British American Tobacco, the second largest Tobacco Company in the world is also the world’s most global tobacco company. Based in London, UK, it operates in more than 50 countries with 85,000 employees selling more than 300 brands in more than 180 markets worldwide

1. Supply Chain Management of British
American Tobacco
Tobacco consumption is injurious to health
This Presentation doesn't inspire or motivate any
individual to smoke or take any Sort of tobacco related
components .

2. INTRODUCTION
British American Tobacco, the
second largest Tobacco Company in
the world is also the world’s most
global tobacco company. Based in
London, UK, it operates in more
than 50 countries with 85,000
employees selling more than 300
brands in more than 180 markets
worldwide

3. Supply Chain Management of British American Tobacco
British American Tobacco Has a very structured supply
chain system.
 Primary production
 Secondary Production
 Filter Manufacturing Department
 Tech Support
 Maintenance
 Logistic
 Procurement
 Utilities
 Quality Testing
Main functions of all these sub departments are as follows:
• Inventory Management
• Distribution Management
• Channel Management
• Payment Management
• Financial Management
• Supplier Management
• Transportation Management and
• Customer Service Management

4. Supply Chain Process of British American Tobacco
1 2 3 4 DistributionSource Production Marketing
• 26,000 trade
marketing and
distribution
employees globally
• 18 leaf operations
contract and support
over 90,000 farmers;
• More than 20 third-
party suppliers,
contract approximately
260,000 farmers.
• 55 Factories,
• 47 of which
produce cigarettes,
in 48 countries,
• 15 green-leaf
threshing plants
worldwide.
• More than 50
countries with
85,000 employees
selling more than
300 brands in more
than 180 markets
worldwide.

5. Agricultural supply chain
More than 350,000 farmers in 37
countries supply tobacco leaf
used to make BATs products.
They buy more than 400,000
tonnes of tobacco each year from
a small number of first-tier
suppliers,

6. Five-S in British American Tobacco
Sort: British American Tobacco implement “sort” by removing all items
from the workplace that are not needed for current production.
Set in order: They arrange needed items so that they are easy to find
and put away.
Shine: They make sure everything is clean, functioning and ready to go
Standardize: Standardize refers to Maintain high standards of house
keeping and workplace organization at all times and maintain cleanliness
and orderliness.
Sustain: Sustain is all about to keep in working order so that the system
runs flawless for long term.

7. The Policy applies BAT’s supply chain
 Understand the impacts on the environment in which they operate and
proactively put in place plans to minimize these impacts;
 Manage, monitor and report on environmental performance;
 Include environmental considerations in their product design; and
 Work with suppliers and business partners to share best practice and
reduce the impacts of their products and services across the total lifecycle.
 Group Environment Policy
It requires their companies to:

8. How Sustainable Tobacco Programme works
• Their own tobacco leaf operations, which directly
contract more than around 90,000 farmers
• Third-party suppliers, which contract around 260,000
farmers.
• These suppliers complete a comprehensive annual self-
assessment covering different criteria ranged under the
key pillars of: crop, environment, people and facilities.
At British American Tobacco, STP applies to all their
first-tier suppliers.

9. FINDINGS
 More than 350,000 farmers in 37 countries supply us with the tobacco leaf used to make their
products.
 They buy more than 400,000 tonnes of tobacco each year from a small number of first-tier
suppliers.
 18 BAT leaf operations, which directly contract and support over 90,000 farmers;
 More than 20 third-party suppliers, which contract approximately 260,000 farmers.
 Tobacco is grown on an average of 40% of farmers’ land, generating around 60% of their total
farm income.
 90% of their farmers grow other crops, including fruit, vegetables, wheat, maize, cotton and soy
bean.
 Average farmer age is 43 years.
 More than 100 countries grow tobacco.

10. RECOMMENDATIONS
 Usage of Bar Code and RFID code in both spares and bin for tracking
Spares.
 Reduce human error of searching and handling spares by providing training
to the workers
 24 hours of service coverage.
 Solve direct issue and free of charge related problems effectively.
 Regular training for the workers dealing with the parts.
 Ensure safety of the people working in the store.
 Inventory Optimization
 Lead Time Reduction for Imported Items

11. References
 Fayezi, S & Zomorrodi, M 2016, Supply chain
management: Developments, theories and models. in
Handbook of Research on Global Supply Chain
Management. IGI Global, pp. 313-340.
https://doi.org/10.4018/978-1-4666-9639-6.ch018
 Frohlich M. T. and Theystbrook R. 2001 Arc of
Integration: An International Study of Supply Chain
Strategies Journal of Operations Management 19 185-
200
 Chen, I.J. and Paulraj, A. (2004), “Towards a theory of
supply chain management: the constructs and
measurements”, Journal of Operations Management,
Vol. 22 No. 2, p. 119.
• https://www.bat.com
• www.academia.edu
Websites