Tabassum Fareed (64124)

       Shiza Ali (64116)

     Quratulain Qureshi (64123)

Mahnoor Tauseef (63633)

Shahzil Mobeen (63651)

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 Contents
ABSTRACT....................................................................................................................................4
INTRODUCTION...........................................................................................................................5
K&N’s POULTRY..........................................................................................................................6
K&N’s FOOD..................................................................................................................................6
PRODUCTS OF K&N’s..................................................................................................................6
STORING PROCEDURES.............................................................................................................7
The method of storage complies with the international standards defined by the WHO for items
of this kind. There is an integrated software for inventory management that was built in-house.
This software ensures that data is kept up to date and that deliveries are made in the order that
they were received...........................................................................................................................7
IMPORTANCE / NEED OF STORE KEEPING FOR K&N.........................................................7
1) Minimum Investment:.............................................................................................................8
2) Continuous Flow of Material:..................................................................................................8
3) Protection and Preservation:....................................................................................................8
4) Good Quality at Minimum Cost:.............................................................................................9
5) Proper Storage for Investment Output.....................................................................................9
6) Minimum Wastage:.................................................................................................................9
7) Co-ordination and Co-operation:...........................................................................................10
STOREKEEPING FUNCTIONS..................................................................................................10
STORE-KEEPING ACTIVITIES.................................................................................................11
1. Efficient and timely delivery of materials and tools to production divisions, which is critical
for enhanced output.......................................................................................................................11
2. Material receipt from goods receiving and manufacturing units...........................................11
3. Organizing storage in logical sequences to ensure that all items can be correctly identified
and storage space is used efficiently and effectively.....................................................................12
4. Organizing stock inspections on a continuous or periodic basis in order to offer correct stock
data as needed................................................................................................................................12
5. Keeping materials safe from damage and deterioration.........................................................12
6. Protecting the stores from theft, pilferage, and fire................................................................12
ORGANIZATION OF K&N’S STORE - CENTRALIZED STORE...........................................12
BENEFITS OF CENTRALIZED STORE....................................................................................13
DISADVANTAGES OF CENTRALIZED STORE.....................................................................14
FLOW CHART OF SCM K&NS..................................................................................................15

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SCM OF K&N’s............................................................................................................................16
PURCHASING & SUPPLY OF K&N’s.......................................................................................17
MANUFACTURING OF PRODUCTS IN K&N’s......................................................................18
Technology.................................................................................................................................18
Delivery......................................................................................................................................18
STORAGE TEMPERATURES AND PROCEDURES OF K&NS..............................................19
FROZEN ITEMS...........................................................................................................................20
DISTRIBUTION NETWORK OF K&N’S...................................................................................21
DISTRIBUTION OF K & N's PRODUCTS.................................................................................21
How do they get their products to the stores?...........................................................................21
COLD SUPPLY CHAIN OF K&Ns.............................................................................................23
COLD CHAIN PRODUCT STORAGE TEMPERATURE RANGES.........................................23
WAREHOUSING / STORING MANAGEMENT SYSTEM OF K&N’s....................................24
REASONS WHY K&N's MAINTAIN RAW MATERIAL INVENTORY?...............................25
IMPORTANCE OF INFORMATION TECHNOLOGY IN THE SCM......................................26
CONCLUSION..............................................................................................................................27
REFERENCES..............................................................................................................................28

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ABSTRACT

The storekeeper in charge of the store should be someone with unparallel integrity highly

experienced in store procedure and routing ability to do things in an organized manner and must

be able to control people working under him.

The modern store in an organization has wide variety of functions that it has to perform as

efficiently as possible. The way in which store perform these tasks will be reflected in the overall

efficiently and profitability of the organization. The primary objectives of stores is to provide

efficient service to the operating function and this must be fully appreciated. All other stores

activities, although they shave their own relative importance are subordinate to the

responsibilities.

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INTRODUCTION

K&N's is a chicken and frozen food firm with operations all over the world that are

headquartered in Karachi, Pakistan. It was established in 1964 by Khalil Sattar and his wife,

Naushaba Khalil, which is where the name K&N's comes from for the business. He had no idea

that this flock would lay the cornerstone for K&N’S 's. K&N’s was founded with the

straightforward, idealistic, and nationalistic purpose of supplying better nutrition for the Health

and Happiness of the Nation.

It is involved in integrated poultry operations such as breeding, hatching, feed milling, broiler

raising, poultry processing, and production of Halal ready-to-cook and fully cooked chicken

products. These activities are carried out at its feed mill. K&N's is divided into two distinct

divisions: K&N's Poultry, which was responsible for the production of parent stock, day-old

chicks, feed, and broilers; and K&N's Foods, which was in charge of controlling processed

chicken as well as ready-to-cook and completely cooked chicken products.

K&N’s POULTRY

K&N’S 's Poultry produced parent stock, day-old chicks, and broilers in addition to running a

layer breeding operation that produced 1.8 million chicks on average per week, including 1.55

million broiler chicks and 210,000 layers.

K&N’s FOOD

Whole chickens, bone-in cuts, premium boneless meat, and value-added chicken items like

kebabs, nuggets, sausages, deli-style cold cuts, and smoked meat are all produced goods under

the K&N’S 's Foods brand. Its whole product line was frozen. The company's operations were

HACCP and ISO 9001: 2015, USDA, HALAL, and FSSC certified.

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PRODUCTS OF K&N’s

Ready to Cook products – Others –

Nuggets Hatching eggs
Croquettes Broiler hatching eggs
Burger patties Layer hatching eggs
Chicken tempura Day old chicks
Kofta Poultry feed
Combo wings Processed chicken
Fun nuggets Premium boneless meat
Tornadoz Whole chicken
Hot tender Designer cuts
Chapli kabab Fully cooked Products
Haray baray nuggets Seekh kebabs
Tender pops Kafta kabab
Shami kebabs Chunks
Thunder fillet Mughlai tikka
samosa chunks
Deline
Bakistry
Patteze
Puff patteze
Stok

STORING PROCEDURES

The method of storage complies with the international standards defined by the WHO for items

of this kind. There is an integrated software for inventory management that was built in-house.

This software ensures that data is kept up to date and that deliveries are made in the order that

they were received.

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IMPORTANCE / NEED OF STORE KEEPING FOR K&N

One of the most significant cost components is the cost of materials. Proper material storage is

critical in avoiding losses due to damage, pilferage, and material deterioration. As a result, the

warehouses must be adequately structured and equipped for raw material handling. Ideal stock

levels for each raw material must be maintained so that manufacturing divisions receive their

needed quantity of supplies on time and extra working capital is not unnecessarily locked up in

overstocking. Furthermore, overstocking raises production costs. The retail department, on the

other hand, should be overseen by a technically skilled Store Officer. The storekeeping system is

critical to an organization's well-being and revenue. An effective store-keeping function is useful

in the following ways:

1) Minimum Investment:

Material costs are essential since they account for a significant amount of a company's total

manufacturing costs. A good store-keeping system makes it easier to decide on several levels

of material-holding, such as the minimum, maximum, and re-order level. As a result, it is

possible to invest efficiently in each area of inventory. This saved capital is now accessible for

successful utilization elsewhere.

2) Continuous Flow of Material:

With a reliable inventory management system in place, all of the necessary components can be

continuously delivered to the various departments involved in the manufacturing process.

Situations such as reduced production or production stoppage are completely eliminated, and

the organization is able to stick to the production schedule.

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3) Protection and Preservation:

A storeroom or warehouse is a location where various supplies are physically stored once they

are received from suppliers until they are requisitioned by the relevant production department.

The duration of storage may vary depending on a variety of circumstances, including the

organization's policy on the subject.

The entire function of storekeeping is carried out in an organized and scientific manner, with

the purpose of preserving the materials from damage and loss caused by natural (normal

deterioration) or unnatural (pilferage, theft, etc.) causes against deterioration, various

preservation techniques, such as adequate packing, application of protective covering, etc., are

utilized. Appropriate security measures are in place to guard against pilferage and theft.

4) Good Quality at Minimum Cost:

In the framework of the current culture of intense rivalry among comparable business

organizations, the majority of businesses adopt a strategy with two components, namely

(i) preserving the quality of their products and (ii) reducing the costs of their production. The

implementation of the strategy is made easier by a well-organized warehousing and inventory

management system.

5) Proper Storage for Investment Output

Naturally, it is crucial to keep everything organized and in its right place. It aids in the efficient

operation of the workplace. The delivery of materials ordered from various production

departments is prompt.

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6) Minimum Wastage:

The storekeeper is fully informed about the levels of stocks for the various items held due to

the maintenance of adequate store records. It eliminates the need for him to often count various

products, which not only saves time and energy but also greatly reduces the likelihood of theft,

fraud, or other misdoings. When materials are taken care of, waste is minimized.

7) Co-ordination and Co-operation:

The store department acts as an important link between other organizational departments

because it interacts like a link of them. It guarantees complete coordination and cooperation

between them.

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STOREKEEPING FUNCTIONS

Receipt: To take inventory into account after being received.

Storage: To receive and safely store the inventory while preventing loss due to damage,

deterioration, and theft.

Retrieval: It guarantees that the resources are conveniently available and that space is used to

the fullest. Moreover, it guarantees that the materials are accessed as required.

Issue: The demand arising on account of the consuming departments is satisfied upon the

receipt of the goods.

Records: To record the receipts and the issues.

Housekeeping: Emphasis is given on neatness and cleanliness and the same is kept in a

manner that the receipts, issue, and storage are satisfactory.

Surplus Stock: The surplus stock should be properly disposed of.

Verification: To avoid loss of stock, physical verification should be timely conducted.

Coordination and Cooperation: To provide for interface with the inspection and the

production department.

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STORE-KEEPING ACTIVITIES

1. Efficient and timely delivery of materials and tools to production divisions, which is

critical for enhanced output.

2. Material receipt from goods receiving and manufacturing units.

3. Organizing storage in logical sequences to ensure that all items can be correctly identified

and storage space is used efficiently and effectively.

4. Organizing stock inspections on a continuous or periodic basis in order to offer correct

stock data as needed.

5. Keeping materials safe from damage and deterioration.

6. Protecting the stores from theft, pilferage, and fire.

ORGANIZATION OF K&N’S STORE - CENTRALIZED STORE

A centralized store is typically the main store that is accountable for supplying the other stores,

the sub stores, and the departments that also issue goods to the users. This store is ordinarily in

charge of the provision of such supplies. A central location serves as the hub for both the

receipt and distribution of the material. It is not within the scope of the departments'

purchasing authority to act independently while making purchases. They are required to

approach the central store for any requirement, and the requisition will be met in accordance

with the requirement.

The following are the primary functions of the centralized store:

I.) The process of receiving the supplies, tools, and equipment.

2) Distribution of goods to the departments and the retail outlets at the branch locations

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3) Taking corrective actions for the sake of stock renewal

Typically, a store officer is hired to be in charge of overseeing the operations of the store, and

store assistants are present to handle any physical receipts or problems that may arise. A

centralized store makes it easier to maintain the inventory in a single location, and in addition

to that, it reduces the amount of work that is needed by a considerable number. However, if the

departments and the units to which the supply is to be supplied are dispersed across a large

area, it may be difficult to fulfil their requirements. In the case of centralized stores, there is

also the potential for issues to occur with the material handling. In an ideal world, this idea

would work best for relatively modest businesses.

BENEFITS OF CENTRALIZED STORE

The following are some of the benefits of centralized stores:

i. A compact space can accommodate the needs of many users for a wide range of goods.

ii. Since the store's capacity is limited, less inventory is needed. Less money will be used to

purchase inventory as a result.

iii. There is a decrease in the amount of Labour needed.

iv. There isn't much room available to store these items. Bulk inventory can be avoided thanks

to this convenient, affordable storage.

v. A purchase order can be placed for the entire company's needs, and the larger order saves

money.

As there are many small stocks, the total buffer stock is much higher which leads to:

(a) Less capital investment in Stocks;

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(b) Less space taken up;

(c) Less danger of obsolescence and deterioration; and

(d) Less time taken for checking stock balances.

Administration cost relating to stock recording is less.

DISADVANTAGES OF CENTRALIZED STORE

The following are some of the drawbacks of centralized stores:

It takes a lot of employees to move the material between different locations.

It leads to increased transportation expenses.

Because the production departments must get supplies from the store that is far away, it causes

inconvenience and delays in the supply of materials.

Smaller material movements occurring more frequently may result in higher expenses and

production control issues.

Increased fire loss hazards.

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FLOW CHART OF SCM K&NS

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SCM OF K&N’s

"Supply Chain Management is a set of approaches that are used to efficiently integrate suppliers,

manufacturers, warehouses, and stores so that merchandise can be 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. Receiving orders is part of the information

flow, but moving products from the supplier to the consumer, as well as handling any returns or

servicing needs, is part of the product flow. Information flow includes all of these aspects.

The management of the supply chain can be broken down into three primary flows:

The ultimate objective of effective supply chain management is the reduction of inventory, with

the expectation that products will always be accessible when they are required.

The responsibilities of K&N's supply chain management include coordinating and integrating

these flows both within businesses and between them, as well as between enterprises themselves.

Supply chain management (SCM) for K&N's is the process of keeping track of the materials,

information, and money associated with an order as it travels from the supplier to the

manufacturer to the wholesaler to the retailer to the consumer, all while keeping track of the

delivery status. Credit terms, payment schedules, consignment and title ownership arrangements,

and other contractual commitments are all part of the financial flow.

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PURCHASING & SUPPLY OF K&N’s

In supply chain management, suppliers are treated as business partners, and close bonds are kept

with them. The supplier provides the raw material needed to create the finished good. It is made

up of a wide variety of components, including electricity companies, packaging, and raw

ingredients.

K&N's maintains strong relationships with its suppliers. All of K&N'S suppliers are regional,

with the exception of the machinery and vehicles needed for distribution and shipment. China

and the United States are two of these. Local suppliers provide the chemicals, packaging, and

feeding materials. K&N's has started the process of backward integration and is already raising

its own chicken on several farms all throughout the country. Since they raise their own chicken,

they are not dependent on outside vendors to maintain a high level of product quality. There are

numerous industries related to chicken breeding, hatching, and feed, where chickens are hatched

and grown in compliance with quantity standards.

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MANUFACTURING OF PRODUCTS IN K&N’s

K&N'S does business in a number of areas, such as chicken breeding, hatching, broiler

production, feed processing, chicken processing, ready-to-cook and fully cooked products, a

quality assurance lab, and a poultry diagnostic and research institution. In order to breed

chickens, K&N's keeps populations of layers and broiler stock all over Pakistan, especially in the

hilly areas in the south and north of the country. K&N's runs a number of hatcheries in strategic

places to serve the market for all-day-old chicks.

Technology

All of the hatcheries have the latest technology, such as cutting-edge heating and cooling

systems that keep the temperature in the hatcheries the same no matter what the weather is like

outside. K&N's also raises broilers on company-owned farms so that it can process chicken. So

that food doesn't get spoiled, the chickens are given clean water and food. To keep up high

standards, chickens are given a healthy, well-balanced diet.

Delivery

When the chickens are ready, they are taken to a place where they will be processed. In order to

make high-quality chicken products, poultry processing plants only use healthy chicks. Halal

practices say that they must kill animals by hand, which is against Islamic law. After halal

slaughter, chickens are sent to other places to be used in other ways. This method is all done by

machines and focuses on cleanliness. While the birds are getting washed, their cleanliness and

health as a whole are checked. Every level is cleaned and sanitized all the time to keep it as

healthy and clean as possible. All chickens have to go through a few inspections to make sure

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they are safe. There are chickens with and without bones. Also, some whole chicken was ready

to be sent. Packaging is done according to rules set by the industry.

STORAGE TEMPERATURES AND PROCEDURES OF K&NS

Goods for sale in stores come in packaging with the K&N brand. The products are then frozen at

a very low temperature of -28 C to make sure they stay fresh, tasty, and of good quality. After

the goods are packaged, they are sent to stores in clean, refrigerated trucks. The K&N quality

assurance lab looks at the whole process, from what the animals eat to what is fully cooked and

ready to eat. To make sure that food is safe, healthy, and of good quality, the whole integration

process is reviewed and kept an eye on. A food service company needs clear storage areas and

procedures for a number of reasons.

1. Having a place to store supplies lets you buy them in large enough quantities to get price

breaks.

2. being able to keep supplies on-site saves time and money that would otherwise be spent

ordering supplies and taking care of them when they arrive.

Third, it's easier to plan a menu when you know how much, what kinds, and how good the food

is that you already have. If a certain menu item sells out quickly, it's nice to know that there are

enough supplies to make sure that everyone who orders it can get it.

Because it costs money to store things, many food service businesses in today's market are

cutting back on how much stock they keep on hand. Not only does there need to be space, but

there also needs to be tight security. Many operators are willing to pay a little more to their

suppliers so they don't have to keep track of expensive things like large amounts of high-quality

meat, wines, and spirits.

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Even so, you still need to store things like dry foods, dairy, frozen foods, produce, and fresh

meats. Most of the time, these kinds of storage spaces have to be built in a certain way so that

they can handle the different kinds of supplies well.

FROZEN ITEMS

Foods that need to be frozen must be kept at 0°F (–18°C). If the temperature goes above -18°C,

food can turn brown and end up losing its vitamins. Once the temperature has gone up, it can't be

fixed by going down. Food needs to be kept at or below -18°C to stay good.

When K&Ns stores its frozen goods, it keeps in mind the following:

Fish and meat that has been well-wrapped can last for a long time in the freezer.

Foods which aren't properly sealed and placed in the refrigerator will get freezer burn, which is a

loss of moisture that changes the flavor and texture of the food. Freezer burn often shows up as a

white or grey dry patch on the surface of the frozen food. The freezer burn is most likely to

happen to meat. Freezer burn is most likely to happen to meat.

With frozen foods, it is very important to change the stock often. This is hard to do with standard

chest freezers because it often means taking out old food before putting in new food. When it

comes to frozen foods, it's easy to get into the bad habit of using the last thing you bought first,

better way is FIFO (first in, first out).

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DISTRIBUTION NETWORK OF K&N’S

Delivery Methods from Company to Warehouse and ware house to retailers.

K&N'S maintains 3 Distribution Centers:

The Northern (Rawalpindi / Islamabad).

Central (Lahore)

Southern Region (Karachi).

A cold chain feeds the Northern & Southern Regions. Distribution to their Institutional & Retail

partners is also "through & through Cold Chain" as described above.

DISTRIBUTION OF K & N's PRODUCTS

After making their products, they put them on the market so that their customers will be happy

and be drawn to them. Their product is a key part of how they can offer their services and draw

customers.

How do they get their products to the stores?

Sell straight to stores.

Sell through distributors, who sell a wide range of products to many retailers.

Sell through captive distributors, who sell a wide range of products to one chain of retailers.

Sell through distributors, who then sell to your target customers.

Give them to K&N's stores.

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Products are made, and then vehicles with refrigerators take them to places where they can be

sold. When products leave the distribution center, they are taken to different businesses, shops,

and stores before they can be sold to consumers.

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COLD SUPPLY CHAIN OF K&Ns

A cold chain product is any product that must be stored inside a specified temperature range. The

cold chain refers to the ongoing flow of a certain system due to temperature difference during the

manufacturing, packing, and distribution of a temperature-sensitive product. The cold chain is a

mechanism for storing and transporting pristine frozen and fresh food, vaccinations, and other

biologicals. The procedure begins with the product being removed from its natural surroundings

to its final location. The concept of a complete cold chain is that this product is kept at the

appropriate temperature and in the appropriate storage for each stage of its route, with the goal of

the product arriving undamaged and as fresh as the moment it was procured or manufactured.

As required for the frozen foods, K&N'S transports its products all the way through Cold Chain,

supported by specially designed own vehicles to maintain temperatures in the required range to

maintain product quality. Maintaining the cold supply chain necessitates understanding and

management of the shipping environment, storage temperatures, package design, shipments

duration, and crucial control points along the process.

In addition to maintaining a consistent temperature in the storage area, businesses need to be

equipped with the means to monitor factors such as relative humidity, the environment in which

products are kept, air pressure, flow, and quality; light exposure; and shocks and impacts

sustained by packages and parcels.

COLD CHAIN PRODUCT STORAGE TEMPERATURE RANGES

The cold chain product storage temperature ranges are different for every type of cold chain

product. K&Ns cold chain product storage temperature ranges:

Frozen: 3.1 to -4oF (-16 to -20oC) for meat and some produce.

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WAREHOUSING / STORING MANAGEMENT SYSTEM OF K&N’s

Inventory management and warehousing/storage are two important parts of K&N's supply chain

that require a lot of work. They are also one of the most important parts of the whole chain. Most

of the inventory is stored in warehouses instead of in the pipeline, and how well the warehouses

work will determine how well the rest of the supply chain works. Even though it's common in

the business world to hire a 3PL Logistics service provider to handle warehousing, K&N's

supply chain management wants to build its own warehouses and cold storages to save money

and keep its inventory safe.

The Warehouse Management System that K&N's uses is (WMS). The system keeps track of the

inventory in the warehouse as well as the inventory for each client by location, SKU, pallet, and

unit. It also lets you manage, allocate, and block inventory based on a set of variables and factors

related to the inventory. Since the products need to be used quickly, the system also uses FIFO

procedures. The system manages, controls, and directs all operations, such as receiving,

allocating inventory, picking, shipping, and finally updating the inventory. Based on how much

work is being done, K&N's intelligent system guides and helps operation managers schedule and

manage all operations for different groups and teams at the same time. It also handles the

distribution of resources.

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REASONS WHY K&N's MAINTAIN RAW MATERIAL INVENTORY?

Most K&Ns have raw material inventory warehouses that are connected to their production

facilities. These warehouses store raw materials, consumables, and packing materials, which are

then sent to the production facilities on a just-in-time (JIT) basis. Different situations may call

for different reasons to keep stock.

Meet the different needs for production.

Meet cyclical and seasonal demand. Take advantage of economies of scale when buying.

Take advantage of price hikes and discounts for buying more.

Cut down on transit costs and times.

Items with long lead times and high demand need to be kept in stock.

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IMPORTANCE OF INFORMATION TECHNOLOGY IN THE SCM

Because it helps in managing the storage, temperature, delivery systems, navigation, handling,

and supervising, information technology is playing an essential role in the development of SCM

in the growth of K&N'S. There are three primary components that make up the IT department.

1. Transaction

2. Supply chain collaboration

3. Order tracking

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CONCLUSION

K&N's is the market leader in the frozen and poultry industries, producing high-quality chicken

in a variety of countries all over the world. K&N's is the only establishment of its sort in

Pakistan, and it has provided our culture with a unique approach towards frozen food

consumption. K&N's has showed sensitivity to the criteria that Muslims have for halal food

products and has launched their Del Line as a result. This is done so that customers will no

longer have any questions and will feel safe ingesting the skinless sausages, cold cuts, and

smoked meat. K&N's combined all poultry production activities under one canopy to ensure

quality and food-safety by managing and controlling all phases of production. This organization

has been built on years of poultry knowledge, as well as a dedication to food safety. K&N should

work on their pricing strategy because it has a significant impact on the demand for their

products.

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REFERENCES

https://ecampusontario.pressbooks.pub/bio16610w18/chapter/kns-health-and-happiness-for-
pakistan/

https://toaz.info/doc-view

https://kandns.pk/history/index.html

https://stockarea.io/blogs/applications-of-cold-storage/

https://www.slideshare.net/RizwanAslam1/project-on-k-n-s-supply-chain-management

https://www.dexion.com/company/news-articles/general-news/a-guide-to-cold-storage-
warehousing/

https://www.interlakemecalux.com/blog/cold-storage-warehousing

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