Professional Documents
Culture Documents
MBA SECTION: B
GROUP NUMBER: 9
HISTORY------------------------------------------------------------------------------------------- 4
K&N’S BACKGROUND------------------------------------------------------------------------- 4’
RECOMMENDATION---------------------------------------------------------------------- 9
APPENDIX-----------------------------------------------------------------------------------10
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History
In 1964 when Pakistan was a young and independent nation moving towards a dream of self sufficiency
in food production. Improper nutrition food remained the major proper in Pakistan. Majority of the people
died because of the diseases such as protein, vitamins and minerals deficiency. Poultry production was the
quickest and the least expensive way of filling the gap and eliminate the diseases which were there.
A man named Khalil Sattar saw this vision and opportunity in January 1964 of filling this gap in the
market to establish a poultry farm. It was his interest due to which he started a broiler farm of around
1000 chickens. That was the beginning of K&N’s where providing best nutrition for the health and
About K&N’s
K&N’s is the founding pillar and beacon for Pakistan poultry industry- started in 1964 with a single-
minded objective of providing better nutrition for health and happiness of the nation. Building on years of
poultry expertise, and a commitment to food-safety, K&N’s integrated all poultry production activities
under one umbrella to ensure quality and food-safety by managing and controlling all stages of
production. It is a marvellous food industry located at Raiwind. It deals with poultry processing. K & N’s
Poultry processing is integrated business containing essential components like breeder farms, hatchery,
and broiler growing farms, feed mill and poultry processing plant. K & N’s is main supplier of eggs in
Pakistan and is the biggest poultry industry in Pakistan. Formerly K &N’s food was M.ARTAL Poultry
Int’l Private Limited. M.ARTAL was Belgium base. It was registered in Holland. M.ARTAL Poultry
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Integrated Supply Chain Management
Integrated supply chain management refers to an enterprise resource planning approach to SCM. A
business facilitates relationships with all of its suppliers and manages all distribution and logistics
activities through a centralized system rather than having multiple systems within the organization.
Concentrated professional expertise and cost efficiency are core benefits of SCM, but developing
collaboration is an obstacle.
Integrated supply chain benefits in number of ways. Major advantage of Integrated Supply Chain
Management is the cost efficiency. With an integrated system, you are one buyer purchasing larger
volumes of goods, which enables you to get lower prices. The company also is able to have a
smaller, dedicated staff in its SCM function than it likely would if it were paying people in all
Another factor is Flexibility which is ability to adapt to different situations. T his allows businesses
to perform work more quickly and fluidly than it would be possible with a traditional logistic
model. One example of this flexibility is just-in-time capability, in which just enough freight is used to
meet daily demand. This limits the amount of warehouse space used and helps keep costs down. While
very beneficial to a company’s costs and space, this method can be detrimental if the supply chain
isn’t effective or responsive enough, limiting inventory and creating delays and ultimately costing
more than the savings are worth. However, it also makes you eliminate the waste. Integrating your
supply chain will dramatically reduce waste in several areas. You will save on space in warehousing
due to better route management. This will also save on emissions helping you to meet low-waste
environmental goals. Trucks will be filled on every leg of the route maximizing cube and ensuring that
you don’t have empty trucks driving around. This means that you will be more efficient and save
money.
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K&N’s Integrated Supply Chain Practices
Poultry Breeding: K&N’s maintains layer and broiler parent stock populations in different regions of
Pakistan. Layer parent stock farms are located in the south and broiler parents are bred in the colder
mountainous northern region. Both types of parents are housed at isolated breeder farms. K&N’s operates
several strategically located hatcheries covering all day-old chick markets to ensure delivery of high-
quality layer and broiler day-old chicks to commercial farmers throughout Pakistan.
Hatching: All hatcheries are equipped with most modern cooling, heating and humidification systems to
provide a uniform and consistent hatchery environment independent of varying outdoor weather
conditions. Incubators from world-renowned manufacturers are installed at all hatcheries and their
Boiler Growing: In addition to supplying day-old chicks to farmers, K&N’s is also engaged in broiler
growing at company owned farms to produce broilers for our poultry processing plant. Under the
watchful eye of their own poultry nutrition, health and housing specialists, they grow-up in large, clean
and airy houses equipped with state-of-the-art heating, cooling and ventilation equipment. The chickens
freely strut around, breathe fresh air, eat at will and drink fresh, cool and pure water. They really mean
pure water as their chickens do not drink water from troughs, which can lead to water contamination.
Feed Milling: To ensure consistent performance with high standards, our chickens really live on a
healthy and well-balanced diet. It is based on: natural grain products such as corn, corn gluten, rice and
wheat; oil seed meals such as soybean, canola and sunflower; fish; oyster shells supplemented with multi-
Poultry Processing: After Halal slaughter, chickens are processed in the most hygienic and automated
manner. During processing, the birds are washed inside out and our veterinarians constantly examine the
birds to confirm they are wholesome. Cleaning is constant and each evening the entire operation is
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K&N’s Supply Chain Strategy:
Supply chain in K&N’s is all about movement of goods from supplier to a customer as well as the returns
from the customers or their service needs. The information flow involves getting orders of the chicken or
any of their product division, making sure the production is ready, ensuring the goods are ready and
packaged for delivery, goods are delivered to the customer on time. Supply chain of K&N’s can be
Supply Chain Goal: To reduce the inventory (Products available when needed) (JIT)
Supply Chain Management: Coordinating and integrating within and among companies
NORTHERN SOUTHERN
CENTRAL
(RAWALPINDI REGION
AND (LAHORE)
(KARACHI)
ISLAMABAD)
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Reasons for maintaining Raw Material Inventory
K & N’s have raw material inventory warehouses attached to the production facilities where raw
materials, consumables and packing materials are stored and issue for production on JIT basis. The
reasons for holding inventories can vary from case to case basis.
Warehousing/Storing Management
Inventory Management and Warehousing/storing form a part of operations intensive function and is one
of the key building blocks in the entire chain. Most of the inventory is held at the warehouses and storing
as compared to the pipeline, and the efficiency of the warehouse operations will determine the further
supply chain efficiency. Though it is a normal industry practice now to outsource the warehousing
operations to a 3PLLogistics service provider but K & N’s supply chain management believes to build its
own warehouses and cold storages to reduce costs and keep its inventory in safe environment.
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Recommendation
The only recommendation for K&N’s is that they should use a warehouse management system which will
control their inventory and the demand of their products can be met more efficiently and cheaply. The
1. On the inventory front, the system maintains inventory in the warehouse at Zone & individual location
level, SKU level, pallet wise, carton wise and unit level inventories for multiple customers and allows
specific inventory attributes and parameters to be built in to manage, allocate or block the inventory. The
system also provides options to adapt FIFO method as the products are perishable.
2. On the Operations front the system manages, controls and directs all operations including receiving
processes, put away processes, order processing, inventory allocation, picking process, packing process
and finally shipment along with inventory updating. The K & N’s intelligent system guides and helps
operations manager to schedule and manage all operations for various groups and teams simultaneously
depending upon the work load and pattern and thereby manage resource allocation too
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Appendix
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Supply Chain Framework K&N’s
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Distribution Network K&N’s
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MBA SECTION: B
LAHORE SCHOOL OF ECONOMICS
Q3. Were the student(s) professional in terms of asking appropriate questions related to their
project report?
Yes No
Q4. Was the final project report useful in terms of the feedback given to the organization?
Yes No
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