1. Faculty of Business Administration
AMERICAN INTERNATIONAL UNIVERSITY–BANGLADESH
(AIUB)
INTERNSHIP AFFILIATION REPORT ON
Understanding the Supply Chain Management and its
Process of ACI Logistics Ltd. (Shwapno)
An Internship Report Presented to the Faculty of Business Administration in
Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration (MBA)
Supervised By
M.M. Obaidul Islam
Sr. Assistant Professor
Submitted By
Shuvro Shubhashis Gupta
ID# 14-97375-1
Operations Management
Date of Submission: August 6, 2015
2. INTERNSHIP AFFILIATION REPORT ON
Understanding the Supply Chain Management and its
Process of ACI Logistics Ltd. (Shwapno)
3. Letter of Endorsement
The Internship Affiliation Report entitled “Understanding the Supply Chain
Management and its process of ACI Logistics Ltd. (Shwapno)” has been
submitted to the Office of Placement & Alumni, in partial fulfillment of the
requirements for the degree of Master of Business Administration (MBA),
Major in Operations Management, Faculty of Business Administration on
June 30, 2015 By Mr.Shuvro Shubhashis Gupta, ID#14-9737-1. The report
has been accepted and may be presented to the Internship Defense
Committee for evaluation.
(Any opinions, suggestions made in this report are entirely that of the author
of the report. The University does not condone nor reject any of these
opinions or suggestions).
M.M. Obaidul Islam
Internship Supervisor
4. APPROVAL SHEET
This Internship Affiliation Report entitled: “Understanding the Supply Chain
Management and its process of ACI Logistics Ltd. (Shwapno)” in partial
fulfillment of the requirements for the degree of Master of Business
Administration has been evaluated by a Panel of Examiners with a mark
of_______________.
_________________________
Member
Defense Panel
________________________
Chairman
Defense Panel
_____________________
Faculty Supervisor
The Internship Defense was conducted on ____________at the American
International University-Bangladesh, Dhaka, Bangladesh.
5. 06 August, 2015
Mr. Roome Tareque Moudud
Director, Office of Placement & Alumni (OPA)
American International University-Bangladesh (AIUB)
Dhaka
Subject: Submission of Internship Report on “Understanding the Supply Chain
Management and its Process of ACI Logistics Ltd. (Shwapno)”.
Dear Sir,
With due respect I would like to inform you that I have completed my internship report on
“Understanding the Supply Chain Management and its Process of ACI Logistics Ltd.
(Shwapno)” under the supervision of Mr. M.M Obaidul Islam, Sr. Assistant Professor,
Faculty of Business Administration. This report is based on the knowledge, experience, and
the skills that I have acquired during my period of internship in ACI Logistics ltd.
I have focused uncompromisingly to achieve the objectives of the study and hope that my
effort will serve the purpose. The practical knowledge and experience gathered during report
preparation will infinitely help in my future professional life.
I requested you to accept the report and forward this for further evaluation.
Sincerely,
Shuvro Shubhashis Gupta
ID: 14-97375-1
Major: Operations Management
American International University-Bangladesh (AIUB)
6. APPROVAL SHEET
This Internship Affiliation Report entitled “Understanding the Supply Chain Management
and its Process of ACI Logistics Ltd. (Shwapno)” has been submitted by Shuvro
Shubhashis Gupta, Student ID 14-97375-1, major in Operations Management, in partial
fulfillment of the requirements for the degree of Master of Business Administration has
been evaluated and approved by the following Panel of Examiners.
Member
Defense Panel
Chairman
Defense Panel
Faculty Supervisor
…………………………………………………………………………………………………..
For Official use only
Board:
Chairman
Member
7. Acknowledgements
At the exceedingly beginning I would like to convey my cordial gratitude to almighty for
giving me the strength and the self-possession to terminate the assigned job within the
schedule time.
I would like to reimburse my profound respect to my supervisor M.M. Obaidul Islam, Sr.
Assistant Professor, Faculty of Business Administration, American International University-
Bangladesh, due to his generous and gracious guidance. I am also grateful to him for helping
me to understand some miniature issues as well as those issues, which I have failed to
understand during the preparation of the report.
At the same time I also pay my heartily gratitude to Mr. Tamal Paul, Manager: Supply Chain
& Inventory Control, Md. Nasirul Kabir, Senior Outlet Operation Manager, Mohammad
Arifur Rahman, Senior Executive, Supply Chain Planning, and Benedic Anthony, Executive,
Supply Chain Planning of ACI Logistics Ltd. (Shwapno), who‟s are extended their helping
hands by showing the right and effected path to me and by motivating me to implement my
theoretical knowledge in a real life corporate settings.
Finally, I give my especial thanks to, ACI Logistics Ltd, who has given me a fastidious
prospect to do internship in their organization. Furthermore I wish to thank all staffs due to
their all friendly supports to complete the report. I gratefully acknowledge those helpful
persons, without them I cannot prepare this report effectively.
My love and appreciation to my family and all of my friends who have helped and supported
me all the way, while doing the report.
8. Executive Summary
The supply chain activities of ACI Logistics Ltd. (Shawpno) and their constraints are
presented in this report. Further recommendations are provided.
The ultimate objective of ACI Logistics Ltd. (Shwapno) is to ensure access to a broader range
of people of Bangladesh. It has a special focus to serve the different income groups of the
customers by providing the better services that are convenient, affordable and reliable.
The report is containing a comparison between assigned tasks and academic preparation. It is
observed that almost all tools what we have learnt in supply chain management course are
well fitted with the supply chain activities of Shwapno.
In summary it is observed that Supply Chain activities of Shwapno add some value to
contribute in this company. They are looking forward to increase their employee‟s workload
efficiency, to ensure better customer satisfaction. Shwapno is trying to maintain their supply
chain process in a very accurate way. It is observed that shorter inventory also helps to reduce
the product storing cost of Shwapno.
Finally it could be said that Shwapno has already built brand equity among its customer but
the only threats of Shwapno dominance in future will come from foreign retailers trying to
encroach on the Bangladeshi market.
9. Table of Contents
Acknowledgement……………………………………………………………………………i
Executive Summary…………….…………………………………………………………….ii
Table of Contents……………………………………………...…………………………….iii
Chapter 1: Introduction
1.1 Rationale:………………..........................................................................................1
1.2 Objectives.………………… ……………………...................................................1
1.3 Background.………… ……………………………............................................2-4
Chapter 2: Activities Undertaken
2.1 Work-related Activities.......................................................................................5-11
2.1.1 Workload Efficiency…………………………………………………..9
2.2 Other Relevant Activities.…………….............................................................12-13
Chapter 3: Constraints/ Challenges
3.1 Identified/ Observed in the organization................................................................14
3.2 Academic Preparation.......................................................................................14-16
3.3 Missing Knowledge................................................................................................16
Chapter 4: Lessons Learned from the Internship Program
4.1 Lesson Learned from the Internship Program.………… ……………..…............17
Chapter 5: Concluding Statements
5.1 Recapitulation/Summary........................................................................................18
5.2 Suggestions addressing the challenges identified..................................................19
References...............................................................................................................................20
Appendix…………………………………...………………………...…………………….iv-v
11. 1.1 Rationale:
Theoretical knowledge is not always sufficient because there is a gap between theoretical
knowledge and practical work. This internship program has been initiated mainly to minimize
the gap. So this practical experience on various activities and functions of supply chain
management at “ACI Logistics Ltd (Shwapno)” will help me in future by increasing my
knowledge and experience.
The core inspiration to selecting this as my affiliation topic is, this will allow me to explore
my area of interests and apply my academic knowledge of MBA program side by side. Doing
internship in Shwapno is a great opportunity to have an overall idea about operations
management. Having practical experience in retail chain industry also should be proved as
helpful for any kind of job. This will help me better understand the implication of theoretical
knowledge in real life situation.
1.2 Objectives:
ACI Logistics Ltd. (Shwapno)‟s Supply Chain Process consists of a series of interdependent
steps and starts with the collection of raw materials and ends with different business unit's
inventory. The Supply Chain Management at “ACI Logistics Ltd. (Shwapno)” ensures that
appropriate quality standards are maintained at each segment. On the basis of this, the
objective of the report is:
“To pin-point about the process and steps of Supply Chain Management at ACI
Logistics Ltd. (Shwapno)”
The report will reach its objective by achieving the following sub-objectives:
To understand the supply of materials or goods and its process.
To understand the delivery & receiving process.
To understand the outlet product maintenance and selling.
To understand the customer‟s satisfaction.
To assess the workload efficiency.
12. 1.3 Background:
ACI Logistics Limited was formed in 2008 with a vision to setup nationwide retail outlets,
named “Shwapno”, to utilize ACI‟s strong presence in Bangladesh. Advanced Chemical
Industries (ACI) Ltd, former ICI PlcUk, began its journey in 1992 with the mission of
enriching the quality of life through responsible application of knowledge, skills and
technology, and has successfully established itself as one of the biggest conglomerates in
Bangladesh. ACI began its journey to ensure better life to the Bangladeshi people with the
name of ICI (Imperial Chemical Industries) in 1968 in Bangladesh by offering a wide range
of such products as pharmaceutical, Consumer product, and so forth. However, ICI divested
into ACI (Advanced Chemical Industries) by selling its share to local management, and
named by ACI in 1992.ACI Logistics Limited was formed in 2008 with a vision to setup
nationwide retail outlets, named “Shwapno”, to utilize ACI‟s strong presence in Bangladesh
through implementation of world-class supply chain mechanism. Compare to other
organization that is involve with retail chain business, ACI Logistic Ltd. (Shwapno) is the
first position in every aspect. Shwapno has 47 outlets all over Bangladesh, and day by day the
no. of outlets is increasing. Market share of Shwapno is 35% in modern retail system. The
biggest advantage of Shwapno is that, different age and different income group is the target
people of Shwapno that is main uniqueness as Shwapno.
Vision
Shwapno was launched with a vision to change the lifestyle of Bangladeshi consumers.
Values
“To deliver success we have a clear set of values & beliefs.”
Impeccable integrity - We are honest, transparent and ethical in all our dealings.
Passion to win - We deliver what we promise by bringing the best in all of us
Delightful experience -We win the hearts and minds of our employees and consumers by
offering relevant quality, value and service.
Living an enterprise culture - We believe in trust, truth and teamwork
Making a better world - We compassionately contribute to the community we live in
Continuous improvement - We constantly learn and innovate to create new paradigm
Count every paisa - We treat every taka spent as our own for creating value for our
consumers
13. The organizational structure of Shwapno‟s head office and outlets are different.
The organizational structure of ACI Logistics Ltd. (Shwapno)‟s Head Office is shown in the
following figure (1.1):
Fig 1.1: The organizational structure of ACI Logistics Ltd. (Shwapno)‟s Head Office.
The organizational structure of ACI Logistics Ltd. (Shwapno)‟s outlet is shown in the
following figure (1.2):
Executive Director
Head of Supply Chain
(Planning & Buying)
Head of Supply Chain
(Category & NFD)
Cheif of Operation
Manager
(Supply Chain, finance,
HR, Marketing)
Asst. Manager
(Supply Chain, finance,
HR, Marketing)
Senior Executive
(Supply Chain, finance,
HR, Marketing)
Executive
(Supply Chain, finance,
HR, Marketing)
14. Fig 1.2: The organizational structure of ACI Logistics Ltd. (Shwapno)‟s outlet.
Outlet Operation Manager
(OOM)
Inventory & Cash Management
Officer (ICMO)
Assistant Operation Manager
(AOM)
Executives
VFMG, CG, NFD
Service Assistant
&
Butcher
Porter
Security
Back Store Manager
(BSM)
Loader
POS (Point of Sale)
Agent
16. 2.1 Activities Undertaken (Work-Related)
A supply chain is a system containing organizations, people, technology, activities,
information and resources involved in moving a product or service from supplier to customer.
Supply chain activities transform resources, raw materials and components into a finished
product which is delivered to the end customer. As a large company with retail chain
operations, Shwapno needs an effective and efficient supply of products. To ensure free flow
of supply and demand to achieve the optimal point of customer satisfaction, supply chain
management department of Shwapno trying their best to maintain proper supply of product to
different outlets. The activities of the supply chain management department are divided into
three parts, such as:
A. Head office
B. Distribution Centre
C. Outlets
Operations of Head Office: Supply Chain Management Unit of Head Office, generally
purchase the products of different categories from the local market and suppliers. Here is the
list of some local items for purchasing:
1. Baby Food 7. Home Care
2. Baby Care 8.Home made
3. Beverage 9.Commodities
4. Dairy Item 10.Perishables
5. Kitchen Items 11.protien Items
6. Packaged Food 12.NFD (Non Food goods)
Supply Chain Planning Team gives the purchase requisition (PR) to supply chain buying
team. After receiving the purchase requisition (PR), supply chain buying team converting the
purchase requisition (PR) into purchase order (PO). Then the buying team deal with different
vendors with different categories of products. They deal & fixed their profit margin. Then
they buy their product and store it to their own distribution center. These steps are shown in
the following figure (Fig. 2.1):
17. Fig 2.1: Head Office Tasks
Whereas Shwapno deals with different category of products, they don‟t store protein &
perishable items in their distribution center. They directly delivered this type of product into
their outlet from local market & suppliers end.
This is the first phase of supply chain management unit in head office. After storing product
in distribution center supply chain planning team again distribute these into their all outlets
depends on their demands. Supply Chain Planning team calculate every outlets average sells,
outlet demands, special demand, categorized first moving & slow moving items, then they
allocate it for outlets. They called it STO (Stock Transfer Order). All these activities are done
by SAP software.
Operations of Distribution Center: Distribution center are the foundation of a supply chain
network, as they allow a single location to stock a vast number of products. It‟s used for
product receipt, temporary storage, and redistribution of goods according to the STO (Stock
Transfer Order). Shwapno‟s distribution center is customer focused, relationship-centric and
technology-driven. They follow a total supply chain process in their work. They divide their
work into three parts. These are as follows:
Product Receiving
Product Storing
Product Delivery
Product Receiving: According to purchase order (PO) distribution center receives products
from the suppliers. A manual database is maintained to collect the relevant information of the
Step 1
• Purchase Requisition (PR) by Planning Team
Step 2
• Purchase Order (PO) by Buying Team
Step 3
• Buying Team deals with vendors with diffenrent products
Step 4
• Fixed their profit margin
Step 5
• Buy the produc & store it to Distribution Center (DC)
18. products. This includes serial number, product type and receiving time. The product‟s
detail‟s, product‟s quality, shelf life (expiry date) are also need to be checked. However, if
any product does not match with the purchase order (PO) quantity then the product is
rejected. In Addition the barcode is attached with individual product. This barcode helps to
detect the product & further process with its unique code. Finally receiving product GRN
(Good Receipt Note) need to be made into SAP and provide copy to the vendor. These steps
are shown in the following figure (Fig. 2.2):
Fig 2.2: Product receiving for Distribution Center
Product Storing: After receiving product, distribution center store the product until they get
the further instructions to deliver it to outlets. At first they categorized product then they store
it to different gondola. Gondola is a freestanding shelf used by retailers to display product.
However if any product get damaged or expired then distribution center return it to vendor.
They called it Return to Vendor (RTV).
Product Delivery: Product delivery initiation starts from both head office & outlets. At first
outlets give the product requisition according to their sales to head office planning team.
Then head office planning team calculate individual outlet‟s previous sales with product
forecasting formula, EOQ (economic order quantity), MOQ (minimum order quantity) &
Zero stock calculation. After all calculation, they compile it and make individual STO (Stock
Transfer Order) for individual outlet and sent it to Distribution Center (DC). The compilation
is done by using the SAP Software. After compilation product picking is done according to
STO. Product picking follow FIFO (First in First Out) rule. These steps are shown in the
following figure (Fig. 2.3):
Step 1
• After arrival
the products
from the
distribution
center need to
check the
product's
quality,
quantity and
shelf life
Step 2
• If fullfilled
the
requirements,
then receive
the product
Step 3
• Cross check
with Purchase
Order (PO),
products need
to be received
and paste
Barcode
Step 4
• After
receiving
product GRN
need to be
made into
SAP and
provide a
copy to the
vendor
19. Fig 2.3: Product Delivery to Outlets from Distribution Center (DC)
Operations of Outlet: Outlet‟s activity can be dividing into three parts.
Outlet opening
Outlet running
Outlet Closing
Outlet Opening: Outlet‟s activity start‟s from outlet opening. At first product is being
received. After product receiving, the products need to be updated in delivery note wise
“material in register”. Products also need to be cross checked with STO & Delivery Note.
The products need to be stored in back store. When receiving is complete then GRN (Good
Receive Note) is needed to be made in SAP software. Also need to do TPN (Transfer Posting
Note) for extra and less quantity, Post GRN in SAP & EPS Mirror software. When all these
activities are complete then products are need to be refill and replenish. Fish and meat items
need to be processed and decorate. Formalin and freshness check list need to be updated also.
When all these procedures are done then outlet is open to serve the customer and daily
transaction. These steps are shown in the following figure (Fig. 2.4):
Step1 Outlets give
Products
requisition to
Head office
Planning Team
Step2
Head Office
Planning Team
make STO
(Stock Transfer
Order)
Step3
Took the product
according to
STO
Step4
products
delivered to the
outlet
20. Fig 2.4: Outlet Opening Operation
Before closing the operation of the outlet PO, STO need to be generated through SAP and
send to the Head Office (HO) and also Closing Report, PNL Report, DSAR Report,
Consumable Status Report need to be mailed in Head Office (HO).
2.1.1 Workload Efficiency: During the internship program, it is observed that workload
efficiency of shwapno is varying from different designated employee to employee. It related
with designated employees weekly working hour and duty time. Workload efficiency gives
the ideas about number of employees are right or not. In some places numbers of employees
are more than required. As a result, I try to assess the workload efficiency. This is given in
the table (table 2.1) and presented in the following graph (Fig. 2.5) for further references.
Step 5
Outlet open for daily transactions.
Step 4
Product refill and replish in front store gondola.
Step 3
Meat & Fish need to processed and decorate it.
Step 2
Receive Products.
Step 1
Outlet Open for operation.
21. Serial Designation
Total
Man
Hour
Weekly
Duty time/
Designation
(in Hour)
Total
HR
Total
Time
Available
(in Hour)
Total
Workload
Efficiency
1 OOM/AOM 65.73 72 2 144 46%
2 ICMO 30.93 72 1 72 43%
3 BSM 82.72 96 2 192 43%
4 VFMG Executive 58.38 72 1 72 81%
5 CG Executive 54.00 72 1 72 75%
6 NFD Executive 4.84 72 1 72 7%
7
VFMG Service
Assistant 488.97 96 6 576 85%
8 CG Service Assistant 288.73 96 4 384 75%
9
NFD Service
Assistant 103.29 72 2 144 72%
10 POS Agent 231.33 78 4 312 74%
11 Butcher 282.79 96 7 672 42%
12 Cleaner 256.25 72 6 432 59%
13 Security 164.68 96 4 384 43%
14 Porter 104.56 72 2 144 73%
15
Loader/Back store
SA 102.91 72 2 144 71%
Table 2.1: Calculation of workload Efficeiency
22. Fig 2.5: Total Workload Efficiency
In summary it is observed that workload of Shwapno is very high for every employee. Most
of the employees are busy with various types of operations. It‟s a recommendation that job
rotation or job simplification can help higher workload efficient employee to work faster and
job addition will be applied for those workload efficient are not up to the mark. To ensure
customer satisfaction Shwapno need to build up an efficient workload for every employee. It
helps Shwapno to run their supply chain process in a much unimpeded way.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
46% 43% 43%
81%
75%
7%
85%
75%
72% 74%
42%
59%
43%
73% 71%
Total Workload Efficeiency
23. 2.2 Activities Undertaken (Other Relevant Activities)
For Perishables & Protein Items buying & distribution procedure or steps are different.
Buying procedure also done by Head Office Supply Chain Buying Team. Buying Teams are
mainly buy three types of products. They are:
Fruit, Fish & Vegetable
Meat
Fruit, Fish & Vegetable: Fruit & vegetable items are buying from local market (e.g. Karwan
Bazar). Buying team get the product demand list from all outlets and then they make a central
demand list and then everyday night around 12 A.M. whole buying team going to choose and
buying the product. At first they divide into several groups and then choose product,
negotiation with suppliers for pricing, if okay then quality team check products quality (e.g.:
freshness, damage, spot, color, size & abnormality). Those are not meeting the requirements
they reject them. These processes also called product sorting. After sorting product they give
the money to sellers. Then they weight the product and handover it to distribution team.
Distribution team again divides the products for delivering the respective outlet. These steps
are shown in the following figure (Fig. 2.6):
Fig. 2.6: Buying Procedure (Fruit, Fish & Vegetable)
Meat: For buying meat they follow totally different process. They have different suppliers for
beef, chicken & mutton. Form the outlet demand list buying team makes a central demand
Make central
demand list on
outlet's product
demand
Step 1 Buying team
choose the
product,
negotiation
with supplers
if okay then
Quality
Assurance
Team check
the product
quality & sort
the product
Step 2
After sorting,
buying team
buy the
product then
re-arrenage for
delivering the
respective
outlet
Step 3
24. list, and then send it to suppliers. Suppliers sent the products “Slaughtering point”, quality
supervisor also check the product if okay then they give the permission to process the
product. After processing, they ensuring quality (fat trimming) & handover it to distribution
team, they organize the product outlet wise and then sent it to outlet. Buying team makes
payment requisition form, GRN and invoice against the product. These steps are shown in the
following figure (Fig. 2.7):
Fig. 2.7: Buying Procedure (Meat)
Step 1
• Make central demand list on outlet's STO & Handover it
to Suppliers
Step 2
• Supplier choose the product and bring it to slaughtering
point
Step 3
• Buying team choose the product, negotiation with
supplers if okay then took the product
Step 4
• After checking they process the product and ensuring
quality(fat tirmming) & handover it to distribution team
they organize thw product according to STO & sent it to
outlet
26. 3.1 Identified/Observed in the Organization
Though the supply chain management of Shwapno is very much smooth but they also have
some constraints. These are explained below -
There are internal communication gaps among different departments. This hampers
the workflow. Also creates delay in the product movement.
Flow of work or work process is not properly integrated because of improper time
management. This impact on customer‟s satisfaction level.
Product demand and forecasting values estimate are not accurate sometimes.
Sometimes it lies between 2% - 3% as a result there is a variance between demand
and supply of products.
Sometimes vendors are not able to deliver required amount of products so that
customers are not getting availability of products and they move to other shop.
Loading and unloading of products takes time which may sometimes create clash in
schedule delivery.
Shwapno add VAT (value added tax) to their company goods products but some
customers are not willing to pay the amount so they are not comfortable to shoping
from Shwapno.
The implementation and complication of decision is very lengthy. If a decision is
made, then for the approval it has to sign by decision maker of all departments which
is a very time consuming. For this reason smooth product movement is hampered.
3.2 Academic Preparation
In my education life or student life I have acquired many skills, knowledge, experiences
which have given me ideas about the theoretical knowledge in different subjects. However
there are some similarities and dissimilarities between theoretical and practical knowledge.
These similarities/dissimilarities are explained below:
In our academic courses we know that there is some external information flowing to
purchasing. These are product information, new product information, transportation
availability, transportation rates, price and discounts, sales and use taxes, labor
condition, supplier production rates, supplier‟s capacity, source of supply, general
market condition. All of these steps are followed by shwapno to buy a product.
27. One of the important logistical objectives is to seek continuous quality improvement.
Total Quality Management (TQM) has become a major commitment throughout all
facets of industry. Logistics itself must perform to demanding quality standards. The
management challenge of archiving zero defect logistical performance is magnified
by the face that logistical performance is magnified by the fact that logistical
operations typically must be performed across a vast geographical area at all times of
the day and night. Logistics is a prime part of developing and maintaining continuous
TQM improvement. ACI Logistics Ltd. (Shwapno) tries to follow TQM and I found
TQM tools are well fitted with activities of Shwapno. More specifically Shwapno‟s
main purpose is to deliver zero defects products to its customer that‟s why Shwapno
try to maintain quality in their whole supply chain process.
The knowledge from the project management was helpful to coordinate different
activities of supply chain planning department of Shwapno. When they start a new
project they do project charter, project scope, and status report.
From Decisions Model course I have learnt the knowledge how to take an effective
decision for ACI Logistics Ltd. (Shwapno) and it also helped me to understand how
Shwapno provide quality customer service.
For planning to distribute the products they follow Material Resource Planning
(MRP) and calculating lead-time. These two things I learnt in supply chain
management course.
The knowledge from operations management (OM) was helpful to understand
bullwhip effect, inventory, transportation and sourcing. Shwapno have the bullwhip
effect in the product estimations. Sometimes it have been seen that product surplus
have been made for this bullwhip effect. For transportation, inventory and sorucing
shwapno doing exactly what we learned in the OM course.
In my academic preparation I have learned a lot about Forecasting and Forecasting
Technique, Capacity Planning, EOQ, MOQ, Inventory Control, etc. I found all of
those using by ACI Logistics Ltd. (Shwapno). For product delivery Shwapno follow
these tools seriously.
Proper documentation that I learned from my internship is one of the most important
parts of a job which was not included in the academic curriculum.
Sometime it was difficult to identify the code words which were used by the
employees but from time to time I have learned all the words that are generally used
in supply chain management department. It was not part of our curriculum.
28. 3.3 Missing Knowledge
ACI Logistics Ltd. (Shwapno) is using SAP software for all operational activities. It is
not included in our course curriculum. SAP is very useful software for operations of
any retail industries so if it‟s to be learned or included in our curriculum then it helps
us to be a future professional.
In our class we are not used to with MS Excel, but in the organizations it is very
essential for doing all basic office works.
30. 4.1 Lessons learned from the Internship Program
Develop Skills: ACI Logistics Ltd. (Shwapno) using SAP software for all types of working
activities. It‟s totally new for me. I have learnt so many features and usages of SAP. Also
learnt about MS excel to make pivot chart, pivot table, lookups, short techniques to put ups
different equations, easiest way for doing forecasting calculation.
Performance Orientation: Shwapno has taught me the benefit of powerful and efficient
performance and how it has an impact in our life. Performance-drive can lead a person from
zero to the peak of his/her career. True dedication towards work and positive mindset
regarding achieving the given task can help an employee to reach the success. Shwapno try to
ensure the performance in every sector of their supply chain. It is only possible because of the
handwork and true dedication of every employee.
Corporate Culture: „Shwapno‟ have taught me how to interact with assorted genres of
people and how to make a good relationship with them. „Shwapno‟ is the place where
employees are not colleagues of each other; rather they are a part of a big family. All member
of „Shwapno‟ family take a good care of each other. The Corporate Culture of „Shwapno‟ is
friendly, flexible, spontaneous and worthy of adopting in our daily life. It helps me a lot when
I involved in a permanent job.
Team Bonding: This internship program helps me to understand how to develop the strong
relationship with other collogues and different departments.
32. 5.1 Recapitulation /Summary
The main objective of this study is to understanding the supply chain processof an retail
industry with particular reference to Shwapno. This internship program helps me to
understand the real life work environment with retail industry.
As a large industry with retail chain operations, Shwapno needs an effective and efficient
supply of products. To ensure free flow of supply and demand to achieve the optimal point of
customer satisfaction, supply chain management departments are trying their best to maintain
proper supply of product to different outlets. Head office maintains proper documentation
and create purchase order, purchase requisition, stock transfer order. Distribution center order
the product according with stock keeping unit of purchase order then redistribute it to
different outlets.
The organizational structure of Shwapno is conventional. One of the advantages Shwapno
has over its competitors is the procurement department which is responsible for directly
sourcing vegetables, meat, fruit and grains directly from wholesale markets. Other
participants in the market rely on vendors for fresh produce requirements, which make
quality control extremely difficult.
Though the supply chain management of Shwapno is very much smooth but they also have
some constraints. They have lack of work process for improper time skill management,
varience between supply and demand of products. On the other hand, I found their supply
chain management is more consistent with my academic preparation which helps me to
understand Shwapno‟s activity.
If Shwapno is able to overcome their constraints which are mentioned in this report with
recommendations, there is no doubt that within a short period time, the company will have
insurmountable advantages in the market. The only threats to „Shwapno‟ dominance in the
future will come from foreign retailers trying to encroach on the Bangladeshi market.
33. 5.2 Suggestions addressing the challenges identified
Need to emphasis on the economic order quantity (EOQ) model because it was seen
to be in the best interest of logistics companies to maintain an optimal level of
products in outlets, the level that minimizes total cost in inventory and avoid damage.
Flow of work can be improved by following proper time management. This will help
to increase the customer satisfaction level.
Trying to reduce the impact of bullwhip effect, so that the accuracy of product
forecasting and demand can be increased more.
Loading and unloading time can be decrease by involving more employees or using
better techniques. This will help to ensure the scheduled delivery.
The communication gap between different departments of ACI Logistics Ltd.
(Shwapno) should be removed and should establish a strong immediate response
system. This will help Shwapno to perform better.
It is very important to taking decision within very shortest possible of time. It helps to
increase the product movement rate. On this regard they can implement online DSS.
Some outlet‟s lower level employee is not so productive with their assigned work.
Training and some motivational program might improve their productivity.
The customized calculation techniques of Excel need to be modified into proper
statistical forecasting tools to minimize the overall variance of demand and supply.
