Faculty of Business Administration

AMERICAN INTERNATIONAL UNIVERSITY–BANGLADESH

(AIUB)

INTERNSHIP AFFILIATION REPORT ON

Understanding the Supply Chain Management and its

Process of ACI Logistics Ltd. (Shwapno)

An Internship Report Presented to the Faculty of Business Administration in

Partial Fulfillment of the Requirements for the Degree of

Master of Business Administration (MBA)

Supervised By M.M. Obaidul Islam

Sr. Assistant Professor

Submitted By

Shuvro Shubhashis Gupta

ID# 14-97375-1

Operations Management

Date of Submission: August 6, 2015

INTERNSHIP AFFILIATION REPORT ON

Understanding the Supply Chain Management and its

Process of ACI Logistics Ltd. (Shwapno)

Letter of Endorsement

The Internship Affiliation Report entitled “Understanding the Supply Chain

Management and its process of ACI Logistics Ltd. (Shwapno)” has been

submitted to the Office of Placement & Alumni, in partial fulfillment of the

requirements for the degree of Master of Business Administration (MBA),

Major in Operations Management, Faculty of Business Administration on

June 30, 2015 By Mr.Shuvro Shubhashis Gupta, ID#14-9737-1. The report

has been accepted and may be presented to the Internship Defense

Committee for evaluation. (Any opinions, suggestions made in this report are entirely that of the author

of the report. The University does not condone nor reject any of these

opinions or suggestions).

M.M. Obaidul Islam

Internship Supervisor

APPROVAL SHEET

This Internship Affiliation Report entitled: “Understanding the Supply Chain

Management and its process of ACI Logistics Ltd. (Shwapno)” in partial

fulfillment of the requirements for the degree of Master of Business

Administration has been evaluated by a Panel of Examiners with a mark

of_______________.

_________________________

Member

Defense Panel

________________________

Chairman

Defense Panel

_____________________

Faculty Supervisor

The Internship Defense was conducted on ____________at the American

International University-Bangladesh, Dhaka, Bangladesh.

06 August, 2015

Mr. Roome Tareque Moudud

Director, Office of Placement & Alumni (OPA)

American International University-Bangladesh (AIUB)

Dhaka

Subject: Submission of Internship Report on “Understanding the Supply Chain

Management and its Process of ACI Logistics Ltd. (Shwapno)”.

Dear Sir,

With due respect I would like to inform you that I have completed my internship report on

“Understanding the Supply Chain Management and its Process of ACI Logistics Ltd.

(Shwapno)” under the supervision of Mr. M.M Obaidul Islam, Sr. Assistant Professor,

Faculty of Business Administration. This report is based on the knowledge, experience, and

the skills that I have acquired during my period of internship in ACI Logistics ltd.

I have focused uncompromisingly to achieve the objectives of the study and hope that my

effort will serve the purpose. The practical knowledge and experience gathered during report

preparation will infinitely help in my future professional life.

I requested you to accept the report and forward this for further evaluation.

Sincerely,

Shuvro Shubhashis Gupta

ID: 14-97375-1

Major: Operations Management

American International University-Bangladesh (AIUB)

APPROVAL SHEET

This Internship Affiliation Report entitled “Understanding the Supply Chain Management

and its Process of ACI Logistics Ltd. (Shwapno)” has been submitted by Shuvro

Shubhashis Gupta, Student ID 14-97375-1, major in Operations Management, in partial

fulfillment of the requirements for the degree of Master of Business Administration has

been evaluated and approved by the following Panel of Examiners.

Member Defense Panel

Chairman Defense Panel

Faculty Supervisor

…………………………………………………………………………………………………..

For Official use only

Board:

Chairman

Member

Acknowledgements

At the exceedingly beginning I would like to convey my cordial gratitude to almighty for

giving me the strength and the self-possession to terminate the assigned job within the

schedule time.

I would like to reimburse my profound respect to my supervisor M.M. Obaidul Islam, Sr.

Assistant Professor, Faculty of Business Administration, American International University-

Bangladesh, due to his generous and gracious guidance. I am also grateful to him for helping

me to understand some miniature issues as well as those issues, which I have failed to

understand during the preparation of the report.

At the same time I also pay my heartily gratitude to Mr. Tamal Paul, Manager: Supply Chain

& Inventory Control, Md. Nasirul Kabir, Senior Outlet Operation Manager, Mohammad

Arifur Rahman, Senior Executive, Supply Chain Planning, and Benedic Anthony, Executive,

Supply Chain Planning of ACI Logistics Ltd. (Shwapno), who‟s are extended their helping

hands by showing the right and effected path to me and by motivating me to implement my

theoretical knowledge in a real life corporate settings.

Finally, I give my especial thanks to, ACI Logistics Ltd, who has given me a fastidious

prospect to do internship in their organization. Furthermore I wish to thank all staffs due to

their all friendly supports to complete the report. I gratefully acknowledge those helpful

persons, without them I cannot prepare this report effectively.

My love and appreciation to my family and all of my friends who have helped and supported

me all the way, while doing the report.

Executive Summary

The supply chain activities of ACI Logistics Ltd. (Shawpno) and their constraints are

presented in this report. Further recommendations are provided.

The ultimate objective of ACI Logistics Ltd. (Shwapno) is to ensure access to a broader range

of people of Bangladesh. It has a special focus to serve the different income groups of the

customers by providing the better services that are convenient, affordable and reliable.

The report is containing a comparison between assigned tasks and academic preparation. It is

observed that almost all tools what we have learnt in supply chain management course are

well fitted with the supply chain activities of Shwapno.

In summary it is observed that Supply Chain activities of Shwapno add some value to

contribute in this company. They are looking forward to increase their employee‟s workload

efficiency, to ensure better customer satisfaction. Shwapno is trying to maintain their supply

chain process in a very accurate way. It is observed that shorter inventory also helps to reduce

the product storing cost of Shwapno.

Finally it could be said that Shwapno has already built brand equity among its customer but

the only threats of Shwapno dominance in future will come from foreign retailers trying to

encroach on the Bangladeshi market.

Table of Contents

Acknowledgement……………………………………………………………………………i

Executive Summary…………….…………………………………………………………….ii

Table of Contents……………………………………………...…………………………….iii

Chapter 1: Introduction

1.1 Rationale:………………..........................................................................................1

1.2 Objectives.………………… ……………………...................................................1

1.3 Background.………… ……………………………............................................2-4

Chapter 2: Activities Undertaken

2.1 Work-related Activities.......................................................................................5-11

2.1.1 Workload Efficiency…………………………………………………..9

2.2 Other Relevant Activities.…………….............................................................12-13

Chapter 3: Constraints/ Challenges

3.1 Identified/ Observed in the organization................................................................14

3.2 Academic Preparation.......................................................................................14-16

3.3 Missing Knowledge................................................................................................16

Chapter 4: Lessons Learned from the Internship Program

4.1 Lesson Learned from the Internship Program.………… ……………..…............17

Chapter 5: Concluding Statements

5.1 Recapitulation/Summary........................................................................................18

5.2 Suggestions addressing the challenges identified..................................................19

References...............................................................................................................................20

Appendix…………………………………...………………………...…………………….iv-v

CHAPTER 1:

INTRODUCTION

1.1 Rationale:

Theoretical knowledge is not always sufficient because there is a gap between theoretical

knowledge and practical work. This internship program has been initiated mainly to minimize

the gap. So this practical experience on various activities and functions of supply chain

management at “ACI Logistics Ltd (Shwapno)” will help me in future by increasing my

knowledge and experience.

The core inspiration to selecting this as my affiliation topic is, this will allow me to explore

my area of interests and apply my academic knowledge of MBA program side by side. Doing

internship in Shwapno is a great opportunity to have an overall idea about operations

management. Having practical experience in retail chain industry also should be proved as

helpful for any kind of job. This will help me better understand the implication of theoretical

knowledge in real life situation.

1.2 Objectives:

ACI Logistics Ltd. (Shwapno)‟s Supply Chain Process consists of a series of interdependent

steps and starts with the collection of raw materials and ends with different business unit's

inventory. The Supply Chain Management at “ACI Logistics Ltd. (Shwapno)” ensures that

appropriate quality standards are maintained at each segment. On the basis of this, the

objective of the report is:

“To pin-point about the process and steps of Supply Chain Management at ACI

Logistics Ltd. (Shwapno)”

The report will reach its objective by achieving the following sub-objectives:

To understand the supply of materials or goods and its process.

To understand the delivery & receiving process.

To understand the outlet product maintenance and selling.

To understand the customer‟s satisfaction.

To assess the workload efficiency.

1.3 Background:

ACI Logistics Limited was formed in 2008 with a vision to setup nationwide retail outlets,

named “Shwapno”, to utilize ACI‟s strong presence in Bangladesh. Advanced Chemical

Industries (ACI) Ltd, former ICI PlcUk, began its journey in 1992 with the mission of

enriching the quality of life through responsible application of knowledge, skills and

technology, and has successfully established itself as one of the biggest conglomerates in

Bangladesh. ACI began its journey to ensure better life to the Bangladeshi people with the

name of ICI (Imperial Chemical Industries) in 1968 in Bangladesh by offering a wide range

of such products as pharmaceutical, Consumer product, and so forth. However, ICI divested

into ACI (Advanced Chemical Industries) by selling its share to local management, and

named by ACI in 1992.ACI Logistics Limited was formed in 2008 with a vision to setup

nationwide retail outlets, named “Shwapno”, to utilize ACI‟s strong presence in Bangladesh

through implementation of world-class supply chain mechanism. Compare to other

organization that is involve with retail chain business, ACI Logistic Ltd. (Shwapno) is the

first position in every aspect. Shwapno has 47 outlets all over Bangladesh, and day by day the

no. of outlets is increasing. Market share of Shwapno is 35% in modern retail system. The

biggest advantage of Shwapno is that, different age and different income group is the target

people of Shwapno that is main uniqueness as Shwapno.

Vision

Shwapno was launched with a vision to change the lifestyle of Bangladeshi consumers.

Values

“To deliver success we have a clear set of values & beliefs.”

Impeccable integrity - We are honest, transparent and ethical in all our dealings.

Passion to win - We deliver what we promise by bringing the best in all of us

Delightful experience -We win the hearts and minds of our employees and consumers by

offering relevant quality, value and service.

Living an enterprise culture - We believe in trust, truth and teamwork

Making a better world - We compassionately contribute to the community we live in

Continuous improvement - We constantly learn and innovate to create new paradigm

Count every paisa - We treat every taka spent as our own for creating value for our

consumers

The organizational structure of Shwapno‟s head office and outlets are different.

The organizational structure of ACI Logistics Ltd. (Shwapno)‟s Head Office is shown in the

following figure (1.1):

Fig 1.1: The organizational structure of ACI Logistics Ltd. (Shwapno)‟s Head Office.

The organizational structure of ACI Logistics Ltd. (Shwapno)‟s outlet is shown in the

following figure (1.2):

Executive Director

Head of Supply Chain (Planning & Buying)

Head of Supply Chain (Category & NFD)

Cheif of Operation

Manager

(Supply Chain, finance, HR, Marketing)

Asst. Manager

(Supply Chain, finance, HR, Marketing)

Senior Executive

(Supply Chain, finance, HR, Marketing)

Executive

(Supply Chain, finance, HR, Marketing)

Fig 1.2: The organizational structure of ACI Logistics Ltd. (Shwapno)‟s outlet.

Outlet Operation Manager

(OOM)

Inventory & Cash Management

Officer (ICMO)

Assistant Operation Manager

(AOM)

Executives

VFMG, CG, NFD

Service Assistant

&

Butcher

Porter

Security

Back Store Manager

(BSM)

Loader

POS (Point of Sale)

Agent

CHAPTER 2:

ACTIVITIES UNDERTAKEN

2.1 Activities Undertaken (Work-Related)

A supply chain is a system containing organizations, people, technology, activities,

information and resources involved in moving a product or service from supplier to customer.

Supply chain activities transform resources, raw materials and components into a finished

product which is delivered to the end customer. As a large company with retail chain

operations, Shwapno needs an effective and efficient supply of products. To ensure free flow

of supply and demand to achieve the optimal point of customer satisfaction, supply chain

management department of Shwapno trying their best to maintain proper supply of product to

different outlets. The activities of the supply chain management department are divided into

three parts, such as:

A. Head office

B. Distribution Centre

C. Outlets

Operations of Head Office: Supply Chain Management Unit of Head Office, generally

purchase the products of different categories from the local market and suppliers. Here is the

list of some local items for purchasing:

1. Baby Food 7. Home Care

2. Baby Care 8.Home made

3. Beverage 9.Commodities

4. Dairy Item 10.Perishables

5. Kitchen Items 11.protien Items

6. Packaged Food 12.NFD (Non Food goods)

Supply Chain Planning Team gives the purchase requisition (PR) to supply chain buying

team. After receiving the purchase requisition (PR), supply chain buying team converting the

purchase requisition (PR) into purchase order (PO). Then the buying team deal with different

vendors with different categories of products. They deal & fixed their profit margin. Then

they buy their product and store it to their own distribution center. These steps are shown in

the following figure (Fig. 2.1):

Fig 2.1: Head Office Tasks

Whereas Shwapno deals with different category of products, they don‟t store protein &

perishable items in their distribution center. They directly delivered this type of product into

their outlet from local market & suppliers end.

This is the first phase of supply chain management unit in head office. After storing product

in distribution center supply chain planning team again distribute these into their all outlets

depends on their demands. Supply Chain Planning team calculate every outlets average sells,

outlet demands, special demand, categorized first moving & slow moving items, then they

allocate it for outlets. They called it STO (Stock Transfer Order). All these activities are done

by SAP software.

Operations of Distribution Center: Distribution center are the foundation of a supply chain

network, as they allow a single location to stock a vast number of products. It‟s used for

product receipt, temporary storage, and redistribution of goods according to the STO (Stock

Transfer Order). Shwapno‟s distribution center is customer focused, relationship-centric and

technology-driven. They follow a total supply chain process in their work. They divide their

work into three parts. These are as follows:

Product Receiving

Product Storing

Product Delivery

Product Receiving: According to purchase order (PO) distribution center receives products

from the suppliers. A manual database is maintained to collect the relevant information of the

Step 1 • Purchase Requisition (PR) by Planning Team

Step 2 • Purchase Order (PO) by Buying Team

Step 3 • Buying Team deals with vendors with diffenrent products

Step 4 • Fixed their profit margin

Step 5 • Buy the produc & store it to Distribution Center (DC)

products. This includes serial number, product type and receiving time. The product‟s

detail‟s, product‟s quality, shelf life (expiry date) are also need to be checked. However, if

any product does not match with the purchase order (PO) quantity then the product is

rejected. In Addition the barcode is attached with individual product. This barcode helps to

detect the product & further process with its unique code. Finally receiving product GRN

(Good Receipt Note) need to be made into SAP and provide copy to the vendor. These steps

are shown in the following figure (Fig. 2.2):

Fig 2.2: Product receiving for Distribution Center

Product Storing: After receiving product, distribution center store the product until they get

the further instructions to deliver it to outlets. At first they categorized product then they store

it to different gondola. Gondola is a freestanding shelf used by retailers to display product.

However if any product get damaged or expired then distribution center return it to vendor.

They called it Return to Vendor (RTV).

Product Delivery: Product delivery initiation starts from both head office & outlets. At first

outlets give the product requisition according to their sales to head office planning team.

Then head office planning team calculate individual outlet‟s previous sales with product

forecasting formula, EOQ (economic order quantity), MOQ (minimum order quantity) &

Zero stock calculation. After all calculation, they compile it and make individual STO (Stock

Transfer Order) for individual outlet and sent it to Distribution Center (DC). The compilation

is done by using the SAP Software. After compilation product picking is done according to

STO. Product picking follow FIFO (First in First Out) rule. These steps are shown in the

following figure (Fig. 2.3):

Step 1

• After arrival the products

from the distribution

center need to check the product's quality,

quantity and shelf life

Step 2

• If fullfilled the

requirements, then receive the product

Step 3

• Cross check with Purchase Order (PO),

products need to be received

and paste Barcode

Step 4

• After receiving

product GRN need to be made into SAP and provide a

copy to the vendor

Fig 2.3: Product Delivery to Outlets from Distribution Center (DC)

Operations of Outlet: Outlet‟s activity can be dividing into three parts.

Outlet opening

Outlet running

Outlet Closing

Outlet Opening: Outlet‟s activity start‟s from outlet opening. At first product is being

received. After product receiving, the products need to be updated in delivery note wise

“material in register”. Products also need to be cross checked with STO & Delivery Note.

The products need to be stored in back store. When receiving is complete then GRN (Good

Receive Note) is needed to be made in SAP software. Also need to do TPN (Transfer Posting

Note) for extra and less quantity, Post GRN in SAP & EPS Mirror software. When all these

activities are complete then products are need to be refill and replenish. Fish and meat items

need to be processed and decorate. Formalin and freshness check list need to be updated also.

When all these procedures are done then outlet is open to serve the customer and daily

transaction. These steps are shown in the following figure (Fig. 2.4):

Ste

p 1

Outlets give

Products requisition to Head office

Planning Team

Ste

p 2

Head Office Planning Team

make STO (Stock Transfer

Order)

Ste

p 3

Took the product according to

STO Ste

p 4

products delivered to the

outlet

Fig 2.4: Outlet Opening Operation

Before closing the operation of the outlet PO, STO need to be generated through SAP and

send to the Head Office (HO) and also Closing Report, PNL Report, DSAR Report,

Consumable Status Report need to be mailed in Head Office (HO).

2.1.1 Workload Efficiency: During the internship program, it is observed that workload

efficiency of shwapno is varying from different designated employee to employee. It related

with designated employees weekly working hour and duty time. Workload efficiency gives

the ideas about number of employees are right or not. In some places numbers of employees

are more than required. As a result, I try to assess the workload efficiency. This is given in

the table (table 2.1) and presented in the following graph (Fig. 2.5) for further references.

Step 5

Outlet open for daily transactions.

Step 4

Product refill and replish in front store gondola.

Step 3

Meat & Fish need to processed and decorate it.

Step 2

Receive Products.

Step 1

Outlet Open for operation.

Serial Designation

Total

Man

Hour

Weekly

Duty time/

Designation

(in Hour)

Total

HR

Total

Time

Available

(in Hour)

Total

Workload

Efficiency

1 OOM/AOM 65.73 72 2 144 46%

2 ICMO 30.93 72 1 72 43%

3 BSM 82.72 96 2 192 43%

4 VFMG Executive 58.38 72 1 72 81%

5 CG Executive 54.00 72 1 72 75%

6 NFD Executive 4.84 72 1 72 7%

7

VFMG Service

Assistant 488.97 96 6 576 85%

8 CG Service Assistant 288.73 96 4 384 75%

9

NFD Service

Assistant 103.29 72 2 144 72%

10 POS Agent 231.33 78 4 312 74%

11 Butcher 282.79 96 7 672 42%

12 Cleaner 256.25 72 6 432 59%

13 Security 164.68 96 4 384 43%

14 Porter 104.56 72 2 144 73%

15

Loader/Back store

SA 102.91 72 2 144 71%

Table 2.1: Calculation of workload Efficeiency

Fig 2.5: Total Workload Efficiency

In summary it is observed that workload of Shwapno is very high for every employee. Most

of the employees are busy with various types of operations. It‟s a recommendation that job

rotation or job simplification can help higher workload efficient employee to work faster and

job addition will be applied for those workload efficient are not up to the mark. To ensure

customer satisfaction Shwapno need to build up an efficient workload for every employee. It

helps Shwapno to run their supply chain process in a much unimpeded way.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

46% 43% 43%

81% 75%

7%

85%

75% 72% 74%

42%

59%

43%

73% 71%

Total Workload Efficeiency

2.2 Activities Undertaken (Other Relevant Activities)

For Perishables & Protein Items buying & distribution procedure or steps are different.

Buying procedure also done by Head Office Supply Chain Buying Team. Buying Teams are

mainly buy three types of products. They are:

Fruit, Fish & Vegetable

Meat

Fruit, Fish & Vegetable: Fruit & vegetable items are buying from local market (e.g. Karwan

Bazar). Buying team get the product demand list from all outlets and then they make a central

demand list and then everyday night around 12 A.M. whole buying team going to choose and

buying the product. At first they divide into several groups and then choose product,

negotiation with suppliers for pricing, if okay then quality team check products quality (e.g.:

freshness, damage, spot, color, size & abnormality). Those are not meeting the requirements

they reject them. These processes also called product sorting. After sorting product they give

the money to sellers. Then they weight the product and handover it to distribution team.

Distribution team again divides the products for delivering the respective outlet. These steps

are shown in the following figure (Fig. 2.6):

Fig. 2.6: Buying Procedure (Fruit, Fish & Vegetable)

Meat: For buying meat they follow totally different process. They have different suppliers for

beef, chicken & mutton. Form the outlet demand list buying team makes a central demand

Make central demand list on outlet's product

demand

Step 1 Buying team choose the product,

negotiation with supplers if okay then

Quality Assurance

Team check the product

quality & sort the product

Step 2

After sorting, buying team

buy the product then

re-arrenage for delivering the

respective outlet

Step 3

list, and then send it to suppliers. Suppliers sent the products “Slaughtering point”, quality

supervisor also check the product if okay then they give the permission to process the

product. After processing, they ensuring quality (fat trimming) & handover it to distribution

team, they organize the product outlet wise and then sent it to outlet. Buying team makes

payment requisition form, GRN and invoice against the product. These steps are shown in the

following figure (Fig. 2.7):

Fig. 2.7: Buying Procedure (Meat)

Step 1

• Make central demand list on outlet's STO & Handover it to Suppliers

Step 2

• Supplier choose the product and bring it to slaughtering point

Step 3

• Buying team choose the product, negotiation with supplers if okay then took the product

Step 4

• After checking they process the product and ensuring quality(fat tirmming) & handover it to distribution team they organize thw product according to STO & sent it to

outlet

CHAPTER 3:

CONTRAINTS/CHALLENGES

3.1 Identified/Observed in the Organization

Though the supply chain management of Shwapno is very much smooth but they also have

some constraints. These are explained below -

There are internal communication gaps among different departments. This hampers

the workflow. Also creates delay in the product movement.

Flow of work or work process is not properly integrated because of improper time

management. This impact on customer‟s satisfaction level.

Product demand and forecasting values estimate are not accurate sometimes.

Sometimes it lies between 2% - 3% as a result there is a variance between demand

and supply of products.

Sometimes vendors are not able to deliver required amount of products so that

customers are not getting availability of products and they move to other shop.

Loading and unloading of products takes time which may sometimes create clash in

schedule delivery.

Shwapno add VAT (value added tax) to their company goods products but some

customers are not willing to pay the amount so they are not comfortable to shoping

from Shwapno.

The implementation and complication of decision is very lengthy. If a decision is

made, then for the approval it has to sign by decision maker of all departments which

is a very time consuming. For this reason smooth product movement is hampered.

3.2 Academic Preparation

In my education life or student life I have acquired many skills, knowledge, experiences

which have given me ideas about the theoretical knowledge in different subjects. However

there are some similarities and dissimilarities between theoretical and practical knowledge.

These similarities/dissimilarities are explained below:

In our academic courses we know that there is some external information flowing to

purchasing. These are product information, new product information, transportation

availability, transportation rates, price and discounts, sales and use taxes, labor

condition, supplier production rates, supplier‟s capacity, source of supply, general

market condition. All of these steps are followed by shwapno to buy a product.

One of the important logistical objectives is to seek continuous quality improvement.

Total Quality Management (TQM) has become a major commitment throughout all

facets of industry. Logistics itself must perform to demanding quality standards. The

management challenge of archiving zero defect logistical performance is magnified

by the face that logistical performance is magnified by the fact that logistical

operations typically must be performed across a vast geographical area at all times of

the day and night. Logistics is a prime part of developing and maintaining continuous

TQM improvement. ACI Logistics Ltd. (Shwapno) tries to follow TQM and I found

TQM tools are well fitted with activities of Shwapno. More specifically Shwapno‟s

main purpose is to deliver zero defects products to its customer that‟s why Shwapno

try to maintain quality in their whole supply chain process.

The knowledge from the project management was helpful to coordinate different

activities of supply chain planning department of Shwapno. When they start a new

project they do project charter, project scope, and status report.

From Decisions Model course I have learnt the knowledge how to take an effective

decision for ACI Logistics Ltd. (Shwapno) and it also helped me to understand how

Shwapno provide quality customer service.

For planning to distribute the products they follow Material Resource Planning

(MRP) and calculating lead-time. These two things I learnt in supply chain

management course.

The knowledge from operations management (OM) was helpful to understand

bullwhip effect, inventory, transportation and sourcing. Shwapno have the bullwhip

effect in the product estimations. Sometimes it have been seen that product surplus

have been made for this bullwhip effect. For transportation, inventory and sorucing

shwapno doing exactly what we learned in the OM course.

In my academic preparation I have learned a lot about Forecasting and Forecasting

Technique, Capacity Planning, EOQ, MOQ, Inventory Control, etc. I found all of

those using by ACI Logistics Ltd. (Shwapno). For product delivery Shwapno follow

these tools seriously.

Proper documentation that I learned from my internship is one of the most important

parts of a job which was not included in the academic curriculum.

Sometime it was difficult to identify the code words which were used by the

employees but from time to time I have learned all the words that are generally used

in supply chain management department. It was not part of our curriculum.

3.3 Missing Knowledge

ACI Logistics Ltd. (Shwapno) is using SAP software for all operational activities. It is

not included in our course curriculum. SAP is very useful software for operations of

any retail industries so if it‟s to be learned or included in our curriculum then it helps

us to be a future professional.

In our class we are not used to with MS Excel, but in the organizations it is very

essential for doing all basic office works.

CHAPTER 4:

LESSONS LEARNED FROM

INTERNSHIP PROGRAM

4.1 Lessons learned from the Internship Program

Develop Skills: ACI Logistics Ltd. (Shwapno) using SAP software for all types of working

activities. It‟s totally new for me. I have learnt so many features and usages of SAP. Also

learnt about MS excel to make pivot chart, pivot table, lookups, short techniques to put ups

different equations, easiest way for doing forecasting calculation.

Performance Orientation: Shwapno has taught me the benefit of powerful and efficient

performance and how it has an impact in our life. Performance-drive can lead a person from

zero to the peak of his/her career. True dedication towards work and positive mindset

regarding achieving the given task can help an employee to reach the success. Shwapno try to

ensure the performance in every sector of their supply chain. It is only possible because of the

handwork and true dedication of every employee.

Corporate Culture: „Shwapno‟ have taught me how to interact with assorted genres of

people and how to make a good relationship with them. „Shwapno‟ is the place where

employees are not colleagues of each other; rather they are a part of a big family. All member

of „Shwapno‟ family take a good care of each other. The Corporate Culture of „Shwapno‟ is

friendly, flexible, spontaneous and worthy of adopting in our daily life. It helps me a lot when

I involved in a permanent job.

Team Bonding: This internship program helps me to understand how to develop the strong

relationship with other collogues and different departments.

CHAPTER 5:

CONCLUDING STATEMENTS

5.1 Recapitulation /Summary

The main objective of this study is to understanding the supply chain processof an retail

industry with particular reference to Shwapno. This internship program helps me to

understand the real life work environment with retail industry.

As a large industry with retail chain operations, Shwapno needs an effective and efficient

supply of products. To ensure free flow of supply and demand to achieve the optimal point of

customer satisfaction, supply chain management departments are trying their best to maintain

proper supply of product to different outlets. Head office maintains proper documentation

and create purchase order, purchase requisition, stock transfer order. Distribution center order

the product according with stock keeping unit of purchase order then redistribute it to

different outlets.

The organizational structure of Shwapno is conventional. One of the advantages Shwapno

has over its competitors is the procurement department which is responsible for directly

sourcing vegetables, meat, fruit and grains directly from wholesale markets. Other

participants in the market rely on vendors for fresh produce requirements, which make

quality control extremely difficult.

Though the supply chain management of Shwapno is very much smooth but they also have

some constraints. They have lack of work process for improper time skill management,

varience between supply and demand of products. On the other hand, I found their supply

chain management is more consistent with my academic preparation which helps me to

understand Shwapno‟s activity.

If Shwapno is able to overcome their constraints which are mentioned in this report with

recommendations, there is no doubt that within a short period time, the company will have

insurmountable advantages in the market. The only threats to „Shwapno‟ dominance in the

future will come from foreign retailers trying to encroach on the Bangladeshi market.

5.2 Suggestions addressing the challenges identified

Need to emphasis on the economic order quantity (EOQ) model because it was seen

to be in the best interest of logistics companies to maintain an optimal level of

products in outlets, the level that minimizes total cost in inventory and avoid damage.

Flow of work can be improved by following proper time management. This will help

to increase the customer satisfaction level.

Trying to reduce the impact of bullwhip effect, so that the accuracy of product

forecasting and demand can be increased more.

Loading and unloading time can be decrease by involving more employees or using

better techniques. This will help to ensure the scheduled delivery.

The communication gap between different departments of ACI Logistics Ltd.

(Shwapno) should be removed and should establish a strong immediate response

system. This will help Shwapno to perform better.

It is very important to taking decision within very shortest possible of time. It helps to

increase the product movement rate. On this regard they can implement online DSS.

Some outlet‟s lower level employee is not so productive with their assigned work.

Training and some motivational program might improve their productivity.

The customized calculation techniques of Excel need to be modified into proper

statistical forecasting tools to minimize the overall variance of demand and supply.

REFERENCES

6 References

1. Besterfield, D. 1995. Total Quality Management. N.J.: Prentice Hall, Englewood

Cliffs.

2. Bloomberg, D., LeMay, S., & Hanna, J. 2002. Logistics. N.J.: Prentice Hall, Upper

Saddle River.

3. Bowersox, D. 1974. Logistical Management. Macmillan, New York.

4. Bowersox, D., Closs, D., & Cooper, M. 2002. Supply Chain Logistics Management.

McGraw-Hill, Boston, Mass.

5. Chopra, S., & Meindl, P. 2014. Supply Chain Management. Qinghua da xue chu ban

she,

Beijing.

6. DeLurgio, S. 1998. Forecasting Principles and Applications. Irwin/McGraw-

Hill,Boston

7. Gaither, N., & Frazier, G. 2002. Operations Management. South-Western/Thomson

Learning, Australia.

8. Goetsch, D., & Davis, S. 1994. Introduction to Total Quality. Merrill, New York.

9. Krajewski, L., Ritzman, L., & Malhotra, M. 2010. Operations management. Prentice

Hall, Upper Saddle River, N.J.

10. Meredith, J., & Mantel, S. 1995. Project Management. Wiley, New York.

11. Stevenson, W. 2005. Operations Management. McGraw-Hill, Boston.

12. Suganthi, L., & Samuel, A. 2006. Total Quality Management. Prentice-Hall of India,

New Delhi.