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Supply chain management of Shwapno
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Executive Summary
ACI group is one of the largest conglomerates in the country with businesses in pharmaceuticals,
agriculture, consumer products etc. However, SHWAPNO is a business unit of ACI logistics.
SHWAPNO is the largest retail company in Bangladesh currently holding a share of 35% of the
retail industry. Inaugurated in 2008, SHWAPNO now has over 46 outlets and 1600 employees
spread across the country.
SHWAPNO enjoys a higher amount of market share than its competitors such as Agora and
Meena bazaar. Agora and Meena Bazar entered this industry earlier mostly because of visionary
leadership and innovative strategies employed by the company. Even though Meena Bazaar,
Agora hold several advantages over SHWAPNO. None of these companies have been able to
emulate the success of SHWAPNO‟s business model and market positioning. SHWAPNO‟s
brief history is fraught with challenges, successes, and ups and down.
The organization 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, fruits and grains directly from wholesale markets. Other participants in the
market rely on vendors for fresh produce requirements, which make quality control extremely
difficult.
About SHWAPNO
Products in SHWAPNO are separated into three master categories; Vegetable, Fruits, Meat and
Grains, Company Goods and Non Food divergence. The company has tens of thousands of stock
keeping units in their portfolio. To make sense of all of these SKUs, each article has its own
unique number and description.
Moreover, each master category is further subdivided into category, subcategory and type
category. These subdivisions great aid the decision making of management and help them to
make sense of thousands of disparate SKUs.
The present ordering and inventory system requires each of SHWAPNO‟s outlets to send a sales
transfer order based on present day‟s sales to the head office. The procurement department at the
head office then compiles all the demand data from the outlets and instructs the field
procurement teams to purchase the demanded products from the suppliers. Procurement teams,
after purchasing all the required products, deliver them to SHWAPNO‟s three distribution
centers located at strategic positions across Bangladesh. The management at the distribution
center in turn generates and provides a Goods Received note to the procurement department
acknowledging the transfer of goods.
From this point on, the distribution centers sort the products according to each outlet‟s demand
as presented by the sales transfer order.
After sorting the products according to outlet demand, the distribution centers deliver the
demanded products to all SHWAPNO outlets.
Lastly, each outlet generates and delivers a Goods Received note to the relevant distribution
centre acknowledging the receipt of goods.
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CHAPTER1: Introduction
1.1. Background of the Study
ACI group is one of the largest conglomerates in Bangladesh with interests and stakes in varied
fields. Previously, ACI was called Imperial Chemical Industries (ICI). ACI was founded after
Bangladeshi investors in ICI managed to obtain majority stakes in ICI‟s Bangladeshi operations.
SHWAPNO, a concern of ACI group established in 2008 is an integral part of the overall ACI
group. It represents and exemplifies ACI‟s commitment to bring about a better Bangladesh and
be a catalyst to change the lives of millions of individuals for the better. SHWAPNO, with its 46
retails stores, situated in strategic positions around Bangladesh is the largest retail chain in the
country with over 35% markets share of the growing 1500 crore taka retail industry.
This study will look into the varied strategies developed and implemented by SHWAPNO to
achieve its Supply chain management relations & dominant position in the marketplace.
Some of the strategies were developed as a result of market dynamics, while others were
developed as a result of desperation. An in depth study of strategies used by retail chains have
not been done in Bangladesh previously. The increasing importance of understanding supplier
relation to sustain in market place with best quality and its growing penetration into many
aspects of people‟s lives demands a thorough study on this subject matter.
This paper is organized as follows. Chapter 2 presents SCM with a brief description from the
view of SCM philosophy. Chapter 3 provides the methodology of the paper. The strategy used
when designing a questionnaire form in terms of understanding and the attitudes of main partners
of Shwapno with special emphasis on their relationship to their suppliers and clients, was
explained. Chapter 4 presents the survey results which were analyzed by using SPSS software.
Chapter 5 includes the conclusion part of this study consists of some recommendations to further
this research in the future.
1.2. Objectives of the study:
Our purposes were to learn through practical application, about supply chain management and
their implementation in Shwapno super-shop.
Hence, some other objectives are stated below:
 To figure out their perception regarding Supply Chain Management.
 To know about their implementation procedure of Supply Chain Management.
 To figure out the advantages of Supply Chain Management.
 To figure out the obstacles in implementing Supply Chain Management.
 To know about Counteraction against obstacles while implementing Supply Chain
Management.
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1.3. Limitations of the study
Though we put our best effort to fulfil our determined objectives, still there were some
limitations we had to go through-
 Books on this issues are very few in number
 Very limited time which it needs much time for preparing term paper
 We were not allowed to go out for data collection during pick hours.
 No momentary allocation
 The area on this term paper is very big but we had to finish the work within a very short
phase.
 As our sample size was small, our findings might not be fully accurate.
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CHAPTER 2: Literature Review
Supply Chain Management
The whole chain from producing a raw material to selling the product to the firm i.e. retail
merchant is ascribed as a supply chain. Several companies take part in an organization for
creating a product and transmitting it to the end user. Chopra and Meindl (2007) described the
supply chain as consisting of the parties who are involved in satisfying the customer demands.
The members of supply chain are not limited to the manufacturers and suppliers. Warehouses,
retailers, transporters and customers are all players of supply chain. The sample of La Londe and
Masters (1994) defined the supply chain more clearly as one firm producing a raw material and
selling it to the second firm which then uses raw material and turns it to a component. The third
firm buys this component from the second firm and assembles the component into a product sold
to the fourth firm which might be a wholesale distributor. This firm distributes the product to the
retail merchants who finally sell this product to the end users (customers). The set of firms which
pass these materials forward can be referred to as a supply chain.
Mentzer et al. (2001) listed several activities which should be established by firms to behave
consistently with the SCM philosophy. In this research, the focused activities are; integrated
behavior, mutually sharing information, cooperation and partners‟ building and maintaining
long-term relationships. Integrated behavior and cooperation with clients and suppliers are highly
recommended to meet mutual expectations in the long-term (Mentzer et al., 2001). Partners‟
building and maintaining long-term relationships are required for increasing the effectiveness of
SCM (Mentzer et al., 2001). Lee (2004) suggested that “collaborative relationships should be
developed with suppliers and customers so that companies work together to design or redesign
processes, components and products as well as preparing backup plans.”
Thomas and Griffin (1996) explained that „Supply Chain Management (SCM) is the
management of material and information flow both in and between facilities, such as vendors,
manufacturing and assembly plants and distribution centers‟.
It is very important to take into consideration the responsiveness of the supply chain while
designing the supply chain which is basically enabled by sustained information flow (Chopra and
Meindl, 2007). In addition, information flow has a direct impact on the scheduling, inventory
control and delivery plans which are fundamental elements for the coordination of members in a
supply chain (Lee et al., 1997). The supply chain strategy of many companies depends on getting
quicker response rate at consumer flow, since it has tremendous effect to optimize the company‟s
performance. So, a supply chain management strategy should be developed to attain the ultimate
goals of the company; providing a competitive advantage. In this paper, the existence of effective
collaboration within and beyond the boundaries of a company which is essential to convert
competitive advantage into profitability was sought.
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CHAPTER 3: Research Methodology & Sample Design
This chapter examines the research methodology which generally means the selected methods of
achieving the research objectives. To be more precise, it primarily focuses on the method(s) of
data collection along with the justification of using the method(s). It also includes basic
parameters to be chosen related to the selected method(s). In addition to that, the instruments for
gathering data also fall within the definition of methodology of a research
3.1 Methods
Assessing and identifying the Supply Chain Management of Shwapno is a matter of
qualitative judgment.For the purpose of this study, two methods are used namely
i. Content Analysis
ii. Questionnaire Survey
Content Analysis: This includes collecting related information and data from allrelevant books,
documents, published and unpublished research works available, online articles, notes etc
Questionnaire Survey: This survey is intended to gather primary data about the Supply Chain
Management of Shwapno with a semi-structured questionnaire.
3.2 Sources of Data
The data for this study have been collected both from primary and secondary sources. Secondary
data are drawn from the existing literatures like books, newspaper reports, previous research
works, seminar papers, reports, online etc. Primary data have been collected through
questionnaire survey. The respondents included the production Manager, Assistant manager, and
head of sales department and sales operator who are directly related with Supply chain
operations of shwapno.
3.3 Data Collection Techniques
To collect data, in-depth interviews are conducted through close ended semi structured
questionnaire.
3.4 Sampling
Branch managers and operation officers are directly related with supply chain operations. They
well know about their supply chain and how they manage their suppliers. So we took them as our
sample.
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3.4 Sample Size
Our tram paper is about Supply chain management of Shwapno super shop. We have to take our
respondents from employees who are directly related with Supply chain including Branch
manager of Chittagong (Nurul Islam Rupok), Head of sales dept. (Natasha Rahman), Branch
manager of comilla (Susanta Babu Sutradhar), Assistant manager of Comilla branch (Md.
Shafiqur Rahman) and Sales Operator (Md. Abdul Hannan). We took five supply chain
experts from different branches of shwapno in Bangladesh. They help us through giving raw
information about their supply chain management system. They also told us how they face
problems to manage their suppliers to meet customer satisfaction.
3.6 Data Analysis Software
The collected data have been analysed through SPSS software to arrange raw data and converted
it to information.
3.7 Data Analysis Tools/ Techniques
There are some tools which are used in analysis. These are various figures, tables, charts
(Histogram, Pie chart, Bar chart). These instruments are used in the analysis with the information
we got.
We follow the qualitative survey system. Though our sample size is very few, our data is more
relievable.
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CHAPTER4: Data analysis and Findings
SECTION C: SUPPLY CHAIN MANAGEMENT PRACTICES
Supply Support practice (SSP)
Supply support practices are management methods, practices and procedures employed in
determining requirements of goods and services and their acquisition, receipt, storage, issuance,
and final disposal. Supply support is an important element of integrated logistics support.
SSP1. Few dependable suppliers
Rely on few dependable suppliers
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely disagree 2 40.0 40.0 40.0
Most likely disagree 2 40.0 40.0 80.0
Neutral 1 20.0 20.0 100.0
Total 5 100.0 100.0
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SSP2. Consider quality as number one criterion in selecting suppliers
Consider quality as number one supplier selection criterion
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 1 20.0 20.0 20.0
Neutral 1 20.0 20.0 40.0
Most likely agree 2 40.0 40.0 80.0
Extremely agree 1 20.0 20.0 100.0
Total 5 100.0 100.0
SSP3. Establish long term relationship with its suppliers
Establish long term relationship with its suppliers
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 2 40.0 40.0 40.0
Neutral 1 20.0 20.0 60.0
Most likely agree 2 40.0 40.0 100.0
Total 5 100.0 100.0
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SSP4. Helps its suppliers to improve their product quality
Help suppliers to improve product quality
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely disagree 1 20.0 20.0 20.0
Neutral 1 20.0 20.0 40.0
Most likely agree 3 60.0 60.0 100.0
Total 5 100.0 100.0
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 Analyse (SSP1 to SSP4):
By analysing question SSP1, we found that shwapno depends on more dependable suppliers as
maximum participants disagree (40%) with the statement “their organization rely on few
dependable suppliers.
From SSP2, we found they consider quality as number one criterion in selecting suppliers. As
maximum participants agree (40%) with the statement “Consider quality as number one criterion
in selecting suppliers”.
From SSP3, we found their answer is neutral with the statement “Establish long term relationship
with its suppliers”. As 40% most likely agree and same percent most likely disagree with the
statement.
From SSP4, we found they help their suppliers to improve their product quality. As maximum
participants most likely agree (60%) with the statement “Helps its suppliers to improve their
product quality”
Customer Relationship Management (CRM)
Customer relationship management (CRM) is a term that refers to practices, strategies and
technologies that companies use to manage and analyse customer interactions and data
throughout the customer lifecycle, with the goal of improving business relationships with
customers, assisting in customer retention and driving sales growth.
CRM1. Interacts with customers to set its reliability, responsiveness, and other standards
Interacts with customers to sets its reliability, responsiveness
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely disagree 1 20.0 20.0 20.0
Most likely disagree 3 60.0 60.0 80.0
Neutral 1 20.0 20.0 100.0
Total 5 100.0 100.0
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CRM2. Frequently measures and evaluates customer satisfaction
Frequently measures and evaluates customer satisfaction
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 2 40.0 40.0 40.0
Most likely agree 3 60.0 60.0 100.0
Total 5 100.0 100.0
CRM3. Frequently evaluates the formal and informal complaints of its customers
Frequently evaluates formal and informal complaints of customers
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 2 40.0 40.0 40.0
Neutral 1 20.0 20.0 60.0
Most likely agree 2 40.0 40.0 100.0
Total 5 100.0 100.0
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 Analyse (CRM1 to CRM3):
From CRM1, we found shwapno doesn‟t interact directly with customers to set its reliability,
responsiveness and others standards.
From CRM2, we found they frequently measures and evaluate customer satisfaction. As
maximum participants most likely agree (60%) with the statement “Frequently measures and
evaluates customer satisfaction”.
From CRM3, we found their answer is neutral with the statement “Frequently evaluates the
formal and informal complaints of its customers”. As 40% most likely agree and same percent
most likely disagree with the statement
Information System (IS)
A combination of hardware, software, infrastructure and trained personnel organized to facilitate
planning, control, coordination, and decision making in an organization.
IS1. Shares its business units’ proprietary information with its trading partners
Share business units proprietary information with its trading partners
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 3 60.0 60.0 60.0
Neutral 1 20.0 20.0 80.0
Most likely agree 1 20.0 20.0 100.0
Total 5 100.0 100.0
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IS2. Exchanged information that helps establishment of business planning
Exchanged information helps to establish business plan
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely agree 2 40.0 40.0 40.0
Extremely agree 3 60.0 60.0 100.0
Total 5 100.0 100.0
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IS3. Information exchange between your organization and its trading partners is adequate
Adequate exchange of information with trading partners
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 2 40.0 40.0 40.0
Most likely agree 1 20.0 20.0 60.0
Extremely agree 2 40.0 40.0 100.0
Total 5 100.0 100.0
 Analyse (IS1 to IS3):
From IS1, we found shwapno doesn‟t share its business units‟ proprietary information with its
trading partners.
From IS2, we found that their exchanged information helps establishment of business planning.
From IS3, we found their answer is neutral with the statement “Information exchange between
your organization and its trading partners is adequate”. As 40% most likely agree and same
percent most likely disagree with the statement
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Quality Service (QS)
Quality service is an assessment of how well a delivered service conforms to the client's
expectations. Service business operators often assess the service quality provided to their
customers in order to improve their service, to quickly identify problems, and to better assess
client satisfaction.
QS1. Continuous quality improvement program
Maintain continuous quality improvement program
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 1 20.0 20.0 20.0
Most likely agree 4 80.0 80.0 100.0
Total 5 100.0 100.0
QS2. Produces only what has been ordered by customers (pull production system)
Produce only what has been ordered by customers
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely disagree 3 60.0 60.0 60.0
Most likely disagree 2 40.0 40.0 100.0
Total 5 100.0 100.0
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QS3. Organization’s goods are stored at appropriate distribution points close to customers in
the supply chain
Goods are stored at appropriate distribution points
Frequency Percent Valid Percent Cumulative
Percent
Valid Neutral 1 20.0 20.0 20.0
Most likely agree 2 40.0 40.0 60.0
Extremely agree 2 40.0 40.0 100.0
Total 5 100.0 100.0
 Analyse (QS1 to QS3):
From QS1, we found Shwapno continuously improve their quality. As maximum participants
most likely agree (80%) with the statement “Continuous quality improvement program”.
From QS2, we found they doesn‟t produces only what has been ordered by customers (pull
production system)
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From QS3, we found their organization‟s goods are stored at appropriate distribution points close
to customers in the supply chain. As maximum participants extremely agree (40%) with the
statement “organization‟s goods are stored at appropriate distribution points close to customers
in the supply chain”
Risk and Reward (RR)
Risk and reward are related factors in the business world. Any company that chooses to enter the
marketplace faces risks, whether financial or operational. Reward is the benefit achieved when
companies mitigate their risk and earn income from their operations.
RR1. Supply chain members help each other finance capital equipment
Supply chain members help each other finance capital equipment
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 3 60.0 60.0 60.0
Most likely agree 2 40.0 40.0 100.0
Total 5 100.0 100.0
RR2. Supply chain members share risks and rewards
Supply chain members share risk and reward
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely disagree 3 60.0 60.0 60.0
Most likely disagree 2 40.0 40.0 100.0
Total 5 100.0 100.0
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 Analyse (RR1 to RR2):
From RR1, we found shwapno‟s Supply chain members don‟t help each other finance capital
equipment.
From RR2, we found that they doesn‟t share risk and reward with their supply chain members.
SECTION D: SUPPLY CHAIN INTEGRATION
Supply Chain Integration (SCI)
Supply chain refers the complex network of relationships that organizations maintain with
trading partners to procure manufacture and deliver products or services
SCI1. Supply chain establish more frequent contact with each other
More frequent contact with supply chain members
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely disagree 1 20.0 20.0 20.0
Neutral 1 20.0 20.0 40.0
Most likely agree 2 40.0 40.0 80.0
Extremely agree 1 20.0 20.0 100.0
Total 5 100.0 100.0
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SCI2. Participates in the marketing efforts of its customers
Participate in the marketing efforts of its customers
Frequency Percent Valid Percent Cumulative
Percent
Valid Neutral 1 20.0 20.0 20.0
Most likely agree 4 80.0 80.0 100.0
Total 5 100.0 100.0
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SCI3. Participates in the sourcing decisions of its suppliers
Participate in the sourcing decisions of its suppliers
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely disagree 1 20.0 20.0 20.0
Most likely disagree 2 40.0 40.0 60.0
Most likely agree 2 40.0 40.0 100.0
Total 5 100.0 100.0
 Analyse (SCI1 to SCI3):
From SCI1, we found shwapno establishes more frequent contact with each other in supply
chain. As maximum participants most likely agree (40%) with the statement “. Supply chain
establishes more frequent contact with each other”.
From SC2, we found they Participates in the marketing efforts of its customers.
From SCI3, we found their answer is neutral with the statement “Participates in the sourcing
decisions of its suppliers”. As 40% most likely agree and same percent most likely disagree with
the statement
SECTION D: SUPPLY CHAIN PERFORMANCE
Flexibility Performance (FP)
Flexibility is defined as the range of motion of your joints or the ability of your joints to move
freely. It also refers to the mobility of your muscles, which allows for more movement around
the joints.
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FP1. Ability to respond to and accommodate demand variations, such as seasonality
Ability to respond to demand variations
Frequency Percent Valid Percent Cumulative
Percent
Valid Neutral 1 20.0 20.0 20.0
Most likely better 4 80.0 80.0 100.0
Total 5 100.0 100.0
FP2. Ability to respond to and accommodate the periods of poor manufacturing performance
such as machine breakdown
Ability to respond to poor manufacturing performance
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely worse 1 20.0 20.0 20.0
Neutral 4 80.0 80.0 100.0
Total 5 100.0 100.0
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FP3. Ability to respond to and accommodate the periods of poor delivery performance
Ability to respond to poor delivery performance
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely worse 2 40.0 40.0 40.0
Neutral 3 60.0 60.0 100.0
Total 5 100.0 100.0
 Analyse (FP1 to FP3):
From FP1, we found their ability increases to respond and accommodate demand variations
because of their supply chain.
From FP2, we found their ability doesn‟t increase to respond to and accommodate the periods of
poor manufacturing performance such as machine breakdown
From FP3, we found their ability doesn‟t increase to respond and accommodate the periods of
poor delivery performance
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Resource Performance (RP)
Resource performance refers how efficiency and effectively resource are used to deliver customer
demand.
RP1. Total cost of resources used
Total cost and resources used
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely better 5 100.0 100.0 100.0
RP2. Total cost of distribution, including transportation and handling cost
Total cost of distribution
Frequency Percent Valid Percent Cumulative
Percent
Valid Neutral 2 40.0 40.0 40.0
Most likely better 3 60.0 60.0 100.0
Total 5 100.0 100.0
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RP3. Return on investment
Return on investment
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely worse 1 20.0 20.0 20.0
Neutral 3 60.0 60.0 80.0
Most likely better 1 20.0 20.0 100.0
Total 5 100.0 100.0
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 Analyse (RP1 to RP3):
From RP1, we found shwapno uses total cost of resources.
From RP2, we found their total cost of distribution, including transportation and handling cost is
much better because of supply chain management.
From RP3, we found their Return on investment is not much better as they expected.
Output Performance (OP)
Output performance is the amount of energy, work, goods, or services produced by a machine,
factory, company, or an individual in a period.
OP1. Sales performance
Sales performance
Frequency Percent Valid Percent Cumulative
Percent
Valid Neutral 1 20.0 20.0 20.0
Most likely high 4 80.0 80.0 100.0
Total 5 100.0 100.0
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OP2. Order fill rate
Order fill rate
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely high 1 20.0 20.0 20.0
Extremely high 4 80.0 80.0 100.0
Total 5 100.0 100.0
OP3. On time deliveries
On time deliveries
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely high 3 60.0 60.0 60.0
Extremely high 2 40.0 40.0 100.0
Total 5 100.0 100.0
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OP4. Customer response time
Customer response time
Frequency Percent Valid Percent Cumulative
Percent
Valid Extremely low 3 60.0 60.0 60.0
Most likely low 2 40.0 40.0 100.0
Total 5 100.0 100.0
OP5. Customer complaints
Customer Complaints
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely low 3 60.0 60.0 60.0
Most likely high 2 40.0 40.0 100.0
Total 5 100.0 100.0
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 Analyse (OP1 to OP5):
From OP1, we found their supply chain management increases their sales performance. As
maximum participants reply most likely high (80%) with the statement “sales performance”
From OP2, we found their supply chain management increases their order fill rate. As maximum
participants reply most likely high (80%) with the statement “order fill rate”
From OP3, we found their supply chain management increases their performance to deliver
timely. As maximum participants reply most likely high (60%) with the statement “On time
deliveries”
From OP4, we found their supply chain management decreases their customer response time. As
maximum participants reply most likely low (60%) with the statement “customer response time”
From OP5, We found their supply chain management decreases their Customer complaints. As
maximum participants reply most likely low (60%) with the statement “Customer complaints”
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CHAPTER 5: Findings & recommendation
SHWAPNO has a valuable business prospect, but it needs to overcome many obstacles to fortify
its place in the industry. It has entered too many unrelated markets without proper expertise and
preparation, it struggles with high employee turnover, its management information system is in
shambles, it is operating at a loss due to increasingly compounding interest payments to banks
for the funds acquired during its initial expansion phase, it operates without standardized
business process, its employees often lack job descriptions, it suffers from system and real time
stock mismatch, it has started many new product categories that are lacking in product depth and
product line, and lastly it suffers from poor image in the market even though the present quality
of service offered by the company is way above industry standards. SHWAPNO can truly
become a world class organization if it overcomes all these hurdles in the near future.
Recommendation
 Instead of maintaining good relation separately with every supplier, an overall integration
will fetch a way more fruitful output.
 Keeping regular touch with potential suppliers and involving their selves on new product
launching would be an effective competitive advantage.
 Treating potential suppliers as partner will create a sense of ownership on everyone
which will reflect on entire affluence.
 People in Bangladesh basically follow renowned actor or actresses as fashion trend. Whereas,
SHWAPNO introduced new faces to their advertisement in billboard. Rather doing that
SHWAPNO should introduce popular character for their billboard advertising modeling. It
will help them to grab a new customer base.
 There are some disadvantages of sales promotion as it makes customers and traders more
price sensitive not only for the promoted brands but also for other brands as well in the same
product category. So discount offer should always give once a year not more than that.
Otherwise customer may used to with these offers.
 Online shopping is considered to be a very helpful way of buying products through the
internet especially during the holidays. SHWAPNO can also open online store so that people
can give order for purchase in sitting home.
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Reference
WEBSITEs:
1. BusinessDictionary.com, Available from:
http://www.businessdictionary.com/definition/supply-support.html
http://www.businessdictionary.com/definition/information-system.html
http://www.businessdictionary.com/definition/service-quality.html
http://www.businessdictionary.com/definition/output.html
[Accessed: 2nd
January 2016]
2. TechTarget, Available from: http://searchcrm.techtarget.com/definition/CRM [Accessed:
2nd
January 2016]
3. eHow, Available from: http://www.ehow.com/facts_5397680_risk-reward-business.html
[Accessed: 2nd
January 2016]
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integration-mean.html [Accessed: 2nd
January 2016]
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http://www.aci-bd.com/corporate.php [Accessed: 2nd
January 2016]
Books:
1. Chopra, S., and Meindl, P. (2007). Supply Chain Management: strategy, planning, and
operation, 3rd ed., Prentice Hall, NJ.
2. Cox, A., and Townsend, M. (1998). Strategic Procurement in Construction, Thomas
Telford, London.
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APPENDICES
Appendix 1: Table given below shows the details about the participants of the study
Name of the Participants Position & Other Information
Nurul Islam Rupok Regional Sales Manager
ACI Logistics Limited
Novo tower, Level-8
Mobile: 01730028490
E-mail: rupok@acilogistics.net
Natasha Rahman Head of Sales Department
Shwapno,Chittagong Branch
Goalpahar, Chittagong
Mobile: 01922510159
E-mail: natasharahman07@gmail.com
Susanta Babu Sutradhar Branch Manager
Staff ID: L9735
Shwapno, Comilla Branch
Badurtala, Comilla
Mobile: 01936005168
E-mail: sbs@shwapno.net
Md. Shafiqur Rahman Assistant Branch Manager
Staff ID: L9906
Shwapno, Comilla Branch
Badurtala, Comilla
Mobile: 01676130063
E-mail: mdshafiq@shwapno.net
Md. Abdul Hannan Sales Operator
Staff ID: L9908
Shwapno, Comilla Branch
Badurtala, Comilla
Mobile: 01821930814
E-mail: abdulhannan413@gmail.com
XXXIII | P a g e
Appendix 2: Questionnaire
Survey Questionnaire
Dear Sir/Madam,
We are the students of Comilla University of Dept. of management studies under BBA program,
are undergoing to prepare a term paper on “The supply chain management of any organization”.
We, therefore request you to fill up the questionnaire to enable us to complete the term paper.
Section A: General information
A1 What is your name?
----------------------------------------------
A2 Age? 22-30
31-44
Up to 44
1
2
3
A3 Gender Male
Female
1
2
A4 Name of your organization?
----------------------------------------------
A5 What is your position in the company?
Please indicate your field of responsibility? ----------------------------------------------
Section B: Demographic Profile
Please tick at the appropriate box/column or write in your answers where appropriate
B1. Business Description of company:
ent
product
daily used product
Technology Product
B2. Numbers of Employees:
- 100
- 250
- 500
B3. Annual sales of this company is:
– 5 million
– 10 million
– 50 million
– 100 million
D4. Years of operating experience of this
company:
– 5 years
– 10 years
– 15 years
– 20 year
XXXIV | P a g e
SECTION C: SUPPLY CHAIN MANAGEMENT PRACTICES
Please indicate your level of agreement on the following statements based on your experience
working in this company. The rating is from 1=Extremely Disagree to 5=Extremely Agree
Code: Supply Support practice(SSP); Customer Relationship Management(CRM); Information
System(IS); Quality Service (QS); Risk and Reward(RR)
code Extremely
Disagree 1
Extremely
Agree 5
SSP1 Your organisation rely on few dependable suppliers 1 2 3 4 5
SSP2 Your organisation consider quality as number one
criterion in selecting suppliers
1 2 3 4 5
SSP3 Your organisation strive to establish long term
relationship with its suppliers
1 2 3 4 5
SSP4 Your organisation helps its suppliers to improve their
product quality
1 2 3 4 5
CRM1 Your organisation frequently interacts with customers to
set its reliability, responsiveness, and other standards
1 2 3 4 5
CRM2 Your organisation frequently measures and evaluates
customer satisfaction
1 2 3 4 5
CRM3 Your organization frequently evaluates the formal and
informal complaints of its customers
1 2 3 4 5
IS1 Your organisation shares its business units‟ proprietary
information with its trading partners
1 2 3 4 5
IS2 Your organisation and its trading partners exchange
information that helps establishment of business planning
1 2 3 4 5
IS3 Information exchange between your organization and its
trading partners is adequate
1 2 3 4 5
QS1 Your organisation has continuous quality improvement
program
1 2 3 4 5
QS2 Your organisation produces only what has been ordered by
customers (pull production system)
1 2 3 4 5
QS3 Your organization‟s goods are stored at appropriate
distribution points close to customers in the supply chain
1 2 3 4 5
RR1 Your supply chain members help each other finance capital
equipment
1 2 3 4 5
RR2 Your supply chain members share risks and rewards 1 2 3 4 5
XXXV | P a g e
SECTION D: SUPPLY CHAIN INTEGRATION
Please indicate your level of agreement on the following statements based on your experience
working in this company. The rating is from 1=Extremely Disagree to 5=Extremely Agree
Code: Supply Chain Integration(SCI)
code Extremely
Disagree 1
Extremely
Agree 5
SCI1 Your supply chain establish more frequent contact with each
other
1 2 3 4 5
SCI2 Your firm participates in the marketing efforts of its
customers
1 2 3 4 5
SCI3 Your firm participates in the sourcing decisions of its
suppliers
1 2 3 4 5
SECTION D: SUPPLY CHAIN PERFORMANCE
Please indicate your level of agreement on the following statements based on your experience
working in this company. The rating is from 1=Extremely WORSE/LOW to 5=Extremely
BETTER/HIGH
Code: Flexibility Performance(FP); Resource Performance(RP); Output Performance(OP)
code Extremely
Worse/low
1
Extremely
Better/high
7
FP1 Ability to respond to and accommodate demand variations,
such as seasonality.
1 2 3 4 5
FP2 Ability to respond to and accommodate the periods of poor
manufacturing performance such as machine breakdown
1 2 3 4 5
FP3 Ability to respond to and accommodate the periods of poor
delivery performance
1 2 3 4 5
RP1 Total cost of resources used 1 2 3 4 5
RP2 Total cost of distribution, including transportation and
handling cost
1 2 3 4 5
RP3 Return on investment 1 2 3 4 5
OP1 Sales 1 2 3 4 5
OP2 Order fill rate 1 2 3 4 5
OP3 On time deliveries 1 2 3 4 5
OP4 Customer response time 1 2 3 4 5
OP5 Customer complaints 1 2 3 4 5

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Supply chain management of shwapno in bangladesh

  • 1. I | P a g e Supply chain management of Shwapno
  • 2. II | P a g e Executive Summary ACI group is one of the largest conglomerates in the country with businesses in pharmaceuticals, agriculture, consumer products etc. However, SHWAPNO is a business unit of ACI logistics. SHWAPNO is the largest retail company in Bangladesh currently holding a share of 35% of the retail industry. Inaugurated in 2008, SHWAPNO now has over 46 outlets and 1600 employees spread across the country. SHWAPNO enjoys a higher amount of market share than its competitors such as Agora and Meena bazaar. Agora and Meena Bazar entered this industry earlier mostly because of visionary leadership and innovative strategies employed by the company. Even though Meena Bazaar, Agora hold several advantages over SHWAPNO. None of these companies have been able to emulate the success of SHWAPNO‟s business model and market positioning. SHWAPNO‟s brief history is fraught with challenges, successes, and ups and down. The organization 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, fruits and grains directly from wholesale markets. Other participants in the market rely on vendors for fresh produce requirements, which make quality control extremely difficult. About SHWAPNO Products in SHWAPNO are separated into three master categories; Vegetable, Fruits, Meat and Grains, Company Goods and Non Food divergence. The company has tens of thousands of stock keeping units in their portfolio. To make sense of all of these SKUs, each article has its own unique number and description. Moreover, each master category is further subdivided into category, subcategory and type category. These subdivisions great aid the decision making of management and help them to make sense of thousands of disparate SKUs. The present ordering and inventory system requires each of SHWAPNO‟s outlets to send a sales transfer order based on present day‟s sales to the head office. The procurement department at the head office then compiles all the demand data from the outlets and instructs the field procurement teams to purchase the demanded products from the suppliers. Procurement teams, after purchasing all the required products, deliver them to SHWAPNO‟s three distribution centers located at strategic positions across Bangladesh. The management at the distribution center in turn generates and provides a Goods Received note to the procurement department acknowledging the transfer of goods. From this point on, the distribution centers sort the products according to each outlet‟s demand as presented by the sales transfer order. After sorting the products according to outlet demand, the distribution centers deliver the demanded products to all SHWAPNO outlets. Lastly, each outlet generates and delivers a Goods Received note to the relevant distribution centre acknowledging the receipt of goods.
  • 3. III | P a g e CHAPTER1: Introduction 1.1. Background of the Study ACI group is one of the largest conglomerates in Bangladesh with interests and stakes in varied fields. Previously, ACI was called Imperial Chemical Industries (ICI). ACI was founded after Bangladeshi investors in ICI managed to obtain majority stakes in ICI‟s Bangladeshi operations. SHWAPNO, a concern of ACI group established in 2008 is an integral part of the overall ACI group. It represents and exemplifies ACI‟s commitment to bring about a better Bangladesh and be a catalyst to change the lives of millions of individuals for the better. SHWAPNO, with its 46 retails stores, situated in strategic positions around Bangladesh is the largest retail chain in the country with over 35% markets share of the growing 1500 crore taka retail industry. This study will look into the varied strategies developed and implemented by SHWAPNO to achieve its Supply chain management relations & dominant position in the marketplace. Some of the strategies were developed as a result of market dynamics, while others were developed as a result of desperation. An in depth study of strategies used by retail chains have not been done in Bangladesh previously. The increasing importance of understanding supplier relation to sustain in market place with best quality and its growing penetration into many aspects of people‟s lives demands a thorough study on this subject matter. This paper is organized as follows. Chapter 2 presents SCM with a brief description from the view of SCM philosophy. Chapter 3 provides the methodology of the paper. The strategy used when designing a questionnaire form in terms of understanding and the attitudes of main partners of Shwapno with special emphasis on their relationship to their suppliers and clients, was explained. Chapter 4 presents the survey results which were analyzed by using SPSS software. Chapter 5 includes the conclusion part of this study consists of some recommendations to further this research in the future. 1.2. Objectives of the study: Our purposes were to learn through practical application, about supply chain management and their implementation in Shwapno super-shop. Hence, some other objectives are stated below:  To figure out their perception regarding Supply Chain Management.  To know about their implementation procedure of Supply Chain Management.  To figure out the advantages of Supply Chain Management.  To figure out the obstacles in implementing Supply Chain Management.  To know about Counteraction against obstacles while implementing Supply Chain Management.
  • 4. IV | P a g e 1.3. Limitations of the study Though we put our best effort to fulfil our determined objectives, still there were some limitations we had to go through-  Books on this issues are very few in number  Very limited time which it needs much time for preparing term paper  We were not allowed to go out for data collection during pick hours.  No momentary allocation  The area on this term paper is very big but we had to finish the work within a very short phase.  As our sample size was small, our findings might not be fully accurate.
  • 5. V | P a g e CHAPTER 2: Literature Review Supply Chain Management The whole chain from producing a raw material to selling the product to the firm i.e. retail merchant is ascribed as a supply chain. Several companies take part in an organization for creating a product and transmitting it to the end user. Chopra and Meindl (2007) described the supply chain as consisting of the parties who are involved in satisfying the customer demands. The members of supply chain are not limited to the manufacturers and suppliers. Warehouses, retailers, transporters and customers are all players of supply chain. The sample of La Londe and Masters (1994) defined the supply chain more clearly as one firm producing a raw material and selling it to the second firm which then uses raw material and turns it to a component. The third firm buys this component from the second firm and assembles the component into a product sold to the fourth firm which might be a wholesale distributor. This firm distributes the product to the retail merchants who finally sell this product to the end users (customers). The set of firms which pass these materials forward can be referred to as a supply chain. Mentzer et al. (2001) listed several activities which should be established by firms to behave consistently with the SCM philosophy. In this research, the focused activities are; integrated behavior, mutually sharing information, cooperation and partners‟ building and maintaining long-term relationships. Integrated behavior and cooperation with clients and suppliers are highly recommended to meet mutual expectations in the long-term (Mentzer et al., 2001). Partners‟ building and maintaining long-term relationships are required for increasing the effectiveness of SCM (Mentzer et al., 2001). Lee (2004) suggested that “collaborative relationships should be developed with suppliers and customers so that companies work together to design or redesign processes, components and products as well as preparing backup plans.” Thomas and Griffin (1996) explained that „Supply Chain Management (SCM) is the management of material and information flow both in and between facilities, such as vendors, manufacturing and assembly plants and distribution centers‟. It is very important to take into consideration the responsiveness of the supply chain while designing the supply chain which is basically enabled by sustained information flow (Chopra and Meindl, 2007). In addition, information flow has a direct impact on the scheduling, inventory control and delivery plans which are fundamental elements for the coordination of members in a supply chain (Lee et al., 1997). The supply chain strategy of many companies depends on getting quicker response rate at consumer flow, since it has tremendous effect to optimize the company‟s performance. So, a supply chain management strategy should be developed to attain the ultimate goals of the company; providing a competitive advantage. In this paper, the existence of effective collaboration within and beyond the boundaries of a company which is essential to convert competitive advantage into profitability was sought.
  • 6. VI | P a g e CHAPTER 3: Research Methodology & Sample Design This chapter examines the research methodology which generally means the selected methods of achieving the research objectives. To be more precise, it primarily focuses on the method(s) of data collection along with the justification of using the method(s). It also includes basic parameters to be chosen related to the selected method(s). In addition to that, the instruments for gathering data also fall within the definition of methodology of a research 3.1 Methods Assessing and identifying the Supply Chain Management of Shwapno is a matter of qualitative judgment.For the purpose of this study, two methods are used namely i. Content Analysis ii. Questionnaire Survey Content Analysis: This includes collecting related information and data from allrelevant books, documents, published and unpublished research works available, online articles, notes etc Questionnaire Survey: This survey is intended to gather primary data about the Supply Chain Management of Shwapno with a semi-structured questionnaire. 3.2 Sources of Data The data for this study have been collected both from primary and secondary sources. Secondary data are drawn from the existing literatures like books, newspaper reports, previous research works, seminar papers, reports, online etc. Primary data have been collected through questionnaire survey. The respondents included the production Manager, Assistant manager, and head of sales department and sales operator who are directly related with Supply chain operations of shwapno. 3.3 Data Collection Techniques To collect data, in-depth interviews are conducted through close ended semi structured questionnaire. 3.4 Sampling Branch managers and operation officers are directly related with supply chain operations. They well know about their supply chain and how they manage their suppliers. So we took them as our sample.
  • 7. VII | P a g e 3.4 Sample Size Our tram paper is about Supply chain management of Shwapno super shop. We have to take our respondents from employees who are directly related with Supply chain including Branch manager of Chittagong (Nurul Islam Rupok), Head of sales dept. (Natasha Rahman), Branch manager of comilla (Susanta Babu Sutradhar), Assistant manager of Comilla branch (Md. Shafiqur Rahman) and Sales Operator (Md. Abdul Hannan). We took five supply chain experts from different branches of shwapno in Bangladesh. They help us through giving raw information about their supply chain management system. They also told us how they face problems to manage their suppliers to meet customer satisfaction. 3.6 Data Analysis Software The collected data have been analysed through SPSS software to arrange raw data and converted it to information. 3.7 Data Analysis Tools/ Techniques There are some tools which are used in analysis. These are various figures, tables, charts (Histogram, Pie chart, Bar chart). These instruments are used in the analysis with the information we got. We follow the qualitative survey system. Though our sample size is very few, our data is more relievable.
  • 8. VIII | P a g e CHAPTER4: Data analysis and Findings SECTION C: SUPPLY CHAIN MANAGEMENT PRACTICES Supply Support practice (SSP) Supply support practices are management methods, practices and procedures employed in determining requirements of goods and services and their acquisition, receipt, storage, issuance, and final disposal. Supply support is an important element of integrated logistics support. SSP1. Few dependable suppliers Rely on few dependable suppliers Frequency Percent Valid Percent Cumulative Percent Valid Extremely disagree 2 40.0 40.0 40.0 Most likely disagree 2 40.0 40.0 80.0 Neutral 1 20.0 20.0 100.0 Total 5 100.0 100.0
  • 9. IX | P a g e SSP2. Consider quality as number one criterion in selecting suppliers Consider quality as number one supplier selection criterion Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 1 20.0 20.0 20.0 Neutral 1 20.0 20.0 40.0 Most likely agree 2 40.0 40.0 80.0 Extremely agree 1 20.0 20.0 100.0 Total 5 100.0 100.0 SSP3. Establish long term relationship with its suppliers Establish long term relationship with its suppliers Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 2 40.0 40.0 40.0 Neutral 1 20.0 20.0 60.0 Most likely agree 2 40.0 40.0 100.0 Total 5 100.0 100.0
  • 10. X | P a g e SSP4. Helps its suppliers to improve their product quality Help suppliers to improve product quality Frequency Percent Valid Percent Cumulative Percent Valid Extremely disagree 1 20.0 20.0 20.0 Neutral 1 20.0 20.0 40.0 Most likely agree 3 60.0 60.0 100.0 Total 5 100.0 100.0
  • 11. XI | P a g e  Analyse (SSP1 to SSP4): By analysing question SSP1, we found that shwapno depends on more dependable suppliers as maximum participants disagree (40%) with the statement “their organization rely on few dependable suppliers. From SSP2, we found they consider quality as number one criterion in selecting suppliers. As maximum participants agree (40%) with the statement “Consider quality as number one criterion in selecting suppliers”. From SSP3, we found their answer is neutral with the statement “Establish long term relationship with its suppliers”. As 40% most likely agree and same percent most likely disagree with the statement. From SSP4, we found they help their suppliers to improve their product quality. As maximum participants most likely agree (60%) with the statement “Helps its suppliers to improve their product quality” Customer Relationship Management (CRM) Customer relationship management (CRM) is a term that refers to practices, strategies and technologies that companies use to manage and analyse customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth. CRM1. Interacts with customers to set its reliability, responsiveness, and other standards Interacts with customers to sets its reliability, responsiveness Frequency Percent Valid Percent Cumulative Percent Valid Extremely disagree 1 20.0 20.0 20.0 Most likely disagree 3 60.0 60.0 80.0 Neutral 1 20.0 20.0 100.0 Total 5 100.0 100.0
  • 12. XII | P a g e CRM2. Frequently measures and evaluates customer satisfaction Frequently measures and evaluates customer satisfaction Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 2 40.0 40.0 40.0 Most likely agree 3 60.0 60.0 100.0 Total 5 100.0 100.0 CRM3. Frequently evaluates the formal and informal complaints of its customers Frequently evaluates formal and informal complaints of customers Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 2 40.0 40.0 40.0 Neutral 1 20.0 20.0 60.0 Most likely agree 2 40.0 40.0 100.0 Total 5 100.0 100.0
  • 13. XIII | P a g e  Analyse (CRM1 to CRM3): From CRM1, we found shwapno doesn‟t interact directly with customers to set its reliability, responsiveness and others standards. From CRM2, we found they frequently measures and evaluate customer satisfaction. As maximum participants most likely agree (60%) with the statement “Frequently measures and evaluates customer satisfaction”. From CRM3, we found their answer is neutral with the statement “Frequently evaluates the formal and informal complaints of its customers”. As 40% most likely agree and same percent most likely disagree with the statement Information System (IS) A combination of hardware, software, infrastructure and trained personnel organized to facilitate planning, control, coordination, and decision making in an organization. IS1. Shares its business units’ proprietary information with its trading partners Share business units proprietary information with its trading partners Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 3 60.0 60.0 60.0 Neutral 1 20.0 20.0 80.0 Most likely agree 1 20.0 20.0 100.0 Total 5 100.0 100.0
  • 14. XIV | P a g e IS2. Exchanged information that helps establishment of business planning Exchanged information helps to establish business plan Frequency Percent Valid Percent Cumulative Percent Valid Most likely agree 2 40.0 40.0 40.0 Extremely agree 3 60.0 60.0 100.0 Total 5 100.0 100.0
  • 15. XV | P a g e IS3. Information exchange between your organization and its trading partners is adequate Adequate exchange of information with trading partners Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 2 40.0 40.0 40.0 Most likely agree 1 20.0 20.0 60.0 Extremely agree 2 40.0 40.0 100.0 Total 5 100.0 100.0  Analyse (IS1 to IS3): From IS1, we found shwapno doesn‟t share its business units‟ proprietary information with its trading partners. From IS2, we found that their exchanged information helps establishment of business planning. From IS3, we found their answer is neutral with the statement “Information exchange between your organization and its trading partners is adequate”. As 40% most likely agree and same percent most likely disagree with the statement
  • 16. XVI | P a g e Quality Service (QS) Quality service is an assessment of how well a delivered service conforms to the client's expectations. Service business operators often assess the service quality provided to their customers in order to improve their service, to quickly identify problems, and to better assess client satisfaction. QS1. Continuous quality improvement program Maintain continuous quality improvement program Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 1 20.0 20.0 20.0 Most likely agree 4 80.0 80.0 100.0 Total 5 100.0 100.0 QS2. Produces only what has been ordered by customers (pull production system) Produce only what has been ordered by customers Frequency Percent Valid Percent Cumulative Percent Valid Extremely disagree 3 60.0 60.0 60.0 Most likely disagree 2 40.0 40.0 100.0 Total 5 100.0 100.0
  • 17. XVII | P a g e QS3. Organization’s goods are stored at appropriate distribution points close to customers in the supply chain Goods are stored at appropriate distribution points Frequency Percent Valid Percent Cumulative Percent Valid Neutral 1 20.0 20.0 20.0 Most likely agree 2 40.0 40.0 60.0 Extremely agree 2 40.0 40.0 100.0 Total 5 100.0 100.0  Analyse (QS1 to QS3): From QS1, we found Shwapno continuously improve their quality. As maximum participants most likely agree (80%) with the statement “Continuous quality improvement program”. From QS2, we found they doesn‟t produces only what has been ordered by customers (pull production system)
  • 18. XVIII | P a g e From QS3, we found their organization‟s goods are stored at appropriate distribution points close to customers in the supply chain. As maximum participants extremely agree (40%) with the statement “organization‟s goods are stored at appropriate distribution points close to customers in the supply chain” Risk and Reward (RR) Risk and reward are related factors in the business world. Any company that chooses to enter the marketplace faces risks, whether financial or operational. Reward is the benefit achieved when companies mitigate their risk and earn income from their operations. RR1. Supply chain members help each other finance capital equipment Supply chain members help each other finance capital equipment Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 3 60.0 60.0 60.0 Most likely agree 2 40.0 40.0 100.0 Total 5 100.0 100.0 RR2. Supply chain members share risks and rewards Supply chain members share risk and reward Frequency Percent Valid Percent Cumulative Percent Valid Extremely disagree 3 60.0 60.0 60.0 Most likely disagree 2 40.0 40.0 100.0 Total 5 100.0 100.0
  • 19. XIX | P a g e  Analyse (RR1 to RR2): From RR1, we found shwapno‟s Supply chain members don‟t help each other finance capital equipment. From RR2, we found that they doesn‟t share risk and reward with their supply chain members. SECTION D: SUPPLY CHAIN INTEGRATION Supply Chain Integration (SCI) Supply chain refers the complex network of relationships that organizations maintain with trading partners to procure manufacture and deliver products or services SCI1. Supply chain establish more frequent contact with each other More frequent contact with supply chain members Frequency Percent Valid Percent Cumulative Percent Valid Most likely disagree 1 20.0 20.0 20.0 Neutral 1 20.0 20.0 40.0 Most likely agree 2 40.0 40.0 80.0 Extremely agree 1 20.0 20.0 100.0 Total 5 100.0 100.0
  • 20. XX | P a g e SCI2. Participates in the marketing efforts of its customers Participate in the marketing efforts of its customers Frequency Percent Valid Percent Cumulative Percent Valid Neutral 1 20.0 20.0 20.0 Most likely agree 4 80.0 80.0 100.0 Total 5 100.0 100.0
  • 21. XXI | P a g e SCI3. Participates in the sourcing decisions of its suppliers Participate in the sourcing decisions of its suppliers Frequency Percent Valid Percent Cumulative Percent Valid Extremely disagree 1 20.0 20.0 20.0 Most likely disagree 2 40.0 40.0 60.0 Most likely agree 2 40.0 40.0 100.0 Total 5 100.0 100.0  Analyse (SCI1 to SCI3): From SCI1, we found shwapno establishes more frequent contact with each other in supply chain. As maximum participants most likely agree (40%) with the statement “. Supply chain establishes more frequent contact with each other”. From SC2, we found they Participates in the marketing efforts of its customers. From SCI3, we found their answer is neutral with the statement “Participates in the sourcing decisions of its suppliers”. As 40% most likely agree and same percent most likely disagree with the statement SECTION D: SUPPLY CHAIN PERFORMANCE Flexibility Performance (FP) Flexibility is defined as the range of motion of your joints or the ability of your joints to move freely. It also refers to the mobility of your muscles, which allows for more movement around the joints.
  • 22. XXII | P a g e FP1. Ability to respond to and accommodate demand variations, such as seasonality Ability to respond to demand variations Frequency Percent Valid Percent Cumulative Percent Valid Neutral 1 20.0 20.0 20.0 Most likely better 4 80.0 80.0 100.0 Total 5 100.0 100.0 FP2. Ability to respond to and accommodate the periods of poor manufacturing performance such as machine breakdown Ability to respond to poor manufacturing performance Frequency Percent Valid Percent Cumulative Percent Valid Most likely worse 1 20.0 20.0 20.0 Neutral 4 80.0 80.0 100.0 Total 5 100.0 100.0
  • 23. XXIII | P a g e FP3. Ability to respond to and accommodate the periods of poor delivery performance Ability to respond to poor delivery performance Frequency Percent Valid Percent Cumulative Percent Valid Most likely worse 2 40.0 40.0 40.0 Neutral 3 60.0 60.0 100.0 Total 5 100.0 100.0  Analyse (FP1 to FP3): From FP1, we found their ability increases to respond and accommodate demand variations because of their supply chain. From FP2, we found their ability doesn‟t increase to respond to and accommodate the periods of poor manufacturing performance such as machine breakdown From FP3, we found their ability doesn‟t increase to respond and accommodate the periods of poor delivery performance
  • 24. XXIV | P a g e Resource Performance (RP) Resource performance refers how efficiency and effectively resource are used to deliver customer demand. RP1. Total cost of resources used Total cost and resources used Frequency Percent Valid Percent Cumulative Percent Valid Most likely better 5 100.0 100.0 100.0 RP2. Total cost of distribution, including transportation and handling cost Total cost of distribution Frequency Percent Valid Percent Cumulative Percent Valid Neutral 2 40.0 40.0 40.0 Most likely better 3 60.0 60.0 100.0 Total 5 100.0 100.0
  • 25. XXV | P a g e RP3. Return on investment Return on investment Frequency Percent Valid Percent Cumulative Percent Valid Most likely worse 1 20.0 20.0 20.0 Neutral 3 60.0 60.0 80.0 Most likely better 1 20.0 20.0 100.0 Total 5 100.0 100.0
  • 26. XXVI | P a g e  Analyse (RP1 to RP3): From RP1, we found shwapno uses total cost of resources. From RP2, we found their total cost of distribution, including transportation and handling cost is much better because of supply chain management. From RP3, we found their Return on investment is not much better as they expected. Output Performance (OP) Output performance is the amount of energy, work, goods, or services produced by a machine, factory, company, or an individual in a period. OP1. Sales performance Sales performance Frequency Percent Valid Percent Cumulative Percent Valid Neutral 1 20.0 20.0 20.0 Most likely high 4 80.0 80.0 100.0 Total 5 100.0 100.0
  • 27. XXVII | P a g e OP2. Order fill rate Order fill rate Frequency Percent Valid Percent Cumulative Percent Valid Most likely high 1 20.0 20.0 20.0 Extremely high 4 80.0 80.0 100.0 Total 5 100.0 100.0 OP3. On time deliveries On time deliveries Frequency Percent Valid Percent Cumulative Percent Valid Most likely high 3 60.0 60.0 60.0 Extremely high 2 40.0 40.0 100.0 Total 5 100.0 100.0
  • 28. XXVIII | P a g e OP4. Customer response time Customer response time Frequency Percent Valid Percent Cumulative Percent Valid Extremely low 3 60.0 60.0 60.0 Most likely low 2 40.0 40.0 100.0 Total 5 100.0 100.0 OP5. Customer complaints Customer Complaints Frequency Percent Valid Percent Cumulative Percent Valid Most likely low 3 60.0 60.0 60.0 Most likely high 2 40.0 40.0 100.0 Total 5 100.0 100.0
  • 29. XXIX | P a g e  Analyse (OP1 to OP5): From OP1, we found their supply chain management increases their sales performance. As maximum participants reply most likely high (80%) with the statement “sales performance” From OP2, we found their supply chain management increases their order fill rate. As maximum participants reply most likely high (80%) with the statement “order fill rate” From OP3, we found their supply chain management increases their performance to deliver timely. As maximum participants reply most likely high (60%) with the statement “On time deliveries” From OP4, we found their supply chain management decreases their customer response time. As maximum participants reply most likely low (60%) with the statement “customer response time” From OP5, We found their supply chain management decreases their Customer complaints. As maximum participants reply most likely low (60%) with the statement “Customer complaints”
  • 30. XXX | P a g e CHAPTER 5: Findings & recommendation SHWAPNO has a valuable business prospect, but it needs to overcome many obstacles to fortify its place in the industry. It has entered too many unrelated markets without proper expertise and preparation, it struggles with high employee turnover, its management information system is in shambles, it is operating at a loss due to increasingly compounding interest payments to banks for the funds acquired during its initial expansion phase, it operates without standardized business process, its employees often lack job descriptions, it suffers from system and real time stock mismatch, it has started many new product categories that are lacking in product depth and product line, and lastly it suffers from poor image in the market even though the present quality of service offered by the company is way above industry standards. SHWAPNO can truly become a world class organization if it overcomes all these hurdles in the near future. Recommendation  Instead of maintaining good relation separately with every supplier, an overall integration will fetch a way more fruitful output.  Keeping regular touch with potential suppliers and involving their selves on new product launching would be an effective competitive advantage.  Treating potential suppliers as partner will create a sense of ownership on everyone which will reflect on entire affluence.  People in Bangladesh basically follow renowned actor or actresses as fashion trend. Whereas, SHWAPNO introduced new faces to their advertisement in billboard. Rather doing that SHWAPNO should introduce popular character for their billboard advertising modeling. It will help them to grab a new customer base.  There are some disadvantages of sales promotion as it makes customers and traders more price sensitive not only for the promoted brands but also for other brands as well in the same product category. So discount offer should always give once a year not more than that. Otherwise customer may used to with these offers.  Online shopping is considered to be a very helpful way of buying products through the internet especially during the holidays. SHWAPNO can also open online store so that people can give order for purchase in sitting home.
  • 31. XXXI | P a g e Reference WEBSITEs: 1. BusinessDictionary.com, Available from: http://www.businessdictionary.com/definition/supply-support.html http://www.businessdictionary.com/definition/information-system.html http://www.businessdictionary.com/definition/service-quality.html http://www.businessdictionary.com/definition/output.html [Accessed: 2nd January 2016] 2. TechTarget, Available from: http://searchcrm.techtarget.com/definition/CRM [Accessed: 2nd January 2016] 3. eHow, Available from: http://www.ehow.com/facts_5397680_risk-reward-business.html [Accessed: 2nd January 2016] 4. eresource, Available from: http://www.eresourceerp.com/What-does-supply-chain- integration-mean.html [Accessed: 2nd January 2016] 5. Study.com, Available from: http://study.com/academy/lesson/flexibility-in-fitness- definition-stretches-exercises.html [Accessed: 2nd January 2016] 6. Unknown. (2014, June 28). Company Profile. Retrieved from ACI Limited: http://www.aci-bd.com/corporate.php [Accessed: 2nd January 2016] Books: 1. Chopra, S., and Meindl, P. (2007). Supply Chain Management: strategy, planning, and operation, 3rd ed., Prentice Hall, NJ. 2. Cox, A., and Townsend, M. (1998). Strategic Procurement in Construction, Thomas Telford, London.
  • 32. XXXII | P a g e APPENDICES Appendix 1: Table given below shows the details about the participants of the study Name of the Participants Position & Other Information Nurul Islam Rupok Regional Sales Manager ACI Logistics Limited Novo tower, Level-8 Mobile: 01730028490 E-mail: rupok@acilogistics.net Natasha Rahman Head of Sales Department Shwapno,Chittagong Branch Goalpahar, Chittagong Mobile: 01922510159 E-mail: natasharahman07@gmail.com Susanta Babu Sutradhar Branch Manager Staff ID: L9735 Shwapno, Comilla Branch Badurtala, Comilla Mobile: 01936005168 E-mail: sbs@shwapno.net Md. Shafiqur Rahman Assistant Branch Manager Staff ID: L9906 Shwapno, Comilla Branch Badurtala, Comilla Mobile: 01676130063 E-mail: mdshafiq@shwapno.net Md. Abdul Hannan Sales Operator Staff ID: L9908 Shwapno, Comilla Branch Badurtala, Comilla Mobile: 01821930814 E-mail: abdulhannan413@gmail.com
  • 33. XXXIII | P a g e Appendix 2: Questionnaire Survey Questionnaire Dear Sir/Madam, We are the students of Comilla University of Dept. of management studies under BBA program, are undergoing to prepare a term paper on “The supply chain management of any organization”. We, therefore request you to fill up the questionnaire to enable us to complete the term paper. Section A: General information A1 What is your name? ---------------------------------------------- A2 Age? 22-30 31-44 Up to 44 1 2 3 A3 Gender Male Female 1 2 A4 Name of your organization? ---------------------------------------------- A5 What is your position in the company? Please indicate your field of responsibility? ---------------------------------------------- Section B: Demographic Profile Please tick at the appropriate box/column or write in your answers where appropriate B1. Business Description of company: ent product daily used product Technology Product B2. Numbers of Employees: - 100 - 250 - 500 B3. Annual sales of this company is: – 5 million – 10 million – 50 million – 100 million D4. Years of operating experience of this company: – 5 years – 10 years – 15 years – 20 year
  • 34. XXXIV | P a g e SECTION C: SUPPLY CHAIN MANAGEMENT PRACTICES Please indicate your level of agreement on the following statements based on your experience working in this company. The rating is from 1=Extremely Disagree to 5=Extremely Agree Code: Supply Support practice(SSP); Customer Relationship Management(CRM); Information System(IS); Quality Service (QS); Risk and Reward(RR) code Extremely Disagree 1 Extremely Agree 5 SSP1 Your organisation rely on few dependable suppliers 1 2 3 4 5 SSP2 Your organisation consider quality as number one criterion in selecting suppliers 1 2 3 4 5 SSP3 Your organisation strive to establish long term relationship with its suppliers 1 2 3 4 5 SSP4 Your organisation helps its suppliers to improve their product quality 1 2 3 4 5 CRM1 Your organisation frequently interacts with customers to set its reliability, responsiveness, and other standards 1 2 3 4 5 CRM2 Your organisation frequently measures and evaluates customer satisfaction 1 2 3 4 5 CRM3 Your organization frequently evaluates the formal and informal complaints of its customers 1 2 3 4 5 IS1 Your organisation shares its business units‟ proprietary information with its trading partners 1 2 3 4 5 IS2 Your organisation and its trading partners exchange information that helps establishment of business planning 1 2 3 4 5 IS3 Information exchange between your organization and its trading partners is adequate 1 2 3 4 5 QS1 Your organisation has continuous quality improvement program 1 2 3 4 5 QS2 Your organisation produces only what has been ordered by customers (pull production system) 1 2 3 4 5 QS3 Your organization‟s goods are stored at appropriate distribution points close to customers in the supply chain 1 2 3 4 5 RR1 Your supply chain members help each other finance capital equipment 1 2 3 4 5 RR2 Your supply chain members share risks and rewards 1 2 3 4 5
  • 35. XXXV | P a g e SECTION D: SUPPLY CHAIN INTEGRATION Please indicate your level of agreement on the following statements based on your experience working in this company. The rating is from 1=Extremely Disagree to 5=Extremely Agree Code: Supply Chain Integration(SCI) code Extremely Disagree 1 Extremely Agree 5 SCI1 Your supply chain establish more frequent contact with each other 1 2 3 4 5 SCI2 Your firm participates in the marketing efforts of its customers 1 2 3 4 5 SCI3 Your firm participates in the sourcing decisions of its suppliers 1 2 3 4 5 SECTION D: SUPPLY CHAIN PERFORMANCE Please indicate your level of agreement on the following statements based on your experience working in this company. The rating is from 1=Extremely WORSE/LOW to 5=Extremely BETTER/HIGH Code: Flexibility Performance(FP); Resource Performance(RP); Output Performance(OP) code Extremely Worse/low 1 Extremely Better/high 7 FP1 Ability to respond to and accommodate demand variations, such as seasonality. 1 2 3 4 5 FP2 Ability to respond to and accommodate the periods of poor manufacturing performance such as machine breakdown 1 2 3 4 5 FP3 Ability to respond to and accommodate the periods of poor delivery performance 1 2 3 4 5 RP1 Total cost of resources used 1 2 3 4 5 RP2 Total cost of distribution, including transportation and handling cost 1 2 3 4 5 RP3 Return on investment 1 2 3 4 5 OP1 Sales 1 2 3 4 5 OP2 Order fill rate 1 2 3 4 5 OP3 On time deliveries 1 2 3 4 5 OP4 Customer response time 1 2 3 4 5 OP5 Customer complaints 1 2 3 4 5