Executive summary:

Bata is a footwear brand in the country with a presence in almost 50 cities. The brand
offers arange of stylish comfortable and trendy footwear at affordable prices ensuring
that there is something for everyone in the store.
This project report examines the distribution channels of Bata Bangladesh ltd. It also
gives a detailed representation of the supply chain management of Bata Bangladesh ltd.
The project report includes the distribution channel structure of Bata Bangladesh ltd. It
also throws light on the product form and logistics of Bata Bangladesh ltd. The major key
points on which the report focuses are:
 Distribution channel structure of Bata.
 Structure of channel partners.
 Physical distribution, management
 Integrated Information flow.
 logistics provider along opportunities vs threat.
 Relationship between supply chain

The above points have been further analysed and give information on the channel
members of Bata, how is the product marketed and how is the channel managed. It
talks about the channel conflicts that occur and the pricing strategies. The report also
talks about other details of the supply chain management like the physical distribution
management which includes who irresponsible for designing and setting up the channel
and various costs involved like the logistics cost and the distribution costs and what are
the payment terms and debtors control and the management of warehouses if any.
The project report also contains the critical analysis such as the supply management, demand
management and the speed of processes for complaints regarding supplies.

Introduction:

Bata is synonymous to shoes in Bangladesh. Bata offers a huge range of Men's and Ladies
formal shoes, sports shoes, heels, loafers, sandals. In Bangladesh, Bata has started its
operation in 1962. Currently Bata is manufacturing facilities – one in Tongi and the other in
Dhamrai. With a production capacity of 160,000 pairs of shoes daily. Annual shoe sales
currently stand about 30 million pairs. The introduction of f ac tory autom ati on, long
di stance re tailing and m oder nized shoe m aking ensured the profitability of the
company from the very beginning. It is now the world’s largest manufacturer and marketer of
footwear operating across the globe.

Bata supply chain context and collaboration:

One of the major issues that were given priority was understanding the business environment.
In understanding the environment, there was a need to know who the customers were. This
helped in determining the right products for them. An open and transparent supply chain was
also created to help consumers monitor clearly and understand the ways Bata intended to
provide the goods to them.

To simplify and reorganize the design processes, Bata started to bring designers down to the
factory. These designers usually stayed in the factory for about three weeks, understanding
how the products were being made and found ways to make the products more friendly,
competitive, and faster to produce. Quite a lot was also done concerning digitalizing the
sampling process. Though there was a lot of resistance from the designing team, there have
been collaborations with partners in China, Mexico, and Bangladesh to learn these innovations.
The result of this collaboration was a big fare unit co-designed by both the manufacturing and
design teams.
Qualitative and quantitative factors in Batas’s supply chain:
Quantitative and Quantitative Supply Chain in Bata, is a broad perspective on supply chains
that, simply put, aims to make the best product, augmented with the capabilities of modern
resources. Yet, this perspective is not all-inclusive. It does not pretend to be the endgame
solution to supply chain challenges, but to be one complementary approach that can nearly
always be used to improve the situation.
Batas’s quantitative supply chain helps company to improve quality of service, to reduce cost
and boost productivity, to lower purchase prices and operating costs … and the list goes on.
Supply chain challenges vary wildly depending on different situations. Quantitative Supply Chain
embraces this diversity and strives, all while facing the resulting complexity of Bata while
competition with others company. However, for supply chain practitioners Bata is using more
classical approaches to optimize their supply chains.

Organizational structure

The analysis of the Bata Shoe Organization A’s organizational culture reveals that the company
is more closely related to the disciplined work culture with vertical hierarchy and tall structure.
It means the management withholds the decision-making authority, and directly controls the
employees’ work behaviour. The creative and innovative work behaviours are promoted by
rewarding the employees with various monetary and non-monetary rewards, but the
empowerment and autonomy is limited due to organizations’ inclination towards the strict
work discipline.
 General manager

AREA SALES

Manager operation Manager operation Manager finance

customer

However, in response to the employees’ growing need for autonomy and empowerment, the
management has decided to make a gradual shift from the centralized to decentralized
organizational structure. This shift will transfer some authority from top to the bottom, and
consequently, the organization will attain a new equilibrium between strict and fluid structure.

Logistics provider and activities:

The value chain analysis of Bata strongly borrows from Michael Porter’s perspective in that the
company strongly maintains its primary activities since its beginning. For instance, the inbound
and outbound logistics are increasingly strongly in the company, and this ensures that it
operates optimally in the current environment.

Inbound and outbound logistics:

Bata has certain inbound logistics chain for raw material movement as well as unassembled
products inside the organization. Further, the outbound systems logistics for finished products
transportation is effective and timely. The main operations, sales, marketing, and related
operations are increasingly strong and this has pushed the company to be the main sport
industry in the sector. The team of researchers responsible for new and innovative product
development and shifting market demands has been increasingly sustainable, and has assisted
Adidas to maintain its position in the market and attain competitive advantage,

Additionally, the supporting activities of Bata, which includes procurements, research, human
resource management and development as well as development of the company’s
infrastructure and is well operated to ensure strong reputation of the company, value of the
brand and status of market. Bata mainly emphasize on materials procurement and all other
activities related in the cost-effective mode, making necessary strategies of off shoring and
sourcing. For instance, Bata put more emphasis, effort and resources on product qualities which
ensure competitive advantage in shoe industry. Research and development will make the
company produce better products and meet the goals and expected customer demands and
preferences. Each year, the Bata expands and procures new and innovative techniques to
satisfy consumer needs. Similarly, Bata has expanded some of its activities of manufacturing to
other cities of Bangladesh which considered costs of labours. Number of resources for the
development skills, like equipment development, technical knowledge that transform the
output and input of the company, and infrastructure development, which includes accounting,
control, planning and information systems management.

Logistics provider rule in supply chain:

The complexity of the supply chain varies with the size of the business and the intricacy and
quantity of items manufactured, but most supply chains have elements in common, such as the
following.

 Customers: Customers start the chain of events when they decide to purchase a
product that has been offered for sale by a company. If the product must be
manufactured, the sales order will include a requirement that needs to be fulfilled
by the production facility.
  Planning: The planning department will create a production plan to produce the
products to fulfil the customer’s orders. To manufacture the products, the
company will then have to purchase the raw materials needed.
 Purchasing: The purchasing department receives a list of raw materials and
services required by the production department to complete the customers’
orders.
 Inventory: The raw materials are received from the suppliers, checked for quality
and accuracy, and moved into the warehouse.
 Production: Based on a production plan, the raw materials are moved to the
production area. These raw materials are used to manufacture the finished
products ordered by the customer and then sent to the warehouse where they
await shipping.
 Transportation: When the finished product arrives in the warehouse, the shipping
department determines the most efficient method to ship the products, so they
are delivered on or before the date specified by the customer
Missing components in Bata's logistics management:

Data from the order process, such as demand and confirmation of demand, already flow into
analysis. This information is additionally enriched with past events, i.e., historical data, from the
event. Potential delivery problems and failures can be predicted early on, and appropriate
measures set in motion to smoothly secure production.

Bata's Product flow integration:

Product Flow includes movement of goods from supplier to consumer (internal as well
as external), as well as dealing with customer service needs such as input materials or
consumables. or services like housekeeping. Product flow also involves returns. Bata is
doing amazing job here. It provides product from warehouse to factory, later
showroom. The showroom finally sells products to the final customer.

Information flow in Bata’s supply chain:

In Bata’s logistics is many information exchanges on sales and inventory amounts and forecasts,
ordering transport, confirmation and invoicing as well as various types of contracts and terms

of delivery.
Bata’s logistics can be perceived as information flow that starts with customer demand forecast
or its realization, which moves along the chain to factory, raw material suppliers, warehouse,
drivers and to other service providers and subcontractors. In addition, authorities such as
customs and tax authorities need their own information. All supply chain parties should receive
adequate information to be able to do their part in customer needs satisfaction in a timely
manner. In addition, chain includes a huge number of different contracts and foreknowledge
and confirmations and change notifications, so that the products are in required order and at
the right time in the next phase of supply chain.

Significant problems in Bata’s supply chain:

Limited market share due to competition: Bata has been subjected to high competition which

does not allow Bata to have a high market share. Bata’s market share has been reduced to 6
per cent.

Falling Sales: Bata Bangladesh’s year on year sales has been on a downturn. Although the
company’s profits have been increasing.

Low quality image: Because of the low pricing of Bata shoes, most consumers think the quality
of the shoes will be low as well. This is a typical price quality approach of positioning.

Opportunities in Bata’s supply chain:

Footwear as a Fashion statement: Footwear’s are now considered fashion statement and hence
sales are bound to increase. This creates an opportunity for Bata to enhance its revenues.

Growing Rural Market: Bata has a strong presence in the emerging nations. Rural market in the
emerging nations is growing at a high rate. Bata needs to take advantage of the demand
created in the rural market. This will help in improving its bottom-line.

Growing demand in the premium footwear category: There is a growing demand in the

premium footwear industry, especially in the emerging nations where the standard of living is
growing.

Conclusion:

From the analysis of Bata Shoe Company Bangladesh Ltd and the shoe industry we have
identified that the shoe industry is growing and identified their main weakness is insufficient
lack of development with the rapid changing market needs, insufficient promotional activities,
and downward trend of quality. On the other hand, distribution system and vertical integration
are the strengths of Bata from strategic marketing viewpoint; we see that Bata is taking
corrective stepson almost all the way. In very few sides Bata has lacking. Based upon these facts
recommended strategies would assist in more growth of Bata shoe company Bangladesh Ltd. in
among the upcoming fierce competition in the shoe industry.