INTRODUCTION

Company mission:
We are selling salt and its all kinds of products since 2001 and have an
honorable name in international market. We assure you of best quality,
competitive price and regular supply of all products at any place all over the
world.
Started working as a local merchant in Khushab only work that was
performed by a company at start was manufacturing salt and sells it to the
local market (Khushab city).
In 2004, company started procurement and manufacturing of better quality
salt and its distribution in different cities of Pakistan including Lahore, Quetta
(Balochistan), Peshawar, Jhung, Karachi.
In 2007, for the first time salt was exported to china in finished form.
Receiving company was SUN RISE CORPORATION. In 2010, company
started manufacturing decoration pieces from the salt.

Working
Procurement:
In Pakistan, there are 4 mines of salt. There are 2 suppliers of HAMZA SALTS
including;
Ghani mines

Khewra salt mines

Procedure of procurement:

Mine is not responsible for transportation, you have to pay in advance for
salt blocks ordered. Almost all the transportation trucks are hired from third
party through a contract between vehicle owner and Hamza salts. The
expenses of diesel, drivers commission etc is paid by the organization on
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every consignment and expense of the vehicle is paid to the owner on

monthly basis. Owner of the transport is legally bounded to complete the
consignment. In case of any damage or loss to the vehicle or to the
consignment owner is liable to pay it. Mine is only responsible for labor that
provides you with the quality of salt demanded. Sub offices of mines are
there, firstly truck weight is checked and receipt of weight is received on
which weight of truck is mentioned and quantity of salt to be procured is
mentioned in kg along with the price.
Manager in mine see receipt and allows the labor to load that vehicle and
after loading completes vehicle returns to office and again it is weighted. It is
done in order to check that whether the quantity written on the receipt
equals the quantity loaded on vehicle. After that a receipt of clearance is
issued and vehicle is allowed to move on. When vehicle reaches Hamza salts
then that receipt is submitted to manager of company and truck is unloaded.

STORAGE

These salt blocks cant be stored in a room. An open area is preferred for this
purpose because room temperature causes to melt the salt. They try to store
salt close to the manufacturing unit in order to decrease the transportation
cost. If space is not available and material is in larger quantity then suitable
areas are decided and salt is stored.
There is less storage space close to organization maximum two or three
trucks could b unloaded.
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Many dealers are there having space for storage not for manufacturing they
supply to manufacturing units in case of urgent need.

MANUFACTURING

SALT
Small level Crusher used. Input given acc to demand of production crusher
takes seconds to generate output. There is a ditch under the crusher which
contains wastage.
When specific output is achieved, converted form (salt) then crusher is
turned off and labor work starts. That specific amount of salt is then packed
into sacks weighting different amounts if salt is to be imported to foreign
market then sacks are made of 100 kg each in local market they are of 50
kg per sack.
It is the process if amount is delivered to some whole seller for distribution.
But in order to deliver salt to areas (khushab) market then special packing
material is ordered from Faisalabad. Their weight is 1 kg and in these salt is
packed and delivered to shops directly by organization. Direct delivery of
product is done in order to minimize supply chain cost so that material is
available directly to customer from manufacturing end.

Decoration pieces:

For this purpose, no machine is used. All products are handmade and expert
labor is hired some of the expertise are permanent while others are
temporary. These temporary hired people are just there to help expertise.
They are not directly involved in making of decoration pieces.
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Shape, Design, Crafting etc is done by Experts and Polishing, Wires fitting
and Packing is done by Temporary Labor.

DISTRIBUTION
Distribution channel
Supplier

Manufactur
er

Whole
seller

Distributor

Retailer
Dealer

Consumer

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Gap in working
Vehicles hired from 3rd party so it results in high cost
Small level crusher is being used so small quantity produced in a
specific time
Less storage space

Suggestions for improvement

In order to reduce the cost of raw material Hamza salt should possess
their own vehicles for the transportation of raw material. This will
reduce the cost to minimum level i.e. fuel expenses etc.
For giving max output and profit organization must use crushers at
larger level. Less labor hours will be consumed. By doing this, cost and
time will be reduced.
Storage space should not be increased at the manufacturing unit.
Organization should purchase some open area for storage to avoid
dealing with dealers and to decrease expenses.

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