Supply Chain Management Critical Essay.
MASTER PAPER On IDENTIFYING THE MAJOR CHALLENGES OF SUPPLY CHAIN MANAGEMENT OF SUPERSTORE FOR SINHA LTD Prepared For Ms. Rabeya Rahman Lecturer Department of Management Studies Jagannath University Dhaka. Prepared By MUHAMMAD ZAHID HOSSAIN SHIKDER Roll No # 085587 Section: B Department of Management Studies Academic Session: 2007-2008 MBA Program 2nd batch 3rd semester Jagannath University Dhaka. [pic] Date of submission: DECEMBER 11, 2011 Letter of Transmittal
December 12, 2011 Ms. Rabeya Rahman, Lecturer Department of Management Studies Jagannath University, Dhaka. Subject: Solicitation for Acceptance of the Report. Dear Madam, We are pleased to submit the report title “Identifying the Major challenges of Supply chain Management of Superstore for Sinha Ltd. ” as requirement of on going MBA program. We have tried our best to make this report holistic and informative enough. All the works presented here is done with utmost sincerely and honestly. Thank you for your cooperation and guideline.
Working with such an interesting program has given us the opportunity to achieve experience on it. I will be highly encouraged if you are kind enough to receive this master paper. I am always available for any future quarries regarding this paper. Yours truly Md. Zahid Hossain Shikder. MBA Program, 2nd batch Department of Management Studies Jagannath University, Dhaka. Department of Management Studies Jagannath University, Dhaka [pic]
Acceptance Letter This is to certify that the presented report entitled “Identifying the Major challenges of Supply Chain Management of Superstore for Sinha Ltd. ” has been carried by Muhammad Zahid Hossain Shikder, Id No. 085587, MBA Program 2nd batch, Department of Management studies, Jagannath University, Dhaka, under my direct supervision. I recommended the prepared report as can be accepted in the fulfillment of the requirements for the degree of Master of Business Administration. Ms. Rabeya Rahman Lecture Department of Management Studies Jagannath University, Dhaka
Acknowledgement At the very first moments, thanks to almighty Allah for especial blessing in completing the research proposal. A single individual can achieve no Nobel objective. I am indebted to a number of persons for their kind advice, suggestion, direction cooperation that enable me to have an experience in the dynamic and challenging environment of the supply chain sector ultimately to prepare this paper. There are many people involved in the process of my thesis and motivated me in one way or another and, as well, make my academic work more fruitful.
I am indebted to the honorable supervisor, Ms. Rabeya Rahman, Lecturer, Department of Management Studies, Jagannath University for his meticulous support and direction in preparing the paper. His valuable suggestions and guidance helped me to prepare the paper on such a lively issue. It gives me immense pleasure to thank large number of individuals who have contributed directly in this paper for their help and encouragement. I express my sincere gratitude to this people for helping me providing information’s whenever I asked for it.
I express my sincere gratitude to honorable senior executive (Sinha Ltd) Md. Gaish Uddin Miron, Certified Supply Chain Manager (ISCEA, USA) for helping me providing information’s, whenever we asked for it. Without their kind co-operation in all respect it would not been possible for me to prepare this paper. Furthermore, I would like to express my gratitude to all our respondents who spent their valuable time answering my questions. Without their cooperation, my paper would not be completed. Executive Summary
Chapter 1- In this chapter I have summarized the most common definition in the field of supply chain and major challenges of supply chain management which are facing the superstores in Bangladesh. This proposal has been designed with statement of the problem, literature review, objectives of the research, benefit of the research, plan of the study, research methodology. Chapter 2- This chapter provides the real condition of retail chain of Bangladesh and focuses on how superstore is increasing their efficiency with proper branding and how supply chain create impact on superstore perishable items.
Chapter 3- This chapter highlights the overall corporate information for the organization and future orientation with vision and mission statement and describing the present condition by the basis of SWOT analysis. Chapter 4- In this chapter I have analyzed the practical experience which I have gathered by doing my research works about specialized functional areas in the organization. The major functions have been categorized in this chapter also.
Chapter 5- This chapter provides the retail supply chain elements with major challenges of a superstore and analysis these problems in a systematic process. Organized retail and supply chain relationship also been discussed in this chapter. Chapter 6- In this chapter I’ve drawn a conclusion and give some recommendation about the relationship with superstore and supply chain. I’ve been trying to find solutions with the help of efficient supply chain processes. Table of content |S. l No. |Chapter particular | Pages | |Letter of transmittal | | | |Acceptance Letter | | | |Acknowledgement | | | |Executive Summary | | Chapter One 1. 0 |Introduction |01 | |1. 1 |Statement of the Problem |01 | |1. 2 |Objectives of the Study |03 | |1. 3 |Methodology of the Study |04 | |1. |Literature Review |07 | Chapter Two |2. 0 |Scenario regarding the main topic of the report in Bangladesh. |09 | Chapter Three |3. 0 |An overview of the organization |12 | |3. |Background |12 | |3. 2 |Corporate information |14 | |3. 3 |Organization structure |16 | |3. 4 |Number of branches |18 | |3. | Number of employee |18 | |3. 6 | Vision statement |19 | |3. 7 |Mission statement |20 | |3. 8 |products |21 | |3. |Principal Activities |23 | |3. 10 |SWOT analysis |23 | |3. 11 |Action plan |25 | Chapter Four |4. 0 |Practical experience gathered through doing research works |26 |
Chapter Five |5. 0 |Finding and analysis regarding the objectives of the study including |26 | | |problem identified | | |5. 1 | Retail Supply Chain Elements |27 | |5. 1. |Merchandise Management Processes |28 | |5. 1. 2 | Sourcing process |29 | |5. 1. 3 |Logistics Management Processes |29 | |5. 1. 4 |Customer Service Processes |29 | |5. |Identifying Major Supply Chain Management Challenges In “Me and Mom” |30 | | |Superstore | | |5. 2. 1 |Merchandise Management Processes |30 | |5. 2. 2 |Sourcing process |33 | |5. 2. |Logistics Management Processes |34 | |5. 2. 4 |Customer Service Processes |36 | |5. 3 |Interpreting the Data from the Likert Scale |38 | Chapter Six |6. 0 | Conclusion |45 | |6. | Recommendation |46 | End Matter | |Reference |48 | | |Questionnaire | | Chapter One 1. Introduction Organized retailers in the country are focusing more on strengthening their backward linkage supply chain, a challenge faced by retail chain shops for product availability.
As the superstore concept is not very traditional the superstore biggies have failed to grow accordingly due to proper and sufficient supply chain management. The most organized and disciplined retailers are trying to maintain their own supply chain management to bring fresh and quality products to the store in urban area from root level farmer directly. A supply chain management consists of all parties involved directly or indirectly. I have focused here about major challenges of supply chain management which are facing the superstores in Bangladesh.
This proposal has been designed with statement of the problem, literature review, objectives of the research, benefit of the research, plan of the study, research methodology. Supply chain management is a systematic effort to provide integrated management to the supply value chain in order to meet customers need and expectation from suppliers of raw materials through manufacturing and on to end customer. A supply chain consists of all parties involved directly or indirectly. Supply chain is the most important and first challenge to sustain business and retain the customer.
As a supermarket perspective supply chain management is a circle bringing the rural products to the urban shops. Later the Internet revolutionized the value chain by the hype around online food retailing and the more serious introduction of Business-to-Business e-commerce. In recent year a number of e-marketplaces will become mature by introducing new communication standards and Collaborative Planning, Forecasting and Replenishment. 1. 1 Statement of the research problem Bangladesh is going through a retail revolution.
All the big business houses are entering this sector and it is growing very past pace. Superstores are set to boom in the country as the current market players are planning to open several hundred more outlets in the next few years to cope with the rising demand from the consumers. With a strong 15-20 per cent annual sales growth, about 30 companies with more than 200 outlets have already made foray into the industry since Rahimafrooz, one of the largest business groups in Bangladesh, introduced Agora, a chain superstore, in the capital a decade ago.
However, our country also poses a big challenge to organized large retailers particularly in food sector. Food being perishable item, for the retailer to be successful the key is proper supply chain management. The challenge comes from a number of factors, e. g. huge size and population of our country, varied culture and hence varied taste, very poor infrastructure like improper roads, bad connectivity between production centers and markets, lack of proper cold chain facility like refrigerated transportation, ware-housing etc.
Under these circumstances it is interesting to find out how large organized retailers are coping up with these problems. In this paper a comparative study is made in supply chain management adopted by different players in food and grocery segments. Hassle-free shopping environment, hygienic commodities, fresh vegetables, meat and fish at the supermarkets are earning appreciation of the customers. The supermarket biggies have attempted the massive expansion drive to attract the shoppers, who still depend on unplanned wet markets to buy their daily essentials.
They say that a rise in organized retailing would offer the consumers hygienic foods at competitive prices, compared to those offered by retailers in the kitchen markets, where commodities are sold mostly in unhygienic condition. The rise in the number of supermarkets, according to analysts, will diversify the choices of consumers and boost their spending, so much needed for economic growth, while the wet markets will also improve quality and services following in the footsteps of supermarkets. Fresh vegetables directly collected from the farmers are one of the key reasons behind the increasing popularity of the stores in Dhaka.
But some challenges are increasing day by day. The business suffers from poor organization in the purchase of supplies. The purchasing of goods and services for the business use is known as Procurement. There are three managers who all participate in the purchase of items; each person purchases items they think necessary often leading to double orders or items not being bought at all. There are several suppliers used some of which deliver while others operate a cash and carry policy, causing partners to use their own transport.
Although several suppliers are utilized, the lack of regular custom by the company causes lack of interest by the suppliers and so the company misses out on priority service and possibly loyalty bonuses sometimes offered by these outlets designed to encourage repeat custom. Due to the power that comes with control over consumer contacts, retailers are often dominant in a supply chain. Closeness to end consumer markets gives retailers fast and precise information about matters such as shifting fashion preferences and attractiveness of competitor’s offerings, comparable to continuous market research. Even though power is no end in itself, it oes include the opportunity to organize the supply chain in a suitable way. Many challenges face retailers today. Expanding product variety, greater fluctuations in demand, and shorter and shorter product life cycles make time-to-market reductions essential. The ever-increasing need for reduced lead times continues. Maximum coordination of work in and between companies is therefore necessary, as otherwise it will lead to higher costs as well as to longer lead times. There is however no single best way to manage a supply chain; the way retailers compete in consumer markets influence what should be focused on.
As no company can be everything for everyone, there is interdependence between what a company sets out to be for a consumer, i. e. the company’s value proposition, and that company’s supply chain. According to Christopher (1997), a value proposition concerns how, where, and when a company creates value for its customers, and that all activities – from product development to order fulfillment – should be based upon it. This thesis’ research purpose is to investigate the relationship between retailers’ value propositions and their supply chains.
A prerequisite for sustainability is that there is a match between what is offered to consumers and the organization of the supply chain activities. It is not enough to be knowledgeable about competitors and customers’ preferences to perform well. Supplying consumer goods in a disorganized or inefficient manner will wipe away the chances of making profits. This was evident in the dot com death where so called e-retailers lacking logistical expertise were 3 driven out of business; left are more or less traditional and experienced store- based retailers and mail order companies who have added just another sales channel – the web.
Profound understanding about how factors such as type of product, fashion content, demand pattern, assortment width, service level, and location is related to supply chain work, are therefore crucial. 1. 2 Objectives of the study The main objective of this proposal is: How supermarket could focuses their supply chain problem and where need to take proper guidance. The research proposal has the following objectives: • The development and standardization of specific methodology to collect information of each business process. • The problems encountered throughout the whole chain. To re-design and propose required business processes in order to develop an effective SCM system for this industry. • To identify the relationship with customer and supplier for real time information. • To identify the area in supply chain where special focus is require. 1. 3 Methodology of the Study 1. 3. 1 Sources of Data To accomplish these paper two types of data sources have been used: 1. Primary Data 2. Secondary Data Primary sources are: • Customer’s attitude towards “Me and Mom” “Me and Mom” Sales Person Behavior • Checkout Counter System • Flyers & Banners placement for discount • Salesperson’s Comments • Interviewing Customer Manager Secondary sources are: • Sinha Ltd’s Web • Competitors Report • Newspaper Articles 1. 3. 2 Scaling Technique One scaling techniques will use in final questionnaire. Five-point likert scales (1 for strongly disagree to 5 for strongly agree) will use to measure consumer response regarding for superstores. 1. 3. 3 Sample Plan The sample plan covers target population, sampling frame, sampling technique and sample size.
These are presented below: 1. 3. 4 Target population • Elements: The sample elements for the research are the Male and Female customer and supply chain managers. • Sampling Units: Main superstores, supply chain managers, customers. • Extent: Main areas in Dhaka City. 1. 3. 5 Sampling Frame There was no such structured sampling frame that could be gathered conveniently. 1. 3. 6 Sampling Technique As there was no structured sampling frame, non-probability convenience sampling technique had been used to collect the desired data for the research. 1. 3. 7 Location/Geographic coverage
The research will conduct in Dhaka city. The survey for research will conduct in Sinha Ltd, superstores in Dhaka. 1. 3. 9 Sample Size The sample size of the research shall 20. 1. 3. 10 Method of Analysis I will use statistical techniques weighted average, tabular presentation. To analyze the collected data from primary sources, some statistical method like weighted average, cross tabulation will use and the actual situation in implementation and its problems has driven. Weighted Average XW = ? Wx /? n Here X = The variable, and n= number of total respondents. 1. 3. 1 Limitations of the Research • The sample size of 20 respondents will not represent the whole population of concerning to this sector. This limitation result from shortage fund and time constraint. • Unequal distribution of respondents across different survey areas is another limitation. • Absence of similar research activities in the context of Bangladesh has restrained the researcher from getting valuable insight and direction of such research activities. • The lack of experience on the part of the researcher in conducting such research is still another area that limits the scope of the research. . 4 Literature Review Supply Chain Management The Council of Supply Chain Management Professionals (CSCMP) defines Supply Chain Management (SCM) is “the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. ” It also includes coordination and collaboration with channel partners which help to integrate supply and demand management within and across companies. (See http://cscmp. org) The activities from each point to point of the chain may be counted as the flow of value-added activities.
Supply chain management is defined as the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer et al. , 2001, p. 18). Supply Chain Management is a network of facilities that produce raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system.
It ps procurement, manufacturing and distribution (Lee & Billington 1995) the basic objective of supply chain management is to “optimize performance of the chain to add as much value as possible for the least cost possible”. In other words, it aims to link all the supply chain agents to jointly cooperate within the firm as a way to maximize productivity in the supply chain and deliver the most benefits to all related parties (Finch 2006). Adoption of Supply chain management practices in industries has steadily increased since the 1980s.
A number of definitions are proposed and the concept is discussed from many perspectives. However Cousins et al. (2006); Sachan and Datta (2005); Storey et al. (2006) provided excellent review on supply chain management literature. These papers define the concept, principals, nature, and development of SCM and indicate that there is an intense research being conducted around the world in this field they critically assessed developments in the theory and practice of supply management. The phrase supply chain management (SMC) lacks a clear definition.
A literature review reveals that it has become an expression in business literature used to incorporate almost anything within the field of marketing and logistics. To give one example: Ross (1997) considers SCM to be no less than a method, a concept, a philosophy, a system, a process, a strategy, and a state of mind. With such an all-embracing depiction it is hard to grasp what it really is; below we will look into what we consider to be the constituent parts of SCM. “A supply chain is the set of entities that collectively manufactures a product and sells it to an endpoint. (Stern et al, 2001, p. 513) The ultimate beginning point is where raw materials are being extracted and the end point would be where goods and services are being consumed, or perhaps even recycled. However, this view is extremely comprehensive (read theoretic) and obviously very difficult to put into a practical context. Therefore, the business view on supply chains is somewhat arbitrary, leaving managers to decide their own boundaries of the supply chain. (Ibid) The alignment of firms is in the literature alternating called a supply chain, a emand chain, a value chain, or a marketing channel. A major concept in supply chain literature is the alignment of supply chain initiatives with the overall business strategy of a company. Porter (1996) differentiates between operational effectiveness and strategy. Porter notes that recent business trends have focused on improving operational effectiveness, which at a generic level involves performing the same activities better than competitors. Conversely, strategic positioning involves performing different activities than competitors or performing the same activities differently.
Hammer (2004) defines the use of different or differentiating methodologies to perform activities as operational innovation. Chapter Two 2. 0 Scenario regarding the main topic of the report in Bangladesh Retailing is a distribution channel function where one organization buys products from supplying firms or manufactures the product themselves, and then sells these directly to consumers. A retailer is a reseller (i. e. , obtains product from one party in order to sell to another) from which a consumer purchases products.
In the majority of retail situations, the organization from which a consumer makes purchases is a reseller of products obtained from others and not the product manufacturer. As a reseller, retailers offer many benefits to suppliers and customers. Again, consumers the most important benefits relate to the ability to purchase small quantities of a wide assortment of products at prices that are considered reasonably affordable. For suppliers the most important benefits relate to offering opportunities to reach their target market, build product demand through retail promotions, and provide consumer feedback to the product marketer.
In Bangladesh, as in many other Asian countries, many small- and medium-sized businesses have been built around the retail sector and are often associated with small shops and restaurants. The retail sector provides employment for a large number of people, but it still remains relatively underdeveloped, due to a generally low level of income among the population. There are still a number of small family-run traditional shops and cafes, selling mainly locally-made products. Superstores are booming in urban areas as major players go for expansion by banking on well-heeled consumers and middle-class people, industry people said.
Retail shops have been faring well for the last two years, with the annual sales growth touching to as much as 30 per cent, they added. The sector is dominated by about 15 companies that operate 100 outlets. Of them, Agora now operates 10, Meenabazar 11, Shwapna 42, Nandan five and Prince Bazar two outlets. The annual turnover of the superstores stood at around Tk 20 billion (2000 crore) in 2010 which was Tk 15. 0 billion in 2009, according to data from Bangladesh Supermarket Owners’ Association (BSOA). Supermarket culture is growing fast creating awareness among the consumers about the features of products,” President of BSOA Niaz Rahim told the FE. This culture has established customer service in retailing and also a relation of faith among the suppliers, customers and the owners of superstores, he said. Suppliers are now well organized with their identity such as trade license, VAT registration and a mailing address, he said, adding farmers get instructions on how to grow and how to preserve the products to ensure quality.
Though the industry has passed 10 years, the main challenge is supply chain which is still far from satisfactory, Mr Rahim, who is also the group director of Rahimafrooz that operates Agora, said. “When we started, we did not grow accordingly for lack of supply chain; products didn’t arrive as there was inconsistency and damage of products,” he said. “Money can establish a shop but it is difficult to supply the products to the shelves especially the perishable items,” he said. And no such organized supply chain is yet to be developed in Bangladesh, but the retailers are trying to develop their own, he added.
ACI Logistic that started Shawpno in a large scale across the country stumbled and brought down the number of its outlets to 42 from 65, mainly due to failure in maintaining supply chain, persons familiar with the situation said. The company is now focusing on its supply chain management, they said. Shaheen Khan, head of operations of Meenabazar, said superstores are doing well in terms of expansion as major players have started adding more and more outlets over the last two years. “But the sector is still n its formative stage as the massive expansion has taken place in last two years,” Mr Khan said, adding Meenabazar has opened two new outlets and will launch three more in December in Dhaka. The company has contract farming arrangement with farmers outside Dhaka in a bid to strengthen the supply chain especially vegetables and organic products, he said, adding it also imparts training to the farmers on cultivating organic products. By year end, there will be 15 outlets of Meenabazar, he said, adding they have planned to open more than five outlets next year.
The future of the sector is promising, he said, explaining life style of urban people is changing fast with full of activity. Echoing Mr Khan, the BSOA president said the commodity prices also will stabilise within next three to five years when the supermarket culture is fully established. There will also be a big jump in internal government revenue collection, huge investment in food processing sector and most kitchen markets will come under a systematic way ensuring fair price to farmers, Mr Rahim explained.
Due to massive expansion of superstores, farmers will no more be needed to turn to the multi-stage intermediation as they will be able to establish direct linkage with the chain stores operators. “As a result, they (farmers) will no more be cheated,” Zakir Hossain, general secretary of BSOA, said. Mr Hossain lamented that they did not get the required assistance from the government, although they were paying taxes. There should be a single regulatory body to monitor the growing industry. The association will celebrate its 10th anniversary on December 17 when it will also organize a fair in the capital.
For this reason, BSOA has arranged a campaign of two months to create awareness among the consumer. In 2010 Sinha Ltd. has launched a superstore at Moammadpor. They are also trying to start new branch at Mirpur. Source: Superstore sales top 20b last year, The Financial Express, November 2011 In Bangladesh supply chain management is innovative concept. But it is must needed to reduce cost. In Bangladesh superstore concept has been increasing for last decade. In superstore fresh vegetables, meet, dairy and fruits depend on efficient supply chain.
So superstore authorities are focusing more on supply chain management because 60-70 percent sales on fruits and vegetables. In Bangladesh efficient supply chain hasn’t been establishing by many reasons, those are given bellow: • Infrastructure is mot much developed in Bangladesh. • Transportation Moods are not very good. • Don’t have qualified suppliers. • Suppliers don’t focus branding elements. • Product delivery time is high. • Too much traffic congestion. • Product waste is high. Bangladesh is developing in supply chain day by day.
Global sourcing, FDI, MSE, also play an important role for focusing on supply chain management. Most of the manufacturing and service companies are trying to create an efficient integrated supply chain system. Chapter Three 3. 0 An Overview of the Organization 3. 1 Background The concept of a self service grocery store was developed by American Entrepreneur Clarence Saunders and his Piggly Wiggly stores. His first store opened in Memphis, Tennessee, in 1916. Saunders was awarded a number of patents for the ideas he incorporated into his stores.
The stores were a financial success and Saunders began to offer to offer franchises. The Great Atlantic and Pacific Tea company was another successful early grocery store chain in Canada and United States and became common in North American cities in 1920. Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U. S. during the 1930s as no-frills retail stores offering low prices. In the 1940s and ’50s they became the major food marketing channel in the U. S. the 1950s also saw them spread through much of Europe. Their growth is part of a trend in developed countries toward reducing cost and simplifying marketing. In the 1960s supermarkets began appearing in developing countries in the Middle East, Asia, and Latin America, where they appealed to individuals who had the necessary buying power and food storage facilities. [pic] A superstore in Sweden in 1941 In the early days of retailing, all products generally were fetched by an assistant from shelves behind the merchant’s counter while customer waited in front of the counter and indicated the item they wanted.
Also most food and merchandise did not come in individual wrapped consumer sized packages, so an assistant had to measure out and wrap the precise amount desire by the consumer. This also offered opportunities for social interaction: many regarded this style of shopping as “a social occasion” and would often “pause for conversations with the staff or other customers. These practices were by nature very labor-intensive and therefore also quite expensive. The shopping process was slow, as the number of customers who could be attended to at one time was limited by the number of staff employed in the store.
In parts of South East Asia, supermarkets account for more than half of retail food sales. In China, which has relatively low per capital retail sales through modern markets, growth has still been rapid. Hypermarkets and superstores roughly grew in number from 400 in 2002 to 1,400 in 2007, and supermarkets and next door stores from roughly 3,200 to 5,200 over the same period. Source: www. planetretail. net [pic] Managing supply chain is core to a retailer’s business since one of the important value addition, a retailer does is moving the product from the point of origin or the source to the point of consumption.
There is several supply chain processes involved in this like sourcing, transportation, warehousing, inventory management, cold chain management etc. Retailers also need to take care of several other supply chain issues like which products to stock, how to price their products and how to handle the reverse logistics. Increasingly retailers are handling their inbound logistics by setting up their own distribution networks. We believe that a vital criterion for success in future would be the ability to harness worldwide distribution and logistics network for purchasing. This lobal supply chain should ensure high levels of product availability that consumers want to buy. 3. 2 Corporate Information 3. 2. 1 Company Executives Nasir-ur Rahman Sinha Chairman Mr Nasir-ur Rahman Sinha, Chairman of the The ACME Laboratories Ltd. , obtained M. A. in political science from Dhaka University in 1965 and is a pioneer manufacturing industrialist having vast entrepreneurial foresightedness of business. He is also the Chairman of “Sinha Printers Ltd” engaged as a pharmaceutical packers and printers unit. He is connected with Dhaka Stock Exchange Ltd. since 1969 and is also a member of D.
S. E. He is the Managing Director of National Equities and Financial Promoters Ltd. (Securities and Investment Advisor). He is also the Director of “Sinha Fabrics Ltd”, “Sinha Wool Wears Ltd”, ACME IT Ltd” and “The ACME Agrovet and Beverage Ltd” Mizanur Rahman Sinha Managing Director Mr. Mizanur Rahman Sinha obtained his graduation degree in Commerce in 1962. He started his career as a banker in Habib Bank Ltd. of then Pakistan. After eleven years of service in different senior positions, he left to join ACME as its Marketing Director in 1975. He is also the founder Chairman of J. K. Fashions Ltd. Sinha Knitting Ltd. and Sinha Fabrics Ltd. All companies are export-oriented in scope. Afzalur Rahman Sinha Deputy Managing Director Mr. Afzalur Rahman Sinha graduated from the University of Dhaka with a degree in Science in 1973. He then proceeded to the United States to further his studies in Business Administration in 1980. During his studies he worked as an Analytical Chemist at the University of Missouri in the United States. He then returned to Bangladesh in 1982 to join ACME as its Deputy Managing Director. He is also the Managing Director of Sinha Wool Wears Ltd. , a Director of Sinha Fabrics Ltd. nd J. K. Fashions Ltd. He was a Freedom Fighter and was active in the Southwest front during the Liberation War of Bangladesh. He is the Director of Abahani Ltd. , a leading sports club in the country. He is also the Vice President of the Bangladesh Hockey Federation and the Bangladesh Billiard & Snooker Federation. He is also the Treasurer of the Bangladesh Cricket Control Board. [pic] is a complete healthcare powerhouse committed to protecting and improving the health and well-being. She has a wide portfolio of Pharmaceutical Products across the Therapeutic Spectrum for both Human and Animal Health.
Her growing Herbal repertoire of Products are based on man’s symbiotic relationship with mother nature and her abundant resources. With the signing up with one of the leading Indian Herbal Healthcare majors, Himalaya, Acme also wants to focus more on developing safe, natural and innovative remedies that will help people lead richer and healthier lives. ACME Group is one of the leading and diversified global conglomerates in Bangladesh, with offices in all major cities, employing over 3000+ employees and dedicated to bringing the highest quality products and services to our customers.
We have an annual turnover of US $60 million with diversified interests in Pharmaceuticals, FMCG, Information Technology Services, Aviation Services, Printing & Packaging Services, Trading Services, C & F Services, Apparels and more. The conglomerate has an outstanding record of all around excellence and growth in the relevant business activities. The ACME Laboratories Ltd, the pharmaceutical major and the flagship Company of the ACME Group, is a Manufacturer and Global exporter of Human, Herbal and Veterinary Pharmaceutical products. Our comprehensive Product List ranges from Antibiotics to Histamines to Vitamins.
Certifications include: ISO 9001:2008. | | | | The Company has adopted ISO-9001 and WHO CGMP (Current Good Manufacturing Process) Standards and has been accredited with ISO-9001 certification in 1999. The entire manufacturing procedure, starting with the incoming raw materials, through stringent intermediate manufacturing process and packaging of products, to the dispatching of finished goods, requires that analysts, pharmacists and instructors monitor and control each step. Even after the release of finished goods, the quality control lab tracks post-distribution spot checks of all batches.
Acme’s Quality Assurance Department is equipped with the most modern instruments and is staffed with well trained and qualified personnel. All procedures for testing, sampling and inspecting are clearly approved, implemented and documented. All instruments are regularly calibrated and processes, machinery and premises validated. Through training programs (in-house and abroad), the key personnel of the company remain abreast of the latest concepts of Quality Assurance. 3. 3 Organization Structure The organizational structure of a retail store will vary by the size and type of the business.
Most tasks involved with operating a retail business will be the same. However, small or independent retail stores may combine many sectors together under one division, while larger stores create various divisions for each particular function along with many layers of management. For example, the small specialty shop may have all of its employees under one category called Store Operations. A large department store may have a complete staff consisting of a manager, assistant manager and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each additional department.
In order to define the store’s organization, start by specifying all tasks that need to be performed. Then divide those responsibilities among various individuals or channels. Group and classify each task into a job with a title and description. The final step is to develop an organizational chart. 3. 4 Number of Branch Sinha Ltd is one of the biggest business organizations in Bangladesh. This organization has launched their business in many sectors. Retail chain is innovative sector in Bangladesh. Sinha Ltd has launched in this sector in 2010 at Mohammadpur.
This organization is working to start a new outlet in Pollobi at Mirpur. Number of outlets: | Based on | Place of outlet | | Dhaka | Mohammadpur | | Dhaka | Pollobi | 3. 5 Number of Employees Generally 40-50 people need to run a superstore.
In recent years lot of jobs opportunities are being created both male and female. “Me and Mom” the brand name of superstore owned by Sinha Ltd. The total number of employee has been given bellow. | | n | % | |Male | 55 | 84. 62 | |Female | 10 | 15. 8 | |Total | 65 | 100 | The above table shows the number of people employed in “Me and Mom”. Its shows that out of 65 employees the number of male employee is 55 which are 84. 62% of the total employee and rest 10 (15. 38%) are female employees. 3. 6 Vision Statement Bangladesh is a highly populated country. Most of the people are poor in this country. But recent years the development of the information technology provides great opportunity for the overall development in the country.
Living standard is increasing day by day in this country. It is good news for Bangladesh. Dynamic economy creates a lot of chance to invest in efficient sectors. Retail chain is innovative sector in recent time because of low cost products and organized shopping. Sinha Ltd. has been operating there business since many years in this country. Sinha Ltd. started the new business in retail chain by the brand name of “Me and Mom”. The main vision statement is to provide the retail chain service for the middle class family permanently.
But a decade ago, the retail-level trade was in the hands of thousands of small traders in the wet markets and the grocery shops in cities and remained out of the focus of the big business houses. In the past decade, many small and big supermarkets made debut, successfully attracting middle and upper middle class consumers, a section of whom is gradually turning to chain stores from the wet or kitchen markets. The supermarket culture is playing a vital role in generating employment, with a single store providing jobs to around 50 people. Supply chain is the most important and first challenge to sustain the business and retain customer.
This organization will focus on the efficient supply chain management to operate the business by providing cheap product for the customers. “Me and Mom” will be trying to keep the agile relationship with the supplier to ensure quality product in home and abroad. For this the rural agricultural condition will be branded by the organization. Some say that the Internet will completely change the face of retailing; others believe that the ‘touch and feel’ factor would ultimately dominate and the Net will have only a marginal impact on the shopping behavior.
Probably the truth lies somewhere in between. But one thing is sure – online retailing is here to stay. Many retailers realized that and have rushed to start their own e commerce web site. We believe that the key to success would be the effectiveness with which retailers integrate the Internet with their existing business model. 3. 7 Mission Statement Generally efficient superstore based on real time customer demands. So a superstore tries to provide fresh and quality products for their customers. The main missions of “Me and Mom” are given bellow. pic] |1 |Offering a clean healthy and a friendly environment for shopping. | | 2 |To give customer confidence and establish an environment of trust. | | 3 |Offer better range of quality products. | |4 |Establish rational and low price. | |5 |Encourage products standard and quality products, or better price. | |6 |Improve product packaging and presentation. | |7 |Contribute improving living standard. | |8 |Thinking ahead and taking new initiatives. | Missions of “Me and Mom” 3. 8 Products of “Me and Mom” Me and Mom” typically sells many different types of items, such as: | |[pic] |[pic] |[pic] | | | | | | |Beverage | | | | | | | | | |Products | | | | | | | | | |Baby [pic] | [pic] | [pic] | |foods | | | | |and products | | | | | |[pic] |[pic] |[pic] | | | | | | |Bakery | | | | |Books |[pic] |[pic] |[pic] | |Newspapers and | | | | |Magazines | | | | |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] | | | | | | |Fresh | | | | | | | | | |Vegetables | | | | | |[pic] |[pic] |[pic] | | | | | | |Fresh | | | | | | | | |Fishes | | | | | | | | | | |[pic] |[pic] |[pic] | | | | | | |Fresh | | | | | | | | | |Meats | | | | |Local |[pic] |[pic] | [pic] | |Fruits | | | | |And | | | | |Jelly | | | | |[pic] |[pic] |[pic] |[pic] | 3. 9 Principal Activities: • Identifying the customer demand • Getting real time information • Appropriate forecasting for customer demand • Understanding consumer behavior • Increasing customer satisfaction level • Increasing product assortment Maintaining food safety 3. 10 SWOT Analysis SWOT analysis is strategic planning method. It is also a tool that is extremely useful for evaluating different business situation like strength, weakness, opportunity, and threats. The word SWOT is basically acronym of these four situations of business venture. SWOT analysis provides a perfect framework to evaluate strategy, position and direction of a company. It is very simple to do and is also very useful in brainstorming meetings where business management need to deeply consider the requirements of the business and SWOT analysis provides the best way to do so. S= STRENGTH W= WEAKNESS O= OPPORTUNITY T= THREATS | STRENGTH | | WEAKNESS | | |Discount grocery market | |Wastages and damage products | | |Innovative marketing | |Lack of real time information | | |Diversification into the holiday market | |Maximum butterfly customers | | |Efficient supply chain management | |Small parking place | | |Fresh and quality products | |Non brand suppliers | | |Agile relationship with supplier | |Poor marketing | | |Reputed brand name | |Lack of advertising | | |Product assortment | | | | | | | | | | OPPORTUNITY | | THREATS | |Increasing customer satisfaction level | |New rivals | | |Creating good facilities for middle class family | |Political uncertainty | | |To increase number of outlet around the city | |Infrastructure problem | | |To reach good position against rivals | |Transportation problem | | |Efficient global supply chain | |Traffic jam | | |Modern information technology | |Electricity problem | | |Increasing customers living standard | |Local markets | | | | |High fuel cost | SWOT Analysis of “Me and Mom” SWOT analysis is the best way to identify the internal and external factors that may be favorable or unfavorable for the organizations.
After doing SWOT analysis we can get the real condition of the company and also can take the proper steps to control the situation or improve the present condition. Most of the organization uses this model to increase performance level by taking efficient steps and recommendation the present strategies. 3. 11 Action Plan for “Me and Mom” The combination of quality and price under various brand name offers customers value for their money. I have examined and evaluated the operations of Sinha Ltd, including its strengths and weaknesses. I recommend the following in order to ensure continued success for the future of all Marks and Spencer stores: 1. Find alternative sources to supply resources to Marks and Spencer stores abroad. 2. Increase marketing efforts. 3.
Strengthen existing resources, add complementary resources, and develop new resources. 4. Evaluation of Current Objectives and Current Strategy Chapter Four 4. 0 Practical Experiences gathered through doing research works in an organization Sinha Ltd is a big group of company in our country. They are doing business in many sectors. I have gathered some practical experience in this organization. These are given bellow: • I have understood how this organization work and do main function to fulfill their objects after doing my research. • Every organization has a working system. “Me and Mom” also have a working system. I have shown it in chapter five. I am able to understand the process of activity and how it helps to earn maximum profit with efficient supply chain. • A good strategy can help a organization to survive with competitor. I have also gathered the fundamental knowledge about main strategy of “Me and Mom”. • Every organization follows a systematic customer policy by the reason for increasing customer satisfaction. I have understand how this organization fit there customer policies. • Information system is heart of an organization. Communication system, interpersonal relationship also depends on information system. I have known how communication system helps the organization to make decision. Departmental process can help a superstore to decorate the products speciously for the customers. It has helped me to understand departmentalization and department based procurement, merchandiser role etc. • Control system is very much important for a superstore. If I don’t maintain a control system product will be damaged. Now I am able to discuss how a superstore maintains a control system to utilize their all elements. • Security system is one of the biggest challenges for a superstore. They try to follow traditional system to maintain their security. Chapter Five 5. 0 Findings and Analysis regarding the objectives of the study including problems identified
Last one decade has seen the phenomenal rise of the ‘Chain of superstores’ in our country. Growing consolidation and globalization in the sector has seen the bargaining power of the retailer increase in the supply chain. We believe that in order to counter saturated domestic markets and increasing competition, leading superstores would continue to expand globally. Increasingly retailers are handling their inbound logistics by setting up their own distribution networks. We believe that a vital criterion for success in future would be the ability to harness worldwide distribution and logistics network for purchasing. This global supply chain should ensure high levels of product availability that consumers want to buy.
Supply chain management (SCM) promises unprecedented efficiencies in inventory control and procurement to the retailers. With cash registers equipped with bar-code scanners, retailers can now automatically manage the flow of products and transmit stock replenishment orders to the vendors. The data collected for this purpose can provide deep insights into the dynamics of the supply chain. However, most of the commercial SCM applications provide only transaction-based functionality for inventory management and procurement; they lack sophisticated analytical capabilities required to provide an integrated view of the supply chain. This is where data warehousing can provide critical information to help managers streamline their supply chain.
Some of the applications of BI in supply chain management and procurement are: Vendor Performance Analysis: Performance of each vendor can be analyzed on the basis of a number of factors like cost, delivery time, quality of products delivered, payment lead time, etc. In addition to this, the role of suppliers in specific product outages can be critically analyzed. Inventory Control (Inventory levels, safety stock, lot size, and lead time analysis): Both current and historic reports on key inventory indicators like inventory levels, lot size, etc. can be generated from the data warehouse, thereby helping in both operational and strategic decisions relating to the inventory.
Product Movement and the Supply Chain: Some products move much faster off the shelf than others. On-time replenishment orders are very critical for these products. Analyzing the movement of specific products – using BI tools – can help in predicting when there will be need for re-order. Demand Forecasting: It is one of the key applications of data mining. Complex demand forecasting models can be created using a number of factors like sales figures, basic economic indicators, environmental conditions, etc. If correctly implemented, a data warehouse can significantly help in improving the retailer relations with suppliers and can complement the existing SCM application. Enterprise |Human |Finance and Fixed Asset | |Management |Resource |Management | | |Management | | Customer Relationship Management Customer Value |Supply Chain Management and |Store Front |Alternative Sales Channel | |Procurement |Operation | | Function of a superstore 5. 1 Retail Supply Chain Elements Supply chain management is very important for a superstore because of customer satisfaction.
Customer wants fresh and quality products basically vegetables and meats. An efficient supply chain can ensure to provide quality food for the customers to keep agile relationship with suppliers. In this part I will show how supply chain management engage with a superstore to provide quality products and identify major challenging element. Retail Supply Chain has four parts. These are given bellow: |Merchandise Management processes
Supply Chain Management Critical Essay