H I LA L C O N F EC TIO N A RY ( P V T. ) LIM ITED

Supply Chain Management

G R O U P M E M B E R S

Supply Chain Management

Abid Hussain (12830)

Hasan Ahmed (10231)

Razi Muhammad Shadab (15257)

Usman Uddin Khan (10818)

Yousuf Ali Badshah (5158)

Company Profile

Hilal Group

Domino Pizza, etc

King Foods Hilal Confectionery

Shalimar Foods

Company Profile

Hilal, along with its ancillary concerns, currently holds

the title of market leader in confectionery, and it

envisions to not only maintain this position, but also to

replicate this success in new product categories also.

Being number one means having to anticipate the

customer’s needs and desires. No one does this well than

Hilal

V IS I O N

Company Profile

To maintain our status as market leader of the local

confectionery industry while expanding in the global

arena through a continuous strive for developing the

highest quality products that meet consumer needs.

M I S S I O N

Company Profile

R ES EA R C H & D EV ELO P M EN T

• Market Surveys (Local/ International)

• Innovative ideas testing

• Product development (Playing with unique blends of

flavors, colors, and packaging)

• Sampling

• New or changing market trends

Company Profile

Q U A LITY A S S U R A N C E

• Quality products through latest technology, sophisticated

tools and state of the art testing labs

• Quality assurance programs at all levels

• International Standards• USP (United States Pharmacopoeia)

• B.P (British Pharmacopoeia)

• AOAC (Association of Official Analytical Chemists)

• FCC  (Food Chemical Codex)

• FDA  (Food and Drug Administration)

Company Profile

C O R E VA LU E

• Quality control by using modernized plants

• Automization is encouraged

• Innovation through latest technology utilization

• Optimum utilization of qualified staff

• Custom software integrates with all departments

Company Profile

C O M P ETITIV E S TR ATEG Y

• Low cost provider strategy

• Delivering superior value with low price

Industry Profile

20%

12%

15%12%

41%

Market Shares %

HilalMayfairCandylandJoJoOthers

Market Profile

• National

• Pakistan (Rural/ Urban)

• International

• UK, Jordan, Lebanon, UAE, Afghanistan, South Africa, Congo,

New Zealand, Maldives, Sri Lanka, Bangladesh, etc

Product Profile

1. Chocolates (Choco 4, Choco Biscuits, etc)

2. Wafers (Bar Bar, Roller)

3. Candies (Aamrus, Chhoran Chatni, Khopra candy, Super Sour, etc)

4. Jellies (Pizza jelly, Mix Fruit jelly, etc)

5. Powder Drinks (Thanda Orange, Limopani, etc)

6. Bakery (Kake)

7. Chew Toffees (Milker Gold, Line Up, etc)

8. Pan Masala (Tulsi, Rasily, Mughal, etc)

9. Chewing Gums (Zoom Gum, Kool Gum)

10. Gift Packs (Double Gift Pack, Fancy Gift Pack, etc)

11. Bubble Gums (Ding Dong, Fresh Up, etc)

Supply Chain Structure

Planning•Aggregate

Procurement•Raw Material•Packaging •Technical Items

Warehouse•Raw Material

Logistics•Inbound•Movement/ transfering of goods

Production•Bubbles•Baking•Candies•Jellies

Warehouse•Finished Goods

Transportation

Customers•Distributors•Retailers•Export

Participants of Supply Chain

Drivers of Supply Chain

1. Production

• Little excess capacity

• Narrow focus

Drivers of Supply Chain

2. Inventory

• High inventory

• Wide range of products

Drivers of Supply Chain

3. Location

• Central huge plant in Karachi serving the globe

Drivers of Supply Chain

4. Transportation

• Large, few shipments

• Frequent shipments

Drivers of Supply Chain

5. Information

• ERP

Drivers of Supply Chain

6. Sourcing

• Total of 160 vendors (Vendor Approved List)

• 107 raw materials

• 53 packaging

• Lead time for local purchase is max 10 days

• Lead time for Imported purchase is max 120 days

Drivers of Supply Chain

7. Pricing

• Under Construction

Push and Pull Bounder

Push and Pull Bounder

1. Fresh up (Paper mint)

2. Fresh up (Ice mint)

3. Fresh up (Strawberry)

Strategic Fit at Hilal

1. Traditional system to corporate strategy

Production Planning and Control

• Forecasting

1. Trend analysis

2. Bottom up approach

3. Marketing campaigns, seasonal variability and

cannibalization effect.

Production Planning and Control

• Aggregate planning

• Centralized aggregate purchase

• Safety/ buffer stock

• Chase production strategy

• Fifo

• Almost 600 SKUs

Bill of material (Bom) of Fresh up

Raw Material

1. Gum base

2. Gel

3. Sugar (Regular)

4. Sugar (Crystal/ Refined)

5. Glucose 43

6. Glucose 45

7. Lactose

8. Menthol

9. Artificial Flavors

10. Colors

Packaging Material

1. Wrapper

2. Pouches/ Jars

3. Boxes (Inner/ Outer tray)

4. Cartons

5. Miscellaneous (Tape, Stickers)

ABC Classification

Sugar, Glucose, Gum Base, Lactose

Colors, Flavers, Flour, Menthole

Tape, Stickers

S.No Particulars Availability Lead Time Sourcing Wastage

1 Gum base Local 10 days Many 0.0001%

2 Gel Local 10 days Many 0.0001%

3 Sugar (Regular) Local 10 days Many 0.0001%

4 Sugar (Crystal/ Refined) Imported 120 days Single 0.0001%

5 Glucose 43 Local 10 days Single 0.0001%

6 Glucose 45 Local 10 days Many 0.0001%

7 Lactose Local 10 days Many 0.0001%

8 Menthol Local 10 days Many 0.0001%

9 Artificial Flavors Local 10 days Many 0.0001%

10 Colors Imported 120 days Single 0.0001%

11 Wrapper Local 10 days Many 2%

12 Pouches/ Jars Local 10 days Many 0.005%

13 Boxes (Inner/ Outer tray) Local 10 days Many 2%

14 Cartons Local 10 days Single 2%

15 Misscelleonus (Tape, Stickers, bopp) Local 10 days Many 2%

Raw Material Quick Profile

Sourcing

• Total of 160 vendors (Vendor Approved List)

• 107 raw materials

• 53 packaging

• Agents (local/ Import)

SourcingKRALJIC Model

Sugar, Glucose, Milk powder, artificial flavors

Flour, Stationary Items, Canteen Items, Janitorial.

Coco, Fragrance, Taste makers, artificial flavors

Glucose 45 by Rafhan maiz

Distribution Strategy

• Distributors , Retailers, Export agents

• Advance/ Cash payment

Transport Network Design

Thank You