Supply Chain Management

H I L A L C O N F E C T I O N A RY ( P V T. ) L I M I T E D

Supply Chain Management

GROUP MEMBERS
Abid Hussain (12830) Hasan Ahmed (10231) Razi Muhammad Shadab (15257) Usman Uddin Khan (10818) Yousuf Ali Badshah (5158)

Company Profile

Company Profile

VISION
Hilal, along with its ancillary concerns, currently holds the title of
market leader in confectionery, and it envisions to not only maintain this position, but also to replicate this success in new product categories also. Being number one means having to anticipate the customers needs and desires. No one does this well than Hilal

Company Profile

MISSION
To maintain our status as market leader of the local confectionery
industry while expanding in the global arena through a continuous strive for developing the highest quality products that meet consumer needs.

Company Profile

RESEARCH & DEVELOPMENT

Market Surveys (Local/ International) Innovative ideas testing Product development (Playing with unique blends of flavors,

colors, and packaging)

Sampling New or changing market trends

Company Profile

QUALITY ASSURANCE
Quality products through latest technology, sophisticated tools and state of the art testing labs Quality assurance programs at all levels International Standards
USP (United States Pharmacopoeia) B.P (British Pharmacopoeia) AOAC (Association of Official Analytical Chemists) FCC (Food Chemical Codex) FDA (Food and Drug Administration)

Company Profile

C O R E VA L U E
Quality control by using modernized plants Automization is encouraged Innovation through latest technology utilization

Optimum utilization of qualified staff

Custom software integrates with all departments

Company Profile

C O M P E T I T I V E S T R AT E G Y
Low cost provider strategy
Delivering superior value with low price

Industry Profile
Market Shares %
20% 41% 12% Hilal Mayfair Candyland 15% 12% JoJo Others

Market Profile

National Pakistan (Rural/ Urban) International

UK, Jordan, Lebanon, UAE, Afghanistan, South Africa, Congo, New Zealand, Maldives, Sri Lanka, Bangladesh, etc

Product Profile
1. Chocolates 2. Wafers 3. Candies
(Choco 4, Choco Biscuits, etc) (Bar Bar, Roller) (Aamrus, Chhoran Chatni, Khopra candy, Super Sour, etc) (Pizza jelly, Mix Fruit jelly, etc)

4. Jellies

5. Powder Drinks (Thanda Orange, Limopani, etc) 6. Bakery 7. Chew Toffees

(Kake) (Milker Gold, Line Up, etc) (Tulsi, Rasily, Mughal, etc)

8. Pan Masala

9. Chewing Gums (Zoom Gum, Kool Gum) 10. Gift Packs 11. Bubble Gums
(Double Gift Pack, Fancy Gift Pack, etc) (Ding Dong, Fresh Up, etc)

Supply Chain Structure

Planning
Aggregate

Warehouse
Finished Goods

Transportation

Procurement
Raw Material Packaging Technical Items

Production
Bubbles Baking Candies Jellies

Customers
Distributors Retailers Export

Warehouse
Raw Material

Logistics
Inbound Movement/ transfering of goods

Participants of Supply Chain

Drivers of Supply Chain

1. Production

Little excess capacity

Narrow focus

Drivers of Supply Chain

2. Inventory

High inventory
Wide range of products

Drivers of Supply Chain

3. Location

Central huge plant in Karachi serving the globe

Drivers of Supply Chain

4. Transportation

Large, few shipments

Frequent shipments

Drivers of Supply Chain

5. Information

ERP

Drivers of Supply Chain

6. Sourcing

Total of 160 vendors (Vendor Approved List)

107 raw materials 53 packaging

Lead time for local purchase is max 10 days Lead time for Imported purchase is max 120 days

Drivers of Supply Chain

7. Pricing

Under Construction

Push and Pull Bounder

Push and Pull Bounder

1. Fresh up (Paper mint)

2. Fresh up (Ice mint)

3. Fresh up (Strawberry)

Strategic Fit at Hilal

1. Traditional system to corporate strategy

Production Planning and Control

Forecasting

1. Trend analysis
2. Bottom up approach 3. Marketing campaigns, seasonal variability and cannibalization effect.

Production Planning and Control

Aggregate planning

Centralized aggregate purchase

Safety/ buffer stock Chase production strategy Fifo Almost 600 SKUs

Bill of material (Bom) of Fresh up

Raw Material
1. Gum base

Packaging Material
1. Wrapper

2.
3. 4. 5. 6. 7. 8. 9.

Gel
Sugar (Regular) Sugar (Crystal/ Refined) Glucose 43 Glucose 45 Lactose Menthol Artificial Flavors

2.
3. 4. 5.

Pouches/ Jars
Boxes (Inner/ Outer tray) Cartons Miscellaneous (Tape, Stickers)

10. Colors

ABC Classification

Raw Material Quick Profile

S.No 1 2 3 4 5 6 7 8 9 10 11 12 Particulars Gum base Gel Sugar (Regular) Sugar (Crystal/ Refined) Glucose 43 Glucose 45 Lactose Menthol Artificial Flavors Colors Wrapper Pouches/ Jars Availability Local Local Local Imported Local Local Local Local Local Imported Local Local Lead Time 10 days 10 days 10 days 120 days 10 days 10 days 10 days 10 days 10 days 120 days 10 days 10 days Sourcing Many Many Many Single Single Many Many Many Many Single Many Many Wastage 0.0001% 0.0001% 0.0001% 0.0001% 0.0001% 0.0001% 0.0001% 0.0001% 0.0001% 0.0001% 2% 0.005%

13
14 15

Boxes (Inner/ Outer tray)

Cartons Misscelleonus (Tape, Stickers, bopp)

Local
Local Local

10 days
10 days 10 days

Many
Single Many

2%
2% 2%

Sourcing

Total of 160 vendors (Vendor Approved List)

107 raw materials

53 packaging

Agents (local/ Import)

Sourcing
KRALJIC Model

Sugar, Glucose, Milk powder, artificial flavors

Coco, Fragrance, Taste makers, artificial flavors

Flour, Stationary Items, Canteen Items, Janitorial.

Glucose 45 by Rafhan maiz

Distribution Strategy

Distributors , Retailers, Export agents

Advance/ Cash payment

Transport Network Design

Thank You