“Supply Chain Management Strategy Of

Agora”
“Supply Chain Management Strategy Of
Agora”

Submitted To.

Zannatul Ferdous Moury

Lecturer
Department of Business Administration
City University of Bangladesh

Submitted BY.

Md. Arif Hossen

ID #153401332
Department of Business Administration
City University of Bangladesh

Date of Submission
29-02-2020
 Chapter: One

1.0 Introduction
The super stores are currently focused in food retailing, ranging from a
wide variety of fresh vegetable, fruits, meat and fish to grocery, bakery,
dairy, personal and household products. It provides its customers with
guaranteed quality and freshness. It carries many varieties of products
and has plans to expand its product portfolio to carry other ranges of
consumer products in the coming years. It buys products direct from the
growers, which benefits the latter as well as the customers. The products
are procured under the direct supervision of its officials who maintain
strict procurement and marketing standards. Products on the shelves are
regularly monitored for expiry dates. About 2,000 customers use every
day in every stores. Customers prefer using both cash and credit cards.
The super shops are open from 8 am to 9 pm every day.

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 Chapter: Two

2.1 Management of Supply Chain

Management of the supply chain depend on various decision, such as

Supply chain strategy or design: This decision involves how to structure

the supply chain. It is process of making a configuration of the chain. It
involves the decision regarding the selection of locations, mode of
transportation and capacities of the production unit.

Supply chain planning: It is decision regarding the planning of the set of

operating policies to be performed to achieve the framed objectives for
short term period. It involve the plans of inventories production, supply
target, subcontracting, replenishment of the stock etc.

Supply chain operation: The Company makes weekly and daily decision
regarding the operations based individual customer orders. It involves
allocation of the individual orders to inventory or production department
with due dates, generation of pick lists, allocation of orders to shipment
etc.

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 Chapter: Three

3.0 Company overview of Agora

3.1 About Agora

The name of Agora is entwined with the glory of-the Agora’s marketing
policy “to create a better environment for consumers”. The success was
immediate as there was a demand for such business in the local market.
Agora is a Dhaka-based supermarket chain. It is the largest retailer, both
by local sales and by domestic market share, and the largest retailer in
Dhaka leaving behind Shwapno, Meena Bazar, Nandan Mega Shop,
Pacific, Pick and Pay etc, Shop & Save and others.

Rahimafrooz Superstores Ltd. (RSL) launched Agora the first ever retail
chain in Bangladesh in 2001. Agora promises a valuable shopping
experience that provides quality and fresh products at the right price. It
aims to consistently provide a remarkably satisfying and valuable
shopping experience through a business that improves the quality of life
for customers and team members.

With outlets in major locations throughout Dhaka, and many more being
planned in Dhaka and other major cities, Agora is endeavoring to fulfill
the everyday needs of its customers by providing the right quality,
assortment and price through stores of various forms and sizes.

While Agora mainly focuses on food items - ranging from a wide variety
of fish, meat, vegetables, fruits, bakery, dairy, and grocery - it also carries
a vast array of other grocery, personal care, and various other consumer
goods and household utensils. There are 30,000 different products and
SKUs at any point in time in each of the Agora outlets.

Agora Ltd. is an enterprise that combines industry and trade, mainly

engages in retailing the quality products at the lowest price in the market.
The management of Agora, was an enthusiastic advocate of trading
stamps as an inducement for shoppers to patronize their stores: They
signed up with all types of quality products manufacturer, and became
one of the company’s largest clients. But the management was a fan of
pile it high and sell it cheap, and in the mid-2000 Agora faced many cost
problems associated with not properly integrating its purchased chains of
stores. When the firm overstretched itself opening few more outlets

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throughout the city, management consultants were called in to sort out the
mess.

Other supermarket brands have since emerged but Agora continues to be

the leader and trendsetter. Agora has been the venue of launching of Thai
products, which have by now become commonplace. Californian apples
were launched here as have been Agora buys products direct from the
growers, which benefits the latter as well as the customers. The products
are procured under the direct supervision of its officials who maintain
strict procurement and marketing standards. Products on the shelves are
regularly monitored for expiry dates.

Australia’s red apples, and crystal products from France were unveiled
here. Unilever chose to launch L’Oreal range of cosmetics at Agora
superstores. The big-sized ‘Boroi’ so common in the market was
launched here. Recently the scientist behind the cultivation of Strawberry
in Bangladesh launched the delicious fruit at Agora.

3.2 Corporate information

The Rahimafrooz journey dates back to the early fifties when Late Mr. A
C Abdur Rahim founded a small trading company and paved the way for
making of one of today’s leading Bangladeshi business conglomerates.
Over the decades, Rahimafrooz has grown in size, scale, and diversity.
The Group today has seven Operating Companies, three other business
ventures, and a non-profit social enterprise. As of 2014, the Group
currently employs more than seven thousand people directly and a further
twenty thousand indirectly as suppliers’ contractors, dealers and retailers.

Rahimafrooz strengthened their market leadership at home while reaching

out to international markets.

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 Chapter: Four

4.0 Supply Chain Strategy Of Agora

Supply chain of Agora is not a lengthy process. Basically their supply

chain is totally warehouse-based. Agora has a large warehouse. At first
they store the entire product from different manufacturer in their
warehouse. The transportation cost is totally born by the manufacturing
company. Then the stored products are distributed through the Agora‟s
own vehicles to its several outlets. There is no intermediary between
warehouse of Agora and manufacturing company like Unilever. No
product directly comes to the outlet without the hand of warehouse. These
are the supply chain of Agora at a glance. Now the product wise supply
chain explanation of Agora.

4.1 Supply chain of Agricultural product

The supply chain of agricultural product of Agora is too much flexible.

Agora has contract with some agricultural firms like vegetables firms,
hatchery, poultry firms, mushrooms firms, dairy & flesh firms (milk, beef,
mutton) etc. These firms supply fresh agricultural items as daily, 2 days,
3 days, weekly, biweekly or monthly based to Agora. The transportation
costs are taken by the producer. All the products are first come in
warehouse. Then these deliver to outlets.

Producer
(Fishery)

Producer
(Vegetables)
Supplier Warehouse Outlets
Producer
(Dairy firm)
Customer
Producer
(Apparels)

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4.2 Supply chain of consumer goods

In case of consumer goods Agora has contract with the manufacturer like
Unilever, Reckit Benkizer, Square, Keya, Kohinoor Camicales etc. This
company directly deliver product to the warehouse of Agora. There is no
intermediary between this two. The products are never come to the outlets
without the hand of warehouse.

Supplier Manufacturer Warehouse Outlets

(Unilever)

Customer

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 Chapter: Five

5.0 Conclusion

Since the concept of supply chain management was introduced, there has
been a great deal of confusion about what it actually involves. While
some managers and researchers continue to use supply chain management
interchangeably with logistics, there is an increasing understanding that it
is much more than logistics. In recent years, many authors have stressed
the importance of implementing supply chain management as part of a
process orientation to management. Agora’s main concept hinges on its
ability to meet the needs of a more advanced society where the working
wife prefers to make at-a-time purchases of daily needs less than one roof.
Form a careful analysis of the ideas and marketing concepts at work in
the operation of Agora, it has been possible to obtain an insight to the
essential marketing practices adopted by such retail stores. In a highly
volatile business environment the quest for excellence does not end easily.
By adhering to proper marketing strategies and putting its target market
in top most priority, Agora has been able to edge towards competitiveness
with few formidable rivals to challenge its present position Evidently, by
virtue of its high quality” assurance, provision of a wide assortment of
local and foreign products, and a touch of luxury to appeal to the mind of
shoppers, Agora has been able to establish itself as a store that makes
every effort to cater to customer satisfaction.

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 Chapter: Six

6.0 Reference

i. Keely L. Croxton, Sebastián J. García-Dastugue and Dale S. Rogers

(2010), “The Supply Chain Management Processes” Vol. 12, No. 2,
pp. 1-2 & 20
ii. Avizit Basak & M. M. Israfil Shahin Seddiqe (2014), “Supply Chain
Management of Super Shops in Perspective of Bangladesh” Vol. 14,
Issue. 9, pp. 2-5
iii. Margaret Rouse, Definition Integration. Available at:
http://searchcrm.techtarget.com/definition/integration Accessed on:
29/04/16
iv. Sayed Sarwer Hussain and David Leishman, (2013), “ The Food
Retail Sector in Bangladesh” Vol. 4, No. 1, pp. 4