Jammoul Bakeries SCN and Logistics Essay

Faculty of Business Administration

Jammoul Bakeries

178943018161000

Hadi Jammoul

Alaa Issa

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Table of Contents

TOC o “1-3” h z u 1.History and Background PAGEREF _Toc532415106 h 4?Introduction to the Sector PAGEREF _Toc532415107 h 4?Specialties PAGEREF _Toc532415108 h 4?Commercialization PAGEREF _Toc532415109 h 5?The company PAGEREF _Toc532415110 h 52.

Mission and Vision PAGEREF _Toc532415111 h 63.Position in the Market PAGEREF _Toc532415112 h 74.Organizational Structure PAGEREF _Toc532415113 h 7Accounting department: PAGEREF _Toc532415114 h 8?Task 1: PAGEREF _Toc532415115 h 8?Task 2: PAGEREF _Toc532415116 h 95.Supply Chain Network PAGEREF _Toc532415117 h 106.Pricing PAGEREF _Toc532415118 h 117.Push and Pull strategy PAGEREF _Toc532415119 h 12

History and BackgroundIntroduction to the SectorThe baking industry is summarized by those companies that focus on manufacturing baked goods.

These baked goods consist of some types of bread, cake, cookies, crackers and pastries etc.

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Bakery is a traditional activity that occupies an important place in food processing sector. It consists of semi-automatic and automatic bread lines as well as biscuit plant, a fairly sizeable cross-section of the population still prefers fresh bread from bakery. With growing population and nutritional standards as well as demand for fresh, ready-to-eat convenience foods, the demand for bakery items has also increased considerably. Bakery items include bread, biscuit, cakes and pastries and these are consumed both as breakfast and snacks food.

SpecialtiesSome bakeries lately provide services for special events and occasions (such as weddings, birthday parties, anniversaries, or even business events) or for people who have allergies or sensitivities to certain foods (such as nuts, peanuts, dairy or gluten). Bakeries can now provide a wide range of cakes designs such as sheet cakes, layer cakes, tiered cakes, and wedding cakes with different tastes and flavors. Other bakeries may be specialized in traditional or handmade types of bread made with locally milled flour, without flour bleaching agents or flour treatment agents, baking what is sometimes referred to as artisan bread.

CommercializationGrocery stores and supermarkets, in many countries, sell prepackaged bread, cakes, and other pastries. They can also offer in-store baking and basic cake decoration (wooden bakery, Jammoul, chamesine etc.). Nonetheless, many people still prefer to get their baked goods from a small artisanal bakery, either out of tradition, the availability of a greater variety of baked goods, or due to the higher quality products characteristic of the trade of baking.

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The company

Jammoul Bakeries located in Jiyeh, Lebanon as the main branch, the Bakery opened its doors in 2003, and since then it has been a huge success, in just 2 years it opened their second branch in Beirut, a small shop that delivers the goods made in Jiyeh, in addition to fresh juice and tasty ice-cream flavors, the small shop was also a hit and success for the owners.

Jammoul bakeries in addition to its baked goods and pastries, served breakfasts, dinner, and launch. In addition to Lebanese plates and some western plates.

The company takes health and safety standards very seriously and considers it the number one rule that cannot be touched.

Bread and its derivatives are an excellent product.

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The raw material used are classified as top quality.

“We care about people, we consider them family, and off course we want to serve the best for our families” says the general manger.

In 2006, upon the war that happened in the summer, the shop in Beirut took a severe damage, and was closed, and also the bakery in Jiyeh took a blunt when most of its equipment were damaged and needed replacement, expenses were high.

In the light of this incident, they decided to close the shop in Beirut, and continue in Jiyeh.

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The bakery now produces bread and its derivatives, exporting to UAE through an independent company that purchases the products from the bakery and takes the responsibility of delivering these products, in addition it has multi-distributors, who are responsible of delivering the goods all across Lebanon. Also, they produce customized orders and large batches of specific sweets.

Mission and VisionOur vision is to provide baked goods of premium quality to every household in Lebanon. Because we believe that everyone deserves to try top baked goods, therefore we take the matter of quality and service very seriously and we are looking forward for applying for the ISO program certificates given for quality management and food quality.

Our mission is to create an inviting warm atmosphere for our clients and customers to be able to purchase their baked goods. We care about the experience and we think it’s one of many factors that takes a part in a customer’s decision for the next purchase, we want to provide an excellent service with a premium quality goods to guarantee that our customers will stay loyal.

Position in the MarketJammoul Bakeries were the first bakery in Jiyeh, they had the most market share with minimal competition, they distributed to almost every market in Jiyeh and its suburbs, in addition to Beirut and south district, by time after the 2006 war, and after many bakeries had opened in Beirut they lost their market share in Beirut to bakeries that are located there, which is understandable due to the high cost of transportation, but in Jiyeh they still have the majority of the market share, since they still are the only bakery in Jiyeh, the competition they face is only by bakeries outside their area, who have there products distributed in Jiyeh for a larger market expand, they are currently expanding their market in Chouf, Damour, Saida, hoping for a larger market share there.

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Organizational StructureThe bakery is divided into different departments, and every department has its own supervisor, who at the end of the day all report to the Teams manager, who himself reports to the general manager every morning.

Owner and General Manager

The registered owner and General Manager of the bakery is Houda Ayad, she is responsible of the decision making on every activity and operation, in addition to follow up with the team manager, she is the face of the company, and the one responsible for every legal and governmental requested document.

Financial Director

Mohammad Jammoul has the second position in the firm in form of ranking, and has major responsibilities, all of them are with the suppliers, customers, staff and employees, and possible investors.

His key role on a daily basis is to pay our suppliers and receive the money from the daily transactions, count it, put it in the safe, this action happens every morning, waiting for the confirmation of the accounting department

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Chief Accountant and Inventory Specialist

Hadi Jammoul

Accounting department: 

Hadi Jammoul is responsible for performing highly specialized work required to maintain the company’s general ledger. He directs and coordinates the daily activities of the accounting staff to have an accurately record of revenues, expenditures, assets, and liabilities.

It’s divided to two parts:

Task 1:All what is related to the goods that are imported, in addition to the raw materials that are necessary. It involves: 

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a. Stock maintenance: every imported item is registered in the stock maintenance, record: Model number, description, VAT, Suppliers name. Currency after filling the product records, the specialists of the imported items they will be saved for our own company’s system, so the item will be available on the system if they’re sold or not (according to their codes)

b. Inventory evaluation: a list of all the quantity of items available that are shown online.

c. Purchase manual: as we purchase goods from our suppliers, we register every bill that we get from them in this account. So, in case of loss, it’s recorded in our program.

d. General inventory: It’s generated annually in order to know the amount and quantity sold. Moreover, in case of theft, the program will automatically update the inventory after taking into consideration the stock maintenance, online quantity, and invoices.    

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Task 2:Journal:

a. The daily transactions between clients and our organization. 

b. The daily cash or check payments between clients and our corporation.

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c. The cash fund: to know what the weight of the company in order is to provide the investors with cash equivalent assets (low-risk, low-return investments). Here we register all the invoices and cash payments.

General ledger:

a. Statement of account: every client has the right to have a statement of account. It shows the number of invoices and payments in a range of time, reaching the final balance of the customer.

c) Trial balance: a trial balance is printed every Monday for every category in our company: the suppliers and the clients.

Kitchen Department

It consists of the head chef and his team of helpers; their daily work basis is to bake what is requested by the sales department, in addition to special orders and batches, they are also responsible for quality and clean baking, and assuring that everything baked is matches our quality standers.

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Sales Department

The art of sales is defined by completing a transaction from the time we introduce our company to a prospect; to the delivery of the finished goods and payment for that good.

The sales department is responsible for selling our goods and products and also for packaging and delivering them to different markets, also we have independent distributers who buy the products from the bakery and sell them to super markets and groceries in different locations.

Supply Chain Network

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. 

Supply chain networks allow us to look at the big picture; giving us a better understanding of the flow of materials and information.

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Our supply chain network consists of suppliers and our company where the production occurs and distributers who distribute our products to markets where customers can get them.

There are different paths in our supply chain network,

We start with suppliers who get us our raw materials, such as milk flour, sugar, salt, yeast, sesame, eggs, chocolate, cheese, and many more, in addition to the packaging bags and fuel suppliers these products are delivered to our door every day, we convert these materials to the goods and products we produce.

Our first path is simple, from the supplier to the producer, to the customer through our show room.

Our second path is from the supplier to the producer to our distributers to retailers to the customer.

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Our third path is from the supplier to the producer to independent distributers to different markets and retailers and to the customer.

These are our supply chain networks; our most efficient path is the second path because it depends on much larger orders and is handled by our staff making it easier to control.

Pricing

The concept behind a fixed price is to decrease and minimize customer uncertainty toward the company’s final price, which may be due to market fluctuation, time-frame variables or potential changes to the scope of a project. A fixed price tells a customer that the risk of a certain increase in costs belongs directly to the company itself and not to him. However, a fixed price helps in convincing the customers to keep coming back but not enough for sure. Additional incentives and processes may be required for the fixed-price strategy to work for a company in a competitive environment.

Fixed Pricing Advantages

Fixed pricing is intended to attract more customers and clients because it offers them assurances. For example, a fixed price helps the client to know how much he will pay before even going to the store or purchasing the product he wants. Fixed pricing is also consistent, so customers get used to your pricing and you have less risk of offending them by fluctuating prices over time. Sales forecasting and profit estimates are also simpler when you know your price point.

Fixed Pricing Disadvantages

Fixed prices are considered somehow risky at a certain percentage. Since in some cases it may lead the company to a certain misunderstanding with its customers leading to lose their trust. For example, Fluctuation, decreasing the number of employees, decrease in the quality of the products for behaving in the same pricing range etc.

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We at Jammoul bakery focus through our basic products on fixed prices, yet in some cases and through some customized products we depend on certain menu pricing strategies.

Push and Pull strategy

In Push strategy, marketers and salespeople has to push the company’s product into the customers mind by somehow making them ready to obtain and purchase our product. In this case a business assures to get their promotional message to the customers even if there’s no need or interest toward such product. So this type of strategies delivers the product directly to the customers through the different marketing channels to make sure that the customer is fully aware of the product at the time they buy it.

On the other hand, in Pull strategy, the main idea is to make the customers come to you. It is a type of marketing strategy that attract customer’s ideas, opinions, and interests. And upon their ideas we produce, and we deliver the values they’re waiting to receive. It helps in gaining customers satisfaction through delivering them their needs and wants.

We at Jammoul bakery depend on the push strategy in most of our products (bread, cookies, donuts, mankushe). Yet among the customized birthday cakes, cookies, cupcakes, large batch orders we assume the pull strategy.

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Reference:

HADI JAMMOUL

[email protected]

03712913