USING IT TO ENABLE SUPPLY CHAIN MANAGEMENT

PAKISTAN TOBACCO COMPANY

SUPPLY CHAIN OVERVIEW

Submitted By: Amjad Bashir 101005

HISTORY Pakistan Tobacco Company Limited is part of British American Tobacco, the world's most international tobacco group, with brands sold in 180 markets around the world. PTCs operations in Pakistan began in 1947, making it one of Pakistan's first foreign investments. PTC produces high quality tobacco products to meet the diverse preferences of millions of consumers, and it works in all areas of the business from crop to consumer. PTC is committed to providing consumers with excellent products and to demonstrate that it is meeting PTCs commercial goals in the manner expected of a responsible tobacco group in the 21st century.

IT OPERATIONS PTCs head office is located in Islamabad whereas its two factories are in Jhelum and Akora Khattak. Different functions of PTC are tied together with SAP based ERP. Demand forecasting is the most important element of PTC sales operations. Distributors submit a monthly and semi-annually schedule of shipments based on their sales history and this collectively becomes the basis of production planning at the

factory level. They also send a complete record of daily operations in a batch format online which includes sales and inventory level of every outlet covered by the sales force. Distributors purchase stock from PTC by depositing amount in the PTC head office account online which instantly sends the information to the area office/warehouse which generates the invoice and then distributors are asked to lift their stocks. PTCs warehouses are connected with each other and have centralized controlled from head office.

SUPPLY CHAIN PROCESS

PROPOSED ADDITION OF ADVANCED OPTIMIZATION TOOLS Automation of sales force by providing them hand-held devices for greater information visibility along the chain. Collaborating with major retailers and wholesalers by installing POS systems to monitor real-time off-take of their brands. Distributors should be given access to the ERP system of the company through companys extranet or by enabling distributor ERP to integrate with PTCs ERP by means of Electronic Data Interchange.