Supply Chain Management Practice

in
Elite Paint

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Prepared By

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Person with whom we contacted

Mr. Asif Iqbal

(Regional Head)
Elite Paint
Chittagong Office

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Company At a Glance
 Founder: Late Mr. Serajuddin Ahmed
 Year of Establishment: 1952
 Yearly Sales Volume: about TK 60 crore
 Number of employee at Chittagong
office: 57

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Product of Elite Paint
Products are differentiated in following categories
1. Decorative
2. Industrial
3. Marine
4. Special Product
5. Thinners

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Price Determination
Generally Elite paint follows cost based
pricing method. After calculation of the
total manufacturing cost (Direct & Indirect
RM cost, Direct & Indirect Labor cost and
Manufacturing overhead cost) and adds
20% GP to get the price point of the
product.

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Raw materials for
manufacturing
Raw materials can be divided in five main
categories.
1- Pigment
2- Additives
3- Thinner
4- Extender
5- Color Solutions

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Raw materials for
manufacturing
 Important Raw material used in Elite Paint

· Titanium Dioxide
· Yellow oxide
· Chrome Pigment
· Chalk
· Soap Stone
· Mica

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Paint Manufacturing Process

 Mixing
 Stirring
 Gumping
 Thinning
 Quality Assurance
 Packing
 Dispatch & Delivery

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SCM Practice in Elite Paint
 Supply chain management in Elite Paint
is a cross-function approach including
managing the movement of raw
materials into an organization, certain
aspects of the internal processing of
materials into finished goods, and the
movement of finished goods out of the
organization and toward the end-
consumer.

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SCM Practice in Elite Paint

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Components of Elite Paint’s SCM

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Procurement Process

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Raw material & machineries
suppliers
 American Enterprises Pvt. Ltd. - India
 Lucky Trade International- Dhaka
 Active fine chemical Ltd.- Dhaka
 Radiant Paints & Chemical Industries
Ltd.- Chittagong
 Hexagon Chemical Industries Ltd -
Chittagong

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Order processing system

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 Distribution Coverage

Company Urban Semi Rural National

urban
Elite Paint 37.4% 28.5% 15.2% 31.6%
&
Chemical
Industries
Limited

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Production planning

 Production planning includes procurement

and delivery of raw materials from suppliers
to production facilities.

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 Warehousing

 Warehouse management systems of elite

paint are committed for minimizing
inventory, reducing order costs, and
locating products for shipment.

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 PSI Planning in inventory and
manufacturing

 PSI planning begins with a forecast of

future demand that is meshed against
current and targeted inventory levels to
determine a desired level of new
production.

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Information Technology

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ERP software adopted by Elite
Paint

 Currently Elite paint is not using any

ERP software but they are going to
introduce in there system SAGE PFW
as their ERP software.

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Major benefits of SCM of Elite
Paint
 Increase revenue enhancement
possibility
 Reduce cost
 Gain expertise on risk management
 Helps to focus on working capital
 Helps in demand forecasting
 Assist in gathering and analysis of data.

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Major benefits of SCM of Elite
Paint
 Increase production capability
 Increase communication between
producer, supplier and consumer.
 Helps in minimizing inventory, reducing
order cost, locating products for
shipment and
 Reduce transportation cost.

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Recommendation

 The elite paint should immediately

implement ERP software.
 They should have clear plan about minimize
inventory and transportation cost.
 They should have take decision about what
type of inventory they should follow.
 They should increase manpower in supply
chain department.

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Conclusion

 Today's business climate has rapidly

changed and has become more
competitive as ever in nature. Supply
chain management (SCM) has allowed
company to rethink their entire operation
and restructure it so that they can focus
on its core competencies and outsource
processes that are not within the core
competencies of the company.

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THANK YOU

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