Him Hatchery was established in 1958 in Mandi, Himachal Pradesh with the goal of providing better nutrition to address malnutrition. It operates an integrated poultry business including breeder farms, a hatchery, broiler growing farms, a feed mill, and a processing plant. The hatchery sources eggs from breeder farms, hatches chicks, and vaccinates them before distributing day-old chicks. Broiler chickens are grown on company farms and processed in the plant. Products are distributed through a cold chain network of warehouses and refrigerated trucks to ensure quality and freshness. The supply chain faces challenges of inaccurate demand forecasting, lack of integrated systems, and limited third-party logistics providers.

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CASE-Network Management of Him Hatchery,
SunderNagar, Distt. Mandi
1. History
Introduction
The year 1958, Distt Mandi was a young independent Distt forging ahead towards a dream,
self-sufficiency in food production. Malnutrition remained a major problem. People were
affected with diseases caused by protein, vitamins and minerals deficiency. Poultry
production, the quickest and least expensive way of filling the protein gap was planned to
overcome malnutrition.
Him Hatchery Background.
HIM is the founding pillar and beacon forDistt Mandi started in 1958with a single minded
objective of providing betternutrition forhealth and happiness of the Distt Mandi. Building
on years of poultry expertise, and a commitment to food-safety, HIM 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 marvelous food industry located at SunderNagar. It deals with poultry processing.
HIM Poultry processing is integrated business containing essential components like
breeder farms, hatchery, and broiler growing farms, feed mill and poultry processing plant.
HIM Hatchery Goals and Objectives-
Him Hatchery has set a single minded objective for providing better health and nutrition
for the Distt.. In order to achieve this objective HIM' Built on years of poultry expertise,
and a commitment to food-safety, HIM's integrated all poultry production activities under
one umbrella to ensure quality and food-safety managing and controlling all stages of
production.

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Four basic objectives ofabsolute integrity, enthusiastic diligence, continuous improvement
and high quality maintenance are at the core of all operations which provide an impelling
urge for attaining perfection. Driven by its basic objectives m pursuit of perfection, HIM's
is committed to have superior product and unmatched service through devoted people and
consistent development.
2.0. Business Processes and practices
Poultry Breeding
HIM maintains layer and broiler parent stock populations in different regions of Mandi.
HIM'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 fanners
throughout Distt. Mandi.
Hatching
Upon arrival from breeder farms, hatching-eggs candled at all hatcheries to remove eggs,
which may have cracked during transit. Sanitation and hygiene is enhanced by
mechanically transferring eggs from one type of tray onto another until chicks are
harvested from hatchers. Maximum care is exercised while handling, reconstituting and
administering vaccines using proper techniques and modem equipment. To ensure chicks
get off to the healthiest start and stay protectedfrom viral diseases, they receive inject able
and spray vaccinations at the hatchery.

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Broiler Growing
In addition to supplying day-old chicks to farmers, HIM is also engaged in broiler growing
at company owned farms to produce broilers for our poultry processing plant. Under the
watchful eye of our own poultry nutrition, health and housing specialists.
Feed Milling
To 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, com gluten, rice and
wheat; oil seed meals such as soybean, canola and sunflower; fish; oyster shells
supplemented with multi-vitamins and minerals.
3.0. Distribution System & Chicken Stores
Products are stored at -21 OC to maintain freshness. Packed products are moved into
sanitized refrigerated trucks for distribution to ensure uncompromising quality control.
Product Flow Strategy-
Product flow Involves the movement of goods from a supplier to a customer, as well as
any customer returns or service needs, information flow involves getting orders. Supply
chain management flows can be divided into three main flows
 HIM HATCHERY's ultimate goal Of effective supply chain management system is
to reduce inventory (with the assumption that products are available when needed)
 HIM HATCHERY's supply chain management involves coordinating and
integrating these flows both within and among companies. Supply chain
management (SCM) of K & N's is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer & updating delivering status, the financial flow consists of
credit terms, payment schedules, and consignment and title ownership
arrangements.
 There is Flow of cash and flow of information at every node of the distribution
channel so as to insure a smooth flow

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 Framework of HIM’s Supply Chain

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4.0. Distribution Network
Delivery Methods from Company to Warehouse and ware house to retailers. The company
maintains 3 Distribution Centers,
 The Northern (Karsog),
 Central (Mandi town)
 Southern Region (Jogindernagar).
 A cold chain feeds the Northern & Southern Regions. Distribution to our
Institutional & Retail partners is also "through & through Cold Chain" as described
above.
DISTRIBUTION OF HIM PRODUCTS
 After the development of product, the product is distributed to the end customer in
such a way that the lead time is minimized at the same time the product is made
available at the earliest to insure the shelf life of the product is maintained at any
cost and all quality standards are met this insured as follows
 Sell Directly to Retailers
 Sell through distributors, which sell a broad range of products to many retailers
 Sell through captive distributors, which sell a broad range of products to one chain
of retailers.
 Sell through distributors, which sell to your targeted customers
 Distribute to company exclusive stores.
CHANNEL BEHAVIOR CONFLICT
The conflict of channel behavior of our product is vertical conflict. Because in this conflict;
conflict lies between different levels of the same product, is even more common
MARKETING SYSTEM
HIM products consist of vertical marketing system (VMS) because it is such type of
distribution channel in which producers, wholesalers, retailers act as Unified system. So
that one channel member owns the others, has contracts with them, or has so much power
that they all cooperate.
TYPE OF VMS
K & N 's products lies in the administered VMS in the vertical marketing system because
this type of VMS coordinates successive stages of production and distribution, not through
common ownership or contractual ties, but through the size and power of the parties.

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 Framework of HIM Hatchery Distribution.
STORING PROCEDURES
Storing Procedure is as per the International standards laid out by WHO for such products.
HIM Hatchery maintains its own warehouse at different distribution centres at north south
and centre. Most of the HIM’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.

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 Meet variation in Production Demand
 Cater to Cyclical and Seasonal Demand
 Economies of Scale in Procurement
 Take advantage of Price Increase and Quantity Discounts
 Reduce Transit Cost and Transit Times
 Long Lead and High demand items need to be held in Inventory
Though it is a normal industry practice now to outsource the warehousing operations to a
3PL Logistics service provider but HIM supply chain management believes to build its
own warehouses and cold storages to reduce costs and keep its inventory in safe
environment. Moreover the strategic locationbeing himachal there is no as such 3pl service
provider.
5.0. TRANSPORTATION NETWORK
As required for the frozen foods, HIM's transports its products all the way through Cold
Chain, supported by specially designed own vehicles to maintain temperatures in the
required range to maintain product quality. But the normal distribution is carried by the 2pl
service provider of the region.
Direct Shipment Method
With the direct shipment network
option, the buyer structures his
transportation network so that all
shipments come directly to each buyer
locations. Routing is specified and only
the transportation mode and routing is
decided by the supply chain manager of
HIM Hatchery

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Sourcing Strategic Approach In procurement and Sourcing Strategy
Lean Manufacturing and costper unit concept is demanding that the managers keep looking
to reduce the procurement cost as well as procurement logistics cost. By developing a
relationship with suppliers in a collaborative mode, buyers are able to get supplier
companies to hold inventories for them at buyer location and postpone taking inventory
ownership up to the point of consumption.
Challenges Faced by Him Hatchery.
 The current challenges that Him is facing in implementing these workflows really
revolve around non-integrated processes and systems with retailers and
manufacturers operating out of their own silo and different planning data. This
results in excessive response times, costs and inventory due to forecast inaccuracy.
Retailers on one hand face stock-outs, material shortages, lost sales and poor
customer service to name a few.
 The gains achieved were two-fold. On the planning side sharing of mid to long term
forecast and publishing near term requisition forecast to suppliers and receiving
supply commits from them resulted in reduced material shortages and stock-outs at
the component level.
 Since the lead time need to be short, the demand should be forecasted accurate on
daily basis so as to insure a lean management of inventory.
 No availability of an effective 3pl service provider in the area thus the entire system
in dependent on the local transportation which are not as effective.
 Lack of any WMS or TMS so as to insure transparency at each and every node of
supply chain.