Professional Documents
Culture Documents
National Foods began its journey in 1970 as a Spice company, with a revolutionary product that
popularized the concept of having clean, healthy food. National foods initiatives were, to make food
that is hygienic, reduce time spent in the kitchen by women, foster health and contribute towards
personal attractiveness, so that people who use our products would be able to experience a more
rewarding life-style.
This was long before the phrase Corporate Mission had even been invented. However, our founders
philosophy remains unchanged over time. Even if their language and the notion of only women doing
the housework have become outdated, in this age of rapidly changing lifestyles, fuelled by the
rampant development of technology; consumers are compelled to alter their eating habits. National
Foods responds to this challenge of developing innovative food products based on convenience and
quick preparation in line with modern lifestyles and yet retains traditional values through its diverse
collection of food products.
In a history that now crosses three decades, National Foods success has been influenced by the major
events of the day economic boom, depression, wars, changing consumer lifestyles and technological
advancements. Even after three decades the companys focal point still remains on customers needs
through product development in line with the changing market trends.
Today, National Foods provides a complete food experience to its customers in 33 countries around the
world. National Foods produces over 300 SKU's in 12 major product categories including meal solutions,
pickles, sauces, ketchup's, jams and desserts. National Foods is reaching out to the voice of its
customers by delving further into the convenience food segment and adhering to their philosophy of
offering superior taste and quality.
Founders Philosophy:
National Foods must focus on customers needs and serve them with quality products at
affordable prices at their doorsteps.
Our products must be pure and conform to international standards.
Our research must continuously produce new adventurous products scientifically tested,
hygienically produced in safe and attractive packaging.
We must create environment in our offices and factories where talents are groomed and have
opportunity to advance in their careers.
We must prove to be recognized as good corporate citizens, support good causes-charity and
bear fair share of taxes.
Reserves must be built, new factories created, sound profits made and fair dividend paid to
our stock holders through building a reliable brand.
National Foods Ltd. must get itself recognized as leader in Pakistan and abroad.
With the help of almighty God, the company can achieve its targets in years to come.
operations in overseas market as these white spaces offer huge business potential for NFL. We have also
started the contract manufacturing of Ready-to-Consume meals in Canada in order to help make our
supply chain even more nimble to market needs.
The dedication and hard work of our people is a major contributor to NFLs success. We will continue to
invest in our human capital and work to help unleash their full potential by providing an ideal work
environment.
The Year Ahead
As the external environment brings various challenges our way, we need to convert these into
opportunities and develop crucial internal strengths to surpass them. We believe that expansion in the
international market operations will be beneficial not only for our company but the economy at large as
well. We will pursue all growth options in the international market aggressively to deliver our vision and
delight our stakeholders in future. We are resolute on strengthening our hold on the international
markets in the coming year.
The company is strongly committed to growth and will be investing in new food categories in
international and domestic markets. Our focus will be on aggressive investments; hence post
consolidation profits will be deployed in new projects to secure additional growth for the future
Helping us achieve our vision.
3. Conflict of Interest:
NFL prohibits actions that are in conflict with the company business interests. This may include but is
not limited to:
Providing assistance to the competition or holding ownership interests in a customer, supplier,
distributor or competitor.
4. Confidentiality:
NFL believes in confidentiality of information related to company business activities. The company
expects employees not to disclose or divulge by any means the confidential and commercially sensitive
information except to the authoritative personnel requiring it. Furthermore, they should use their best
endeavors to prevent the disclosure of such information by other people. The obligation of
confidentiality shall survive the expiration or the cessation of contacts with National Foods Limited and
is equally applicable to intellectual property.
5. Statutory Compliance:
NFL believes in providing total support and cooperation to all the governmental and regulatory bodies
irrespective of the extent of prevalent enforcement.
6. Financial Integrity:
NFL believes in complete compliance with the accepted accounting rules and procedures. This includes
but is not limited to:
Transparency:
NFL discourages any illegal activity for the purpose of any benefit to the company or others. All
information supplied to the stake holders and/or auditors must be authentic & transparent.
Disclosure:
All transactions must be fully disclosed and must be for the purpose stated for.
7. Health, Safety and Community Responsibility:
NFL is fully committed to safety, health and responsibility towards environment and community. All
activities of NFL must portray responsibility towards the community and nation as a whole. NFL seeks to
employ procedures that are safe, healthy and environment friendly.
Core Values:
Passion
we act with intense positive energy and are not afraid to take risks. We challenge ourselves
continuously, were good at what we do, and we take pride in who we are.
People-centric
We put our people first. We treat them with respect and actively contribute towards their development.
Customer Focus
we see the world through the eyes of our customers. We do everything possible that makes them
happy.
Leadership
we are part of the solution, never the problem. We act like owners and have a positive influence on
others.
Teamwork
our roles are defined, not our responsibilities. We believe in going the extra mile to accomplish our
goals. We coach and support each other to ensure everyone wins. We have a WE versus I mindset.
Ethics
we dont run our business at the cost of human or ethical values.
Excellence in execution
we say. We do. We deliver. We talk with our actions. We strive for nothing but the best. Execution is the
key to winning!
Accountability
We see. We act. We take full responsibility for our actions and results. We dont blame others for our
mistakes; we analyze them and correct them.
STOCK RECEIVED
FROM
PRODUCTION
FINISHED
GOODS STORE
ORDER
PROCESS
CAPABILITY CHECK
YES
DISPATCH LIST/D.C
NO
INFORM
CUSTOMER
LOGISTICS
DIRECT DELIVERY OR
DISPATCH TO CUSTOMER
STOCK TRNSFER TO
DIFFERENT WARE
HOUSES
DELIVERY OR DISPATCH
TO CUTOMER
RECEIVE TR/CHALLENGE
[LOGISTICS/WH
FINANCE
ISSUES
INVOICES
SEND TO CUSTOMER
When the
production department finished the process, the finished goods moved to the
store department and the store department added the inventory as finished
goods produced. When this finished goods moved out of the store, a delivery
chalan has been made and invoice for the transportation issued. Then finally
the finished goods produced were gone to the distributors for selling
purposes.
OPERATIONS
The duty of the finance department is to get the stream of depreciation on
each and every thing. Normally the depreciation charged on the plant and
machinery is 10% of the book value and on the motor vehicle it is 20%.
As far as tax is concerned the company has to bear taxes on its distributors
and the products. As far as distributors are concerned the company has
registered and non-registered distributors. For its registered distributors the
company has to pay 15% duty and for non-registered distributors the
amount of the duty is 16.5%. Moreover the burden of tax never ends up
here. It has to give taxes on all the material imported from abroad. The tax
is known as import tax.
The stream of taxes is also depending upon from product to product basis.
Such as the application of the sales tax is highly dependent on the product.
Pickle has some other tax basis and the ketchup and sauces have others.
Managerial positions in Operations department:
Following are the managerial position employees and their work is explained below.
Factory Manager
To organize and control all production within the factory to achieve all output targets in terms
of quantity, quality, yield, wastage, unit costs, and in accordance with quality standards.
Direct and control all factory staff to ensure that they are properly motivated, trained and
developed, and carry out their responsibilities to the required standards and in accordance with
quality standards.
Organize all production operations to ensure that output and quality targets are achieved and
that all relevant health, safety and hygiene standards are observed.
Develop and monitor all necessary procedures to ensure the continued efficient operation
and supply of services provided by utilities.
Develop and implement short- and long-term plans to ensure that the factory has the
Supply chain optimization through cost reduction, enhanced stock lead time and improved
inventory management.
Ensure yield from the raw material according to the bench mark set for the different
products.
Analyze market trends of prices and availability of raw and packaging materials. Analyze and
ensure compliance of annual, monthly, weekly and daily supply plan.
Analyze annual production, purchase and resource planning. Analyze annual and monthly
Master production schedule and rough cut capacity plan. Analyze annual and monthly MRP and
capacity resource planning.
Analyze Work collaboratively with all stakeholders including manufacturing and 3PL
providers.
Custodian of Sales and Operational planning and conduct SNOP meetings on annual and
monthly basis.
Ensure that inventories of raw, packaging and WIP are kept at the minimum levels to avoid
blocking Companys financial resources unnecessary.
Monitor and effectively control the operations of all nationwide warehouses of the company
to ensure efficiency cost control, maximize fill rate and customer satisfaction.
Support & develop Supply Chain department through on line training, Create & manage
schedule of projects while handling any new emergency services
Oversee & maintain operations of all supply chain departments and provide assistance,
coaching & training to employees on an as needed basis.
Ware house:
National Foods have decentralized system, there are four ware houses:
1.
2.
3.
4.
Karachi
Lahore
Multan
Islamabad
Inventory system in ware houses, normally NFL use FIFO system for regular
materials and LIFO system for seasonal material e.g. mangoes, carrot and chili to
maintain standard.
LOGISTICS
INBOUND LOGISTICS
Customers
Retailer
Multan
Lahore
Distributors
Islamabad
Receiving and
Inspection
Finished goods
Warehouse
Karachi?
National
foods
Pakistan
has
maintained
separate
marketing
basis and give the request to the procurement department. Then these
forecasts are kept in records and cumulate with all other department
forecasts.
in
scene
and
search
for
the
available
product
ranges
with
specification. At times for larger orders, it also asks for bids. The
procurement department then analysis all the bids. NFL negotiates with
competitive rates of three or four suppliers of the specific products, where
they got lower cost with good quality.
3. PURCHASE ORDER
After the final analysis the purchase order has been made to the name of
the supplier or bidder. And then the product or the material has finally been
acquired.
As National Foods is concerned mostly with the agricultural products
because all the products made use crops as raw material. Mostly the raw
material is seasonal. At times some crops grow and some would not. So it is
the liability of the procurement department to maintain the stream of the
raw material. So for seasonal products, National food purchased 30 lack tons
of mangoes and 1800 lacks tons of carrot it acquired raw material early and
2. Transaction Components
Pricing
Invoicing
3. Post-transactional components:
Shipment Delays
SWOT ANALYSIS
SWOT analysis plays an important role to evaluate the performance of any organization. This is most
commonly followed set pattern to analyze the strength, weakness, opportunities and threats. For any
company strength and weakness are internal elements and threats and opportunities always come from
outside the organization. Now we perform a detailed SWOT analysis considering the National foods.
STRENGTHS
BROAD PRODUCT LINE:
National food has very broad product line that includes different types of Masala powders, Kheer mix,
Ketchup, Custard powder, Pastes, Achar and many more.
BROAD MARKET COVERAGE:
National food occupies 80% market share in powder mix market and one very obvious reason for that is
strong and very broad market coverage. According to Sales and purchase Manager National food, they
have excellent market coverage all over Pakistan and citizens of each city have easy access to sales and
display centers.
MANUFACTURING COMPETENCE:
National food has engineering and technical staff of the highest caliber that is capable of manufacturing
such products that differentiates National food products from its competitors. National food posses
specific manufacturing competence for example uses of imported machinery and a high quality
ingredients in manufacturing of powder mix that maintain the quality of product.