5.

1 Supply Chain Management of BPML

A supply chain is a pragmatic integrating approach that entails numerous parties and organizations to
effectively and promptly satisfy customer queries. Manufacturers, suppliers, transporters, distribution
centers, retailers, and even customers are all included, explicitly or implicitly. American Production and
Inventory Control Society (APICS) defines SCM as: “Organizations that successively transform raw
materials into intermediate goods, then to final goods and deliver them to customers.” (Deshmukh and
Mohanty, 1999). Now the supply chain management process is dynamic and has a continuous flow of
goods, money, and information at various phases.

“An external integration of interrelated functions of the firm with its channel members, vendors, and all
third-party logistics service providers who contribute in the flow of goods (raw materials, semi-finished
and finished products) and related information from the point of inception to the point of consumption
with efficiency.” (Agrawal, 2001).

The customer's demand is met at one end of the end-to-end process, and the other terminal is where the
customer's need is fulfilled. At BPML, supply chain management aids in coordinating all the procedures
to complete customer requests.

Figure 1:Supply chain process of BPML

Alternative production methods are considered to produce the ideal quantity at a lower cost. Appropriate
core concepts prompt the procurement order cycle and planning. The prerequisites of manufacturing are
discussed with credible suppliers. The desired item is eventually produced and distributed to the client as
required.

5.2 Value Chain Model

The value chain is " a chain of value-added activities; products pass through the activities in a chain,
gaining value at each stage" (Michael E Porter,1985) The inventory network systems of each association
use a value chain. Every step the item or administration takes through the item life cycle requires
expanding immense value.

Porter's value chain model, which consists of four auxiliary activities and five core ones, can be used as a
standard model. The value chain for the paper manufacturing industry can be represented alternatively by
utilising the concept of operations, which has five main operations and six supporting activities. The
Bashundhara paper mill's value chain will be similar to Porter's, but how some of the activities are used
matters. The statistics for each activity are provided as follows:

Figure 2: Value chain model for BPML

Value Chain - Basic Functions

consolidates the process of adjusting essential raw materials into finished products, including the
distribution of raw materials from suppliers and customer advertising of the final product. They are
combined to create two kinds of products and widely used exercises. The company's completed tasks that
add value to the goods and services are known as item-associated actions.

 Operation Management

Working with and processing raw materials and producing and repairing rolls are related. In addition,
planning, production monitoring, design, assets at production sites, manufacturing or purchasing spare
parts and other necessities for the plant, and fixing activities are also included.

 Inbound Logistics

obtaining the vital raw materials for the paper-making procedures, palletizing and restoring the materials,
distributing them to different manufacturing sites, etc.

 Outbound Logistics

Planning and dispatch, distribution management, transportation, warehousing,

order fulfillment.

 Marketing and Sales

Product, price, place and promotion- 4P management, export, domestic export

and sales, customized sales, pricing policy, contract, CRM and many other

activities.

 Customer Service

Quality Aspects, pre/post-sales communication, issue settlement, etc.

Value Chain - Supporting Activities

These activities do not legitimately contribute to the transformation procedure. However, they facilitate
essential activities in their capacities. For instance :
1. Material Management

✓ Purchase includes a selection of suppliers, receiving purchase requisitions from the plant site, procuring
raw materials, pieces of machinery, consumables and other essentials are ensured to be supplied.

✓ Logistics involves transporting goods and imported items from the port, acquiring port facilities,
handling vessels at the port and related activities.

✓ Vendor Development involves performance rating, monitoring, encouraging and interaction with
existing or new suppliers, tracing, exploring new sources and many other related activities.

✓ Warehouse incorporate stock control, issue of spares and consumables to the different plant site,
disposal of rejected extras and consumables, custody of raw materials and finished products, etc.

2. Human Resource Management

Planning, recruiting, executing, human resource development, management services, CSR, and many
other activities.

3. Technology Development

Research and Development (R&D), quality assurance, process automation, etc.

4. Service Management

Corporate workplaces, vital corporate administration, corporate correspondences, data innovation, etc.

5. Project Management

Construction and venture monitoring for a plant extension, design and engineering for existing or new
plants, project contracts, etc.

Value Chain- Margin

Margin is the contrast between the all-out worth made at various capacities/activities in the value chain
and the summation of expenses incurred by the company to make such values. The organization incurs a
certain cost for completing an incentive for its final merchandise and administration.
5.3 Organogram of BPML SCM Department

Among all the Bangladeshi companies, the Supply Chain Management department of BSRM is one of the
most successful and noteworthy. Below is an illustration of the SCM Department's peak corresponding to
this corporate.

Figure 3: BPML SCM Department Structure

5.4 Supply Chain Drivers of BPML

BPML aims to balance productivity and responsiveness that best supports the company's competitive
strategy. As a result, BPML examines cross-functional factors that affect supply chain performance. The
main goal of establishing the drivers is to acquire the ideal responsiveness at the lowest cost possible,
improving the production network's surplus. Additional budgetary goals include:

The significant drivers of supply chain performance execution comprise of three logistical drivers and
three cross-functional drivers.

Logistical Drivers include

 Facilities
 Inventory
 Transportation

Cross-functional Drivers include

 Information
 Sourcing
 Pricing
5.5 Framework of Supply Chain Management Department of BPML

The following diagram illustrates the structure of the BSRM's supply chain management department,
including its various wings and sub-wings

Figure 4: Framework of Supply Chain Management Department of BPML

One of the most well-maintained and significant supply chain management among emerging Bangladeshi
conglomerates is the supply chain department of BPML. Intending to manage the flow of goods,
information, and funds, this department employs a sizable workforce to carry out various tasks at various
stages effectively and efficiently.
5.6 Key Functional Processes of BPML

Like every other big company ACI and its supply chain management is developed some major functions.
Such as-

 Customer relationship management

 Customer service management
 Demand management
 Order fulfilment
 Procurement
 Manufacturing flow management
 Product development and commercialization etc.

The supply chain and its procurement process are designed to be efficient and very cost-effective.

5.7 Procurement Process

Understanding needs is the first step in the procurement process. The business determines the number of
raw materials needed for production in this initial step. The industry then issues an RFP. Requests for
Proposals (RFPs) are organized ways for businesses to get competitive quotes for the goods and services
they need. They can be a priceless resource for the company in search of fresh business opportunities. The
business then requests bids from various suppliers. It's a well-liked method of choosing suppliers.

Following that, the business chooses its supplier after reviewing the bids. Negotiation and clarification
then start, which is a crucial task. In this step, the contract is finalized, and the company and suppliers
both set the rules and requirements of the deal. Both parties control their communication with one another
after the agreement is reached to ensure that the procedure runs more smoothly. If everything goes
according to plan, the acquisition process is finished and continues to be repeated.

5.8 Outsourcing

Not only are services previously offered internally being outsourced, but also the process of procuring
materials and components. According to this trend, the business will increasingly outsource all other
activities and concentrate on those in the product lifecycle with distinctive properties. This trend has been
particularly noticeable in logistics, where transport, warehousing, and inventory control are increasingly
outsourced to specialists or logistics partners. A combination of local and cultural involvement is also
necessary for supervising this network of partners and suppliers. Therefore, executives must make
strategic decisions at the corporate level, supplier performance must be monitored and controlled, and
managers must best handle daily communications with logistics partners locally.

5.9 Order Fulfilment

For BPML to effectively manage its supply chain, it is essential to fulfilling customer order requirements.
Bringing together the company's manufacturing, logistics, and marketing plans is necessary for effective
order fulfilment. To meet customer needs and lower the total financing to customers, BPML has formed
partnerships with important supply chain participants. The primary goal of BPML is to guarantee that
orders are arranged with sufficient time to fill them. The logistics enable the business to keep track of its
inventory at all times and ensure that the proper volumes are ordered to replenish it.

5.10 Integrated Demand Planning and Forecasting

The company needs to knowledgeable about numerous factors that are related to the demand forecast.
Some of these factors are mentioned below-

 Lead time of product

 Past demand
 Planned advertising
 State of the economy
 Planned price discounts
 Actions that competitors have taken

The forecast of BPML is connected to all planning activities through its supply chain. These include,
among others, purchasing, production planning, and capacity planning. Both information systems and
human resource management have a connection to this. Based on past order trends, BPML created a
separate product forecast. To carry out this integration, a company would form a cross-functional team,
with representatives from each affected function in charge of demand forecasting. To collaborate to create
a forecast, members of the various supply chains would be an even better idea. The supply chain
management at BPML employs a variety of forecasting techniques that can be divided into three
categories:

 Qualitative:

The majority of qualitative forecasting techniques are subjective and rely on human judgment. They are
most useful when there is a need for more historical data or when industry professionals have information
about the market that could influence the forecast.
  Time series:

Time-series forecasting techniques make predictions based on historical demand. They are predicated on
the idea that historical demand patterns are a reliable predictor of future trends. These techniques work
best when the fundamental demand pattern stays the same year to year. These approaches are the simplest
to use and make for a solid foundation for a demand forecast.

 Simulation:

Simulation forecasting techniques mimic the consumer, creating a demand for a forecast. To answer
questions like What will be the impact of a price promotion, a company can use simulation in conjunction
with time-series and informal methods. What effect would a rival opening a store nearby have? Airlines
simulate customer purchasing behaviour to forecast demand for higher-fare seats when no seats are
available at lower fares.
5.11 Distribution

Order planning for supply chain management is done in business administration using the distribution
resource planning (DRP) of BPML. DRP allows BPML users to configure specific inventory control
parameters and determine time-phased inventory needs. The BPML's distribution resource planning offers
a framework for figuring out whether inventory needs to be topped off by:

 Integrating manufacturing and demand management with market requirements

 Production planning concerning current inventory levels and demand projections
 Matching the supply of raw materials to manufacturing needs and the collection of products to
customers.

BPML needs the following information to help the supply chain management:

 Demand in a future period

 Scheduled receipt at the beginning of a certain period

 On-hand inventory at the beginning of a certain period

 Safety stock requirement

BPML must set up a distribution network before using DRP for planning and deployment. The actions
below are required for BPML to perform a DRP run:
  Create a distribution network, including lead times and quota arrangements.
 Create MRP parameters for each material in the material master record.

5.12 Distribution Network

BPML's distribution is based on their requirements. It symbolizes the partnership between suppliers and
distribution hubs. A material-independent distribution network is maintained graphically by the network.
It outlines multiple supply sources for a single distribution centre. Additionally, it shows graphical icons
for node types, manufacturing facilities, central warehouses, and customer distribution centres. The
BPML distribution network consists of the following:

 Supply priority

 Quota arrangement details

 Maximum quantity

 Planned delivery time

 Current inventory and in transit situation

5.13 Warehouse Operations

Warehouse management plays an important role in business

operations regarding lowering costs and expenses. In the
event of ideal office and storage space with all practical
amenities at the corporate level, a decrease in labour costs,
escorting authority with on-time delivery, loading and
unloading facilities with the appropriate area, a location for a
service station, a stock management system, etc.

BPML has a warehouse management system (WMS) to

oversee warehouse operations. It assists the business in

Figure 5: Warehouse operations of BPML

carrying out tasks like inventory control, tracking, and stock item location. They have a complete work
unit to run the software and manage warehouse operations.

Inbound processes:

 Receiving: Trucks arrive at the warehouse, and the receiving team unloads the freight
 Stocking
 Transportation of goods
 The orderly receipt of all materials coming to the warehouse

Outbound processes:

 Assuring that the necessary material is available for shipment,

 planning the order picking and shipment activity
 Verifying the shipment's arrival at the destination.

5.14 Production Logistics

One of a company's key functions is logistics. Employees can use performance-related and cost-related
goals to categorize the main dreams of logistics. High due date reliability, quick delivery, low inventory
levels, and capacity utilization are a few examples. Targets are traded off when decisions are being made.

The word logistics refers to company-wide logistical procedures. Each machine and workstation receives
the appropriate materials at the proper time, thanks to BPML's logistics. Transport is not the issue; the
issue is streamlining and managing the flow of value-adding processes while removing non-value-adding
processes. They have energized their logistics system by automating their logistics automation system
(LAS), which guarantees efficient workflow and value to the customer. Some examples of automation
are-

 Automated cranes
  Conveyors
 Industrial robots
 Automated storage and retrieval system
 Wireless communication
 Integration software
 Operation control software
 Business control software etc.

5.15 Timing Strategies

Lead time has the same interpretation as supply chain management in BPML's manufacturing
environment, but it also considers the time needed to delay receiving parts from the supplier. The
shipping time is taken into account because a corporation needs to know when the components will be
accessible so that it can prepare them for manufacturing after receiving them. The business takes a lot of
time to unload, check, and move a product from a truck into storage. When the company uses limited
manufacturing resources or knows the duration of its internal processes, it is crucial for supply chain
management in just-in-time manufacturing.

The main benefits of JIT manufacturing in BPML include the following:

 Reduced setup time. Cutting setup time allows the company to reduce or eliminate inventory for
“changeover “time. The tool used here is SMED (Single –minute exchange of dies).
  The flow of goods from warehouse to shelves improves flow and management.
 Employees with multiple skills are used more efficiently. Having employees trained to work on
different parts of the process allows companies to move workers where needed.
 Production scheduling and work hour consistency synchronized with demand. If there is no
demand for a product at the time, it is not made. This saves the company money, either by not
having to pay to work overtime or by having them focus on other work and participate in training.
 Minimizes storage space needed.
 Smaller chance of inventory breaking /expiring

5.16 Supply Chain Management Architectures of BPML

We present a software component architecture for managing the supply chain across dynamic
organizational networkers. Existing enterprise resource planning (ERP), warehouse management (WMS),
and transportation management systems handle the local administration in the architecture (TMS). Supply
chain engines operate the architectures' integral management (SCES). On top of ERP, warehouse
management systems, and TMS, these software elements make up a supply chain management system
layer. The SCES offer the knowledge and adaptability necessary to control dynamic supply chains. The
technology for components, interfaces, and services, as available in Java Enterprises, CORBM, and Web
Services, can be used to implement the software component architecture.

Executives must improve basic ERP, WMS, and TMS (including EDI interfaces) for supply chain
management throughout a dynamic organization network. The supply chain management architecture
requires additional systems to coordinate logistics processes dispersed across various organizations. The
supply chain management architecture system adds software components to the ERP, warehouse
management system, and TMS to add other intelligence. However, the component structure allows for the
necessary flexibility.

Across dynamic organizational networks, we present a software component architecture for the supply
chain management. Existing enterprise resource planning ERP systems, warehouse management systems
WMS, and transportation management systems TMS are used to manage locks in the architecture.

5.17 Software Components

The software component has interfaces for

communication in the organization and across the
supply chain. The supply chain engines can be
equipped with the following interfaces:

 System interfaces to other supply chain

engines. For example, interfaces
between distribution management
engines support integral distribution
management.
 System interfaces to local information
systems. For example, interfaces
between the inventory’s components,
interfaces and services implementation
technology, are needed for developing and deploying the software components in the supply
chain management architecture.

The technology used for the implementation of the supply chain includes application components,
interfaces of the members, and common services for the features of the supply chain engines are the
application components, which can be distributed.
Distribution Software:

Manages all aspects of business, including order processing, inventory control, accounting, customer
service, supply chain management, sales, and customer relationship management. By reducing stockouts
while preventing overstocking, distribution software aids businesses in managing internal and external
resources effectively.

Manufacturing Simulation Software:

By adjusting resource availability and capacity, lot sizes, production demand, queuing rules, etc.,
manufacturing software products are used to model, analyze, and visualize a factory's performance.
Products for factory simulation allow for the statistical representation of systems dynamics and
uncertainty. They offer resources for experiment planning and result in analysis. Applications include
simulations of assembly lines, cells, material handling operations, packaging, paint shops, plants, and
warehouses, among others.

Factory Simulation Software Helps with the Following Activities:

 Capital equipment justification.

 Effects of downtimes and setup times.
 Flexible automation decisions.
 Lean manufacturing applications.
 Make versus buy decision.
 Material handling equipment selection.
 Human resources requirement analysis.

Work orders and bills of materials are primarily produced by BPML using inventory management
software. Making it easier for manufacturers to quickly put together the Tools and components they need
to complete particular tasks speed up the manufacturing process. Bills of materials and multilevel work
orders, which have a timeline, can be created by manufacturers for more complicated manufacturing jobs.

To create a finished product, processes must be carried out in the right order. Inventory management
software can create additional charges for tracking assets, receiving new inventions, and other tasks that
companies in different industries use.
References