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Internship Report On

Supply Chain Department of Midas Safety Bangladesh

Prepared by
Nakeba Mahek
ID: 10304128
Chittagong University

Prepared for
Dr. Mohammad Tayub Chowdhury
Professor
University of Chittagong

Date of Submission: 10th May, 2017

1
Acknowledgment

The internship opportunity I had with Midas Safety Bangladesh was a great
chance for learning and professional development. Therefore, I consider myself as
a very lucky individual as I was provided with an opportunity to be a part of it. I
am also grateful for having a chance to meet so many wonderful people and
professionals who led me though this internship period.
I would first like to thank my supervisor, Dr Mohammad Tayub Chowdhury,
University of Chittagong for guiding me and assigning this topic.
Bearing in mind previous I am using this opportunity to express my deepest
gratitude and special thanks to the Head of Department of Supply Chain, Mr.
Ishteaque Uddin Kaiser who in spite of being extraordinarily busy with his duties,
took time out to hear, guide and keep me on the correct path and allowing me
to carry out my project at their esteemed organization and extending during the
training.
I express my deepest thanks to Md. Anisur Rahman, Assistant Manager, and
Supply Chain for taking part in useful decision & giving necessary advices and
guidance and arranged all facilities to make life easier. I choose this moment to
acknowledge his contribution gratefully.
This study required voluminous primary information which I could not have
collected properly in time without the help employees of Midas Safety
Bangladesh
I perceive as this opportunity as a big milestone in my career development. I will
strive to use gained skills and knowledge in the best possible way, and I will
continue to work on their improvement, in order to attain desired career
objectives. Hope to continue cooperation with all of you in the future,
Sincerely,
Name: Nakeba Mahek
Place: Chittagong
Date: 02.05.2017

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Executive Summary
This internship report is prepared on overall activities of Supply Chain Function of
Midas Safety Bangladesh Ltd. I have prepared this report during my 2 months long
attachment at Supply Chain Function. The operation of Supply Chain starts with
Demand Planning for products and then Supply Planning is prepared basis on that
agreed Demand. On the basis of Supply Planning the Raw Materials and Packaging
materials are being procured by Procurement from National and International
Suppliers where Inbound Logistics releases the imported materials from port
following customs formalities. This is then used for Production and later Primary
Sales (invoicing) is done by Customer Service and Distribution. The first part of the
report gave a short introduction on Midas Safety Bangladesh and history, business
vision and mission and product portfolios. The second part is about the overview
of Supply Chain function and its activities. The third part is about my duties and
responsibilities that I performed as an intern in communication, Department of
Supply Chain Function. The Fourth part explained the overview of supply chain
department. My overall learning on Supply Chain is also explained in the sixth part
of the report. Finally at last part brief Recommendations prepared from my brief
knowledge on Midas Safety Bangladesh Supply Chain.

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Table of Contents
Contents Page
Introduction 5
Objective 6
Methodology 6
Overview of the Company 7
Mission & Vision of Midas 10
Main Themes of The Company 10
Management Style 10
Planning process 10
Goals & Objective 11
Specialization & departmentalization 11
Span of Control 11
Decision Making 12
Production Department 12
Problems in Procuring Raw Materials 12
Types of Product 13
Overview of the Supply Chain 17
Roles & Responsibility Assigned 17
Import 18
Export 24
Problems 35
Recommendation 37
Conclusion 38
References 39

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Introduction
MIDAS was started in 1975 in Pakistan. The owner of the organization was from
Gujarat. The operated area of it is in India, Pakistan, Srilanka, Bangladesh, Canada
and Middle East country. Currently Head Quarter of Midas safety Bangladesh is in
Canada. The name of the sub-project of MIDAS is Industrial Hand Protection Ltd.
It was located in Chittagong Export Processing Zone (CEPZ). It is also known as
Midas Safety Bangladesh. It is only related with production of different types of
hand gloves. It does all production according to the policy of head office which is
situated in Canada. Head office determines all types of production, marketing,
financial policy. Industrial Hand Protection Ltd implements the policy that is taken
by head office. MIDAS SAFETY BANGLADESH collects raw materials from Malaysia
and others countries. Then it converts these into finished products and export
other countries directed by head office. It produces different types of industrial
gloves for the purpose of export. MIDAS SAFETY BANGLADESH is fully export
oriented industry. It runs its production in two ways. One is automated
production and another is semi-automated production. It exports mainly in USA,
Canada, Australia, South Africa, India, Holland, Spain etc. At present it does not
sell any products in our country. It also maintains large warehouses for ensuring
same day services .Their market share in the world is 48 millions out of 120
Millions. Sales Volume in 2016 is 6.3 millions. In 2017 until April sales volumn is
6.2 millions. and their targeted profit in 2020 is 1200 millions. Their sourcing
office is China in 2010. They mostly export in India and USA. Their manufacturing
Locations are India, Pakistan, Bangladesh, Canada

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Objective of Study
The objectives of this industrial tour are as below:
i) The prime objective of the study is to know the production process of
the company, types of raw materials and sources of the raw materials.
ii) To know the management system of the industry
iii) To know about the supply chain of the company
iv) To identify an overview of Industrial Hand Protection Ltd.

Methodology
The study is conducted primarily in participatory research analysis method and
secondary on practical and theoretical analysis. The respected supervisor
proposed to present what I have learned from last 2 months.

The primary sources are as follows:


Face-to-face conversation with the respective offices and stuffs of the
branch.
Practical work experience in the different desk of the department of the
branch covered.
Observation of the production and management sector of the company.
Face-to-face conversation with production related employees
Related field study as provided by the officer

The secondary sources of data and the information are:


Annual report
Web site address
Book basis articles
Brochure provided by the company, catalogue, prospectus

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Overview of the Company
Organization Framework: MIDAS SAFETY BANGLADESH at a glance
Company Profile
Group Name MIDAS SAFETY
Name Industrial Hand Protection Limited(MIDAS
SAFETY BANGLADESH)
Address Plot No.6, Sector 1/A, Road No.5,
C.E.P.Z, Chittagong-4223, Bangladesh.
Year of Incorporation 2009
Year of Commercial Production 2010
Head office : Canada.
Head Office address 255 Duncan Mill Road, Suite 904Toronto,
Ontario, Canada M3B 3H9
Type of operation Manufacturing
Manufacturing Location: India, Pakistan, Bangladesh, UAE and Sri
Lanka.
Legal status of the company: Private Limited Company
Nature of ownership: 100% Private Ownership
Initiative organization to establish Foreign Direct Investment (FDI)
this industry:
Product Safety Gloves.
No of Employee 150
No of Worker 850
Types 100% Foreign Investment (C Type)

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Gloves production in Bangladesh: Automated process, Semi-Automated
process
Market Europe, North America, South America,
Asia, Africa
Exporting Countries: USA, Canada, Australia, South Africa,
Spain, Russia, Holland, India Etc.

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Various processes involved in Knitting
production Dotting
Cutting & Sewing
ATRA
Carton packing
Working hours for worker Day: 8:30 am. To 8:30 pm. / Night: 8:30
pm. to 8:30 am.
Working hours for staff 8:30 am. to 6:30 pm

Workers Absenteeism and Labor*& Monthly absenteeism: 4-5%


Turnover (percentage)* Labor turnover (%): 4-5%
Workers Council Workers Representative Welfare Council
(WRWC); in Process
No labor Union
Fire extinguishers
Two-way entry
Security Measures adopted by the Evacuation plan
organization: Preventive masks & hand gloves
Fire-fighting demonstrations every
six months
Type of company: Both Labor and Capital Intensive
Working Environment: Friendly
Business Strategy: Capture the Market through quality
maintaining
Mode of Transaction: By letter of Credit
Product concern: Large

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Mission And Vision of MIDAS SAFETY BANGLADESH:
Vision 2020: To be one of the leading 5 safety companies in the world

Mission:
1. Great team work.
2. Quality And innovative production.
3. Brand recognition in emerging world market.

Main Themes of The Company:


Service.
Quality.
Cost Competitiveness.
Innovation
Organizational Structure.

Management Style:
MIDAS SAFETY BANGLADESH follows the Line & Staff Management style. There
are four level of management in this organization. There is no managing
committee in this organization.

Planning Process:
Planning is the set of activities such as selecting missions and objectives and the
actions to achieve them, it also includes decision making. MIDAS SAFETY
BANGLADESH also has a strong planning process in which the authority has to
formulate these plans. Most of the times top-level management makes decision.
MIDAS SAFETY BANGLADESH takes plans for intermediate term.

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Goals and Objectives:
Objectives or goals are as Milestone where organization and individual activities
are directed and it wants to reach. Objectives are state end results. Clear and
verifiable objectives facilitate measurement of the surplus as well as the
effectiveness and efficiency of managerial actions.
MIDAS SAFETY BANGLADESH considers, to be one of the leading 5 safety
Company of the world as a vision of setting organizational goals and objectives.

Specialization and Departmentalization:


This organization follows work specialization for every employee. Work
specialization refers to every employees should specialized in the particular field.
MIDAS does not follow generalization. And it generally follows the
departmentalization. MIDAS has eight departments.

Span of Control:
Span of Control means the number of subordinates a manager can effectively and
efficiently direct.
Wider span are more efficient in term of cost. However at some point wider pan
reduce effectiveness. That is, when the span becomes too large, employee
performance suffers because supervisors no longer have the times to provide the
necessary leadership and support.
Narrow span have three major drawbacks.
* They are expensive because they add level of management
* They make vertical communication in the organization more complex
* Narrow span of control encourage overly tight supervision and discourage
employees autonomy.
MIDAS SAFETY BANGLADESH follows narrow span of control and manage
effectively.

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Decision Making:
Decision-making is defined as selection of a course of action from among
alternatives; it is at the core of planning. Decision-making may be either
centralized or decentralized. The decision making process of that organization is
centralized by the authority while taking strategic decision.
MIDAS SAFETY BANGLADESH also follows participative management in decision
making.

Production Department
Simply, Production is the process of converting raw materials into finished goods
that have utility values. Production refers to the processes and methods
employed to transform tangible input (materials, semi-finished goods, or
subassemblies) and intangible inputs (ideas, information, knowledge) into goods
or services. Production management refers to the job of coordinating and
controlling the activities required making a product, typically involving effective
control of scheduling, cost, performance, quality, and waste requirements. MIDAS
SAFETY BANGLADESH production system is customer based. So MIDAS SAFETY
BANGLADESH production system is intermittent. MIDAS SAFETY BANGLADESH
production planning and production scheduling is order based.

Problems in procuring raw-materials:


Rising cost
More time to collect raw material
Frequent change in price
Overcoming problems in procuring raw materials:
Building loyal relationship with suppliers

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Better transportation

Types of Products
There are different kinds of hand gloves are producing MIDAS SAFETY
BANGLADESH. Products are as follows
* Journey gloves
* Industrial gloves
* Chemical resistance gloves
* Hit resistance gloves
* Fashion garments gloves
* Medical gloves
* Cut resistance gloves
* Sports gloves etc

While an unabridged list of safety gloves may never be feasible the following
accounts for the styles, applications, and image of some glove types.

Name Application Image

PVC | Flex Shield Handling of grease-


coated products

Materials handling
Commercial fishing

Food processing

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Chemical handling

Laminated Rubber | Construction


Resistor
Agriculture

Recycling

Glass and sheet


metal handling

Dyneema | Dyneema Sheet metal handling


Latex Coated
Glass and ceramics
handling

Stationary blade
handling

Cotton/Polycotton | Food processing


Polyester Blends
Shipping and
receiving
Light fabrication

General maintenance

Source:
http://www.midassafety.com/category

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Cotton/Polycotton | Nitrile Materials handling
Palm/Blocks
Agriculture

Bottling industry

Roofing

Kevlar | 100% Kevlar Glass and ceramics


Gloves handling

Automotive
manufacturing
Paper industry

Nylon/Polyester | 100% Inspection


Nylon Lint Free
Pre- and post-
painting

Electronics
fabrication
Delicate assembly

Cotton C&S | Double Palm Agriculture


Drills
Light fabrication

Refining

Low/moderate heat
applications

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Next-Gen | Splash Nitrile - Construction work
Cut Resistant
General maintenance
Mechanical work

Nitrile | Hercules Lite Shipping and


7000 Series receiving
Gardening

Light/medium
fabrication

Durable goods
assembly
General plant use

Special Pvc | Shield 200 Commercial fishing


With Chips
Forestry
Mining
Recycling operations
Waste management

DIPPED PVC | SHIELD Parts cleaning


ECONOMY 200 SERIES
Maintenance
General plant use

Basic liquid
protection

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Overview of Supply Chain:
There are basically 3 departments in supply chain.

1. Import/ Local Purchase


2. Export
Logistics
Communication
3. Planning

Among these departments I worked in export (Communication). From Customers


queries to Order confirmation and goods leaving the factory premises all kinds of
queries and communication was done by me.

Specific Roles and Responsibilities Assigned by Supply Chain Department:


Communicating with Customers
Order Confirmation
Reporting to RGM
Shipment Plan Check
Co-ordination with production team
Handling Customers Quarries
Co-ordination among all the departments related to Order

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Description of overall Supply Chain of Midas Safety Bangladesh is given below.

Import:
Importing Countries:
Required raw materials are imported from various countries. Countries involved
in import are Bangladesh, Karachi, Indonesia, China, Taiwan, Sweden, Korea, and
Middle-East, USA. Spare parts are imported from UK.

List of Countries Getting Duty Advantages for Imports from Bangladesh:


Australia
Belarus
Canada
Japan
New Zealand
Norway
Russian Federation
Switzerland Including Liechtenstein
Turkey
USA

European Union:
Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Denmark
Estonia

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Germany
Greece
Finland
France
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
UK

SAFTA COUNTRIES:
Bangladesh
Pakistan
India
Sri Lanka
Maldives
Bhutan
Nepal
Afghanistan

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APTA COUNTRIES:
Bangladesh
India
Sri Lanka
China
Korea
Leo Peoples Democratic Republic
Mongolia

List of Materials Required:


Liner
Chemical
Yarn
Fabrics
Master Carton
Hang Tag
Rubber Band
Polybag
UL Sheet
Master Card
Strapping Belt
Sticker
Label
Lab testing Equipment
Stationary
Screen Printing machine

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Chemicals Requirements:
Every week Imports Department plans the chemicals orders.
To analyze the order requirement imports follow below mentioned data:
Monthly Requirements.
Available stock.
How many days require for
consuming available stock.
Lead time (Transit time + Production
time).

Liner Requirements:
Every week Import department plans the requirements of liner.
Convert all PR into excel. Check total requirements of a Liner.
Check how much stock is available, check the consumption trend of last 4
months.
Take average consumption of last 4 months.

Fabrics requirements:
Fabric order according to the consumption trend or production
capacity.
Imports department consider safety stock and lead time
(Production time + Transit time) for placement of order.
Imports department plan the fabric order once in a month.

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Yarn requirement:
Imports department planned the yarn order once in a month.
Production department send their monthly yarn requirement to
Imports department.
Imports department place orders accordingly to the production
requirement (Basic Yarn).

Process of Import:

Methods for Searching for New Supplier:

Web: MIDAS SAFETY BANGLADESH searches on web to find out good


suppliers. Website Alibaba is used in MIDAS SAFETY BANGLADESH. Linkedin
also provides information about new suppliers.

Knock Door Strategy: MIDAS SAFETY BANGLADESH sends requests to various


business groups like BKMEA (Bangladesh Knitters Manufacturers & Exporters
Association), BGMEA (Bangladesh Garments Manufacturers & Exporters
Association) to provide the list of members produced goods list to find the
good sources of new materials.

References: MIDAS SAFETY BANGLADESH uses references of existing


stakeholders and other sister concern to develop new sources of raw
materials.

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Process of Selecting New Suppliers:

Lab Testing &


Placing Trial
Ask For Sample Confirmation
Order
of Specification

Placement of Finalization of
Evaluation final PO & Terms aand
receiving the Condition

Criteria for Selecting New Suppliers:


Business Goodwill
Price
Quality
Manufacturing Capacity
Technical Capacity
Reliability
Supplier location
Post selling Service
Supplier Evaluation

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Challenges:
Price Sensitivity
Maintaining Good Relationship
Sudden increase in price of raw materials
Wrong Specification in Shipment
Port Congestion in Connecting port

Export:
Process of Export:

9. HANDOVER
8. SENDING COMPLETE
6. PREPARATION OF 7. GETTING EXPORT
5. PREPARATION OF DO VESSEL DOCUMENTS TO
INV/PL/SC/CONSUM PERMIT FROM
BOOKING TO C&F FOR CUSTOM
PTION BEPZA
FORWARDER/A CLEARANCE
GENT

4. PREPARATION OF 10. PROVIDE DO AND CONTAINER


SHIPMENT PLAN AND SEND TO NUMBER TO WAREHOUSE
MIDAS SALES OFFICE SUPERVISOR AS PER SHIPMENT PLAN

1A. FROM
3.TAKE CONFIRMATION
2. CONFIRMATION MIDAS SALES
11. LOGISTICS
OF ORDER BASED ON ARRANGEMENTS AS PER
FORM PRODUCTION FOR OFFICE SHIPMENT PLAN
CAPACITY
ALL THE OUTSTANDING
ORDERS 1. ORDER
RECEIVE FROM
CUSTOMERS

1C. ENTER 1B. FROM 12. SHIPMENT ALERTS


ORDER IN SEND TO MIDAS SALES
INTERCOMPANY/
SYSTEM TEAM/CUSTOMERS
DIRECT
CUSTOMERS

18. FOLLOW- 14. RECEIVE


17. 16. PREPARE 15. PREPARATIO SSHIPMENT 13. POST GOODS
UP ON RECONCILE DELAY REPORT OF SHIPPING ADVICE FORM ISSUE WITHIN 24
OVERDUE TOTAL AND SEND TO DOCUMENTS AS AGENT AND HOURS OF
PAYMENT EXPORT WITH MIDAS ON 23RD PER CUSTOMER SENT TO MIDAS SHIPMENT LEFT
TWICE IN A ACCOUNTS EACH MONTH REQUIREMENT SALES TEAM /
MONTH
CUSTOMERS

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Documents Used in Export:
Certificate of Origin
Dock & Warehouse Receipts
Commercial Invoice
Insurance Certificate
Bill of Lading
Export Packing List
Certificate of Inspection

Pre Shipment Documents:


Packing list
Commercial Invoice
Consumption Report
Sales Contract
Export Permit (EP)
Export Form (EXP)
Shipping Bill

Packing List:
A packing list accompanies the international shipment and is used to inform
transportation companies about what they are moving as well as to allow the
customer and others involved in the transaction to check what has been shipped
against the proforma invoice.
It supports what is actually being shipped.

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It can accompany an inspection certificate.
It can be used as further evidence to support a method of payment
It is used by the buyer-seller to compare what has been ordered to what
has been shipped.
It is used to issue a bill of lading.

Commercial Invoice:
The Commercial Invoice is prepared by the exporter and is required by the foreign
buyer to prove ownership and arrange for payment. It is the primary document
used by most foreign customs agencies for import control, valuation, and duty
determination. The Commercial Invoice is required for all product/commodity
shipments for international trade.

Consumption Report:
The materials consumption report is a document used in the production process
to summarize the goods used during a specific accounting period. In other words,
the materials consumption report tracks how much raw materials and goods in
process are used to produce products during a period like a week, month, and
quarter.

Sales Contract:
A contract of sale is a legal contract. It is a contract for the exchange of goods,
services or property that are the subject of exchange from seller (or vendor) to
buyer (or purchaser) for an agreed upon value in money (or money equivalent)
paid or the promise to pay same. It is a specific type of legal contract.

Export Permit (EP):


An official document that is required to export certain types of goods.

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Post Shipment Documents:
Bill of Lading Draft Requirements:
If Consignee Shipping Bank, address is given the export form taken bank
If it is bank channel, Documents against payment, Letter of Credit, Documents
against acceptance are considered.
If Consignee Buyer, payment method is Direct TT.

2 types of acknowledgement:

Shipping Alert: shipment leaving factory


Shipping Advice: shipment leaving city or country

Telephonic Transfer:
Direct TT holds Customer documents until payment.
Direct TT 60/30 days doesnt hold documents

Letter of Credit:
Submit documents within 21 days of BL date.
Collect BL within 2 days of BL date
In terms of LC documents should be ready within 5 days of BL date.

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Incoterms:
Pricing terms, shipping terms, sales terms applied to international trade
Define the rights and obligation of the parties to the contract of sale with
respect to the delivery of goods sold.

MIDAS SAFETY BANGLADESH basically follows 4 incoterms.


Free on Board (FOB)
Cost & Freight (CFR)
Cost, Insurance & freight (CIF)
Free Carrier (FCA)

Free on Board (FOB):


Seller delivers when goods, cleared for export, pass the ships rail at the
named port of shipment.
The buyer bears all costs and risks of loss or damage to the goods from that
point.
Term can be used for sea or inland waterway transport only.

Cost & Freight (CFR):


Seller delivers when goods, cleared for export, pass the ships rail at the
named port of shipment.
The seller pays the costs and freight necessary to bring goods to port of
destination, but the buyer bears the risk of loss and additional costs
occurring after delivery.
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Term can be used for sea or inland waterway transport.

Cost, Insurance & freight (CIF):


Seller delivers when goods, cleared for export, pass the ships rail at the
named port of shipment.
The seller pays the costs and freight necessary to bring goods to port of
destination, but the buyer bears the risk of loss and additional costs
occurring after delivery.
The seller procures marine insurance, against buyers risk of loss. Seller is
required to obtain insurance only on minimum cover.
Term can be used for sea or inland waterway transport.

Free Carrier (FCA):


Seller delivers when goods, cleared for export, to the carrier nominated by
the buyer at a named place.
Term may be used irrespective of the mode of transport.
Seller obligated to load goods on arriving vehicle if it arrives at the sellers
premises.
Seller not obliged to unload goods from his vehicle.

Payment Terms:
Advance payment:
With a sellers point of view, an advance payment is the safe mode of payment
for any business including export business. Receiving amount of sales in advance
helps exporter in various ways to plan his financial activities smoothly. However
with a buyers point of view, advance payment carries little risk, as he advances
payment before dispatch of goods. Advance payment of term in exports and
imports is opted by a buyer only when he knows the seller in details on
genuineness as a seller.

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Letter of credit (L.C.)
Letter of credit is another type of payment term opted by importers and
exporters. The idea in an international trade transaction is to shift the risk from
the actual buyer to a bank. Thus a LC (as it is commonly referred to) is
a payment undertaking given by a bank to the seller and is issued on behalf of the
applicant i.e. the buyer. The Buyer is the Applicant and the Seller is the
Beneficiary. It is a safe mode of payment in international trade for both exporter
and importer. So LC is one of the safe types of mode of payment in international
trade. Midas Safety Bangladesh uses LC at Sight, LC 110, LC 90.

Bank Channel Involved Payment:

D.A.P or D/P basis - Documents against Payments:


Documents against Payment DP/DAP is another term of payment in
international trade. The D/P transaction utilizes a sight draft. Payment is on
demand. After the goods are shipped, the exporter sends the sight draft to the
clearing bank, along with documents necessary for the importer/buyer to obtain
the goods from customs. The buyer has to settle the payment with the bank
before the documents are released and he can take delivery of the goods. If the
buyer fails or refuses to pay, the exporter has the right to recover the goods and
resell them. On the surface, D/P transactions seem fairly safe from the sellers
perspective. However, in practice there are risks involved.

D.A terms means Documents against Acceptance:


Documents against Acceptance are another term of payment in international
payment. The D/A transaction utilizes a term or time draft. In this case, the
documents required to take possession of the goods are released by the clearing
bank only after the buyer accepts a time draft drawn upon him. In essence, this is
a deferred payment or credit arrangement. The buyers assent is referred to as
a trade acceptance. D/A terms are usually after sight, for instance at 90 days

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sight, or after a specific date, such as at 150 days bill of lading date. As with
open account terms, there are some inherent risks in selling on D/A. As with a
D/P, the importer can refuse to accept the goods for any reason, even if they are
in good condition. The buyer can default on the payment of a trade acceptance.
Unless it has been guaranteed by the clearing bank, the seller will need to
institute collection procedures and/or legal action.

Bill of Lading:
A document issued by a carrier, or its agent, to the shipper as a contract of
carriage of goods. It is also a receipt for cargo accepted for transportation, and
must be presented for taking delivery at the destination. Among other items of
information, a bill of lading contains (1) consignor's and consignee's name, (2)
names of the ports of departure and destination, (3) name of the vessel, (4) dates
of departure and arrival, (5) itemized list of goods being transported with number
of packages and kind of packaging, (6) marks and numbers on the packages, (7)
weight and/or volume of the cargo, (8) freight rate and amount. It serves as a
proof of ownership (title) of the cargo, and may be issued either in a negotiable or
non-negotiable form. In negotiable form, it is commonly used in letter of credit
transactions, and may be bought, sold, or traded; or used as security for
borrowing money. A bill of lading is required in all claims for compensation for
any damage, delay, or loss; and for the resolution of disputes regarding ownership
of the cargo. MIDAS SAFETY BANGLADESH uses BOL 60 & BOL 70.

Direct TT:
T/T stands for telegraphic transfer, a form of bank transfer. T/T payments are a
cheap and fast way of transferring money overseas through most banks. Bank
transfers (also known as telegraphic transfers or T/T) is one of the simplest forms
of international transfers. In traditional international trade, its risky for buyers to
pay using bank transfers because their money goes into the suppliers bank
account directly - before they are able to receive their order. Payment is only
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released to the supplier when you confirm satisfactory receipt of your order. In
MIDAS SAFETY BANGLADESH payment is paid in bank and documents are send by
courier.

Challenges:
Port Congestion & Crisis
Shipping Problem
Handling Customer Query
Bill of lading collection within 2 days of selling date
Complete error free documentation

HS Code:
HS code stands for Harmonized System Codes. These code initials are worldwide
same. Suffix changes according to particular product.

Applications:
HS code are used by Customs authorities, statistical agencies, and other
government regulatory bodies, to monitor and control the import and export of
commodities through:
Customs tariffs
Collection of international trade statistics
Rules of origin

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Collection of internal taxes
Trade negotiations (e.g., the World Trade Organization schedules
of tariff concessions)
Transport tariffs and statistics
Monitoring of controlled goods (e.g., wastes, narcotics, chemical
weapons, ozone layer depleting substances, endangered species)
Areas of Customs controls and procedures, including risk assessment,
information technology and compliance.
Companies use HS codes to calculate the total landed cost of imported and
exported products and parts, and to identify selling and sourcing opportunities
abroad.

CBM:
CBM stands for "cubic meter" in shipping. This measurement is calculated by
multiplying the width, height and length together of one's carton, and if one has
multiple cartons to ship, by adding the CBMs of each carton together.

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Calculation of CBM:
If company A orders 1,44,000 Pair of gloves and If there is 5 line item, each line
consists of 28,800 pair of gloves.
Details of Packing Instruction:
Cust
ome
Pairs
Custo r Bundle Carton
FG per
Our Style mer Glov per Dimensi
CODE bund
Style e Carton on
le
Nam
e
TOU 12 12 BUN
BC5-440-072- N059N A118 38X28X2
GH PAIR CTN 3
9N-GY-S OGY1 921 9 CM
SKIN S PLY
TOU 12 12 BUN
BC5-440-072- N059N A118 38X28X2
GH PAIR CTN 3
9N-GY-M OGY1 922 9 CM
SKIN S PLY
TOU 12 12 BUN
BC5-440-072- N059N A118 38X28X2
GH PAIR CTN 3
9N-GY-L OGY1 923 9 CM
SKIN S PLY
TOU 12 12 BUN
BC5-440-072- N059N A118 38X28X2
GH PAIR CTN 3
9N-GY-XL OGY1 924 9 CM
SKIN S PLY
TOU 12 12 BUN
BC5-440-072- N059N A118 38X28X2
GH PAIR CTN 3
9N-GY-XS OGY1 920 9 CM
SKIN S PLY

Number of pair in each Carton = (12*12) = 144 pair or 12 Dozen Pair


Number of carton required = 144000 /144= 1000 Carton
CBM Calculation Formula: Length (centimeter) x Width (centimeter) x Height
(centimeter) / 1,000,000

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CBM Calculation Without tolerance = {(38*28*29)/1000000} = .0309 (Per carton
CBM)
CBM Calculation With tolerance= {(38*28*29)/1000000}*1.03 = .0318 (Per
carton CBM)
MIDAS SAFETY BANGLADESH tolerance of CBM is 3%
CBM for this order= 1000*.0318= 31.8

Container types and measurements:


Container 20 ft 40 ft
2,930 kg 3,900 kg
kg lbs.
6,062 Ibs 8,708 Ibs
Cubic meters 27.9 cbm 56.1 cbm
Cubic feet 986 cu. Ft 2,000 cu. ft.

Problems of MIDAS SAFETY BANGLADESH:

MIDAS SAFETY BANGLADESH faces generally two types of problems. They may be
internal or external problems.

Internal Problems:

Poor investment in research and development.


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Lack of infrastructural development of the organization.
Have no own power supply system.
Have no local supply of raw material.
Inadequate training and development program.
Lead time
Raw Material availability

External Problem:

Political instability in Bangladesh.


Increasing inflation
Corruption in the port.
Lengthy process for exporting of the goods.
Non-availability and non-frequency of transportation.
Other Cultural differences like working attitudes, language, education and
dexterity etc.
Lack of proper supply of gas, water, electricity and so on.
Labor union causes a lot of problems in case of export oriented
organization.

Economic factors: Exchange rate fluctuation, trade policy, trade relation with
other country, tax rate, tariff and others non-tariff barriers

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Recommendation:

Some recommended suggestions are given below:

Establishing separate marketing department to promote Products of Midas


Safety Bangladesh.
Building separate website for IHPL to promote products.
Proper implementation of segmentation, positioning and targeting process
in the market.
Proper branding to make company familiar to the target customers.
Participation in fairs to promote products.

Continuous quality improvement concept should be applied for the


improvement of the quality of the product.

Investment in research and development has to extend to initiate a new


idea.

MIDAS SAFETY BANGLADESH should try to produce raw material in


production country.

MIDAS SAFETY BANGLADESH should introduce the updated technology in the


production to increase productivity.

MIDAS SAFETY BANGLADESH should think the possibilities of selling more its
products in Bangladesh.

MIDAS SAFETY BANGLADESH should introduce the housing facilities for the
employees.

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MIDAS SAFETY BANGLADESH should try its best to minimize the lead time of
the shipment of hand gloves.

MIDAS SAFETY BANGLADESH should be more social responsible and


environment friendly company.

CONCLUSION:

By Observing the above discussion we can conclude that the company has been
maintaining excellent performance since its beginning. Apart from the startup,
this matter of proud for company that it never incurred a loss since 2010. The
overall performance of accounting, management, and cost systems of Industrial
Hand Protection Ltd. is to some extend conventional issue. The products of the
company have wide market demand all over the world. The company earns a lot
of foreign exchange which plays an important role in our national economy.
Industrial Hand Protection Ltd is already role model for export oriented industry
sector within few years. Because of its quality product, uniqueness of their
product, export volume and so on. Some of the strong points of Midas safety that
should be mentioned are:

Innovation
Verities of product
Best quality ensured at reasonable price
Skilled personnel

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One of the main problem is that MIDAS SAFETY BANGLADESH uses automated
machineries which hamper targeted production in case of electricity disruption. It
imports all raw materials but it sometime faces problems due to time limitation. If
MIDAS SAFETY BANGLADESH can overcome its drawbacks it will increase a large
extent the volume of profit. The production capacity of MIDAS SAFETY
BANGLADESH is limited because of their limited area. So this need to be
considered by concerned authority. By analyzing sales trend and financial
statement, profit and production diagram of MIDAS SAFETY BANGLADESH, we can
say that the overall performance of MIDAS SAFETY BANGLADESH is up to the
mark.

References:
http://bd.midas-safety.com/
Midas Wiki
https://en.wikipedia.org/wiki/Personal_protective_equipment

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