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Introduction of operation
management of Almarai food company Saudi Arabia
Business practices are going to be more efficient and
productive with the introduction of globalization. It is because globalization
is a revolutionized strategy that has introduced new, innovative, and efficient
strategies, processes, advanced technology, and procedures. With the
collaboration of globalization and efficient skills of management is increased
the business practices more productive and good that are generated large
revenue with a high-profit rate.
Operation management is also an important department of an
organization that is responsible for the production of high level of products. The
nature of operation management is multidisciplinary that is needed to manage from
the services, expertise and competitive individual. The main purpose of this
department is to convert the material into goods that will generate high revenue
through attract a large number of customers
Background of operation
management of Almarai food company Saudi Arabia
Almarai is the largest food and dairy company and the
company has provided its special services in dairy products. The company was
established in 1977, and headquarter is located in Saudi Arabia. The meaning of
Almarai in Arabic is ‘Green Pasture’. The chairman of Almarai company is Sultan
Al Kabeer. In 2005, the Almarai company has a partnership with the Agrifoods of
Irish company Alastair Mc Guckian and then introduced the large plant of cheese.
Moreover, in 2007, the company was
established its bakery products, and for the bakery products separate place is
required that was started for construction in Al Kharj. Almarai company has a large
share in the market as providing bakery, dairy products along with juices
The operational activities of Almarai were efficient enough
as the company has achieved awards, as in 2009, the company has achieved HADCO.
In addition, after achieving the awards, the company has started to launch a
poultry farm that is Alyoum. During 2009, the company had also made a
partnership with PepsiCo. Therefore, with all these, the companies also made a partnership
with juice companies along with those dairy markets that were performing at an international
level. The revenue that is generated in the last year was 13.7 billion.
Size
Almarai Company is operating and managing a large number of
employees and farms. In this, the number of employees is increased from 5,638
to 38,300 for last 11 years. Additionally, the total number of farms of this
company is five with a large number of dairy cows that are 25,000 and the number
of replacement heifers is ranging from 14,000-15,000. From these dairy cows, 1-billion-liter
fresh milk is produced
Business type
The company is located in Saudi Arabia and the type of
business is conglomerate and the company is listed on the stock exchange of
Tadawul. The services of this company id to providing dairy, bakery, juice
products. Simply it is a food processing company that is producing a variety of
products.
Areas of operations
At Almarai company, five different operational areas are operating
efficiently and providing a competitive edge to the company. Hence, the
operational areas are flexibility, quality, speed, dependability, and cost as
well.
Competitors
Almarai is the largest dairy food company in Saudi Arabia, and
hence there are different competitors of the Almarai company. These competitors
are:
NADEC
SADAFCO
Al Rawabi
Al-Ain Farms
Baladna
Al Safi Danone
Operation Management Actives within
the Almarai
Operation management in Almarai is efficient because the company
is performing excellently with the collaboration of all departments equally. Different
departments are incorporated in an efficient way, then double the performance
of Almarai company such as:
Performance of Different Areas of
operation management of Almarai food company Saudi Arabia
Different operational areas are used at Almarai company to
maintain the growth and productivity in a sustainable way. Therefore, the operational
areas are flexibility, cost, dependability, quality, and speed to gain a
competitive edge among the business market. The company is using different
equipment while operating, such as the design of supply chain, management of
quality, capacity building to manage different tasks and inventory management
as well.
Supply chain management of
operation management of Almarai food company Saudi Arabia
Products are moved from one stage to another by the network
of supply chain management. The services of customers are also improved by the
proper supply chain management. Therefore, at Almarai, the customer services
are improved as the products are delivered to customers on time. Moreover, the Supply
chain management of products is also efficient at Almarai that maintains the
quality and monitoring of products at each level. However, Almarai is an imported
animal feed 1.5 million tons around the world. Therefore, the company is
performing according to the international standards, and in this dairy and
poultry products are the best quality products
Capacity Building of operation
management of Almarai food company Saudi Arabia
It is helpful for the business as it is efficient to
forecast the average budget of the company on time so that the objectives of the
business can be obtained and operational activities are done within the budget.
However, at Almarai capacity is built asset the price of the products on the
basis of the allocated budget. It is efficient as it is forecast the needs of the
future that will generate the production rate of the company. Moreover, the
cost structure of products also monitored by building capacity
Logistic department of operation
management of Almarai food company Saudi Arabia
At Almarai, transportation of products is delivered on a large
scale, and in this regard, the logistic department of Almarai is larger among
all Middle East countries. Therefore, for the transportation of products, more
than 1000 trucks and cold trailers are also in 1400. However, the logistic and
transportation operations ensure that delivery of products will be completed on
time. The number of employees in this department is more than 2000 that is
performing excellently in different aspects like maintenance, warehouse and the
efficient system of transportation
Human Resource Management of
operation management of Almarai food company Saudi Arabia
The role of human resource management is efficient to
improve the productivity and efficiency at Almarai company. It is because the human
resource department of Almarai is developing efficient strategies that are
motivated the employees and they perform effectively. In this, Almarai’s
operational activities, logistics, and transportation, supply chain management
of the products and services are managed by the human resource department. The
company paperwork by the management of the human resource department is
creating issues, and the company is shifting from paper-work to software system
to enhance the accuracy of the information and no delay to share the
information by the effective designing of human resource management.
Marketing Department of operation
management of Almarai food company Saudi Arabia
Marketing strategy is adopted by the Almarai company that
fulfills the requirement of marketing principles as everything is managed like
products, placement, promotion, and price of products of the company are
properly planned. Therefore, the Almarai company is achieving a competitive
edge with effective marketing principles. Hence, at Almarai marketing of the
products is proceeded into a systematic way that improves performance and
development in a sustainable way
Product/service are generated and
delivered to the customer
Almarai is generating good quality products for their
customers around the world. There are more than 100,000 customers are attached to
this company from the GCC and other countries as well. The core product of
Almarai is chocolate and producing a large range of products that are yogurt,
dairy products, bakery items, Flavored milk, Cream, dessert, butter, cheese,
ghee, and others.
Process of operation management
of Almarai food company Saudi Arabia
Almarai Company is performing excellently as it is used the pure
and good raw material for the production of dairy products such as liquid milk,
butter, ghee, fresh cream, colostrum, buttermilk, and thick cream as well. All
these products are used to improve the quality of dairy products that are then
distributed globally. According to the head of manufacturing department of
Almarai, the company is using the best quality products to produce dairy
products. Hence, the production rate of dairy products is high within the
company
The location of the company is also suitable for obtaining
raw material that is essential for the manufacturing of dairy products.
Therefore, the location of a company is also the key factor for the success of
the Almarai because the city is very populous as the selling rate is high.
Different food safety hazardous programs are also used at
the transformation phase of the dairy products. In this, the organization is
needed to formulate this food safety hazardous program as it is efficient in
reducing the growth of pests during the manufacturing of dairy products. The
activities of employees are monitored during the production of products.
Additionally, the company is focused on control measures and temperature as
well.
The packaging of products is important for the Almarai, and
at this stage, the focus is on the sealing, weighing and labeling of products.
Finally, in the last phase, the goods are stored in the storage room to avoid
the damaging of products.
Distribution Channels of
operation management of Almarai food company Saudi Arabia
The distribution channel that is used by the Almarai company
is started with the transportation of raw material from the dairy farm of
Almarai and then transfers this raw material to the central processing unit.
After that, completion of production of goods, these are shifted from the
processing unit to different places where products are selling to the
customers. Moreover, it is ensured that the packaging of products is packed at
an appropriate temperature depending on the type of products.
Packaging of operation management
of Almarai food company Saudi Arabia
Packaging of the product is an efficient practice that is
used to protect the product from the surrounding environment through suitable
material. Therefore, efficient material related packaging is used that is
efficient for use, handling and attractive for marketing purposes. The purpose
of packaging is to develop differentiation among brands and also a preview of
the product that is easy for customers.
At Almarai, all products are packed and kept at a proper
temperature to maintain the freshness, quality, and nature of the product.
Different products of Almarai are transported in different ways according to
the nature of the product. For instance, the liquid containing products are
kept in a refrigerator while transporting from one place to another. So, that
product is not spoiled or wasted
In GCC, Almarai transferred the products on a regular basis in
more than 40,000 shops. For the safety of products, a special transportation
system is designed so that products are not spoiled and remain fresh for a long
time. Almarai also transports the products to different supermarkets and
different grocery stores. Therefore, the Almarai is generating large revenue as
distributing its products at a large level.
Moreover, different distribution channels are used by the
Almarai company to promote the products using different mediums. In this,
customers are attracted to the Almarai company. These channels are:
Radio
Newspaper
Television
Promotion and Discount Offers
Billboards
Current operations of operation
management of Almarai food company Saudi Arabia
Almarai Organizational Chart Flow
The company is providing a variety of products like bakery
items, chocolates, dairy products, and products for an infant under the one
umbrella. Therefore, to manage the company in an efficient way organizational
structure is developed and assigns all roles and responsibilities among all
professionals of the Almarai company. This chart flow of organizational
hierarchy is designed all the tasks that are carried out on daily basis. This
practice is efficient as records are easily maintained by all the companies.
This chart flow is describing the duties and assign duties at every level of
the organization as upper to lower level. This organizational structure is
defined as the leadership level of the professional of the Almarai company that
is defined according to the level, skills, and capabilities of employees. It is
an efficient way to motivate the employees as if they are working with
dedication then the chances of promotion are available.
The chief executive officer of operational management of Almarai
company is Georges P. Schorderet. The deputy officer of this company is Majed
Nofal that managed the business division, whereas the head of administration
department of Almarai company is Mr. Alfahadi, The officer of human resource
department is Fawaz Aljasser is performing excellently to manage all the
activities of Almarai company. However, the general manager of bakery
department is Abdullah Al Bader that manage all process and procedure related
to bakery items within the company. Andrew Mackie is the general manager of the
farming department of the Almarai company. Polys Partelides is the officer of
chief planning and strategy as managing the strategies where is needed. Chief
financial officer of Almarai company is Paul Gay that manage all the financial
report, budget and condition as well. Hussam Abdul Qadeer is the marketing
officer of Almarai company that develops the marketing strategies within the
company. To manage the quality and regulatory services in the company at each
level is managed by Richard Salisbury as manager of quality control and
regulations.
Technology management and related issues are managed by the manager
of technology that is Sjur Fit. Dairy and juice management of the company by
the general manager that is Omar Mohammed Saleem. At Almarai company, sales,
distribution of the products and logistic related process and procedures by the
manager that is Niall Mackay.
With the large number of professionals at Almarai, the
company is performing excellently as all the departments are managed by
professionals that have competitive and effective skills. Hence, all the
professionals have a strong background related to their expertise as performed in
previous sectors. Therefore, they managed all activities of Almarai company
with their expertise, competitive skills, and capabilities.
Technology of operation
management of Almarai food company Saudi Arabia
Almarai Company has the most advanced systems to manage the
operational activities and the development of products at a global level. For
the development, the Almarai company is used different and advance technology
that improves the operational management at each level of the company.
In this regard, SAP system is used to maintain the
performance and efficiency of plant management, Human resource development as
improving the practices by computers, and reduced the usage of paperwork at the
Human resource department of Almarai. However, the SAP system of Almarai is
efficient that reducing the challenges created by the human resource department
as special code is developed for each company and records the total sales and
the different currency of different countries are used.
Almarai company is also introduced the handheld computer to
improve the information system of sales management as providing analytical
information regarding the effectiveness of the sales with its level. So, this
technology is efficient as the targeted sales are achieved through effective
customer services and the growth rate of a company is improving. This practice
is efficient, that saves time and effort at the time of transactions
Manager of a payment department, Saud Alsubaie explained
that a centralized and systematic way is the main reason that reduces the
pending payments. Therefore, this system is efficient enough that when a
supplier transferred the invoices, then only by enter the purchasing order
number, the comparison between agreed and actual prices is developed and there
is no difficulty at the time of payment. It is also efficient in reducing the
chances of risk and managing the inventory movements in an appropriate way.
To maintain the documentation system at Almarai, Q-Pulse is
used to enhance the efficiency of documentation. Therefore, this system is
improved the working condition of Almarai in different departments where large
data is stored and efficiently used in large companies like in NHS located in the
UK. At Almarai company, enabled the Q-Pure system to reduce the usage of different
resources like time is conserved and efforts put by the employees for the
approval of any project. The risk of losing documents is reduced with this
efficient system. This system can manage the data and document within two days
irrespective of several days
At Almarai, different theories are also used with the
support of globalization. Therefore, to improve the value chain system of
Almarai, the information system is improving the value chain that is processing
effectively and satisfies the customers according to their demands. Since the
use of multinational flavor in the information system of Almarai.By the use of
efficient and advanced technology in different sectors of Almarai is the reason
that the country is prospering by each passing day. Therefore, the company is
operating outside of Saudi Arabia.
Explanation of Operations Management Activities
of operation management of Almarai food company Saudi Arabia
In the Almarai company, four support and three operational
division are established and in the operational division, different stages are
involved for the efficient production and distribution of the products. There
are three main aspects of operational activities at Almarai that are:
Operations
Farming
Sales
However, these aspects are basically supported by this
division that are finance, human resource department, marketing, administration
and information, and support. In this, the main strength of Almarai is
distribution and food production. The management of each department contains
the professionals that are performed under centralized structures. Therefore,
the approach adopted by Almarai is an effective combination that depicts the
interdependence of the company on these structures.
Sales and Distribution of
operation management of Almarai food company Saudi Arabia
This department is managing the relationship of customers
with the company and in this regard, the sales and distribution department of
Almarai is assigned to meet the requirements of the customer and develop the
products to fulfill the demands of customers. At Almarai, the distribution of products on
the basis of sales or return. The system of distributor is ensuring that rate
of sales is maximum and rate of return is decreased.
Operations and Farming of
operation management of Almarai food company Saudi Arabia
Almarai’s farming practices are efficient enough that
provide high-quality products related to food and beverage. The company is
controlling the process of production that is started from the raw material to
the processing unit and then the final product. Therefore, company is ensuring
all the processes and procedures because the input of raw material is also high
quality that is collected from the dairy farm of the company.
Marketing of operation management
of Almarai food company Saudi Arabia
The marketing strategy of Almarai is a custodian that enables
the company to meet the demand of customers as maintaining the value of the
company in an efficient way. Therefore, the marketing department of Almarai is
performing under the dedicated team that has focused on marketing strategies
and principles.
To improve the marketing strategies at Almarai, the following
aspects are adopted that updated the growth of the company. These aspects are:
Awareness of Consumers
Choice of Consumers
Offers for Consumers
Development of Marketing
Quality and Consistency
Availability of Product
Expertise and Professionalism
Freshness of Products
Research and Development of
operation management of Almarai food company Saudi Arabia
From the time of establishment to the current scenario, Almarai
is continuously growing and expanding its services and variety of products.
These new products have new packaging, flavor, and taste that is produced
according to the demand of the customers. Hence, the new products of Almarai
company are under the research to develop the understanding of needs of
customers, validity, and solutions that are cost-effective. A joint effort is
done to introduce the new products by all sections of the company, especially
by the research and development department.
Information on Finance of
operation management of Almarai food company Saudi Arabia
The company is an established division that is providing
information on finance and helps the company in performing activities of
production to distribution of the products. In this, the company is established
the strategic objectives that are achieved by considering the information of
financial, non-financial activities and quality of the products that are
maintaining through using useful information of raw material.
Information Systems of Business of
operation management of Almarai food company Saudi Arabia
Almarai is committed that all the information related to
quality is proceeding under the centralized system of flow of information and
by the function of the information system of the business of the company. In
this, the company is adopted efficient practices that increase the
productivity, development, and growth of the company in a sustainable way.
Similarly, in 2002, the company is introducing SAP that is acclaimed
internationally and maintains human resource practice. However, the SAP is
considered as the backbone of logistics and finance system of the company. So,
this type of system is developed the control system among all sectors and
divisions of the Almarai company.
Administration and Human Resources
of operation management of Almarai food company Saudi Arabia
According to the perspective of the company, human resource
department is considered as the main sector and acts as the backbone of the
company. It is because this department is performing multi-tasks and managed
the diversified workforce at Almarai through efficient performance and
designing strategies. Therefore, the role of human resource department is to
identify the need for change within the company and adopted new strategies such
as SAP. Moreover, the capabilities of employees then assign tasks according to
capabilities that are effective in achieving the objectives of the
organization. The other technologies like Q-Pulse system, handheld computers
for quick transactions are adopted by the human resource department. On the
other hand, the administration department of a company is performing with the
collaboration of regulatory authorities of Almarai that are managing all the
regulatory matters of GCC in which permission, visa, and license along with
managing the rights of property
Design of goods/services of
Almarai food company Saudi Arabia of operation management
The design of goods and services at Almarai company is
unique due to which the company has achieved unique position among all food and
beverage companies in Saudi Arabia. For the production of dairy products, the
raw material is obtained from the farm of company like liquid and powder milk,
cream for thickness, and different flavor of mil that is produced by the raw
material produced by the flocks at the dairy farm of Almarai. The taste of all
flavored milk is delicious and attracts the customers to these flavored milk around
the world.
Managing quality of almarai food
company saudi arabia
To maintain the quality of products is the mission of
company since the company was established. The quality is not only maintained
in their products but also in activities and other assets of the company. The
commitment of company to maintain the quality is implemented because the company
is adopted system of quality assurance along with ISO certification that
maintains the quality at each level of the company. Although it is difficult
for the company to practice this quality practice in all the operational
sectors the company has minimized this challenge. This challenging condition is
overcome by implementing quality in all sectors of the company on regular
basis. According to a report, it is stated that among all the middle east
countries, only Almarai company is obtained the certification for the quality
under the ISO9002 quality system.
The ISO system is updated with the passage of time during
2003 and it is observed that only Almarai is that company that has achieved the
certification for all operational divisions of the company like in r4serach and
development, dairy farm, generation of products, distribution, marketing, and
sales. So, quality is the backbone of the company in relation to achieving the
success that is implemented among all sectors of the company. Therefore, all
the manufacturing processes are done under the practices that considered the
quality and then quality audits are done on regular basis to maintain quality
as an important part.
Locations strategies of almarai
food company saudi arabia
Almarai company is preferred to start their stores at those
places where flow of public is more as compared to other places. The company is
used location strategy to improve the operational activities as well as marketing
of the company. The company is located in Riyadh where access to raw material
is easy and convenient. Moreover, the company’s stores are located in places
where a large number of customers have easy access to purchase the products.
Moreover, the distribution of products for those retailer stores where large
number of customers attached to the store and maintain the purchasing of the
products of Almarai.
Layout strategies of almarai food
company saudi arabia
Layout strategies at Almarai are efficient because all operational
sectors are maintained. working condition is suitable for all employees as
health and safety of employees are considered as an important factor. In this
regard, policies are designed according to international standards. All the
employees of all operational sectors are saved to reduce the risk at the
workplace. Therefore, different programs are started at construction sites,
transportation, manufacturing and distribution of the products. The environment
is also protected through green strategies as reducing the pollution of the
activities. For instance, at the central processing plant, the use of water is
reduced by the processes that I controlled through computers.
Supply Chain Inventory Management
of almarai food company saudi arabia
The model is vertically integrated by the Almarai in
relation to performing a variety of operational activities like manufacturing,
marketing, distribution, and the process of dairy farms under the food supply
chain model. However, this model is efficiently approved by the company as
fresh and high-quality products are available on a daily basis under the
required temperature that maintains the quality and freshness of the products
Scheduling of almarai food company saudi arabia
Almarai is the largest dairy and food processing corporation
in the Middle East. Almarai is a major organization and it performs its various
operations, including production, delivery and inventory management in
accordance with latest techniques available. The organization uses latest
technology solutions for planning & scheduling operations of the
organization. In recent years the corporation has implemented Manufacturing
Executive System (MES), which is provided by AVEVA Corporation. With the help of
MES the corporation can schedule its manufacturing more efficiently. With MES
the overall performance and efficiency of the organization have increased
significantly. The organization has implemented this system over 100 packaging
lines.
With the help of technological solutions, the company know
can perform scheduling of its operations far better than before. Scheduling
plays important role in meeting the needs of the customers. If the organization
has not scheduled its manufacturing properly than the shortage of products can
occur in the market due to which the sales of the company will experience
decline. Furthermore the reputation of the company also experiences decline
which will result in lower profitability. Scheduling is also important in
inventory management perspective and for the distribution of the products. It
is important that the company should schedule its distribution after analyzing
the demand for its products.
The corporation has not only automated its manufacturing
operations but also automated its HR processes as well. Almarai organization
uses SAP software for managing and scheduling HR activities. Before the
implementation of SAP the organization performs its HR activities manually. Too
much paperwork results in inaccurate information, excessive delays, and
inefficiencies. With the help of SAP the corporation becomes able to schedule
its HR tasks more efficiently. Not only the issue of excessive delay has been
resolved but also SAP has reduced the HR department cost up to lot of extents.
In Short with SAP the scheduling activities of the organization improves.
If the above discussion is kept in mind then it can be said
that organization pays special focus on scheduling. Without scheduling the
corporation might unable to deliver its services. The organization schedule the
demand of the customers with the help of technology and then produce the
products so that the demand of the customers can be fulfilled. Scheduling helps
the company to maintain a balance in demand and the product it produces. Almarai
company is also introduced the handheld computer to improve the information
system of sales management as providing analytical information regarding the
effectiveness of the sales with its level. At Almarai Company, enabled the
Q-Pure system for scheduling the usage of different resources like time is
conserved and efforts put by the employees for the approval of any project.
At Almarai, scheduling is performed by keeping the concept
of globalization in mind. Therefore, to improve the value chain system of
Almarai, the information system is improving the value chain that is processing
effectively and satisfies the customers according to their demands.
Conclusion of OPERATION
MANAGEMENT of almarai food company saudi arabia
It is concluded that the Almarai is performing excellently
among all GCC due to its efficient practices of operational management. The
company has achieved a competitive edge due to producing quality-based products
like chocolates, bakery, cheese, milk and etc. Capacity building is an efficient
practice that enhances the quality of services and products and generates a
high-profit rate. The company has focused on the short-term objectives that
should be changed for sustainable development. Almarai is performing
excellently due to the good will power of both employer and employees that are managing
all activities in a responsible way. Different strategies are used, and the efficient
performance of directors and general managers of Almarai company are developed a
sustainable position among all developing countries. Dairy products are
generated with the use of quality raw material that produced a high quality of
products. Distribution channels are used to deliver the products for the
customers on time. The role of strategy is efficient to develop the guidance to
the professionals of Almarai and employees as well to perform efficiently. Advanced
technology is also used to improve the manufacturing of products. Almarai is
performing significantly in Saudi Arabia that empowers the economy of the country
through its performance and development with the collaboration of effective
operational management. To maintain the quality of
products is the mission of company since the company was established. The
quality is not only maintained in their products but also in activities and
other assets of the company. The commitment of company to maintain the quality
is implemented because the company is adopted system of quality assurance along
with ISO certification that maintains the quality at each level of the company.
Although it is difficult for the company to practice this quality practice in
all the operational sectors the company has minimized this challenge.
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OPERATION MANAGEMENT of almarai food company saudi arabia
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