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SCM-310-Final Project (MHC) PDF
SCM-310-Final Project (MHC) PDF
Submitted To
Meshbaul Hassan Chowdhury (MHC)
Department of management
North South University
Submitted by
NAME ID
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Executive Summary
Agora is one of the big superstore in Bangladesh. Bangladesh entered to the period of grocery
store around the year of 2001 with Agora starting as a first comer in Bangladesh ensuring with
international quality. It is an organization having 16 outlets all over the Dhaka city. It purchases
item from the leading supplier and pitches it to the clients through their own physical outlets. As
it doesn't produce its own particular item that is the reason it has no generation plant or
something like that. It has a stockroom for their market to keep safety stock to meet the customer
demand. With the assistance of stock supervisor, we observed the stockroom. We became more
acquainted with how they deal with the inventories, their operations techniques, and their stock
administration forms quickly. The administrator clarified the procedures they carry out to
maintain the stocks. We have investigated the supply chain procedures as we can and steps they
carry out in all circumstances. In this report we have talked about our insights of Agora’s safety
stock. We additionally incorporate a few suggestions in view of our findings.
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Contents
Executive Summary .................................................................................................................................... 2
Chapter- 1 Company Overview: ................................................................................................................ 5
1.1. About Rahimafrooz ............................................................................................................................ 5
1.2. About Agora....................................................................................................................................... 5
Chapter- 2 Supply chain management ..............................................................................................6
2.1. Agora’s top suppliers: ........................................................................................................................ 6
2.1.1. Supply chain agricultural product: .............................................................................................. 7
2.1.2. Supply chain of consumer goods: ............................................................................................... 7
2.1.3. Supply chain of imported goods ................................................................................................. 7
2.1.4. Supply chain of Private Brands:.................................................................................................. 8
2.2. The way they maintain good relationship with their channel partners: ............................................. 8
2.2.1 Channel partner: ........................................................................................................................... 8
2.2.2 Make them self-available: ............................................................................................................ 9
2.2.3 Strong marketing force: ............................................................................................................... 9
2.2.4. Best Practices: ............................................................................................................................. 9
2.2.5. Reduce channel conflict: ............................................................................................................. 9
2.3. The way Agora manage their bullwhip effect .................................................................................. 10
2.3.1. Streamline supply chain ............................................................................................................ 10
2.3.2. Advance stock administration ................................................................................................... 10
2.3.3. Limit deals and limits ................................................................................................................ 10
2.3.4. Keep up reliable, littler request sizes ........................................................................................ 11
Chapter-3 Logistics system and relationship.......................................................................................... 11
3.1. The kind of logistics channel they maintain and the way they maintain: ........................................ 11
3.2. Logistic Networks ............................................................................................................................ 12
3.3. The way they maintain or manage order cycle: ............................................................................... 12
3.3.1. Reduce travel time .................................................................................................................... 12
3.3.2. Shift resources around the facility to the areas of the most activity ......................................... 13
Chapter- 4 Transportation ....................................................................................................................... 13
4.1 Transportation of Agricultural product ............................................................................................. 13
4.2. Transportation of consumer goods ................................................................................................... 14
4.3. Imported goods ................................................................................................................................ 14
4.4. Directly import ................................................................................................................................. 14
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Rahimafrooz was born in 1954 when Late Mr. AC Abdur Rahim founded a small trading
company and paved the way for making of one of today’s leading Bangladeshi Business
conglomerates. Over the decades Rahimafrooz has grown in size, scale and diversity. Group
activities are coordinated from Rahimafrooz Corporate Office (RACO). The Group has eight
Strategic Business (SBUs), a few other business ventures and non-profit social enterprise.
Rahimafrooz have 4 sister concerns - Storage Power, Automotive & Electronics, Energy &
Retail. Rahimafrooz Superstores Ltd. (RSL) made a breakthrough in Bangladesh by launching
Agora the first modern Retail chain in 2001. Agora is endeavoring to fulfill the everyday
shopping needs of our guests through great price, right assortment, best quality and best service.
Innovating being into Agora DNA, many “first” followed up, first to be certified ISO 9001:2008,
first to be certified ISO 22000:2009, first to make a memorandum of understanding (MOU) with
the Bangladesh Council of Scientific and Industrial Research (BCSIR). It was also the first to
have an agreement with the Bangladesh Livestock Research Institute (BLRI), etc. Apart from
quality and hygiene, Agora puts our guests at the heart of everything we do and strives at any
time to bring the best price, assortment and service to all our customers in each of our stores.
The superstores are open from 9am to 8pm every day. Rush of customers is experienced in the
morning and evening. Agora superstores are currently focused in food retailing, ranging from a
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wide variety of fresh vegetables, fruits, meat and fish to grocery, bakery, dairy, personal and
homemade products. Agora provides its customers with guaranteed quality and freshness. It
carries more than 30,000 varieties of products and has plans to expand its product portfolio to
carry other ranges of consumer products in the coming year. Other supermarket brands have
emerged but Agora continues to be the leader and trendsetter. The products are procured under
the direct supervision of its officials who maintain strict procurement and marketing standards.
Products on the shelves are regularly monitored for expiry dates. ("Economies of Scope Definition -
What is Economies of Scope", 2019)
The way Agora’s branch growing in the city which is much unexpected and that reveals it
may go further in the future. Growth is also far better than other super store in
Bangladesh.
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distributed through the Agora’s own vehicles to its several outlets. No product directly comes to
the outlets without the hand of warehouse. These are the process of supply chain of Agora:
Supplier
Fish producer Vegetable Producer Vegetable Producer Dairy Producer Apparel Producer
Warehouse
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Customer Outlet
In Bangladesh there are many import houses that import goods from abroad and sell it to the
buyer like Janata Foods, Sorwar & Brothers etc. Meena Bazar purchases products from this
house. Here the importer is the import house not Meena Bazar. This is the basic difference
between the directly import and purchase from the import house.
2.2. The way they maintain good relationship with their channel partners:
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capital and even technology all are includes in this program. A great channel partner strategy can
help a business to establish a presence in a new market. It helps a company to promote their
selling and marketing business.
So those, Agora also do the same things to improve their business. In this part they focuse some
point to continue their business properly and maintain a good relationship too their channel
partner. The point is:
Another side Agora provide to their clients to Incentives tool. Incentives are a motivational tool.
It helps them to not only reward sales targets but also the quality of sales. By monitoring the
sales process and the service levels they provide to their clients rewarding excellent customer
service will result in client retention as well as getting to know their client base better.
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Lastly Agora looks back at their previous year. Like any good New Year’s resolution, they
should reflect on what they can improve on from the year before. Agora can improve their goods
easily. These are the stapes they follow and maintain a good relationship with their channel
partners.
These are a doable thing which needs to do for reduce the bullwhip effect:
1. Reducing uncertainty 2. Reduce variability 3. Lead time reduction 4. Strategic partnership and
planning 5. Advanced Information Technology
Agora super shop manages their information lacking in their business very exclusive way:
2.3.1. Streamline supply chain – Agora first lessening the quantity of providers and the
quantity of levels in their gracefully chain can encourage better correspondence across groups
and diminishing the swing that makes the bullwhip impact. Using flexibly chain innovation helps
connect together all parts of the gracefully chain and combine correspondence channels.
2.3.2. Advance stock administration –then they try to Keep track of the stock levels, requests,
and request with stock administration programming prompts increasingly precise requesting
from providers, diminishing the bullwhip impact.
2.3.3. Limit deals and limits – Then they maintain a consistent value point in any event, during
market changes diminishes the bullwhip impact by empowering an ordinary stream of client
request. Dress and extras business ever lane decreases the bullwhip impact by infrequently
holding deals or giving limits, rather selecting to keep costs low all year with a keen direct-to-
customer model.
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2.3.4. Keep up reliable, littler request sizes –Lastly offering mass limits may draw in clients
however it additionally superfluously expands stock levels and amplifies the bullwhip impact.
Urging orders as per client need rather than mass limits mitigates the bullwhip impact.
By forecasting demand, they order their suppliers. Then the suppliers deliver the products to
them. Agora is well known for selling the daily needed products. So, they have an idea for how
many products they need for a particular period.
Agora logistics process is not a large process. Basically, their logistic process largely based on
warehouse. Agora has a large warehouse. They store their entire products from different
manufacturer in their warehouse. There is no intermediary between warehouse of agora and the
manufacturing company. Any products of agora do not come directly to the outlets without the
hand of warehouse.
Transportation cost totally handles by manufacturing company through the entire store process in
the warehouse. Then they distribute the products from the warehouse to several outlets by their
own vehicles.
Agora kept their waiting line management system very simply. They sell almost every type of
groceries and daily needed products. For simplification, they have different departments for each
product which helps to customer or make shopping very easy.
They provide trollies to their customer to carry their desire products. Agora has several counters
in their every outlet and each counter has one representatives. Who deals with bills and quickly
checks the products and start to packet the products. For a business line management is a very
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important system and agora is doing a great work in their line management systems. For this
effectiveness it saves a lot of times.
BACK TO THE
ORDER PLACEMENT
SUPPLIER
PRODUCT
INSPECTIO LOW DEFECT RATE HIGH DEFECT
ORDER ARRIVAL RATE
N
SCRAP/DISPOSAL CUSTOMER
3.3.1. Reduce travel time - Perhaps the easiest ways that Agora abbreviates the process of
duration which is to diminish the separation headed out to finish an assignment. Since time
invested strolling is energy not spent on other, esteem including undertakings, just doing this can
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be a big effect to their proficiency and profitability. Travel is the biggest segment all together
picking process duration. In the event that you can eliminate the separation voyaged, through that
they can essentially lessen the general process duration.
3.3.2. Shift resources around the facility to the areas of the most activity - It makes sense
that resources should be placed where they are needed within their facility, but this is often
overlooked. By grouping products near the areas with which they will be used, you can cut down
on a lot of unnecessary travel time within your facility while also reducing the risk of accidents
that can happen during transport.
Resource location can especially be a problem when smaller operations grow and add new
processes or departments: As the business grows and new processes are implemented, the
placement of resources must also be adjusted to reduce inefficiencies. Whenever a new process,
product, or workflow is implemented, it is recommended that you evaluate the placement of your
resources to correct issues before they become major headaches.
Chapter- 4 Transportation
Agora owns their transportation system for only agricultural product. The supplier or the
manufacturers are responsible to deliver the product. The supplier or manufacturer delivers
product and supplies through their own transport. After delivering, manufacturer charged for the
transportation cost to the Agora shop. And the manufacturer who mainly delivers the huge
amount of product in a month, they usually give discount on transportation cost.
The transportation cost is completely conceived by the manufacturing organization. At that point,
the put-away items are conveyed through the Agora’s possesses vehicles to its few outlets. There
is no mediator between the distribution center of Agora and manufacturing organizations like
Unilever. No item straightforwardly goes to the outlet without the hand of the distribution center.
to month based on Agora. The transportation costs are taken by the producer. All the items are
first to come to the warehouse. At that point, these convey to outlets.
1. Directly import
2. Purchase from importer
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The benefits of third-party warehousing and distribution services for Agora are many. Like-
• Avoid the related expenses and dangers of claiming and dealing with a distribution center
Chapter- 5 Warehousing
Basically their supply chain is totally warehouse-based. Agora has a large warehouse. At first
they store the entire product from different manufacturer in their warehouse. The transportation
cost is totally born by the manufacturing company. Then the stored products are distributed
through the Agora’s own vehicles to its several outlets. There is no intermediary between
warehouse of Agora and manufacturing company like Unilever. No product directly comes to the
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outlet without the hand of warehouse. These are the supply chain of Agora at a glance. Now the
product wise supply chain explanation of Agora.
Perishable products:
Meat/ beef
Vegetables
Fruits
Fishes
Household items
Cosmetics
Personal care
Their administration is too sufficiently quick to fulfill the bustling clients who come to shop in their tight
timetable. They are worried about the way that they need to give all that you need under one rooftop.
Individuals are extremely worried about the items they are purchasing. Furthermore, marketplace places
quality in its top need. Items don't contain unsafe synthetic substances however there are numerous
debates in paper. Indeed, even they begin selling mango minimal late in the season in the wake of having
immense misfortune, since they need to serve the visitors with concoction free organic products. Be that
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as it may, items are costly contrasted with other neighborhood markets. Agora has warehouse maintaining
system it is centralized more likely other retailer shop. Having different product line they try to follow
some techniques t maintain the smooth sell service. The Company settles on week by week and day by
day choice in regards to the tasks based individual client orders. It includes designation of the singular
requests to stock or creation division with due dates, age of pick records, distribution of requests to
shipment and so forth.
They prefer good amount of safety stock for regular goods. And for perishable goods, they maintain
everyday supply to meet the demands.
They increase approximately 5% to 10% buying capacity every year. It is based on the market condition.
They conduct survey on consumer market to increase product variety and improving product designs. For
checking forecasting error, they use mean standard deviation measurement method. Logistics system
helps Agora in warehousing system also.
5.3. How long they keep their inventories & reason behind it
We couldn’t visit the super shop but then again we could identify few of the inventory related concept and
industrial logistics which Agora is using.
We found some of the concepts after interviewed with the employees and manager through phone call.
There are some logistics give them some edge and they also create extra value to them. Here we are going
to discuss some of the concepts explosively.
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any products, they collect their products from their well-established suppliers who are dedicated to deliver
the best products.
By forecasting demand, they order their suppliers. Then the suppliers deliver the products to them. Agora
is well known for selling the daily needed products. So, they have an idea for how many products they
need for a particular period.
Agora logistics process is not a large process. On the other hand their logistics process largely based on
warehouse. Agora has a large warehouse. They store their entire products from different manufacturer in
their warehouse. There is no intermediary between warehouse of agora and the manufacturing company.
Any products of agora do not come directly to the outlets without the hand of warehouse.
Transportation cost totally handled by manufacturing company through the entire store process in the
warehouse. Then they distribute the products from the warehouse to several outlets by their own vehicles.
Agora kept their waiting line management system very simply. They sell almost every type of groceries
and daily needed products. For simplification, they have different departments for each product which
helps to customer or make shopping very easy.
They provide trollies to their customer to carry their desire products. Agora has several counters in their
every outlet and each counter has one representatives. Who deals with bills and quickly checks the
products and start to packet the products. For a business line management is a very important system and
agora is doing a great work in their line management systems. For this effectiveness it saves a lot of
times.
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Chapter- 6 Recommendations
Recently a survey has been made on agora where most of the customer says failing to
accumulate more customer on their outlets due to the less advertising effort. If they are not able
to solve this issue it causes losing customer. Even it is seen that when myself personally
observed agora made me embarrass that perishable items seem like a very heavy cost comparing
with the local market trend. The number of staff should be increased so that customer doesn’t
need to spend enough time on it. They should arrange their product in such a way that buyer can
easily get the product so maintaining the systematically for reducing time consumption. Agora
must focus on the quality of the goods so that they can meet the customer demand at the same
time they need to take step on reducing cost of warehouse on the basis of supply chain
management. There are some other recommendation like, updating software, Responsiveness,
Faster work execution and more marketing.
Public Square is as yet not having the option to oblige enough clients. This is a general
perspective on the clients overviewed, over half recommending an expansion. Except if
this issue is settled rapidly, the contenders of the store may remove those "unsatisfied"
clients from Agora.
The expenses of most perishables are exceptionally high contrasted with the general
pattern of the market. Regardless of how the promoting supervisor attempts to clarify
their explanations for this significant expense the clients would perpetually in general
move the sources that give them at a lesser cost in the event that they don't feel that the
values they are paying merits the comfort.
The quantity of staff at the store ought to be expanded on the grounds that the client feels
that they invest more energy to pay their shopping. This might be a wellspring of
increasingly advantageous of the client.
Marketplace must orchestrate their item as a way that clients can without much of a
stretch buy a wide range of items at a brief timeframe, on the grounds that most clients
stay occupied so keep up their items with methodically for decreasing the time utilization.
Public Square should build the predominant client assistance by orchestrating best quality
great Environment giving limits and putting the helpful outlets for clients Home occupant
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Conclusion
Marketplace's principle idea relies on its capacity to address the issues of a further developed
society where the working spouse likes to make at-a-time acquisition of day by day needs short
of what one rooftop. Structure a cautious investigation of the thoughts and showcasing ideas at
work in the activity of Agora, it has been conceivable to acquire an understanding to the basic
advertising rehearses embraced by such retail locations. In a profoundly unpredictable business
condition the mission for greatness doesn't end without any problem. By holding fast to
appropriate showcasing methodologies and putting its objective market in highest need, Agora
has had the option to edge towards intensity with not many considerable adversaries to challenge
its current position Evidently, by goodness of its top notch" affirmation, arrangement of a wide
variety of nearby and remote items, and a bit of extravagance to engage the brain of customers,
Agora has had the option to set up itself as a store that bends over backward to oblige consumer
loyalty.
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Bibliography:
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