By

1st Entrepreneurial
Business School
of Pakistan

Distribution Network Disruption A Case Study on Engro Foods

In early 2013, Engro Foods encountered a significant distribution crisis that severely impacted product availability, especially for its popular brands like Dairy Omang and Omore. This caused a decline in revenues and frustrated customers. CEO Sarfaraz A. Rehman and his leadership team initially looked at the distributors as the cause, but quickly realized that blame wouldn’t solve the issue. They decided to take immediate action by bringing in new distributors and making a significant investment in strengthening the company’s distribution infrastructure, which had been neglected in the past. Despite challenges such as the deteriorating security situation in Karachi, employees worked tirelessly to ensure that products reached consumers. After intense efforts, Engro Foods successfully restored its product availability, rebuilt consumer trust, and regained its market position. The crisis not only tested the company’s resilience but also underscored the importance of securing a reliable distribution network.

Related Concepts:

Supply Chain management, Logistics management, Sourcing and Procurement strategy, Inventory Management

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