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EBM

ENGLISH BISCUIT
MANUFACTURER:
SUPPLY CHAIN
MANAGMENT

EBM

EBM

SUBMITTED BY: RABIA


SIDDIQUI
CLASS: BBA III
TOPIC: SUPPLY CHAIN
MANAGEMENT

SUBMITTED TO:
da

MS. QANITA NAFEES

EBM

A
i thank Allah for guiding ME through the phases of
compiling this report and helping me out in all the
difficulties.
I would like to take this opportunity to thank MS,
QANITA NAFEES our teacher for the course of
OPERATIONS MANAGEMENT at NAZEER HUSSAIN
UNIVERSITY, for her valuable support and
encouragement, which she has offered.

EBM

ES
This Report Supply chain management of English
Manufacturers Limited (EBML) is an assignment
operations management course in 3rd semester
NAZEER HUSSAIN UNIVERSITY. I conducted this
under the guidance of our teacher Miss QANITA.

Biscuit
of our
at the
report

English Biscuit Manufacturers (Private) Limited was


established as a joint venture company in 1965 with the
name of Peek Freans Pakistan Limited. EBM has been in
the business of manufacturing and marketing branded
biscuits in Pakistan for over 40 years. EBM is also the first
biscuit company in Pakistan to have achieved ISO - 9001
Certification in correspondence with its institutional slogan
'The Legend Leads' .English Biscuit Manufacturers (Pvt)
Ltd., or (EBM), is the country's leading manufacturer of
biscuits and cookies since 1967.
The reason why choose EBM is that the biscuit industry in
Pakistan is currently experiencing high competition
between the two major players, that is EBM and LU. EBM
had been and is a major player in the biscuit industry. In
fact it had been the market leader until the arrival of
Continental Biscuit Limited (CBL), the makers of LU
Biscuits. To regain its lost market leadership EBM has been
forced to reconsider and replant its marketing strategies
and reposition itself in the biscuit industry. This has given
me the opportunity to analyze a company, which is
actively and strongly challenging its competitor for its lost
share. It has also given me a valuable chance to apply the
concepts, which I have learnt in my operations
management course. I have used this opportunity to put
fourth my own views and analysis of EBM environment,
strategies, organization, systems, productivity, operations

TABLE OF CONTENT
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EBM

Company introduction
Company objective
EBM product line
Major suppliers
Major competitor
EBM Supply chain
Structure of supply chain management
Process of supply chain management
Strategies of supply chain management
Decisions of supply chain management
Recommendations
Conclusion
References

EBM

THE LEGEND
INTRODUCTION:
English Biscuit Manufacturers (Private) Limited was established as a joint venture company in
1965 with the name of PEEK FREANS PAKISTAN LIMITED.
In 1966 the UK sponsor company was renamed as Associated Biscuits International Limited
(ABIL), while the venture was renamed to English Biscuit Manufacturers (Private) Limited,
which stands to date.
EBM has led the biscuit industry in Pakistan for over 40 years by providing innovative and high
quality biscuits. It started manufacturing and marketing world famous Peek Freans range in order
to provide Pakistani consumers with good quality, healthy, nutritious, and wholesome and
hygienically packed biscuits.
The trade mark of Pied Piper made its mark about 35 years ago which is recognized as a symbol
of 'trust & confidence' for consumers and is true to its corporate claim, 'The Legend Leads'.
With the help of their strategic vision and direction EBM has successfully transformed the
biscuit eating habits of Pakistani consumers by making biscuits more of an everyday necessity
and less of a luxury item.
English Biscuit Manufacturers (Pvt) Ltd., or (EBM), is the country's leading manufacturer of
biscuits and cookies since 1967, with an annual sales volume and production capacity of more
than 90,000 tons and a turnover of more than Rs. 12 billion. EBM is the only Company in the
industry to have achieved recognized international certifications pertaining to quality control,
environmental management system and human resources management, including ISO
9001:2000, ISO 14001:2004. EBM is also the only food company to have been awarded
Environmental Excellence Award for seven successive years 2004, 2005, 2006, 2007, 2008, 2009
& 2010.
Company implements ISO Standard for safety, & Quality management.

EBM

Company Objectives:

Improve the knowledge base of the cereal and baking technology


Create awareness in people about hygiene and nutritional value of food
Overcome the non-availability of the equipments for quality determination
of raw materials
Bring our country on the top with a reputation not only for world class
scientific and technological discovery but also for turning that knowledge
into new and quality products and services.

EBM PRODUCT LINE:


PLAIN SWEET BISCUITS:

Gluco
Marie
Sooper

CREAM BISCUITS:

Lemon and chocolate sandwich


Rio

CRACKERS:

Butter Puff
Saltish

NUTS:

Party
Peanut Pick
Peanut Pista

EBMS MAJOR
SUPLIERS:
EBMS major suppliers are:

Habib sugar mills.


Millac and Saima packaging.

EBM

COMPETITOR:
The major competitor of English biscuits is CONTINENTAL BISCUITS (LU), which has a
significant share of the market in terms of sales volume.
LU basically has five to six brands which it markets vigorously in comparison to English
Biscuits Manufacturers.
But EBMs strong planning, management and rational decision making took back the market.
Since then, EBM has been growing fast and has left its competitor far behind.

Ebm SUPPLY CHAIN:


Minor & Major Purchasing Decisions & Whos Responsibility
Head of supply chain take major decisions of purchasing and also responsible of giving approval.
For minor decision supply chain department members done all homework and after that final
authority will be of head of supply chain.
In other part if we are purchasing out of routine then we have to get the approval from the Board
of Directors. For supposed if we are given the approval to consume 10 Crore per quarter but if
due to certain extra purchases we get to consume more money which beyond to 10 Crore then we
are responsible for getting the approval from board of directors.
Company replenishes direct material and indirect material one time. All departments are working
collaboratively in finding the required material. For example if a company require a new Ac then
its technical team explain its configuration from where to buy which brand is good for long term.
On this specification company select vendor and negotiate with vendor and allow material to be
available. We prefer supplier having low cost.

Supply Chain Management According to Me


According to me Supply Chain Management became a Backbone of a company now days the
companies do not compete with other companies but one supply chain competes with other
supply chain. So, the companies involved in a specific supply chain are managed as a single
entity, not the separated ones.

EBM

EBMS SUPLY CHAIN MANAGEMENT


STRUCTURE:
STRUCTURE
PROCUREMENT
OR SOURCING

DOMESTIC
PROCUREME

DIRECT
MATERIAL
RAW
MATERIA

IMPORT

WAREHOUSIN
G
RAW
MATERIA
L STORE

PACKAGING
MATERIAL
STORE

FINISHED
GOODS
STORE

INDIRECT
MATEIAL
PACKAGING

The structure of supply chain department of English Biscuits is divided into two broad
categories:
Procurement or sourcing.
Warehousing.

1. PROCUREMENT OR SOURCING:EBMs sub-divide their procurement section into two parts:

Domestic procurement.
Imports.

DOMESTIC PROCUREMENT:

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EBM
The domestic procurement is sub-divided into two parts:

Direct material
Indirect material

DIRECT MATERIAL:
Direct material is further divided into two sections:
RAW MATERIAL
The raw materials basically are ingredients material which are using in English Biscuits products
such as eggs, flour, milk, sugar, cocoa etc.
PACKAGING MATERIAL
EBMs product packaging involves three packaging material that is master carton, dispensers and
films.

INDIRECT MATERIAL:
Indirect material are those material which are uses in the factory but that are not directly related
to the products such as computer equipment ,marketing stuff, tool , stores/equipment, medicines
and stationary.

IMPORTS:
The EBM appoint two officers who dealing the imports of raw material that is using in products,
the factory tools and spare parts of machinery and equipment.

2. WAREHOUSING:EBMS has three warehouses:

RAW MATERIAL STORE:


Raw material store are those in which they store their raw material stock which are using in their
products such as eggs, milk, flour and cocoa etc.

PACKAGING MATERIAL STORE:


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EBM
Packing material store is that store in which they store all their packaging material that is films,
dispensers and master carton.

FINISHED GOODS STORE:


Finished goods store are those in which they store their finished goods thats products.

EBMS SUPPLY CHAIN MANAGEMENT PROCESS:


EBMs supply chain process is comprised of a series of interdependent steps and starts with the
collection of raw materials and ends with packaged brands on customer's shelves. The Supply
Chain Management at EBM ensures that appropriate quality standards are upheld and maintained
at each link in the chain.
The supply chain at EBM comprises the following areas:

Forecasting
Planning
Manufacturing
Deployment
Suppliers
Distribution
The consumer / shopper

FORECASTING:

RETAIL
ER

DISTRIBUTI
ON
WAREHOUS
E

Forecasting is a vital element of the business, and can


be defined as an unconditional statement of demand of
biscuits. Simply put, a forecast predicts how much
demand there will be in the market for a specific product over a certain period.

RAW
MATERI
AL
SUPPLIE
R
COMPONE
NT
SUPPLIER

PRIMARY
MANUFACTUR
ER

PLANNING:
The function of planning is to convert marketing forecasts into manufacturing plans. The
planning department works closely with the various operations to ensure that manufacturing
plans are accurately converted into monthly and weekly production plans and budgets.
Planning is also responsible for monitoring and controlling the amount of stock the company
holds and for ensuring that the correct stock holding levels are maintained to meet customer
service requirement.

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EBM
MANUFACTURING:
The manufacturing process at EBM involves the conversion of raw and packaging material into
finished product in the most cost effective manner possible. EBM manufactures all of its own
products, and production takes place at the two factories located in Karachi and Hattar.

DEPLOYMENT:
Deployment is the movement of finished goods (biscuits) to warehouses.

MARKETING AND SALES:


The function of marketing and sales is to market the product with the aim of maximizing the
profit of the firm. Effective policies and strategies are made for this purpose.

SUPPLIERS:
For every item EBM have 3 to 4 suppliers, so to cope with any uncertainty.

DISTRIBUTION:
Simply defined, distribution involves the execution (delivery) of sales orders to a customer. EBM
has more than 350 distributors all over Pakistan.

THE CONSUMER /SHOPPER:


The shopper and consumer are the individuals who eventually buy and consume EBMs
products.
A shopper is the person who purchases the product in store, whereas a consumer is the person
who eventually consumes the product. In many instances the shopper and consumer are one and
the same.

MARKETING & SALES DEPARTMENT:


Marketing is a business discipline focused on the practical application of marketing techniques
and the management of a firm's marketing resources and activities. Marketing managers are often
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EBM
responsible for influencing the level, timing, and composition of Customer demand in a manner
that will achieve the company's objectives.
EBM is very much concerned about its marketing as it is the backbone of its sales. A good
marketing strategy has always been adopted by EBM which keeps on changing with the passage
of time. One of the biggest tools of marketing is advertising. EBM does advertising through
different media channels which include TV commercials, Radio, Magazines etc. Furthermore,
EBM also sponsors different events like cricket matches, concerts etc. Sales activity is also
performs by the same department. This department sets the targets of sales for the current year
and for the upcoming years. Once the target is set, a strategy is developed for achieving this
target. They collect orders from the distributors and supply to them the same. Their overall
strategy is to maximize the sales by observing the market trend and consumer demand. EBM has
more than 350 distributors all around Pakistan. EBM has recently achieved a sales target of Rs.7
billion, which is a great achievement.

SALES FORECAST:
In any industrial unit or FMGC unit planning starts from sales forecast. In EBM, sales forecast
for the coming month is provided before the end of current month and sometimes forecast of two
additional months is provided in advances. Now the forecast is for the months of October,
November and December. The benefit from it is that we get an idea
about the trend coming.

PRODUCTION PLANNING:
On the basis of sales forecast production department will start
production planning. Production capacity will either be above from sales
forecast or below the forecast its never in line with production capacity.
If it is above the production capacity than material flow from opening
stocks. If it is below production capacity than production department
will have to take decision either to produce less or to produce maximum in order to build further
stocks. The trend that EBM follow is to build further stocks. Let say for example in the month of
Ramadan if we have 100% production capacity and the demand is for 35% we opt for producing
100%. By producing 100% we took 15% of that 100% to our opening stocks for the next month.
On the basis of production planning we break them in to the components known as MRP.

MANAGEMENT RESOURCE PLANNING (MRP):

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EBM
MRP is a systematic approach to management and planning
that allows us to develop production plans and order
materials as required by the plan.
Keeping unnecessary inventory on hand is expensive and
inherently wasteful. MRP helps us avoid costly overstocks.
Conversely, inventory shortages can stop the manufacturing
process and lead to employees being sent home or working
on other less productive tasks. Material Resource Planning
programs provide a time-dependant picture of future
requirements. Automated planning of material requirements
allows us to consistently meet customer due dates. The
MRP process help the sales department provides reports
forecasting future orders. The forecasted data is integrated
with information regarding orders already in-process. The Bill of Materials module is consulted
to determine raw material requirements. Purchase orders are scheduled using the following
criteria. The master production plan is scheduled. EBM is working to connect suppliers on MRP
to have physical contact with them.

MANNER OF PLACING ORDER TO SUPPLIERS:


To many suppliers we provide material forecast that we have to do. Afterwards the suppliers
have their own requirements and lead times. We purchase material when dealing in for long
terms. Sometimes when we have a good understanding with suppliers we provide them material
forecast which is as good as an order. On this basis suppliers perform their planning and
procurement. In this way whenever we want we place order and purchase the material. In short
we got requirement, raise purchase orders and material is available to us by our suppliers.

QUALITY ASSURANCES DEPARTMENT:


EBM is the only Company in the industry to have achieved recognized international
certifications pertaining to quality control, environmental management system and human
resources management, including ISO 9001:2000, ISO 14001:2004, HACCP certifications and
IIP (Investors in People) Recognition. EBM is also the only food company to have been awarded
Environmental Excellence Award for seven successive years 2004, 2005, 2006, 2007, 2008, 2009
& 2010.
EBM is strictly following the policy of providing its customers, the best quality. EBM has never
compromised on this and therefore, it has been the main reason why the EBM is so successful
and famous amongst its customers. EBM, for this purpose, has developed a Quality Assurance &
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EBM
Development Department. The basic function of this department is to check and maintain the
quality and standards of raw material used. This includes testing of flour, eggs, Oil & fats etc.
Four Labs are currently working at EBM, for checking and testing purpose. Two more labs are
under:

Construction.
Analytical Lab (Centre of Excellence C.O.E )
Packaging Lab
Microbiological Lab
Process Lab

Under-constructed lab includes Research and Development where research work will be
Performed and new product development work will be done. Quality control begins with the
ingredient assembly stage of production during the measuring, weighing, and processing of the
raw ingredients. Additionally, most large manufacturers have quality control (QC) labs
responsible for making sure the materials meet determined specifications. Characteristics such as
appearance, color, odor, and flavor are checked. QC technicians also test for particle size,
viscosity of oils, and pH of raw material. The finished product is also carefully monitored. Like
the inspection of the raw material, the finished products must be examined for appearance,
flavor, texture, and odor. The product is compared to a standard established during product
development. Specially trained testers are responsible for detecting subtle differences that
deviate from the norm. No information is passed on the ERP until it passes from QC department.

LEAD TIME:
The lead time of every product of EBM is different from other
products. let say e.g. if we needs eggs we get them on one day
notice so we dont need a huge stocks or to have maximum
ordering lead time. We order one day and on the very next day
material is available to us. We hold 2-3 days of material in stocks.
When there are those products which need either more production
time or the suppliers have schedules to provide material then we
set lead times accordingly.

FOR LOCAL PRODUCTS:


On an average the lead time of local manufacturing products is 21 to 25 days, it may extend to a
maximum of 30 days depending on their requirements.

FOR IMPORTS:
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EBM
In case of imports the lead time is about 2 to 4 months. For different origins and different
products lead times will be different.

EBMs SUPPLY CHAINS STRATEGIES:


Monitoring local and international pricing, comparing them,
findings synergies and switching towards it.
Long term buying.
Long term bookings when suppliers dont need money and
we trust them enough we book orders.

COMPETITIVE EDGE OF EBM:


The buying at EBM takes place at two tier level. Tier 1 is our supplier. Tier 2 is our supplier
suppliers. We monitor international and national prices where we see synergies we say our
converters to book orders. Converters are the one who are purchasing us (SC department) do not
have any money involvement in it. But the decision is our, we decide the price point of material.
In material pricing we see the main components such as films, what we do we collaborate with
local or international suppliers and crack a deal because obviously our volumes are huge and
when we deal in with large volumes we get synergys, our converters deal on our behalf and get
those volumes if e.g. requirement for a particular material is around 150 to 200 tons for a month.
Individual vendor will not be able to provide material of more than 30 to 40 ton.
When that individual vendor go to either local or international supplier with 30 to 40 ton volume
it will be expensive because price will be set on individual ton as it is less in quantity. What we
do we go to the party and state our requirement which is around 200 to 300 tons of volumes and
on the basis of huge volumes we get a very a good price. Afterward we allocate those volumes to
our individual converters e.g. 30 ton belongs to converter 1, 50 ton to converter 2 and it goes
further on until all is allocated. If it is an international party the converter opens LC and if its
local converter directly purchase it. The benefit we get that we cover 70% out of that 80%. We
are controlling the suppliers by helping them buy less expensive material.
Another important thing that we do we negotiate with our suppliers on
conversion cost. Annually we sit and discuss issues like inflationary effects,
utility expense, labor cost etc for the year. We negotiate hard and set the
final conversion cost for the year. It addresses 15% or 20% of the
components.

EXPORTS:
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EBM
English Biscuit Manufacturers (Private) Limited is a producer of high quality biscuits in
Pakistan. It caters not only to the wide requirements of the domestic market but also exports its
products to USA, Canada, UK, UAE, Bahrain, Djibouti, Saudi Arabia Mauritius, Sudan and
South Africa. English Biscuit Manufacturers exports its products in special sea worthy packing to
keep its products intact during and after transit.

LEVEL OF UNCERTAINTY:
As we are sitting in FMGC the level of uncertainty could be either +100 or -100. Because on the
shop consumer decides which biscuit they want to buy. Supply chain officer said himself he had
never seen pre calculated buying.

EBMS SUPPLY CHAINS MANAGEMENT DECISIONS:


Supply chain management decisions are often said to belong to one of three levels; strategic,
tactical or the operational level:
LONG TERM DECISION
MEMEDIUM TERM DECISION
DAY TO DAY OPERATION

STRATEGIC LEVEL:
Alignment of overall organizational strategy with
supply chain strategy to achieve organizational
objectives.
Decisions concerned with the size, number, and
geographic location of the supply chain entities, such
as plants, inventories, or distribution centers.
To determine which products to produce, where to
produce them, which suppliers to use and to identify
plants from which distribution centers are supplied.
Development of information technology infrastructure
to support supply chain operations through planning
and execution related applications.

STR
ATE
GIC
LEV
TACTICAL
EL
LEVEL
OPERATIONAL
LEVEL

TACTICAL LEVEL:
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EBM
Identification of sourcing locations, establishment of contracts and other purchasing
decisions.
Inventory decisions including quantity, location and quality of inventory.
Transportation s t r a t e g y including frequency, routes and contracting.
Benchmarking of all operations against competitors and implementation of best practices
throughout the organization. Decisions such as medium term production requirements
demand forecasting and staffing planning etc.
Identification of new cost efficient markets for procurement of materials required for
production.

OPERATIONAL LEVEL:

Daily planning of all related nodes in the supply chain. Demand planning and forecasting,
coordinating the demand forecast of all the customers and sharing the forecast with all
suppliers.
Source planning, including current inventory and forecast demand, in collaboration with
all the suppliers.
Inbound operations, including transportation from suppliers and receiving inventory along
with outbound operations including all fulfillment activities and transportation to customers.
Supply chain operations, including consumption of materials and flow of finished
goods.
Performance tracking of all activities pertaining to supply chain.

Recommendation:
During the last few decades we have seen an increasing rate of globalization. Products are no
longer produced and consumed within the same geographical area. The world has shrunk to palms
with the introduction of computer based business applications, internet and e-procurement
concepts, thus changing fundamental assumptions about business in terms of challenges
and opportunities.
Organizations operating in todays business are required to understand these new
phenomenas and respond quickly to ever changing global requirements by seeking maximum
benefits out of available technological developments to achieve their business objectives. Since
in todays world only survival of the fittest is the rule of the game.

One word to describe supply chain of EBM is EFFICIENCY in 4Ms


man, material, machinery and method.

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EBM

Conclusion
EBM is one the leading biscuit manufacturers in Pakistan merged with Peek Freens around
1960s. Its a national company.
EBM famous product is Sooper biscuit. EBM has one more company in hattar. Product of both
company sales according to region wise. Sooper produces only in Karachi and cater the largest
sales volume.
Purchasing in EBM are all done with collaboration of other departments. Purchasing approval is
the responsibility of head of supply chain. Company outsourced all function at upstream and
downstream level. Company deals with transaction and alliance partners separately. In alliance
relation depends on volume of purchasing & in transaction simple purchasing is done by supply
members.
Company is ISO certified so they are restricted to suppliers visit. EBM have temporary and
contractual workers. Company makes early suppliers involvement in NPD. EBM is a strong
buyer in terms of power because company purchase in high volume from suppliers and have
strong profile in the market. Company issue purchase order for the most capable supplier or
supplier having more capacity.
Company manage inventory on sales volume. Company prefers purchasing and leasing of new
equipments with collaboration of different department like finance, marketing, supply chain, and
technical team.
Company use containers and trucks as transportation usage I saw agile containers there during
visit.
For meeting safety and quality assurance company prefer suppliers visit and recommend
suppliers for any kind of bottle neck can be appear in future. Company makes timely delivery
schedule for the continuity of products to final consumer. Company never wants to compromise
on quality in order to provide high quality biscuits to consumer. Company decreases their profit
margin in order to stable the prices. Companies have a good interaction with their suppliers. In
case of uncertainty both parties cater the lost and manage their relationship in an efficient
manner.
So this report can apparently show that EBM has a strong supply chain network with
collaboration of suppliers and their departments.

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EBM

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EBM
References:
http://www.ebm.com.pk/default.html#
http://en.wikipedia.org/wiki/Peek_Freans
http://www.ebm.com/ english-biscuits-manufacturer-supply-chain?related=2
http://pakbiz.com/English-Biscuit-Manufacturers-Pvt-Ltd/
http://tribune.com.pk/story/741706/biscuit-manufacturers-ebms-story-and-thejourney-that-lies-ahead/
http://www.screenonline.org.uk/film/id/711535/index.html

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