This document provides an overview of Dalda Foods Pvt. Ltd's supply chain operations. It discusses their planning process, purchasing procedures, focus on quality and price, total quality management practices, sourcing from local and international suppliers, supplier selection criteria, relationship building with suppliers, supplier evaluation process, logistics including raw material transportation and warehouse operations. The company aims to provide high quality products at reasonable prices through strategic sourcing and management of suppliers and logistics.

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Table of content
Acknowledgement…………………………………………………………………….. Page 2
Introduction…………………………………………………………………………….. Page 3
Plan…………………………………………………………………………….……….. Page 3
Purchasing process…………………………………………………………………….... Page 4
Quality and the price………………………………………………………………...….. Page 5
Total Quality Management……………………………………………………………… Page 5
Sourcing………………………………………………………………………………..... Page 6
Suppliers Selection……………………………………………………………...……….. Page 6
Single sourcing and multiple sourcing…………………………………………….…….. Page 7
Relationship with suppliers……………………………………………………………… Page 7
Supplier’s evaluation process…………………………………………..………….…….. Page 8
Logistics……………………………………………………………………...………….. Page 9
Warehousing…………………………………………………………………………….. Page 12

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Acknowledgment
First of all we are very thankful to Allah the Almighty who gave us strength to deliver this
project and secondly we are also very thankful to our teacher Sir Anas Iftikhar who gave us an
opportunity to present this informative and creative project, which has increased our knowledge
and awareness.
Also we are really thankful to our parents who gave us courage, and help us in doing this and
prayed for our success.
We are highly indebted to all those people who gave their precious time and valuable
information which provided us with the basic information for the completion of this project. We
would like to thank Mr. Zeeshan (from Dalda Foods Pvt. Limited) without their support and
expertise this wouldn’t have been possible.
We pay our gratitude to all those who extended their full cooperation with us for the completion
of this project. This project really provides us a lot of information and Insha Allah it will be
helpful for us in the future.

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Introduction:
The company on which we are making report is very renowned company of Pakistan in the
sector of oil manufacturer. We work on Dalda Foods Pvt. Ltd. We gather information regarding
the supply chain of Dalda and compile it together for our project. There is huge product line of
Dalda in market includes:
 Dalda VTF Banaspati
 Dalda Cooking Oil
 Planta Cooking Oil
 Dalda Canola Oil
 Dalda Olive Oil
 Dalda Olive Oil Extra Virgin
 Dalda Olive Oil Pure
 Dalda Olive Oil
 Manpasand Banaspati
 Manpasand Cooking Oil
Plan:
Planning is a very critical decision in Dalda Company. Under the process of planning, there is a
decision takes place regarding the purchases of raw material. Purchases are considered as a very
critical point to any manufacturing company that’s why Dalda plans its purchases before
confirming to it. Purchases play a vital role in the successful operations of company because it

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includes the purchases of raw material, purchases for packaging material and purchases for
machinery. That is the reasons why decisions for purchasing are the time consuming activity in
Dalda Company. There are some standard in the Dalda company that are the main focus to plan
for purchase.
 All quality standards must be fulfilling.
 Financial stability of suppliers must be under consideration before planning the
purchases.
 Before placing the order, raw material and packaging material should be checked.
 Make sure that suppliers would not leak the confidential information of company to the
competitors.
These are the standards that are following by the Dalda Company before planning the purchase
process.
Purchasing process:
Purchase at Dalda foods involves the following steps.
1. First step is the need recognition. Company recognizes its need through actual customer’s
orders and forecasting process.
2. Then Dalda issue its purchase requisition to its concern department after the recognition
of need.
3. Then purchase request sent to buying department and buying department approves the
purchase order.

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4. Buying department searches and investigates about the suppliers available in the market
and place the order to a most suitable supplier on the basis of price and reputation in the
market.
5. Goods are inspected when received.
6. After supplying goods on time, supplier has to meet with finance department for payment
as per agreement after a certain days outstanding.
The purchasing process mention above is not applicable for FMCGS product that company deal
with in. Company use JIT methodology for the FMCG products. Above process of purchasing is
use for the purchasing of raw material of such goods whose demand can be determined by the
future forecast and actual customers order.
Quality and the price:
Company is always in search of such suppliers who provides quality product with the reasonable
price. Both the element i.e. quality and the price are mutually important for Dalda Company and
company never underestimate both of them. The quality elements are the main focus of company
that Dalda customers want to buy. Dalda always seek for such suppliers who provides quality
raw material to them however price is also the main factor of purchases.
Total Quality Management:
TQM is consider as main part of company supply chain because company business on health
issues. TQM is the essential part of every purchasing decision. In every purchase, there Dept. of
Quality Assurance randomly checks the quality of shipment that is made by its suppliers and if

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the shipment is up to the standard of ISO 9001, because Dalda has certification of ISO 9001 and
if the shipment is not up to the standard, the whole shipment returns to its suppliers.
Sourcing:
Dalda foods purchase its raw material from both local suppliers as well as international suppliers.
Their raw material is divided into two sections. First one is packaging raw material such as
bottles, pouches, tins, cartons and jerry cans etc. Packaging raw material is purchase by local
suppliers. While production raw material is the second part of raw materials. Production raw
materials are sourced by international and good reputed suppliers because Dalda believes in
providing superior quality to its customer.
Dalda foods does not emphasize on single suppliers and they purchases from different at the
same time so the dependency of suppliers is very low in the Dalda Company. Major suppliers
and vendors of Dalda foods are:
 EUPS
 ERMS
 ECES
 Smart Movers
 Haqq Engineering
Suppliers Selection:
Dalda food Pvt. Ltd main focus is to provide premium quality product to its customers. For that
reason the main standard of selecting the suppliers is quality more than the price because Dalda
don’t want to compromise on quality. Dalda looks at the reputation of the suppliers in the market

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because they don’t want to take risk on quality and they want to provide risky products in terms
of quality to its customers. Also the company considers supplier’s production capacity before
selecting supplier. Also Dalda checks about the suppliers major vendors and if company is
involve with any competitor they don’t work with them because they want to produce premium
quality product at the best available price on time.
Single sourcing and multiple sourcing:
The company is not relying on single suppliers. It is because of the uncertain situation in
Pakistan. Dalda rely more than one suppliers and the contribution of work between the suppliers
distributed on their available capacity and their performance. Hence the level of confidentiality
of company’s secret information is also count.
Relationship with suppliers:
Dalda tried to build strong relation with their suppliers. A relation who tied with a strong
bonding of trust and mutual understandings that leads to benefits for both the parties in the long
run. Relationship from suppliers is essential for business because they provides you material
which your makes finished goods. Sometimes suppliers give you extra benefits like
exceptionally long credits, delivery before due dates if needed, innovative ideas etc. you should
also take care of your suppliers to make strong relationships.
At Dalda Company, the performance of suppliers and employee who is making deal with
suppliers is continuously checked. Adherence of performance by employee and suppliers always
monitor and controlled by management. If employee has such interest who is going to cost

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company, such action continuously monitored and for that action, there are strict policies such as
if such conflict arises and capture by company then company penalized the involve party.
Supplier’s evaluation process:
For the assurance of good quality, company is continuously evaluated its suppliers performance
on the basis of four things.
Confidentiality:
A factor that measures the bond of supplier’s that how much it is loyal to company and does not
expose any personal information outside the company or to the competitors.
Commitment:
This measures the commitment of quality, quantity of product or material that supplies provide.
Quality:
Dalda evaluate its suppliers on the basis of quality he provides, and Dalda always promote the
suppliers who are performing well and provides best quality product.
Price:
At the end supplier evaluate on the basis of price of material they provide. The best and
reasonable quotations from suppliers are approved by company.

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Logistics:
Raw Material Movement from Major Suppliers:
They usually concentrate on the time variable that the client should get their product without
delays. To achieve this promise the strategies for logistics management include circulation of
products or services and useful knowledge; the logistics also contains circulation of people and
power. It also contains the warehousing and transporting activities. So as for “Dalda Foods Pvt.
Ltd” is involved in the movement of its raw material and finished products it employs 3PL on
routinely basis.
They have generally signed the agreement with other transport firms. They have informed us
with some of their significant providers by which they are getting their supplies i.e. EUPS,
ERMS, USCS, ECES, Smart Movers, Waqar Businesses, Haq Engineering. They have separated
the selection of raw materials according to the potential of the transporters automobiles that is
centered on the size of 20, 40, 50 Ft. Their agreement with transporters includes incoming
materials into the production facility, then after transforming it into the finished products those
same carriers take it from production facilities to their depots.
They generally cover these two types of transportation activities with different techniques and
their effective time control is really good regarding both supplying of materials and distribution
of finish goods. From Dalda’s depots transporters spread their completed products according to
the need of the retail stores or other Merchants. They have divided their customers into three
different categories.
1. General Trade

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2. Modern Trade
3. Key Accounts Trade
Nature of Relationship with 3PL Providers:
Overall Dalda Foods Pvt. Ltd maintains a good relationship with their logistic providers in a
mutually beneficial manner. Dalda Foods Pvt. Ltd contracted their transport function and the
span of their contract logistics is long lasting depending on annually basis but the restoration
occurs twice in a year due to the variations in energy costs and other conditions. They told us
some names of their logistic channel partners which are Capital Market Services, Faisal Movers,
KFCM, Malik Movers and NHI. The transport occurs according to the potential of the
transporters.
Transportation Overheads:
The prices of transport are incorporated into their products price. Due to the security issues and
guidelines of the company they did not disseminated the actual rate of their transport price but it
contains around 10-15% of transport price.
Timetable for Transportation:
In Dalda Foods Pvt. Ltd they don’t schedule their transport functions. The transport occurs
according to the need centered replenishment. If the need goes down their transport decreases
and vice versa, as happens in the month of Ramadan, their transport also gets quickly greater
than in other months of the year. Normally transport occur no less than 60 to 70 tons of the items
in the Karachi region.

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Security during Transportation of Inventory:
Their distribution program is very much secured; they are circulating their items all over the
Pakistan. They have placed 13 CCTV Camera’s into their manufacturing facilities and depots
straight under the guidance of Dalda’s management. They have all the necessary information of
their transport companies that are delivering their items.
In Dalda Foods Pvt. Ltd the organization uses to handle the appropriate stock stage according to
the potential of the carriers used for the transport. While circulating their items to the industry,
they have certain requirements of loss/damages up-to a certain degree.
Organization is not concerned if the defected items surpass that degree then their insurance
provider will reimburse it to them, each and every item that Dalda Foods Pvt. Ltd manufactures
is insured. But, still transporters are forced to take necessary steps to ensure that the goods are
safe during transportation.
Dealing with Urgent Order:
In situation like urgent orders the retailer’s/wholesalers when getting out of inventory Dalda
Foods Pvt. Ltd try to provide their item in the first place. If organization feel difficulty in doing
so they counter it by discovering out the additional inventory in the other nearest retail stores
which they provide to the retailer’s/wholesalers who got out of inventory to meet up with the out
of inventory negative scenario.

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View on 3PL provider:
Overall it is a good decision from Dalda Foods Pvt. Ltd to have outsourced their logistic needs to
specialize firm rather than doing it on their own. The major benefit that they achieved is
reduction in number of cash outflows that would otherwise occur if they maintain their own
transport fleet.
Warehousing:
Rights to the Warehouse:
Dalda Foods Pvt. Ltd owns some of its warehouses particularly large ones while others are
subcontracted to third parties. The terms of the agreement are renewed once a year which is a
normal practice by the company.
Warehousing Operations:
1. Dalda Foods Pvt. Ltd maintains a total of 11 warehouses all over Pakistan. Three of the
major warehouses are located in the areas of Karachi, Lahore, and Swat. Beside that
Dalda Foods Pvt. Ltd never used any kind of location strategy in particular it is just based
on the fact of major metropolitan areas.
2. Dalda Foods Pvt. Ltd does not employ any hi-fi technology in their warehouses all
operation is carried out manually. The reason for not using the advanced technology is
high set up costs and the company doesn’t feel the need to do it so, although they utilize
the service of pallet stackers for movement of goods inside the warehouse. A very simple
inventory managing method is used that is of FIFO (First in, first out).

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3. Dalda Foods Pvt. Ltd does not have any plan to store large quantity of stock or very less
quantity of stock. They have the conventional storage space potential which is based on
past pattern and need forecasted; they generate the estimated potential except for the
month of Ramadan in which their sales increase by 30-40% so before Ramadan they
generate more stock to get to know the unwanted need in Ramadan.