Engro food is a subsidiary of Engro chemicals.
Engro foods started its operations in 2006.
Within a very short span of 2 years, it has become
the house of four quality dairy milk brands: Olpers
Milk, Tarang, Olwell, and Olpers cream.
It has two processing plants at Sukkur and Sahiwal.
Importance of supply chain management
very crucial in backward and forward linkages between the company and
its suppliers and its customers.
Without supply chain mgt, the company can not ensure that the basic raw
material reaches the plant and then leaves the plant to the clients.
to ensure the supply of milk on time without any delay or
detriment to the milk.
Managing the supply chain efficiently help in reducing cost of the
product and make the company in position t offer the product on
lower price to the final consumer which drives out the competition
The above chart depicts the overall supply chain management process
at Engro Foods (Pvt) Ltd.
These activities can be divided into three categories as follows:
· Inbound Logistics: the receiving and warehousing of raw materials, and
their distribution to manufacturing as they are required.
· Operations: the processes of transforming inputs into finished products
· Outbound Logistics: the warehousing and distribution of finished
Long term relation with suppliers are made to ensure that quality
raw materials are supplied on time at discounted costs.
The various kinds of raw materials required for the milk and cream
production at Engro foods
· Raw Milk
· Other ingredients like SNF and fats
· Packaging material
Sources of milk supply
At Engro Foods the supply of raw milk, that is the way milk
collection is done can be divided
· Direct Sources
· Contactor based collection
milk collection done through various dairy farmers residing in different villages
and delivers milk every morning and evening to the Milk Collection Centre in
Engro Foods can be regarded as having one of the largest milk collection
networks in the country which is unmatched in size, productivity and efficiency
to meet the selfimposed commitment to quality.
It started off with hundred Milk Collection Centres in March 2006 and
now in 2008 has over five hundred and fifty Milk Collection Centres operating
The vast network comprises of village milk centres which are equipped with
chillers to preserve the quality prior to long hauls to the factories served by
specially designed tankers.
Indirect or Contractor Based Collection
The contractor based milk collection involves collecting milk
from approved suppliers who are aware of the quality
standards adopted by the firm. The contractors are
responsible for milk collection from a large area and can
bring about ten thousand litres of milk a day from dairy
Large quantity of milk is collected through method
nut first quality and taste of milk is tested.
Once this milk is tested, is sent to the chiller
containers which protect milk from air, light and
heat. This milk is then transported to the plant.
The packaging material is supplied from Tetra Pak
Ltd. It is in the form of
rolled sheets of aseptic packaging arriving at the
manufacturing plant directly from the supplier.
The aseptic packages are sterilised prior to filling
of UHT (Ultra Heat Treated) milk, with a 3 months
The raw milk is transported from the milk
collection centre to the manufacturing plants via
Insulated tanker maintain a temperature which
avoid growth of germs or expiration of milk.
The transportation fleet at Engro Foods is partly
owned and partly contracted that is they make use
of third party logistics.
Routes are selected to reach plants are to reduce
time and cost. (shortest routes).
THE PRODUCTION PROCESS
Chilling, pasturization, UHT treatment, Packaging:When milk is brought first it is tasted then it cooled and stored.
Then it is boiled and suddenly cooled this is called
Pasteurization.it kills all the germs in milk,.
After this point the milk is separated into different
product by adding different nutrients in it. For
example olwell, tarang olper milk and olper cream
The pasteurized milk is then passed through the
UHT (Ultra Heat Treatment). This is the most
sophisticated and advanced stage in milk
processing. which in turn kills all the bacteria.
After this milk is cooled and packed in Tetra pack
cortons as soon as possible.
The cartons are filled automatically and
continuously under completely sterile conditions
and then heat-sealed
next step involves the
immediate transfer of the
products to the warehouse
maintained right next to each
of the production plants.
Engro Foods is following traditional channel of
distribution that involves some intermediaries
between the transfer from producer to the
distribution of goods from warehouses, a fleet of trucks
maintained by Engro Foods themselves while part of
transportation have also been given to third party logistic
Engro Foods has almost 200 distrbutors all over
For the larger orders, the finished goods are
transported directly to the distributors.
for the smaller distributors, goods are also
being delivered and deposited in warehouses
maintained by Engro Foods in some
important locations all over Pakistan, from
there small distributers get there require
bulk of goods.