Professional Documents
Culture Documents
Introduction.....................................................................................................2
Significance of the Study.................................................................................2
Methodology of the Study................................................................................3
Limitation of the study.....................................................................................4
What is Integration..........................................................................................5
Business integration........................................................................................5
Benefits of business integration......................................................................5
What is Technology Integration........................................................................6
What is Supply Chain Management.................................................................6
What is Supply Chain Integration....................................................................6
How does a company Integrate Supply Chain Management...........................7
Integrated Supply Chain Maximize Efficiencies and Savings...........................8
Advantages of Integrated Supply Chain in Business........................................8
About Super Shop Business in Bangladesh......................................................9
Company overview of Agora..........................................................................10
Corporate Information of Agora.....................................................................11
Supply chain of Agora....................................................................................11
Supply chain of Agricultural product..............................................................12
Supply chain of consumer goods...................................................................13
Supply chain of imported goods....................................................................13
Supply chain of Private Brands......................................................................14
Process view of supply chain of Agora...........................................................14
1. Cycle view.............................................................................................15
2. Push/Pull process and Boundary...........................................................15
Supply Chain Integration of Agora.................................................................16
Management of Supply Chain........................................................................16
Drivers in Supply Chain Management............................................................17
Supply chain Strategy of Agora.....................................................................17
Key reasons for this success..........................................................................18
Communication strategy of Agora.................................................................19
SWOT Analysis...............................................................................................20
Conclusion.....................................................................................................22
Reference.......................................................................................................23
Introduction
To meet the demands of todays marketing environment, organizations are looking
to service initiatives as a means to create or sustain competitive advantage. A
strong brand provides the leadership framework and umbrella to focus all
marketing and resources in a manner that will generate the greatest results. Now
a days retailers are turning to brand strategies to strengthen their marketing
programs in an environment that is increasingly characterized by accelerating
rate of changes, variety of products, extreme competitions and superior customer
services etc.
Super market or super shop sector is expanding hand over different marketing
events every day. As the demand for better service increases day by day, they are
coming with different innovative ideas & products. A successful super market not
only depends on how it serves its customers other than its competitors but also
how it supply chain strongly and work effectively and efficiently. A typical supply
chain refers the variety of stages. These supply chain stages include customers,
retailers, wholesalers or distributors, manufactures and component of raw
materials suppliers. In Bangladesh, Rahimafrooz first introduced traditional super
market named Agora, though they are the first comer in this business category. A
man gifted with an inherent entrepreneurial sense, Late A. C. Abdur Rahim, the
founder of Rahimafrooz started a trading house in 1973, which continued to
expand in scope and nature as time went along. In 2000, Agora was introduced to
the world.
This report has been prepared to study on the Supply Chain Management of
Agora as a part of assignment of the course Managing Supply Chain under
supervision of Dr. Md. Akram Hossain.
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Secondary sources of data: Secondary data is the type of data that is collected for
addressing the other purpose, not the present purpose. Specially published
articles in newspapers and other journals. Secondary sources include Agoras Web
Competitors Report
Newspaper Articles
Other Web Articles
What is Integration
Integration is the act of bringing together smaller components into a single
system that functions as one. In an IT context, integration refers to the end result
of a process that aims to stitch together different, often disparate, subsystems so
that the data contained in each becomes part of a larger, more comprehensive
system that, ideally, quickly and easily shares data when needed. This often
requires that companies build a customized architecture or structure of
applications to combine new or existing hardware, software and other
communications.
Business integration
Business integration is a strategy whose goal is to synchronize information
technology (IT) and business cultures and objectives and align technology with
business strategy and goals. Business integration is a reflection of how IT is being
absorbed as a function of business.
your customers needs, the more likely they are to come back and rave about
your excellent customer service. With an integrated business, you can
easily address enquiries by having all the information you need on hand right
when you need it.
2. Increase Sales: A properly integrated system can make it easier for
4. Have More Time: Integrating enables you to run your operations more
efficiently, saving time. What used to take two days to do could now be done
in one or less!
5. Make More Money: The trick with integrated systems is that everything
needs to work together. That includes the financial system, having an efficient
accounting system that ties into your existing processes will help you track
your pennies properly so youll know where to spend them later.
The second idea is that while supply chains have existed for a long time, most
organizations have only paid attention to what was happening within their four
walls. Few businesses understood, much less managed, the entire chain of
activities that ultimately delivered products to the final customer. The result was
disjointed and often ineffective supply chains.
Considerations
Tightly integrated supply chains can serve as early warning systems. For example,
if a supplier is experiencing cash flow problems, customers will find out quickly
and they can start making alternative arrangements. Some customers may step
in and loan the supplier some working capital so that they can continue operating.
Supply chain integration usually involves upfront costs and disruptions in
operations as people are trained on new information systems.
of its customers by providing the right quality, assortment and price through
stores of various forms and sizes.
While Agora mainly focuses on food items - ranging from a wide variety of fish,
meat, vegetables, fruits, bakery, dairy, and grocery - it also carries a vast array of
other grocery, personal care, and various other consumer goods and household
utensils. There are 30,000 different products and SKUs at any point in time in each
of the Agora outlets.
Agora Ltd. is an enterprise that combines industry and trade, mainly engages in
retailing the quality products at the lowest price in the market. The management
of Agora, was an enthusiastic advocate of trading stamps as an inducement for
shoppers to patronize their stores: They signed up with all types of quality
products manufacturer, and became one of the companys largest clients. But the
management was a fan of pile it high and sell it cheap, and in the mid-2000 Agora
faced many cost problems associated with not properly integrating its purchased
chains of stores. When the firm overstretched itself opening few more outlets
throughout the city, management consultants were called in to sort out the mess.
Other supermarket brands have since emerged but Agora continues to be the
leader and trendsetter. Agora has been the venue of launching of Thai products,
which have by now become commonplace. Californian apples were launched here
as have been Agora buys products direct from the growers, which benefits the
latter as well as the customers. The products are procured under the direct
supervision of its officials who maintain strict procurement and marketing
standards. Products on the shelves are regularly monitored for expiry dates.
Australias red apples, and crystal products from France were unveiled here.
Unilever chose to launch LOreal range of cosmetics at Agora superstores. The
big-sized Boroi so common in the market was launched here. Recently the
scientist behind the cultivation of Strawberry in Bangladesh launched the
delicious fruit at Agora.
Over 8 million have purchased products at Agora since the opening of Agoras fist
superstore, with 2,000 customers using the Agoras every day on an average.
Customers prefer using both cash and credit cards. Agora constantly launches
attractive promotions like Bazimat, Value Week or Super Value Offer or Diamond
Ring Offer.
The Agora project was a ground-breaking project that underlines the potential for
harnessing the latent market in Bangladesh, said an executive of a leading
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Finance
Supplier
Packaging
Transportation
Manufacturer
Customer
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These are the supply chain of Agora at a glance. Now the product wise supply
chain explanation of Agora.
Producer (Vegetables)
Outlets
(Dhanmondi,
Gulshan,
Warehouse
(Agora
)
Uttara, Mirpur)
Supplier
Producer (Apparels)
Supplier
Manufacturer (Unilever)
Customer
Directly import
Purchase from import house
a) Directly import
Here Agora directly imports goods from the foreign manufacturer without any
intermediary. In this case the importer is Agora and the exporter is foreign
manufacturer. The products come to the warehouse to outlet to consumers.
Manufacturer of abroad (Havoc)
Importer (Agora)
Supplier
Warehouse (Agora)
Supplier
House
ManufacturerImport
of abroad
(Janata Foods-hypothetical)
Warehouse (Agora)
Customer
1. Cycle view
Customer
Outlet
Replenishment cycle
Warehouse
Manufacturing cycle
Manufacturer
Procurement cycle
Supplier
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Pull Process
d) Procurement cycle
Push Process
Push/Pull Boundary
Each supply occurs at the interface between two successive stages of the chain.
Supply chain management by Sunil Chopra describes that a grocery supply chain
has all four cycles separated. When the customer of Agora buys products from its
outlets like Dhanmondi, Uttara, Mirpur, Shantinagar etc, it is customer order cycle,
when the outlet like Uttara replenish its products (that are already sold) from
outlets. It is replenishment cycle, when retailer brings product from distributer. It
is manufacturing cycle, when distributer collects materials from manufacturer.
And it is procurement cycle, when manufacturer collects raw materials from
suppliers.
Agora usually use push process. At first the raw materials of any particular
product go to the manufacturer. Then the manufacturer produces the product &
sends the product to the warehouse of Agora. The products are inventoried over
the ware house. Whenever the products from outlet finished, then the products
completely replenished from the warehouse to outlet. At the end the products are
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exhibited to the outlet of Agora and the products are purchased by the customer.
All the promotional activities are taken by the manufacturer about the products.
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b)
c)
Inventory
Quantity (Higher quantity inventory, the low cost per unit)
Volume (More volume, more cost)
Nature of inventory (Liquid, Solid, Raw materials, Semi-finished & Finished)
Transportation
Mode: Roadway, Railway, Shipway, and Airway
Route and Network selection
Facilities
Space for moving inventories like yard, Labor, Capacity of facility, and Loading
unloading devices like bucket, elevator, belt conveyor
d) Information
Data on availability and requirement of inventory
Data on the position of the inventory in various stages (Inventory on the way,
in warehouse, time to be taken to reach)
mission statement reads, "Our core purpose is, 'To create value for customers to
earn their lifetime loyalty'. We deliver this through our values, 'No-one tries harder
for customers', and 'Treat people how we like to be treated'". The underlying aim
is of course to make higher profits, but there is a clear focus on customer service
at the top level of the company.
capitalizing on impulse buying. The front of the store or Front-End is where one
might find point of sale machines or cash registers. Every shop has plans to
implement self-checkout devices in their stores in an attempt to reduce labor
costs as well as bringing complete customer satisfaction.
SWOT Analysis
A SWOT analysis identifies and assesses the strengths, weaknesses, opportunities
and threats an organization faces. SWOT analysis of the Agora illustrates to upper
management what the company is excelling in, what improvements need to be
made, where growth is possible and what preemptive measures need to be taken
to protect shareholder or company value.
(1)How the companys strategy can be matched to both its resource capabilities
and its market opportunities
(2)How urgent it is for the company to correct which particular resource
weaknesses and guard against which particular external threats.
Strengths
Strength is something a company is good at doing or a characteristic that gives it
enhanced competitiveness. A powerful strategy supported by competitively valuable
skills and expertise in key areas. Agora arranges training system for its sales person to
increase their skill. Agora has skilled and experienced human resource to organize the
company in its key areas.
For strong financial condition and widening financial resources, Agora has strong
financial condition and resource to grow the business, because within five-year
agora open three branches in Dhaka city.
Strong image and good reputation of Agora provides good customer services and
20 thousand variety of quality product. Agora offers clean, healthy and a friendly
environment to customers for shopping.
Agora encourages producers to produce standard and quality products to make
better quality product relative to rivals. To provide quality product Agora check
expire date every month.
Weakness
A weakness is something a company lacks or does poorly (in comparison to
others) or a condition that puts it at a disadvantage.
Pricing strategy: Agoras pricing strategy is not good enough compare to its
competitors
Lack of advertising: Agora use only news media rather than electronic media, a
Agora is not careful enough about their competitors.
Supply variety product: The quantity supply of products are short. It has no
stationary, sports, electronics, and gift items. Agora business tradition also lacks
the use of e-commerce technologies.
Opportunities
Market opportunity is a big factor in shaping a companys strategy. Indeed,
managers cant properly tailor strategy to the companys situation without first
identifying each company opportunity and appraising the growth and profit
potential each one holds.
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Threats
Often, certain factors in a companys external environment pose threats to its
profitability and competitive well-being. Threats can stem from the emergence of
cheaper or better technologies.
Likely entry of potent new competitor: Agora has many competitors Nandan,
Meana Bazar, Shawpno etc.
Loss of sales to substitute product: Agora is not holding some brand of same
quality product.
Costly new regulatory requirements: Agora sells some foreign product at higher
price for few numbers of customers.
Growing bargaining power: Growing bargaining power of customer because there
are many competitors to Agora customers compare the product price of
competitors products with Agora products price.
A shift in buyer needs and tastes away from the industrys product: The
demand of the product sometimes changes without any prior assumption.
Suppose customers usually buy Coca-Cola. Suddenly if customers demand Pepsi
and Agora does not hold Pepsi. It is also a threat for the Agora.
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Conclusion
Since the concept of supply chain management was introduced, there has been a
great deal of confusion about what it actually involves. While some managers and
researchers continue to use supply chain management interchangeably with
logistics, there is an increasing understanding that it is much more than logistics.
In recent years, many authors have stressed the importance of implementing
supply chain management as part of a process orientation to management.
Agoras main concept hinges on its ability to meet the needs of a more advanced
society where the working wife prefers to make at-a-time purchases of daily needs
less than one roof. Form a careful analysis of the ideas and marketing concepts at
work in the operation of Agora, it has been possible to obtain an insight to the
essential marketing practices adopted by such retail stores. In a highly volatile
business environment the quest for excellence does not end easily. By adhering to
proper marketing strategies and putting its target market in top most priority,
Agora has been able to edge towards competitiveness with few formidable rivals
to challenge its present position Evidently, by virtue of its high quality assurance,
provision of a wide assortment of local and foreign products, and a touch of luxury
to appeal to the mind of shoppers, Agora has been able to establish itself as a
store that makes every effort to cater to customer satisfaction.
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Reference
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