Supply Chain Activities Essay Sample

Superstore or ace market is now a common topographic point for the metropolis people of Bangladesh. Several factors are working to catch the attractive force of the consumers to the superstores. Discounting. offering better service. dependable monetary value. good environment make the consumers mind to travel at that place. On the other manus the pecuniary value of this industry is turning up in our economic system. Lots of people are acquiring involved with this industry doing their unrecorded out of unemployment. In this assignment we are assigned to arouse the “Factors impacting on the outgrowth of supermarket in Bangladesh: A survey on Agora” . We have tried our best to transport out our mission. We have got some factors so explained themselves harmonizing to the theories. We made a study on 200 respondents to cognize the existent scenario of this industry. The functionaries of Agora were asked to give their positions in this assignment.

Overall thought of the supermarket industry of our economic system:
The term ace market is non common to the consumers of Bangladesh. In 1990s Agoras make their origin in this industry a sister concern of Rahimafrooz. Since so with a strong 15-20 per cent one-year gross revenues growing. about 30 companies with more than 400 mercantile establishments have already made raid into the industry. Before the beginning this tendency people were used to travel to the traditional bazar called Kacha Bazaar. They were used to dicker with the Sellerss they needed to look into the merchandises quality and it was slightly hassle full activity. When the supermarket set out their concern in this state things are traveling to alter. Now-a-days people can purchase their merchandise at any clip from supermarket without fusss even they can order over online and acquire their merchandise place. They could acquire assortments of things. all under the same roof. at a monetary value that is non excessively much more than the usual Kacha Bazaar monetary value.

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Peoples are coming to the supermarkets with enthusiasm for that ground the current participants are taking enterprises to spread out their kingdom over the state. Supermarket industry in our state is in primary degree. because merely the metropolis inhabitants can acquire the services of these markets. But things are altering drastically. More mercantile establishments are being opened to the new topographic points to run into the turning demand of the clients. Harmonizing to the super shop employees. hassle-free shopping environment. hygienic trade goods. fresh veggies. meat and fish at the supermarkets are the affair of acquiring the attending of the clients.

The supermarket biggies have attempted the monolithic enlargement thrust to pull the shoppers. who still depend on unplanned moisture markets to purchase their day-to-day necessities. In this metropolis the first superstore was established by Rahimafooz named Agora. Agora is a ace store that offers a broad assortment of nutrient and family ware. It has adequate infinite to acquire all the necessary merchandises and has greater sum of merchandises than any other traditional Grocery store. Agora comprises meat. green goods. dairy and baked goods sections along with shelf infinite reserved for canned and packaged goods every bit good as for assorted nonfood points such as family cleaners. pharmaceutics merchandises. and favored supplies. Agora is supplying the services to the clients but there are complains that they charge high monetary value for their merchandise. But the functionaries of Agora claim the when the affair of quality comes in forepart so the clients will recognize that the monetary value is equal. The mercantile establishments of Agora are found in different countries of the metropolis which suggests its distinction scheme.

Nandan Megashop. Meena Bazar and Shawpno are other three ace stores of the metropolis that focus on distinction scheme. They try to supply quality merchandises to the consumers and as a consequence the monetary value charged is a bit high. Shwapno. a comparatively new participant in the market. focuses on a different scheme. It claims that it offers “Everyday Low Price” policy to consumers and believes that in this manner they will be able to pull important market portion within a short span of clip.

As we have made our assignment on Agora so lets tell about Agora:

In 2001. Niaz Rahim the boy of late A. C. Abdur Rahim the laminitis of Rahimafrooz initiated Rahimafrooz Superstores Limited ( RSL ) and launched Agora – the first of all time retail concatenation in Bangladesh. Agora changed the life styles of its consumers by supplying cleaner and greater services to the clients. Agora’s focal point on merchandise freshness and quality that helped Agora to derive the believe of clients.

It has worked in tandem with the Bangladesh Standards and Testing Institute ( BSTI ) and the Food and Sanitary Division to foreground the importance of nutrient safety and freshness in spoilables and non-perishables likewise. Agora established the pattern of stabilising monetary values of nutrient necessities during critical months. In a state that is fraught by high fluctuations in the monetary values of nutrient – peculiarly during the month of Ramadan – Agora has set the illustration of working with its providers to maintain monetary values of rice. sugar. lentils. oil and other trade goods stable. At any point in clip. there are about 20. 000 different merchandises available at Agora. Other supermarkets in the state have followed suit and given the industry increased credibleness in the eyes of consumers and authorities likewise. ( ‘Brand Success narrative of AGORA Rahimafrooz Superstores Ltd”…http: //www. asiaretailcongress. com/ARC % 2710-11/Niaz % 20Rahim. hypertext markup language )

Contribution of Supermarket in our economic system:

The ace market industry is emerging sector in our economic system. every twelvemonth it keeps its part in our economic system. Every twelvemonth authorities receives around tk30 crore through revenue enhancements and VAT. If authorities can take proper enterprises and give proper support tot this industry so it may be the 2nd largest lending sector in our economic system. The supermarket industry trades with around Tk 15. 000 crore concerns ( gross revenues and purchasing ) per twelvemonth making over 10. 000 occupations.

Presently. two per centum Bangladeshis consumers do prefer shopping from supermarkets while in neighbouring India. five per centum shoppers go to supermarkets. the enterpriser said. The highest 18 per centum consumers in the Maldives and 14 per centum in Sri Lanka go to supermarkets for shopping ( hypertext transfer protocol: //news. priyo. com/business/2012/01/24/supermarket-sector-contributes-45894. hypertext markup language ) Harmonizing to the analysts. the concatenation supermarket sector will turn to Tk 20. 000 crore by 2021. with the income growing of the population. And annual growing of about 30 per centum that is promising growing for this sector. The growing of supermarkets is linked with the growing of Bangladesh that aspires to be a middle-income state by 2021. Now net gross revenues value of 400 mercantile establishments of supermarkets across the state is tk15 billion and the sector employs 40 per centum of the entire employment which is 10 million people.

Harmonizing to the BSOA ( Bangladesh Superstores Owners Association ) information at present the retail market which is deserving about tk 747. 50 billion is turning at an one-year rate of 14 per centum will make 1307. 38 billion by 2015 and tk 3027. 25 billion by 2021. On the other manus the super market worth about Tk 172. 5 billion will make Tk 756. 8 billion by 2015 and Tk206. 50 billion by 2021. And the supermarket industry has a huge possibility to turn up because the supermarkets are providing merely 2. 00 per centum of the retail markets of the state and with the growing of economic system the members of supermarkets would be 1000 and many enterpriser would come frontward to setup rearward linkages like packaging and direct linkages.

Researching bing channels of supermarket with members:
Product Categories of Agora

* Beverage

* Fish

* Fruit

* Meat

* Vegetable

* Confectionary

* Baby merchandises

* Basic Households

* Paper accoutrements
By and large in instance of drink points Agora straight link with the local company such as Tamani drink delivers the coca Cola & A ; Transcom drink straight supply the Pepsi Cola at Agora. On the other manus in Agora they have some fixed providers who do provide the perishable merchandises such as fruits. veggies. fish. and meat etc & A ; Rarely Agora collects the merchandise straight from the field or the fermar. In instance of fruits Agora links with the local agent who do purchase from the importers & A ; provide the Agora through batch size at Badamtaly country in Dhaka. Furthermore in instance of babe attention merchandises & A ; cosmetics they do frequently straight communicate with the female parent company like that merchandises of Unilever are delivered from the Unilever Company & A ; sometimes they deal with the importers. Equally good as Agora collects their day-to-day necessary family merchandises from the local market & A ; sometimes from the importers. All procedure in a supply concatenation autumn into two classs depending on the timing of their executing relation to stop client demand. With push procedure. executing is initiated in response to a client orders. Pull procedure may besides mention to as reactive procedure. Let’s see the push and pull boundary of Agora.

Customer

Push /Pull boundary

Push scheme
Agoras

Pull scheme

Third party / Mother Company

Root degree Supplier

The supply concatenation activities of Agora is a sequence of procedures and flows that take topographic point within and between different phases and combined to make full a client demand for a merchandise. Let’s have a expression of rhythm position of supply concatenation procedures of Agora:

Customer

Customer Order Cycle

Agoras

Refilling and Manufacturing Cycle

Third party/ Mother company

Procurement Cycle

Root degree Supplier

Agora’s rhythm position of supply concatenation accomplishes with the experient employees. For illustration: If the shelves of soap be vacant the mercantile establishment director sends a merchandise ( PO ) orders to the supply concatenation section of the Agora. The supply concatenation section so publish merchandise requisition ( PR ) to the provider and supplier direct the merchandises to the terminal of Agora and so harmonizing to the outlet’s demand. What is the ground of being profitable of the super markets in malice of such dearly-won direction and care? The reply is that the procedure of procurance is the important point of being profitable. Let’s have expression of traditional kacha bazar and ace markets. The distribution channel of traditional market is following – Raw stuff Supplier

Manufacturer

Jobber

Retailer

Customers

The distribution channel of supermarket is –

Customer

Ace market

Third party

Root degree provider

So. after discoursing the channels of ace market and traditional market we see that the being of jobber is the ground of monetary value hiking and syndication. The outgrowth of ace market sometimes charges the higher monetary values than local market due to maintenance cost and to command the merchandise quality.

Changes in the selling channels due to the constitution of supermarket in Dhaka metropolis: Both the local retail merchants and the supermarkets need mediators for providing the merchandises they need. The alterations occurred chiefly in the type of mediators they use. Normally the local retail merchants don’t have their ain organized jobbers or distributers in their selling channels. The local retail merchants get merchandises from different providers and they frequently buy the merchandises straight from the husbandmans or makers. But the supermarkets need and they have their ain organized mediators for their necessary merchandises to be delivered in order to guarantee a dependable supply of consistent quality. It is troublesome for the supermarkets to purchase merchandises straight from the husbandmans or makers. And it is besides impossible for the little husbandmans or makers to convey their merchandises in bantam tonss for sale to the supermarkets. Then there is the inquiry of scaling. quality and packaging.

So. it is more convenient for the supermarkets to purchase from their ain jobbers or distributers the merchandises that they need. Merely 1. 4 % proprietors of the food market shops in Dhaka metropolis have their ain distribution channel. Around 98. 6 % proprietors do non hold their ain distribution channel. ( S. S. M Sadrul Huda. Mahmud Zubayer. Omar Faruq. Case Study – Marketing Strategies of Retail Stores: An Evaluation of Grocery Shops of Dhaka City ) The traditional selling channels are unsuitable for supermarkets in footings of the service supermarkets wish to supply to consumers. That’s why the most organized and disciplined retail merchants are seeking to keep their ain supply concatenation direction to convey fresh and quality merchandises to the shop. They are concentrating more on beef uping their backward linkage for merchandise handiness. They are besides beef uping their bing trading relationships. instead than merely increasing the figure of providers.

Some perishable merchandises. such as fruits. veggies. meats and fishes are considered of import by supermarkets in order to pull people to their shops instead than to rivals. It is easier to make an single individuality by such merchandises instead than food market merchandises. Because the food market merchandises provided by every supermarkets are of the same quality. However. in order to make this the supermarkets need to be assured of a dependable supply of consistent quality. So. it is necessary for a shop to have reliable bringings from a few jobbers or from a centralised distribution Centre than to hold to worry about purchasing from husbandmans or sweeping markets on a day-to-day footing.

Shawpno. one of the superstores of Bangladesh. is started by ACI logistic in a big graduated table across the state. has bought down the figure of its mercantile establishments to 40 from 65 chiefly due to the failure in supply concatenation.

“At this minute we have stopped enlargement in other countries as substructure is non much developed in Bangladesh. ” Kamal Ahmad. executive adviser of ACI said. “Supply concatenation is the most of import and first challenge to prolong the concern and retain clients. ” Niaz Rahim. group manager of Rahimafrooz that operates the most organized and disciplined retail store Agora. said.

“When we started we did non turn consequently for the supply concatenation ; merchandises did non come as there was incompatibility and harm of merchandises. he said.

But 10 old ages is a long clip to understand the clients behavior and “Now we are scaling up with our strong supply concatenation where we identified the husbandmans who truly grow merchandises. ”

( Monira Munni. Case Study- Superstores concentrating more on supply concatenation direction challenge )

5. Researching the factors impacting the outgrowth of ace market:

There are many factors that are impacting the outgrowth of ace market in Bangladesh.

Time Factor:
Supermarket merchandises are adorned in nice manner. Customers can acquire their all kinds necessary points under one roof and they can easy choose or buy their coveted points. If client goes to traditional market there need so much clip for pick the merchandise and buy their coveted merchandise. Another cause is in traditional market merchandises are non really adorned. so client demand to pass many times for happening their coveted merchandise.

Price Factor:
Supermarket charge is just and monetary value is same for all clients. Customer does non necessitate any sort of deal for buying their suited merchandise. For this ground client prefer supermarket instead than the traditional market. In supermarket they serve the merchandise in inexpensive monetary value because they purchase the merchandise from the husbandman or the root degree of the merchandise is produce.

Product sorting ;
In supermarket merchandises are assorted in elegant. Similar types of merchandise are assorted in the close such as all sorts of food market point are assort in the same part of the unit. vegetable and fish & A ; meat are near the food market point. cosmetics are assorted another unit of the supermarket. so client can happen easy their needed merchandise.

Promotional activities: Supermarket often gives price reduction. voucher. and lottery etc promotional activities to pull the client. In our state the superstore such as ‘shawpno’ often gives their advertizement in newspaper as like the comparison of monetary value of merchandise in local market and their monetary value. Sometimes they give price reduction some of the selected merchandise for pulling the client. Sometimes they setup banner different topographic point like as beside the route of the residential country and near their subdivision for pulling
the client.

Environment: Environment is another cardinal factor of emerging of superstore in our state. The interior environment of superstore is clam and rather. There is no fuss in the superstore. client can purchase their coveted merchandise in a clam environment and clients are satisfied for purchasing the merchandise in such environment. In our traditional market client need to dicker to buy the merchandise so at that place make a aroused environment for purchasing or selling the merchandise. but in the supermarket client can easy buy their needed merchandise without any deal because the monetary value are same to all. so client prefer supermarket instead than the traditional market.

Handiness:
In superstore merchandise are stored in many measure. they buy the merchandise from the husbandman and the trader so the bargain immense sum of merchandise. All sort of merchandise is available for the client. The supply scheme of supermarket is strong because there need to be refilling of empty ego the gross revenues individual are ever alert for adorned the ego. There are assorted many sorts of merchandise in superstore. Customer can purchase any sum of merchandise from the supermarket

Guarantee or warrantee:
Supermarket gives after gross revenues service for their client. They give warrant or warrantee on their selected merchandise. So people feel safe and purchase the merchandise without any vacillation. If there any job of their merchandise client can claim to their mercantile establishment and the ever ready to alter or return their merchandising point. Having these sorts of service client are pleased and they become loyal toward the supermarket.

On-line merchandising:
In our state now some of the superstore gives the online merchandising service. Now client can purchase merchandise by telling through online. Customer have to entree the cyberspace go to the web site of the company and ordered their coveted merchandise. Online service is really helpful for the client because client can order the merchandise from the place every bit good as from their office.
For the online service client can salvage their clip without traveling the superstore. Home bringing service:

Supermarket now provides the place bringing service for their registered client. For deriving the place bringing service client have to be registered in a nine or group. Making nine or group the supermarket supervisor provides the place bringing service and sometimes they gain assorted price reduction for fall ining the nine or group. Customers have to bear down monthly or annual for remaining such sort of group.

Merchandise quality:
Quality of merchandise in the supermarket is really standard. Product quality is related with their celebrity. If they serve the normal or hapless quality of merchandise the client are non interested for purchasing merchandise. For pulling the client they provide the alone merchandise to fulfill the client. After purchasing the immense sum of merchandise they create class on the criterion of the merchandise.

Payment: Supermarket provides a flexible payment solution for the purchase goods. Customer can pay their measure or charge through recognition card. So client need non bear the hard currency money for purchasing the merchandise. It is safe for the client to purchase with the recognition card because they feel unafraid and satisfied purchasing the merchandise.

Ranking among the factors that are impacting:
For initial survey we conduct a study on a group of 120 people. We selected largely the grownup clients who were merely go forthing the market and we collect some response the people are known to us do their market from the ace market. Basically we wanted to happen the factors those are impacting the outgrowth of supermarket in Bangladesh. Our study was conducted by some inquiries that helped us to acquire the necessary information from the consumers and they are: 1. The income degree in which the respondent belongs.

2. The types of merchandises they buy from Agora.
3. The monetary value degree of Agora.
4. The stock of necessary merchandises available in Agora.
5. The services provided from Agora.
6. The factors for what the shopping tendencies are being changed. 7. The figure of clip respondents goes to Agora.
8. The factors those drive them to shop at Agora.

Our research aims were:

1. To happen out the relation between income degree and shopping frequence at Agora. 2. To elicit factors those are impacting the outgrowth of ace market in our state. 3. To cognize the satisfactory degree of clients.

Researching the relation of shopping to the ace market with residential country. business. household size etc: Due to the outgrowth of turning supermarket in our state we can see that the shopping tendency that was antecedently into the traditional market is now altering. The traditional market is now giving its topographic point to the supermarket. Today’s people are seeking to populate in the urban countries because of the comfortss that are available at city’s life. Urban people are now concern about the being of the supermarkets. They are now come ining into the supermarkets more freely alternatively of traveling traditional markets. It’s non been many old ages when the supermarkets start their concern in our state. The history of supermarkets in our state is non much antediluvian instead it is freshly set up due to the rapid urbanisation. Peoples of different rural countries are now coming to the metropolis for gaining their support. And as they are populating in the metropolis they are now acquiring familiarity with the supermarkets.

The supermarkets in our state are largely located in the urban countries ; Dhaka is to be more specific. In Dhaka people are really busy in their life and they do non hold adequate clip for shopping. The really short clip which they have to shop they go to the supermarkets and saves clip. The households in which both the hubby and the married woman are in service they are au naturel get clip for shopping. And for them the supermarkets is the best solution. The supermarkets are non acquiring popular merely for one individual ground instead there are several factors which are responsible for that. In this phase we will research the relationship to the supermarkets with Residential countries. Occupation and Family size: Residential countries: If we take a short expression over the supermarkets of the Dhaka metropolis we will happen that all the supermarkets are located in different residential countries.

As we are covering with the Agora we will see that it has 10 mercantile establishments in Dhaka and all these mercantile establishments are located in really expensive residential countries. Residential countries like. Gulshan. Dhanmondi. Uttara. Baily route and so on. In these residential countries. people normally have a really important sum of income. And they are non mean to travel to the supermarkets buy their day-to-day necessities. They depend on the supermarkets for it. From the questionnaire we can happen that upper limit of our respondent tick the location for the premier cause for their shopping at Agora. When a busy adult male sees that there is a supermarket in his vicinity so he rush to the supermarket for store and thinks that his shopping job is traveling to an terminal. Now he can shop from the supermarket and he need non to travel the traditional markets. While speaking with Mr. Rafiqul Alam. Branch director of Shantinagar. he said that a immense sale is traveling on everyday at Agora in the Gulshan and Dhanmondi subdivision. These two subdivisions are doing immense net income for the Agora. Not merely these two subdivision but besides other subdivisions which are located in the residential countries are doing net income for Agora. The people of residential countries are really busy. They do non hold much clip for shopping. They try to shop really rapidly and avoid the fuss of the traditional markets.

Location is the really of import thing in shopping. We can non anticipate that people will travel 100 stat mis for shopping at Agora. As residential countries people are really busy. they want to purchase their every necessary things from a individual store. they try to avoid the fuss of the traditional markets. and they want to bask the shopping environment. they decidedly need a supermarkets. And for them Agora is the best solution. Residential countries people do shop from the supermarkets instead than the traditional market. And supermarkets are besides locating in a topographic point where the people of residential countries can purchase easy. Obviously we can non believe of a supermarket that is located in the slum countries.

Occupation: people from different occupational countries are coming to the supermarkets for shopping. Occupation like concern. service. homemaker. instruction and even pupils are besides purchasing from the supermarkets. Buying at a supermarket is non costlier than the traditional local markets. From the questionnaire we have found that most of the respondent is residential countries homemakers. They feel comfort at the supermarkets. While shopping they enjoy the environment of the supermarkets. Another major occupational group is the service holder. They do non acquire adequate clip earlier in the forenoon for shopping. That’s why they prefer shopping at the flushing while they return from their office. In the household where both the hubby and the married woman are in occupation they do non hold much clip for shopping and that’s why they prefer supermarkets than the traditional markets.

They shop in vacations and sometimes after returning from their occupation. And in this purpose supermarkets are the best solution. As the shopping tendencies are now altering due to the upgrading life manner supermarkets can play a critical function in this respect. From the respondent we have found that there is a figure of profession in which our respondent belongs to. Among these man of affairs. service holder. homemaker. university instructor are largely buy at the supermarkets. We can non believe that a jinrikisha puller will purchase from the supermarkets. And the ground is obvious why a jinrikisha puller can non purchase from the supermarkets. So we can that the business is related with the shopping wonts at the supermarkets. Family size: Family size is besides a really of import issue in the shopping tendencies from the supermarkets. From our respondent we have found that maximal respondent have little household. Basically the urban people do non hold much member in their households. Most of the household here is little in size. Modern households are little and really much concern about the cost of life.

That’s why they keep their parents in small town and lives in metropolis with lone married woman and their kids. And household size has a profound impact in the shopping tendencies. Large households are making their shopping from the local markets because they have more members for that. But in a household where the hubby and the married woman are in service shopping from the traditional markets is non really easy for them. In this respect the supermarkets are the best solution.

Findingss:
After carry oning the study we found that Agora has some Promotional activities which attract the bing and possible consumers. It has regular publicity of services. bing & As ; new merchandises in day-to-day newspaper to maintain consumers cognizant of the available merchandises. Besides Agora has some sole seasonal offer. monetary value decrease. gross revenues publicity to pull the consumers. Many sole merchandises like aroma. families and fresh. basic nutrients are available in Agora which is priced higher than traditional market. In the clip of pricing Agora is really competitory with its rival. Agora has a huge aggregation of merchandises for that ground clients can acquire their necessary merchandises easy from the shelves of it. Agora buys their about all merchandises from the female parent companies and 3rd parties. Agora is really witting about the merchandise quality they don’t via media with merchandise quality. One of the most of import thing is that when Agora acquire any complain from their clients they take it as a “golden gift” . They think that acquiring complain from clients give them the chances to increase the criterion of their services.

Decision:
At the last of this assignment we can state that ace market is the phenomenal member in our economic system. The market participants are seeking to spread out their concern with alone services and merchandises that is good for clients. Customers are acquiring the merchandises of Agora in great quality and they can besides acquire their merchandise in place. But with the turning of this industry the authorities should come forward to assist this industry to be flourished. Government should cut down the revenue enhancement on import and the process of set uping new mercantile establishment should be easier. On the other manus there should be the

Supply Chain Activities Essay Sample

Supply Chain Activities Essay Sample

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