East Delta University

MBA Program : Summer 2021

Course Title: Supply Chain Management
Course Code: MBA- SCM- 659.1

Continuous Assessment ( CA) -01 :

Group Assessment   for – -MBA- Fall- 2021

Submitted by :

Group Name : F

Student(s) Name & ID :

Taqi osman chowdhury ---193003006

Mijanur Rahman ---213002406
Hossain Mohammed Raihan ---213000506
Shekh Sabbir Ahmed----213001706
Subject: Understanding the Supply Chain
Date of Submission: 12/10/2021

Submitted to :

Syed M. Tugril Esteyak

Adjunct Faculty, School of Business Administration
East Delta University
&
Group Assistant General Manager ( Supply Chain)
Clifton Group
Bangladesh

Student Sign: Faculty Sign:

1Q.A--Are Supply Chain Supply Chain Management , Supply Management
Same ?
Explain according to your own Understanding ..

ANSWER:
Yes. It’s not same.
Supply chain is a name of a modern tool of business by which company and its suppliers to
produce and distribute a specific product to the final buyer. Supply chains are developed by
companies so they can reduce their costs and remain competitive in the business landscape.
It’s a concept of modern business.
Supply chain management is the practical implementation of the concept supply chain.
Supply Chain Management includes planning and management of all stages that are involved
directly or indirectly in fulfilling customer request. A supply chain includes all functions
involved in receiving and filling a customer request. New product development, marketing,
operations, distribution, finance, and customer service.

Supplier to Manufacturer to Distributor to Retailer to Customers

Supply management is also known as procurement. It is the modern term of procurement.
It is the act of identifying, acquiring and managing the Raw materials / resources and
suppliers that are essential to the operations of an organization. Supply management includes
the purchase of physical goods, information, services and any other necessary resources that
enable a company to continue operating and growing.

Which means it is the process of acquiring the raw materials to produce the finished
goods or service which provide to the customers.

1Q.B— How Company getting Competitive Advantage through Supply

Chain .. Explain with Industry example

ANSWER:
“Supply chain planning (SCP) is the forward-looking process of coordinating assets to
optimize the delivery of goods, services and information from supplier to customer, balancing
supply and demand.” SCP considers every stakeholder, from raw materials suppliers to end
customers, to build a cohesive plan to optimize a company’s production, sales and operations
and develop key performance metrics to ensure efficient and cost-effective operations.
Efficient supply chain planning achieves three goals: lowering production costs, increasing
sales and bolstering supplier relationships. In the 70s and 80s, companies like Wal-Mart and
Dell crushed their competition by gaining a competitive edge in supply chain and logistics.
Behemoths like P&G leverage digital technologies in the supply chain to gain their
competitive edge. Today, every business is capable of leveraging technology to improve
operational efficiency. Thus they got competitive advantage.

1Q.C- “ Supply Chain is a modern integrated operational lever ( tools) for

business Excellency” Explain in extensive way
ANSWER:
Supply chain operations put companies on a path to sustained improvement critical to
business operations including company costs and profits.
The economic downturn increased pricing pressures from customers and challenges around
operational and financial performance are all placing significant pressure on corporate supply
chain operations. Supply chain functions are critical business operations and have a
significant impact on company costs and profits.

Supply chain operations include the systems, structures and processes to plan and execute the
flow of goods and services from supplier to customer. To maximize effectiveness, it is critical
to evaluate both internal operations and the extended supply chain that includes suppliers and
customers.

The value of successfully addressing supply chain challenges is not only cost savings, but
also significant quality and customer service improvements across the entire supply chain.
The need for improved and integrated supply chain planning and execution has become a
common theme for companies of all sizes.

With the numerous external challenges that can affect your organization everyday – tools to
enable optimal remote work can help minimize or prevent disruption in your supply chain
operations.

1Q.D- Why is Supply Chain Management So Important and Considered as

a Life Blood of any Organization/SCM is cardio-vascular system of a
benchmarked organization – Explain , Why?

ANSWER:

Supply chain management is important because it can help achieve several business
objectives. For instance, controlling manufacturing processes can improve product quality,
reducing the risk of recalls and lawsuits while helping to build a strong consumer brand. At
the same time, controls over shipping procedures can improve customer service by avoiding
costly shortages or periods of inventory oversupply. Overall, supply chain management
provides several opportunities for companies to improve their profit margins and is especially
important for companies with large and international operations.
2Q.A. Explain Traditional Push and Pull Supply Chain, Do you believe –
“ Does an Industry have both Strategy in their Supply Chain Operations” –
Explain Why . Why “ Supply Chain Strategy aligning with Business
Strategy now in Global Completion”- Explain

ANSWER
Under the pull supply chain, the process of manufacturing and supplying is driven by actual
customer demand. In simple word, Pull strategy execution is initiated in anticipate of
customers order. It is make to order. Under the push supply chain, the logistics are driven
by long-term projections of customer demand .In simple word, Push strategy is execution is
initiated in response to a customer order. It is make to stock.

Yes. I believe that industry has both strategies in their supply chain operations. Many of the
giant companies use a pull-push strategy. In this combined approach, the approach aims to
“push” customers to choose particular options and once options are chosen, the customer’s
order “pulls” demand through the company’s supply chain. For Example, Amazon..
Amazon’s own warehouses have been strategically set up and stocked, moving closer and
closer to major metropolitan areas and city centers. As a result, it uses a pure push strategy
for the products stored in its warehouse, predicting the needs of specific regions. On the other
hand, it uses a pure pulling strategy when it sells products from third party vendors, using the
order-by-order fulfillment model.

Here are six steps to align supply chain with business strategy in Global Completion

 Define and communicate a clear Business Strategy. One of the biggest failure
points in aligning strategy is when the supply chain organization doesn’t know what
to align with.
 the areas of the Business Strategy that are enabled by the Supply Chain. You
need to connect the dots between your strategic goals and how those get delivered by
the company. 
 Align Supply Chain performance metrics with the Business Strategy. One of the
most common issues we see is the belief that there are standard supply chain
performance measures, and the company should strive to maximize them all. 
 the Supply Chain to optimize the strategic goals. This step is where you address the
elements of supply chain design: Supply chain network, locations, supplier selection
and business terms, inventory and planning policy, organizational structure.
 Align incentives end to end. Internal performance evaluations and bonus structures
need to match the aligned metrics that have been set.
 Keep refreshing the strategy and alignment process. we have seen companies that
literally go decades without re-aligning their supply chain strategy. Put your supply
chain strategy on the same schedule as the rest of your planning.

2Q.B. “There is a person at the end of our Supply chain” – Who and Why ?
“Why Supply Chain Focus on the Expectations/ Demand of the End
Customers” – What is logical reason behind it – Explain
ANSWER
customer is a person at the end of our Supply chain. Customers are the key point of any
business. Creating customer value is the driving force behind a company's goals, and supply
chain management is one of the means of achieving customer value. Valuing means
understanding customer needs and demands. They should provide the best quality product
with low cost, fast delivery and return ability system. Companies should create and deal with
the customer’s mind. Because the ultimate motto of supply chain is “There is a person in the
end of supply chain”.
.
Customers play an important role in the creation of supply chains. The customer is a key
figure in the supply chain and their demand, values and opinions will affect the supplier
decisions buyers make. This requires businesses to get a clear understanding of what
consumers value about them and how they differentiate themselves in the marketplace.
customer demand to meet the increasing customer requirements and ensures a high degree of
flexibility.

2Q.C. Discuss on Value Chain , How Supply Chain Converted into Value
Chain , Explain Briefly according to your own knowledge… What is your
own understanding on Customer Retention through Value delivery , i.e.
Customer Value.

ANSWER
A value chain is a business model that describes the full range of activities needed to create a
product or service. The purpose of a value-chain analysis is to increase production efficiency
so that a company can deliver maximum value for the least possible cost.
If we set up a supply chain. So if we add value to each step of the supply chain. Marketing
will give us the opinion of that customer. After knowing their feedback, we add value to each
step according to their needs. That is, the supply chain converted into value chain.

Customer retention is the collection of activities a business uses to increase the number of
repeat customers and to increase the profitability of each existing customer. Customer
retention strategies enable you to both provide and extract more value from your existing
customer base. You want to ensure the customers you worked so hard to acquire stay with
you, have a great customer experience, and continue to get value from your products.

Customer Retention means ― Holding / Keeping the Customer for Business .

Customer Satisfaction refers Satisfaction on its Product or Value delivery to its Customer.

For a example - Nestlé’s Maggi Noodle ---

You as a Customer Still ― Using Maggi of Nestle as because You are Satisfied on its
Product Quality and
others Attributes. But You are Still unstable to Consume Kiswan Noodle
As you Still Satisfied on Maggi , Its their Customer‘s Satisfaction -----means Customers
Satisfaction and Nestle Still Holding You as Your valued Customer‘s Its Nestlé’s Customer
Retention Indeed.
2Q.D. “As the economy changes, as competition becomes more global, it is
no longer company vs. company but supply chain vs. supply chain” Explain
according to your own Understanding, focusing on Bangladesh Context.

ANSWER
In the today’s world the supply chain is so competitive position that it is not a company vs.
Company but a supply chain vs. supply chain.
The company that can transfer customer value, deliver value, retain customer value becomes
the most benchmark organization.
If a company can retail customers with its products, retain customers, make marketable
products easily available and deliver fast. The more a company can respond to the market, the
more sustainable that company will be. He may have had such a strong base.
Some competition which product can be presented in the market in front of us (customer).
The company is able to add value to the product and present it to us. That is why competition
is a supply chain vs. supply chain.
For example: RFL (SUPPLY CHAIN) VS OTOBI (SUPPLY CHAIN)
RFL create value is product, fast deliver, easily available product in market. RFL can respond
to the market, the more sustainable that company will be. He may have had such a strong
base.
BUT, OTOBI cannot hold is customer retention. He is created add value .that why OTOBI is
backward now.

We are clear explain for 7 principle supply chain vs., supply chain not a company vs.
company today’s world below that those point---
 Principle 1: Segment customers based on the service needs of distinct groups and
adapt the supply chain to serve these segments profitably.
 Principle 2: Customize the logistics network to the service requirements and
profitability of customer segments.
 Principle 3: Listen to market signals and align demand planning accordingly across
the supply chain, ensuring consistent forecasts and optimal resource allocation.
 Principle 4: Differentiate product closer to the customer and speed conversation
across the supply chain.
 Principle 5: Manage sources of supply strategically to reduce the total cost of owning
materials and services.
 Principle 6: Develop a supply chain-wide technology strategy that supports multiple
levels of decision making and gives clear view of the flow of products, services, and
information.
 Principle 7: Adopt channel-spanning performance measures to gauge collective
success in reaching the end-user effectively and efficiently.
3Q.A. Discuss Ultimate Goal of Supply Chain Management and Discuss
Main types of Competitive Advantage with Industry example?

ANSWER
Supply chain management is concerned with the efficient integration of suppliers, factories,
warehouses and stores so that merchandise (Products/ SKU) is produced and distributed:
1. In the right quantities
2. To the right locations
3. At the right time
In order to
1. Minimize total system cost (Cost Minimization)
2. Satisfy customer service requirements (Full filling customer demand)

To start with, Amazon’s SCM has a strategic fit with its competitive strategy of being the
retailer of choice for its customers. The combination of multi-tier inventory management,
superlative transportation, and highly efficient use of IT (Information Technology), and its
wide network of warehouses are all geared towards aligning its SCM with its competitive
strategy.

The next aspect is related to its outsourcing of its inventory management. Amazon outsources
the storage and distribution of products that are not frequently purchased nor ordered for
immediate delivery as well as products where the costs of storing them exceed the marginal
returns on their sales.

3Q.B. Discuss Supply Chain Macro Process, How it is interrelated with

each other, SRM & CRM both are playing important role in Supply Chain
excellency – How explain?

ANSWER
Supply Chain Management macro process steps are given below:-
1. Customer Relationship Management (CRM): All processes that focus on the interface
between the firm and its customers
2. Internal supply chain management (ISCM): All processes that are internal to the firm.
3. Supplier Relationship Management (SRM): All processes that focus on the interface
between the firm and its suppliers. The three macro processes manage the flow of
information, product, and funds required to generate, receive, and fulfill a customer request.
Supplier relationship management (SRM) is the discipline of strategically planning for,
and managing, all interactions with third party organizations that supply goods and/or
services to an organization in order to maximize the value of those interactions. In practice,
SRM entails creating closer, more collaborative relationships with key suppliers in order to
uncover and realize new value and reduce risk of failure.
Customer relationship management (CRM) is an approach to managing a company’s
interaction with current and future customers. The CRM approach tries to analyze data about
customers' history with a company, in order to better improve business relationships with
customers, specifically focusing on retaining customers, in order to drive sales growth.
3Q.C. Discuss Stages of Supply Chain , How you explain Supply Chain
Managing function from Demand to Delivery ( D2D) explain ?
ANSWER
There are four Important Stages across Supply Chain :-
 Demand Management
 Materials Management (Inventory Management)
 Production Management
 Supply & Distribution Management
We can explain the SCM function in many way here I have given some point in my own way
that at least you can get the minimum idea about Demand to Delivery system.
1. Customers: Determine what products customers want (Specially Consumers)
2. Forecasting: Predicting the quantity and timing of customers demand (Demand
Forecasting)
3. Design: Incorporating customers wants, preferences and time to market. (Example-
-- Lux Design ,Glaxose , Pepsi)
4. Capacity Planning (Facility): Matching supply and demand (Specially
Manufacturing Facility)
5. Inventory: Meeting demand requirements while managing the costs of holding inventory.
(Ex- Raw Material)
6. Purchasing (Procurement): Evaluating potential supplies, supporting the needs of
operations on purchased goods and services
7. Suppliers: Maintaining supply quality on time delivery and flexibility maintain supplier
relation. (Ex-Source)
8. Location: Determine the location of facilities (Ex–Danone Food Located at Bogura)
9. Logistics: Deciding how to best move information and materials.

3Q.D. What would be Great benefit if Supply Chain Converted into Value
Chain? Why Giant / Global Multinational Company Practicing Value
Chain Management?

ANSWER
Value chains help break down all the activities that go into producing a good or service and
understanding areas of cost savings and differentiation. With a value chain, you can optimize
efforts, eliminate waste, and improve profitability. The value chains help provide useful
insights that can bring greater value to the end customer. Value chains help break down all
the activities that go into producing a good or service and understanding areas of cost savings
and differentiation. With a value chain, you can optimize efforts, eliminate waste, and
improve profitability. The value chains help provide useful insights that can bring greater
value to the end customer.
When value chain management is implemented effectively, the flow of products and
materials is improved through the accurate forecasting of sales and demand as well as
improved inventory management. Delays are also minimized and products are visible and
traceable throughout the supply chain.

The international fragmentation of production in global value chains (GVCs), driven by

technological progress, cost, access to resources and markets, and trade policy reforms,
challenges the way we look at the global economy. It is essential to understand how global
value chains work, how they affect economic performance, and how policy can help
countries derive benefits from their participation in global value chains. This report sets out
the main evidence and policy implications of the OECD's work on global value chains,
drawing on the OECD-WTO work on measuring Trade in Value Added. The policy
implications include trade policy, as the emergence of GVCs calls for a reassessment of a
range of trade policies, but also investment policies, innovation policies, and framework and
structural policies that affect how, and to what extent, countries, including emerging and
developing economies, can benefit from participation in global value chains. Drawing on
inputs from across the OECD Secretariat, the work summarized in this Synthesis report aims
to provide evidence of the role of value chains in the global economy; and to improve
understanding of current and emerging policy challenges. The key policy messages of the
report are set out below.

1. Improved Bids and Proposals: Effective VCM improves your ability to capture,

track and manage customer and marketing requirements to better estimate design,
planning, procurement, production and service activities for more accurate cost
estimates — all with complete traceability.

2. Better Product Planning, Research, and Development: Good VCM includes

developing a cross-functional team approach to planning, developing, delivering and
servicing products focused on program performance, cost reduction and product
quality. This enables you to more effectively plan and implement simultaneous
projects while managing resource allocation, costs, scheduling and deliverables more
efficiently.

3. Standardized Processes: VCM calls for repeatable and measurable business

processes to better manage the product master data to ensure that customer
expectations and commitments are met. Active VCM enables release and change
processes to be better managed from concept to implementation. Standard, reliable
and repeatable processes contribute significantly to reducing overall operational
inefficiencies and waste.

4. Improved Vendor Management: Synchronizing design and sourcing teams with

vendors ensures that outsourced components and subsystems are managed to meet
performance, quality, schedule and cost requirements while avoiding design flaws,
excess inventory and waste.

5. Post-Sales Service and Support: Through VCM, you’re able to better manage and
track in-service product configuration changes coordinated among field service,
customer support and engineering resources.

6. Reduced Costs: Optimizing all the value chain components listed above can result in
substantial end-to-end cost savings from streamlined processes, reduced inefficiencies
and waste, better inventory control and improved product quality.

7. Improved Profitability: The ultimate result of a comprehensive and robust VCM

program is enhanced revenues and better profit margins, contributing to greater
overall success.
4Q.A. Explain First Principle of Supply Chain First Principle -01: Segment
Customers based on service needs. Why and How Giant / Global
Multinational Company Practicing this first Principle of Andersen
Consulting Firm.

ANSWER
The businesses and supply chain professionals understand customer’s needs. Customers are
divided into different groups called ‘segments’ in order to understand them better. On the
basis of sales volume or profitability, the primitive way to segment customer is ABC
analysis. It can also be done by product, trade channel and industry. Anticipating the
customer’s needs is also very important. Once the needs of the customers are anticipated, the
supply chain should be aligned to cater to the needs.
For example, in 2011 Amazon initiated a program called Amazon Prime (free 2-day shipping
and discounted 1-day shipping). Today, people are still discussing if this program makes
sense. But one thing for sure, customer turns to Amazon more and more. The morale of this
story is that you should “anticipate” customer’s needs as well.

4Q.B. Explain / Breakdown the Definition of Supply Chain Management -

According to Your own Understanding, setting a suitable Example
(Flexibility given to you to have the opportunity let me understanding your
insights)

ANSWER
Supply Chain Management includes, planning, design, control and implementation of all
business processes related to procurement, manufacturing, distribution and sales order
fulfilment functions of a business. Thus, Supply Chain Management includes managing
supply and demand, sourcing raw materials and parts, manufacturing and assembly,
warehousing and inventory tracking, order entry and order management, distribution across
all channels, and delivery to the customer.

Example: Walmart and “Big Box” Retailers

Walmart succeeds by having fewer links in its supply chain, and buying more generic goods
directly from manufacturers, rather than from suppliers with brand names and markup. It uses
“Vendor Managed Inventory” to mandate that manufacturers are responsible for managing
products in warehouses owned by Walmart. The company is also is particularly choosy with
suppliers, partnering only with those who can meet the quantity and frequency it demands
with low prices, and with locations that limit transportation needs. They manage their supply
chain like one firm, with all partners operating on the same communication network. 
 
By buying at large enough quantities to take advantage of economies of scale, moving
products directly from manufacturers to warehouses, and then delivering to stores which are
large enough to be distribution centers, it reduces links in the supply chain and cost per item,
translating to low prices for consumers. 
4C. “Monitor Customer Value Over time” – Why and give the explanation
in Supply Chain Context. Answer according to your group discussion

ANSWER
Demand to provide the optimal customer experience continues to escalate, and companies
must continually seek out better ways to deliver customer satisfaction and retention. Many
companies find that value-added logistics services help give their supply chain a competitive
edge. Here are some points where monitoring customer value over time helps company to
rise day by day.
1. Expand product offerings. From building gift baskets to creating twin-packs, value-added
services help give your customers more buying choices.
2. Get products shelf ready. Value-added services such as price marking, tagging, and
display building help to streamline the process of getting products on store shelves.

3. Manage inventory more efficiently. With the ability to customize products, you're able to
stock fewer SKUs, thereby reducing the cost of carrying and managing inventory.

4. Reduce the number of suppliers. By asking your existing partners to perform more
value-added functions, you can reduce the number of suppliers and streamline your supply
chain. Even materials such as cardboard for displays can be shipped to a third-party logistics
(3PL) provider to be built and sent out with customer orders to eliminate one step in the
process.

5. React faster to changing business needs. With value-added operations close to the end
customer, you can delay product configuration until the last possible minute to respond more
accurately to customer demand.

6. Manage transportation costs. The closer packaging facilities are to manufacturing

operations, distribution centers, or end destinations, the more cost effectively you can
transport products.

7. Control labor costs. With automated solutions and careful review of supply chain
processes, value-added services can help eliminate downtime and reduce the number of
touches required in the packaging process—ultimately saving money on labor.
8. Ensure continuous improvement. If you team up with a 3PL, they can assist with process
reengineering, packaging needs assessment, component purchasing, and supplier evaluation
to ensure value-added services are delivering what customers demand.

4Q.D. Explain 3rd Principle of Supply Chain- Listen to signals of market

demand and plan accordingly…Why Do Nokia Fail in Android Smart
Phone Technology. Why in Bangladesh Aromatic Soap / Keya declined but
Lux Still retaining “Customer” since Long.
ANSWER
The Third Principle focuses on cumulative forecasting. A single business involves many
departments like production, warehousing, sales, etc. It is of utmost necessity that forecasting
of market demand must be done at a cross functional level and not at an individual
department level alone. Each department must plan towards a common operational goal for
minimizing costs, cutting down inventory levels and maximizing profits.
Nokia was one of the biggest mobile phone company in the world but today’s date the
company Nokia has literally disappeared. Every phone they use to produce, use to be sold out
within few months. But today we don’t see Nokia in market due to lack of market
understanding and not been able to give what customer desire and also because of last of
supply chain. Customers needs changes with day to day and Nokia didn’t shift to android at
the right time and Customers demand for android increased and Nokia was the same it was
before. For which the market of Nokia fell and we don’t see Nokia any more in the market.
When we see soap, we think of good smell item by which we can take shower. As Aromatic
Soap/ Keya wasn’t able to provide the correct product for which the customer shift to another
company LUX which provided the correct product in the market and they had proper stock
up for which there selling rate increased and Keya’s market fell within few years.

THE END