INTRODUCTION

Pakistan's premier one-stop distribution company. Celebrating a rich heritage of service at its best in the
pharmaceutical, healthcare and FMCG sectors since its establishment and the impressive development
of refrigeration in the movement of all temperature-sensitive products, we are moving forwards,
adapting our business models in response to an acceleration of changing business conditions.

QUALIFICATIONS INCLUDE
 Over 6 decades of experience in distribution and marketing
 Fully computerized MIS tailored to your needs
 Quality and safety programs in place
 Close security for exceptions for meticulous distribution
 All warehousing and delivery operations are real-time and on time
 Customized delivery services for pharmaceuticals, healthcare and FMCG anywhere
 Ali Gohar provides the complete line of storage handling and delivery services. Be it
pharmaceuticals, healthcare or Fast Moving Consumer Goods, we are the strongest link for a
smooth supply chain

VISION
Our vision is to be a dominant distribution company in Pakistan for pharmaceuticals, healthcare and
selective consumer products, providing high levels of services at par with global quality standards.

CORE VALUES
 Ownership
 Team work
 Continuous Progress
 Transparency

TECHNOLOGY
AGC houses one of the advanced IT infrastructures to support its operation all over Pakistan. It is
completely process driven and covers end to end processes including entire field force operations. AGC’s
field force operatives are equipped with hand held devices which allows AGC to record the order and
confirm the delivery of your product on real time basis. With the help of GPS and GPRS enabled
technology, AGC sets all eyes on your product when it’s on the more until it reaches its designated
destination.

AGC’s financial and inventory management system is powered by JD Edwards’s enterprise application,
which is globally renowned for its extensive industry coverage.

AGC operations are completely integrated through MIS. Having our operations streamlined helps us to
analyze business information separately in detail on real time basis. We provide access of our online
module to our clients, where they can monitor the movement of their product and generate reports and
analysis based on various categories like forecasting, demand analysis, sales analysis etc.

With AGC your company’s length is enhanced to cover country wide logistics and distribution, with 360
degrees coverage from warehousing, order processing, delivery, forecasting, demand analysis and
marketing.
 DIMENSION OF TRADE OF LOREAL
There are two types of trade which is done by the L’Oreal:
1- General Trade
2- Modern Trade

WHAT IS GENERAL TRADE?

A general trade is a type of trade in which average products are produced. The Target Market of this
type of trade is small marts and small super stores.
The General Trading is handled by IBL ( International Brands Limited)

WHAT IS MODERN TRADE?

A modern trade is a type of trade in which high quality products are produced. The Target market of this
type of trade is well known and giant super stores.

In Modern trade there are also two types these are:-

1- LOCAL: It includes local well known super stores like Imtiaz, Naheed etc.
2- INTERNATIONAL: It includes international superstores like MAFF, CSD, and METRO etc.

The Modern Trade is handled by AG&C

PARTICIPANTS INVOLVED IN SUPPLY CHAIN

 L’Oreal
 AG&C
 Supermarkets

SUPPLY CHAIN PROCESS OF AG&C

 Ali Gohar and L’Oreal work together.
 AG&C and L’Oreal forecast’s the demand together. (Annually, Semi-Annually and Quarterly)
 According to the demand the products are produced.
 AG&C purchases the products from L’Oreal.
 The products are then distributed to its customers which are the well-known supermarkets only.
 The Daily demands are noted by the BA(Brand Ambassador) of the L’Oreal.

WAREHOUSE
 The stock purchased from L’Oreal is directly stored to CENTRAL Warehouse.
 From Central Ware house the 45 days stock is stored in Regional Ware house.
 From Regional Ware house the stock is distributed to the Super Stores.
 In case some item is short it is delivered through regional ware house.
 If the product is not in the regional warehouse then the product is brought from central
warehouse.
 If the product is not in the central warehouse then the product is directly ordered and brought
from L’Oreal.
 FORECASTING TECHNIQUE AND TOOLS

Quantitative Technique:
Future demand is forecasted on the basis of historical patterns of demand. Marketing Department uses
its research method to forecast the demand.

Naïve Approach:
It uses the demand of the past months to forecast the next upcoming month’s demand.

Exponential Smoothing:
The demand of the particular product is predicted with the season.
Like L’Oreal Skin perfect, Ideal Moisture in winters.

SALES AND DISCOUNT OFFERS

Whenever we visit any of the super stores and we see the sales offer on the
L’Oreal products. It is not the superstore giving the benefits from its own.
The owner of the superstore make a deal with AG&C. AG&C then make deals with L’Oreal directly. The
profit earned from those products is then divided between the superstore AG&C and L’Oreal.

CAPACITY PLANNING AND STOCKS

They do the capacity and stock planning through CPFR. Also the stock is centralized with the
superstores. How many units are being sold and required in the superstores are daily updated through
the Integration system as well as through BA. However, it is mandatory to hold the 45 days stock in the
warehouse.

VERIFIED CUSTOMERS
 Verify about the customers through market knowledge.
 Assure that the customer do not have liabilities.
 Assure that the customer is making a fair deal in the market.
 Assure that the customer practice health and safety practice.

LIQUIDATE PRODUCT
When the stock is becoming old and it’s not selling the AG&C launches the promotion offers, discount
offers or clearance sales etc. Because they have purchased it from L’Oreal and if they do not sale it, they
will bear the loss.

CHALLENGES FACED BY AG&C

 Since they are dealing with the modern trade and prices are high it’s difficult for them to attract
the customer.
 Transportation Cost is getting higher day by day.
 Gvt Policies are getting tighter day by day.
 Competition is increasing day by day.
 RECOMMENDATIONS
 AG&C should force L’Oreal to manufacture cost efficient product in modern trade.
 Should focus on advertisement
 Should have different price of range of specific products.