About the Company

Khyber Tobacco Company (KTC) is a publicly-limited business, as well as one of the largest tobacco producers in Pakistan. KTC has also expanded to have a global distribution network in Eastern Europe, Africa, Central and South Asia and the Middle East with a history of over 50 years. The company manufactures good quality leaf, blended tobacco, private label cigarettes, filter rods, and non-tobacco product using its integrated production plants.

Client Overview

KTC is a well-established tobacco company worldwide with blends and finished products. KTC has a fully integrated production facility that is modern in nature and extensive domestic and international distribution network, with the main focus being on providing a consistent quality, innovation and operational excellence.

Summary

KTC contracted the service of SowaanERP to make the company stronger in the sphere of procurement, factory control, inventory accuracy, and financial reconciliation. The operations were characterized by a difficulty in handling the high-value materials manually, limited visibility in the depots, and manufacturing processes that were not digitized. SowaanERP adopted the use of end-to-end ERP system; procurement, manufacturing, inventory, audit and finance.

Challenges Faced

Physical procurement and verification of growers of leaves.
Inventory visibility between depots not real-time.
Ineffective control of GLT manufacturing.
Stock-outs and tracking issues of the loss of inventory.
Poor financial traceability and reconciliation.
Lack of automated audit and re-weighment reporting.

Solution

SowaanERP implemented a complete ERP system that comprised of the following modules

Procurement Module

Electronic procurement of leaves, biometric identification, bale identification, and grading.

Manufacturing Module

Automated Work Orders, BOM, factory production tracking and Yield management.

Stock Module

Enhanced real time tracking of inventory at depot to factory with variances.

Finance Module

Combined costing, ledger control and automated reconciliation.

Audit & Re-Weighment Module

Added real-time variance detection, re-weighment recording and complete traceability

Results

KTC has attained a higher level of accuracy in the procurement, optimization of factory processes, improved inventory transparency, automated financial processes and audit preparedness. The customized solution offered by SowaanERP enhanced operational control and sustained the current growth goals of KTC.

What Our Client Say

SowaanERP has delivered transparency and full control on our procurement and manufacturing cycle. It has made our depot to factory operations stronger.