Analyzing the risk and challenges faced by Qureshi traders: distribution of Nestle products in Islamabad region

Abstract

Supply chain management involves managing the inventory network and its overall objective is to increase the customer value and accomplish the competitive advantage. In simple words supply chain management deals with all the activities involved in bringing the product from manufacture to end customer. This project is about analyzing the distribution network of Qureshi Trader’s, which is the sole distributor of Nestle products in Islamabad Pakistan. Qureshi Traders are the exclusive Distributors of Nestle in Islamabad and are working on Third Party Logistics (3PL) model. Most 2PLs and express organizations effort to turn into 3PLs for higher returns. 3PLs do possess a few advantages, for example, main distribution channels or centers in vital areas and transportation needs that are outsourced to the 3PL can have a significant impact on the performance of the company. In this project, we analyzed the problems that are faced by Qureshi Traders in terms of Warehousing, Transportation and managing the employees and quality of products. In terms of warehousing, the Qureshi Traders movement wastage is high, i.e. the layout is of W shape and it became troublesome for the pickers to move the product in the warehouse, another challenge is the Honeycombing in the warehouse Transportation challenges include the lack of required skills of drivers and the improper designing of route maps and the lack of skilled drivers. Important recommendations include the U Shaped Layout of warehouse because it would decrease the movement wastage, Use of Shelving in the warehouse to remove the honeycombing in the warehouse, devise employee training sessions, properly identify the route maps and driver should strictly follow the rules and route maps.