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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

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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.

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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

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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 informations 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 informations, 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

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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 Ive drawn a conclusion and give some recommendation about the
relationship with superstore and supply chain. Ive 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 Introduction 01
1.1 Statement of the Problem 01
1.2 Objectives of the Study 03
1.3 Methodology of the Study 04
1.4 Literature Review 07
Chapter Two

2.0 Scenario regarding the main topic of the report in 09


Bangladesh.
Chapter Three
3.0 An overview of the organization 12
3.1 Background 12
3.2 Corporate information 14
3.3 Organization structure 16
3.4 Number of branches 18
3.5 Number of employee 18
3.6 Vision statement 19
3.7 Mission statement 20
3.8 products 21
3.9 Principal Activities 23
3.10 SWOT analysis 23
3.11 Action plan 25
Chapter Four
4.0 Practical experience gathered through doing 26

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research works
Chapter Five
5.0 Finding and analysis regarding the objectives of 26
the study including problem identified
5.1 Retail Supply Chain Elements 27
5.1.1 Merchandise Management Processes 28
5.1.2 Sourcing process 29
5.1.3 Logistics Management Processes 29
5.1.4 Customer Service Processes 29
5.2 Identifying Major Supply Chain Management 30
Challenges In Me and Mom Superstore
5.2.1 Merchandise Management Processes 30
5.2.2 Sourcing process 33
5.2.3 Logistics Management Processes 34
5.2.4 Customer Service Processes 36

5.3 Interpreting the Data from the Likert Scale 38

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Chapter Six
6.0 Conclusion 45
6.1 Recommendation 46

End Matter
Reference 48
Questionnaire

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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 e-
commerce. 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

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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. Hassle-
free 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 competitors offerings, comparable to continuous market research. Even
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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-to-
market 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
companys value proposition, and that companys 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 store-
based 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:

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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:


Customers attitude towards Me and Mom
Me and Mom Sales Person Behavior
Checkout Counter System
Flyers & Banners placement for discount
Salespersons Comments
Interviewing Customer Manager

Secondary sources are:


Sinha Ltds 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. These are presented below:

1.3.4 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.

1.3.5 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

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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.

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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 value-
added 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

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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.

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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

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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 multi-
stage 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
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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 hasnt
been establishing by many reasons, those are given bellow:

Infrastructure is mot much developed in Bangladesh.


Transportation Moods are not very good.
Dont have qualified suppliers.
Suppliers dont 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

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In the early days of retailing, all products generally were fetched by an assistant from
shelves behind the merchants 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 retailers 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

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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 export-
oriented in scope.

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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 a complete healthcare powerhouse committed to


protecting and improving the health and well-being. She has a wide portfolio of
Pharmaceutical Products across the Therapeutic Spectrum for
both Human and Animal Health. Her growing Herbal repertoire of Products are
based on mans 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

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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 Pollobi

3.5 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 10 15.38
Total 65 100

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 Offering a clean healthy and a friendly environment for


shopping.
To give customer confidence and establish an environment of
2 trust.
Offer better range of quality products.
3
4 Establish rational and low price.

5 Encourage products standard and quality products, or better


price.
6 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:
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

3.10 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 Wastages and damage products
Innovative marketing Lack of real time information
Diversification into the holiday Maximum butterfly customers
market Small parking place
Efficient supply chain Non brand suppliers
management Poor marketing
Fresh and quality products Lack of advertising
Agile relationship with supplier
Reputed brand name
Product assortment

OPPORTUNITY THREATS
Increasing customer satisfaction New rivals
level Political uncertainty
Creating good facilities for Infrastructure problem
middle class family Transportation problem
To increase number of outlet Traffic jam
around the city Electricity problem
To reach good position against Local markets
rivals High fuel cost
Efficient global supply chain
Modern information technology
Increasing customers living
standard

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 dont 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 Human Finance and Fixed Asset


Management Resource Management
Management

Customer Relationship Management Customer


Value
Supply Chain Store Front Alternative Sales
Management and Operation Channel
Procurement

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

5.1.1 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:

Product design and private labels


Packaging design
Vendor selection
Global sourcing
Managing supplier performance

5.1.3 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 one-
to-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 Merchandisers 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 merchandisers 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, Co-
operating with suppliers, create efficient distribution channel for getting food
products etc. So merchandisers 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. Todays 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
5.3 Interpreting the Data from the Likert Scale

Q-6: Is the quality of fruits and vegetables of this organization is good?


Option Frequency OF Total
Strongly Agree 4 45 20
Agree 11 114 44
Neutral 1 13 3
Disagree 3 32 6
Strongly Disagree 1 11 1
Total 74
N=20
Weighted Mean = (7420) = 3.7 [agree]

Q-7: Do you use holiday for shopping at superstore Me and Mom?


Option Frequency OF Total
Strongly Agree 7 75 35
Agree 3 34 12
Neutral 3 33 9
Disagree 5 52 10
Strongly Disagree 2 21 2
Total 68
N=20
Weighted Mean = (6820) =3.4 [agree]

Q-8: Is agile relationship is important to bring quality food products?


Option Frequency OF Total
Strongly Agree 14 145 70
Agree 5 54 20
Neutral 0 03 0
Disagree 1 12 2
Strongly Disagree 0 01 0
Total 92
N=20
Weighted Mean = (9220) =4.6 [strongly agree]

48
Q-9: Are there product price reasonable for the customers?

Option Frequency OF Total


Strongly Agree 2 25 10
Agree 5 54 20
Neutral 2 23 6
Disagree 9 92 18
Strongly Disagree 2 21 2
Total 56

N=20

Weighted Mean = (5620) =2.8 [neutral]

Q-10: Is there product assortment efficient for the consumers?

Option Frequency OF Total


Strongly Agree 6 65 30
Agree 9 94 36
Neutral 2 23 6
Disagree 2 22 4
Strongly Disagree 1 11 1
Total 77

N=20

Weighted Mean = (7720) =3.85 [agree]

Q-11: Is there vegetables better then unorganized retailer?


Option Frequency OF Total
Strongly Agree 2 25 10
Agree 3 34 12
Neutral 4 43 12
Disagree 9 92 18
Strongly Disagree 2 21 2
Total 54
N=20
Weighted Mean = (5420) =2.7 [neutral]

49
Q-12: Are there suppliers capable to provide fresh products?
Option Frequency OF Total
Strongly Agree 9 95 45
Agree 7 74 28
Neutral 3 43 12
Disagree 1 12 2
Strongly Disagree 0 01 0
Total 87
N=20
Weighted Mean = (8720) =4.35 [strongly agree]

Q-13: Should Me and Mom provide online shopping facilities for the customers?
Option Frequency OF Total
Strongly Agree 5 55 25
Agree 3 34 12
Neutral 8 83 24
Disagree 3 32 6
Strongly Disagree 1 11 1
Total 68
N=20
Weighted Mean = (6820) =3.40 [agree]

Q-14: Are Me and Mom maintains food safety issues?


Option Frequency OF Total
Strongly Agree 13 135 65
Agree 5 54 20
Neutral 2 23 6
Disagree 0 02 0
Strongly Disagree 0 01 0
Total 91
N=20
Weighted Mean = (9120) =4.55 [strongly agree]

50
Q-15: Should Me and Mom give offer seasonal discount to increase sales volume?
Option Frequency OF Total
Strongly Agree 17 175 85
Agree 2 24 8
Neutral 1 13 3
Disagree 0 02 0
Strongly Disagree 0 01 0
Total 96
N=20
Weighted Mean = (9620) =4.80 [strongly agree]

Q-16: Should Me and Mom do advertise for increasing their popularity?

Option Frequency OF Total


Strongly Agree 11 115 55
Agree 7 74 28
Neutral 1 13 3
Disagree 1 12 2
Strongly Disagree 0 01 0
Total 88
N=20
Weighted Mean = (8820) =4.40 [strongly agree]

Q-17: Should Me and Mom open some new branches to increase their sales volume?
Option Frequency OF Total
Strongly Agree 14 145 70
Agree 6 64 24
Neutral 0 03 0
Disagree 0 02 0
Strongly Disagree 0 01 0
Total 94
N=20
Weighted Mean = (9420) =4.70 [strongly agree]

51
Q-18: Should Me and Mom provide rural home made product for the customers?
Option Frequency OF Total
Strongly Agree 4 45 20
Agree 9 94 36
Neutral 5 53 15
Disagree 1 12 2
Strongly Disagree 0 01 0
Total 73
N=20
Weighted Mean = (7320) =3.65 [agree]

Q-19: Should Me and Mom take some initiative on customer service?

Option Frequency OF Total


Strongly Agree 2 25 10
Agree 4 44 16
Neutral 10 103 30
Disagree 3 32 6
Strongly Disagree 1 11 1
Total 63
N=20
Weighted Mean = (6320) =3.15 [agree]

Q-20: Should they take some steps to improve human resource to increase customer
satisfaction level?

Option Frequency OF Total


Strongly Agree 6 65 30
Agree 11 114 44
Neutral 2 23 6
Disagree 2 22 4
Strongly Disagree 0 01 0
Total 84
N=20
Weighted Mean = (8420) =4.20 [strongly agree]

52
Q-21 Should Me and Mom focus on global sourcing for international product?

Option Frequency OF Total


Strongly Agree 2 25 10
Agree 5 54 20
Neutral 10 103 30
Disagree 2 22 4
Strongly Disagree 1 11 1
Total 65
N=20
Weighted Mean = (6520) =3.25[agree]

53
Appendix: A
Value 5 4 3 2 1 Total Weighted
Weighted Average

Question Strongly Agree Agree Neutral Disagree Strongly Total Score Score
Disagree Respondents
Q6 4 11 1 3 1 20 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

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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.

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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.

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[] 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,

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

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