Social factors

During the formation of marketing strategies, companies have to look after a lot of factors. Deep
study of local culture and social setups is also one of the major factors which account much in
successful strategy formation. The study of culture helps to understand the consumer behavior
and in turn assists firms to improve their marketing strategies: Zong has done wonderful job in
this perspective. Before entering into market It has done extensive research on the behaviors of
the consumers. By doing this their aim was to bring forth the latent desire of the people. It has
fulfilled the demands of students, middle class and elite class equally.

Technological factors

By using different technologies a company can have competitive advantage on others and now
companies are investing in their infrastructure not only to expand but also to upgrade their
existing structure.

OBJECTIVES OF VISIT
Zong warehouse has been visited in the mid of March in order to visualize the processes and
logistics management. Whether to maintain the high level sufficient stocks to conduct sales
activities without problems or who have low levels of stocks to reduce the costs of storage and
handling. To determine the location of stocks vs fast moving slow movement inside the
warehouse. Whether outsourcing of transport equipment is better or own vehicles against cost
factors is effective. The determination of the Company to enable security in a large inventory
system and inventory such. To get a better understanding of how the information from any
enterprise network system to improve work processes used. If a centralized logistics
management and a decentralized or in customer orders.

Industrial Visit
The warehouse we visited, near Humak has been outsourced and the vehicles used for
transportation of material stocks from warehouse to further sites are all outsourced. This allows
the company to work more efficiently for their ability to base. Security personnel were also
outsourced in the store. Security plays an important role in inventory management while
warehouse, and perhaps by a large company such as inventory management, security would
play's huge role. Around all the staff identities are checked which shows commitment to safety
and ensure that no visitor enters the building without his / her identification. There are 12 staff
members working in the store, the purchasing manager, the storage manager that deals with how
products should be handled and the others are inventory management staff.
The location of the company's warehouse Zong is very suitable for the comfort of its outlets and
mass distribution of stocks and inventories. There are 2 stores in the country, namely, the
Northern store is located near Islamabad, while a warehouse in the south of Lahore.

The Inspection of delivered products by supplier takes several hours or may take a few days
depending on the stock size. If the products are faulty and damaged they are returned to the
suppliers. Stock inventory is stored and transported to the warehouse according to a specific
format and a procedure. Lifters are used to move material goods in bulks all across the
warehouse. The sales department is highly dependent on the team efforts and can only perform
well if the team is highly motivated. At Zong, sales officers are highly competitive and motivated
as they know how well they have to inculcate their ideas and product into consumers mind.
The storage goods are placed according to their vendor category within the warehouse. There are
defined shelves for each vendor and according to their respective frequency . The fast moving
products are paced in the front while other slow moving stocks are placed a little farther than the
main gateway or opening of the warehouse. Stock is placed in different rows and columns and
each row is divided into shelves. Blocks are also assigned for different products. Products
arriving at the warehouse from 3 major suppliers namely Zetti, Huawei, and Alcatel are inspected
over various aspects. When an order is placed, suppliers after agreeing over to provide their
respective products to Zong warehouse also provide a "Timeline" in order to confirm the date at
which the product will be at the company's doorstep. The delivery note is matched with the
Purchase order so as to make sure that the delivery specifications are met. This may greatly
improve the efficiency of both the parties involved in this deal; both the parties may carry out
their operations at a greater level of accuracy. The information system used in stores Zong is also
able to determine that the product has already been introduced into the system and that the
product is new. Every time he comes back to a branch, the scanner when scanning allows the
system to automatically detect this article was located and all other relevant details depending
on the product.

Recommendations
The store is a lump sum of all stocks, as new products, returns, sales, repairable items, and
defective products. One or the other side may leave less room for those who are critical to the
company products Zong, i.e. inventory sunbathing, such as biometric devices. The company
must remove all products that are not used in the store or have a long life in another

configuration of the store she found a cheaper store is the location of this place. This can help the
Branch Manager efficiently locate product inventory in the warehouse when handling and leave
more space for new products to be transported to the client company. The location of defective
products is the right to the left as you enter the store. The fact that the items or items to be
repaired used must be kept closer to the tailgate door transport easily, so there is still plenty of
space in front of the new products coming from different suppliers. Lines and blocks are not
defined for any particular vendor or supplier. Therefore, lines and blocks must be defined for
each supplier or contractor to make it easier to manage the manager to locate the product, rather
than start entering data into the system and place it next to the other , scratches on the system.
Staff capacity to manage the warehouse and the current inventory was not enough proportional.
Some measures, such as an alarm system or pictures with immediate verification crowded
commuter station security must be involved in order to improve safety and operational efficiency
safely.

Conclusion
According to the management and Zong logistics, it appears that the company has achieved its
objective gradually with each passing day. Processes are becoming clearer with less ambiguity
and greater opportunities for customers and the company itself. The company that is moderately
old was able to achieve its benchmark ultimately in a very short time. The information system
used also enabled the company to effectively coordinate with the seat, without any limit or
formally disadvantage. How materials are transported inside the store, the location of these large
populations and how they are transported across different customers and other storage places
shows how perfectly coordinated and managed systems. The ability of staff also work quickly to
inspection in time and how they are able to maintain quality standards in the management of the
warehouse fast movement is greatly appreciated. In addition, insurance plans, the security
settings for the visitors and held by various measures, such as the back door, cameras, alarm
system, keeps the front and back, etc., all clear how this store is maintained effectively. Carriers
and location of storage facilities have been outsourced, so it offers and the most important
measure, that is, the cost was met expertly without involving higher costs of inputs and
outsourcing companies that are not related to core capacity of the company. The company was

able to produce such good factors in terms of strategies and outsourcing information and
transport that would be vital for the company to have its own reference point in the entire
segment. However this huge plant is able to operate both nationally and internationally.

Pictures of Trip