SB FEED MILLS

INTRODUCTION:
History:
The history of Sadiq Brothers Poultry is the history of commercial poultry industry in
Pakistan itself. Over the years it has made phenomenal progress and grown into one of the
leading enterprises in Pakistan. It has the distinction of being awarded commendation
certificate by Govt. of Pakistan for highest Broiler Chicks Production. The Firm has expanded
manifold and diversified over the years. Its allied/sister concerns include two commercial
poultry feed mills, an egg tray production plant, and a Pharmaceutical unit. The Firm has its sale
offices in all the big cities of Pakistan and network of agents in all towns of the country. One
poultry feed mill is located in the Capital territory of Islamabad and the other in the province of
Punjab- a short distance south of Rawalpindi on historic Grand Trunk Road. These mills produce
different types of poultry feed for birds of different age / function groups. The feed formulation
is computer aided. Feed ingredients are subjected to various Lab tests. To ensure highest
quality feed the Firm has established R&D facilities and employed specialist staff headed by
experienced and competent managers who hold Doctorate degrees in nutrition. The quality of
feed produced by these mills ranks among the best. These mills operate around the clock and
produce approximately 12500 M/Tons of feed per month. Its yearly turnover is over Rs 2.00
billion. The work force of the firm exceeds 2000 personnel.
Organization structure:
the structure of the SB feed mill is functional in nature. All the departments of the organization
are working independently in nature without concerning each other. The structure of the
organization starts from the CEO and divides into two Directors which further divides into the
different sub levels and hierarchy continues from top level management to the low level
management.

Products:

Understanding Supply Chain Management:

Sadiq Brothers Feed mill has primary concern with the efficient integration of suppliers,
warehouse, transportation and manufacturing quality product at the right time with efficient
cost. Basically the management of the SB feed mill supply chain is trying to manage the whole
process of supply chain which starts from the supply of raw material to the final finished goods
delivered to the customers in a way to reduce maximum cost and do the task efficiently.
SB feed mill has surplus supplier of raw material located in different cities of Pakistan as well as
some major ingredients imported by other countries. The ware house for the raw material are
mostly out sourced for some seasonal ingredients and have some their own warehouses
required to store the raw material. Special inspection teams are present to inspect the quality
of the raw material supplied by the suppliers and if the raw material is low under certain
criteria then they will not accept the material or apply certain penalty charges. SB feed has two
main manufacturing plants which has the maximum capacity of 24000 packs per day each plant.
These plants are used at their maximum capacity to fulfill the customer demand. The
distribution network of the feed mill is outsourced on contract basis with the different
contractors to save the extra investment in this department. SB feed mill has different
franchises in the major cities of the Pakistan which helps in providing the order from different
customers. In the end the finished goods are directly provided to the customers according to
their demand. In this way the whole supply chain is managed by the managers.



supplier
manufacturing
plant
distributor retailor final customer
Planning:
SB feed mill is a strategic organization who has always concerned with his long term planning.
Since it is a manufacturing organization so it develops a manufacturing plant for the long run
period of time to produce feed for the poultry form. The planning is always strategic and long
term in nature to run the plant.
Competitive strategy:
Cost:
Cost plays a vital role in the competitive edge for any organization. In our organization
the product cost is same as the standard cost of the market but the main cost factor is
controlled in the manufacturing department with the help of the fully automated plants
and highly equipped warehouse which reduce the operation cost of the organization.
Availability:
The availability of the product in the market also plays an important role to give the
competitive edge. To meet the needs of the customer and the availability of the product
there are certain centers in different cities of Pakistan as well as an extra plant has been
in building process.
Quality dimension:
This is the most important aspect for the competition and is the primary focus of our
organization due to which the cost of SB feed product is slightly higher than other feeds
because of better quality product. The quality dimension of our organization is to
provide the best standardize product for the poultry farm for the better growth of meat
and other things.
How is strategic fit achieved?
understanding the customer/demand supply uncertainty:
The customer demand uncertainty can be in terms of the availability o the product
which includes the range and variety of the product other than this the lead time or
response time and also the service level of the organization can be involved.
SB feed mill in terms of understanding the uncertainty in customer/demand supply is
very good. There is no variety of the feed in its product only standard feed for certain
groups has been made according to the demand of the customers on daily basis which
helps them to reduce the factor of availability of product. The average lead time of the
product to be manufactured and delivered to the customer is 24 hrs which is
acceptable in market. As such there is a very rare case of the uncertainty in customer
demand if occurs for example occasions or in holidays customer mostly stock the
product and after the occasion or holidays the demand is high for this organization has
already prepared. In case of our organization there is a certain demand supply.
Understanding the supply:
To understand the supply of the organization the important things can be the
breakdown, communication gap and innovation in supply channel.
SB feed mill in terms of understanding the supply is also efficient. There is no
uncertainty in supply of the product to the customers as the supply chain management
is very efficient. So the understanding the supply of the organization is certain as they
supply and produce with effective.

There is a graph chart which is showing the strategic fit of uncertainty of demand and
supply. As the demand of the customer is certain so in response the supply of the
organization will also be certain and hence they will perfectly lie in the strategic fit
zone.
Strategic fit:
The strategic fit of the organization basically includes the two dimensions which are the
efficiency and the other is responsiveness. The organizations who focused only on the
production in terms of high volume and economy of scope are put into the phase of
the efficiency and the organizations who focus on the customer satisfaction according
to the needs of customization, range, lead time etc are put into the responsiveness
phase.
SB feed mill is basically the manufacturer of the standard feed which is same for all the
customers. but the difference is in term of economy of scope where they have more
than 30 products of standard ingredients for the different age of breed animal.SB feed
is focusing on fulfilling the customer needs in terms of high volume with low cost. So SB
feed mill will be put in the efficiency side of the strategic line. However, for some
customer they can use the medication process on demand by the customer which is
the act of responsive organization and a little part of our organization lies also on the
responsive side. The diagram of the strategic fit is as follows:
The colored portion shows where the SB feed mill lies on the strategic fit bar.
As the organization is becoming efficient in nature the cost of the unit product will goes
on decreasing. Following graph will show the relation of efficiency and the cost:


Characteristics of Efficiency model organization:
Particulars Efficient organization
Primary goal Cost
Pricing strategy Low pricing
Manufacturing strategy Max. Capacity utilization
Lead time Low lead time
Inventory strategy Low inventory
Supplier strategy Cost+Quality
Supply chain Drivers:
There are two types of drivers:
1. logistics drivers
2. cross functional drivers
Logistic drivers:
Facility:
Facility include the physical existence of things like the manufacturing plant,
warehouse etc. Facility has very important role and also a great impact on the logistics
of the organization. In SB feed mill there are two manufacturing plants and their daily
capacity is about 24000 packs per day each plant. They are meeting the demand o the
customer on daily basis and demand is so high that they have to skip or reject certain
demands sometimes. To overcome this issue they are now establishing the third plant
to meet the demand of the rest of the market. Sb feeds has recently build a new ware
house with highly advance equipment this also effect the handling of the inventory of
raw material and reduce the cost of the organization.
Inventory:
Inventory is also one of the key factor which drive the logistics of the organization. In
SB feed mills the inventory come on daily basis to fulfill the demands of the customer.
They require no such big warehouses for the stock inventory as they dont need it. For
this purpose for some seasonal ingredients like corn etc they out sourced their
inventory stock to the supplier ware houses to reduce the cost of their own.
Transportation:
Transportation system of the SB feed mill is fully out sourced to the different
contractors. This is because that the range of routes for the delivery of product is very
long and if the company has its own transportation system they will suffer loss. To
reduce the cost of transportation they out sourced their transportation to the other
contractors to save their investment and cost.
Cross functional drivers:
Information:
Information is one of the key factor of the cross functional driver which helps in
different aspects to the organization. to reduce the communication gap between the
customers and the manufacturer SB feeds have located different franchises in different
cities of pakistan like sargodha, chakwal, jehlum, okara etc to have proper
communication with their clients and recieve their orders.
Pricing:
Pricing is also an important cross functional driver. SB feed mill has the standard price
of their product as per set by the market. but the main thing which helps the
organization to compete is the discount percentage in which SB is providing a discount
of 9 % to the customers.
Sourcing: