Group members

Name: Jacob sarfraz roll # 63

Name: Daniyal zaheer roll # 87

Name: Moazzam shah roll # 70

Name: M.Salman saleem roll # 95

Name: M.Hamza roll # 139

BARKAT RICE MILL P.V.T (LTD)

Executive Summary
A Barkat rice mill is a project of FSL group of companies a premiere group involved in business since
1913. The company is one of the leading exporters of super basmati rice in Pakistan, because prime
importance is given to quality as “Quality is our motto”. Barkat rice mill is limited company incorporated
in the year 1999 under Pakistan Company’s ordinance since 1984.

This report of Barkat Rice Mill PVT LTD commences with its introduction, claiming to be the manufacturer
and traders of rice sinc1999. Under the supervision of its founder. The company is very dedicated towards
its vision and mission The company's distribution channel structure includes Manufacturers who in turn
gives the product to the wholesalers who provide it to the retailers and they forward it to the end-users.
(SOD) Template which shows how segmentation occurs on the basis of demands of the different segments
involved. It includes the Household and industrial segments which either have high or low spatial
convenience, bulk breaking, information provision, product variety, customer service and waiting time
service. The Efficiency Template has been provided in the template which clears the amount of profit gained
by each channel member. The Gap Analysis Template analyses and recognizes the gap or problem
occurring in the demand side and the supply side regarding the under/over supplying of the product. The
demand-side gaps are judged on the basis of the six services mentioned in the Service Output Demand
(SOD) template. the supply side gap talks about the managerial issues and about which member of the
distribution channel is causing an issue or creating a gap, and how can these gaps be closed and will they
affect the other flows in the channel or not. In between the conflicts occurring inside the company are
mentioned with their solutions the degree of commitment among the employees and what sort of
power/reward sources the company uses for its members are also mentioned.

Introduction

Pakistan’s contribution in rice industry

Pakistan contributes approximately 10 million tons to global rice production every year and is the fourth
largest exporter of rice Supreme Rice Miller India, Vietnam and Thailand. Annual rice exports from
Pakistan stand well in excess of $2 billion.

History
Rice is a staple food for a large part of the world’s human population, especially in tropical Latin America,
and East, South and Southeast Asia, making it the second-most consumed cereal grain. Rice provides more
than one fifth of the calories consumed worldwide by humans. Rice factory is not a history of rice Culture
in ancient times. It is a modern industrial story of one man who probably did more than anyone to advance
the growing and milling of rice in the region

Introduction of company
Barkat rice Mill is a professionally managed organization that specializes in providing comprehensive range
of Basmati & Non-Basmati Rice. The management at FSL group envisioned a company that could deliver
pure, hygienic and delectable basmati to consumers around the globe at competitive rates. The emphasis
was on developing high class-premium products in-line with expectations of quality conscious customers.
To provide quality rice to the customers the company leaves no area unattended. For that the company
interacts with farmers from seedling to harvesting stage. Barkat rice even supplies seeds to the farmers free
of cost to guarantee pure healthy and top grade paddy. To ensure that basmati rice retains all that has given
it the company has installed a very sophisticated state of the art plant at their mill from Buhler GmbH
(German and Swiss machinery) 5 ton/hour capacity.
The management strongly believes in the key role of technology in producing hygienic and good quality
product on consistent basis. This was the main drive behind management’s decision to invest substantially
at its plants in Islamabad and Gujrat. Barkat rice mills have taken up the role of technology leader in the
region. Highly trained and skillful professionals of the industry were hired to ensure the best use of
technology.

Company’s strategic location is more useful, to export basmati or any products without any delay. Company
can procure pure basmati as earlier possible. So that its customers get their products on given schedule. We
take care of our entire business partners because we believe to make life time relation with them.

Vision
Committed to become leading seller dedicated to provide its consumers the best grade of rice.

Mission
To elevate Supreme Rice as a symbol of quality and recognized brand of choice.

PRODUCTS
Barkat Rice Mill is producing quality products and different varieties in order to meet the demands of their
customers Barkat Rice Mill is producing following products

 KAALAR super basmati

 KHYBER basmati

Channel structure
Barkat Rice Mill is using two level structures in order to deliver the product to end user

Members
Barkat Rice Mill has following members in their distribution channel

Manufacturer
Wholesaler
Retailer
End user
Intensity/quantity of members
Currently BARKAT RICE MILL have 200-250 wholesalers with the chain of retailers in different regions
of Lahore which are providing the product to end user

Channel’s structure hierarchy

Roles and responsibilities of members

Manufacturer

Selection and purchase of pure healthy and top grade paddy is critically important to guarantee best quality
basmati rice. The company pays premium over market price to attract farmers with best produce price is
not a constraint where quality matters and prepare the rice of different variety and sale the product through
agents to wholesalers in markets

Wholesaler
Buys product from manufacturer then store and handle product and resale to retailer rather sailing to end
user

Retailer
Buys product from wholesaler and sells goods to end user in relatively small quantities for use or
consumption rather than for resale

Segmentation
To provide its product at best possible way and in order to know the needs and wants of Customers
Company is mainly targeting middle and lower class

Service output demands

Barkat rice mill is providing different types of services to their customers in order to make purchasing
process easy and pleasant and in order to meet the demands of its customers. Company has segmented its
customers into two types.

Household includes (housewives)

Industrial includes (restaurants, cooking centers, and super stores)

And the services of the channel are

 Spatial convenience
 Bulk breaking
 Information provision
 Waiting time
 Customer service
  Product variety

SOD template
The Service Output Demand (SOD) Template shows how the users of rice differ in their level of demand.
We have identify two segments of rice buyers which are business buyers and home buyers

Spatial convenience
In spatial convenience a home buyer has a high demand because that wanted the product should be
available near their home and they don’t want to travel much to buy rice on contrary to this business buyers
may have low demand of spatial connivance because they contact through agents and place an order on
phone call.

Bulk breaking
A business purchasers buy rice in expansive amount than a home purchaser so the business or industry
portions require low mass breaking while the home purchaser have popularity of mass softening since they
purchase up little amount.

Information provision
A home purchaser may require more data identified with use of the item and how to deal with the item
while business purchaser require low data about the item since they are encounter enough and know how
to utilize and handle item.

Customer service
Business buyer requires high customer service in terms of delivery of product and Barkat Rice Miller sale
complaints on the other hand home buyer requires low service because rice is a staple product which means
technical assistance required for it.

Waiting time

The demand of waiting time of home buyer will be high because if he buying from retailer stores and place
an order he will get rice on spot don’t have to wait while business buyer have Medium demand because he
has already some storage and don’t need the rice in hurry

Demands in product variety

 Business buyers have high demand of variety because they need rice for cooking different dishes and it’s
also depends upon the taste and class of the people while home buyer have Low demand of variety.

Household
Segments Spatial Bulk Information Waiting Customer Product
convenience Breaking Provision Time service variety
Housewives High High High High Low Low

Industrial
Restaurants Low Low Low Medium High High
Cooking Low Low Low Medium High High
centers
Super stores Low Low Low Medium High High
The below table shows analysis of service output demands of Barkat RICE MILL

Efficiency Template
It is apparatus to quantify the expenses borne and the value included by each divert part in its execution of
channel stream. The effectiveness format is utilized to portray .

The sorts and measures of work done by each direct part in the execution of the promoting stream.

The significance of each channel stream to the arrangement of requested purchaser benefit yields

The subsequent offer of aggregate channel benefits that each channel part should trap.

In order to calculate cost and profit following factors are considerable

Physical possession
Ownership
Promotion
Financing
Negotiation
Risk taking
Ordering
Payment
First step is to determine the cost the other step is to allocate the total cost of each flow across all
channel members (manufacturer, wholesaler, wholesaler, retailer, &end user}

Physical possession
In BARKAT RICE MILL Physical possession has 30% cost, which incorporates capacity and conveyance
cost in which producer is bearing 30% of aggregate cost while distributer is bearing 40% on the grounds
that he purchases item in mass and need more space for capacity and accomplishes a bigger number of
conveyances than others while retailer and end client have 20% and 10% cost separately.

Ownership
In BARKAT RICE MILL possession has 16% cost in which producer is bearing 20% of aggregate cost
while distributer and retailer have 30% and 10% individually and end client has most astounding rate 40%
proprietorship than different individuals since he claims the item for drawn out stretch of time.
Promotion
Barkat Rice Mill is putting 20% in advancement of their item and producer is contributing 45% of aggregate
cost since he needed to make effect of their item in market and needs to draw in more clients and this will
give him a decent upper hand. While distributer and retailer have 30% and 20% cost separately and end
client has 5% in light of the fact that he advancing item through positive informal.

Negotiation
Organization is bearing only 5% of arrangement cost among that distributer has most elevated 40% cost
since he purchases item in mass and accomplishes more transaction while retailer has 30% and end client
have moderately minimal effort.

Financing
Organization has 17% financing cost though producer has most elevated 40% cost since he put more in
delivering the item and has high cost than different individuals while distributer has 30% on the grounds
that he purchases item in mass and has high venture then again retailer and end client have 20% and 30%
separately.

Risking
Most hazard is facial hair by wholesaler 40% on the grounds that he purchases item in mass and have more
danger of waste of item and have possibility of not offering of item while retailer and end client have 20%
and 10% separately.

Ordering
Organization has next to no cost only 5% of aggregate cost on which wholesaler has most elevated cost
40% of aggregate cost since cost of the pressing of item and conveyance cost in bear by wholesaler while
end client has least cost 10 % while retailer and producer have 2% and 30% cost separately.

Payment
The most noteworthy installment is finished by distributer 40% of aggregate cost since he buy item in mass
and need to pay more cash while end client purchases in little amount and pay not as much as different
individuals while producer and retailer have 30% and 20% cost separately.

Calculation of profit
Profit is calculated by following steps

Covert the final weight and the cost of member into decimals.
 Multiply the converted values and add to next value answer.
In the end multiply with 100% in order to calculate profit into percentage.

Profit of each channel member

Wholesaler has the highest profit margin because he is the most active person in the channel and
enjoys 35% of the total profit.
Manufacturer has 31% and retailer has 19% of the total profit while end user has 15%.
So in this regard, the end user gets the least profit14.1% due to less effort in distribution channel.

Efficiency template of BARKAT RICE MILL

The table shows the efficiency template for Barkat Rice Mill which serves small and medium sized end-
user who usually buys through agents because rice is a staple product so physical possession and handling
has the highest cost of the total cost.
 Weight of flows Flow performance by channel members

Final End
Cost Benefit Mfg. Wholesaler Retailer Total
weight user

Physical 40% High 25% 20% 50% 20% 10% 100%

possession

Ownership 10% Medium 20% 30% 20% 20% 30% 100%

Promotion 20% Medium 17% 45% 30% 20% 5% 100%

Negotiation 10% Medium 7% 20% 30% 30% 20% 100%

Financing 5% Medium 17% 40% 40% 10% 10% 100%

Risking 7% Low 4% 30% 40% 20% 10% 100%

Ordering 5% Low 8% 30% 30% 30% 10% 100%

 Payment 3% Low 2% 30% 40% 20% 10% 100%

Total 100% 100% 100%

Profit share 31% 35% 19% 15% 100%

Gap analysis

Demand side gaps

At this time company is facing following gaps in order to meet the demand of the product

Household segment
Spatial convenience

Company’s product is not easily accessible due to which the supply is lower than the demand which creates
a shortage of the product.

Information provision

Barkat Rice Mill is not providing enough information related to their product which needs to be fulfill

Customer service

Company does not provide any customer service to its customer while purchasing the product and does not
have any assistance during the purchasing of product

On the other hand there is no gap in bulk breaking service because company is meeting with the
demand of quantity which is required by its customer
The waiting time service is provided in a favorable way as rice is a staple product and nobody really
has to wait to get rice, hence the service of supply equals the service output demand.
Although, the product variety is high and the households receive the product as per supplied.
Industrial segment
 The company just have gap only in customer service because company does not provide this
service to their industrial customer even product delivery is totally managed by the customer while
the other services

The gap analysis related to services is given in below table.

Segments Spatial Bulk Information Waiting Customer Product

convenience Breaking Provision Time service variety
Household Low High Low High Low High

(SOS<SOD) (SOS=SOD) (SOS<SOD) (SOS=SOD) (SOS<SOD) (SOS=SOD)

Gap Gap Gap
Industrial Low Low Low Medium Low High

(SOS=SOD) (SOS=SOD) (SOS=SOD) (SOS=SOD) (SOS<SOD) (SOS=SOD)

Gap

Supply side gap analysis

Household segment
In supply side the issue/gap occurs with the Retailer in the Household segment, who causes a problem in
the flow. Whenever, new rice enters in to the market, they store the rice in the warehouses for a few months,
and when the price of the rice increases with the demand of the product, they then sell it in to the market.

Techniques for closing gaps in household segment

For this gap to be closed, the company should provide its product to the other wholesaler in the same region
or change the wholesaler and appoint somebody better than him who is able to handle the price gauging
and selling of the product

Industrial segment
When talking about the industrial sector, the Wholesaler cause an issue in the sense that whenever new
rice enters in to the international market, they are of relatively lower price which pushes them not to
purchase the rice. Due to which, the other channel members will not be able to receive the rice and so the
channel flows will get disturbed.
 Techniques for closing gaps in industrial segment
For this, the company should try compensating the price so that the wholesalers also get able to get their
profit

Supply side gap analysis template

Segmentation Channel Environmental/Managerial Supply side Techniques for DOIDID
members and bounds gaps (affecting closing gaps action creates
flow they which flow) other gaps
perform
Household Retailer Makes Temporary lack of Item Supply the No
item and when request is inaccessible item to another
high then they offer the for end client retailer in same
item locale or
Change the
retailer
Industrial Wholesaler At the point when the cost The retailer Remunerate in Decrease in
of rice falls in universal and end client cost benefit
market, the distributer won't have the
decline to buy the rice capacity to get
the supply

Degree of commitment
Keeping in mind the end goal to keep up level of duty among the individuals from channels organization
makes following strides.

Member as a business partner

BARKAT RICE MILL centers on the dedication of workers. Organization considers its part as a piece of
their business and qualities their endeavors

Low employee turnover

Organization trusts Employees who are occupied with their work and focused on their associations give
organizations vital upper hands - including higher efficiency and lower representative turnover.
Good commissions
So as to keep up Commitment Company gives great commissions and giving great quality at right cost to
its clients

 Annual awards
Organization has grant work for channel individuals consistently and appropriate cost among smash hits.

Conflicts
Channel conflict does not always have negative impact sometimes it is quite useful for the company

In BARKAT RICE MILL mostly conflicts occur between manufacturer and wholesaler due to difference
in goal and objective, misunderstanding and poor communication

Horizontal conflicts

Dual distribution
At some point retailer straightforwardly purchases rice from the organization because of reference control
and does not include distributer which makes a difference amongst producer and distributer.

Oversaturation
Another principle struggle is oversaturation in which maker manages numerous wholesalers which are
running tasks in same zone which is lessening deals open doors for singular merchant and at last
psychologist benefit.

Partial treatment
Another normal clash is Partial treatment on which make give some support in cost to his unique
individuals.

Price conflict
Channel individuals are setting their own particular costs, which at last increment the cost of the item, and
depreciating the item in the market.

Performance conflict
Channel individuals simply aren't doing adequately what they said they would do like offering item, looking
after stock, shipping item.
Conflict Resolution
Duty of compromise

A definitive duty of compromise is of general chief and best administration of organization consider its
channel individuals most imperative since they made colossal deals through them

In Barkat rice process channel clashes are for the most part dealt with by utilizing channel control sources.

Power sources
BARKAT RICE MILL is using following powers in order to maintain and resolve the conflicts of its
members.

Reward power
Barkat Rice Mill is utilizing Reward control keeping in mind the end goal to persuade and keep up divert
part Company as

• good commissions

• in the type of prize

• in the type of credit deals

Legitimate power
So as to maintain a strategic distance from struggle organization makes legitimate understanding or contract
between its divert individuals with a specific end goal to keep focused on its channel.

Reference power
Some of the time organizations utilize reference control keeping in mind the end goal to persuade a specific
part which have a well known personality in showcase and understand that this part can make colossal deals
for organization.

Customer profile

Customers of Barkat Rice Mill are Housewives, Restaurants, Cooking centers and super stores. Barkat rice
mill is committed to provide high quality rice to its customers. Barkat rice mill customers age are 18 to 65
(because every person eat rice whoever he is 20 old or 60 year old). Male, female both. Educational and
uneducational both are their customers.

Supply Chain

Conclusion

Toward the end I need to reason that BARKAT RICE MILL is delivering quality items and appropriating
its items through legitimate channel structure. BARKAT RICE MILL items is accessible in Lahore just
which needs to extend to different urban areas. Aside from that organization is giving distinctive
administrations keeping in mind the end goal to fulfill their clients while every individual from the
organization's channel is getting a charge out of good benefit organization additionally confronting a few
holes in its dispersion channel which should be satisfy on the grounds that the organization deal power and
imparting choices relies upon how much preparing, inspiration and bolster its channel part require and the
organization achievement absolutely relies on the execution of channel's part.

Recommendations
• Company should assemble connections at each progression of your channel part.

• Company should know who best deals entertainers in the channel are. Also, ought to distinguish
and enhance failing to meet expectations accomplices and keep your best entertainers upbeat.

• Establish a valuing technique and stick to it. Organization should treat its whole client reasonably.
• Company ought to keep away from guide cruising of their item to distributer and retailer. Since it
makes the doubt amongst distributer and friends.

• Company ought to contribute on special battles that may draw in more clients for organization.

• Company should attempt to deal its item through surely understood individuals from a market.