Project Report of “Supply Chain

Management”

ON

Logistics MANAGEMENT

Submitted to:Mr. Anas Iftikhar

Submitted by:Kiran Fahim (6532)

Sehrish Fatima (6698)

Shela Khiliji (6324)

Unsa Zulfiqar Ali (6045)

Submission Date:Date: December, 19 2012

1

ACKNOWLEDGEMENTS

By the grace of Allah Almighty, we have successfully

completed the term report of our “Supply Chain

Management” project on "Logistic Management."

The project was allocated to our group by Mr. Anas Iftikhar.

We are thankful to him for giving us a chance to visit an

organization and gain knowledge of about the procedure of

supply chain and logistics management. This will definitely

help us in enhancing our managerial and creative skills.

In our successful visit to the organization named “The TAQ

Organization”, we are thankful to several people without

whom our visit and accomplishment of project would not

have been possible. We would like to thank our families for

their support and coping up with our nonexistence. Our class

fellows and friends also helped us by means of their

suggestions, ideas and thoughts.

At last but not the least, our group members are truly

thankful to each other for supporting and complementing

each other at any time as needed.

2

LETTER OF AUTHORIZATION

December, 19 2012

Mr. Anas Iftikhar

Course Facilitator,

Iqra University,

Gulshan Campus,

Karachi.

Respected Sir,

This is the final project report of “Supply Chain Management” based on

the study of Logistic Management and visited to “The TAQ

Organization” as requested to being submitted to you on December,

19 2012 during the fall semester 2012. The main purpose of this report

is to obtain all the as possible information as about different elements

of Supply Chain Process.

Sincerely,

Kiran Fahim

Sehrish Fatima

3

TABLE OF CONTENTS

EXECUTIVE SUMMARY............................5

TAQ wins Consumers Choice Award 2011 .....................6MISSION STATEMENT.............................................7Company Core Values............................................7Work Enviorment...........................................................8Human Resource Care....................................................8Training And Improvement.....................................8

Services.........................................................................9Air Feright Export..........................................................9Ocean Freight Export ....................................................9Overland Transportation...............................................9

Multiple results for Air & Sea Freight

Imports….. 10

Multi-Modal Transportation ….

…………………………... 10

Project Management

………………………………………….. 10

Purchase Order

Management………………………...... 11

4

Warehousing and Distribution Services

………….. 11

Custom House Brokerage

…………………………………… 11

Entire Transport Service ………………………………….. 11

Display Freight

Handling………………………………….....11

SUPPLY CHAIN QUESTIONAIRE

…………………………… 12

Reference

……………………………………………………………..

18

EXECUTIVE SUMMARYThe TAQ Organization (TTO) is Pakistan's most important group

occupied in international transportation, forwarding and logistics

business. The business that began its operations over 40 years ago

keep on move forward presenting extensive range of services. Its

range of activities included international freight forwarding

(inbound/outbound), supply chain logistics, industrial project

handling, transit trade movement, land transport by rail/road,

5

door-to-door delivery, wholesale freight management, custom

house brokerage, risk management, insurance facilitation, and

education and training.

TAQ having a wide network of warehouses at strategic localities and

offices in eleven cities controlling all major export and import center’s

of Pakistan at Karachi, Lahore, Rawalpindi, Islamabad, Sialkot,

Faisalabad, Multan, Peshawar, Gujranwala and Sukkur. As well as in

different foreign country, the organization has an ambassador office at

Toronto, Canada. TAQ offers its clients the exclusive blend of local

market know how and worldwide vision. It has the volume clout to

bargain favorable duty and service package with carriers.

6

TAQ wins Consumers Choice Award 2011 for Best

International Logistics Services

The TAQ Organization (TTO) was awarded Consumers Choice Award 2011 for offering best international logistics services at a ceremony held at Pearl Continental Hotel Karachi on February 22, 2012.

Leaders of trade and industry, as well as senior representatives of leading brands from different sectors, including durables, services and FMCGs, were present to receive their awards in their respective categories.

In all 104 brands were selected on the basis of a survey conducted by Consumers Association of Pakistan. TTO was chosen from the freight forwarding and logistics sector. Each award winner was given a trophy and certificate. The event was covered extensively by the print and electronic media.

7

MISSION STATEMENT

To be a leading global organization of the region

in the fields of transportation and modern

logistic systems,

We will try hard to win the

confidence and respect of our customers as

reliable, responsive, skilled and highly caring

organization providing global logistics solutions of

higher international standards.

While always being conscious of our responsibilities

towards society, maximum growth and

development of all individual in TAQ Logistics

team and best possible returns to our stockholders.

Company Core ValuesThe TAQ Organization's survival and expansion is administrated by its

real core standards and that is to make available the best possible

service to its clients; to sustain its reputation as a reliable, responsive,

expert and concerned organization; to be law permanent; and to

energetically struggle in satisfying its responsibilities towards the

society.

8

Work EnvironmentTo continue and maintain healthy and pollution-free environment, both

within the organization premises and outside, and to contribute and

support efforts aimed at its conservation and restoration for our own

selves and for the upcoming generations.

Human Resource CareTo promote and retain a secure and healthy work environment for

workers, and to support or cause to support them and their families in

medical and health emergencies within the structure and to the best

level approved by the organization.

Training and ImprovementTo provide equivalent opportunity to all team associates for improving

their talents and careers, also permitting them to efficiently handle

with consequences in professional and personal life to sustained

growth and improvement of customers' business and our own.

9

ServicesAir Freight Export

Export air freight, including pick-up

and overland transportation,

export consolidation,

documentation, warehousing,

customs clearance, airport

handling etc.

Ocean Freight Export

Export ocean freight, including pick-

up and overland transportation,

export consolidation,

documentation, CFS and

warehousing, container stuffing as

per the distribution plan, customs

clearance, port handling etc.

Overland Transportation

Domestic overland rail and road

transportation, bonded and un-

bonded, shippers premises to dry

ports, to ports/airports for export,

ports/airports to dry ports to

consignees for imports

10

Multiple results for Air & Sea Freight

ImportsFor imports of commodities by air and sea from Europe, North America,

Far East or else any other part of the world TAQ offers tailor-made

services, the salient features of which are modified resolutions, on-time

delivery and overall investments in landed costs.

TAQ has the experience practice of handling complete range and

variety of import commodities. In line by means of the requirements of

its clients it has product specific services. For example, for life savings

drugs the services are designed to convene special care requirements.

For textile accessories time-definite aspect is given the top priority and

for extra-large import shipments the advantages offered are modern

innovative and creative handling. In other words, whatever the volume

and sort of shipment TAQ has the experience and capital to provide the

right solutions.

Multi-Modal TransportationSea-Air and Air-Sea multimodal transportation, combining overland

transportation, both bonded and un-bonded

Project ManagementTAQ Logistics Solution (TLS) is the devoted brand of The TAQ

Organization (TTO) for one-window project logistics. Specially adjusted

to delight today's customers, TLS has the potential and experience to

handle big or small projects, organization the complete transportation

and logistics of shipments creating from any part of the world to the

project site in Pakistan.

11

Purchase Order Follow-upPosition reports from production to dispatch, examination and capacity

confirmation as per purchase order, shipping papers compilation and

dispatch and other position reports required by the consignees.

Warehousing and Distribution Services

TAQ Logistics Solutions has a nationwide infrastructure of offices and

warehouses prepared to handle delivery and inventory management to

support with the largely logistics compulsory to meet customer needs.

The entire system provides the communications procedure and

supports the commitment to quality and total customer fulfillment.

TAQ has obtained this specialization over a number of years and now

are totally equipped to assist its customers in their inventory and

sharing cost optimization hard work without compromising on

excellence.

Custom House BrokerageTAQ offer export and import traditions clearance conveniences at all

customs ports of Pakistan. Devoted, skilled and professionally taught

workforce for each item of export and import.

12

Entire Transport ServiceTAQ is an entirely service logistics partner, covering up all type of

transports, products and services. Dealing with TAQ means a only

source solution to all export and import freight forwarding needs.

With its huge covered CFS/warehouses at Karachi, Lahore and

Islamabad, additionally to enough cargo space facilities in each city

where it has its offices and also has well prepared to provide a total

transport service idea. Mutually with demanding use of e-mail and

electronic data switch over internet, involving all its offices in Pakistan

and its abroad counterparts, TAQ has the responsiveness and

dependability that goes with its promise to the total service concept.

As of the customers point of vision the total transport service concept

involves extensive savings, as well as greater all-round services, more

so in import for re-export cases.

Display Freight Handling

TAQ provides a tailor-made product for movement and managing of

display freight goods - in close teamwork with Trade Development

Authority of Pakistan (TDAP). Firmly a one-window action our services

cover all portions of transportation and logistics, counting special

documentation and managing at foreign objectives required for display

goods.

For further queries in this regard you are welcome to contact our

Branch Product Managers (Export) at any of our countrywide network

of offices.

13

SUPPLY CHAIN QUESTIONAIRE

TAQ Cargo offers a diverse range of complete services which are

discussed upon meeting & inquiring different services form various

supply chain personnel’s.

Briefly explain what the Taq cargo is?

TAQ Cargo is a multi dimension organization that is providing key

logistic services to its customers. It works as an intermediary between

Suppliers often called (Consigner) & Purchaser (Consignee). Whenever

the supplier & customer come in agreement to sell or purchase some

goods, in the act of bringing that good the logistics serves as a life

blood for smooth delivery of material to the destination port, Taq cargo

serves the same

What is the Size of Ware House and it’sAllocation

27500 sq ft x 4

Storing depends upon the size of boxes

Sales department tell about the allocation and customer needs

how much of space needed

Warehouse keep all material of zong

14

How goods are imported by Sea or Air?

Whenever the supplier & customer are in the process of negotiation

they must discuss about deliver mode either by sea or Air.

In the event of delivery by sea, the two terms are quite prominent

FOB =Freight on Board -It includes the cost of good but freight has to

paid by consignee.

CNF= Cost with freight charges are Included

In case of FOB shipment by sea, the consignee nominate the freight

forwarding company however in CNF it’s the responsibility of Consigner

i.e.; supplier has to arrange the forwarding services of goods at the

port of destination

All shipment via Air is generally CNF basis, Air Freight is USD $ 5/kg

usually depending upon quantity & air carrier.

What documents are necessary in the event of Good

clearance?

Usually shipments by Air are immediate; however in sea shipment it

took 4 – 12 weeks to reach the consignment at destination port

especially from china. Once the goods reaches to Karachi port, the

nominated agent of forwarding agency contact the consignee

(Customer) to collect the goods.

The consignee would then bring original document like Invoice, Packing

list, Master Airway bill / Bill of lading, Certificate of origin, (Form 3, 5 &

7) with custom clearance letter. The forwarding company then issue

Delivery order commonly called as (D.O)

15

What the D.O is & what charges does it have?

Sea freight shipments are charged "per cubic metre" therefore we

would always need to know the size of the shipment before we can

advise the final cost. Delivery order is the document which is issued by

freight forwarding company to Consignee, it includes different charges

like; Dock charges, Cargo space charges, Machinery charges, cargo

loading unloading charges, Port chargers, demurrage in case of late

clearance etc

Demonstrate the application of supply chain

management in your company?

The core component of Supply chain is Logistics, at Taq cargo we have

big warehouse where goods are stored & issue to customer in bulk or

as per their request

What are the benefits of making long term relations

with your clients?

We have acquire 5 yr forwarding contract with major

telecommunication operators like Zong, Telenor & PTCL these long

term contracts are benefiting us to increase our market share in

industry & attracting new prosperous customer

How does your organization work? Lean or agile

supply chain?

At Taq cargo our prime focus is on toward lean supply chain facility to

customers, because this helped us in efficient planning, cost saving,

reduce wastage & timely availability of inventory needed by customers

in future

16

Do you practice velocity principle?

The warehouse ensures the velocity principle. Material that is to be

sent through outward are kept at the exit gate and place where inward

logistics deliver material is kept free so that it is shifted in correct and

allocated place.

Do you have procurement department? What items

you procure most?

We do have warehouse that work in accordance with the planning &

material needs of customer. Requisition of new equipments &

machineries are interlinked at all end through integrated management

system. These help us in understanding customer’s requirement.

Are you serving domestically located items or

emphasize on imported goods?

We are offering import & export of material we have domestic &

foreign customers all around the world

What challenges you encounter during Supply chain

process?

The major challenge is timely availability of goods, the lead time for

sea shipment is 4-12weeks however material efficient planning,

ordering & correct deliveries are key factor for success of supply chain

specially logistics

What is your inventory management process? How it

works?

The business is basically about logistics and of both inbound and

outbound the shipment when received is carried through trucks (which

17

are out sourced) in the warehouse which is situated in Shah latif

town.The warehouse manager is responsible to manage the inventory

by properly staging the material according to respective category,

client, batch Number & sequence. Every material shipment get

recorded & updated via ERP system

Do you have ERP software?

We have implemented ERP material management system module that

help customers & suppliers in real time recording, updating,

controlling, forecasting & ordering material periodically

What is your current project in progress?

Our present 5yr project with Zong & telenor is under progress. Telecom

equipment as imported from china by zong for it’s upcoming 3G

service in Pakistan & old telecom equipment being brought back to

warehouse.

What logistic services you offer your customers?

We offer outbound services for distribution of material from warehouse

to all Pakistan & inboud services from china, in order to bring material

at warehouse

18

What kind of warehouse services do you offer?

The customer delivery basically depends upon the parts ordered by

telecom companies. zong Pakistan basically import manufactured parts

from China which are used in telecom towers in entire city and so are

ordered by telecom companies so zong basically sells these parts to

TELENOR and its self Zong in karachi. The delivery is made when an

engineer who is sitting at warehouse receives a mail from customer its

usually in early morning and it is delivered to them in 24hours.The

warehouse manager receives the mail hard copy and then start

outward logistics.

Do you practice cross docking?

Cross docking is there but Taq distribute material on daily requirement

What is your cycle count?

The cycle count is an important aspect to know about inventory the

ware house does it weekly and reports the zong so that it can adjust

with its customers.

Reference

http://www.taq.com.pk/index.php

http://www.google.com/imghp?hl=en&tab=wi

19