Internship Report

PK MEAT & FOOD COMPANY

SUBMITTED BY:
FATIMA RAZZAQ
01-221162-104

DATED: 23-11-2017
Executive Summary

PK Meat & Food Company has come forward with the perspective of frozen food. PK
food has shown sensitivity to the Muslim requirements of halal food products. People have no
more doubts and are comfortable consuming the skinless sausages, cold cuts and smoked meat.
The company implements the marketing strategy with immense skill and understanding about the
Pakistani society and is therefore successful amongst the masses that it targets.

In six weeks of internship from july 3 to aug 23 2017, I have learned about the practices
and procedures followed by PK foods to carryout supply chain operations. The steps of supply
chain are incorporated without a hitch and the products are easy to use, reliable and easily
available with great taste and reasonable prices.
Introduction

In today’s fast moving world the major issues related to society is the time. This is a
factor which creates hurdles in decision making of consumers to adapt a product according to
their needs. Another factor which contributes towards social setup for behaving in more specific
purchases is the health of general public. According to a research conducted more people were
found to be cautious about contents and taste of the products they consume. They prefer easy to
use and quick to serve products in their meals. These products are mainly focusing on the
working women and the hostilities. The hostilities require something that is ready to serve in
minutes that are less time consuming but still full of taste and nutritious as they miss the taste of
homemade food and the working women cannot get time to prepare meals, so this product
provides them the solution to their problems. But increasing prices are reducing its demand and
shifting consumers to other brand.

PK Meat & Food Company the premium brand of frozen foods in Pakistan. It is the only
frozen food company that is offering ready to cook & partially cooked mouthwatering delicacies
in Mutton, Beef & Chicken. Maintaining and delivering the highest quality is paramount to us
and the frozen foods produced by PK meat are recognized for their superior quality. Every step
of operations is geared towards continued access to live stock resources, so carefully managing
live stocks.

They are renowned in the industry as a responsible company to whom sustainable

development is a natural and vital part of our day-to-day operations. With the support of highly
skilled and committed workforce they continue to take the required steps to help lead the frozen
food industry on a sustainable path. They are situated on the outskirts of a busy metropolis;
Karachi. Processing plant is installed with the state-of-the-art processing and packaging units
using hygienic and automated methods. In order to maintain high quality standards top
professionals are hired, who ensure the meat & plant are kept completely free from
contamination.

Core Values:

 To provide premium quality

  To provide hygienic products to customers.
 Using up to date technology to stand out against competitors.

PK MEAT & FOOD PRODUCT MIX

They have two product lines that include

 PK meat
 PK livestock

In PK Meat they provide ready-to-cook and partially cooked recipes are offered in diverse
and delicious varieties, including burgers, chapli kebabs, shish kebabs, meatballs, mincemeat,
sausages, shami kabab, sheekh kabab as well as coated products such as chicken nuggets,
chicken popcorn, crispy chicken burger and chicken fillet.

PK LIVESTOCK

PK live stock is one of the leading producer of quality export beef and mutton and it is
proud of providing high quality nutritious meat to its customers across the Gulf region and
worldwide.

PK in an ISO9002, HACCP certified company. Using Australian technology, our beef

and mutton plants are equipped with the most up-dated systems available. The meat processing
chain starts at the gate and PK puts great emphasis on selecting only young healthy animals for
delivery to the plant. Slaughtering takes place under strict veterinary supervision.

Beef plant is designed and installed by technicians from Australia and our production line
is comparable to any in the region. Their technically advanced system minimizes the handling of
carcasses ensuring a more hygienic product. Moreover, our mutton plant uses the modern
inverted system renowned for its carcass quality. The plant also comes with a steamed vacuum
cleaner which further cleans the carcass. The sheep and goat carcasses are chilled and stock
netted ready for transportation.

They have a team of laboratory scientists testing not only meat quality but also things
such as air and water quality. Quality Assurance officer’s monitors and records all the functions
of the export process ensuring hygiene standards and documentation procedures are administered
appropriately. Transport fleet allows control of incoming livestock movements and outgoing
meat exports. Transportation of meat is carried out using the PK fleet of refrigerated containers.

PK MEAT Products

Ready to Cook

 Beef products
 Chicken products
 Mutton Products

Ready to Eat

 Beef Products
 Chicken Products
o Seekh Kabab
o Gola Kabab
o Shammi Kabab
 Phase 1 (3 weeks)
July 3 to 24 july 2017

SUPPLY CHAIN OF PK MEAT

Following is the supply chain of PK MEAT products and complete set of steps every PK MEAT
product follows before reaching into the end consumer hands. It also describes the integration
among all the steps, how this integration is incorporated in the supply chain of PK Meat and how
the company is capitalizing on this integration in terms of flexibility of the supply chain and
smoothness of the logistics and other business operations.

Procurement

Initially when PK meats entered the market they procured raw material from meat suppliers that
was more of maverick buying. But over the time when they sustained their position in market
they expand their brand into PK Livestock which consist of Cows and goats. Now PK MEAT
forecast the demand for next six month and procures Poultry chicken meat from Menu and
mutton and beef from PK Livestock.

Supply

There is no dead stock or excess inventory in PK MEAT warehouses because of their excellent
inventory management and forecasting. They try to maintain efficient supply chain nationally
and internationally by using modern state of the art equipment and accurate demand forecast.

Quality labs

The two slaughter houses are equipped with most modern equipment for slaughtering cows and
goats. Before slaughtering the Animals are rested for about 48 hours to provide relief from stress
that result in better meat quality. To check animals free from any infectious diseases blood test
are taken by the certified veterinarians and examined at Microbiological and chemical
laboratory. After proper lab approval, each certified animal is thoroughly washed to prevent
bacteria and germs from entering the slaughter house.

Meat cutting & storage

Using most modern practices the Premium meat is then Blast Frozen at minus 40 degrees, ready
to be used at the food processing unit. To make the meat HALAL animals are slaughtered by
butchers under Islamic slaughter rule. After slaughtering animals are processed in the most
hygienic and automated manner. During meat cutting animals are washed inside out to deter
meat smell. Cleaning is constant and each evening the entire operation is completely washed and
sanitized. Only after very thorough inspection, the plant begins operation each day.

Calcium Detector and Meat shedding

After washing, the frozen meat is moved to automatic conveyor and passed through a metal and
bone detector. This phase helps to reduce choking hazards while production. Then the meat is
transferred to the flaking machine to chop meat in to small pieces for the grinding process. All
the processes are machine based no human interaction is involved.

Meat Grating and Item Mixing:

At this phase the chopped pieces are minced in the grinding machines following the recipes.
Once grinding is done Meat balls and Chapli kababs are measured by automated programming.
After that sausages and nuggets are grinded.

Processing unit lab

For preparation of Sausages, Nuggets, Seekh kababs and Meat balls the grinded meat is
conveyed to the bowl chopper and mixing unit where spices of fine quality are added. Then the
blend is shifted to the vacuum filler where the sausages get their shape, then sausages are placed
in a smoke house and the sausages that do not meet the ISO standards are dumped out.
The blend is transferred to the formic machine where all the products get their shape and then
they are fried or partially cooked. Right after the cooking, quick freezing technique is used to
freeze the partially cooked products individually by the help of latest spiral freezing technology,
trusted by food scientists worldwide.

Ready-to-Cook and Partially Cooked Products

PK MEAT provides a wide range of value-added, safe and healthy chicken products, with a wide
variety of whole chicken, beef and mutton along with a broad choice of ready-to-cook and fully
products.

Packaging

Subsequent to escalate frozen goods are conveyed to the mechanized packaging unit, there the
packs are sealed according to the weight of every package, placed in freezing room at a
temperature of -20 degrees. The products are hygienic and healthy because there are no
additional preservatives and food colors added in it.
 Phase 2 (3 weeks)

24 July to 23 aug 2017

After learning about the inbound logistics in first two week then I examined the outbound
logistics of pk foods in the last two weeks. After understanding and analyzing the operations I
have completed a project on forecasting.

Distribution

PK meat follows two modes of distribution that is Business to Business (B2B) and Business to
Customer (B2C). In B2B they export fresh meat to UAE, Saudi Arabia, Kuwait, Bahrain and
Oman. In these countries they have signed Memorandum of understanding with their customers
for direct delivery of fresh meat. Moreover in B2C they distribute their ready to cook food in
leading stores of Pakistan.

LOGISTICS

PK Meat shipping convoy permits control of inward progress of livestock and departing meat
overseas. PK transport fleet consists of refrigerated containers to distribute meat at different
location nationally and internationally. They distribute their products in temperature controlled
imported trucks which are cost effective their products are available in every leading store of the
country. Major cities where PK meat is being distributed includes; Karachi, Lahore, Islamabad,
Rawalpindi, Hyderabad, Faisalabad, Multan and Peshawar.

Processing Equipment:

PK meat requires specialized processing equipments which are imported from all over the world.
Some countries from where they acquire their technical equipments include, USA, Germany,
Italy, Sweden, UK, Japan.

Factories:

Factories of PK meat are located in the outer part of the Karachi, from where the reach to airport
and sea port is near and convenient. This accelerates on their cost cutting.
Vertical Integration:

For vertical integration, all the steps of business operations are kept in-house. Even the
distribution of products to various retailers has not been outsourced.

Company provides its deep-freezer to retailers so their products can be provided to end consumer
in perfect frozen form.

PK meat’s transportation fleet controls movement of incoming livestock (in-bound logistics) and
after processing- processed end products are transported towards the end consumer (outbound
logistics). All transportation of products is carried out using the PK fleet of refrigerated
containers.

PROJECT: Forecasting, initiating and maintaining supply

chain and procurement for smooth processes
In the fifth week when I had thoroughly visited all the departments of PK foods and went
through their sales figure. I identified the problem in the flow of information among in their
department. Though they have state of art equipment and well managed procedures but their
supply chain strategy is not coordinating with corporate strategy. One of the reason is poor
forecast and dispersed distribution.

Summary of Project

The project aimed to provide better forecasting model that would help in analyzing the trend and
demand for the product. By collecting the figures from sales department of last 6 years I have
entered all the data on the Excel sheet and make the forecast model for the Pk foods. Now the
trend projection would help to run the smooth demand forecasting method. Simply their manager
can add figures of last month sales and project the demand for next month. Hence, a better
forecast leads to better sales.

On other hand, by devising appropriate forecasting method helped the firm to integrate the
procurement with the production and marketing department. The firm analyzed the gaps among
their department and modified the procedure which in turn increased my knowledge in areas of
supply chain. Moreover, I have identified certain ways to increase the distribution of PK foods
products. That if they apply will certainly help the firm.

Conclusion:

Working with the team of PK food was one of life experience and they provided me with the
chance to go through all supply chain operations. This internship added value to my experience
and enhanced my knowledge about the supply chain management. As per my analysis PK Meat
& Food Company one of the premium brands of frozen foods in Pakistan. That offers ready to
cook & partially cooked delicious Mutton, Beef & Chicken. PK meat has strong logistics and
supply chain. The company does not fail to supply highest quality frozen foods produced all over
Pakistan by the help of in-house handled fleets and distribution. Company’s locational and
distributional strategy is adding more value as the strategy helps in cost cutting and better
operations. Company keeps quality assurance at highest priority and its accurate forecasting
helps the company to have effective supply chain nationally and internationally.