SCM310 GROUP PROJECT

ON BASHUNDHARA TISSUE

Submitted to,
Faculty: Mr. Meshbaul Hassan Chowdhury (MHCw)
Lecturer, Department of Management
North South University
SCM310 Section: 01

Submitted By,
Group: Team Under Supply
Group Details:
Name ID

Nazeeb Faiaz 1911785630

Nyeeb Imtiaz 1831886630

A.H.A Murshid 1921967630

Safwan Al Amir Srabon 1911228630

Sanjida khandoker 2011579030

Date of Submission: 2nd January, 2022

 Letter of Transmittal
January 02, 2022
Meshbaul Hassan Chowdhury (MHCw)
Full Time Faculty
North South University
Bashundhara R/A, Dhaka-1229

Subject: Submission of SCM310 Report on Bashundhara Tissue

Dear Sir,
We would like to start to report by thanking you for the opportunity to apply our classroom
knowledge in the real world, as well as for your exceptional guidance throughout the semester.
This course provided us with hands-on experience in Logistics and Transportation.

We believe that the knowledge we gained while producing this report will be useful in our future
professional lives as well as in delivering more effective performance on our work. We sincerely
hope you will find this report interesting. We did our best to offer all of the material you asked,
and we hope you find the report to be informative. Thank you for your guidance in this incredible
experience.

Regards,

Nazeeb Faiaz ID: 1911785630

Nyeeb Imtiaz ID: 1831886630

A.H.A Murshid ID: 1921967630

Safwan Al Amir Srabon ID: 1911228630

Sanjida Khandoker ID: 2011579030

 Acknowledgement
We'd like to start by praising and thanking the Almighty for allowing us to finish our report. With
this report, we will come to the end of a fantastic adventure in this Logistics and Transportation
course (SCM310). It was a fantastic opportunity for us to face real-life challenges and put our
practical knowledge and skills to action.

We would like to express our gratitude to our honored instructor Meshbaul Hassan Chowdhury
(MHCw) sir for his unwavering support and guidance. His admiration inspired us to study hard all
the time and assisted us in comprehending the complexities of theoretical topics. We were able to
connect with actual life as a result of the project. We would also like to thank him for always being
available to us for any questions, which enabled us to complete our project successfully. Last but
not least, we would like to thank all of our members for their hard work and efforts.

We would want to end by apologizing for any shortcomings that have arisen as a result of the
pandemic. However, we made every attempt to improve this situation.
 Executive Summary
The report is solely based on the logistics, transportation and warehousing activities of
Bashunhhara Tissue. In this report we have discussed all the factors that contribute to the activities
of Bashundhara. Their logistics activity reflects to their relationship with their logistics network
and shows how they have managed to cohesively maintain this network. Their transportation
activities vary to their location and the kind of activity they do on the production to delivery
process. Warehousing is one of the key elements of successful supply chain activity for
Bashundhara and the report also reflects to these factors. All in all this report covers all the key
activities of Bashunhdhara Tissue in the three distinctive yet correlated processes.
 Table of Contents
Company Overview ....................................................................................................................................... 1
Logistics Channel and Relationship ............................................................................................................... 3
Inbound Logistics: ..................................................................................................................................... 4
Outbound Logistics: .................................................................................................................................. 4
Order Cycle: .............................................................................................................................................. 5
Transportation .............................................................................................................................................. 6
Domestic Shipment: .................................................................................................................................. 6
International Shipment: ............................................................................................................................ 6
Own Transportation system: .................................................................................................................... 6
Covid-19 affect, coping up with the changes and growing demand: ....................................................... 7
Warehousing ................................................................................................................................................. 8
Time for holding inventory: .................................................................................................................... 10
Inventory Management system of Bashundhara: .................................................................................. 11
Changes for Covid 19 in Warehousing .................................................................................................... 11
Recommendation........................................................................................................................................ 13
Conclusion ................................................................................................................................................... 14
References .................................................................................................................................................. 15
 Company Overview
Bashundhara Tissue has been the pioneer of tissue industry since they started their journey. In May
2000 Bashundhara Tissue started their journey with Bashundhara Paper Mills. The Bashundhara
Group began operations in 1987 as "Bashundhara," a real estate venture under the aegis of the
group's founding firm, 'East-West Property Development (Pvt) Ltd.' this effort was a success, and
it aided in the rapid building of trust and confidence among the city dwellers in "Bashundhara."
The milestone achievement of Bashundhara was driven by Dhaka's growing population and a
noticeable sluggishness in urbanization. Bashundhara extended their operations into other
industries, such as manufacturing and commerce, as a result of their success. Bashundhara's first
open market organization was Meghna Cement Mills Limited, which is now listed on both of
Bangladesh's stock exchanges. In the mid-1990s, the firm extended its product range to include
cement, pulp & paper, tissue goods, media (newspapers and TV channels), LPG bottling as well
as dispersion, shopping malls, steel, food and beverage, shipping, and trade, among other things.
As a result, in this case study, we've chosen tissue goods as a commercialization to deal with.
Bashundhara Group now has over 35 key businesses, including Bashundhara Paper Mills Ltd in
Gazaria, Munshinganj. They also have a corporate office and two headquarters at Pushpanjali,
Bashundhara Convention Center Road, and Dhaka.

They started at a time when the people of Bangladesh where not merely concerned about the proper
hygiene maintaining because it was an expensive mean at that time. Since then after the launch of
Bashundhara Tissue people took the brand as one of their own because it showed them new ways
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to maintain hygiene. Bashundhara Tissue spread out in every corner of Bangladesh to become the
biggest tissue manufacturing brand in Bangladesh with the superior help in logistics and
transportation from Bashundhara Paper Mills Ltd.

Bashundhara Group currently has around 35 key businesses, including unit-3, Bashundhara Paper
Mills Ltd, which is located in Gazaria, Munshinganj. Furthermore, they have two headquarters and
a corporate office in Dhaka, Bangladesh, at Pushpanjali and Bashundhara Convention Center
Road. (Corporate profile, undated). People have been more concerned of their hygiene and health
as a result of Covid-19, which has resulted in a huge increase in demand for tissue products over
the last few years. The potential growth of Bashundhara Tissue is already visible because they
have captured the market with their 350 exclusive and several local distributors all around the
country. Bashundhara Tissue has been presented in both ATL and BTL as the most loving Tissue
brand in Bangladesh, particularly as the brand celebrates 20 years of passionate journey of Love
& Care in 2020.’

Mission: Bashundhara Group goes by a saying ‘For the people, For the country’ which has a broader
meaning and reflects from the attributes of their operation. Bashundhara is more consumer concerned
for which they have a saying “For the people’. Bashudhara Ltd had also reached their hands to the poor
people across the country through different charitable services.

Vision: Bashundhara Group wants to see themselves become one of the wide-ranging organization
operating in the country along with being the highest contributor to the social and economic development
among all the private organization

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 Logistics Channel and Relationship
The logistics channel of Bashundhara Tissue is well structured because their logistic department
is the main reason that they are pioneering the tissue industry of Bangladesh. Bashundhara has a
very reputed and strong supplier lineup who provide Bashundhara the best quality raw materials
such as paper woods and etc. The top suppliers of Bashundhara are Indonesia, Malaysia and other
Asian countries. The transportation modes which supplier and Bashundhara use are seamless. They
mainly use cargo ships which can carry huge quaintly of paper raw materials. After collecting the
raw materials they use their own local carriers to set them in to warehouses. Bashundhara have
their own warehouses because as the market demand is huge in our country they have to use
inventory very quickly and refill it again. Then from warehouse the raw materials goes to their
factories where they use all the advanced technologies to produce high quality tissue products for
their consumer and send to their own finished product warehouses.

The relationship with their supplier and distributors is a strong advantage of Bashunhdhara. They
have the largest distributor and supplier lineup and they have built a relationship that has lasted
long for Bashundhara. Maintaining cohesive relationship between their distributor, retailers and
suppliers give them the opportunity to run a smooth logistics channel operation.

Outbound Logistics

Distributors
Suppliers
Factory
Local
Customers
Carrier

R/M Retailer
Finished
Warehouse
Product
Transportation Warehouse
Modes

Inbound Logistics

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Inbound Logistics:
After accepting a purchase need for any item, the company's purchasing department creates a
purchase order and sends out many requests for quotations to various suppliers to compete for the
business. An order is sent to the selected vendor after an analysis and negotiation with them, as
well as comparison of their bids, is completed by the purchasing department. In the following step,
Bashundhara Paper Mills Limited arranges for its bank to provide a letter of credit to the supplier
in the amount of their transaction with the supplier. Upon receipt of the raw materials and
inspection of the invoices received from suppliers, the company authorizes the invoice and pays
the vendor in full. Bashundhara obtains materials from suppliers via a variety of modes of
transportation, including road, river, and even air transportation. Local carriers are used to transfer
the materials to the raw materials warehouses at the start of the process. In order to make the
products, materials are transferred from RM warehouses to manufacturers in Dhaka and
Munshiganj.

Outbound Logistics:
The outbound logistic of Bashundhara is the main strength of Bashunhdhara because they have
very well managed distribution channel and with that they cover most of the areas of Bangladesh.
Another reason for the efficiency is that they have a wide range of distributors and these
distributors have a maintained a great relationship with Bashunhdhara. They have their own local
carriers which are convenient for them to distribute in different remote areas where they have their
distributors. The finished items are delivered to FG warehouses, which are conveniently positioned
near the facility. Primary distribution is the process of distributing products from FG warehouses
to depots, which is also known as secondary distribution. The company maintains sales offices in
several locations, including Dhaka, Chittagong, Khulna, Comilla, Mymensingh, and Rangpur,
among others. Following that, the commodities in the depot are transferred to dealer levels in
response to market demand; this is referred to as secondary distribution in the industry.

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Order Cycle:
The order cycle of Bashunhdhara Tissue is fluent. They have specific consumption rate of their
quantity in hand because they have covered all around the country so they have a huge demand.
Their main target in the order cycle is to captivate on the lead time. Their order placement and
receiving the order is set to certain day because their re-order point is day75. They have a total of
15000 Metric Ton of Units in hand for 24 operating days. These in hand are sufficient for the
consumption rate they have. They also have safety stock beside their consumption because the
demand may fluctuate and other circumstances may differ the consumption rate. So if their main
consumption rate which is 200 unit of wooden stacks they have 100 units in safety. So, as we have
calculated that their re-order point is 5100 units. This order cycle shows how efficient Bashundhara
Tissue order cycle is.

Daily Consumption – 200

Operating Day per Month- 24 days
Safety Stock- 100
Lead Time- 25 days
Quantity in
Hand Re-order Point = (200 x 25) + 100= 5100
Units
15000MT
Units Usage
Rate- 200
Units per
Day

Re-order
Point

Safety
Stock
100Units
Order Receive Place Receive Place Receive
Placement Order order Order order Order
Day 50 Day 75

Lead
Time 25
Days 5|Page
 Transportation
One of the most important aspects of Bashundhara Tissue's overall supply chain is its transport
system. Any inefficiency in transportation directly affects product costing, resulting in a loss of
market competitiveness, so the transportation system of Bashundhara Tissue is widely and directly
connected to the profitability of the company. They choose their transportation options and
carriers based on the distance between their distribution locations, which assures product safety
throughout transportation process. Bashundhara Tissue paper’s main transportation mode is rail,
motor and water.

Domestic Shipment: For domestic shipment of Bashundhara Tissue’s, Bashundhara Group use
motor and rail transportation mode as their basic shipment option. It all began with a desire to
providing healthy and hygienic lifestyle. The Bashundhara Tissue brand remains fascinated by its
original brand promise to assist Bangladesh in living a clean and safe lifestyle. Bashundhara Tissue
can now be found in every corner of Bangladesh, from a little tong to a high-end department store,
owing to its statewide distribution network of over 350 exclusive and devoted distributors and
continuous manufacturing at a world-class facilities plant. Bangladesh uses Bashundhara Tissue
Paper. Trucks are the major motor Carrier to carry things throughout the country in a productive
manner, and they're the fundamental workhorses and a crucial part of entire supply chain. They
are frequently provided with a covering that may hold shipping boxes in a structured way. Even in
the state of Covid-19, many businesses, notably Bashundhara Tissue Paper, have adopted trucks
as a common carrier of transporting items in their supply chain.

International Shipment: Bashundhara Tissue Paper is exported to over 20 different countries

in a bulk amount throughout the globe (brandstory). For the International shipment, they use water
transportation mode religiously. They use their own cargo ships as the basic water carrier. They
have 35 different distributors around their international business location where they ship their
product.

Own Transportation system: Bashundhara Tissue doesn’t use any 3PL for the transportation
of their goods. They have their own transportation to distribute their product to the 350 distributors
in our country and to the 20 different countries world-wide. Bashundhara Logistics was founded
in 2005 to help Meghna Cement Mills Ltd by purchasing local vessels. By 2006, the logistics fleet
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had grown to 20 coaster vessels capable of delivering a variety of products. Bashundhara Logistics
Limited is involved in ship management, which includes technical ship management, ship business
management, ship building, crew management, registration, survey, repair, maintenance, storage,
dry-docking, and the importance of connected papers. Bashundhara they also purchased new local
carriers for their outbound activites. Bashundhara Logistics Limited performed and continues to
play a critical role in the economic growth of the Bashundhara Group through the interchange of
products.

Covid-19 affect, coping up with the changes and growing demand: COVID-19 has had
a significant impact on transportation and trade logistics, and it is critical to maintain these
networks operational in order to overcome the crisis. To identify difficulties and potential for
Bashundhara Tissue paper in the Covid19 era, an appraisal of the impact of connectivity, the
backbone of transportation, trade, and logistics, is essential. COVID-19 has a multi-faceted
influence that may be seen in many forms of transportation mode including motor, rail, air, water,
and pipeline. The impact varies depending on the place, country, and condition. The tissue and
sanitary divisions accounted for two-thirds of Bashundhara Paper's total income when it was
placed on stock markets in 2018. Following the coronavirus epidemic in the country in the March
of last year, demand for its tissue and sanitary products increased. Despite production and supply
chain delays, Bashundhara Paper Mills has achieved quarterly revenue and profit growth, because
of the tremendous increased of demand for its tissue and hygiene products in the context of the
Covid-19 outbreak. Compared to the previous fiscal year, sales increased by 7% and net profit
increased by 222 % in the January-March quarter. In normal circumstances, roughly half of the
business's revenue comes from paper goods, with the balance coming from tissue and hygiene
items. However, during the pandemic, tissue and hygiene items accounted for around two-thirds
of the company's revenue. This was only possible because of their own transpiration system and
widely distributed distributors all over the country. M. Mazedul Islam, general manager and
company secretary of the Bashundhara Paper Mills told The Business Standard that, “"The revenue
of the company has increased mainly due to the tissue and hygienic segments as the sales of these
products have jumped during the pandemic," (Islam, 2021).

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 Warehousing

Warehousing is the practice of holding physical products in a designated warehouse or storage

facility until they are sold or disseminated further. Warehouses store things in a safe and secure
manner, keeping track of where they are, when they arrived, how long they've been there, and the
quantity on hand. Inventory warehousing may be done from home for small or fledgling firms until
they exceed the area. A company will either have to rent storage space, lease a warehouse, or
outsource logistics to a third-party and keep merchandise in their warehousing facilities at that
time.

Bashundhara has always given importance to its warehousing and inventory management.
Bashundhara has 3 kinds of inventories. And they are:

a) Raw Material inventory - Here after the raw materials are received from the suppliers, the
raw materials are stored for being used in the production.
b) Semi-Finished goods Inventory- as Bashundhara tissue is being produced following a few
steps so they need proper processing. So after the processing some time is needed for the
semi-finished goods to be used to make the final goods.
c) Finished Goods Inventory- After the finished goods are produced they are stored in a
separate warehouse to be delivered to their desired destination.

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The warehouse that Bashundhara tissue uses:

In 1995, Bashundhara Paper Mills Ltd. (Unit-3) was established in Anarpura, Gazaria,
Munshiganj. With increased demand for Tissue goods due to changing lifestyles of urban to
suburban consumers, this first basic tissue paper production plant in Bangladesh eventually
emerged as a pioneer in the industry - 'Bashundhara Tissue' has become a trusted name with
significant brand equity. The focus with Quality and Customer Satisfaction at the BPML-3 unit is
evident in the understanding and fulfillment of consumers' expectations, large and small. This has
been a crucial role in the company's success and the advantage it has built over the years in terms
of a large and loyal distribution network throughout Bangladesh.

Diverse sorts of Tissues span from Facial Tissue to Pocket Tissue, from Napkin Tissue to Kitchen
Towel Tissue, from Toilet Rolls to Clinical Bed Sheets, from Wet Tissue to MG Hard Tissue, and
are successfully created on five manufacturing lines to meet consumer needs. This plant's premier
products include Monalisa Sanitary Napkin, Bashundhara Baby Diaper, Bashundhara Diapant,

Hand Gloves, Cotton Bud, Drinking Straw, Tooth Pick, Paper Carton Container, MG Poster Paper,

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Ledger Print Paper, Colour Printing Paper (Pink, Yellow, Green, Blue), Liner Paper, Manifold
Paper (White, Pink, Yellow, Green, Blue), Plug-wrap Paper, and Plug-wrap Paper.

This warehouse of theirs is close to their manufacturing plant. And hence it's easier for them to get
all the materials from raw materials to semi-finished goods very easily.

Time for holding inventory:

The Bashundhara group uses a repetitive or mass manufacturing technique to make tissue goods
in large quantities and with little variability. The Bashundhara Group's tissue production method
is more capital expensive, requiring less skilled personnel (semi-skilled), and because of the
limited variance, the same procedure and equipment are utilized again.

As it's a repetitive process and the raw materials used are mainly tree pulp and chemicals which
have risk of rotting and damaging. So Bashundahra doesn’t hold its inventory of raw materials and
semi-finished goods for more than 2 to 3 days. And when it comes to finishing good Bashundhara
holds its inventory for a week at most. But as tissue paper is an fmcg product so it has a very high
demand and hence the finished goods inventory are not held for a long period of time.

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Inventory Management system of Bashundhara:
The storage of raw materials and completed commodities is referred to as inventory management.
In addition, inventory management systems are used by Bashundhara in its everyday
manufacturing process. Independent demand inventory is what Bashundhara utilizes, and it
consists of completed tissue goods that don't need to be sold. The inventory management is solely
based on their fast moving inventory process. As they produce FMCG products their main goal is
to finish inventory as soon as possible. They don’t store inventory more than one week because
they have enough safety stock and their order cycle. The inventory management of Bashundhara
is fluently managed because of their quick inventory restock.

We don't keep inventory for a long period in Bashunhdhara's manufacturing process. The reason
for this is that our raw materials are in large amounts, hence we make completed items in large
quantities. As a result, keeping the inventory will raise the holding cost, as well as the depreciation
expenditure.

The perpetual inventory system is what we use to tally the inventory for Bashundhara. The reason
for this is that we count the system on a regular basis since we don't keep inventory for lengthy
periods of time and need to update our inventory often.

Perpetual has a higher level of intensity. And in this way we can always meet our customer demand
and also due to this our raw materials which have high risk of getting damaged are safe and intact.
So overall, this inventory management technique helps Bashundhara for overall warehousing.

Changes for Covid 19 in Warehousing

Due to Covid 19, Bashundhara Tissue brought few changes in the Warehousing. They maintained
the workers total hygiene protocol and made workers work in shit in order to reduce the rate of
infection. For their logistics channel they have placed COVID test booths all over their networks
because they want a very protective environment so that their workers can work efficiently.

Furthermore due to covid as more people started to get conscious about their hygiene so the overall
demand for Bashundhara tissue increased and hence for meeting this demand Bashundhara has
increased its supplies of raw material and now has to manage its warehouse more efficiently.
Indonesia, Malaysia, and other Asian nations are the primary suppliers of Bashundhara. The finest

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vendors, however, are those located near to our region, as purchasing things from these places is
easy.

Bashundhara has a few local vendors who supply them with paper supplies. BASCO and Swisstex
Limited are the companies in question, so they affiliated with them to manage its warehouse to
meet this new demand.

They have also changed their packaging materials for the covid situation because before their tissue
products didn’t have two layer protection but now they are using advance paper and plastic
materials that can protect the consumer and the employees of Bashundhara to protect themselves
from the COVID contingency.

In terms of their consumption of their raw materials every month, it has changed due to the
pandemic. So they have managed to order excess materials so that they can meet the demand. They
have a very controlled safety stock for all the circumstances of COVID.

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 Recommendation
Logistics and Relation:

If we look at their logistics network we can see that they have successfully managed to link
everything cohesively. But still we will recommend them to add more retailers to the lineup as
well as if they use big containers ship which can carry more materials because as it is the time of
pandemic the demand for tissue product has increased very much. And for the local carrier they
should by new pickup trucks which can carry more products at once.

Channel of distribution that is strong:

The Bashundhara Group is unable to adequately distribute all of its products outside of Dhaka.
They can provide their whole product line in Bangladesh if they strengthen their distribution route.

Outsourcing:

The company has the ability to outsource its operations. It may assist the organization in working
quickly and efficiently while saving money in accordance with the company's needs.

Increase marketing logistic:

The majority of rural people are unaware of several of their basic products, such as Bashundhara
atta, suji, and oil. This is a product that we use on a daily basis. To improve sales, they should
enhance their marketing effort among individuals who are unfamiliar with their goods.

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 Conclusion
This report concludes that Bashunhdhara Tissue has a successful logistic, transportation and
warehousing channel and network. We can see how in this pandemic era Bashundhara has taken
some critical steps in order to perform like previous years because in Bangladesh, tissue products
are known as Bashundhara products because they have a very high demand and their supply covers
all over Bangladesh. In this way we can see conclude that Banshundhara can successfully
overcome the pandemic situation with efficient and advancement set of logistics works and supply
chain fluency.

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 References
 (n.d.). Retrieved from https://www.bashundharatissue.com/brand-story/
 (n.d.). Retrieved from
https://repositorio.cepal.org/bitstream/handle/11362/46528/1/S2000768_en.pdf
 (2018, july 5th). Retrieved from
https://www.bashundharapapermills.com/video/bashundhara-paper-mills-ltd.-
(documentary-2018)
 Islam, R. (2021, April 21st). Retrieved from
https://www.tbsnews.net/companies/tissue-hygiene-products-float-bashundhara-
paper-239284

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