Presented to : Mr.

Asad Nizamani
Group: “A”
Subject : Supply Chain Management

Group Member’s

S.No Name Roll#

1 Kamran Khan 1156

2 Tamkeen Ahmed 1108
3 Syed Waqas Shah 1115
4 Zubairuddin 1140 Slide 1
Objective:-
To highlight the features of Supply Chain in TAPAL (Pvt. )Ltd.

Over View:-
Our purpose is to discuss the function that perform the TAPAL
with respect to Supply Chain

Kamran Khan
Slide 1
Introduction:-
 In 1947 Tapal started business as a tea leader .
 Tapal is a well known company in Pakistan .
 Today Tapal has become the largest & 100% Pakistani owned tea in this country .
 Founder is Mr. Adam Ali Tapal & currently managed by Mr. Aftab F. Tapal (MD) .
 Modern Tea blending & packaging factories and warehouses with state-of-the art
equipment & a team of highly dynamic professionals .
 Mr. Aftab F. Tapal was the first who invent .

Kamran Khan
Slide 2
Vision:-
Tapal look forward to greater progress & innovations in the year to come & committed to provide
the people of Pakistan with only the highest quality product and improve their lives in what ever
little way possible.
Mission Statement:-
Our mission statement is to benchmark for quality, creativity and ethical values to a diverse
consumer base of varying backgrounds by building on our ability to provide customers with
superior, differentiated product solutions via continuous assessment of the market need we serve
& to maintain close and direct contact with our customer through consumer insights and
dedicated services.
Long Term Objective:-
Customer Satisfaction
Quality
Brand Loyalty
New Product Development Kamran Khan
Slide 3
 Tapal Danedar
Market Share of Tea Beverages

Unbranded
40% Branded
Branded Unbranded
60%

Tanveer
Kamran Kamran
Khan
Slide4 6
Slide
Tapal Danedar
Market Analysis

Branded Tea Share in Market

10% Tapal

25% 45% Lipton

Supreme
20%
Others

Kamran Khan
Tanveer Slide
Kamran5
 Tapal Product’s

Danedar Leaf Blend Family Mixture Safari Kenya Leaf

Mezban Super Dust Chenak Kenya Dust Special Teabags

Jasmine Green Tea Gulbahar Green Tea Tezdum

Kamran Khan
Special Round Teabags Slide 6
 Management Of TAPAL

Aftab F. Tapal Mohd. Miabhoy Mahmood Nanji Haroon Rashid Ayyaz Ali Khan Mohsin M. Saify
C.E.O C.O.O C.M.O G.M Marketing G.M Sales G.M Tea & Blend

Kamran Khan
Mohd. Shabbir Syed Zafar Ali Own Ali Anjum Pervaiz Arshad Sohail Imran Ali Khan
G.M Supply Chain G.M Admin. G.M Finance G.M Projects G.M Prod. & Quality Manager HR
Slide 7
 Supply Chain Management

Supply chain management (SCM) is the process of planning,

implementing and controlling the operations of the supply chain as
efficiently as possible. Supply Chain Management spans all
movement and storage of raw materials, work-in-process inventory,
and finished goods from point-of-origin to point-of-consumption

Kamran Khan
Slide 8
 Role of SCM in TAPAL

 ERP implemented

 Close relationship with supplier

 Flexibility

Kamran Khan
Slide 9
 Supply Chain River Of TAPAL
Importing raw tea

Manufacturing

Packaging

Ware Housing

Distribution

Retailers
Kamran Khan
Consumers
Slide 10
 Integration of Supply Chain Management

GM SCM

PLANNING LOGISTICS PROCUREMENT MATERIAL

MAGT.

RAW TEA
INPUT SALES CONTROLLING
TRANSPORTATION PACKAGING
OPERATION PLAN MATERIAL
MATERIAL

M. Zubair
Slide 11
 The supplier selection process
 Identifying potential suppliers

 Drawing up a shortlist of suppliers

 Choosing a supplier

 Get a quotation

 Compare potential suppliers

 Negotiate terms and conditions

M. Zubair
Slide 12
 Supplier Evaluation

 Supplier Audit
 Supplier Visit / Surveys
 Supplier Previous History
 Getting Information from Company’s
 Consultants

M. Zubair
Slide 13
 Purchasing
 Information Gathering

 Supplier Contact

 Background Review

 Negotiation

 Fulfillment

 Renewal
M. Zubair
Slide 14
 Types of Purchasing

 RAW Tea

 Packaging Material

 MRO (Maintenance Repairing Operation Material)

M. Zubair
Slide 15
 Purchasing Procedure

On every Wednesday the suppliers obtain samples to get them

tested and if they are approved, the purchase is finalized through

an auction. Tea samples are tested through laboratory tests as

well as are sent to Pakistan in order to check the atmosphere and

environmental effects on the type of tea.

M. Zubair
Slide 16
 Packaging Material

Packaging material is purchase from the local supplier

 GADUN AMAZAI

 REHMAN PACKAGES

 BEST PACKAGES

 PACKAGES LTD.

 FAZLI SONS
M. Zubair
Slide 17
 Purchase of Filter Paper

 Filter paper that is used in making tea bags is imported from

Italy, MYSA is the supplier for that filter paper.

 Filter papers for teabags are imported because of

unavailability of local manufacturers and suppliers for teabags.

M. Zubair
Slide 18
 TAPAL’S Logistic

TAPAL divided the logistic in two types

according to nature and work.

 Warehouse to warehouse

 Warehouse to distributor

M. Zubair
Slide 19
 Production Planning

 TAPAL divided in two region South in North:

 Production plan is floated on each Wednesday for the next week

 Production Unit 3 (2 Karachi, 1 Rawind)

S. Waqas
Slide 20
 Production Planning and control

 Capacity planning (machinery)

250 MT : 3 factories
KHI Unit 1 : 50 MT approx.
KHI Unit 2 : 125 MT approx.
RWD Unit 3 : 75 MT approx.

 Capacity of the production units in KHI

factory 1 with 8 machines = 50 MT approximately
factory 2 with 30 machines = 125 MT approximately

S. Waqas
Slide 21
 Production Planning and control
 3 shifts – A , B & C
 Morning – 08 hours
 Evening - 08 hours
 Night – 08 hours

CYCLE TIME TO PRODUCE A PRODUCT

 1 Minute -120 Sachets
 1 Minute - 55 to 60 soft pack hard pack
 1 Minute - 18 to 20 pouch

S. Waqas
Slide 22
 Inventory Management

 Inventory is a list for goods and materials, or those

goods and materials themselves, held available in

stock by a business

 Tapal using FIFO inventory system

S. Waqas
Slide 23
 Inventory management and control

WAREHOUSING is considered by the management

 15 days inventory can be hold

 800 tons max. at KHI warehouse
 200 tons max. at HYD
 200 tons max. at SUK
 100 tons max. at MUL
 400 tons max. at RWD
 50 tons max. at ISL

Dates matter as the selling mostly occur during dates

22nd to 10th of next month.

S. Waqas
Slide 24
 Tapal's reason for keeping stock

 Time

 Uncertainty

S. Waqas
Slide 25
 Warehouses of TAPAL

Tapal has 6 Warehouses

 Karachi
 Lahore
 Islamabad
 Sukkur
 Raiwind
 Multan

S. Waqas
Slide 26
 Ordering Process
Order sheet submitted by distributor along with the pay order to
Tapal as soon as the order is booked, a memo is sent to the
concerned warehouse and the order is delivered in approximately
two days subject to the location.

S. Waqas
Slide 27
 Distribution
 Tapal has a distribution network spread across
Pakistan from Karachi to Khyber with over 400
distributors.

 86 distributors in Karachi only.

 Competition with Unilever lead to further

strengthening the distribution network.

 Sales force - DSR - order bookers, van drivers.

 Margin to distributors 2%--4%

S. Waqas
Slide 28
 Core Competencies
 Production planning strong

 FIFO Implemented

 Low cost Leadership

 Brand Image

 Process are Refine

Tamkeen Ahmed

Slide 29
 Key Performance Indicator

 Machine Utility

 Inventory Turnover

 Production Rejection

 On time delivery

Tamkeen Ahmed

Slide 30
 SWOT
Strength of TAPAL

ERP Implementation
Organized Integrated system
SCM Professional
Efficient Quality Department
Brand Image

Tamkeen Ahmed

Slide 31
 SWOT
Weaknesses of TAPAL

 Don’t have Strategic Partnership with Supplier (Trends)

 Radio Frequency Device is not implemented
 Weak Distribution in North Region

Tamkeen Ahmed

Slide 32
 SWOT
Opportunities for TAPAL
 More Effective R & D
 J.I.T Implementation
 Expansion to new markets (Export).
Threats for TAPAL
 Environment and strike
 Legal Threats
 Competitor may implement JIT
 Local and global competition
Tamkeen Ahmed

Slide 33
 Competitive Advantage
 Low cost leadership

 Brand image

 Strong SCM

 Unique blending formula

 Strong Segmentation: different taste for every region.

Tamkeen Ahmed

Slide 34
 Role of Government Agencies in Tapal

 Rate of packaging material increased.

 Tax increases on raw tea

 Rapidly increase in Petrol & Diesel Prices which will increase the transportation

cost.

 Movement of Heavy Transport after 12 at night which increase the cost of

production. Tamkeen Ahmed

Slide 35
 Quality Assurance of Tapal

 ISO 9002 certified company

 TEA Department (testing tea at different stage)
 Before auction test
 Random sampling test

Tamkeen Ahmed

Slide 36
 MAJOR BENEFITS WILL BE ACHIEVED BY
IMPLEMENTING SUPPLY CHAIN MANAGEMENT:

• Less wastage of raw materials.

• Production department would focus only on production.
• Materials are more standardized.
• Effective utilization of resources like raw-material, manpower, energy
and capital resources.
• Cost of production ultimately reduced.
• SCM department will provides quality assured raw material to
production floor.
• Supplier selection procedure will be easier.
• Lesser wastage, shortened repair times and effectively handled
production delays, So cycle time will be automatically reduced.
Star

Slide 30