Supply Chain Management Shangrila Food (PVT) Ltd

1. SUPPLY CHAIN MANGEMENT
SHAGRILA FOODS (PVT) LTD
Prepared By
Waqas Ahmed Siddiqui

2. Introduction
When it all began about 23 years ago, nobody could have even
dreamt that such a small company would one day become a
leading national food brand
Innovation for Good
SHANGRILA took over the challenges in domestic markets by
setting up a diminutive manufacturing unit in Karachi in 1988 for its
seasonings; soy and chili sauces. Later in the late 90s, the range
was supplemented by Tomato Ketchup drawing a huge success due
to its quality, taste and innovative packaging; initially with the 100g
sachet which was a one of its kind pack during that era and later
the Stand Alone Aluminum Foil Pack with a nozzle & a screw cap.
The 100g pack managed to wedge through consumers in
developing the ketchup market among the masses, while 1Kg SAP
catered to economy.

3. Internationally Accredited
• To increase the acceptability of SHANGRILA products locally and
globally, the company has taken the lead in implementing the
industry’s best manufacturing practices and obtaining
internationally acclaimed certifications. SHANGRILA was among the
first few in the food industry to obtain the ISO 9001-2008 Quality
Management System & ISO 22000-2005 Food Safety Management
System certifications along with HALAL certification from SANAH the
South African National Halal Authority. It is also a member of the
Association for Dressings & Sauces, USA. Apart from certifications
and accreditations, SHANGRILA has consecutively won Brands of the
Year Award, Consumer Choice Award and Global Food Safety Award
over the years.
Global Footprints
• SHANGRILA has a strong distribution network in all major towns
with more than a hundred distributors nationwide. SHANGRILA has
also made inroads in numerous countries across the globe, including
markets like USA, Canada, UK, EU, Middle East and Africa.

4. Accreditations & Awards
• ISO 22000:2005 (Food Safety Management System)
• ISO 9001:2008 (Quality Management System)
• SANHA (South African National Halal Authority)
• ADS (Association for Dressings & Sauces, USA)
• PSQCA (Pakistan Standards and Quality Control Authority)
• Consumer Choice Award – 2005 to 2008 & 2013
(Consumer Association of Pakistan)
• Brand of the Year Award – 2008 to 2012 (Brands
Foundation of Pakistan)
• Global Food Safety Award (Global Media Links)
• PLMA (Private Label Manufacturer Association)

5. Commitment to Quality
Pursuing the quest for continuous improvement, Shangrila ensures the efficient implementation of
ISO 9001:2008 Quality Management System & ISO 22000:2005 Food Safety Management System,
incorporating HACCP and GMP. We are constantly investing in acquiring advanced measurement
resources and modern manufacturing equipment's which are supported by fully equipped Chemistry
& Microbiology Analytical Laboratories. Validation is also done through continuous audit process of
our integrated management system according to the international standards.
Our products have been tested and approved by following international authorities
• FDA (Food and Drug Administration), USA
• SASO (Saudi Arabian Standards Organization), KSA
• Ministry of Health, UAE
• Ministry of Health, Qatar
• Ministry of Health, Kuwait
• AQIS (Australian Quarantine Inspection Services), Australia
• BSTI (Bangladesh Standard Testing Institute), Bangladesh
• NAFDAC, Nigeria
• PSQCA (Pakistan Standards and Quality Control Authority)
• CFIA (Canadian Food Inspection Agency)
• Food Standard Agency UK
• Norwegian Food Safety Authority Norway

6. Exports
• At Shangrila, exports have an an important focus. For this purpose,
aggressive channels of supply chain are working for Shangrila in
various international markets. Our Products have a special appeal
for the halal conscious consumer segments around the world.
• Shangrila identifies the consumers’ specific demands for religious
compliance, hygiene, nutrition, taste and convenience on market to
market basis. The demanded products are accordingly made
available in the respective markets thus generating a huge response
from the consumers. Shangrila is all set to explore new markets,
identifying specific consumer needs and providing much desired
Shangrila products on the market shelves, Insha-Allah!

7. Events & Exhibitions
International Events
• Gulfood – Dubai, UAE
• Anuga – Cologne, GERMANY
• SIAL – Paris, FRANCE
• PLMA (World of Private Label)
Local Events
• Dawn Life Style
• My Karachi
• Kids Expo
• Expo Pakistan

8. Competitors
• Knorr Ketchup
• Mitchells Ketchup
• National Ketchup
• Ahmed Tomato Ketchup
• Nauras Tomato Ketchup
• Tops Tomato Ketchup
• Dawn Tomato Ketchup
• Qarshi Tomato Ketchup

9. Supply Chains
• Supply chain management encompasses the planning
and management of all activities involved in sourcing and
procurement, conversion, and all logistics management
activities. Importantly, it also includes coordination and
collaboration with channel partners, which can
be suppliers, intermediaries, third party service
providers, and customers. Supply chain comprises of all
the activities necessary for making and delivering the
product to consumers. A basic model of supply chain can
be seen in the following diagram

10. Supply Chains

11. Sourcing
International Suppliers
Heinz (Qingdao) Food Co Ltd
Product Benefits: 1 One global recipe. The Subtle blend of spices
used to make Heinz Tomato ketchup has remained a secret for
over 130 years 2 Well selected Red ripe tomatoes as materials;
One bottle of ketchup contains at least 6 Red ripe tomatoes 3
Very balance of sweet and sour taste, freshness, and natural 4
Super hot break production techniques, keep original and fresh
tomato flavor and texture 5 100% crude ingredients, no
preservative, thickeners, artificial essence or coloring

12. Efficient & Responsiveness

13. Domestic Suppliers
• Shangrila Ketchup local suppliers are 150 plus
majority based on Karachi,
• Lahore, Faisalabad, Hyderabad
•
• 60% domestic suppliers at Karachi
• 25% domestic suppliers at Lahore
• 10% domestic suppliers at Khyber Pakhtoon
• 5% domestic suppliers at Baluchistan

14. Domestic Suppliers
Break Up
Packaging
10 Suppliers are based on Karachi and Lahore
Pulping
5 Suppliers based on Karachi, Faisalabad and Hyderabad
Engineering and Spare Parts
30 Suppliers are based on Karachi and Lahore
Miscellaneous Items
100 Major suppliers based on Karachi and Lahore
Sugar
5 Factories through single broker

15. Logistics
• Through third party yearly Contract based
• Currently three contractual transporters are working
• Company has more than hundred vehicles to convey their finished
goods to retailers and distributors.
• Transportation mode is good due to high quality infrastructure.
• All distributors are responsible for transportation.
• For international delivery company used container from
manufacturing unit to Karachi port
• For local delivery company used trucks and containers.
Store Facility
• Karachi ware House 35,000 Sq Feet (Vertical Supplies)
• Lahore Ware House 32,000 Sq Feet (Horizontal Supplies)

16. Forecasting
Forecasting
• By Historical Data
• Assignment Of Target
• Market Situations
• Trends
• Seasoning Cycles
Duration
• Yearly
• Six Monthly (Semi Annually)
• Quarterly
• Monthly
Process
• Every Month get the sales target and Coordinate with production
department
• Final data will put on MRP
• Arrangement of Supplies through concern Suppliers

17. Distribution Channel
Channel of Distributions
• All over Pakistan
Direct Distribution
• Company used direct distribution
• Metro
• Hyper star
• Al-Fateh
• Imtiaz Super Market
• Naheed Super Market
• Chase Up
• Shaz Super Market etc
• Indirect Distribution
• Distributors are responsible for other retailers
• 5 Distributors

18. Recently Launched Products & Information
System
Recently Launched Products
• Hot and Spicy Ketchup
• Green Chili Sauce
Information System
• The use of information systems has become increasingly
important in today's world. Companies need to have the best
set of information systems and professional to fully benefit
from it. A good information system can provide company with
a competitive advantage. Shangrila currently uses software
like excel, SPSS and some features of oracle software in their
research and development. Apart from this they have
a computerized system for their inventory control and
production handling.

19. Inventory Maintenance
Inventory Maintenance
Raw Materials 20%
Packaging Materials 15%
Necessary Spear parts 5%
Finished Products 20

20. Customer flow

21. Conclusion
• Supply chain of Shangrila company is very good
because they have hundred of vehicles for delivery
their product
• They have efficient supply chain strategy.
• They produced tomatos on their own farms. So the
quality of ketchup is very high
• They have very fast information system so due to
good information system they could manage their
inventory of raw material very good manners
• According to our analysis Shangrila have a very good
and efficient supply chain

22. • THANKS YOU