Assignment On: Supply Chain Management System of Runner

Automobiles Ltd.

Course name: Supply Chain Management

Course code- BBA 411

Submitted To:

Mr. Md. Hafez

Assistant professor
School of Business
Ahsanullah University of Science & Technology

Submitted By:

Atkia Iffat Shyama

ID no: 170102050

Section: B

Date of submission:
18/04/2021
1. Introduction:
In today’s competitive world of Business competitive advantage can be gain by proper
information system and developing that information system. Runner Group information system
is a sign of the modern business organization of Bangladesh. Supply chain activities is the
streamlining of a business' supply-side activities to maximize customer value and to gain a
competitive advantage in the marketplace. Supply chain management (SCM) represents an
effort by suppliers to develop and implement supply chains that are as efficient and economical
as possible. Supply chains cover everything from production, to product development, to the
information systems needed to direct these undertakings.

2. Background of RUNNER AUTOMOBILES:

Runner Group emanated from Eicher Motors Ltd. of India appointed RML as an Exclusive
Distributor for famous Eicher brand (LCV and MCV) trucks and pickups in Bangladesh. In
October 2004 when Volvo decided to manufactured Eicher trucks with joint venture named
Volvo Eicher Commercial Vehicles LTD. It broadened its arms to include other businesses and
affiliates operating within are the automobiles, real estate, agro-business, bricks and
information technology and were finding it extremely difficult to survive in the newly formed
country. Ever since then runner group has been helping to establish market linkages for country
people, revive crafts and interpret them for the contemporary marketplace.

3. Current Status of Runner Automobiles

Today, Runner group reach has spread from where it started, Dhaka, to the rest of the
country. From a single shop, Runner group has grown into one of Bangladesh's biggest
motors experience through 5 major-
Metropolitan areas of the country - in Dhaka, Mymensingh, Chittagong and Sylhet and in
India also runner automobile showcases over 4 product categories automobiles, properties,
motors, and bricks.

4.1. Runner Automobile’s Mission:

• Their Mission is to establish our brand image by meeting customer requirements
through environment-friendly technology and taking care of the return on investment
of stakeholders.
• They will materialize our vision with effective and efficient human resources using a
lean manufacturing process with high productivity.
• They will exceed customer perceived value to make this world a better living.

4.2. Runner Automobile’s Vision:

They will establish RUNNER as a trusted brand through satisfying customers’ needs offering
desired products & services at an affordable price.

4.3. Runner Automobile’s Objectives:

To build a strong product range across categories, explore expansion opportunity globally,
continuously improve its operational effectiveness, aggressively expand its access to
customers and continue to invest in brand building activities.

4.4. Runner Automobile’s Goal:

Runner Automobiles Ltd. wanted to give a total transportation solution to all level of earning
people. They believe their enhanced capabilities will propel Runner towards its business goals
faster than expected.

5. Products of Runner Automobiles:

Runner Motorcycles manufactures 15 models that include scooters by using both domestic and
imported components. As a result of local manufacturing, Runner could bring down the prices
of its bike to as low as 60,000 BDT. Currently, it makes motorcycles between 80CC to 165CC
engine capacity for local markets and exporting 200CC engine capacity products abroad.
Other products:
 • Face Protective Mask- Runner
• Dust Cover- Black
• MG Winter Jacket- Black
• Regular Backpack
• MG Winter Jacket- Blue
• MG Windbreaker
Services:
• Lowest Rate on EMI. Enjoy Easy EMI only at 1% up to 24 Months
• 6 Years Warranty. At 200+ Service Centre
• Life Insurance. 1 lakh Taka Life insurance
• Free Driving Training Centre. Get free training riding training from experts
• 9 Free Service
• Special Safety Technology

6. Runner Group’s Supply Chain Management Flow:

Supply chain flows from
customers to Employee or
from employees to
operating personnel in the
information system. Then
information goes to thefloor
manager. Floor manager
shows it to the consultants
of Runner Group.
Consultant shows it to the
top-level management of
Runner Group. Top level
orders its suppliers to
modify, improve or create
product to meet the
customer demand.
7. Management of six supply chain drivers of runner automobiles Limited
The major drivers of supply chain performance consist of three logistic drivers and
three cross-functional drivers.
Facilities: Facility is the place where the product is stored and assemble and fabricated.
Two types of facilities. Storage site and production site. Runner follows production site.
Inventory: inventory means all raw materials, work in process, and finished goods
within a supply chain. Runner automobiles are collected raw material from abroad and
assembly those items by the workers to finished line final products. They take the
inventory decision of Level of Product availability because the function of demand that
is served on time of product held in inventory.
Transportation: Transportation entails moving inventory from point to point in the
supply chain. Transportation can take the form of many combinations of modes and
routes, each with its own performance characteristics. Runner automobiles moving
inventory from point to point their own truck.
Information: They are collected information from varies sources, Push pull view are
using for taking information decision. As we know this company push their business
by using advertising as a model of selecting Shakib Al Hassan that increase their brand
value. In this competitive market runner automobiles are competing the other
international company from their market and achieve goodwill. They collecting
information by internet and researching on this information so that they can compete
the other company in their market.
Sourcing: Sourcing is the set of business processes required to purchase goods and
service and also decide which tasks will be outsourced and those that will be performed
within the firm.
Pricing: the runner automobiles are using the decision by every low pricing versus high
low pricing because different pricing strategies are led to different demand. Runner
automobiles are producing 2 types of product one from their country and one for abroad
because our country road permit speed limit is 150-165cc so that they are producing
200-250cc motor cycle for foreign country. So the pricing are different from one to
another.
8. Decision framework of supply chain management system of Runner
Automobiles Limited:

▪ Facility: Facility is the place where the product is stored and assemble and fabricated.
For facility Runner follows production site that’s why it is efficiency.
▪ Inventory: In inventory section, they have low variety of product that’s why inventory
efficiency.
▪ Transportation: They deliver their product to the customers their won truck. Their
delivery service is so fast. So, it is responsive.
▪ Information: They lot of invest in information. They collect information directly to the
customer and distributor also. That’s the reason it is responsive.
▪ Sourcing: For basic products Runner Automobiles for efficiency because demand is
predictable. These products from suppliers in low-cost countries.
▪ Pricing: It is efficiency because Runner Automobiles provides low-cost product to the
customers.
They use the four sectors for efficient strategy and just two are use responsive strategy. In this
case, competitive strategy is efficiency.
9. Competitive Position of runner automobile:
Back in 2000, Runner Automobiles Limited, the pioneer of "Motorcycle Manufacturer and
Exporter" initiated its journey in Bangladesh. For 20 years, Runner Motorcycles has been
continuously expanding its business all over the country, leading in the sub 100CC segment
and the first company to export motorcycles in abroad successfully. Carrying the badge "Made
in Bangladesh”, they are ready to thrive in the two-wheeler international market.
The motorcycle industry has been growing fast in Bangladesh. Especially in the last couple of
years, because of the exemplary government policy support and the citizens' growing and stable
financial solvency. FY'21 projected industry is 486,937 which is a 5% growth of FY'20. It
means that the amount of daily purchase of the motorcycles is around 1,500. "Runner
Motorcycles" is the heart of mobility in Bangladesh, notably in the entry-level segment,
empowering the mass people to move faster in an efficient manner. Most importantly, giving
them the most affordable retail financing so that they can afford a motorcycle without a hitch.
Apart from manufacturing its brand, the company is concurrently manufacturing American
brand UM and also the proud distributor of Italian flagship two-wheeler brands- Vespa and
Aprilia. Furthermore, the company introduced another premium motorcycle brand KTM (an
Austrian flagship), for giving the premium mobility experience to Bangladeshi customers.

10. Recommendations
Recommending a big company like RUNNER is not an easier for me. Obligations, laws,
politics, political situations, finance, economy, customers all are the parts and organs of this
company and the brand’s position. Despite all the facts, Runner is
the leader in Bellow 100CC category but not in above 100CC category. What they did for
bellow 100CC is not working for above 100CC. However, Runner needs to
concentrate in few new of the areas. These are
➢ Focus more on creating overall brand value.
➢ Focus it more on Bangladeshi Brand.
➢ Not introducing variant in the market frequently.
➢ Look for efficient workers for creating brand value.
➢ Focus on innovation and renovation for targeting new market.
➢ Do efficient feasibility test for each and every campaign
➢ Monitor local competitors’ strategies since the competitors are gaining market share
day by day.
➢ Focus on ‘above 100CC’ segment, to create market.
➢ Focus on creating USPs for each model. Not one for all models under the brand.
➢ Make a complete strategy for the Brand.
11. Conclusion:
▪ Runner Automobiles already started manufacturing and have a good infrastructure
for manufacturing motorcycles, they should try to understand the test of the
customers and make a perfect motorcycle for Bangladeshi people.
▪ Creating a difference would make them more attractive than their competitors and
will bring market share.
▪ A significant portion of their earnings are invested towards improving the socio-
economic standards of disadvantaged artisans and underprivileged rural women of
various communities.
▪ Runner Group organizational vision will be exceeding customer perceived value to
make this world a better living and this empowerment will change the overall
scenario of economic condition.

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