[COMPANY NAME]

[Company address]

[Document subtitle]

Introduction:
K & N is the founding pillar and beacon for Pakistan poultry industry. It started in 1964
with the objective of providing better nutrition for health and happiness of the nation.
Building on years of poultry expertise, and commitment to food safety, K& N integrated all
poultry production activities under one umbrella to ensure quality and food safety by
managing and controlling all stages of production. It is located in Raiwand town in the
Punjab province of Pakistan. It deals with the poultry processing. K & N poultry processing
is integrated business containing essential components like breeder, farms, hatchery, and
broiler growing farms, feed mill and poultry processing farm. K & N is the main supplier of
eggs in Pakistan and biggest poultry industry in Pakistan. It was started by a young man,
still a college student Khalil Sattar. He had a vision to foresee a need to establish a poultry
farm. His interest led him to start a broiler farm of 1000 chicks. Company has set four basic
objectives that are absolute integrity, enthusiastic diligence, continuous improvement and
high quality maintenance. These are core of the all the operations which provide an
impelling urge for attaining perfection.
The K&N's group became involved in the poultry business in 1964. Today K&Ns is a
modern, vertically-integrated poultry business with operations ranging from production of
breeding stock to retail shops. The group is engaged in feed-milling, grandparent operations,
parent stock production, pullet growing, hatching, broiler production, and processing.
K&Ns has six broiler growing facilities, each with a capacity of 250,000 to 300,000 birds.
The company has over 60% of market share in frozen and value addition chicken meat
products. The primary outlet for these products is through a chain of highly rated K&Ns
Chicken Stores, which sell chicken and value-added products in Pakistans 15 largest cities.
K&Ns has a strong relationship with Cobb-Vantress Inc., a US poultry supply firm. Cobb
500, the worlds most efficient breed of parents and broilers, was introduced to Pakistan by
K&Ns. Cobb-Vantress and K&Ns also provides training to Pakistani farmers through
seminars conducted by the US experts. The growth of Cobb-Vantress and K&Ns in
Pakistan is a model for the development of the countrys poultry industry.

Products of K & N
1. Hatching eggs
i. Broiler hatching eggs
ii. Layer hatching eggs
2. Day old chicks
3. Poultry feed
4. Processed chicken
i. Premium boneless meat

5.

6.

7.
8.
9.

ii. Whole chicken

iii. Designer cuts
Fully cooked Products
i. Seekh kebabs
ii. Kafta kabab
iii. Chunks
iv. Mughlai tikka
v. chunks
Ready to Cook products
i. Nugets
ii. Croquettes
iii. Burger patties
iv. Chicken tempura
v. Kofta
vi. Combo wings
vii. Fun nuggets
viii. Tornadoz
ix. Hot tender
x. Chapli kabab
xi. Haray baray nuggets
xii. Tender pops
xiii. Shami kebabs
xiv. Thunder fillet
xv. samosa
Deline
Bakistry
i. Patteze
ii. Puff patteze
Stok

Supply Chain Management of K&Ns:

Supply Chain Management is a set of approaches utilized to efficiently integrate suppliers,

manufacturers, warehouses and stores so that merchandise is produced and distributed at the
right quantities, to the right locations, and at the right time, in order to minimize system wide
costs while satisfying service level requirements. (Simchi-Levi et al (2008), p. 1.)
Product flow involves the movement of goods from supplier to customer, as well as any
customer return or service needs, information flow involves getting orders. Supply chain
management flows can be divided into three main flows.

K&N ultimate objective of effective supply chain management is to reduce inventory on

the assumption that products are available when needed

K&N supply chain management involves coordinating and integrating these flows both
within and among companies.
Supply chain management of K&Ns is the oversight of the materials, information and
finances as they move in process from supplier to manufacture to wholesaler to retailer to
consumer and updating delivering status, financial flow consist of credit terms, payment
schedules and consignment and title ownership arrangements.

Purchasing and supplies management:

In supply chain management, suppliers are treated as business partner and long lasting
relationship is maintain with them. Supplier provide the product which is needed to produce
finished product. It includes raw material, packages, energy providers and many other things.
K&Ns maintains a healthy relationship with its suppliers. K&Ns has a large number of suppliers
and all the suppliers are local except the machinery and trucks that is need for distribution and
transportation are imported from countries like china and U.S. Materials that are used in feeding,
packaging, chemicals are locally supplied. K&Ns has started backward integration and produce
its own chicken in various farms around the country. They do not need to order it from other
supplier as they are own producer of its chicken to maintain its quality. It has different poultry
breeding, hatching and feeding mills. Where chickens are produced and hatched according to
quantity standards.
Manufacturing:
K&N includes various business activities such as poultry breeding, hatching, broiler growing,
feed milling, poultry processing, ready to cook and fully cooked products, quality assurance lab
and poultry diagnostic and research institute. In poultry breeding K&N keeps layer and broiler
stock population in different areas of Pakistan including south and northern mountainous areas of
Pakistan. K&N runs several strategically located hatcheries covering all day old chick market.
All the hatcheries equipped with latest technology including modern cooling and heating system
and consistent hatchery environment not depend on outdoor weather condition. K&N also
produces broiler in company own farms for poultry processing. Chickens are given fresh water
and food to avoid food contamination. To ensure high standards chicken lives on healthy and
balanced diet.
When chickens are ready they are sent to poultry processing plant. In poultry processing plant
only healthy chickens are used to produce high quality chicken products. The practice they use
for slaughter is Halal which is by hand according to Islamic law. After halal slaughter chickens
are sent for further processing. This process is purely hygiene and automated manner. Birds are
washed and they are also examined to see they are wholesome and healthy. They are constantly
cleaned and sanitized at every stage to keep it healthy and hygienic. All chickens are passed
through some inspection to ensure safety standards. Some chickens are packed in bone and also
some boneless. Some chicken also prepared to ship whole. Packaging is done according to
different industry requirements. Retail products are packed in K&N special branded packaging.
To ensure freshness and taste and quality, Products are then frozen at very low temperature at -28

C. After packing products are transported into sanitized refrigerated trucks and distributed to
retail outlet. K&Ns quality assurance lab examine entire process from livestock feed to ready to
cook and fully cooked products. Entire integration process is checked and monitored in order to
ensure quality, food safety and wholesome.
Distribution Management:
K&Ns has a very large and extensive distribution systemK. Products are distributed to many
industries such as hotels, restaurants, clubs, airlines and some big companies as well. K&Ns also
have its own chicken stores where all the K&N products are sold. Products are stored
After manufacturing products are sent to distribution centers through its trucks which are
equipped with refrigerator. From distribution center products go to different industries, stores and
retailers and then products are accessible by the consumer.

Information system of K&Ns:

K&Ns uses warehouse management system (WMS). System maintains inventory in the
warehouse and individual location level, SKU level, pallet wise, and unit level inventories for
multiple customers and allow specific inventory attributes and parameters to be built into
manage, allocate or block the inventory. System also uses FIFO methods as products are
perishable. System manages, controls and directs all the operations including receiving

processes, inventory allocation, picking process and finally shipment along with inventory
updating. K&Ns intelligent system guides and helps operation managers to schedule and manage
all the operations for various groups and team simultaneously depending upon work load pattern
and thereby manage resource allocation too.

Strength:
1. K&Ns has a strong distribution network. It has its own distribution centers equipped with
all the modern technologies. These distribution centers are located in all the mega cities
of Pakistan such as Karachi, Lahore, Peshawar, and Quetta.
2. K&N maintains higher standards of quality. Because of its quality it has a good name in
the market.
3. K&Ns has strong information system which keeps the records of all its inventory. System
manages, controls and directs all the operations including receiving processes, inventory
allocation, picking process and finally shipment along with inventory updating.
4. K&Ns backward integration is one of its strength because it produces its own chicken.
5. K&Ns dont need to find supplier for its chicken. It has two big advantages.
i. It reduces overall cost of production and transportation. (Melnyk: Cost)
ii. It has increases the quality and health of its chickens.
iii. They produce chicken according to their need in related to health, size and
weight.
6. Apart from backward integration. K&N has its retail outlets where only K&N products
are sold. These retail outlets are present in all the big cities and equipped with modern
technology. Fresh and new manufacturing products are easily available in those stores.
Because of these stores the company has direct access to its consumer. These stores are
equipped the complaint boxes. Consumers can register any complain with related to staff
and quality of product.
7. K&Ns has a large ability to meet market demand. Chicken demand in Pakistan keep
fluctuating. In Ramadan chicken products demand drastically increased. While rest of the
year it depends in weather hot and cool. K&Ns has the great to ability to quickly meet the
market demand.. ( Melnyk: Responsiveness).

Weakness:
Like every company K&Ns also many weakness.
1. The current challenge that K&Ns is facing in implementation of workflows which
revolve around non-integrated processes. Retailers and manufactures are operating in
different data. In result excessive response time and inaccuracy in forecasting. Retailer
face stock out problems and material shortage. All these things causes loss in sales and
poor customer service.

2. Company face many issues due to power breakdown. In summer country is plagued in
electricity crisis and K&Ns also has to face this issue. Due to power Crisis Company face
many issues in meeting demand. Company has to resort to backup generators hence
increased in cost.
3. Disease control challenge is also an big issue for K&Ns. There are many disease of
chickens are available such bird flu and salmonella. Due to these diseases chicken
become useless and cant be used in further processing. Sometimes company face large
numbers of chicken suffering from these disease. Quality assurance lab has to carefully
examine each chicken which requires lot time and effort. These things create a lot of
problems in high demand time.
4. K&Ns products has very low presence in global market. K&Ns products has a good
demand in global market as well, but company has shown no interest in meeting global
market demand.
5. Lack of presence in rural area of Pakistan. K&Ns products are only available in urban
areas of Pakistan. There is no distribution network in Pakistans rural area. Rural area
comprises 75% of Pakistan. It means 75 % of country is still not served by K&Ns. Major
portion is still untapped by K&Ns.
6. K&Ns faces many issues in its Poor cold supply chain. All the trucks are equipped with
refrigerator which requires a constant maintenance result in higher cost as well.
7. Company has not a good relations with its retailers. Company has part way with metro
and makro. K&Ns has ended its partnership with them. These two stores are the biggest
supermarkets in markets and available in all mega cities. Customers are facing problems
in getting K&Ns products. Pakistan urban population are shifting to these stores and they
have to go to different store for buying K&Ns products.
8. Contamination of products are also the among the issues company faces. Products have
very short life span. Company has to quickly take all its products from its stores when
they reaches near expiry. ( Melnyk: Security)

Conclusion:

References
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2016].
K&N's - Safe and healthy chicken. (2009). K&Ns Certifications. [online] Available at:
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http://www.kandns.com/ [Accessed 25 Apr. 2016].
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[online] Available at: http://tribune.com.pk/story/31082/frozen-food-producers-vie-for-localmarket/ [Accessed 25 Apr. 2016].
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