Supply chain management of Rahimafrooz ltd.

1. Presentation on case study of

2. Name Id Intake
Nusrat Jahan 1122101316 27th
Md. Shahjad Faihan 1122101330 27th
Saida Binte Reza 11122101304 27th
Mridula Islam 11122101274 27th
Md. Mahmudul Islam 1122101361 27th
Md Tanvir Faisal 1122101227 27th

3. Rahimafrooz began its operation as trading company 1945,is one of
the largest business group in Bangladesh. It sells tires, batteries,
emergency power products, diesels etc.
RBL is the largest acid battery manufacturer in BD. It
manufacture about 200 different varieties of batteries for automotive,
motorcycle, IPS and appliance batteries, industrial batteries, IPS and
UPS batteries and rectifies. Lucas and Sparta are the leading names
in the local battery market while Volta , Optus, and Delta batteries are
the fast gaining equity as international trade

4. Storage & Manufacturing:
RBL has some Storage and Manufacturing facilities in Tejgaon, Mirpur
and Saver. The raw materials for manufacturing batteries are
stored and received in this facilities. They also keep here the
product of WIP (work in process).The finished and exportable products
are stored here too.
Rahimafrooz Batteries Ltd. (RBL), do not use any third party
for warehouse because of their very own warehouse facilities.

5. Objectives of Facility:
As RBL, key focus is to provide an efficient supply chain based
workflow so they maintain different level of efficiency and
responsiveness.
Problem of facility:
 Sometime products are damaged by lacking of maintenance
 Inventories are wasted by any mishit or any unwanted disaster,
storm, heavy rainfall etc.
 Due to political instability sometime RBL cannot provide delivery in
time
 Sometime the customer demand exceeds our inventory capacity. At
that time organization cannot meet up the increase demand.

6. As a manufacturing company Rahimafrooz has a wide concern about
their inventory management. That’s why Rahimafrooz follow some rules
and regulation to manage proper inventory. According to them, they keep-
 Raw materials
 Work in process (goods )
 Finished product
Location:
Rahimafrooz maintain private warehouse facilities which situated different
place all over the Bangladesh. Their warehouses are in –
 Mirpur warehouse
 Tejgaon (Drum Factory)
 Sever (Begun Bari)

7. Managing seasonal demand:
They get statistical forecasting from their previous sales report and make
calculation of current market situation to identify the seasonal demand.
Stock safety Inventory system:
Roller racks provide the best method for storing and insuring the proper
rotation of batteries. If racks are loaded properly, the oldest battery of a
particular type will always appear in the front.
Objectives of inventory:

8. Modes of transportation :
In Bangladesh, Rahimafrooz Bangladesh Ltd. (RBL) uses two modes
of transportation-
Road: (RBL) uses truck as transport modes to send the batteries to
final consumers. They have strong transport modes by which RBL
is able to handle the transport costs efficiently and timely.
Sea: For exporting batteries in foreign countries, RBL is shipping by
sea, but they necessitate holding relatively large amounts of
inventory against the inherent uncertainty associated with to buffer
them.

9. Decision of transportation effects facility & inventory:
 The mode choice aspects of transportation decisions are one of
the more strategic decisions.These are closely related to the
inventory decisions, since the best choice of mode is often found by
trading-off the cost of using the particular mode of transportation
with the indirect cost of inventory associated with that mode; either
road or sea.
 Since,transportation is more than 30 percent of the logistics
costs,operating efficiently makes good economic sense.Shipment
sizes(Lot-for-Lot),routing,and scheduling of equipment are key in
effective management of the RBL’s transport strategy.

10. Private transportation vehicle:
 Rahimafrooz Bangladesh Ltd. use its own transportation vehicle
for shifting finished goods from factory to showroom and also for
delivery in cases. They have more than 120 trucks to carry goods.
They use own trucks to- minimize the cost, to reduce transportation
cost.
Managing transportation in emergency situation:
 Transportation is sometimes to blame for a company’s inability to
properly serve customers. Late deliveries can be the source of
service problems and complaints. Products might also incur
damage while in transit or warehouse workers might load the wrong
items at a shipping location. Such over, short, or
damaged shipments can frustrate customers.

11.  In case of emergency, RBL usually prepares a back-up plan like-
hiring third party vehicle if the location is risky or far distance, hold
extra inventory to meet up extra customer demand etc.
Objectives of transportation related decision:
 Rahimafrooz Bangladesh Ltd. Has an efficient transportation
system for their supply chain. They focus more on cost-effective
delivery than faster or quicker delivery.
 To take the transportation decision in efficient form, RBL considers
transportation costs(inbound transportation costs, inter-facility
transportation cost, outbound transportation cost),customer
location, shipment sizes ,etc.

12. Rahimafrooz has an effective IT department which is accountable to
ensure the proper support of information for the organization.
Use of Information:
To maintain exchange of information they use some supply chain
related software. This software are provides them the statistical data
for research and analysis for supply chain management of their
organization.
For Forecasting:
That Software they use are kept data history for research and analysis
or for statistical purpose. These software are providing not only current
status of supply chain progress but also anticipate the future action for
the supply chain management.

13. For customer order receiving:
They use call center related software for receiving the customer’s
orders. They also get an extra facility by using this software which is
providing customer care.
Objective of information related decision:
Though Rahimafrooz Ltd. Is responsive for their supply chain strategy
but they are mostly choose efficiency while they are making decision
for the supply chain management. Because maintain an IT department
is much expensive and it mostly operate through the machine rather
than the operative.

14. Raw materials:
As Rahimafrooz has many and different strategic business unit, they
have to use many kinds of raw materials. Their sourcing for these raw
materials is complex too. Because, a particular type of raw material
can be required for more than one type of product.
Some of their raw materials are come by sea mode from
aboard. They shipped that raw materials by ship in the port, undock it
there. After that they use container carrier to deliver the product to the
different factory in the different locations.
Plastic Acid Chemical
Alloy Rubber Iron
Energy cell Industrial fiber Wire cable

15. Sometimes they faced difficulties regarding sourcing. For
example, political turmoil and sudden price hike of raw materials etc.
Beside this, the late of getting shipments because of weather and
international event are creating some barriers in sourcing of raw
materials.
Like most of the manufacturing company Rahimafrooz also
have rules for handling the emergency situation. They keep safety
inventory method and fi-fo method to backup those emergencies. They
also make orders for raw materials in a perfect time so that the
production will keep running.

16. Types of pricing strategy used:
Cost plus pricing:
Cost-plus pricing is a pricing strategy in which the selling price is
determined by adding a percentage markup to a product's unit cost. In
here RBL add their additional expenses like, fixed cost, variable cost,
utility cost and also related direct, indirect expenses etc.
Value based pricing:
In this strategy RBL, decide their products price by measuring the
value a customer getting after obtaining it. They also consider the
experience, service and other values in this strategy.

17. Pricing: managing demand strategy
The relationship between demand and price is a positive correlation;
meaning if demand increases, then price will increase as well. RBL
increases its products price like – batteries, IPS etc. when the demand
toward these products increases.
Promotional pricing strategy:
Promotional pricing is a kind of tools that help to attract customer to
purchase the product. RBL uses this technique to increase customer
interest, by providing discount, offers, bonus through newspaper,
magazines, billboard and using other media.

18. Role of pricing in competitive strategy:
RBL seeks to satisfy customers offering high quality and innovative
products with reasonable price. RBL is somewhat responsive in
fulfilling customer’s demands and somewhat

19. The
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