Impact Of Inventory Management Practices on Supply Chain Efficiency: A case of Mehboob Flour Mill

Abstract

This project examined the operational structure and supply chain challenges of Mehboob Flour Mills, a wheat-based food processing company in Pakistan. The mill produces chakki atta, maida, sooji, and bran for domestic and commercial markets. Four key challenges were identified: poor demand forecasting, improper storage leading to spoilage, weak supplier collaboration, and frequent electricity disruptions. These issues are intensified by external factors such as wheat price fluctuations, seasonal availability, high humidity in Islamabad, and unreliable power supply, as well as internal limitations including manual processes, lack of an inventory system, limited storage space, and rented facilities. The study proposed low-cost, practical solutions including basic digital forecasting and inventory tools, improved grain protection methods, better supplier coordination, and small-scale backup power systems to enhance efficiency, reduce spoilage, and strengthen supply chain responsiveness for small- and medium-sized flour mills in Pakistan.