K & N’S SAFE AND HEALTHY CHICKEN

BACKGROUND

 Started by a young college student Khalil Sattar.

 BUSINESS PROCESSES OF K & N’S

 Broiler growing : K & N’s is engaged in broiler growing at

its own farms for their processing plant.

 Poultry Processing:
 At processing plant, the healthy chickens are used to
produce high quality, safe and healthy chicken products.
 Chickens are Halal slaughtered by hand.
 BROILER AND OTHER RAW MATERIAL

 Almost 90% of the broilers for processing are produced at

K & N’s own Poultry farms located near Lahore.

 Broilers are the major raw material.

 Other raw material such as ingredients are procured from

within Pakistan.
 DISTRIBUTION SYSTEM AND CHICKEN STORES

 Products are stored at -21*C to maintain freshness.

 Packed products moved into K & N’s sanitized

refrigerator trucks for distribution to ensure quality
control.

 K & N’s Chicken products are available at K & N’s

Chicken stores and leading retail stores all over the
country.
 K & N’S DISTRIBUTION NETWORK
 Delivery methods from Company to warehouse and
warehouse to retailer.

 K & N’s maintains 3 distribution centers :

1. The Northern (Rawalpindi/Islamabad

2. Central (Lahore)
3. Southern Region (Karachi)
 K & N’S SUPPLY CHAIN STRATEGY

 Product flow involves the movement of good from a

supplier a supplier to a customer.

 K & N’s ultimate goal of effective supply chain is to reduce

inventory.
 WHY K & N’S MAINTAIN RAW MATERIAL?

 Most of the K & N’s have raw material inventory

warehouse attached to the production facilities.

 Reason for holding inventory :

1. Meet variation in production demand.

2. Seasonal demand.

3. Reduce Transit cost and transit times.

4. Long lead time and high demand items need to be held

in inventory.
 WAREHOUSING AND INVENTORY MANAGEMENT
 Most of the inventory is held at the warehouse.

 Outsourcing the warehousing operation to 3PL(Third

party) logistic service provider.

 K & N’s SCM believes to build its own warehouses and

cold storages to reduce costs and keep inventory in safe
environment.
 IT SYSTEMS AT K & N’S

 Warehouse Management System (WMS) is a software

application that manage day to day inventory operations
in a warehouse and it is RF enabled.

 Enterprise Resource Planning (ERP) is business process

management software that allows an organization to use
a system of integrated application to manage business.
 TRANSPORTATION NETWORK

 K & N’s transports its products all the way through Cold
Chain
 It supported by specially designed vehicles to maintain
temperature in required range.

 Direct shipment method :

 All Shipments come directly to each buyer

 Routing is specified.

 Routing is decided by the supply chain manager of K &

N’s
SUPPLY CHAIN OF K & N’S FROM SUPPLIER TO
CUSTOMER
 PRODUCTION METHODS
 Production method is used according to the type of
product.
 For instances : raw chicken and special cuts are produced
on Automated and Semi-Automated lines.

 Sourcing Strategies and procurement process :

 K & N’s procurement managers manage procurement

and sourcing both at strategic and operational level.