Rejected

Your report is 72% copied from several sources you are advised to write the
report in your own words and avoid plagiarism.

Also improve all the parts of the report as per the suggestions given against
each section

Internship Report

Operations & Supply Chain Management

Organization: Abdulla Fouad Medical Supplies, Saudi Arabia

A REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,
VIRTUAL UNIVERSITY OF PAKISTAN IN PARTIAL FULFILMENT OF THE
REQUIREMENTS OF THE DEGREE

SUBMITTED BY

Internee: Rao Muhammad Wasim

Student ID: MC190204899

Date: 25th Jan 2023

Department of management sciences,

University: Virtual University of Pakistan

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 ACKNOWLEDGEMENTS

With immense please I, Mr. Rao Muhammad Wasim presenting internship report as part of the
curriculum of “Master’s in supply chain & Operations Management”. I wish to thank all the
people who gave me unending support.

I express my profound thanks to Manager Hosam Arabasy and all those who have indirectly
guided and helped me in preparation of this report.

Rao Muhammad Wasim

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 Executive summary

Abdulla Fouad medical supplies and services has been established in 1983. Since that time, they
have led the pack of Saudi Arabia's healthcare suppliers, helping the country offer the best
healthcare options to its people.

Our mission is to uphold our fundamental values and commitment to quality while being the
premier supplier of cutting-edge healthcare solutions in the Kingdom of Saudi Arabia and other
important markets in the Middle East and Africa.

This paper will discuss supply chain management and operations in one of the top
organizations.With increasing requirements for better service, new products, and quicker
delivery the manufacturing sector remains one of the most competitive. Everyone across the
supply chain must help reduce costs, streamline production, and speed delivery to help their
company compete and remain profitable.

The company has the necessary logistics to handle nationwide shipping, giving them an
advantage over their rival. The company uses a warehouse management system to reduce the
possibility of list inventory, lower warehouse costs, improve employee productivity, optimize
supply chain inventories, and create more efficient production planning and procurement. Cloud-
based warehousing systems also make it simple to access critical data.

In this paper, the business Abdullah Fouad medical supplies and services is briefly introduced.
The company's and its competitors' product ranges are described in the first chapter. The
organization's structure is described in the second chapter to help the reader comprehend the
organization's hierarchy and team members such as the manager, general manager, assistant
manager, and coordinators. My internship plan, which details the beginning and finishing dates
of my internships in three distinct departments, is covered in the third chapter of this report. The
following chapter provides a summary of supply chain management as well as qualitative and
historical information about the company's production plans.

This report will cover operations and supply chain management in one of the leading
organizations. It consists of planning, strategies and quality policies during the production line,

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ways to improve customer satisfaction by speeding up the process from ordering to delivery, the
adaptation of technology to minimize the human errors in SCM, data security, improves
customer services & problem-solving skills.The last portion of this report talks about some
recommendations to increase the supply chain visibility.

The company has proper logistics to cover delivery county wide, which gives them extra benefit
over the competitor. Company is following warehouse management system policies to reduce the
potential for list inventory, reduce warehouse cost and enhance employee utilization, optimize
supply chain inventories, eliminates surprises and emergency deliveries, accurate inventory
management – tracking, billing, and financial data become automatic, more well-organized
production planning and procurement and Cloud-based warehousing systems allow for easy
access to crucial information.

The right policies can take operations to a higher level of efficiency, speed, and order accuracy,
helping to improve your company’s competitiveness and increase customer satisfaction while
keeping operating costs down.

This section must provide an overview of the content to communicate

important information in a concise and accessible manner. All the
sections of the report must be briefly written so that the reader have an
overview what is discussed in the main document.
You have mostly written about the introduction of the company rest of
the sections are missing

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 Table of Contents

Overview of organization

1. Overview Of The Organization........................................................................................................7

1.1 Introduction:......................................................................................................................................8
1.2 Product Lines:....................................................................................................................................8
1.3 Competitors:......................................................................................................................................8
1.4 Address..............................................................................................................................................8
2. Organizational structure................................................................................................................82.
Organizational structure...................................................................................................................9
3. Internship Activity Plan..................................................................................................................13
3.1 Introduction……………………………………………………………………………………………………………………………….13

3.2 Scope………………………………………………………………………………………………………………………………………….13

3.3 Number of employees………………………………………………………………………………………………………………..13

3.4 Internship duration…………………………………………………………………………………………………………………… 14

3.5 Internship departments……………………………………………………………………………………………………………..14

3.5.1 Procurement Department: (4-12-2022 till 15-12-2022).......................................................1413

3.5.2 Logistics Department: (18-12-2022 till 29-12-2022)...........................................................1413
3.5.3 Healthcare Customer Service Department: (1-01-2023 till 15-01-2023)............................1413
4. Training Program........................................................................................................................1514
4.1 Training in Procurement Department...........................................................................................1514
4.2 Training in Logistics Department.................................................................................................1514
4.3 Training in Healthcare Customer Service Department.................................................................1615
5. Analysis Of Production/ Operations Functions Of The Organization.....................................1716
5.1 Production Planning.................................................................................................................1716
5.2 Forecasting techniques………………………………………………………………………………………………………………..17

5.3 Production Process...................................................................................................................1716

5.4 Production Strategies..................................................................................................................1817
5.4.1 Qualitative........................................................................................................................1817

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 5.4.2 Historical..........................................................................................................................1817
5.4.3 Patterns.................................................................................................................................17
Cause and Effect....................................................................................................................................1817
5.4.4 Objectives.........................................................................................................................1919
5.5 Management of Quality.............................................................................................................2019
5.6 Aggregate Planning and Master Production Scheduling........................................................2120
5.6.1 Master Production Scheduling Process.....................................................................................21
5.7 Supply Chain Management.......................................................................................................2322
5.7.1 Material requirement planning (MRP)..................................................................................2422
5.7.2 Distribution requirement planning (DRP).............................................................................2422
Vendors and distributors selection and management.................................................................................23
Coordination in SC and ERP systems................................................................................................23
5.8 Warehousing..............................................................................................................................2524
5.8.1 Ordering Procedure Of Warehouse...........................................................................................25
Receiving.......................................................................................................................................25
Put-away........................................................................................................................................25
Storage...........................................................................................................................................25
Picking...........................................................................................................................................25
Packing..........................................................................................................................................25
Shipping.........................................................................................................................................26
5.8.2 Inventory Strategy And Policy..................................................................................................26
ABC Analysis:...............................................................................................................................26
First In, First Out (FIFO):..............................................................................................................26
First Expired First Out...................................................................................................................27
Replenishment Method..................................................................................................................27
Reorder Point Method or Just In Time(JIT)...................................................................................27
Replenishment on Order................................................................................................................28
6. Critical Analysis...........................................................................................................................2829
7. Conclusion....................................................................................................................................3031
8. Recommendations........................................................................................................................3132
Increase Supply chain visibility.............................................................................................................32
Eco-Friendly SCM.................................................................................................................................32
9. References........................................................................................................................................33

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10. Annexes.........................................................................................................................................34

Overview Of The Organization

Chapter # 01
OVERVIEW OF THE ORGANIZATION
1. 1.1
Introduction:

Abdulla Fouad Organization (AFG), a vibrant and varied business group that was one of Saudi
Arabia's early and most well-known success stories, is still a key player in the development of
the Kingdom today.

AFG was founded in Ras Tanura as a tiny service business 75 years ago, and thanks to first
mover advantage, it has since expanded into numerous new industries and invented a variety of
goods and services. Serving the Oil & Gas, Energy, Healthcare, Logistics, Information

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Technology, Consumer, and Construction sectors, it is well known for excellence across all of its
business segments.As one of Saudi Arabia’s earliest and most celebrated success stories, Abdulla
Fouad Group (AFG) is a dynamic and diversified business group that continues to play a pivotal
role in the Kingdom’s progress to this day.

Settled in Dammam, AFG has local workplaces in Riyadh, Jeddah, and a few satellite
workplaces across KSA and GCC, all devoted to giving the most noteworthy conceivable client
care. AFG has well established associations with a different client base across the district,
including both public and confidential area associations.Beginning 75 years ago as a small
service company established in Ras Tanura, AFG’s first mover advantage saw it expand into new
industries, pioneering many products and services along the way. It is well known for excellence
across its business units, serving the Oil & Gas, Energy, Healthcare, Logistics, Information
Technology, Consumer, and Construction sectors.
Headquartered in Dammam, AFG has regional offices in Riyadh, Jeddah, and several satellite
offices across KSA & GCC, all dedicated to providing the highest possible customer service.
AFG has long-standing relationships with a diverse client base across the region, including both
public and private sector organizations.

1.2 Product Lines:

Oil & Gas
Industrial
Construction
Information Technology
Health care
Logistics
Consumer & Real state
1.3
Competitors:
Al-Jeel Group
Tamer Group
AL Ghosaibi Group of Companies
1.4
Address:
Abdulla Fouad Building
Dammam Khobar Highway-31411
P.O. Box 257, Dammam, Saudi Arabia
Tel: (+966) 013 814 1414
Fax: (+966) 013 810 2100

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Email: info@abdulla-fouad.com

CHAPTER # 02
Organizational structure

Figure 1: New AFMSS Structure

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 Figure 2: Customer Service Dept Hierarchy

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 Figure 3: Communication Outline

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 Figure 4: Technical FSE Structure

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 CHAPTER # 03
Internship Activity Plan

3.1 Introduction of office:

Enlisted and head office of the organization is arranged at Saudi Arabia. AFMS - Abdulla Fouad
Clinical Supplies and Administrations has been laid out in 1983, under the umbrella of Abdulla
Fouad group, and from that point forward have been at the front of Saudi Arabia's medical
services sellers, helping the Realm in giving the best medical care answers for its residents.
Scope
 Core Laboratory and diagnostics
o Hematology
o Clinical Chemistry
o Microbiology & Virology
o Serology
o Immunology
o Histopathology
 Medical & Surgical Devices
o Endoscopy
o Infection prevention
o Surgical instruments
o Respiratory consumables
 Molecular Diagnostics
 Point of Care
 Nuclear Medicine
 Blood Bank & Transfusion Medicine
 Research and Life Sciences
 Calibration Center
3.2 Number of employees: Following sections are missing:

Our growing AFMS team of more than 300 employees are available to provide:

o Customer Support
o Sales and Marketing
o Business Operations
o Regulatory Affairs
o Procurement

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 o Finance and Admins

3.3 Internship duration in different departments:a) A brief introduction of the

office/branch/factory/facility where you did your internship

1. Procurement department (Dec 04,2022 to Dec 15,2022)

2. logistics department (Dec 18,2022 to Dec 29, 2022)
3. Healthcare Customer Service Department: (Jan 01,2023 to Jan 15,2023)

3.4 Internship departments: b) Number of employees working in the office/facility

c) Starting and ending dates of your internship
d) Names of the departments in which you got training and the duration of your training

Internship was scheduled in various departments mentioned below.

3.4.1 Procurement Department: (4-12-2022 till 15-12-2022)

All aspects of a company’s purchasing process are referred to as procurement. The procurement

department serves internally by negotiating costs with the vendors, preparing the contracts, and
issuing vendor’s purchase orders. I learned some of the important functions like sourcing,
negotiations, contracting, monitoring of supplier’s performance, compliance with business
protocols, collaboration with other manufacturing departments, forecasting and competitor
analysis. The department has approximately 20 employees including procurement manager.All
parts of an organization's buying cycle are alluded to as obtainment. The acquirement office
serves inside by arranging costs with the sellers, setting up the agreements, and giving merchant's
buy orders. I took in a portion of the significant capabilities like obtaining, talks, contracting,
observing of provider's exhibition, consistence with business conventions, cooperation with other
assembling divisions, determining and contender examination. The division has roughly 20
workers including acquisition manager.

3.4.2 Logistics Department: (18-12-2022 till 29-12-2022)

The coordinated factors process comprises of the course of reconciliation of a few perspectives
like material taking care of, warehousing, data, transportation, bundling and stock. Organization
has coordinated operations division in administrative center while it has 4 stockrooms in all areas
of Saudi Arabia. The division has 90 workers including strategies director. I took in a portion of

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the significance capabilities like request handling, stock administration, transportation, bundling,
request estimating, material taking care of and fleet the board.The logistics process consists of
the process of integration of several aspects such as material handling, warehousing,
information, transportation, packaging and inventory. Company has logistics department in Head
office while it has 4 warehouses in all provinces of Saudi Arabia. The department has 90
employees including logistics manager. I learned some of the importance functions like order
processing, inventory management, transportation, packaging, demand forecasting, material
handling and fleet management.

3.4.3 Healthcare Customer Service Department: (1-01-2023 till 15-01-2023)

Customer support makes an extension between the clients and association. AFMS has 40 field
administration engineers, 30 deals subject matter experts, 15 application trained professionals, 8
provincial supervisors, 1 client care chief, 1 Senior supervisor. I took in a portion of the
significant capabilities like addressing inquiries concerning an organization's items or
administrations, handling requests and exchanges, settling issues and investigating specialized
issues, conveying data about an organization's items, giving proactive client outreach, taking care
of client grumblings, gathering and examining client criticism, answering client surveys,
following client care KPIs and measurements.

Customer service creates a bridge between the customers and

organization. AFMS has 40 field service engineers, 30 sales specialists,
15 application specialists, 8 regional managers, 1 customer support
manager, 1 General Manager. I learned some of the important functions
like answering questions about a company’s products or services,
processing orders and transactions, resolving issues and troubleshooting
technical problems, delivering information about a company’s products,
providing proactive customer outreach, handling customer complaints,
collecting and analyzing customer feedback, responding to customer
reviews, tracking customer service KPIs and metrics.

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 CHAPTER #04
Training Program

4.1 Training in procurement department:Procurement Department

In the procurement department I worked from Dec 04, 2022 to Dec 15, 2022. There, I allocated
the occupation of Obtaining, talks, contender examination and observing provider execution.
In obtaining, I have given errands to analyze various merchants. I began to qualify providers
according to expected information to guarantee that chose provider will agree organization's
arrangements and principles. Best providers are chosen by evaluating provider capabilities, risk
variables, and strategy consistence. Second step is to haggle with chosen provider. I needed to
get the greatest item from the providers at the sensible cost. This capability is exceptionally
imperative for the association's productivity since, in such a case that expenses are low then
consequently benefit will in general be high.
Write the tasks and activities that you performed in this department during your internship
I have given tasks to compare different vendors in sourcing. I started to qualify suppliers as per
required data to ensure that selected supplier will comply company’s policies and standards. Best
suppliers are selected by assessing supplier qualifications, risk factors, and policy compliance.
One of the significant factors for controlling costs is finding the best and reliable vendor.
Secondly is to negotiate with selected supplier. I had to procure the highest quality product from
the suppliers at the best possible price. This function is very vital for the organization`s
profitability because if purchasing costs are high, an organization can end up spending well over
half of its revenue in this area thereby affecting its bottom line.
I have given a task to make competitor analysis. What exactly you did to make competitor
analysis Competitor analysis enables the team to understand the market scenario, quality, and
price details. Procuring the best items at a competitive price is the ultimate objective of the
procurement department and it could be done with an effective analysis of the market
competitionsI also given the task to analysis the market by following means:
o Assess your market position.
o Interpret key trends.
o Plan for the future.
o Uncover new ideas or opportunities.
.
o Identify key competitor’s weaknesses

4.2 Training in Logistics Department:

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In this division I was appointed the assignment to armada the market. To move the products
transportation mode was chosen which relies upon the shipment volume and conveyance
objective. It can incorporate different capabilities, for example, vehicle funding and renting,
permitting and consistence, vehicle upkeep, mishap the board and store network the executives.
I likewise attempted to deal with materials inside a distribution center or stockpiling region. It
includes the utilization of manual, semi-endlessly mechanized frameworks to keep stock and to
store the products in a protected manner.
Some tasks were assigned to me during my stay in logistics like fleet management. As per the
shipment need the transportation was selected. It totally depended on the shipment volume and
delivery destination. Fleet management includes management of commercial or private motor
vehicle, ships or rail cars. It can include various functions such as vehicle financing and leasing,
licensing and compliance, vehicle maintenance, accident management and supply chain
management.

I also tried to handle materials. It is the movement of goods or materials within a warehouse or
storage area. It involves the use of manual, semi-automated and automated systems and
equipment. It's important to consider the storage, protection and control of goods throughout
their manufacturing, warehousing and distribution phases.
I also participated in inventory management tasks. It is a critical component of the supply chain
such as, trackings inventory from a company's manufacturing plant to the warehouse and from
warehouse to these facilities to the selling locationthe point of sale.. The main goal is to have the
right goods or materials. This entails inventory visibility, including determining when to order,
how much to order and where to store the items. Write the procedure and tasks you actually did
during your internship

4.3 Training in Healthcare Customer Service Department:

In this department, I have allocated some of major tasks by supervisor. It includes updating sales
force information regularly and . The information like installation of equipment, status, customer
feedback and review, monitor all the KPIs related to salesforce.
Those KPIs consist of
 NPS (Net promoter Score) to check how frequently customers are recommending your
company or service to others.
 CSAT (Customer Satisfaction Score) to measure customer satisfaction.
 FCR (The First Contact Resolution Score) to measure the number of cases resolved at the
very first attempt.
 ART (The Average Resolution Time) to observe how long on average the support agents
take to solve the customer issues.
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Gathering and analyzing the client criticism is important for the organization. I was
straightforwardly drawn in with the clients for getting their criticism in regards to the items, or
during live visit meetings, I request that clients rate the assistance. In the wake of gathering
criticism, I should examine and take notes of the ideas whenever required. During my work I got
positive criticism about the model way of behaving of staff and availability of clinical record and
about great administration abilities.
Collecting and analyzing the customer feedback is necessary for the company. I was directly
engaged with the customers for getting their feedback regarding the products, or during live chat
sessions, I ask customers to rate the service. After collecting feedback, I must analyze and take
notes of the suggestions if required, on what are the areas of further improvement. I had to pass
this information to the service supervisor. Specifically mention what sort of information you got
from the customers and what feedback you received and so onCustomer Feedback:

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 CHAPTER # 05

Analysis Of Production/ Operations Functions oOf The

Organization

5.1 Production Planning

Production planning is the most common way of concluding how an item or administration will
be made before the assembling system starts. All in all, it is the means by which organization
intends to oversee store network, unrefined components, representatives and the actual space
where the assembling system happens.
Creation directors take choice in light of authentic creation patterns with new, possibly
significant patterns on the lookout. Administrator chooses the utilization of assets that is the most
un-exorbitant and most time proficient. As the arrangement is done, administrator screens the
arrangement and assess the distinctions underway. Supervisors modify the designs to meet the
client objectives all the more productively and more effective in the execution.
Production planning is the process of deciding how a product or service will be manufactured
before the manufacturing process begins. In other words, it is how company plans to manage
supply chain, raw materials, employees and the physical space where the manufacturing process
takes place.

5.2 Production managers take decision based on historical production trends with
new, potentially relevant trends in the market. Manager selects the use of resources
that is the least costly and most time efficient. As the plan is carried out, manager
monitors the plan and evaluate the differences in production. Managers alter the
plans to meet the customer goals more efficiently and more successful in the
execution.

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Production Process

Figure 5: Production ProcessFigure 5: Production Proces

5.3 Most common forecasting techniques:

Some common techniques the on which Percent adjustment, 12-month moving average.

5.4 Production Strategies

To develop strategies, Ranking directors should assess present position and figure how it will
change during arranging period. Such estimates give direction in determining vital goals,
Contingent upon the sort of procedure for creating, administrators should pick the anticipating
strategies that will best permit them to anticipate how the business will develop. To develop
strategies, Senior managers must evaluate present position and forecast how it will change
during planning period. Such forecasts guide in specifying strategic objectives, and the validity
of strategy depends on the accuracy of forecasting. Depending on the type of strategy for
developing, managers must choose the forecasting techniques that will best allow them to
predict how the business will evolve.

Following are the forecasting techniques which are followed by the AFMS firm: , write the
techniques which this organization is using

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5.4.1 Qualitative Approach

A qualitative approach is phenomenal for starting direction. In this approach organization relies
upon the judgment of those, nearest to the business sectors. This approach begins by asking deals
and promoting workers for their viewpoints on how the business sectors will change. On the off
chance that chiefs collect the data from various sources and observe that it is reliable, they have a
decent qualitative forecast.
A qualitative approach is excellent for initial guidance and is based on the judgment of those
closest to the markets. Start by asking sales and marketing employees for their opinions on
how the markets will change. Input from suppliers and customers is also useful. When
managers assemble the information from different sources and find that it is consistent, they
have a good qualitative forecast.

5.4.2 Historical data approach:

Company uses To check company’s qualitative forecast and increase its accuracy managers
need objective information. the most An accurate and simple method of quantitative
forecasting which is to is to extrapolate historical data. Company use the historical data to for
future plannings.This forecasting is used in stable conditions only.

5.4.3

Patterns

Sometimes company needs monthly forecasting, but the historical data varies irregularly
monthly. Many business variables depend on annual or seasonal influences that are
predictable and make variable historical data relevant.

Cause and Effect

In the event that there has been a significant change in business circumstance, directors might
need to change in verifiable information. For instance, in the event that another contender
enters market, organization might gauge decreased benefits. In the event that organization
present another item, it will have item sendoff costs that will at first push down its benefits yet
in the long run increment deals. In the event that chiefs can recognize the reason for a variety
in verifiable information, directors should remember the impact for their gauges to cause them
to mirror what is going on of organization on the lookout.

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If there has been a major change in business situation, managers may have to adjust in
historical data. For example, if a new competitor enters market, company may forecast reduced
profits. If company introduce a new product, it will have product launch costs that will initially
depress its profits but eventually increase sales. If managers can identify the cause for a
variation in historical data, managers must include the effect in their forecasts to make them
reflect the changed situation of company in the market. Production strategy can be seen in the
following picture:

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 Production strategy can be seen

in the below pictur

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Objectives

The overall objectives of production planning are mentioned below

o Enhance assets and the booking of assets to fulfill creation need
o Guarantee an effective timetable
o Have assets prepared when required
o Keep stock at ideal levels
o Increment efficiency of interior assets (human, work focuses, machines, tooling, and so
forth.)
o Further develop consumer loyalty
o Guarantee the perfect individual gets appointed to explicit cycles
Optimize resources and the scheduling of resources to meet production demand

 Ensure an efficient schedule

 Have resources ready when needed
 Keep inventory at optimal levels
 Increase productivity of internal resources (human, work centers, machines, tooling, etc.)
 Improve customer satisfaction
 Ensure the right person gets assigned to specific processes
 Coordinate with other departments (sales, customer service, purchasing, etc.)

5.5 Management of Quality

Abdulla Fouad is following ISO 9001:2015 standards.  Organizations use the standard to
demonstrate the ability to consistently provide products and services that meet customer
and regulatory requirements. It is the most popular standard in the ISO 9000 series and the
only standard in the series to which organizations can certify.

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ISO 9001:2015 helps to improve

o Arrange processes
o Work on the productivity of processes
o Constantly move along
o A portion of the vital updates in ISO 9001:2015 include:
o The presentation of new wording
o Rebuilding a portion of the data
o An accentuation on risk-based remembering to improve the utilization of the interaction
approach
o Further developed appropriateness for administrations
o Expanded administration prerequisites

 Organize processes
 Improve the efficiency of processes
 Continually improve
 Some of the key updates in ISO 9001:2015 include:
 The introduction of new terminology
 Restructuring some of the information
 An emphasis on risk-based thinking to enhance the application of the process approach
 Improved applicability for services
 Increased leadership requirements

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Figure 7: The Seven Principles of ISO 9001:2015

5.5 Aggregate Planning and Master Production Scheduling

The objective of total arranging is to accomplish a creation plan that will really use the
association's assets to match anticipated request. Total arranging choices are vital choices that
characterize the structure inside which working choices will be made. The interest of any item
isn't consistent. It might change as per economic situations.The goal of aggregate planning is to
achieve a production plan that will effectively utilize the organization’s resources to match
expected demand. Aggregate planning decisions are strategic decisions that define the
framework within which operating decisions will be made. The demand of any product is not
constant. It may change according to market conditions.

Managers use below strategies to meet the uneven demand.

 Maintaining a level workforce

 Maintaining a constant rate of output
 Matching demand in every period
 Using a combination of various decision variables

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5.6

Master Production Scheduling Process

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 Figure 8: 7 steps of MPS

5.7 Supply Chain Management write the SCM practices of the organization
which they are following

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Supply chain management is the combination of art and science that goes into further developing
the manner by which organization finds best crude parts its necessities to make an item and
convey it to clients. The accompanying ae the five essential parts of inventory network the
executives which are trailed by the AFMS.
1. Plan
2. Source
3. Make
4. Deliver
Return
5.

1) Material requirement Pplanning: (MRP)

2)

This is an essential part of production network the board. AFMS utilize this procedure for
overseeing all the assets which are expected to create items for the clients. In arranging
segment Organization set metrices to screen the store network to limit the expense and
convey quality item.A Material Requirements Planning (MRP) system accelerates the
manufacturing production process by determining what raw materials, components and
subassemblies are needed, and when to assemble the finished goods, based on demand and
bill of materials (BOM). It does this by asking three main questions:
What is needed?
How much is needed?
When is it needed by?

The Planning MRP process is further can be broken down into four major steps:
 Identifying requirements to meet demand.
 Checking inventory and allocating resources.
 Scheduling production
 Identifying issues and making recommendations

3) Source:

In this part of store network, the board organization pick the provider that will get it done
which are expected to create our products. Organization fosters a bunch of evaluating,
conveyance and installment processes with providers and make metrices for observing
and further developing relationship.

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 Organization likewise set up processes for dealing with the stock of products you get
from providers, including getting shipments, confirming them, moving them to the
assembling offices and approving provider's installments.

4) Make:
This is the creation step of the organization. In this step organization plan the
fundamental exercises for creation, testing, bundling and groundwork for conveyance. In
this step of store network organization, organization estimates quality levels, creation
result and laborer efficiency.

5) Deliver:
In this step of store network organization allude numerous insiders as coordinated
operations. These operations coordinate the receipt of requests from clients and foster an
organization to the distribution center, then, at that point, get items from the stockroom
and pick them to the clients and set up a receipt.

6) Return:
This is the riskiest piece of production network the board. In this step clients connect to the
organization for the imperfect and overabundance merchandise and afterward organization
reclaim those structure the clients.

5.7.1 Material requirement planning (MRP)

A Material requirement planning (MRP) framework speeds up the assembling creation process
by figuring out what natural substances, parts and subassemblies are required, and when to
collect the completed products, in view of interest and bill of materials (BOM). It does this by
posing three principal inquiries:
What is needed?
How much is needed?
When is it needed by?

The MRP process can be broken down into four major steps:
• Identifying requirements to meet demand.
• Checking inventory and allocating resources.
• Scheduling production
• Identifying issues and making recommendations
In addition, the material requirements planning system (MRP) helps company to maintain low
inventory levels by controlling manufacturing, purchasing, and delivery activities.

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5.7.2 Distribution requirement planning (DRP)
It is expansion of Material requirement planning (MRP). It is a cycle to make the conveyance of
merchandise productive by deciding its amount and where it is more required. Essentially, it is
the utilization of MRP standards to the conveyance climate, coordinating the unique necessities
of dissemination.
It is used by the organizations to guarantee the accessibility of right number of materials with
impeccable timing and perfect spot. It utilizes time staged plan so it can guarantee the opportune
creation of item.
The key elements in DRP are
• Demands
• Current Inventory levels
• Target safety stock
• Quantities
• Replenishment lead times.

Abdulla Fouad involves SAP for SCM. SAP permits associations to design and execute
operations inside supply organizations and to perform work process the executives. SAP SCM
can boundlessly work on by and large proficiency and beneficially soothes out network
operations.In addition, the material requirements planning system (MRP) helps company to
maintain low inventory levels by controlling manufacturing, purchasing, and delivery activities.

Distribution requirement planning (DRP)

It is extension of Material Requirement Planning (MRP) . It is a process to make the delivery of

goods efficient by determining its quantity and the location where it is more required.
Basically, it is the application of MRP principles to the distribution environment, integrating
the special needs of distribution.

It is utilized by the firms to ensure the availability of right number of materials at the right time
and right place. It uses time phased schedule so that it can ensure the timely production of
product.

The key elements in DRP are

 Demands
 Current Inventory levels
 Target safety stock
 Quantities
 Replenishment lead times.

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The DRP process can either use a push or pull method. First, the pull method involves demands
for finished goods shifting upward throughout the system to fulfil customer orders. The push
method is the opposite of the pull method - instead, goods are sent downward through the
system.

Vendors and distributors selection and management

Supplier selection is the process by which firms identify, evaluate, and contract with suppliers.
The supplier selection process deploys an enormous amount of a firm’s financial resources and
plays crucial role for the success of any organization. The main objective of supplier selection
process is to reduce purchase risk, maximize overall value to the purchaser, and develop
closeness and long-term relationships between buyers and suppliers.

With strong Requirements Documentation and Vendor Selection Criteria in place, the process of
researching and selecting vendors begin. After locating potential vendors, company will send out
a “Request for Information” (RFI) to gather basic information from each vendor and then
compare them against pre-established selection criteria. From there “Request for Proposal” or
RFP (a highly detailed breakdown of each vendor’s services) is carefully reviewed and finally
selects the vendor as per requirement.

Coordination in SC and ERP systems

SCM is a cumbersome and challenging process for any organization. ERP solutions consolidate
all activities into a single dashboard instead of managing SCM and other business operations on
separate systems. In addition, the role of ERP in supply chain management is to achieve
operational efficiency by automating the SCM process. From resource management to sales,
ERP streamlines SCM by integrating workflows, finance, and information for your long-term
business success.

Abdulla Fouad uses SAP for SCM. SAP allows organizations to plan and execute logistics
within supply networks and to perform workflow management. SAP SCM can vastly improve
overall efficiency and productively streamlines network logistics.

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Following are the benefits of SAP SCM,

o Increment perceivability of the delivery interaction to assist with decreasing the day's
deals remarkable
o Successfully oversee determining and arranging popular and supply process
o Upgrade stock, request satisfaction and delivery of merchandise
o Disperse key data to all partners across the organization
o Further develop correspondence and increment joint effort between business lines to
oversee organic market process.
o Further develop creation proficiency and lessen creation quality issues, hence decreasing
expense of merchandise sold.
o Implement contract consistence for supply-side and provider side prerequisites.
o Lessen transportation obligations and expenses; and expands discounts and motivations

Increase visibility of the shipping process to help reduce the day’s sales outstanding
Effectively manage forecasting and planning in demand and supply process
Optimize inventory, order fulfillment and shipping of goods
Distribute key information to all stakeholders across the network
Improve communication and increase collaboration between business lines to manage supply and
demand process
Improve production efficiency and reduce production quality issues, therefore reducing cost of
goods sold
Enforce contract compliance for supply-side and supplier-side requirements
Reduce transportation duties and taxes; and increases rebates and incentives

5.7.3 Warehousing Warehousing

Abdulla Fouad claims a confidential stockroom as a storage space instead of leased from an
outsider supplier. This kind of warehousing courses of action permits organization to have more
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command over their stock and transportation tasks. Abdulla Fouad has private stockroom in
every one of the locales like southern, western, eastern and vital to cover the entire country. there
are many advantages of having a confidential stockroom:Abdulla Fouad owns private warehouse
as a storage facility rather than rented from a third-party provider. This type of warehousing
arrangement allows company to have more control over their inventory and shipping operations.
Abdulla Fouad has private warehouses in all the regions like southern, western, eastern, and
central to cover the whole country.

There are many benefits to having a private warehouse, including:

Increased Flexibility.
 Increased flexibility
 Improved inventory control
 Reduced shipping costs
 Greater security

5.8 Enhanced branding opportunities Ordering Procedure of Warehouse

The warehouse management process is composed of six major steps that are highly dependent on
each other.

Receiving

Stockroom getting is the first and one of the main cycles of distribution center administration.
This step expects beneficiaries to actually take a look at approaching things and ensure that they
are of the right amount, are working appropriately, and are gotten expeditiously.

Put-away

Put-away is the second stockroom the board interaction where the things got will be moved from
the getting docks onto their most ideal stockpiling areas. A proficient and exact set aside process
guarantees the security of representatives and the protected stockpiling of things. It likewise
amplifies space designation, facilitates following of things, and limits voyaging season of items
which all at last improve the entire stockroom experience.

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Storage

In the storage process, it is important to keep items in their most appropriate location throughout
the warehouse. Considerations include safety, space, and efficiency.

Picking

Picking, as the name proposes, is the stockroom the board interaction where representatives find
and get individual things across the distribution center to satisfy orders. This is perhaps of the
most pivotal move toward the entire cycle since it is straightforwardly attached to consumer
loyalty, Picking.

Packing:

Then, we have the method involved with pressing or bundling. Here every one of the picked
things for a particular client are solidified and ready to be conveyed. Contemplations that must
be noticed incorporate parts, for example, precise pressing slip, suitable bundling materials
(particularly for delicate things), and the best bundling weight.

Shipping

Transportation or conveyance is the zenith of the multitude of recently referenced strides of

stockroom the board. With this cycle, pertinent staff conveys the settled requests while
guaranteeing that the proper transportation mode is used to carry the things to the clients.
Transporting is possibly thought to find actual success assuming that the things are conveyed
with the right documentation, brilliantly, and as per the normal quality.

 Improved Inventory Control.

 Reduced Shipping Costs.
 Greater Security.
 Enhanced Branding Opportunities.

Private warehouses give companies the ability to tailor their storage and shipping processes to
meet their specific needs. This increased flexibility can lead to improved efficiency and cost
savings. In addition, private warehouses offer better security for inventory as well as enhanced
branding opportunities through custom labeling and packaging.

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Ordering Procedure Of Warehouse

The warehouse management process is composed of six major steps that are highly dependent on
each other.

Receiving

Warehouse receiving is the first and one of the most important processes of warehouse
management. This step requires receivers to check incoming items and make sure that they are of
the right quantity, are functioning properly, and are received promptly.

Put-away

Put-away is the second warehouse management process where the items received will be moved
from the receiving docks onto their most ideal storage locations. An efficient and accurate put-
away process ensures the safety of employees and the safe storage of items. It also helps
maximize space allocation, eases tracking of items, and minimizes traveling time of products—
which all ultimately enhance the whole warehouse experience.

Storage

In the storage process, it is important to keep items in their most appropriate location throughout
the warehouse. Considerations include safety, space, and efficiency.

Picking

Picking, as the name suggests, is the warehouse management process where employees locate
and pick up individual items across the warehouse to fulfill orders. This is one of the most
crucial steps in the whole process because it is directly tied to customer satisfaction.

Packing

Next, we have the process of packing or packaging. This is the part where all the picked items
for a specific customer are consolidated and prepared to be delivered. Considerations that have to
be observed include components such as accurate packing slip, appropriate packaging materials
(especially for fragile items), and the ideal packaging weight.

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Shipping

Shipping or delivery is the culmination of all the previously mentioned steps of warehouse
management. With this process, relevant staff sends out the finalized orders while ensuring that
the appropriate transportation mode is utilized to bring the items to the customers.

Shipping is only considered successful if the items are delivered with the correct documentation,
at the right time, and according to the expected quality.

Inventory Strategy And Policy

The company follows multiple inventory strategies to manage the supply chain in kingdom.
Using SAP and QAD software help company to automate the logistics. Some of the strategies are
mentioned below

ABC Analysis:

The ABC analysis of stock is a method of separatin products into 3 classes to determine their
importance.

 Class A: 10 to 20% of products representing 80% of the total revenues. These are the
most important products. Breakage is not an option and inventory monitoring must be
rigorous and regular.
 Class B: 30 to 40% of the products which represent 15% of the total revenues. These are
intermediate products, and it is advisable to monitor these regularly, to always ensure a
products are available.
 Class C: 50% of products that represent 5% of the total revenues. These products require
less frequent replenishment. Replenishment is only needed when all the stock has been
sold, to minimize storage costs.
First In, First Out (FIFO):

First in First out (FIFO) is a supply chain best practice that specifically refers to the sequence in
which inventory is booked and subsequently dispatched. FIFO inventory method allows
company to align the cost of inventory more accurately with the current market value, reducing

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the impact of inflation. More specifically, company’s most recently acquired stock can be sold at
a price that better reflects this market value.

In terms of business profitability, FIFO also ensures that the older inventory cost is applied to the
cost of goods sold, which in turn results in a lower expense on company’s income statement and
a higher profit.

Cost of goods sold can be calculated by:

Cost of goods sold = Cost of inventory at the beginning of the year + Additional inventory costs
(purchased during the year) - Cost of inventory at the end of the year

First Expired First Out

First Expired First Out (FEFO) ensures that the products with the most imminent expiration date
are shipped first. QAD software tracks the expiry date of each item code. Some of items have
short expiry, in new shipment. So, in this way the short and near expiry will be dispatch first.

Replenishment Method

This method consists of placing a regular restocking order, by defining a stock level status of
products. The quantity that constitutes the difference between the current stock and the optimal
stock level is defined beforehand.
This inventory and supply management method is particularly useful for expensive and
perishable products sold on a regular basis.

Reorder Point Method or Just In Time(JIT)

The reorder point method, or “just-in-time” method, is a supply chain management method that
requires defining a minimum stock level in advance.
As soon as this level is reached, a replenishment order is triggered. The timing of the order is
determined by stock levels and delivery times.
This method is particularly relevant for products whose frequency of sales is difficult to
anticipate. It is also used for products whose storage costs are high and must be optimized
wherever possible. It can be calculated by below method.

Order Point = Safety Stock + Average Sale x Average Lead Time

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Safety stock = (Maximum Sale x Maximum Delay) – (Average Sale x Average Delay)

Replenishment on Order

Restocking to order is advisable when it is not possible to know when or how many products the
company will sell. It makes it impossible to establish accurate sales forecasts.
This method consists of restocking products when the low stock number is reached. It is used
when the risk of stock shortage is better than overstocking.
By ordering variable quantities on variable dates, this method is responsive to changes in
consumption. It is vital to have a good grasp of what is always in stock. This method can result
in high delivery costs, due to the random nature of orders to suppliers.

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 Chapter # 06

Critical Analysis

Supply chain management (SCM) is vital and powerful to all organizations. A better inventory
network enhances the association's activity which eventually gives better incentive than the end
client for which proficient client reaction (ECR) is pivotal in light of the fact that ECR manages the
interest the executives which is expected for fulfilling the interest of client by rapidly and really
applying item arrangement techniques, quick presentation of the new item and advertising
correspondence by lessening stocks and conveyance time.SCM) is very important and effective to
all companies. An improved supply chain adds superior value to the organization’s operation
which ultimately gives superior value proposition to the end user for which efficient customer
response (ECR) is crucial because ECR deals with the demand management which is required
for satisfying the demand of customer by quickly and effectively applying product assortment
strategies, rapid introduction of the new product and marketing communication by reducing
stocks and delivery time.

I have observed following improvements as compared to the competitors of AFMSS,

o Cost execution: by further developed efficiency and lower input costs

o Client care: by offering support quality
o Process ability: by keeping up with consistency in quality
o Efficiency and reliability: by expanded control of material streams along the store
network

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 o Production network the executives includes working on the inward cycles, yet in addition
processes acted related to providers, wholesalers, and clients. It likewise gives
extraordinary chances to further develop item execution and convey better worth than the
clients. Thus, store network the board can emphatically affect the benefit of an
organization through diminishing functional expense and expanding consumer loyalty
thus dedication and income.
o Decrease money due assortments with better perceivability into the AR interaction,
maturing, and augmentation of credit and subsequently, help to diminish the day's deals
extraordinary.
o Successfully oversee estimating and dealing with abrupt changes popular and supply
process.
o Appropriate stock streamlining, request satisfaction, and transportation of the
merchandise.
o Circulation of the critical data to every one of the partners spread across the organization.

Further develop correspondence and coordinated effort between various business lines to oversee
request and supply process in an association.Cost performance: by improved productivity and
lower input prices

o Actually, utilize Net Fixed resources NFA like plants and gear.
o Further develop creation proficiency and decrease underway quality issues and
consequently diminish cost of products sold.
o To diminish transportation obligations and assessments and increment refunds and
motivations. It likewise assists with lessening transportation mistakes.
o Tasks The board carries out viable quality measures during creation to further develop
item quality. It guarantees the items are of the greatest quality norms to meet the
objective client's assumptions.
o By persistently searching for better approaches to improve and add new innovations,
tasks the board assumes a vital part in development and keeping a business
serious.Customer Service: by providing service quality
Process capability: by maintaining consistency in quality
Productivity and dependability: by increased control of material flows along the supply chain
Supply chain management involves improving the internal processes, but also processes
performed in conjunction with suppliers, distributors, and customers. It also provides great
opportunities to improve product performance and deliver superior value to the customers. As a
result, supply chain management can dramatically have an impact on the profitability of a

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 company through reducing operational cost and increasing customer satisfaction and so loyalty
and revenue.
Reduce accounts receivable collections with better visibility into the AR process, aging, and
extension of credit and consequently, help to reduce the day’s sales outstanding.
Effectively manage forecasting and handling sudden changes in demand and supply process.
Effectively use Net Fixed assets NFA like plants and equipment.
Proper inventory optimization, order fulfillment, and shipping of the goods.
Distribution of the key information to all the stakeholders spread across the network.
Improve communication and collaboration between different business lines to manage demand
and supply process in an organization.
Improve production efficiency and reduction in production quality issues and hence reduce cost
of goods sold.
To reduce transportation duties and taxes and increase rebates and incentives. It also helps to
reduce transportation errors.
Operations Management implements effective quality measures during production to improve
product quality. It ensures the products are of the highest quality standards to meet the target
customer’s expectations.
By continuously looking for new ways to improve and add new technologies, operations
management plays a crucial role in innovation and keeping a business competitive.
Great teamwork in all the departments
o Activity the board helps in propelling the workers towards their jobs. Activity
administrators guide all people groups in playing out their jobs and furnish them with
better air. Workers are compensated and compensated by their presentation level.
Activity the board helps in working on the generosity and presence of the association. It
guarantees that quality items are conveyed to all clients that could give them better
fulfillment and satisfies them.
o Activity the board works on the efficiency of representatives. It checks and measures the
exhibition surprisingly working in the association. Activity supervisor prepares and
instruct their representatives for better execution.Operation management helps in
motivating the employees towards their roles. Operation managers guide all peoples in
performing their roles and provide them with better atmosphere. Employees are
remunerated and rewarded according to their performance level.

 The organization is attempting to work on its tasks and store network by normal reviews
and Quality control certificates. The organization is making great incomes after the
execution of SCM mechanization programming and severe QC conventions. All offices
are attempting to keep guideline sops given by the executives.Operation management
helps in improving the goodwill and presence of the organization. It ensures that quality
products are delivered to all customers that could provide them better satisfaction and
makes them happy.
 Operation management improves the productivity of employees. It checks and measures
the performance of all people working in the organization. Operation manager trains and
educate their employees for better performance.

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The company is trying to improve its operations and supply chain by regular audits and Quality
control certifications. The company is making good revenues after the implementation of SCM
automation software and strict QC protocols. All departments are trying to follow standard sops
given by management.

Chapter # 07
Conclusion

In conclusion, the advantages should be visible as progress in SCM that remembers decreased
cost coming about for cost effectiveness, worked on quality bringing about consumer loyalty,
expanded ability of cycle and expanded efficiency and reliability. At last these enhancements
increment the productivity of the organization.the benefits can be seen in the form of
improvement in SCM that includes reduced cost resulting in cost efficiency, improved quality

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resulting in customer satisfaction, increased capability of process and increased productivity and
dependability. Ultimately these improvements increase the profitability of the company.

A compelling stock chains give organizations an upper hand in the commercial center and assist
with relieving gambles related with procuring unrefined components and conveying items or
administrations. By carrying out a store network the board framework, organizations are capable
decrease squander, above expenses, and delivery postpones in a logical way. The advantages of
this precise methodology influences regions going from item quality to boss times required to
circle back.An effective supply chains give businesses a competitive advantage in the
marketplace and help mitigate risks associated with acquiring raw materials and delivering
products or services. By implementing a supply chain management system, businesses are able
reduce waste, overhead costs, and shipping delays in a scientific way. The benefits of this
systematic approach impacts areas ranging from product quality to order turn-around times.

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 Chapter # 08
Recommendations

o Increase supply chain visibility.

o Minimize cost to enhance revenue.
o Provide quality goods and services for customer care.
o Maintain consistency in production to maintain goodwill.
o Improve internal control to make a strong internal check on the processes and on the
activities of staff which will help in improving performance.
o Reduce the transportation cost, taxes and duties to maintain balance in cost and sale price
so that the revenues move on the upward side.
o Improve quality of the product and efficiency of the staff to maintain goodwill.
o Make a proper use of fixed assets so that the total cost of products drops down.
o Create ECO- friendly SCM.

Provide recommendations for the issues highlighted in the critical analysis for
improvement
o Increase Supply chain visibility

Company can promote good visibility by giving suppliers the ability to check inventory in real-
time so that they can better understand current situation and plan to fulfill future demand.
Internally, it allows key members of team to access details about company’s counts that might
help them strategize autonomously, without risking too much distracting back-and-forth. Giving
suppliers, colleagues, and even customers the power of visibility takes a huge pressure off
regarding communication and inventory planning for the future.

Eco-Friendly SCM
Going green is business value that more companies these days are looking for. Customers are
becoming extremely aware of the steps that companies are taking (or not taking) to reduce their
carbon footprint, so it’s important to consider ways to reduce waste.

One great cost-effective way is to utilize SIOC packaging whenever possible — which can

also reduce shipping costs — or strive for eco-friendly packaging that utilizes biodegradable
materials and minimizes waste by cutting back on unnecessary filler materials.

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If company is looking to outsource fulfillment, partner with a 3PL that invest in eco-friendly
initiatives or allow company to use its own sustainable custom packaging.

1. References

 https://www.optessa.com/master-production-scheduling/
 https://sjce.ac.in/wp-content/uploads/2022/01/Master-Scheduling.pdf
 https://www.chegg.com/homework-help/definitions/strategies-to-meet-uneven-demand-
18
 https://www.netsuite.com/portal/resource/articles/inventory-management/material-
requirements-planning-mrp.shtml
 https://www.geeksforgeeks.org/distribution-requirement-planning-drp/
 https://www.planettogether.com/blog/distribution-requirements-planning-in-supply-chain

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  https://hartmanadvisors.com/it-management-consulting/vendor-selection-management/
 https://blog.shiperp.com/sap-101-supply-chain-management-scm
 https://scmedu.org/privatewarehouse/

2. Annexes

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