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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 SHWAPNOs business model and market positioning. SHWAPNOs
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 SHWAPNOs outlets to send a sales
transfer order based on present days 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 SHWAPNOs 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 outlets 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 ICIs Bangladeshi operations.
SHWAPNO, a concern of ACI group established in 2008 is an integral part of the overall ACI
group. It represents and exemplifies ACIs 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 peoples 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.
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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.
3.4 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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VII | P a g e
Extremely disagree
Most likely disagree
Neutral
Total
2
2
1
5
40.0
40.0
20.0
100.0
40.0
40.0
20.0
100.0
Cumulative
Percent
40.0
80.0
100.0
VIII | P a g e
1
1
2
1
5
20.0
20.0
40.0
20.0
100.0
20.0
20.0
40.0
20.0
100.0
Cumulative
Percent
20.0
40.0
80.0
100.0
40.0
40.0
Neutral
Most likely agree
Total
1
2
5
20.0
40.0
100.0
20.0
40.0
100.0
Cumulative
Percent
40.0
60.0
100.0
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Extremely disagree
Neutral
Most likely agree
Total
1
1
3
5
20.0
20.0
60.0
100.0
20.0
20.0
60.0
100.0
Cumulative
Percent
20.0
40.0
100.0
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Valid
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40.0
40.0
3
5
60.0
100.0
60.0
100.0
Cumulative
Percent
40.0
100.0
CRM3. Frequently evaluates the formal and informal complaints of its customers
Valid
Valid
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2
3
5
40.0
60.0
100.0
40.0
60.0
100.0
Cumulative
Percent
40.0
100.0
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IS3. Information exchange between your organization and its trading partners is adequate
2
1
2
5
40.0
20.0
40.0
100.0
40.0
20.0
40.0
100.0
Cumulative
Percent
40.0
60.0
100.0
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Cumulative
Percent
20.0
20.0
20.0
4
5
80.0
100.0
80.0
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
Valid
Extremely disagree
Most likely disagree
Total
3
2
5
60.0
40.0
100.0
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
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QS3. Organizations 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
Valid
Neutral
Most likely agree
Extremely agree
Total
1
2
2
5
20.0
40.0
40.0
100.0
20.0
40.0
40.0
100.0
Cumulative
Percent
20.0
60.0
100.0
From QS3, we found their organizations goods are stored at appropriate distribution points close
to customers in the supply chain. As maximum participants extremely agree (40%) with the
statement organizations goods are stored at appropriate distribution points close to customers
in the supply chain
Valid
Extremely disagree
Most likely disagree
Total
3
2
5
60.0
40.0
100.0
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
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1
1
2
1
5
20.0
20.0
40.0
20.0
100.0
20.0
20.0
40.0
20.0
100.0
Cumulative
Percent
20.0
40.0
80.0
100.0
XIX | P a g e
Valid
XX | P a g e
Extremely disagree
Most likely disagree
Most likely agree
Total
1
2
2
5
20.0
40.0
40.0
100.0
20.0
40.0
40.0
100.0
Cumulative
Percent
20.0
60.0
100.0
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Neutral
Most likely better
Total
1
4
5
20.0
80.0
100.0
20.0
80.0
100.0
Cumulative
Percent
20.0
100.0
FP2. Ability to respond to and accommodate the periods of poor manufacturing performance
such as machine breakdown
Valid
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FP3. Ability to respond to and accommodate the periods of poor delivery performance
2
3
5
40.0
60.0
100.0
40.0
60.0
100.0
Cumulative
Percent
40.0
100.0
XXIII | P a g e
100.0
100.0
Cumulative
Percent
100.0
Neutral
Most likely better
Total
2
3
5
40.0
60.0
100.0
40.0
60.0
100.0
Cumulative
Percent
40.0
100.0
XXIV | P a g e
1
3
1
5
20.0
60.0
20.0
100.0
20.0
60.0
20.0
100.0
Cumulative
Percent
20.0
80.0
100.0
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Neutral
Most likely high
Total
1
4
5
20.0
80.0
100.0
20.0
80.0
100.0
Cumulative
Percent
20.0
100.0
XXVI | P a g e
1
4
5
Valid Percent
20.0
80.0
100.0
20.0
80.0
100.0
Cumulative
Percent
20.0
100.0
3
2
5
60.0
40.0
100.0
Valid Percent
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
XXVII | P a g e
Extremely low
Most likely low
Total
3
2
5
60.0
40.0
100.0
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
3
2
5
60.0
40.0
100.0
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
XXVIII | P a g e
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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]
4. eresource, Available from: http://www.eresourceerp.com/What-does-supply-chainintegration-mean.html [Accessed: 2nd January 2016]
5. Study.com, Available from: http://study.com/academy/lesson/flexibility-in-fitnessdefinition-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.
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APPENDICES
Appendix 1: Table given below shows the details about the participants of the study
Natasha Rahman
Sales Operator
Staff ID: L9908
Shwapno, Comilla Branch
Badurtala, Comilla
Mobile: 01821930814
E-mail: abdulhannan413@gmail.com
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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?
A3
Gender
A4
A5
---------------------------------------------22-30
31-44
Up to 44
Male
Female
1
2
3
1
2
----------------------------------------------
----------------------------------------------
- 100
- 250
- 500
Technology Product
B3. Annual sales of this company is:
5 million
10 million
50 million
100 million
code
Extremely
Agree 5
SSP1
SSP2
SSP3
SSP4
CRM1
CRM2
CRM3
IS1
IS2
IS3
QS1
QS2
QS3
RR1
RR2
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code
SCI1
SCI2
SCI3
Extremely
Agree 5
code
Extremely
Better/high
7
FP1
FP2
FP3
RP1
RP2
1
1
2
2
3
3
4
4
5
5
RP3
Return on investment
OP1
Sales
Order fill rate
On time deliveries
Customer response time
Customer complaints
1
1
2
2
3
3
4
4
5
5
1
1
2
2
3
3
4
4
5
5
OP2
OP3
OP4
OP5
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