Identifying the Major Challenges of Supply Chain Management of Superstore for Sinha Ltd

MASTER PAPER On IDENTIFYING THE MAJOR CHALLENGES OF SUPPLY CHAIN MANAGEMENT OF SUPERSTORE FOR SINHA LTD

Prepared For Ms. Rabeya Rahman Lecturer Department of Management Studies Jagannath University Dhaka.

Prepared By MUHAMMAD ZAHID HOSSAIN SHIKDER Roll No # 085587 Section: B Department of Management Studies Academic Session: 2007-2008 MBA Program 2

nd

batch 3rd semester

Jagannath University Dhaka.

Date of submission: DECEMBER 11, 2011 1

Letter of Transmittal December 12, 2011

Ms. Rabeya Rahman, Lecturer Department of Management Studies Jagannath University, Dhaka. Subject: Solicitation for Acceptance of the Report. Dear Madam, We are pleased to submit the report title “Identifying the Major challenges of Supply chain Management of Superstore for Sinha Ltd.” as requirement of on going MBA program. We have tried our best to make this report holistic and informative enough. All the works presented here is done with utmost sincerely and honestly. Thank you for your cooperation and guideline. Working with such an interesting program has given us the opportunity to achieve experience on it. I will be highly encouraged if you are kind enough to receive this master paper. I am always available for any future quarries regarding this paper.

Yours truly

Md. Zahid Hossain Shikder. MBA Program, 2nd batch Department of Management Studies Jagannath University, Dhaka.

2

Department of Management Studies Jagannath University, Dhaka

Acceptance Letter

This is to certify that the presented report entitled “Identifying the Major challenges of Supply Chain Management of Superstore for Sinha Ltd.” has been carried by Muhammad Zahid Hossain Shikder, Id No. 085587, MBA Program 2nd batch, Department of Management studies, Jagannath University, Dhaka, under my direct supervision. I recommended the prepared report as can be accepted in the fulfillment of the requirements for the degree of Master of Business Administration.

Ms. Rabeya Rahman Lecture Department of Management Studies Jagannath University, Dhaka

3

Acknowledgement At the very first moments, thanks to almighty Allah for especial blessing in completing the research proposal. A single individual can achieve no Nobel objective. I am indebted to a number of persons for their kind advice, suggestion, direction cooperation that enable me to have an experience in the dynamic and challenging environment of the supply chain sector ultimately to prepare this paper. There are many people involved in the process of my thesis and motivated me in one way or another and, as well, make my academic work more fruitful. I am indebted to the honorable supervisor, Ms. Rabeya Rahman,

Lecturer, Department of

Management Studies, Jagannath University for his meticulous support and direction in preparing the paper. His valuable suggestions and guidance helped me to prepare the paper on such a lively issue. It gives me immense pleasure to thank large number of individuals who have contributed directly in this paper for their help and encouragement. I express my sincere gratitude to this people for helping me providing information’s whenever I asked for it. I express my sincere gratitude to honorable senior executive (Sinha Ltd) Md.Gaish Uddin Miron, Certified Supply Chain Manager (ISCEA, USA) for helping me providing information’s, whenever we asked for it. Without their kind co-operation in all respect it would not been possible for me to prepare this paper. Furthermore, I would like to express my gratitude to all our respondents who spent their valuable time answering my questions. Without their cooperation, my paper would not be completed.

Executive Summary 4

Chapter 1- In this chapter I have summarized the most common definition in the field of supply chain and major challenges of supply chain management which are facing the superstores in Bangladesh. This proposal has been designed with statement of the problem, literature review, objectives of the research, benefit of the research, plan of the study, research methodology. Chapter 2- This chapter provides the real condition of retail chain of Bangladesh and focuses on how superstore is increasing their efficiency with proper branding and how supply chain create impact on superstore perishable items. Chapter 3- This chapter highlights the overall corporate information for the organization and future orientation with vision and mission statement and describing the present condition by the basis of SWOT analysis. Chapter 4- In this chapter I have analyzed the practical experience which I have gathered by doing my research works about specialized functional areas in the organization. The major functions have been categorized in this chapter also. Chapter 5- This chapter provides the retail supply chain elements with major challenges of a superstore and analysis these problems in a systematic process. Organized retail and supply chain relationship also been discussed in this chapter. Chapter 6- In this chapter I’ve drawn a conclusion and give some recommendation about the relationship with superstore and supply chain. I’ve been trying to find solutions with the help of efficient supply chain processes.

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Table of content

S. l No.

Chapter particular

Pages

Letter of transmittal Acceptance Letter Acknowledgement Executive Summary

Chapter One 1.0 1.1 1.2 1.3 1.4

Introduction Statement of the Problem Objectives of the Study Methodology of the Study Literature Review

01 01 03 04 07

Chapter Two 2.0

Scenario regarding the main topic of the report in

09

Bangladesh.

Chapter Three 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

An overview of the organization Background Corporate information Organization structure Number of branches Number of employee Vision statement Mission statement products

12 12 14 16 18 18 19 20 21

3.9

Principal Activities

23

3.10 3.11

SWOT analysis Action plan

23 25

Chapter Four

4.0

Practical experience gathered through doing 6

26

research works Chapter Five

5.0

Finding and analysis regarding the objectives of

26

5.1 5.1.1 5.1.2 5.1.3 5.1.4 5.2

the study including problem identified Retail Supply Chain Elements Merchandise Management Processes Sourcing process Logistics Management Processes Customer Service Processes Identifying Major Supply Chain Management

27 28 29 29 29 30

5.2.1 5.2.2 5.2.3 5.2.4

Challenges In “Me and Mom” Superstore Merchandise Management Processes Sourcing process Logistics Management Processes Customer Service Processes

30 33 34 36

5.3

Interpreting the Data from the Likert Scale

38

7

Chapter Six

6.0 6.1

Conclusion Recommendation

45 46

End Matter Reference

48

Questionnaire

8

Chapter One 1.0 Introduction Organized retailers in the country are focusing more on strengthening their backward linkage supply chain, a challenge faced by retail chain shops for product availability. As the superstore concept is not very traditional the superstore biggies have failed to grow accordingly due to proper and sufficient supply chain management. The most organized and disciplined retailers are trying to maintain their own supply chain management to bring fresh and quality products to the store in urban area from root level farmer directly. A supply chain management consists of all parties involved directly or indirectly. I have focused here about major challenges of supply chain management which are facing the superstores in Bangladesh. This proposal has been designed with statement of the problem, literature review, objectives of the research, benefit of the research, plan of the study, research methodology. Supply chain management is a systematic effort to provide integrated management to the supply value chain in order to meet customers need and expectation from suppliers of raw materials through manufacturing and on to end customer. A supply chain consists of all parties involved directly or indirectly. Supply chain is the most important and first challenge to sustain business and retain the customer. As a supermarket perspective supply chain management is a circle bringing the rural products to the urban shops. Later the Internet revolutionized the value chain by the hype around online food retailing and the more serious introduction of Business-to-Business ecommerce. In recent year a number of e-marketplaces will become mature by introducing new

communication

standards

and

Collaborative

Planning,

Forecasting

and

Replenishment.

1.1

Statement of the research problem

Bangladesh is going through a retail revolution. All the big business houses are entering this sector and it is growing very past pace. Superstores are set to boom in the country as the current market players are planning to open several hundred more outlets in the next few years to cope with the rising demand from the consumers. With a strong 15-20 per cent annual sales growth, about 30 companies with more than 200 outlets have already made foray into the industry since Rahimafrooz, one of the largest business groups in 9

Bangladesh, introduced Agora, a chain superstore, in the capital a decade ago. However, our country also poses a big challenge to organized large retailers particularly in food sector. Food being perishable item, for the retailer to be successful the key is proper supply chain management. The challenge comes from a number of factors, e.g. huge size and population of our country, varied culture and hence varied taste, very poor infrastructure like improper roads, bad connectivity between production centers and markets, lack of proper cold chain facility like refrigerated transportation, ware-housing etc. Under these circumstances it is interesting to find out how large organized retailers are coping up with these problems. In this paper a comparative study is made in supply chain management adopted by different players in food and grocery segments. Hasslefree shopping environment, hygienic commodities, fresh vegetables, meat and fish at the supermarkets are earning appreciation of the customers. The supermarket biggies have attempted the massive expansion drive to attract the shoppers, who still depend on unplanned wet markets to buy their daily essentials. They say that a rise in organized retailing would offer the consumers hygienic foods at competitive prices, compared to those offered by retailers in the kitchen markets, where commodities are sold mostly in unhygienic condition. The rise in the number of supermarkets, according to analysts, will diversify the choices of consumers and boost their spending, so much needed for economic growth, while the wet markets will also improve quality and services following in the footsteps of supermarkets. Fresh vegetables directly collected from the farmers are one of the key reasons behind the increasing popularity of the stores in Dhaka. But some challenges are increasing day by day. The business suffers from poor organization in the purchase of supplies. The purchasing of goods and services for the business use is known as Procurement. There are three managers who all participate in the purchase of items; each person purchases items they think necessary often leading to double orders or items not being bought at all. There are several suppliers used some of which deliver while others operate a cash and carry policy, causing partners to use their own transport. Although several suppliers are utilized, the lack of regular custom by the company causes lack of interest by the suppliers and so the company misses out on priority service and possibly loyalty bonuses sometimes offered by these outlets designed to encourage repeat custom. Due to the power that comes with control over consumer contacts, retailers are often dominant in a supply chain. Closeness to end consumer markets gives retailers fast and precise information about matters such as shifting fashion preferences and attractiveness of competitor’s offerings, comparable to continuous market research. Even 10

though power is no end in itself, it does include the opportunity to organize the supply chain in a suitable way. Many challenges face retailers today. Expanding product variety, greater fluctuations in demand, and shorter and shorter product life cycles make time-tomarket reductions essential. The ever-increasing need for reduced lead times continues. Maximum coordination of work in and between companies is therefore necessary, as otherwise it will lead to higher costs as well as to longer lead times. There is however no single best way to manage a supply chain; the way retailers compete in consumer markets influence what should be focused on. As no company can be everything for everyone, there is interdependence between what a company sets out to be for a consumer, i.e. the company’s value proposition, and that company’s supply chain. According to Christopher (1997), a value proposition concerns how, where, and when a company creates value for its customers, and that all activities - from product development to order fulfillment should be based upon it. This thesis’ research purpose is to investigate the relationship between retailers’ value propositions and their supply chains. A prerequisite for sustainability is that there is a match between what is offered to consumers and the organization of the supply chain activities. It is not enough to be knowledgeable about competitors and customers’ preferences to perform well. Supplying consumer goods in a disorganized or inefficient manner will wipe away the chances of making profits. This was evident in the dot com death where so called e-retailers lacking logistical expertise were 3 driven out of business; left are more or less traditional and experienced storebased retailers and mail order companies who have added just another sales channel - the web. Profound understanding about how factors such as type of product, fashion content, demand pattern, assortment width, service level, and location is related to supply chain work, are therefore crucial.

1.2

Objectives of the study

The main objective of this proposal is: How supermarket could focuses their supply chain problem and where need to take proper guidance. The research proposal has the following objectives:

11



The development and standardization of specific methodology to collect

 

information of each business process. The problems encountered throughout the whole chain. To re-design and propose required business processes in order to develop an

 

effective SCM system for this industry. To identify the relationship with customer and supplier for real time information. To identify the area in supply chain where special focus is require.

1.3

Methodology of the Study

1.3.1

Sources of Data

To accomplish these paper two types of data sources have been used: 1. Primary Data 2. Secondary Data Primary sources are: • Customer’s attitude towards “Me and Mom” • “Me and Mom” Sales Person Behavior • Checkout Counter System • Flyers & Banners placement for discount • Salesperson’s Comments • Interviewing Customer Manager

Secondary sources are: • Sinha Ltd’s Web • Competitors Report • Newspaper Articles

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1.3.2

Scaling Technique

One scaling techniques will use in final questionnaire. Five-point likert scales (1 for strongly disagree to 5 for strongly agree) will use to measure consumer response regarding for superstores.

1.3.3

Sample Plan

The sample plan covers target population, sampling frame, sampling technique and sample size.

1.3.4

1.3.5

These are presented below:

Target population 

Elements: The sample elements for the research are the Male and



Female customer and supply chain managers. Sampling Units: Main superstores, supply chain managers,



customers. Extent: Main areas in Dhaka City.

Sampling Frame

There was no such structured sampling frame that could be gathered conveniently.

1.3.6

Sampling Technique

As there was no structured sampling frame, non-probability convenience sampling technique had been used to collect the desired data for the research.

1.3.7

Location/Geographic coverage

The research will conduct in Dhaka city. The survey for research will conduct in Sinha Ltd, superstores in Dhaka.

1.3.9

Sample Size 13

The sample size of the research shall 20.

1.3.10

Method of Analysis

I will use statistical techniques weighted average, tabular presentation. To analyze the collected data from primary sources, some statistical method like weighted average, cross tabulation will use and the actual situation in implementation and its problems has driven. Weighted Average XW = ∑ Wx /∑ n Here X = The variable, and n= number of total respondents.

1.3.11 

Limitations of the Research The sample size of 20 respondents will not represent the whole population of concerning to this sector. This limitation result from shortage fund and time constraint.



Unequal distribution of respondents across different survey areas is another limitation.



Absence of similar research activities in the context of Bangladesh has restrained the researcher from getting valuable insight and direction of such research activities.



The lack of experience on the part of the researcher in conducting such research is still another area that limits the scope of the research.

14

1.4

Literature Review

Supply Chain Management The Council of Supply Chain Management Professionals (CSCMP) defines Supply Chain Management (SCM) is “the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.” It also includes coordination and collaboration with channel partners which help to integrate supply and demand

management within and across companies. (See http://cscmp.org)

The activities from each point to point of the chain may be counted as the flow of valueadded activities. Supply chain management is defined as the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer et al., 2001, p. 18). Supply Chain Management is a network of facilities that produce raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system. It spans procurement, manufacturing and distribution (Lee & Billington 1995) the basic objective of supply chain management is to “optimize performance of the chain to add as much value as possible for the least cost possible”. In other words, it aims to link all the supply chain agents to jointly cooperate within the firm as a way to maximize productivity in the supply chain and deliver the most benefits to all related parties (Finch 2006). Adoption of Supply chain management practices in industries has steadily increased since the 1980s. A number of definitions are proposed and the concept is discussed from many perspectives. However Cousins et al. (2006); Sachan and Datta (2005); Storey et al. (2006) provided excellent review on supply chain management literature. These papers define the concept, principals, nature, and development of SCM and indicate that there is

15

an intense research being conducted around the world in this field they critically assessed developments in the theory and practice of supply management. The phrase supply chain management (SMC) lacks a clear definition. A literature review reveals that it has become an expression in business literature used to incorporate almost anything within the field of marketing and logistics. To give one example: Ross (1997) considers SCM to be no less than a method, a concept, a philosophy, a system, a process, a strategy, and a state of mind. With such an all-embracing depiction it is hard to grasp what it really is; below we will look into what we consider to be the constituent parts of SCM. “A supply chain is the set of entities that collectively manufactures a product and sells it to an endpoint.” (Stern et al, 2001, p.513) The ultimate beginning point is where raw materials are being extracted and the end point would be where goods and services are being consumed, or perhaps even recycled. However, this view is extremely comprehensive (read theoretic) and obviously very difficult to put into a practical context. Therefore, the business view on supply chains is somewhat arbitrary, leaving managers to decide their own boundaries of the supply chain. (Ibid) The alignment of firms is in the literature alternating called a supply chain, a demand chain, a value chain, or a marketing channel. A major concept in supply chain literature is the alignment of supply chain initiatives with the overall business strategy of a company. Porter (1996) differentiates between operational effectiveness and strategy. Porter notes that recent business trends have focused on improving operational effectiveness, which at a generic level involves performing the same activities better than competitors. Conversely, strategic positioning involves performing different activities than competitors or performing the same activities differently. Hammer (2004) defines the use of different or differentiating methodologies to perform activities as operational innovation.

16

Chapter Two 2.0

Scenario regarding the main topic of the report in Bangladesh Retailing is a distribution channel function where one organization buys products

from supplying firms or manufactures the product themselves, and then sells these directly to consumers. A retailer is a reseller (i.e., obtains product from one party in order to sell to another) from which a consumer purchases products. In the majority of retail situations, the organization from which a consumer makes purchases is a reseller of products obtained from others and not the product manufacturer. As a reseller, retailers offer many benefits to suppliers and customers. Again, consumers the most important benefits relate to the ability to purchase small quantities of a wide assortment of products at prices that are considered reasonably affordable. For suppliers the most important benefits relate to offering opportunities to reach their target market, build product demand through retail promotions, and provide consumer feedback to the product marketer. In Bangladesh, as in many other Asian countries, many small- and medium-sized businesses have been built around the retail sector and are often associated with small shops and restaurants. The retail sector provides employment for a large number of people, but it still remains relatively underdeveloped, due to a generally low level of income among the population. There are still a number of small family-run traditional shops and cafes, selling mainly locally-made products. Superstores are booming in urban areas as major players go for expansion by banking on well-heeled consumers and middle-class people, industry people said. Retail shops have been faring well for the last two years, with the annual sales growth touching to as much as 30 per cent, they added. The sector is dominated by about 15 companies that operate 100 outlets. Of them, Agora now operates 10, Meenabazar 11, Shwapna 42, Nandan five and Prince Bazar two outlets. The annual turnover of the superstores stood at around Tk 20 billion (2000 crore) in 2010 which was Tk 15.0 billion in 2009, according to data from Bangladesh Supermarket Owners' Association (BSOA). "Supermarket culture is growing fast creating awareness among the consumers about the features of products," President of BSOA Niaz Rahim told the FE. This culture has 17

established customer service in retailing and also a relation of faith among the suppliers, customers and the owners of superstores, he said. Suppliers are now well organized with their identity such as trade license, VAT registration and a mailing address, he said, adding farmers get instructions on how to grow and how to preserve the products to ensure quality. Though the industry has passed 10 years, the main challenge is supply chain which is still far from satisfactory, Mr Rahim, who is also the group director of Rahimafrooz that operates Agora, said. "When we started, we did not grow accordingly for lack of supply chain; products didn't arrive as there was inconsistency and damage of products," he said. "Money can establish a shop but it is difficult to supply the products to the shelves especially the perishable items," he said. And no such organized supply chain is yet to be developed in Bangladesh, but

the

retailers

are

trying

to

develop

their

own,

he added.

ACI Logistic that started Shawpno in a large scale across the country stumbled and brought down the number of its outlets to 42 from 65, mainly due to failure in maintaining supply chain, persons familiar with the situation said. The company is now focusing

on

its

supply

chain

management,

they

said.

Shaheen Khan, head of operations of Meenabazar, said superstores are doing well in terms of expansion as major players have started adding more and more outlets over the last two years. "But the sector is still in its formative stage as the massive expansion has taken place in last two years," Mr Khan said, adding Meenabazar has opened two new outlets and will launch three more in December in Dhaka. The company has contract farming arrangement with farmers outside Dhaka in a bid to strengthen the supply chain especially vegetables and organic products, he said, adding it also imparts training to the farmers on cultivating organic products. By year end, there will be 15 outlets of Meenabazar, he said, adding they have planned to open more than five outlets next year. The future of the sector is promising, he said, explaining life style of urban people is changing fast with full of activity. Echoing Mr Khan, the BSOA president said the commodity prices also will stabilise within next three to five years when the supermarket culture is fully established. There will also be a big jump in internal government revenue collection, huge investment in food processing sector and most kitchen markets will come under a systematic way ensuring fair price to farmers, Mr Rahim explained. Due to massive expansion of superstores, farmers will no more be needed to turn to the multistage intermediation as they will be able to establish direct linkage with the chain stores operators. "As a result, they (farmers) will no more be cheated," Zakir Hossain, general 18

secretary of BSOA, said. Mr Hossain lamented that they did not get the required assistance from the government, although they were paying taxes. There should be a single regulatory body to monitor the growing industry. The association will celebrate its 10th anniversary on December 17 when it will also organize a fair in the capital. For this reason, BSOA has arranged a campaign of two months to create awareness among the consumer. In 2010 Sinha Ltd. has launched a superstore at Moammadpor. They are also trying to start new branch at Mirpur. Source: Superstore sales top 20b last year, The Financial Express, November 2011 In Bangladesh supply chain management is innovative concept. But it is must needed to reduce cost. In Bangladesh superstore concept has been increasing for last decade. In superstore fresh vegetables, meet, dairy and fruits depend on efficient supply chain. So superstore authorities are focusing more on supply chain management because 60-70 percent sales on fruits and vegetables. In Bangladesh efficient supply chain hasn’t been establishing by many reasons, those are given bellow:       

Infrastructure is mot much developed in Bangladesh. Transportation Moods are not very good. Don’t have qualified suppliers. Suppliers don’t focus branding elements. Product delivery time is high. Too much traffic congestion. Product waste is high.

Bangladesh is developing in supply chain day by day. Global sourcing, FDI, MSE, also play an important role for focusing on supply chain management. Most of the manufacturing and service companies are trying to create an efficient integrated supply chain system.

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Chapter Three 3.0

An Overview of the Organization

3.1

Background

The concept of a self service grocery store was developed by American Entrepreneur Clarence Saunders and his Piggly Wiggly stores. His first store opened in Memphis, Tennessee, in 1916.Saunders was awarded a number of patents for the ideas he incorporated into his stores. The stores were a financial success and Saunders began to offer to offer franchises. The Great Atlantic and Pacific Tea company was another successful early grocery store chain in Canada and United States and became common in North American cities in 1920. Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. In the 1940s and '50s they became the major food marketing channel in the U.S.; the 1950s also saw them spread through much of Europe. Their growth is part of a trend in developed countries toward reducing cost and simplifying marketing. In the 1960s supermarkets began appearing in developing countries in the Middle East, Asia, and Latin America, where they appealed to individuals who had the necessary buying power and food storage facilities.

A superstore in Sweden in 1941

20

In the early days of retailing, all products generally were fetched by an assistant from shelves behind the merchant’s counter while customer waited in front of the counter and indicated the item they wanted. Also most food and merchandise did not come in individual wrapped consumer sized packages, so an assistant had to measure out and wrap the precise amount desire by the consumer. This also offered opportunities for social interaction: many regarded this style of shopping as "a social occasion" and would often "pause for conversations with the staff or other customers. These practices were by nature very labor-intensive and therefore also quite expensive. The shopping process was slow, as the number of customers who could be attended to at one time was limited by the number of staff employed in the store.

In parts of South East Asia, supermarkets account for more than half of retail food sales. In China, which has relatively low per capital retail sales through modern markets, growth has still been rapid. Hypermarkets and superstores roughly grew in number from 400 in 2002 to 1,400 in 2007, and supermarkets and next door stores from roughly 3,200 to 5,200 over the same period. Source: www.planetretail.net

Managing supply chain is core to a retailer’s business since one of the important value addition, a retailer does is moving the product from the point of origin or the source to the point of consumption. There is several supply chain processes involved in this like sourcing, transportation, warehousing, inventory management, cold chain management etc. Retailers also need to take care of several other supply chain issues like which products to stock, how to price their products and how to handle the reverse logistics. Increasingly retailers are handling their inbound logistics by setting up 21

their own distribution networks. We believe that a vital criterion for success in future would be the ability to harness worldwide distribution and logistics network for purchasing. This global supply chain should ensure high levels of product availability that consumers want to buy.

3.2

Corporate Information

3.2.1 Company Executives Nasir-ur Rahman Sinha Chairman Mr Nasir-ur Rahman Sinha, Chairman of the The ACME Laboratories Ltd., obtained M.A. in political science from Dhaka University in 1965 and is a pioneer manufacturing industrialist having vast entrepreneurial foresightedness of business. He is also the Chairman of "Sinha Printers Ltd" engaged as

a pharmaceutical packers and printers unit. He is connected with

Dhaka Stock Exchange Ltd. since 1969 and is also a member of D.S.E. He is the Managing Director of National Equities and Financial Promoters Ltd. (Securities and Investment Advisor). He is also the Director of "Sinha Fabrics Ltd", "Sinha Wool Wears Ltd", ACME IT Ltd" and "The ACME Agrovet and Beverage Ltd"

Mizanur Rahman Sinha Managing Director Mr. Mizanur Rahman Sinha obtained his graduation degree in Commerce in 1962. He started his career as a banker in Habib Bank Ltd. of then Pakistan. After eleven years of service in different senior positions, he left to join ACME as its Marketing Director in 1975. He is also the founder Chairman of J. K. Fashions Ltd., Sinha Knitting Ltd. and Sinha Fabrics Ltd. All companies are exportoriented in scope. 22

Afzalur Rahman Sinha Deputy Managing Director Mr. Afzalur Rahman Sinha graduated from the University of Dhaka with a degree in Science in 1973. He then proceeded to the United States to further his studies in Business Administration in 1980. During his studies he worked as an Analytical Chemist at the University of Missouri in the United States. He then returned to Bangladesh in 1982 to join ACME as its Deputy Managing Director. He is also the Managing Director of Sinha Wool Wears Ltd., a Director of Sinha Fabrics Ltd. and J. K. Fashions Ltd. He was a Freedom Fighter and was active in the Southwest front during the Liberation War of Bangladesh. He is the Director of Abahani Ltd., a leading sports club in the country. He is also the Vice President of the Bangladesh Hockey Federation and the Bangladesh Billiard & Snooker Federation. He is also the Treasurer of the Bangladesh Cricket Control Board.

is protecting

a complete

healthcare powerhouse committed to

and improving the health and well-being. She has a wide portfolio of

Pharmaceutical Products

across

the Therapeutic

both Human and Animal Health. Her growing Herbal

Spectrum for

repertoire of Products are

based on man’s symbiotic relationship with mother nature and her abundant resources. With the signing up with one of the leading Indian Herbal Healthcare majors,

Himalaya, Acme also

wants

to

focus

more

on

developing safe, natural and innovative remedies that will help people lead richer and healthier lives. ACME Group is one of the leading and diversified global conglomerates in Bangladesh, with offices in all major cities, employing over 3000+ employees and dedicated to bringing the highest quality products and services to our customers. We have an annual turnover of US $60 million with diversified interests in Pharmaceuticals, FMCG, Information Technology Services, Aviation Services, Printing & Packaging Services, Trading Services, C & F Services, Apparels and more. The conglomerate has an outstanding record of all around excellence and growth in the relevant business activities. The ACME Laboratories Ltd, the pharmaceutical major and the flagship Company of the ACME Group, is a Manufacturer and Global exporter of Human, Herbal and Veterinary Pharmaceutical products. Our comprehensive

23

Product List ranges from Antibiotics to Histamines to Vitamins. Certifications include: ISO 9001:2008.

The Company has adopted ISO-9001 and WHO CGMP (Current Good Manufacturing Process) Standards and has been accredited with ISO-9001 certification in 1999. The entire manufacturing procedure, starting with the incoming raw materials, through stringent intermediate manufacturing process and packaging of products, to the dispatching of finished goods, requires that analysts, pharmacists and instructors monitor and control each step. Even after the release of finished goods, the quality control lab tracks post-distribution spot checks of all batches. Acme's Quality

Assurance

Department

is

equipped with

the most

modern

instruments and is staffed with well trained and qualified personnel. All procedures for testing, sampling and inspecting are clearly approved, implemented and documented. All instruments are regularly calibrated and processes, machinery and premises validated. Through training programs (in-house and abroad), the key personnel of the company remain abreast of the latest concepts of Quality Assurance.

3.3 Organization Structure The organizational structure of a retail store will vary by the size and type of the business. Most tasks involved with operating a retail business will be the same. However, small or independent retail stores may combine many sectors together under one division, while larger stores create various divisions for each particular function along with many layers of management. For example, the small specialty shop may have all of its employees under one category called Store Operations. A large department store may have a complete staff consisting of a manager, assistant manager and sales associates for its Sporting Goods department, Home and Garden, Bed and Bath, and each additional department. In order to define the store's organization, start by specifying all tasks that need to be performed. Then divide those responsibilities among various individuals or channels. Group and classify each task into a job with a title and description. The final step is to develop an organizational chart.

24

25

3.4 Number of Branch Sinha Ltd is one of the biggest business organizations in Bangladesh. This organization has launched their business in many sectors. Retail chain is innovative sector in Bangladesh. Sinha Ltd has launched in this sector in 2010 at Mohammadpur. This organization

is working to start a new outlet in Pollobi at Mirpur.

Number of outlets: Based on

Place of outlet

Dhaka

Mohammadpur

Dhaka

3.5

Pollobi

Number of Employees

Generally 40-50 people need to run a superstore. In recent years lot of jobs opportunities are being created both male and female. “Me and Mom” the brand name of superstore owned by Sinha Ltd. The total number of employee has been given bellow.

n

%

Male

55

84.62

Female Total

10 65

15.38 100

The above table shows the number of people employed in “Me and Mom”. Its shows that out of 65 employees the number of male employee is 55 which are 84.62% of the total employee and rest 10 (15.38%) are female employees.

26

3.6 Vision Statement Bangladesh is a highly populated country. Most of the people are poor in this country. But recent years the development of the information technology provides great opportunity for the overall development in the country. Living standard is increasing day by day in this country. It is good news for Bangladesh. Dynamic economy creates a lot of chance to invest in efficient sectors. Retail chain is innovative sector in recent time because of low cost products and organized shopping. Sinha Ltd. has been operating there business since many years in this country. Sinha Ltd. started the new business in retail chain by the brand name of “Me and Mom”. The main vision statement is to provide the retail chain service for the middle class family permanently. But a decade ago, the retail-level trade was in the hands of thousands of small traders in the wet markets and the grocery shops in cities and remained out of the focus of the big business houses. In the past decade, many small and big supermarkets made debut, successfully attracting middle and upper middle class consumers, a section of whom is gradually turning to chain stores from the wet or kitchen markets. The supermarket culture is playing a vital role in generating employment, with a single store providing jobs to around 50 people. Supply chain is the most important and first challenge to sustain the business and retain customer. This organization will focus on the efficient supply chain management to operate the business by providing cheap product for the customers. “Me and Mom” will be trying to keep the agile relationship with the supplier to ensure quality product in home and abroad. For this the rural agricultural condition will be branded by the organization. Some say that the Internet will completely change the face of retailing; others believe that the 'touch and feel' factor would ultimately dominate and the Net will have only a marginal impact on the shopping behavior. Probably the truth lies somewhere in between. But one thing is sure - online retailing is here to stay. Many retailers realized that and have rushed to start their own e commerce web site. We believe that the key to success would be the effectiveness with which retailers integrate the Internet with their existing business model.

27

3.7

Mission Statement

Generally efficient superstore based on real time customer demands. So a superstore tries to provide fresh and quality products for their customers. The main missions of “Me and Mom” are given bellow.

1 2 3 4 5

Offering a clean healthy and a friendly environment for shopping. To give customer confidence and establish an environment of trust. Offer better range of quality products. Establish rational and low price.

6

Encourage products standard and quality products, or better price. Improve product packaging and presentation.

7

Contribute improving living standard.

8

Thinking ahead and taking new initiatives.

Missions of “Me and Mom”

28

3.8

Products of “Me and Mom” “Me and Mom” typically sells many different types of items, such as:

Beverage Products Baby foods and products

Bakery

Books Newspapers and Magazines

29

Fresh Vegetables

Fresh Fishes

Fresh Meats Local Fruits And Jelly

30

3.9

Principal Activities:       

3.10

Identifying the customer demand Getting real time information Appropriate forecasting for customer demand Understanding consumer behavior Increasing customer satisfaction level Increasing product assortment Maintaining food safety

SWOT Analysis

SWOT analysis is strategic planning method. It is also a tool that is extremely useful for evaluating different business situation like strength, weakness, opportunity, and threats. The word SWOT is basically acronym of these four situations of business venture. SWOT analysis provides a perfect framework to evaluate strategy, position and direction of a company. It is very simple to do and is also very useful in brainstorming meetings where business management need to deeply consider the requirements of the business and SWOT analysis provides the best way to do so.

31

S= STRENGTH W= WEAKNESS O= OPPORTUNITY T= THREATS

32

STRENGTH        

WEAKNESS       

Discount grocery market Innovative marketing Diversification into the holiday market Efficient supply chain management Fresh and quality products Agile relationship with supplier Reputed brand name Product assortment

OPPORTUNITY       

Wastages and damage products Lack of real time information Maximum butterfly customers Small parking place Non brand suppliers Poor marketing Lack of advertising

THREATS        

Increasing customer satisfaction level Creating good facilities for middle class family To increase number of outlet around the city To reach good position against rivals Efficient global supply chain Modern information technology Increasing customers living standard

New rivals Political uncertainty Infrastructure problem Transportation problem Traffic jam Electricity problem Local markets High fuel cost

SWOT Analysis of “Me and Mom” SWOT analysis is the best way to identify the internal and external factors that may be favorable or unfavorable for the organizations. After doing SWOT analysis we can get the real condition of the company and also can take the proper steps to control the situation or improve the present condition. Most of the organization uses this model to increase performance level by taking efficient steps and recommendation the present strategies.

33

3.11 Action Plan for “Me and Mom”

The combination of quality and price under various brand name offers customers value for their money. I have examined and evaluated the operations of Sinha Ltd, including its strengths and weaknesses. I recommend the following in order to ensure continued success for the future of all Marks and Spencer stores: 1. Find alternative sources to supply resources to Marks and Spencer stores abroad. 2. Increase marketing efforts. 3. Strengthen existing resources, add complementary resources, and develop new resources. 4. Evaluation of Current Objectives and Current Strategy

34

Chapter Four 4.0

Practical Experiences gathered through doing research works in

an

organization

Sinha Ltd is a big group of company in our country. They are doing business in many sectors. I have gathered some practical experience in this organization. These are given bellow: 

I have understood how this organization work and do main function to fulfill their



objects after doing my research. Every organization has a working system. “Me and Mom” also have a working



system. I have shown it in chapter five. I am able to understand the process of activity and how it helps to earn maximum



profit with efficient supply chain. A good strategy can help a organization to survive with competitor. I have also



gathered the fundamental knowledge about main strategy of “Me and Mom”. Every organization follows a systematic customer policy by the reason for increasing customer satisfaction. I have understand how this organization fit there



customer policies. Information system is heart of an organization. Communication system, interpersonal relationship also depends on information system. I have known how



communication system helps the organization to make decision. Departmental process can help a superstore to decorate the products speciously for the customers. It has helped me to understand departmentalization and department



based procurement, merchandiser role etc. Control system is very much important for a superstore. If I don’t maintain a control system product will be damaged. Now I am able to discuss how a



superstore maintains a control system to utilize their all elements. Security system is one of the biggest challenges for a superstore. They try to follow traditional system to maintain their security.

35

Chapter Five 5.0

Findings and Analysis regarding the objectives of the study

including problems identified Last one decade has seen the phenomenal rise of the 'Chain of superstores' in our country. Growing consolidation and globalization in the sector has seen the bargaining power of the retailer increase in the supply chain. We believe that in order to counter saturated domestic markets and increasing competition, leading superstores would continue to expand globally. Increasingly retailers are handling their inbound logistics by setting up their own distribution networks. We believe that a vital criterion for success in future would be the ability to harness worldwide distribution and logistics network for purchasing. This global supply chain should ensure high levels of product availability that consumers want to buy. Supply chain management (SCM) promises unprecedented efficiencies in inventory control and procurement to the retailers. With cash registers equipped with bar-code scanners, retailers can now automatically manage the flow of products and transmit stock replenishment orders to the vendors. The data collected for this purpose can provide deep insights into the dynamics of the supply chain. However, most of the commercial SCM applications provide only transaction-based functionality for inventory management and procurement; they lack sophisticated analytical capabilities required to provide an integrated view of the supply chain. This is where data warehousing can provide critical information to help managers streamline their supply chain. Some of the applications of BI in supply chain management and procurement are: Vendor Performance Analysis: Performance of each vendor can be analyzed on the basis of a number of factors like cost, delivery time, quality of products delivered, payment lead time, etc. In addition to this, the role of suppliers in specific product outages can be critically analyzed. Inventory Control (Inventory levels, safety stock, lot size, and lead time analysis): Both current and historic reports on key inventory indicators like inventory levels, lot size, etc. can be generated from the data warehouse, thereby helping in both operational and strategic decisions relating to the inventory. Product Movement and the Supply Chain: Some products move much faster off the shelf than others. On-time replenishment orders are very critical for these products. 36

Analyzing the movement of specific products - using BI tools - can help in predicting when there will be need for re-order. Demand Forecasting: It is one of the key applications of data mining. Complex demand forecasting models can be created using a number of factors like sales figures, basic economic indicators, environmental conditions, etc. If correctly implemented, a data warehouse can significantly help in improving the retailer relations with suppliers and can complement the existing SCM application.

Enterprise Management

Human Resource Management

Finance and Fixed Asset Management

Customer Relationship Management

Customer Value

Supply Chain Management and Procurement

Store Front Operation

Alternative Sales Channel

Function of a superstore 5.1

Retail Supply Chain Elements

Supply chain management is very important for a superstore because of customer satisfaction. Customer wants fresh and quality products basically vegetables and meats. An efficient supply chain can ensure to provide quality food for the customers to keep agile relationship with suppliers. In this part I will show how supply chain management engage with a superstore to provide quality products and identify major challenging element. Retail Supply Chain has four parts. These are given bellow:

37

  



5.1.1

Merchandise Management processes Buying or Sourcing processes Logistics Processes Customer Service Processes

Merchandise Management Processes

Category management processes: This includes processes for defining merchandise categories and developing strategies for each category. The related processes are category planning, category role definition, developing category strategies and tactics. Merchandise forecast and budgeting processes: These processes help in long term forecasting merchandise requirement, financial budgeting process of budget control. Assortment management processes: These include planning process like line and range planning, store clustering size and pack planning, space planning, planogram design etc and execution processes like merchandise allocation and planogram execution. Price management processes: Setting the right price is a challenge the lifecycle of the merchandise. It start with the initial price set up, which is then started constantly during the life cycle of the merchandise through different promotion schemes. It includes:    

Promotion planning Planning markdowns Trade funds planning Promotion collaboration

38

5.1.2

Sourcing process:

Superstores have several options for sourcing today- the wholesalers or distributors. Basically on food sector a superstore collect their products from quality suppliers. It includes:     

5.1.3

Product design and private labels Packaging design Vendor selection Global sourcing Managing supplier performance

Logistics Management Processes

These processes associated with moving the goods like transportation, warehouse management, inventory management etc. It is one of the biggest parts of retail chain supply chain management. It is integrating system by creating value in the supply chain processes. Forward and backward integration is happened in these processes. Short product life cycle vary on these processes.

5.1.4

Customer Service Processes:

Smart retailers have reoriented their business around the customer. In the mad rush to acquire new customers, they have realized it is equally important to retain the existing ones. Increased interaction and sophisticated analysis techniques have given retailers unprecedented access to the mind of the customer; and they are using this to develop oneto-one relation with the customer, design marketing and promotion campaigns, optimize store-layout, and manage e-commerce operations. A typical retail organization has a huge customer base and often customer's needs are fairly differentiated. Without the means to analyze voluminous customer data, CRM strategy is bound to be a failure. Hence, we believe that Analytical CRM forms the core of a retailer's customer relationship strategy. Marketing and sales functions are the primary beneficiaries of Analytical CRM and the 39

main touch points from where the insights gained about the customer is absorbed in the organization. These are the fundamental function for retail chain which I have shown on the above pages. Sinha Ltd is doing business in retail chain for two years. They are facing some challenges about supply chain management to provide quality products basically fresh meat and vegetables. Now I am analyzing those challenges and will try to give some recommendation about these problems. Sinha Ltd started their retail chain business by the brand name of “Me and Mom”. It is very challenging to identify real time information for meeting customer demand. Those challenges are divided into four parts. I will be hopeful by identifying those challenges its make easy to increase the efficiency about supply chain management.

5.2

Identifying Major Supply Chain Management Challenges In

“Me and Mom” Superstore: 5.2.1

Merchandise Management Processes  Overstock Problem: The main challenge is overstock problem. So it is difficult to take quick response. Quick response is essential for real time information. Consumer behavior is related for real time information. So supply chain manager have to more focus on good networking system between supplier and customer. Basically on Friday customers come to buy their weekly shopping. So this day demand is high in meet and vegetables items. Supply chain manager has to do the master planning for one month. But some time prices are vary from shops to shops. Sometime customers prefer to buy their vegetables item from the road side shops. The unorganized

40

retailers create challenges about the superstore vegetables demand.

 Consumer Behavior: Managing the items is getting difficult because of changing customer taste and new products. So the Agile relationship is hindered. The supply chain manager has to change the supplier partnership. So wastage is increasing. Sometime people want specialized food items. Consumer behaviors vary for various reasons, so it is not easy to keep good partnership with suppliers. Now the age of globalization and most of the young people are multi cultured. In this reason supply chain manager has to determine the global sourcing. One of the biggest challenges is understand the 41

customer behavior. Customers want fresh products. It is very important to identify the farmers who really grow products. There works a circle bringing the rural products to the urban shops. In the retail shops 40 – 50 percent seals come from fresh products such as vegetable, fish and meat. So it is essential to organize efficient supply chain especially in vegetable and beef. 

To keep Agile Relationships: Agility is a business-wide capability that embraces organizational structures, information systems, logistics processes and, in particular, mindsets. A key characteristic of an agile organization is flexibility. It's logical that when you improve the capabilities of your company's workforce, your company benefits. Leading companies engage in supplier development providing resources to improve their suppliers' capabilities. This often involves training suppliers in methodologies such as Six Sigma or Lean, but really can be any collaboration that makes suppliers more capable of delivering benefit to the company. In superstore it is vey important to keep agile relationship with suppliers. If suppliers

believe that they are part of the organization there work

force will develop. But most of the suppliers on vegetables and food sector are not very educated so the real objects are not fulfilled. The organization should organize some training programs reason for providing quality products. If suppliers know the way to create the supply chain system they will take some stapes to reduce the number of damage products. When suppliers understand the objects of keeping relationship with agility they would ensure quality on every sectors of their work.



The Merchandiser’s Role: As the sales merchandiser role expanded, the frequency of visits increased. Merchandisers’ began dealing with customer complaints, in-store training, stock level assessments and account queries. On average, merchandisers spent a whole day in each store. Each store was revisited every four weeks. Activities which had been focused around cleansing timber racks, now included layout correction to store plan and dealing with issues raised by retail store teams. Routine merchandise operations were suspended at peak trading times, in favour of special stock building activities to meet seasonal demand. These activities required close cooperation with store personnel, 42

agreeing delivery schedules and goods receipt. Relationship building formed an increasingly important element of the role.

The role demanded particular

personal characteristics. Merchandisers needed to be confident talking to shop floor personnel and retail regional directors. Some became trainers and delivered product and merchandise training in-store. As well as stripping and cleansing activities, merchandisers checked product quality, flagged potential production problems and, on occasion carried out remedial action, e.g. label replacement and sub-standard product removal. They provided technical and product training for retail floor and checkout staff. Information on new products was shared, promotional

materials

distributed

and

technical

range

advice

offered.

Merchandisers who were less certain about their responsibilities and authority within this complex array of tasks rated themselves lower on job satisfaction scores. Some merchandisers took it upon themselves to carry out system checks of apparent out of stock items. This cross-checking had the potential to directly influence sales and availability performance. It was, however, discretionary – the merchandiser had to take the initiative and stores had to permit access to their information systems. Missing either or both of these elements and this fragile, yet significant improvement opportunity was lost. The merchandiser’s role is much more important for a superstore because they do the main challenging works like major forecasting decisions, aggregate planning for a fixed time table, Cooperating with suppliers, create efficient distribution channel for getting food products etc. So merchandiser’s role is mostly related with supply chain management.

5.2.2

Sourcing Processes Pre-procurement supply planning: Many people define retail as the business of sourcing and selling. Sourcing is the right merchandise at the right possible price is a make situation for this business. Sometimes sourcing processes will be challenging. These challenges are given bellow:  Sourcing strategies processes like order/spend analysis, sourcing strategy development, generate and analysis requirements are challenging now. 43



Supplier qualification processes like market scan and identify sources of



supply, validate supplier capabilities and supplier evaluation. Supplier negotiation processes like REF(request for proposal), RFQ(request



for quotation) Contract management processes like contract management, execution and monitoring.

Post-procurement Execution processes: Post-procurement execution processes

are given bellow. 

Receiving process like goods receipt, delivery acknowledge and quality



assessment Financial settlement processes like invoice verification, payment, issue, resolution etc.

Supplier Management Processes: Supplier

management

process

challenges are given bellow.  This is required for tracking supplier qualification and performance. Few 

retailers publish regular supplier scorecards for this. Designing private labels along with supplier is a common practice for retailers now a day. Retailers can develop bill of material, technical



specification etc, jointly with suppliers. Supplier optimization processes help in identifying the optimum allocation of quota to different vendors.

5.2.3

Logistics Processes

Transport Planning: Transportation problem is creating a grate challenge for retail supply chain. Because of adequate infrastructure grate inconsistency to delivery products in timely.

44



Dhaka is becoming over and over populated city day by day. It is now very difficult to move one place to another within short time. All streets are faced traffic jam in business hour. No one can able to maintain their daily routine perfectly. One of the most important tasks of our daily life is to purchase our daily commodity from local market. But all the local markets are full of hassle and harmful environment. Though these have some super stores with better environment but people have to spend more valuable time on streets because of traffic jam. So it

is important to create a large supply chain of retail shop

people can easily turn into online shopping to provide customer hassle free shopping by saving their time. People do not have to wait in a line or wait till the shop assistant is ready to help you with their purchases. They can do their shopping in minutes even if they are busy apart from saving time and avoiding crowds. So supply chain manager are facing more challenge to sustain customer relationship management because supply chain management for delivering products to customer house is not much effective. 

Infrastructure is not much developed in Bangladesh. So this organization found quite challenges as supply chain could be unnecessary length and need good networking system.



In Bangladesh there is too much traffic congestion and needs much time to make products available timely. Supply Chain action depends on timely delivery.

45

5.2.4

Customer Service Processes 

To provide a high accessibility of service supply chain manager will design the online shopping website, so that potential customers need not go to a physical shop to buy products or services. They just need to online to complete their purchases. Today’s development of information technology has become major changes in the way services are delivered to the customers. Nowadays, customers are used to self-service options, which are more convenient and fast. In the develop countries the advent and use of the Internet has changed the daily activities of most people, especially in shopping. The popularity of online shopping services is in recent years.



Shopping via internet has come up as a key resource for achieving higher efficiency, control of operations and reduction of Supply chain cost by replacing paper based and employee depended methods which provides higher productivity and profitability. This is big challenge for supply chain manager to focus on internet based service for customers. Customer want to save time for there rush way. Credit card in not available in our country so most of the time it is not possible for 46

superstore management to transfer credit through online.

using the

internet to be able to source products and also check for availability of stock among stores of retail chains has been proven to be effective and cuts down on wastage by a vast amount. It makes logistical support very easy and efficient. The trend in Bangladesh is such that usage of the electronic medium for business purposes and integrating it into the systems is increasing. This would slowly spread into the retailing sector as well. It has already started in the case of some large retail houses where the affects are here to see. This again would result in the supply chain getting leaner and vertically integrated. Though the initial costs to implement these systems are high, in the long run it results in cost reduction where this privilege can be passed on to the final consumer.



Consume may have reluctance to shop over the internet, fraud and security concerns with payment policy, some consumers are afraid of doing business online out of concerns of fraud and misuse of their financial data. This is a big challenge to maintain a flexible relationship between customer and superstore.



As awareness grows about food safety issues, the need for countries to provide greater assurance about the safety and quality of food also grows. The increase in world food trade and the advent of the Sanitary and Phytosanitary (SPS) Agreement under the World Trade Organization (WTO) have also raised interest in food safety requirements. To ensure a strong presence in global markets, ME AND MOM realizes the need to meet these challenges and keep pace with international developments.

47

Interpreting the Data from the Likert Scale

5.3

Q-6: Is the quality of fruits and vegetables of this organization is good? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 4 11 1 3 1

OF 4×5 11×4 1×3 3×2 1×1

Total N=20

Total 20 44 3 6 1 74

Weighted Mean = (74÷20) = 3.7 [agree] Q-7: Do you use holiday for shopping at superstore “Me and Mom”? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 7 3 3 5 2

OF 7×5 3×4 3×3 5×2 2×1

Total N=20

Total 35 12 9 10 2 68

Weighted Mean = (68÷20) =3.4 [agree] Q-8: Is agile relationship is important to bring quality food products? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 14 5 0 1 0

OF 14×5 5×4 0×3 1×2 0×1

Total N=20 Weighted Mean = (92÷20) =4.6 [strongly agree]

48

Total 70 20 0 2 0 92

Q-9: Are there product price reasonable for the customers? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 2 5 2 9 2

OF 2×5 5×4 2×3 9×2 2×1

Total

Total 10 20 6 18 2 56

N=20 Weighted Mean = (56÷20) =2.8 [neutral] Q-10: Is there product assortment efficient for the consumers? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 6 9 2 2 1

OF 6×5 9×4 2×3 2×2 1×1

Total

Total 30 36 6 4 1 77

N=20 Weighted Mean = (77÷20) =3.85 [agree] Q-11: Is there vegetables better then unorganized retailer? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 2 3 4 9 2

OF 2×5 3×4 4×3 9×2 2×1

Total N=20 Weighted Mean = (54÷20) =2.7 [neutral]

49

Total 10 12 12 18 2 54

Q-12: Are there suppliers capable to provide fresh products? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 9 7 3 1 0

OF 9×5 7×4 4×3 1×2 0×1

Total N=20

Total 45 28 12 2 0 87

Weighted Mean = (87÷20) =4.35 [strongly agree] Q-13: Should “Me and Mom” provide online shopping facilities for the customers? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 5 3 8 3 1

OF 5×5 3×4 8×3 3×2 1×1

Total N=20

Total 25 12 24 6 1 68

Weighted Mean = (68÷20) =3.40 [agree] Q-14: Are “Me and Mom” maintains food safety issues? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 13 5 2 0 0

OF 13×5 5×4 2×3 0×2 0×1

Total N=20 Weighted Mean = (91÷20) =4.55 [strongly agree]

50

Total 65 20 6 0 0 91

Q-15: Should “Me and Mom” give offer seasonal discount to increase sales volume? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 17 2 1 0 0

OF 17×5 2×4 1×3 0×2 0×1

Total N=20

Total 85 8 3 0 0 96

Weighted Mean = (96÷20) =4.80 [strongly agree] Q-16: Should “Me and Mom” do advertise for increasing their popularity? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 11 7 1 1 0

OF 11×5 7×4 1×3 1×2 0×1

Total N=20

Total 55 28 3 2 0 88

Weighted Mean = (88÷20) =4.40 [strongly agree] Q-17: Should “Me and Mom” open some new branches to increase their sales volume? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 14 6 0 0 0

OF 14×5 6×4 0×3 0×2 0×1

Total N=20 Weighted Mean = (94÷20) =4.70 [strongly agree]

51

Total 70 24 0 0 0 94

Q-18: Should “Me and Mom” provide rural home made product for the customers? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 4 9 5 1 0

OF 4×5 9×4 5×3 1×2 0×1

Total N=20

Total 20 36 15 2 0 73

Weighted Mean = (73÷20) =3.65 [agree] Q-19: Should “Me and Mom” take some initiative on customer service? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 2 4 10 3 1

OF 2×5 4×4 10×3 3×2 1×1

Total N=20

Total 10 16 30 6 1 63

Weighted Mean = (63÷20) =3.15 [agree] Q-20: Should they take some steps to improve human resource to increase customer satisfaction level?

Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 6 11 2 2 0

OF 6×5 11×4 2×3 2×2 0×1

Total N=20 Weighted Mean = (84÷20) =4.20 [strongly agree]

52

Total 30 44 6 4 0 84

Q-21 Should “Me and Mom” focus on global sourcing for international product? Option Strongly Agree Agree Neutral Disagree Strongly Disagree

Frequency 2 5 10 2 1

OF 2×5 5×4 10×3 2×2 1×1

Total N=20 Weighted Mean = (65÷20) =3.25[agree]

53

Total 10 20 30 4 1 65

Appendix: A Value

5

4

3

2

1

Total Weighted

Weighted Average

Question

Strongly Agree

Agree

Neutral

Disagree

Q6

4

11

3

Strongly Disagree 1

Total Respondents 20

Score

Score

74

3.70

Q7

7

3

3

5

2

20

68

3.40

Q8

14

5

0

1

0

20

92

4.60

Q9

2

5

2

9

2

20

56

2.80

Q10

6

9

2

2

1

20

77

3.85

Q11

2

3

4

9

2

20

54

2.70

Q12

9

7

3

1

0

20

87

4.35

Q13

5

3

8

3

1

20

68

3.40

Q14

13

5

2

0

0

20

91

4.55

Q15

17

2

1

0

0

20

96

4.80

Q16

11

7

1

1

0

20

88

4.40

Q17

14

6

0

0

0

20

94

4.70

Q18

4

9

5

1

1

20

74

3.70

Q19

2

4

10

3

1

20

63

3.15

Q20

6

11

4

0

0

20

86

4.30

Q21

2

5

10

2

1

20

65

3.25

Total

1233

61.65

1

54

Chapter Six

6.0

CONCLUSION

Supply chain management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory with the assumption that products are available when needed.

In superstore supply chain is used vastly. It is a continuous process for the organization. It is impossible for the organization to do business without good efficiency in supply chain management. Now a day many concepts are being contributed to develop supply chain efficiency for reducing total cost of the business. This is not easy to run a superstore without an efficient supply chain. So now organization focuses on the supply chain management to decrease total cost and increase customer satisfaction level with variety of product assortment. It is very important to give some facilities for the middle class family by providing some discount packages. Superstore concept will be popular next couple of year with some integrated value added services. Supply chain management is most important because logistics services and procurement most effective issues about a superstore. Decision making and demand forecasting are depends on proper information system about a superstore. Eventually I can say superstore and supply chain have a good intimacy with one another. In the cooperative supply chain, the retail outlets faced a major problem such as price fluctuations, more physical losses of produce, failing in assessment of demand and procurement problems. The problems were due to high price fluctuation which depends on the arrival and season of vegetables, due to improper handling and spoilage of vegetables, no proper planning for assessment of demand and no proper planning for procurement respectively. Hence it was expected to build the capacity with the cooperatives to lessen the price fluctuation with proper planning for procurement, less physical losses of produce with proper handling and storage facility, assessing the demand at right time and proper planning of procurement respectively. 55

In modern supply chain the retail outlets, faced the major problems such as price fluctuation, absence of wide range of products, failing in assessment of demand, procurement problems and timely availability of produce in the same order. Therefore in the modern retail formats also needs to be develop the capacity to cope with price fluctuation and extending wide contractual arrangement for varied products regularly by better planning.

6.1

[]

Recommendation

Have to open a new website which facilitates online shopping, to start an

online store an attractive website is first requirement. This could build up a new online shopping website that will be highly secure and easy to access. It will contain all of our products, services and information. []

Build-out own product inventory software: This is the software that will run

our store, from product display to inventory management to checkout.

[]

The supply chain manager should keep agile relationship with key suppliers

for getting quality and fresh products on the root level.

[]

For the reason of traffic jam superstore should be made around the border of

the city.

[]

Rural people make many products which are very popular in the urban area

people. This product can be stored by the superstore as a brand items. A good networking system has been required for maintaining this system between management and supplier.

[]

Value added services are provided by the retail chain, so shop has to focus

on efficient supply chain Management. 56

[]

Supply chain is much more important in present year. Cost reduction is big

challenge for the company. Most of the time Quality control is hamper for this reason. So keeping agile relationship would be good for the superstore to ensure quality and fresh product for the customers. []

It is difficult but not impossible to provide home service by starting E-

Business. Superstore can merge with a bank by the reason for payment methods. []

To ensure food safety and maintain product integrity from the source to the

customer, Retailing Companies would have to establish a totally integrated infrastructure and services package. This connects and maintains the flow of food from the source (farmers/food growers, farm service centers, market yards, processors, importers) to the customer (foodservice outlets, food processing units, food retailers and food exporters). This package will help eliminate or prevent identified hazards or reduces them to acceptable levels. This trend is slowly beginning to take shape with the efforts to integrate and consolidate the supply chain in local Food Retailing. []

Concentrating to earn a premium by providing the consumer with product

that is fresher than competitor's offering. For instance, a leading fresh food supplier considers cold chain critical to success since temperature is the dominant factor in shelf life. Its cold chain starts from the day the produce is picked and lasts until consumers bring it home to their refrigerators.

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References

1. The Financial Express: sales top 20b last year, November 23, 2011 2. Rajesh Ray (2010). Supply Chain Management for Retailing. Retail supply chain elements, 14-17 3. Supply Chain Management for Fruits and Vegetables, Dr. Muhammad Mushtaq Ahmad, Department of Information Systems, Corvinus University of Budapest 4. Superstore focusing more on Supply chain Management challenge, The Daily Star, Saturday, October 30, 2010. 5. Superstores eye boom time ahead, Saturday, March 06, 2010. Bangladesh Economy: News and Updates. 6. www.sinhaltd.com ACME Group, The corporate information from Sinha ltd. 7. Bangladesh Economic News, Positive News about the Bangladeshi Economy. http://www.bangladesh-economy.org/ 8. Supermarket, the type of food store, for the 2006 cosmic supermarket, 15 Novenmber, 2011. 9. Christopher Martin: The Agile Supply Chain : Competing in Volatile Markets, URL http://www.martin.chirtopher.info, 1.10.2003 10.Halldorsson A, Larson, P.D. Wanted SCM! A Search for elements of supply chain management logistics. URL:http://www.redefininglogistics.com, 2000 p 216-241. 11.www.planetretail.net, 58

12.Retailing Supermarkets on the Rise, The Daily Star, Thursday, October 27, 2011

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