Professional Documents
Culture Documents
Group-2
Batch: 44A
Serial
Name
ID No.
Program
01.
M-
MBA
02.
M-
MBA
03.
M-
MBA
04.
M-
MBA
05.
M-
MBA
ACKNOWLEDGEMENTS
First of all we would like to thank the almighty Allah because of successful completion of
this assignment. We would like to thank our honorable Teacher Brig Gen Md Zahurul
Alam, for providing us with the opportunity to work on project and gain a real life
experience. We also thank all our group members & friends who inspired us & helped us
to build confidence and put us in a deep concentration to carry on our course work and
supported us at the end with great excellence. We lastly would like to express our
appreciation to our International Islamic University Chittagong (Dhaka Campus) and we
are eventually grateful to the University and its excellence that works for education
encourages us and creates knowledge, as knowledge is power
INTRODUCTION
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Effectively integrating the information and material flows within the demand and supply
process is what supply chain management is all about. A supply chain management system
(SCMS) is user-interfaced and designed to provide information and information processing
capability to support the strategy, operations, management analysis, and decision-making
functions in an organization's supply network. SCMS provides high quality, relevant and
timely information flow that effectively supports decision-making for inventory replenishment,
capacity activation, and for synchronizing material flows at all tiers within the supply chain. In
recent years, there have been some efforts on designing an efficient information system for
supply chain management; but many of them have led to failure. The three main purposes of
this paper are to (1) identify SCMS and its characteristics, (2) introduce and categorize critical
failure factors (CFFs) for SCM and SCMIS, and (3) investigate the explanatory power of these
CFFs on the performance of supply channel processes performed through SCMS
Supply chain management system (SCMS) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to retailer to
consumer. Supply chain management involves coordinating and integrating these flows both
within and among companies. It is said that the ultimate goal of any effective supply chain
management system is to reduce inventory and Communication is the transmission of
information from one group or individual to another. Business communication is very
essential now days to make contacts with people and for trading. Whenever a business wants
to make a good business proposal or introduce a new concept, communication plays a very
big role. Communication also helps in the conveying of message among the different
employees or customers of the organization. Communication helps to direct employees to
attain their goals without any misunderstanding or confusion. This paper discusses the
different roles of supply chain management, different role & ways of supply chain
management. The study also tried to find out what is the problem and shortage of SQUAREs
supply chain management system to improve themselves
This report has been prepared to make a study on An overview of the SQUARE Limited of
Bangladesh as a part of the fulfillment of assignment required for the completion of the MBA
program (3rd semester) of the business faculty of International Islamic University Chittagong.
The report was prepared under the supervision of Brig Gen Md Zahurul Alam, Lecturer of
International Islamic University Chittagong, Dhaka. We are very much thankful to him for
assigning such types of project work.
Supply chain,
Operations process,
Distribution policy,
Communication process,
Forecasting, Planning,
Overview of supply chain management,
Corporate operational result,
The Process of Information Sharing and Its Barriers etc.
Background of SQUARE
SQUARE today symbolizes a name a state of mind. But its journey to the growth
and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned
into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the
flagship company, is holding the strong leadership position in the pharmaceutical industry of
Bangladesh since 1985 and is now on its way to becoming a high performance global player.
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SQUARE the most innovative company in Bangladesh pioneered exports of medicine from
the country back in 1987. They have also been active in exporting other pharmaceuticals and
this is one of the main reasons for their success and their increased credibility as a company.
The founding chairman of this highly innovative company was Samson H. Chowdhury who
died in 2012. Mr. Samson H. Chowdhury was able to put together Square with three of his
friends. It was then appropriately named Square, because it was started by four friends.
Executive management of the company is led by the managing director. The executive
manager has a diversified role in that they plan the segment plans for each division within
Square. Square realizes that they owe a certain portion of their success to their shareholders.
They protect their capital, and this ensures the highest growth for assets and it increases their
potential for future success. Squares employees are what make up the back bone of this up
and coming company. They are also the operational strength of the company. Square strives
to compensate their employees with packages that give them salary/wages, bonuses,
allowances and retirement benefits.
Square works hard to have a company that is devoid of malpractice and is socially aware.
They avoid any kind of behavior that is corrupt for the environment or dishonest to society.
This is a socially and environmentally aware company that always operates at the highest of
moral standards. They always report to their shareholders and they strive for excellent
governing in all areas of the company. They view business as a means to gain material and
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cultural well- being. This leads to a build-up of wealth and moral integrity. This is part of the
normal social and economic process that the world faces daily through civilization.
They make it their goal to provide their customers with the highest quality healthcare
products that they possibly can. This ensures good benefits to their shareholders and
stakeholders. They aim to retain their objectives that they have freely stated in their mission.
Recently Square has extended their services to even a broader area and are expected to
continue their successful path.
Web interfaces are competing with Web-based application service providers (ASP) who
promise to provide part or all of the SCM service for companies who rent their service.
Increasing numbers of companies are turning to Web sites and Web-based applications as
part of the SCM solution. A number of major Web sites offer E-Procurement marketplaces
where manufacturers can trade and even make auction bids with suppliers. Basic research
question of the study is whether Square Company as a whole can manage supply chain
properly?
the Management is referenced in the definition, so we know that the general idea of a
supply flow through a business was recognized prior to Olivers definition. What Oliver
really captured was the conscious and deliberate control, integration, and management of the
business functions contributing to, and affecting that supply flow through the business, for
the purpose of improving performance, costs, flexibility etc., and for the ultimate benefit of
the end customer.
The concept has been defined in simpler terms since that time and is often captured with five
words: Plan, Source, Make, Deliver, and Return. Both of these definitions allude to a
manufacturing origin but of course Supply Chain Management is as relevant to service,
retail, distribution, and most other types of companies as it is to manufacturing. The area of
Supply Chain Management has enjoyed a meteoric rise in significance over the last twenty to
thirty years as businesses have tried to establish advantage, and felt the pressure to keep up,
in an increasingly homogeneous and competitive global business environment.
Japanese manufacturing companies brought great emphasis to the area of Supply Chain
Management in the 1980s and early 1990s. Awareness of Supply Chain Management tools
such as Just In Time and Kan Ban spread rapidly and became globally accepted best
practice amongst volume manufacturing businesses. Western businesses raced to keep pace
with a rapidly changing environment, dragging their supply bases, and sometimes employees
behind them. At the same time companies like SAP and Oracle were developing the complex
IT systems that would be essential for enabling large complex businesses to effectively
integrate and managing the sub areas that combined to make complex supply chains.
Of course the elements of Supply Chain Management have always existed in business. What
changed was the willingness of businesses to recognize the inter-relationship of the various
sub areas, and to pursue the benefits generated through coordination and integration, both
from a strategy / planning perspective and operationally.
The sub areas comprising a supply chain include:
Forecasting/Planning Purchasing/Procurement Logistics Operations Inventory Management
Transport Warehousing Distribution Customer Service
Today, Supply Chain Management is an accepted term in our business glossary. However, it
is difficult to find a standard model of Supply Chain Management operating in the business
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community. We continue to see variations on the theme. Some business will refer to and
manage their supply chains in a coordinated and all encompassing fashion, including all of
the sub areas defined above. Others will integrate some elements of the supply chain, for
example purchasing and logistics and call this Supply Chain Management. Many will refer
conceptually to Supply Chain Management, but only address it specifically at the general
management level.
One area of confusion arises because Supply Chain Management is both a horizontal
business function (i.e. managing the supply chain in a business), and a vertical industry
sector (i.e. businesses involved in managing supply chains on behalf of their clients). A
company like TDG operates as a supply chain services provider, within the vertical supply
chain industry sector. But each of the clients serviced by TDG will employ supply chain staff
within their business operating on a horizontal basis across their organization. The supply
chain industry sector as the vertical is often referred to, is largely restricted to transport and
storage type operations. Distributing products on behalf of clients. Whereas, the horizontal
supply chain functional areas encompass the entire supply chain spectrum across a business.
Supply Chain Management has matured from a compelling method of deriving competitive
advantage, to a ticket to ride. It is now a baseline expectation for any company wishing to
compete in the 21st Century, and with that the professions and occupations comprising
Supply Chain Management are now firmly entrenched in the armory of essential business
executives.
Forecasting / Planning
All business needs to forecast and plan. To look forward and predict what will be required in
terms of resources and materials in order to deliver their product or service to their customer
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in a timely manner. In this area we find activities such as demand planning, inventory
planning, capacity planning etc.
Purchasing / Procurement
The commercial part of the supply chain is purchasing. Otherwise its known as Buying or
Procurement. This is where a business identifies suppliers to provide the products and
services that it needs to acquire in order to create and deliver its own service or product.
Costs and terms of business are negotiated and agreed and contracts created. Thereafter the
suppliers performance and future contractual arrangements will be managed in this area.
This area of the business is sometimes referred to as purchasing, sometimes, procurement,
buying, sourcing, etc. However, all titles relate to the acquisition of materials and services.
The difference between purchasing and procurement is largely academic as, whilst there is a
theoretical difference between them, businesses use the titles interchangeably for the two
variations of activity. You will for example find manufacturing companies with purchasing
departments that are actually doing procurement roles, and you will find service based
organizations with procurement departments but in fact doing purchasing roles. In its strictest
definition purchasing is limited to the actual commercial transaction and no more, whilst
procurement includes the wider elements of the acquisition, including logistics and
performance management.
Logistics
In its strictest definition logistics refers to the movement of goods or materials, whether
inbound, through, or outbound. In some manufacturing businesses forecasting and planning
will be found within a logistics department, in other businesses logistics will be exclusively
managing the movement and transportation of goods and materials.
Operations
Operations are a general management type activity ensuring that a business uses its resources
effectively to meet its customer commitments. Usually referring to the conversion activity of
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the business, i.e. the point where the acquired resources and/or materials are converted into
the product or service that the business is selling on to its customers.
Inventory Management
Sometimes found within Logistics Management, or Demand Planning or Operations,
Inventory Management typically takes responsibility for both the replenishment of physical
stock, the levels of physical stock, and of course storage and issue of physical stock. Stock
may be materials and goods sourced from suppliers, work in progress, or finished goods
awaiting sale/dispatch.
Transport
Transport management can involve the control of a company owned fleet of vehicles,
collecting, moving, or delivering materials and goods, or managing transport services
sourced from a 3rd party transport provider.
Warehousing
Like transport management, warehousing can involve the control of company warehouse
space, or managing warehouse space sourced from 3rd party providers .
Distribution
Distribution involves the physical distribution of the companys products to the subdistributor or directly to the customer base. Typically this is a combined transport and
warehousing operation, responsible for storing and delivering products to meet the
customers needs. Again this combined activity will often be placed with a 3rd party service
provider who will control and implement the processes.
Customer Service
Most people do not recognize customer service as part of supply chain management, but it is
in fact the final piece in the jigsaw. Having taken the business inputs, created and delivered a
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product or service, the final element is to check that the customers expectations were
achieved, and manage any actions necessary to meet your customer obligations and
commitments.
Supply Chain Management System In Square
For any organization supply chain management communication process is very important. At
present every company is trying to grab the latest supply chain management communication
method to get the best benefit. Before going to discuss the supply chain management
communication system of SQUARE I want to discuss a little about the company.
An Overview Of SQUARE
The company was founded in 1958 by Samson H. Chowdhury along with three of his friends
as a private firm. It went public in 1991 and is currently listed on the Dhaka Stock Exchange.
Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position
in the pharmaceutical industry of Bangladesh since 1985 and it has been continuously in the
1st position among all national and multinational companies since 1985. Square
Pharmaceuticals Ltd. is now on its way to becoming a high performance global player. The
quality of SQUARE and environmental concerns are clearly stated through declared
policies .In the year of 1992 it had only 80 million turnovers but in the year 2004 it was
around 2400 million.
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SQUA
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C onsu
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G oods
L td .
SQUA
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P h a rm
a c e u ti
- c a ls
L td .
SQUA
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Tr a d i
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L td .
SQUA
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F o r m u la
t io n s
L td .
VALUE-MISSION-VISION OF SQUARE
Value of SQURE:
Quality
Customer Focus
Fairness
Transparency
Continuous Improvement
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management system. With the help of well organized SCM system SQUARE takes the
satisfaction from their suppliers and also from the consumers. SQUARE can transmit
properly what they are looking from the suppliers and marketers; SQUARE also makes a
friendly environment with their sharing process. To tell about the role of sharing we can
remember another example, when the Sara Lee Corporation wants to determine customer
product satisfaction, it conducts a survey. The survey is useless, however, until the data are
analyzed and the results shared to management. Only when words and data are translated
into meaningful knowledge and shared to decision-makers do they become valuable to the
economy. So it is very clear that role of sharing is very important for SQUARE. To supply
the goods properly SQUARE uses their own logistics and transportation system.
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How will the selected words affect the receiver? To solve these sorts of problems SQUARE
Chooses appropriate words or symbols is the first step.
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Selecting the best process for sharing information form demands some understanding of how
messages and information flow through organizations. Both formal and informal sharing
channels exist. A free exchange of information helps SQUARE to solve problems , cut costs ,
better serve the public and take full advantage of todays knowledge workers. All the
following channels are used in SQUARE with the demand of situation,
Formal channels:
Formal channels of sharing information generally follow an organizations hierarchy of
command. Whether an organization has developed such a sharing policy or not, official
information among workers typically flows through formal channels in three directions:
downward, upward, and horizontally.
Downward Flow:
Information flowing down generally moves from decision makers, including the CEO and
managers, through the chain of command to employees. One problem in downward
communication is distortion resulting from long lines of communication.
CEO
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Lower Level
Employee
channels enable individuals to coordinate tasks share information, solve problems, and
resolve conflicts.
3. Informal Channels: Not all the information within an organization passes through formal
channels; often, it travels in informal channels is called the grapevine. These channels are
based on social relationships in which individuals talk about work when they are having
lunch, jogging. Employees using the Grapevine also consider it valuable for two reasons:
a. Employees can get information without formally having to admit that they need it.
b. Employees can think out loud about problems, thus increasing their self-confidence
First, management does not control it. Second, it is perceived by most employees as being
more believable and reliable than the formal communiqus issued by top management and
third, it is largely used to serve the self-interests of the people within it.
At present there is a change in the flow of sharing information. Now we can define the above
three flow in different way,
Chain
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Wheel
25
SQUARE is trying to follow this channel though SQUARE can not implement this channel
completely in their organization. This the best flow of sharing information channel for any
organization.
RECOMMENDATION FOR THE SCM AND COMMUNICATION SYSTEM OF SQUARE
Though SQUARE is trying to follow the best method to maintain supply chain management
and communicate, SQUARE has some problems. The recommendations for the problems are
as follows:
1. SQUARE follows all the channels of communication in their organization downwards
and upwards and the employee can switch off any hierarchy in the immediate
situation, which is the great advantage for communication. But the company does not
follow the specific method of the letter and memo writing. They follow a single
method to write the memo and letter, which may confuse the employees, and the
external people who are related to the companies continue operation (Suppliers,
customer etc.). Because memo is written for the employees and letters are written for
the external people like suppliers and customers.
2. So, SQUARE should follow the traditional method to write the letters and memo.
3. SQUARE follows LAN in the organizations computer systems. But they dont use
the Intranet in the system, which is a great disadvantage for the organization because
anybody from the company can access another to the companys restricted web site
.So, SQUARE should introduce intranet in their company.
4. SQUARE cannot follow the all channel method totally. As a result it is not getting the
100% benefit of all channel method .So; SQUARE should try to implement it as early
as possible.
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5. SQUARE has not yet introduced extranet facilities for the suppliers. As a result the
suppliers cannot get enough information about the companies or organizations
demand. So, SQUARE should introduce extranet in their company
6. SQUARE should give more concentration to improve the quality of workers in the
floor of Shopno. Because, they are the person who directly deals with the people &
suppliers directly. Which is very much important for maintaining supply chain
management.
7. SQUARE also should be more concern about their transportation system for the
supply. Because, they usually bring their agro based products from the very rural area.
Their roads are not that much standard. So beside, trucks and covered van they also
should take care of the transport which can be used on water. Refrigerating system is
also important.
CONCLUSION
The request for excellent communication skills is probably the most frequently seen requirement
in job ads today. Employers and employees alike consistently rank communication skills at the
top of the job skills list. Even in technical fields, communication skills are demanded. The chief
executives of corporations spend huge sums of money on trainers and consultants to improve
employees supply chain management skills.
Organizations value these skills because good organizations successfully
Make money
Save money.
Good communicators make money by performing well themselves and by motivating others to
achieve. They are persuasive in promoting the organizations products, services, and reputation.
Employees, too, appreciate the value of excellent communication skills. Such abilities enable
them to complete their work efficiently and effectively and to earn recognition and
advancement. As individuals ascend the career ladder, oral and written communication skills
become more important than technical skills. Thats because managers spend most of the time
communicating-supervising, delegating, evaluating, clarifying, and interacting. Even though
27
writing on the job is an important skill, myths and misconceptions about it persist. So I think not
only SQUARE every organization should emphasize on the proper way of communication.
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