Term paper
On
SUPPLY CHAIN MANAGEMENT OF PRANGROUP
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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ABSTRACT
Nowadays, supply chain management plays a vital role in the business industry. Supply chain
management involves optimizing industrial operations to increase both speed and efficiency.
Both speed and efficiency are vital to increase service quality and ensure product delivery at
the earliest time. Efficiency also increases the power of the industry to handle its partners in
a structured manner. The FMCG Industry is in high growth in our country. Proper supply
chain management practice is important for FMCG industries of our country because
customers will choose the company that meets their needs fastest. It is also important to get
competitive advantages in the global market. Industries of our country increasingly find that
they must rely on effective supply chains, or networks, to compete globally. Industries now
realize that customer-driven supply chain configuration helps them to participate in achieving
growth.
SUMMARY
PRAN-GROUP says that they have establish supply chain management but the reality they
actually unable to establish the supply chain management truly. PRAN-GROUP has three
wings for managing supply chain they are not integrated, purchase operation and distribution
are the head of their supply chain management wings.
Purchase department have their six wings which are working on six different purchasing
function. Like local purchase, international purchase, raw material purchase, packaging
material purchase, green(local farmer product) purchase, machinery spare parts, stationary
and local emergency thing purchasing.
Operation department working for forecasting and link between demand and production.
Distribution department responsible for managing smooth procurement and uninterrupted
delivery.
The success factor of PRAN-GROUP is reducing cost and uninterrupted delivery as well as
personal vehicle and distribution network, own warehousing labor and transportation allow
PRAN-Group to enjoy competitive advantage in the market.
Only the complication of the PRAN-GROUP is forecasting, due to huge SKU it is not possible
to manage a healthy forecasting. Due to vulnerable forecasting they have huge inventory.
That’s why PRAN-GROUP did not get the proper facility of supply chain management.
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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INTRODUCTION
Fast Moving Consumer Goods (FMCG) goods are commonly named as consumer packaged
goods. Items in this category include all consumables (other than groceries/pulses) people buy
at regular periods. The most common on the list are toilet soaps, detergents, shampoos,
toothpaste, shaving products, shoe polish, packaged foodstuff, household accessories, and
extends to certain electronic goods. These items are meant for daily or frequent consumption
and have a high return. The FMCG Industry is on a high growth curve with the overall demand
expected to multiply over the next decade. The supply chain management reflects those
actions & values responsible for the continuous improvement of the design, development &
management processes of an organization’s supply system, with the objective of improving
its profitability & ensuring its survival, as well as the profitability & survival of its customers
& suppliers.
OBJECTIVE
Supply Chain Management is the practice of managing the movement of products and services
across different processes and locations. It includes the storage and transportation of raw
materials, work-in-process inventory, finished items, and end-to-end order fulfillment from
the point of origin to the point of consumption.
SCM encompasses the planning, design, control, and execution of all business activities
associated with a company’s procurement, production, distribution, and sales order fulfillment
functions. Thus, it involves the administration of supply and demand, sourcing raw materials
and components, manufacturing and assembly, warehousing and inventory tracking, order
processing and management, distribution across all channels, and delivery to the final
customer.
Supply chain managers are responsible for developing effective plans and strategies to ensure
the supply chain’s correct operation. They create well-defined action plans through extensive
analysis and forecasting, which result in improved performance throughout the enterprise.
The Supply Chain Management system is regarded to be the backbone of today’s commercial
organizations. Suppliers who adhere to SCM principles are expected to deliver significantly
more value to customers than those who have not implemented SCM concepts into their
operations. The following are the 7 most important objectives of Supply Chain Management.
1.
2.
3.
4.
5.
6.
7.
To observe the improving of efficiency.
To observe the improving of quality.
To observe the optimizing the transportation and logistics.
How does PRAN-GROUP reducing costs?
How does PRAN-GROUP enhancing customer satisfaction?
How does PRAN-GROUP improving distribution?
How does PRAN-GROUP maintaining better coordination?
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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COMPANY OVERVIEW
PRAN is the largest food-beverage company in Bangladesh and is admired by millions of
people globally. PRAN means life, which stands for the taste of life. Every day PRAN sends
this taste to 145 countries with our numerous agro-food products of 10 different categories,
including snacks, confectionery, dairy, juices, carbonated beverages, mineral water, baked
items, culinary, drinks and biscuits. We’re the largest food-beverage company in Bangladesh
and admired by millions of people globally.
Since the beginning of PRAN in 1981, which works to improve rural livelihood by
contributing to the rural and national economies, creating employment, and exporting.
PRAN has devoted itself to the betterment of society and the environment. That’s why we’re
continuously extending our help to the communities and finding ways to reduce our
environmental footprints to achieve greener earth.
HISTORY
PRAN (Programme for Rural Advancement Nationally)[3] was established in 1981 by retired
Major General Amjad Khan Chowdhury and has become one of the largest food and beverage
brands in Bangladesh.[4][5] PRAN pioneered agribusiness in Bangladesh by providing farmers
with guaranteed prices.[6] PRAN Foods, a subsidiary of the PRAN-RFL Group,[7] produces a
number of agricultural products under the PRAN banner. PRAN established a subsidiary
company in UAE in 2003.[8] In 2008, the company announced plans to open a production
facility in Tripura, India, after the Indian government lifted the ban on direct investment from
Bangladesh in 2007.[1] The PRAN group's exports had reached 10 billion taka by 2016, with
the biggest markets for the company in India, Saudi Arabia, the UAE, Malaysia, and Oman.[9]
The same year the revenue for PRAN exceeded US$500 million.[10] PRAN started exporting
potatoes in March 2016.[11]
In April 2016, PRAN started to export cassava and the first shipment, worth US$3 million,
was sent to New Zealand.[12] PRAN has 80 thousand direct employees and 200 thousand
indirect employees.[13] PRAN exports to over 118 countries.[14] PRAN started exporting
through river route to India from Bangladesh in March 2021.[15]
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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PRAN-GROUP SUPPLY CHAIN MANAGEMENT
PRAN produces a huge number of products and its procurement system is also different. I
am here to concede this study on the supply chain management of PRAN-GROUP.
Purchasing
Purchase department have their six wings which are working on six different purchasing
function.
1.
2.
3.
4.
5.
6.
Local purchase department
International purchase department
Raw material purchase department
Packaging material purchase department
Machinery and spare parts purchase department
Local green (local farmer product) purchase department.
Purchase department play their role by purchasing different thing as per different departmental
needs, basically operation (Production) raise demand by forecasting the necessary and
purchase department purchase the product from the local market, international market and
from local farmer.
Operation
Operation department also another function of PRAN-GROUP which working for forecasting
and link between demand and production.
Distribution
Distribution department responsible for managing smooth procurement and uninterrupted
delivery. The success factor of PRAN-GROUP is reducing cost and uninterrupted delivery as
well as personal vehicle and distribution network, own warehousing labor and transportation
allow PRAN-Group to enjoy competitive advantage in the market. Only the complication of
the PRAN-GROUP is forecasting, due to huge SKU it is not possible to manage a healthy
forecasting. Due to vulnerable forecasting they have huge inventory. That’s why PRANGROUP did not get the proper facility of supply chain management.
Now I am discuss different success factor of PRAN-GROUP which achieved by supply chain
management system.
PRAN-GROUP Improving its efficiency by implementing supply chain management system.
Successfully forecasting and in interrupted delivery improve efficiency.
PRAN-GROUP Improving its Quality by implementing supply chain management system.
Procure quality raw and packaging material enhance its quality. And effective and smooth
delivery by own distribution system improve product quality achieved customer satisfaction.
Own distribution system optimizing the transportation and logistics which reduce cost, and
help to achieve competitive advantage over the different competitor.
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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Own distribution system, warehouse own people help to achieved low cost, effective, quality
delivery and the purchase team procure RM PM with competitive price which reducing costs,
and help to achieve competitive advantage over the different competitor.
Own distribution system deliver the product to the end user with competitive price and quality,
which help to make happy to the customer. By effectively delivery low price quality product
PRAN-GROUP enhancing customer satisfaction?
PRAN-GROUP setup their own distribution network.
Effective horizontal management communication maintaining the better coordination which
is the key success factor of PRAN-GROUP.
COMMENTS
PRAN-GROUP did not get the actual benefit of supply chain management because till now
it’s not integrated. It’s unable to achieve effectiveness for the organization.
PRAN-GROUP face the problem of different forecasting factor which increase the inventory
and make losses money and create unnecessary hazard in warehouse and different production
floor, increase market complain and reduce the profit.
To maintain huge SKU operation can’t able to make actual forecasting, by reducing
unnecessary and low profit SKU it can make better forecasting as well as reduce the inventory
which help to get more profit and make organization more sustainable.
CONCLUSION
Supply Chain Management is a blend of art and science that focuses on how business acquires
the raw materials necessary to build a product or service, manufactures that product or service,
and delivers it to customers. SCM’s primary goal is to keep a firm a float and ultimately drive
it to success. Other objectives of SCM include improving efficiency and quality, minimizing
costs, optimizing delivery and distribution, and providing the best possible experience to
customers. Supply Chain Management is, indeed, the backbone of any business.
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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Website
https://www.pranfoods.net/about
https://www.researchgate.net/publication/236757515_Sociocultural_Environment_for_Entrepreneurship_Development_in_Bangladesh
Reference:
^ Jump up to:a b "Pran to build first foreign plant in India". The Daily Star. 24 January 2008.
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Retrieved 31 March 2017.
4. ^ "Amjad Khan's death anniv observed". Prothom Alo. Archived from the original on 5
February 2017. Retrieved 31 March 2017.
5. ^ Bilkis, Shahana (12 March 2014). "Bangladeshi agro-processed food has good prospect
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6. ^ Sobhan, Rehman (4 October 2010). Challenging the Injustice of Poverty: Agendas for
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1.
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April 2017.
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17. ^ সসসস সসসসস সসসসস সসসসসসসস সসস সসসসস-সসসসসস সস সসস
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18. ^ "PRAN-RFL's four companies receive top VAT payer award". UNB. Retrieved 9 July 2021.
19. ^ "Two companies of PRAN-RFL receive top VAT Payer award". UNB. Retrieved 9 July 2021.
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2021.
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24. ^ "PRAN-RFL bags five national export trophies". UNB. Retrieved 9 July 2021.
Term paper on SUPPLY CHAIN MANAGEMENT OF PRAN-GROUP by Md. Walid-Ur-Rahman
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