Procurement Process Rehmpak Pvt. Ltd.

Submitted To: Mr. RizwanTanveer Malik Submitted By:

Abdullah Ali Nawaz Soomro AsharNajeeb Khan 21764 Farhan 12785 HarisChania TabraizAhmed Khan 13299

History
Rehmpack (formerly Rehman Packages) started out as a small offset press in 1967; in a little over four decades we have grown into one of the leading offset print facilities in Pakistan. Today we have state-of-the-art, large format offset presses and with our dedication to quality and food safety we focus on printing food and pharmaceutical packaging.

Operations
At Rehmpack we know that an organizations real strength is its people. Our team of dedicated professionals takesgreat pride in their work and strives to deliver excellent service and the highest quality products to all our clients. Our company culture encourages team members to take ownership of their projects, to use their collaborative expertise to develop effective communication solutions for clients and to make quality their primary focus. We treat every project and every print job as a learning opportunity and encourage improvement through continuous learning. Rehmpack places strong emphasis on technical, technological and managerial training specifically related to the print industry

Mission Statement:
To ensure high quality and conform to international standards of food safety packaging.

Products
Rehmpackcollaborate with their customers in order to maintain their relationship. They provide best fasteners and their product quality is way better than their competitors. Some of their products are:

Offset Printing

Rehmpack's offset printing division focuses primarily on servicing the food andpharmaceutical sectors. Our modern, high speed presses are capable of high quality multicolored printing; state-of-the-art die cutting and pasting machines enhance our capability further, enabling us to fulfill customer requirements in quick turnaround time. This along with our food safety certifications and quality control make Rehmpack an excellent choice when it comes to printing packaging for edible products.

Flexographic Printing

The narrow web labelling division focuses on self adhesive labels that allow us to service sectors such as pharmaceuticals, automotive lubricants, food and healthcare.

Client/Customers
They are B2B Company and provide fasteners to the many industries. They try to keep their customers by proving best services and products. Most of their customers are major players in the market so they cannot compromise on quality. The production environment they follow is make-to -order and JIT.
Lu Hilal Shan PSO Oil Kingtox

Dettol Sunsip Habib Masala Peak Freans Himont Shell Castrol

Workforce
In Rehmpack, the total number of employees is around 300. Which is further divided into other departments like Production, Finance, Marketing, Information Technology, HR etc. In procurement department there is a team of 6 employees, those are employed to procure materials and maintain inventory.

hierarchy
1 Director 2 admin director 3 senior managers (marketing manager,account and finance manager,production manager) 4 manager 5 marketing (deputy manager) 6 supply chain manager (assistant manager) 7 production ( supervisor)

Supplier Selection
Rehmpack have only one supplier in Pakistan and all there procurements are imported.They call there supplier for brochures, documents, raw material specifications and provide them with an evaluation form. Rehmpack dont open LC they work on bank contract.

Documents:
While purchasing any material, four main documents are prepared which are

Purchase Order Performa Invoice (for advance payment and LC) Delivery Challan Sales Invoice

After selecting the supplier and negotiations, a document named Purchase Order is prepared by the company, containing following information;

Vendor Name Description of required material Ordered quantity with stock keeping unit Mutually agreed per unit rates in agreed currency Tax rates Ordering date and expected delivery date Payment terms Signatures of Authorized persons from both parties

Along with delivery challan, material is delivered by vendor within the expected delivery date and delivery of goods gets acknowledged by the company. Delivery challan is prepared by vendor and contains the following information;

Vendor Name Description of delivered material Delivered quantity with stock keeping unit Delivery date, time and location

After receiving inspection and quality testing, material is stocked in warehouse and internal documents like Quality Inspection Report & Goods Receiving Notes are prepared which are forwarded to accounts department. Sales Invoice is raised by vendor and sent to accounts department for recording the transaction.

Delivery Challan

Inventory:
Rehmpack works on JIT, as soon as the order is placed from the customer production starts and they keep 3 months of buffer stock and the lead time is one month. They also follow FIFO method as the packaging comes they are first sent to the customer.

Plant Capacity:
The plant capacity at Rehmpack is 15,000 sheets per hour.

Lead time:
Rehmpack is a B2B company and they cannot compromise on any late delivery. They have lead time of minimum One month. Purchase order is placed if MIS gives any indication about the shortage of inventory.

Buffer stock:
They keep the buffer stock of approximately three month. The decision isvery much justified since they have their lead time of one month. They cannot delay any order since their customers provides them huge revenues.

Challenges post procurement:

At times what quality is ordered does not reach so that raw material is sold to other organization by the supplier and Rehmpack gets the storage cost and the total amount is debited.

Rare customer orders

Normally Rehmpack does not get rare orders but the rarely they get orders extended.

Minimum Lead time from customers:

The lead time of procuring the raw materials very high but customers do not allow this much time. In order to cater such demands Rehmpack procure material in advance.

Quality Maintenance
In Rehmpak they do not require such a big quality maintenance department as the supplier is only one which is inspected once only and the production starts.

Local competition:
Rehmpack has two competitors in Pakistan which is:
1) Saima packaging 2) Meritt packaging (lekson group)