3. Introduction
KSB Pakistan located at Hassanabdal specializes in pumps,
valves and service for industrial, building services, energy
and water & waste water applications.
KSB Pakistan is well endowed by having all three facets of
the business i.e.
Manufacturing,
Sales & Marketing
Service 3
5. Issue identified in Supply Chain
Longer and inconsistent lead/ delivery times
Global supply crisis at production sites
Frequent logistics miseries
Shortage of Labour
Spike of inventory
Uncertainty of raw material
5
6. Proposed Solutions
Log Term
1. Localization
2. Amendments in Industry
SROs
Short Term
1. Centralized Warehousing
To cater the shortages and to
fulfill customer order it is
proposed that KSB must redefine
its inventory management system
from “Decentralized” to
“Centralized” inventory for KSB
Locations in Middle East for
Asian, African and ME regions.
There are two main sections, one is Foundry Plant and other one is Machining Plant. KSB produces many of the components in its own Foundry, The Casted parts are machined as per the requirement of orders. Raw material is procured preferable from local sources in case of non- availability, material procure from foreign sources from Europe. U.S.A and China regions
Covid-19 Pandemic wreaks whole process of supply chain management severely. Without any dispute, every practitioners of supply chain practitioners admit: between the pandemic, shortage of containers, prolonged winter, the blockage of the Suez Canal by a container ship, frequent logistics miseries, things have been extremely challenging for the professionals to grip the operations under control. The critical challenges faced due to COVID 19 during and post pandemics are global supply crisis at production site due to shortage of labor, container constraints to ship goods at buyers and customer premises, shortage of staff due to quarantines and medical safety and/or lower supply, restrictions on transport and distribution operations to deliver goods or services, under-staffed, under-supplied, and store closures Lack of consumers, unavailability of transport operation crews, lack of demand for certain goods, and challenges to reach consumers for delivery restrictions. The impacts are resulted due to production shortage, unfulfilled customer orders, and spike of inventory, the uncertainty of raw material and other input arrivals for production, slow shipments, and inconsistent delivery, frequent delivery schedule failure, fewer products on the shelves, diminished ability to serve the customers, delivery is inconsistent, a timing model is faulty, and increased costs, avoid shipping, delayed delivery timeline, and more volatile demand patterns
Localization
Due to disruptions of Supply chain KSB has come up with plan to localize many of the imported parts & Raw material. KSB started vendor engagement activity and invited vendors and supplies from all across Pakistan. These vendors are engaged and given confident to be part of “Make in Pakistan” concept so they can act more aggressively toward betterment of the local industry. Over the course of last one year KSB has successfully developed local supply chain of more than 300 Million PKR goods.
INDUSTRY SROs
The current DTRE SRO-450 scheme does not favor the Engineering sector and the process to get DTRE approval and determination of input or output ratio is very cumbersome, time consuming and complex. Many recommendations are submitted to the relevant authorities to reduce complexity of the scheme.
