Divergent Supply Chain Strategies of SME Cluster

Ans. the question no- 1

In Bangladesh, SMEs establish the bloodline of the country’s national economy. As they
Play a crucial role in employment generation, poverty alleviation, and promotion of economic
growth. Therefore, SMEs are changing the face of the country’s economy significantly.
As companies move from a functional excellence focus toward integration, collaboration, and
synchronization, the supply chain becomes more dynamic and capable of achieving fundamental
organizational goals. That is, as its supply chain capabilities mature, the organization can achieve
efficient fulfillment, meet customer requirements, and respond more effectively to change,
become more resilient to disruptions, and improve financial performance.

We are discus today case mainly two SME clusters which are Munshigonj RMG cluster and
Faridpur Agro base Cluster. Supply chain strategy is diversify sector to sector .Our case study
show that Munshigonj RMG SME sector are maintain unique supply chain strategy which sector
work about 50000 worker and whole seller. Manufacture is collect sample in the market and they
copy product order collect from buyer. Munshigonj sector follow pull strategy. Faridpur agro
base sector is different from Munshigonj. Fadirpur agro base follow push strategy. Faridpur agro
base SME sector of pulse is follow traditional supply chain which contain a lot of parties
involves. The parties are farmer, faria, manufacturer, mohajon, retailer and customers who are
inter related. Pulse supply chain demand is uncertain. They strongly follow push strategy.
Ans. To the question no- 2 RMG in Munshiganj
Customers

Customer Demand
Retailers Pull strategy
Customer Order Cycle

Foreign product
Distributors
Replenishment cycle

Collect Sample
Manufactures
Manufacture cycle

Production plan
Suppliers
Procurement cycle

Collect raw material

Munshigonj Case follows four cycle view and five step of supply chain.

 Customer order cycle

 Replenishment cycle
 Manufacturing cycle
 Procurement cycle
Faridpur Agro base pulse industries of SME sector supply chain cycle and strategy

Customers
Customer buy

Customer Order Cycle Pull strategy

Retailers
Retailer’s sales

Replenishment cycle Push strategy

Distributors
Mohajan of Pulse

Manufacture cycle
Manufacturers
Sorting pulse

Procurment cycle
Suppliers Collection pulse

Cycle view of supply chain in Faridpur

 Customer order cycle

 Replenishment cycle
 Manufacturing cycle
 Procurement cycle
Ans. the question no -3 Faridpur Agro base of SME

Customers
Customer buy

Customer Order Cycle Pull strategy

Retailers
Retailer’s sales

Push strategy
Replenishment cycle
Distributors
Mohajan of Pulse

Manufacture cycle
Manufacturers
Sorting pulse

Procurment cycle
Suppliers Collection pulse

Faridpur agro base pulse industries follow multiple chain of supply chain. We have passed
number of years our life in village. We know that farmer selling their product in the village
market or Faria buy farmer product in the crop collection field. Then faria send their buying
product arot or Mohajan. Mohajan is Sporting or segmenting their product according to quality
and price. Mohajan contract mills owner for selling product. Then mills are producing and
packaging product according customer demand and size. Mill is selling product whole sellers.
Whole seller is sales retailers. Retailer is sales to customer. So we called faridpur pulse
industries follow Traditional supply chain and push strategy. But we see that Faridpur pulse
somewhat follow pull strategy when customer demand is superior pulse and whole sellers fulfill
their demand.

Munshigonj RMG of SME sector

 Customers
Customer Demand
Pull strategy
Customer Order Cycle
Retailers
Foreign product

Replenishment cycle

Distributors Collect Sample

Manufacture cycle
Manufacturers Production plan

Procurements cycle
Collect raw material
Suppliers

We see that five step of supply chain follow four supply chain cycle view. Manufacturer first
collect new sample from retail brand shop which product are demandable among customers.
Then they communicate with distributor or Whole seller in keranigonj who are buyer of copy
product. The product price is cheap and reasonable. Whole sellers give order manufacturers.
Then manufacturer contract their supplier for raw material of specific design product. So we are
called above pull strategy.
4. Munshigonj RMG Sector SWOT analysis

Opportunities
Strength

1. Labor cost is low 1. Market size is large

2. Manpower are available 2. Market can be extended
3. Government SME loan get easily 3. Research and develop new style and
4. Demand base production design garments
5. No inventory in stock 4. Online marketing
6. No middle man commission 5. Production run all time base on
7. Control by owner segmenting and targeting new market
8. Easily exist from business 6. Use digital technology
7. Automatic production machine

Threat
Weakness

1. Only season base production
2. Obsolete machineries use
3. Capital storage
4. Do not follow government rules and
policies.
5. No Marketing and promotion
6. No forecasting for future market
demand
1. Foreign product which import tax free
2. Raw material supply depend on import
3. Broker commission
4. They have no own design and style
5. They have no expertise who works
their industries all time.
6. Automatic machine production cost is
very low.
 Faridpur Pulse industries SWOT analysis

Opportunities
Strength
1. Growing demand
1. Fertile land and Popularity for high-quality 2. Cultivate more land for pulse
pulse. 1. Branding pulse product
2. Uninterrupted utility supply. 2. Important byproducts for cattle feed
3. Cheap labor force. industry
4. Expert farmer with Indigenous knowledge. 3. Use digital technology and
agricultural method.
4. Online market place.
5. Export opportunity.

Weakness Threat

1. Material use cost is high

1. inadequate and improper marketing and
promotional activities
2. ICT based modern promotional channel.
3. Poor negotiating position due to Push
Strategy.
4. Unskilled workers.
5. Lack of linkage with research Centre :
breeding and agronomic research.
2. Hybrid variant are sold at low price.
3. Some company aggressively control
pulse market.
4. Lack of Government/NGO support &
initiatives.
5. Land Degradation.
6. Middleman snatch major profit.
7. High Bank Interest rate.