Souvenir Tobacco Company Limited (Sec-III)Cont...

(Source: Secondary Manufacturing Department STC Complex)

4.8 Material Management Department (MMD)

4.8.1 Mission Statement

“Be a key contributor in company mission to strive for quality exceeding consumer’s expectation by providing overall superior service and optimum value for money in all that we procure. As a key parameter to achieve this end, become the preferred business partner for our suppliers.”

4.8.2 Services

“Supply of wrapping material is done by an external supplier and dispatch of finished goods to warehouses in Lahore and Sindh is given to the sole distributor i.e. Iqbal and Co Chek Alla Dad Khail Mardan”

The material management department deals with all the incoming and outgoing material used for factory. The material of all the departments issued through MMD.

This department is responsible for local purchases and as it obvious from its name it provides to all other departments material required and this department manages all the material.

By managing we mean that it is responsible for purchase of material, storage and inventory control. In STC the valuation method of inventory is FIFO i.e., first in first out method of inventory costing.

Main objective of the material management department are,

• To maintain record and inventory of incoming wrapping materials and other items according to the company inventory policy.
• To educate and work closely with suppliers for the improvement of material in the quality items.
• To try for keeping minimum cost of material s without damaging the manufacturing operation.

Material Management Department deals with all the items that enter into STC gate except Tobacco Leaf, which is concerned with Leaf Department, MMD controls the following areas

• Wrapping Material Store
• Cigarette Shipping Go downs
• Printing Department
• Baling Material Store
• Stationery Store
• Local Purchase Department.

When any department wants to purchase something they give Request of purchase on memo to Material management department called INDENT CP-24. Then it purchases it and sends it to concerned department.

4.8.3 MMD Suppliers

§         M/S Packages Ltd

§         M/S Pail (Aluminum Foils)

§         M/S Big Beard (Tore)

§         M/S PMD, France (Acetate Tow)

§         M/S Adhesive (Adhesives)

§         M/S Century Paper Board (Box Board)

4.8.4 MMD Customers

§         Secondary Manufacturing Department (SMD)

§         Primary Manufacturing Department (PMD)

§         Filter Rod

§         GLT

§         Leaf Department

§         Marketing Dept

§         Printing Dept