SUPPLY CHAIN MANAGEMENT OF FRESH VEGETABLES IN SUPERSTORES: A

CASE STUDY OF BANGLADESH

Prepared by:
Ahmed Iftekhar, DBA student, IBA
Mohammed Shakhawat Hossain, DBA student, IBA
Dr. Muhammad Ziaulhaq Mamun, Professor, IBA
Mustaque Ahmed, Associate Professor, IBA

24 December 2016
 SUPPLY CHAIN MANAGEMENT OF FRESH VEGETABLES IN SUPERSTORES: A
CASE STUDY OF BANGLADESH
Abstract
Retail superstore business is becoming more popular day by day in Bangladesh. Among
hundreds of their product range, fresh vegetables are basic commodity and essential product.
However, supply chain of fresh vegetable is very complex due to the involvement of multiple
parties. Also fresh vegetables are sold in local marketplace by traditional retailers and
immensurable number of hawkers. At present, a large numbers of people are associated with
handlings of vegetable products. Typically most of the superstores carry a large volume of
inventory in Bangladesh. Due to ineffective and aggressive forecasting the result is considerable
wastage. The superstores use the frozen vehicle for shipping fresh vegetables, which incur higher
cost as well. Utilization of information technology is still in preliminary level. These are all
increasingly becoming the challenges for supply chain of fresh vegetables. Moreover,
superstores can increase efficiency in the sourcing process. The current practice shows a higher
dependency on suppliers. It can be reduced through own farming and sourcing directly from
contract farmers. Now suppliers are delivering vegetables to the warehouse; however,
improvement can be done through supplying directly to the outlets. Nevertheless, quality is a big
concern and it can be ensured from the firm or supplier level. Growers need to be skilled in order
to deliver the quality product with less wastage to be competitive in the market. All these
changes supposedly optimize the cost and increase efficiency of managing its supply chain.

1.0 BACKGROUND
Bangladesh is achieved to produce all kinds of fresh vegetables farming. Its favorable climate
and atmosphere encourage farmers to grow vegetables in different seasons at almost the entire
year. The fresh vegetables are sold by farmers directly or through middle men/ hawkers to the
local markets (Mahmoud et al. 2005). But being highly perishable these must be sold within few
days or hours after harvest (Jumper 1974).
Supermarket is a potential and emerging business in Bangladesh. It boomed drastically in the last
one decade. Approximately 200 supermarkets in Bangladesh are in operation, and the annual
turnover in food items is estimated at about 2 percent of food retailing (Hussain & Leishman,
2013).The impact of supermarkets in emerging countries has received much attention among
individual producers in recent years (Boselie et al, 2003).
Among hundreds of products, fresh vegetable is one of their basic products. However, the supply
chain management of fresh vegetable is not simple. One of the major challenges is marketing
fresh vegetables due to its physical origin, but others effect from sluggishness in the marketing
practices and from unpredictability of supply sources (Jumper, 1974).
A successful super market business not only depends on how it serves its customers but also the
efficiency and effectiveness in its supply chain. The supply chain of superstores differentiate
themselves from traditional market through focused logistic facilities and a concentration on
value-added activities (Boselie et al, 2003).
This report considered one of the largest superstore chains of Bangladesh named Meena Bazar
and its supply chain process of fresh vegetables as an empirical example. Meena Bazar sells wide
range of vegetable products in their outlets. At present, few top superstore brands in Bangladesh

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Supply Chain Management of Fresh Vegetables in Superstores
operating splendidly in retail and online market (Munni, 2010). These superstores are not only
focused to deliver the products to its customers but widely focusing on to giving a pleasant
experience. So an effective supply chain will not only help them to succeed in market but it will
also help the entire value chain of fresh vegetables in Bangladesh.
1.1 Objectives
Broad objective:
To analyze the supply chain management practices of fresh vegetables at superstores of
Bangladesh.
Specific Objectives:
1. To identify the current phases of supply chain drivers for fresh vegetables in superstores.
2. To identify the pitfalls and obstacles in the existing drivers and distribution model of fresh
vegetables in superstores.
3. To develop a supply chain distribution model for the superstores in Bangladesh for fresh
vegetables.
2.0 METHODOLOGY
This is an exploratory case study. The research is based on both primary and secondary data.
Primary data like in depth interview including on site observations were documented. Secondary
data like published paper, journals, research publication, news articles, were considered in this
report.
 In depth interviews and on site observations.
 Published Materials- Journals &News Articles.
 Local Industry Association (Vegetable Market Grower Association), Government &
other relevant websites.
Here, Meena Bazar one of the top superstore brands in Bangladesh was considered as an
empirical example. Among the 16 outlets of Meena Bazar across Dhaka city, 4 outlets were
selected randomly for interviews and observations. Non probability sampling like judgemental
sampling method was considered.
The interviews were conducted with the General Manager and Outlet/Branch Manager. The
supply chain process, forecasting techniques, the distribution networks and the drivers of supply
chain for fresh vegetables were elaborately discussed during in-depth interview. Apart from that,
the entire supply chain process and physical handling were monitored.
The challenges during this study were evaluated carefully. The information is a key aspect of any
research. In Bangladesh, most of the superstores do not maintain the historical data in their
website. Another challenges or limitation in this research is the publication source. Since there
are very limited research papers on local fresh vegetable market and its supply chain, this was
difficult to obtain market information and real competitive scenario.
3.0 LITERATURE REVIEW
Today’s economy is rapidly growing, fast changing and globally connected. The food and
agribusiness sectors are also rapidly globalizing and industrializing (Cook et al.2001).Now the

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Supply Chain Management of Fresh Vegetables in Superstores
Market is global and consumers are in a single worldwide community. Considering the growing
need of consumers, supermarket is increasingly becoming a potential and emerging business in
Bangladesh. The food marketing system in Bangladesh is normally “shaped” by the large
number of farmers who produces and sells across the country (Hussain & Leishman, 2013).The
annual turnover of superstore business is around Taka 15 Billion in Bangladesh according to
Bangladesh Supermarket Owners’ Association (Munni, 2010).
According to Bangladesh Supermarket Owner Association, their annual growth is around 15%-
20% (Sarker & Afroze, 2015). Supply chain of fresh vegetables can "refers to the entire vertical
chain of activities: from production on the farm, through processing, distribution, and retailing to
the consumer — in other words, the entire spectrum, from farm to consumer's plate" (Hobbs et
al., 2000, p. 9).
Supply of fresh vegetables started long back within a considerable distance by inland waterways
only in seaboard cities (Kitchen, 1949). However, it improved and different supply models
developed over time. Agriculture is the soul for the developing economies, but the supply chain
management for their fresh vegetables is less accentuated. “Among them any stakeholders
involved in the vegetable marketing system in Bangladesh are farmers, beparies (traders),
aratdars (commission agents), stall holders, retailers and exporter” (Mahmoud et al; 2005,
p.139).
Based on a rational critique over the available models of supply chain management, Jack et al.
(2000) developed a general model of the supply chain management for fresh vegetables by
taking major variables into considerations. Boehlje (1996, p. 30) describes agronomic progress
by way of "the application of modern industrial manufacturing, production, procurement,
distribution, and coordination concepts to the food and industrial product chain".
Wholesale market structure for fresh vegetables in 70’s (Jumper, 1974)is a classic example for
fresh vegetables marketing. Even in today’s world, most of the growers and retailers follow the
similar distribution network. However, in past days the market structure was most complex
(Jumper, 1974) due to unavailability of communication system like mobile phone/ computer. The
seller and buyer didn’t have instant messaging system where they could select or set the price
instantly. That is why they were used to using different other platforms like bargaining
association, redistribution market etc.

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Supply Chain Management of Fresh Vegetables in Superstores
 Figure 1: The vegetable Marketing chain in Bangladesh (Source: Mahmoud et al, 2005: p.143)

The above figure shows how traditional market channels works in Bangladesh. However, due to
the resident of high income group of people in cities, mainly Dhaka (Mahmoud et al, 2005) the
supermarkets got popularity among buyers and people are also getting more familiar with
supermarket shopping. Consumers’ preferences are shifting from traditional market channel to
supermarkets.
Modern perishable food market chain is in some cases simpler due to the improvement of
communication system including mobile phone, internet and IT system. However, in many cases
it becomes complicated due to worldwide food and nutrition pressure, excessive consume of
foods. In context of Bangladesh market, farmers can directly sell and reach to consumer. Also
transportation, availability of commuter made it easy for growers to reach to the retailer
(Mahmoud et al, 2005).
Long- term partnerships is also important for seasonal demand products like perishable fresh
vegetables (Boselie et al, 2003). This helps to maintain quality and reduce costs. It enhance the
credibility and trust among the partners. Supply chain in superstores for fresh vegetables is more
efficient since it removes numerous wholesalers those are not adding any values (Boselie et al,
2003).
4.0 SUPPLY CHAIN PHASES OF FRESH VEGETABLES
The fresh vegetables supply chain generally starts from the farmers. Most of the large superstore
chain lease farms for perishable vegetables and fruits, where they recruit, train farmers and
produce vegetables. The vegetables from the own farms usually goes to the warehouse. In
addition, superstores frequently trade with selected suppliers. These suppliers regularly collect
order as per need and deliver to the company warehouse.
The quality checking typically happens in the warehouse. Once the quality checking is done, the
fresh vegetables get transferred to the outlets. These suppliers collect vegetables from

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Supply Chain Management of Fresh Vegetables in Superstores
independent farmers. Besides, they collect from Aratdar/ Bepari (Middlemen). This process start
very early in the morning and vegetables reach outlet by morning. Here multiple layers of supply
chain involve in every steps, from warehouse to shipment to store/ outlet.

Figure 2: A typical Supply chain flow for fresh vegetables in superstores

The four basic tasks: unpacking and inspecting incoming goods; placing goods in shelf,
recording their location; and shipping are done by the employees. All the quality checking and
inspection is commonly done in the warehouse. From warehouse the products are distributed to
its outlets through their own vehicles. Most of the superstores use cold storage system in the
warehouse as well as outlets to carry and preserve the fresh vegetables in their outlets. According
to existing distribution network the customers typically pick fresh vegetables from outlets.
Nowadays, customers can buy online/ via home delivery system.

Growers: Supplier: Warehouse: Outlets:

- Own farm - Ensure - Quality check - Packaging &
(Organic demand - Packaging & labeling
vegetables) - Primary quality labeling - Price tag
- Sourced from check - Receive and - Stocking/
selected supplier dispatch Placing in
shelves

Figure 3: Supply chain phases of fresh vegetables in Superstores

4.1 Existing Distribution Network

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Supply Chain Management of Fresh Vegetables in Superstores
In our study we can see that Meena Bazar have their selected suppliers who collect vegetables
from growers. Also they have own farms. The fresh vegetables typically goes to warehouse for
quality checking and then shipment to outlets by own vehicles. Since these are retail outlets,
customers pick product directly from outlets.

Figure 4: Existing distribution network of fresh vegetables in Superstores

4.2 Online Order/ Home delivery System of Fresh Vegetables

Apart from outlet sells, Superstores also sell any of their products through online order. They do
not need any additional logistics or tools for selling fresh vegetables since the selling model is
almost same for every product they sell online. However, for online selling Superstores need to
incur additional handling and transportation cost in order to deliver in the doorstep. Usually for a
certain amount of buy the delivery charge is free for the customers. Most of the superstores
which sell online maintain their own motorcycle/ vehicles for home delivery. The delivery time
is maximum one hour within a 2-5 Km range.

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Supply Chain Management of Fresh Vegetables in Superstores
 Figure 5: Online delivery system for Fresh Vegetables

In our observation we can see, some of the superstore chain sells around Taka 100,000- Taka
200,000 from perishable items through online sell per month. The amount is higher in the month
of Ramadan. Most of the superstores have nominated person for handling online order till
monitoring up to home delivery.
5.0 DRIVERS OF SUPPLY CHAINFOR FRESH VEGETABLES
5.1 Facilities and Handling: Superstores usually lease or rent its outlets& warehouse for
medium to long term. In some cases they also built outlet and warehouse in their possess land.
Most of the superstores in Bangladesh operate in a small to medium size outlets (2,500 sq. ft to
10,000 sq. ft). Around 10% spaces are allocated for fresh vegetables. However, in our case study
we can see that only 5% of annual sales come from fresh vegetables.
Every outlet involves 2-3 persons to 8-10 persons in warehouse for handling fresh vegetables.
These people receive fresh vegetables in warehouse from supplier, check quality, ensure
packaging and deliver to outlets through their vehicles as per demand. Sometimes in small
outlets, sales persons or teller can be part of handling vegetables including labeling, price tagging
and so on.

Facilities lie here

Highly responsive Highly Efficient
Responsive

Figure 6: Facilities in the spectrum Efficient

The current model of Meena Bazar shows that they are highly responsive. They are keeping extra
shelves to accommodate all vegetable products. However, Tesco follows six different formats of
stores from out of town hypermarkets like Tesco Extra store to smaller outlets like Tesco metro
(Kelly, 2009). Here, superstores in Bangladesh can follow similar model. Since Meena Bazar is
operating their own warehouse in 5 acres of land. They can easily set up a large outlet adjacent to
warehouse. Instead of one large warehouse, Meena Bazar can consider 3-4 warehouses in Dhaka.
Adjacent to each warehouse an out of town warehouse can easily establish. These outlets can
offer discounted price to attract large volume buyers being its low cost of operation. In addition,
this will reduce facilities cost for keeping low spaces available in warehouse for fresh vegetables
and other products.

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Supply Chain Management of Fresh Vegetables in Superstores
5.2 Inventory: Inventory of fresh vegetables in superstores is customarily higher in Bangladesh.
They carry almost everything with a good amount of stock in their shelf due to keeping the stock
always available. Even for fresh vegetables, if anything is unsold which expire the shelf life,
goes to the bin. However for some vegetables, if it can be stored properly may continue in the
shelf for another day. Most of the fresh vegetables have only 1-3 days of shelf life, in the existing
freezing system of the superstores. However, the off season item usually store in warehouse for
longer time (4-5 days).

Figure 7: Inventories in the spectrum

Inventory lies here
Highly Responsive Highly Efficient
Responsive Efficient

At present most of the superstores in Bangladesh are very responsive to maintain their inventory.
Every day the vegetable products got replenish. Being perishable items, fresh vegetables should
be kept their inventory in a balanced quantity level. A Superstore usually sale 50-60 items of
fresh vegetables in each outlet. In addition, they need to keep some off season/ slow selling
vegetables in shelf, in order to retain/ attract the customers. So only a balanced quality and a
conservative forecasting of inventory can reduce cost.
Each warehouse can have an adjacent outlet, so that shipment cost gets reduced and the large
outskirt outlets can also carry a large number of inventories.
5.3 Transportation: In this study we can see that, Meena Bazar has their own vehicle for
handling fresh vegetables from warehouse to the outlets. They have 10 cold storage vans for
carrying vegetable and meat/fish. Maintaining these vans is very expensive. Each van
maintenance cost is Taka 80,000 to Taka 100,000 per month including fuel, driver’s salary,
support staff salary and its maintenance cost. The response time of Superstores is low as they try
to make available all the fresh vegetables for the customers.
Figure 8: Transportation in the spectrum
Transport lies here
Highly Responsive Highly Efficient
Responsive Efficient

Vehicles carry vegetables; deliver at store and return empty and in some cases with some
wastage. Being warehouse managed in centrally, Meena Bazar is highly dependent to its own
transportation-which in fact increased their cost of vehicle running, maintaining and operating. If
they could outsource to other supplier including shipment then this would reduce the
transportation cost for Meena Bazar.
Another observation of keeping own transport system is, these are utilized in the morning and
rest of the day these vehicles are in less than 50% of its capacity usage. These 10 vehicles are
only for 16 outlets in Dhaka. Now they should reconsider the number of vehicles. And

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Supply Chain Management of Fresh Vegetables in Superstores
considering the frequency of usage, they can keep few non frozen vehicles or van for 16 outlets
in Dhaka. This will save around Taka 4-5Million each year.
5.4 Information: Most of the superstores have their own information management system
software for tracking the vegetable products till sales reporting. An effective information flow is
essential. An ERP/SAP system is required to track the product from procures to pay in online
tool.
Though ERP system, Superstores can improve on:
• Better visibility of Fresh Vegetables: Improve demand supply visibility for decision making.
• Higher accuracy or appropriate forecasting: Increase planning accuracy for procuring fresh
vegetables.
• Better efficiency: Improve operation efficiency to integrate planning to procurement /
production execution
Figure 9: Information in the spectrum
Information lies here
Highly Responsive Highly Efficient
Responsive Efficient

However, the challenge includes enabling simulation for business scenarios such as priority/
allocation change or demand upside and order pull in, last time buy, supply disruption etc could
be difficult to handle through information system. Human intervention is always required to
managing the SAP system. In addition, as per current model, the warehouse does not get any
notification for shortage of any vegetable until the stock is over or manually communicated. If it
can be automated order system, then easily warehouse would be aware about that. The
information system can be also connected with the suppliers to be more effective and hence
suppliers would be able to manage their supply chain efficiently.
5.5 Sourcing: Most of the superstores typically sources vegetables mainly in two ways:
A. Own farm: Where they grow fresh organic vegetables by their own growers. These growers
are recruited and trained staff.
B. Suppliers: Another way of sourcing fresh vegetables is through dealer/ supplier. These
contract dealers’ works closely with the chain shop value chain. Most of the time dealers of
vegetable supply it to the warehouse. After quality checking, it goes to the outlet.
The present model of sourcing is expensive for Meena Bazar. Suppliers are sending to the
warehouse and then warehouse to outlets. This way of supplying is influencing the cost.
Figure 10: Sourcing in the spectrum
Sourcing lies here
Highly Responsive Highly Efficient
Responsive Efficient

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Supply Chain Management of Fresh Vegetables in Superstores
 Sourcing can be done directly from suppliers and farmers where quality checking can be done in
the point of sourcing. Meena Bazar is now sourcing mostly from suppliers. Being highly
responsive the cost is higher now, which eventually reduces their profit margin for fresh
vegetables. If sourcing can be done from multiple sources including directly from farmers,
middlemen, aratdar, etc would reduce cost and will be more efficient. Superstores have to sell
commodity product like vegetables in a market price. This is necessary to be efficient to compete
with local hawkers, retailer etc.
5.6 Pricing: For selling fresh vegetables, superstores normally follows a competitive pricing
strategy and keep changing the vegetables price according to the market price. The average
selling from fresh vegetables in a store is average Taka 500,000 –Taka 600,000 per month in
Dhaka. Any store located in high income area is comparatively high selling than low selling
outlets in low income areas.

Pricing lies here

Highly Responsive Highly Efficient
Responsive Efficient

Figure 11: Pricing in the spectrum

Since most of them maintain a competitive pricing, this can be considered as highly efficient.
However, maintaining a competitive pricing is not so easy. Often they end up selling in loss to
maintain the market price. However, Meena Bazar considers this as retention of customer
strategy even if the price of the goods is less than the cost.

In the analysis, it also observed that instead of competitive pricing, Meena Bazar can attracts
customers with other marketing strategy like promotion, discounts, different offers, loyalty cards,
etc to attract and retain customers. Also price can be varied on store to store basis. Expensive
located store can charge premium price than low cost location. Considering the buying pattern of
locality, off season items can be pushed/ promoted in exclusive stores than average outlets.

5.7 Forecasting Technique: In Bangladesh, most of the superstores follow time series
forecasting technique. Their assumption is their past demand is good indicator for their future
demand. Majority has their own forecasting model and lead time of vegetables replenishment. In
addition, they often offer discounted price and promotions for perishable items including
vegetables. Other than that, they follow:
 Weekly observation: considering a particular day to observe how much sold in that day and
accordingly procure in the whole week.
 Seasonal forecasting technique: for long weekend, festivals and seasonal vegetables.
However, this study suggests that superstores should follow seasonal forecasting since the
buying pattern of retail market depends on the seasons heavily. People normally consume more

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Supply Chain Management of Fresh Vegetables in Superstores
in Ramadan in Bangladesh. So if they can ensure the right forecasting for Ramadan, then they
will gain better advantage in terms of pricing and managing wastage. In addition, superstores in
Bangladesh should follow daily and weekly forecasting model in order to be conservative and
reduce wastage,
5.8 Customer Service: This is another important factor for not only fresh vegetables but also to
run a successful superstores business. In order to provide the customers with the best possible
value for their money, vegetables are sourced directly from selected suppliers, while ensuring
high quality, freshness and continuous availability. Also superstores sell fresh vegetables at same
price that customers are buying for local groceries/stores. So there should be both responsive and
efficient in terms of giving pleasant experience. In order to retain the maximum number of
customers, superstores need to be committed in order to deliver the best available vegetables to
the customers.
Nevertheless, in Bangladesh general retailers gives fewer efforts to improve customer experience
in comparison to the growing superstore market in Bangladesh. Many new local chain and
investment is coming in superstores business in Bangladesh which will have significant
improvement of customer experience.
6.0 ANALYSIS OF DISTRIBUTION NETWORK OF FRESH VEGETABLES
Among the six types of distribution networks (Chopra et al, 2013), superstore is mostly suited
with Retail storage network with customer pickup. The response time is the most important since
consumers pick directly from the store in a same day or immediately. For fresh vegetable
products the response time will remain ‘1’. According to North American Standard product
variety in retail and product availability were scored ‘4’, since retail can carry less product
variety and it will be expensive if retail would try to keep everything available. From our
analysis in superstore market of Bangladesh, we can see that they emphasize more on product
variety and availability. So here we can score them ‘3’. The logic of superstores in Bangladesh is
the situation will be difficult to create loyal customers if they switch for not getting product
available in the store.
Superior customer experience is also essential for superstore business. The order visibility is also
strong like other retail. The returnability is usually low in Bangladesh compare to other
countries. In Bangladesh, customer prefers not to return the product rather they stop shopping
from the outlet which cannot satisfy the expected need. Inventory, transportation and information
carry high weight for fresh vegetable business in any superstore. The Standards of facilities and
handling was considered as weakest performance in terms of rating. In this analysis, this should
be also in lower range since the performance of handling and managing facilities of fresh
vegetables in superstores are less comparing other ways of delivery network.
Table 1: Comparative performance of delivery network for Fresh Vegetables in
Superstores
Retail storage with customer Pickup
Theoreticians’ Standards Fresh vegetables in Meena Bazar
Response Time 1 1
Product Variety 4 3
Product availability 4 3
Customer Experience 1-5 (Varies) 1-3 ( Varies)
Time to Market 4 3

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Supply Chain Management of Fresh Vegetables in Superstores
 Order Visibility 1 1
Returnability 1 4
Inventory 4 3
Transportation 1 1
Facility and handling 6 6
Information 1 1
N.B.: Here, 1 corresponds to the strongest performance and 6 the weakest performance

If we analyze the performance of delivery network, the fresh vegetable is high demand product
for any superstore. According to North American standard superstores should have suitability in
product sources, which is also true for fresh vegetables in Bangladesh. Vegetables have low
product value and low margin of selling. Similarly like theoretical standard the response wise
most of the superstores are as competitive as like other retails both traditional and freebies
hawkers. So this is highly suitable for their business. Regarding low customer effort, the standard
is -2 or very unsuitable; however for fresh vegetables in Meena Bazar it will remain less.
6.1Proposed Distribution network for Fresh Vegetables in Superstores
According to the proposed model, Superstores in Bangladesh should focus more on supplier and
partner than their own warehousing for fresh vegetables. For this they need to intervene suppliers
to ensure quality checking at supplier level and distribute vegetables directly to outlets. This will
reduce the overall transportation and handling cost. Also the vegetables from owned farms
should be directly transferred to the outlets instead of warehouse. The information system must
have linked to the warehouse and supplier level, so that distribution system can work efficiently.
In addition, while returning their vehicle empty, they must carry the wastage which can be used
in the own farm as cattle/poultry feed and bio fertilizer.

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Supply Chain Management of Fresh Vegetables in Superstores
 Figure 12: Proposed distribution network for fresh vegetable business in Superstores

They should decentralize the warehouse facilities in order to reduce the cost. Another proposal is
to spread the warehouse in different part of city i.e. Dhaka North, West, East & South. This will
be easy to focus on zonal concept of distribution for any superstore business in Dhaka city. Each
warehouse can have an adjacent outlet, so that shipment cost gets reduced and the large outskirt
outlets can also carry a large number of inventories.
A conservative forecast will reduce the wastage and eventually will increase the profit. This
might increase the risk of losing customers for unavailability of product in shelf. However,
retention can be ensured through promotion, campaign, quality customer experience, price
reduction etc.
Finally the research looked into the distribution network where the current model looks highly
dependent on centralized warehouse, which eventually increased its overall facilities,
transportation and inventory cost. Also the suppliers are now sending goods to the warehouse.
However, the propose distribution network suggested a supplier to outlet strategy to reduce the
intervention in warehouse. This will save both time and money, which can be the key factors for
fresh vegetables business to become profitable.
7.0 CONCLUSION AND RECOMMENDATIONS

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Supply Chain Management of Fresh Vegetables in Superstores
In order of perishable vegetable sector to flourish in Bangladesh, Government needs to facilitate
the required logistics and appropriate policies to ensure the growth. Unless public and private
sector comes forward, it would be extremely difficult for super chain to be efficient. The
proposed distribution model discussed here will give a competitive advantage to Meena bazar
and other superstores to increase efficiency, reducing cost and delivering products in shorter time
to consumer.
In addition, as a whole to the right ecosystem for handling fresh vegetables, our government
needs to ensure cold storage system, uninterrupted electricity connectivity so that the value chain
can work efficiently and supply in a very low cost. Government has imposed VAT on superstore
business. Here, Superstores are increasingly becoming expensive comparing its local area level
retail and rivals stores. Though fresh vegetables are VAT exempted, however the buyers mostly
buy bundled of product and hence imposing VAT strictly to superstores are making them less
competitive.
After the overall analysis and the proposed model, we can recommend that the suppliers will still
remain as a major distributor for supplying perishable and fresh vegetables. However, there
should be option for independent suppliers those can directly supply fresh vegetables directly to
the outlets without any involvement of mediator. This will reduce overhead cost, time and
dependency. In addition, it will increase the lifetime/freshness of the vegetables. The quality is
key concern for any superstores. Quality checking can be done directly at farm or outlet level.
The IT and SAP system should link with all the channels in distribution network. This includes
products shelf life, lead time and demand forecast. Accurate forecast will reduce the wastage.
There is a lack attention in wastage management of perishable items. Most of the wastage are
now been sent to the trash/ bin. There is no scope for recycling or re-usage. The proposed
network diagram model stated that some wastage would be used for own farm as a bio fertilizer
input. It can be used for cattle farming and poultry feed as well.
Altogether the research emphasized on some improvement areas in the existing supply chain of
fresh vegetable business in superstores. The further research will not only help superstores to
grow but the entire value chain of superstore business in Bangladesh will be benefitted.

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Supply Chain Management of Fresh Vegetables in Superstores