Company

TREET CORPORATION LTD

TO
Sir M. A. Khan
BY
Pervaiz Zafar
11018
Asim Mahmood Khokhar
Ahmad Abbas
11002
Umer Sheikh
11010
Azeem Ashraf
11029

MBEMBE-11017
MBEMBEMBE-

Treet Corporation LTd

The history of the company dates back to pre-independence days, the

business activities were diversified into Industrialized Operations of

Shaving Blade, Soap and Razors manufacturing.

The Shaving Blade manufacturing operations started in 1954 with the

brand name of Treet. Treet is one of the outstanding Pakistani

companies, that has been achieving its place as one of the best 25
quoted industries on Karachi Stock Exchange. It is the only shaving
Blade & Razor manufacturing company in Pakistan catering to shaving
needs of the people.

Treet practices and closely monitors quality through Total Quality

Management. Quality products for the satisfaction of its consumer is

the main objective of the company. Hence, ISO 9001 : 2008 is an
assurance that Treet meets the world quality standards and its
products can compete in the world market on quality.

Strategic decisions
hierarchy

Objective of Supply chain Management Concept

in TCL
SCM has the "design, planning, execution,

control, and monitoring of supply chain

activities with the objective of creating net
value, building a competitive infrastructure,
leveraging National and international logistics,
synchronizing supply with demand and
measuring performance for Treet Corporation
Ltd.

Drivers of Supply Chain

Performance
A Frame Work of structuring drivers in TCL
1.Facilities (Factories, machineries, human capital, logistics)
2.Inventory(Storage facilities in three factories)
3.Transportation (Vehicle fleets and out source contracts)
4.Information (I.T based internal and external information)
5.Sourcing (Local sourcing and foreign sourcing)
6.Pricing
(Competitive prices for vast range of customers)
7.Obstacles to Achieving Fit (Environmental, political and

economical factors, market competitions)

Frame work
Facilities
Treet Group of Companies, has three places where raw
inventory is stored, assembled and fabricated and have
five destinations where Finished Good stores before
supplies to distributors
TCL Group has three production sites and three initial
storage sites.
Inventory
At least an Inventory of One month in advance for Raw
materials of Steel Products, Plastic Products and Soap
Products.
Inventory with in production on daily bases is 3.3%, of
total Factories work 24 hours
Finished goods within a supply chain
Inventory policies

 Warehousing: There are three main approaches to use in

warehousing: Stock keeping unit(SKU) storage: In this

approach all of a given type of product is stored together.
Job lot storage: In this approach all the different products

related to the needs of a certain type of customer or related

to the needs of a particular job are stored together.
So the fundamental trade-off that managers face when

making facilities decision between the cost of the number,

location & type of facilities(efficiency) & the level of
responsiveness that these facilities provide the companys
customer

1. FACILITY

Facility are the actual physical locations in the supply chain network where
product are stored, assembled or fabricated. The two major types of
facilities are :

Production sites(factories) (Lahore Hyderabad, Gakkhar)

Storage sites(warehouses) (Lahore, Hyderabad, Multan, Rawalpindi,

Gakkhar)

Factories are built to accommodate one of two approaches to

manufacturing:

Product Focus: Treet factory that takes a product focus performs the range
of different operations required to make a given product line from
fabrication of different product parts to assembly of these parts.

Functional focus: The functional focus approach concentrates on

performing just a few operations such as only making a select group of
parts or doing only assembly

2. INVENTORY

Inventory encompasses all the raw materials, work in

process, and finished goods within a supply chain.
Changing inventory policies can dramatically alter the
supply chains efficiency & responsiveness.
There are three basic decisions to make regarding the
creation and holding of inventory:
Cycle Inventory: This is the amount of inventory needed to
satisfy demand for the product in the period between
purchases of the product.
Safety Inventory: inventory that is held as a buffer against
uncertainty. If demand forecasting could be done with
perfect accuracy, then the only inventory that would be
needed would be cycle inventory.
Seasonal Inventory: This is inventory that is built up in
anticipation of predictable increases in demand that occur
at certain times of the year

3.TRANSPORTATION
Transportation entails moving inventory from point to point in the supply
chain . Transportation can take the form of many combinations of modes &
routes, each with its own performance characteristics. There are six basic
modes of transport that a company can choose from:
Ship which is very cost efficient but also the slowest mode of transport. It
is limited to use between locations that are situated nest to navigable
waterways & facilities such as harbor & canals.
Rails which is also very cost efficient but can be slow. This mode is also
restricted to use between locations that are served by rail lines.
Pipelines can be very efficient but are restricted to commodities that are
liquid or gases such as water, oil & natural gas.
Trucks are a relatively quick & very flexible mode of transport. Trucks can
go almost anywhere. The cost of this mode is prone to fluctuations though,
as the cost of fuel fluctuates and the condition of road varies.
Airplanes are a very fast mode of transport and are very responsive. This
mode is also very expensive mode & is somewhat limited by the
availability of appropriate airport facilities.
Electronic transport is the fastest mode of transport and it is very flexible &
cost efficient. However , it can be only be used for movement of certain
types of products such as electric energy, data, & products composed of
data such as music, pictures & text

4. INFORMATION
Information serves as the connection between various stages

of a supply chain, allowing them to coordinate & maximize

total supply chain profitability. It is also crucial to the daily
operations of each stage in a supply chain for e.g a production
scheduling system.
Information is used for the following purpose in a supply chain:
Coordinating daily activities related to the functioning of other
supply chain drivers: facility, inventory & transportation.
Forecasting & planning to anticipate& meet future demands.
Available information is used to make tactical forecasts to
guide the setting of monthly & quarterly production schedules
& time table
Enabling technologies: many technologies exist to share &
analyze information in the supply chain. Managers must
decide which technologies to use & how to integrate these
technologies into their companies like internet, ERP, RFI

5. SOURCING
Sourcing is the set of business processes required to

purchase goods & services. Managers must first decide

which tasks will be outsourced & those that will be
performed within the firm.
Components of sourcing decisions
In-House or outsource: The most significant sourcing
decision for a firm is whether to perform a task in-house or
outsource it to a third party. This decision should be driven
in part by its impact on the total supply chain profitability.
Supplier selection: It must be decided on the number of
suppliers they will have for a particular activity. The must
then identify the criteria along which suppliers will be
evaluated & how they will be selected like through direct
negotiations or resort to an auction.

6.PRICING
PRICING

Pricing determines how much a firm will charge for goods &
services that it makes available in the supply chain. Pricing affects
the behavior of the buyer of the good or services, thus affecting
supply chain performance, for example, if a transportation
company varies its charges based on the lead time provided by
the customers, it s very likely that customers who value efficiency
will order early & customers who value responsiveness will be
willing to wait & order just before they need a product
transported. This directly affects the supply chain in terms of the
level of responsiveness required as well as the demand profile
that the supply chain attempts to serve. Pricing is also a lever that
can be used to match supply & demand.
Components of Pricing Decisions:
Fixed Price versus Menu pricing: A firm must decide whether it will
charge a fixed price for its supply chain activities or have a menu
with prices that vary with some other attribute, such as response
time or location of delivery.
Every day low pricing versus High-Low pricing

.Obstacles to Achieving
Strategic
fit

Economical variables
Increasing variety of products
Decreasing product life cycles
Increasingly demanding customers
Fragmentation of supply chain ownership
Globalization

A Newer Paradigm:
Pull Strategies
Production is demand driven
Production and distribution coordinated with true
customer demand
Firms respond to specific orders
Pull Strategies result in:
Reduced lead times (better anticipation)
Decreased inventory levels at retailers and
manufacturers
Decreased system variability
Better response to changing markets
But:
Harder to leverage economies of scale
Doesnt work in all cases

Push-Pull Strategy
The push strategy for Local Products

requires:

Supply chain planning

Long term strategies for local products

The pull strategy requires for Export Products:

Order fulfillment processes
Customer relationship management
Buffer inventory at the boundaries:
The output of the tactical planning process for
both local and Export.
The input to the order fulfillment process
specially for exports.

Push-Pull Supply
Chains The Supply Chain Time Line
Customers

Suppliers

PUSH STRATEGY
Low Uncertainty

PULL STRATEGY
High Uncertainty
Push-Pull Boundary

Raw
Material

Customers
Push

Pull

Low Uncertainty

High Uncertainty

Long Lead Times

Short Cycle Times

Cost Minimization

Service Level

Resource Allocation

Responsiveness

Demand Management
Demand forecasting is essentially a linear process of
translating input assumptions into a forecast of
expected sales; demand management, by contrast, is a
highly iterative process that involves driving to a
revenue and profit target through prioritization of
customers, channels, products, geographies and the
demand stimulation programs available to the
enterprise.

Function of Demand
Management
Product introduction, phase out modification
Promotional planning
Consensus forecasting of anticipated business
Customer order services
Order delivery date promising
Customer order entry
Distribution requirement planning

Demand Plan Output

An

agreed consensus Sales Forecast by

SKU for the complete planning horizon.
An agreed and documented set of
assumptions, vulnerabilities and
opportunities that support the Sales
Forecast.
Documented reasons for any significant
changes since last review
A financial evaluation of What ifs and
sensitivities.

Demand Plan Input

Sales History
Previous Forecast
Previous Forecasting Performance (accuracy etc)
Internal Influences Promotional Plans, Cycle Activity,
Pricing Strategies
External Influences - Market Share, Market Indicators,
Government policies
Market Intelligence - POS data, Sales Trends,
Competitor Activity.
New Product Information launches, changes,
cannibalisation, de-listings
Unconstrained Forecast from both Trade and Brand
Marketing

Forecasting:
Defination
Forecasting is the establishment of future expectations by
the analysis of past data, or the formation of opinions.
Forecasting is an essential element of capital budgeting.
Capital budgeting requires the commitment of significant funds
today in the hope of long term benefits. The role of forecasting
is the estimation of these benefits.

25

Forecasting
helps
management
in
its
attempt to cope with the
uncertainty of the future,
relying mainly on data
from the past and present
and analysis of trend.
Forecasting
start
with
certain assumption based
on
management
experience,
Knowledge
and
judgment.
These
estimates are projected
into the coming month or
year using one or more
techniques such as Delphi
method, moving average
etc
Inherent lead time in the
business
Improve customer service
level
Maximize revenue and
profit

Why Forecasting

Element of Good
Forecasting
Timely
Accurate
Reliable
Meaningful units
In writing
Simple to understandable and use
Cost-effective

Steps of Forecasting
1.
2.
3.
4.
5.
6.

Determine purpose of forecast

Establish a time horizon
Select a forecasting technique
Gather and analyze data
Prepare the forecast
Monitor the forecast

Forecasting Techniques and

Routes
Techniques

Quantitati
ve

Simple
regressions
Multiple
regressions
Time trends
Moving
averages

Routes

Qualitativ
e

Top-down
route
Bottom-up
route

Delphi method
Nominal group
technique
Jury of executive
opinion
Scenario
projection

29

Quantitative Forecasting
Quantitative: Regression with related variable

Data set of Sales as related to both time and the number of blades in millions

Forecasting of "Blades"

Sales In Million
Yeild Per Ton In Millions
Consumption in Tons
2 Month Inventry
Total Requirement
Monthly Requirement

Lahore

Hyderabad
Total
180
600
1.3
1.3
138
462

780
1.3
600
100
700
58

Lahore
Sales in Million

420

Yeild Per Ton

1.3

Consumption

323

Monthly Requirement

27

30

Key process of forecasting

Excel will plot, and automatically forecast, a data series which

has a functional relationship. For example, a regression trend
line.
The auto plot is driven through the Chart menu as Add
Trendline. A particular forecast is specified via the dialog
box.
Future point data values cannot be read from the
automated trendline.
Non-functional relationships, such as a
moving average, can be plotted, but cannot be
automatically forecast.
32

Top-Down
where international and national
events affect the future behaviour of
local variables.

33

Where local events affect the future

behaviour of local variables.

Bottom-Up
34

Forecasting: Summary
Sophisticated forecasting is essential for capital

budgeting decisions
Quantitative forecasting uses historical data to
establish relationships and trends which can be
projected into the future
Qualitative forecasting uses experience and
judgment to establish future behaviours
Forecasts can be made by either thetop down or
bottom up routes.

35

DESIGNING THE DISTRIBUTION

NETWORK IN TREET
CORPORATION
CHANNEL STRUCTURE
Intensity
Number of Members
Coverage Plan

Intensive Distribution:
Distribution of blades in intensively cover and available

at everywhere in the market to satisfy end user. For this

purpose company use their sale force which cover the
whole market through visit.

Now Treet Capture 85% market share and

remaining by Indian and crown Egyptians.

Cont..
Number of Members:
Manufacturer
Distributer
Wholesaler
Retailer
End-User

Upstream Member:
Manufacture is known as upstream member it

manufactures blade to meet the demand of

downstream. Its production twenty Million (20,000,000)
blades per month.

Cont..
Why Treet Like intensive Distributions?
Treet wants that the demand of their product increase in the
market resulting more profit earn so the Treet available their
product on all over the country and in some times international
levels. Through intensive distribution they make their product
available at any where for the consumption of end user by doing
this they get a lot of profit and the product of the Treet so they like
intensive distributions.

Why Distributor Dislike intensive

Distribution?
Distributors want to make him unique in
distribution o f blade so they dislike intensive
distribution.

CHART

Response Time