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Executive Summary
RAHIMAFROOZ group is one of the largest conglomerates in the country with businesses in
pharmaceuticals, agriculture, consumer products etc. However, AGORA is a business unit of
RAHIMAFROOZ logistics. AGORA is the largest retail company in Bangladesh currently
holding a share of 35% of the retail industry. Inaugurated in 2008, AGORA now has over 46
outlets and 1600 employees spread across the country.
AGORA enjoys a higher amount of market share than its competitors such as Agora and
Meena bazaar. Agora and Meena Bazar entered this industry earlier mostly because of visionary
leadership and innovative strategies employed by the company. Even though Meena Bazaar,
Agora hold several advantages over AGORA. None of these companies have been able to
emulate the success of AGORAs business model and market positioning. AGORAs brief
history is fraught with challenges, successes, and ups and down.
The organization structure of AGORA is conventional. One of the advantages AGORA has
over its competitors is the procurement department which is responsible for directly sourcing
vegetables, meat, fruits and grains directly from wholesale markets. Other participants in the
market rely on vendors for fresh produce requirements, which make quality control extremely
difficult.
Contents
CHAPTER1: Introduction..................................................................................................... 5
1.1. Background of the Study.......................................................................................... 5
1.2. Objectives of the study:............................................................................................ 5
1.3. Limitations of the study............................................................................................ 7
CHAPTER 2: Literature Review........................................................................................... 9
CHAPTER 3: Research Methodology & Sample Design....................................................11
3.1 Methods................................................................................................................... 11
3.2 Sources of Data....................................................................................................... 11
3.3 Data Collection Techniques...................................................................................... 11
3.4 Sampling.................................................................................................................. 12
3.4 Sample Size............................................................................................................. 13
3.6 Data Analysis Software............................................................................................ 13
3.7 Data Analysis Tools/ Techniques.............................................................................. 13
CHAPTER4: Data analysis and Findings...........................................................................15
Supply Support practice (SSP)....................................................................................... 15
Customer Relationship Management (CRM)..................................................................19
Information System (IS)................................................................................................. 22
Quality Service (QS)...................................................................................................... 26
Risk and Reward (RR).................................................................................................... 29
Supply Chain Integration (SCI)....................................................................................... 31
Flexibility Performance (FP)........................................................................................... 34
Resource Performance (RP)........................................................................................... 38
Output Performance (OP).............................................................................................. 41
CHAPTER 5: Findings & recommendation........................................................................46
Recommendation........................................................................................................... 46
Reference...................................................................................................................... 48
WEBSITEs:................................................................................................................... 48
Books:......................................................................................................................... 48
APPENDICES.................................................................................................................. 50
Appendix 1:................................................................................................................ 50
Appendix 2:................................................................................................................ 52
About AGORA
Products in AGORA are separated into three master categories; Vegetable, Fruits, Meat and
Grains, Company Goods and Non Food divergence. The company has tens of thousands of stock
keeping units in their portfolio. To make sense of all of these SKUs, each article has its own
unique number and description.
Moreover, each master category is further subdivided into category, subcategory and type
category. These subdivisions great aid the decision making of management and help them to
make sense of thousands of disparate SKUs.
The present ordering and inventory system requires each of AGORAs outlets to send a sales
transfer order based on present days sales to the head office. The procurement department at
the head office then compiles all the demand data from the outlets and instructs the
field procurement teams to purchase the demanded products from the suppliers. Procurement
teams, after purchasing all the required products, deliver them to AGORAs three
distribution centers located at strategic positions across Bangladesh. The management at the
distribution center in turn generates and provides a Goods Received note to the procurement
department acknowledging the transfer of goods.
From this point on, the distribution centers sort the products according to each outlets demand
as presented by the sales transfer order.
After sorting the products according to outlet demand, the distribution centers deliver the
demanded products to all AGORA outlets.
Lastly, each outlet generates and delivers a Goods Received note to the relevant distribution
centre acknowledging the receipt of goods.
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CHAPTER1: Introduction
This study will look into the varied strategies developed and implemented by AGORA to
achieve its Supply chain management relations & dominant position in the marketplace.
Some of the strategies were developed as a result of market dynamics, while others were
developed as a result of desperation. An in depth study of strategies used by retail chains have
not been done in Bangladesh previously. The increasing importance of understanding supplier
relation to sustain in market place with best quality and its growing penetration into many
aspects of peoples lives demands a thorough study on this subject matter.
This paper is organized as follows. Chapter 2 presents SCM with a brief description from the
view of SCM philosophy. Chapter 3 provides the methodology of the paper. The strategy used
when designing a questionnaire form in terms of understanding and the attitudes of main partners
of Agora with special emphasis on their relationship to their suppliers and clients, was
explained. Chapter 4 presents the survey results which were analyzed by using SPSS software.
Chapter 5 includes the conclusion part of this study consists of some recommendations to further
this research in the future.
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1.3. Limitations of the study
Though we put our best effort to fulfil our determined objectives, still there were some
limitations we had to go through-
Mentzer et al. (2001) listed several activities which should be established by firms to behave
consistently with the SCM philosophy. In this research, the focused activities are;
integrated behavior, mutually sharing information, cooperation and partners building and
maintaining long-term relationships. Integrated behavior and cooperation with clients and
suppliers are highly recommended to meet mutual expectations in the long-term (Mentzer et
al., 2001). Partners building and maintaining long-term relationships are required for
increasing the effectiveness of SCM (Mentzer et al., 2001). Lee (2004) suggested that
collaborative relationships should be developed with suppliers and customers so that
companies work together to design or redesign processes, components and products as well as
preparing backup plans.
Thomas and Griffin (1996) explained that Supply Chain Management (SCM) is the
management of material and information flow both in and between fRahimafroozlities, such
as vendors, manufacturing and assembly plants and distribution centers.
It is very important to take into consideration the responsiveness of the supply chain while
designing the supply chain which is basically enabled by sustained information flow (Chopra and
Meindl, 2007). In addition, information flow has a direct impact on the scheduling, inventory
control and delivery plans which are fundamental elements for the coordination of members in a
supply chain (Lee et al., 1997). The supply chain strategy of many companies depends on getting
quicker response rate at consumer flow, since it has tremendous effect to optimize the companys
performance. So, a supply chain management strategy should be developed to attain the ultimate
goals of the company; providing a competitive advantage. In this paper, the existence of effective
collaboration within and beyond the boundaries of a company which is essential to convert
competitive advantage into profitability was sought.
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CHAPTER 3: Research Methodology & Sample Design
This chapter examines the research methodology which generally means the selected methods of
achieving the research objectives. To be more precise, it primarily focuses on the method(s) of
data collection along with the justification of using the method(s). It also includes basic
parameters to be chosen related to the selected method(s). In addition to that, the instruments for
gathering data also fall within the definition of methodology of a research
3.1 Methods
Assessing and identifying the Supply Chain Management of Agora is a matter of
qualitative judgment.For the purpose of this study, two methods are used namely
i. Content Analysis
Content Analysis: This includes collecting related information and data from allrelevant books,
documents, published and unpublished research works available, online articles, notes etc
Questionnaire Survey: This survey is intended to gather primary data about the Supply Chain
Management of Agora with a semi-structured questionnaire.
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3.4 Sample Size
Our tram paper is about Supply chain management of Agora super shop. We have to take our
respondents from employees who are directly related with Supply chain including Branch
manager of Chittagong (Nurul Islam Rupok), Head of sales dept. (Natasha Rahman), Branch
manager of comilla (Susanta Babu Sutradhar), Assistant manager of Comilla branch (Md.
Shafiqur Rahman) and Sales Operator (Md. Abdul Hannan). We took five supply chain
experts from different branches of Agora in Bangladesh. They help us through giving raw
information about their supply chain management system. They also told us how they face
problems to manage their suppliers to meet customer satisfaction.
We follow the qualitative survey system. Though our sample size is very few, our data is more
relievable.
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CHAPTER4: Data analysis and Findings
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SSP4. Helps its suppliers to improve their product quality
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Analyse (SSP1 to SSP4):
By analysing question SSP1, we found that Agora depends on more dependable suppliers as
maximum participants disagree (40%) with the statement their organization rely on few
dependable suppliers.
From SSP2, we found they consider quality as number one criterion in selecting suppliers. As
maximum participants agree (40%) with the statement Consider quality as number one criterion
in selecting suppliers.
From SSP3, we found their answer is neutral with the statement Establish long term relationship
with its suppliers. As 40% most likely agree and same percent most likely disagree with the
statement.
From SSP4, we found they help their suppliers to improve their product quality. As maximum
participants most likely agree (60%) with the statement Helps its suppliers to improve their
product quality
CRM1. Interacts with customers to set its reliability, responsiveness, and other standards
CRM3. Frequently evaluates the formal and informal complaints of its customers
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Analyze (CRM1 to CRM3):
From CRM1, we found Agora doesnt interact directly with customers to set its reliability,
responsiveness and others standards.
From CRM2, we found they frequently measures and evaluate customer satisfaction. As
maximum participants most likely agree (60%) with the statement Frequently measures and
evaluates customer satisfaction.
From CRM3, we found their answer is neutral with the statement Frequently evaluates the
formal and informal complaints of its customers. As 40% most likely agree and same percent
most likely disagree with the statement
IS1. Shares its business units proprietary information with its trading partners
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IS3. Information exchange between your organization and its trading partners is adequate
From IS1, we found Agora doesnt share its business units proprietary information with its
trading partners.
From IS2, we found that their exchanged information helps establishment of business planning.
From IS3, we found their answer is neutral with the statement Information exchange between
your organization and its trading partners is adequate. As 40% most likely agree and same
percent most likely disagree with the statement
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Quality Service (QS)
Quality service is an assessment of how well a delivered service conforms to the client's
expectations. Service business operators often assess the service quality provided to their
customers in order to improve their service, to quickly identify problems, and to better assess
client satisfaction.
QS2. Produces only what has been ordered by customers (pull production system)
From QS1, we found Agora continuously improve their quality. As maximum participants
most likely agree (80%) with the statement Continuous quality improvement program.
From QS2, we found they doesnt produces only what has been ordered by customers (pull
production system)
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From QS3, we found their organizations goods are stored at appropriate distribution points close
to customers in the supply chain. As maximum participants extremely agree (40%) with the
statement organizations goods are stored at appropriate distribution points close to customers
in the supply chain
RR1. Supply chain members help each other finance capital equipment
From RR1, we found Agoras Supply chain members dont help each other finance capital
equipment.
From RR2, we found that they doesnt share risk and reward with their supply chain members.
SCI1. Supply chain establish more frequent contact with each other
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SCI3. Participates in the sourcing decisions of its suppliers
From SCI1, we found Agora establishes more frequent contact with each other in supply
chain. As maximum participants most likely agree (40%) with the statement . Supply chain
establishes more frequent contact with each other.
From SC2, we found they Participates in the marketing efforts of its customers.
From SCI3, we found their answer is neutral with the statement Participates in the sourcing
decisions of its suppliers. As 40% most likely agree and same percent most likely disagree with
the statement
FP2. Ability to respond to and accommodate the periods of poor manufacturing performance
such as machine breakdown
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FP3. Ability to respond to and accommodate the periods of poor delivery performance
From FP1, we found their ability increases to respond and accommodate demand variations
because of their supply chain.
From FP2, we found their ability doesnt increase to respond to and accommodate the periods of
poor manufacturing performance such as machine breakdown
From FP3, we found their ability doesnt increase to respond and accommodate the periods of
poor delivery performance
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Resource Performance (RP)
Resource performance refers how efficiency and effectively resource are used to deliver customer
demand.
Return on investment
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely worse 1 20.0 20.0 20.0
Neutral 3 60.0 60.0 80.0
Most likely better 1 20.0 20.0 100.0
Total 5 100.0 100.0
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Analyse (RP1 to RP3):
From RP2, we found their total cost of distribution, including transportation and handling cost is
much better because of supply chain management.
From RP3, we found their Return on investment is not much better as they expected.
Sales performance
Frequency Percent Valid Percent Cumulative
Percent
Valid Neutral 1 20.0 20.0 20.0
Most likely high 4 80.0 80.0 100.0
Total 5 100.0 100.0
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OP2. Order fill rate
On time deliveries
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely high 3 60.0 60.0 60.0
Extremely high 2 40.0 40.0 100.0
Total 5 100.0 100.0
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OP4. Customer response time
Customer Complaints
Frequency Percent Valid Percent Cumulative
Percent
Valid Most likely low 3 60.0 60.0 60.0
Most likely high 2 40.0 40.0 100.0
Total 5 100.0 100.0
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Analyse (OP1 to OP5):
From OP1, we found their supply chain management increases their sales performance. As
maximum participants reply most likely high (80%) with the statement sales performance
From OP2, we found their supply chain management increases their order fill rate. As maximum
participants reply most likely high (80%) with the statement order fill rate
From OP3, we found their supply chain management increases their performance to deliver
timely. As maximum participants reply most likely high (60%) with the statement On time
deliveries
From OP4, we found their supply chain management decreases their customer response time. As
maximum participants reply most likely low (60%) with the statement customer response time
From OP5, We found their supply chain management decreases their Customer complaints. As
maximum participants reply most likely low (60%) with the statement Customer complaints
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CHAPTER 5: Findings & recommendation
AGORA has a valuable business prospect, but it needs to overcome many obstacles to fortify its
place in the industry. It has entered too many unrelated markets without proper expertise and
preparation, it struggles with high employee turnover, its management information system is in
shambles, it is operating at a loss due to increasingly compounding interest payments to banks
for the funds acquired during its initial expansion phase, it operates without standardized
business process, its employees often lack job descriptions, it suffers from system and real time
stock mismatch, it has started many new product categories that are lacking in product depth and
product line, and lastly it suffers from poor image in the market even though the present quality
of service offered by the company is way above industry standards. AGORA can truly
become a world class organization if it overcomes all these hurdles in the near future.
Recommendation
Instead of maintaining good relation separately with every supplier, an overall integration
will fetch a way more fruitful output.
Keeping regular touch with potential suppliers and involving their selves on new product
launching would be an effective competitive advantage.
Treating potential suppliers as partner will create a sense of ownership on everyone
which will reflect on entire affluence.
People in Bangladesh basically follow renowned actor or actresses as fashion trend. Whereas,
AGORA introduced new faces to their advertisement in billboard. Rather doing that
AGORA should introduce popular character for their billboard advertising modeling. It
will help them to grab a new customer base.
There are some disadvantages of sales promotion as it makes customers and traders more
price sensitive not only for the promoted brands but also for other brands as well in the same
product category. So discount offer should always give once a year not more than that.
Otherwise customer may used to with these offers.
Online shopping is considered to be a very helpful way of buying products through the
internet especially during the holidays. AGORA can also open online store so that people
can give order for purchase in sitting home.
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Reference
WEBSITEs:
Books:
1. Chopra, S., and Meindl, P. (2007). Supply Chain Management: strategy, planning, and
operation, 3rd ed., Prentice Hall, NJ.
2. Cox, A., and Townsend, M. (1998). Strategic Procurement in Construction, Thomas
Telford, London.
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APPENDICES
Appendix 1: Table given below shows the details about the participants of the study
Survey Questionnaire
Dear Sir/Madam,
We are the students of Comilla University of Dept. of management studies under BBA program,
are undergoing to prepare a term paper on The supply chain management of any organization.
We, therefore request you to fill up the questionnaire to enable us to complete the term paper.
----------------------------------------------
A2 Age? 22-30 1
31-44 2
Up to 44 3
A3 Gender Male 1
Female 2
A4 Name of your organization?
----------------------------------------------
A5 What is your position in the company?
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SECTION C: SUPPLY CHAIN MANAGEMENT PRACTICES
Please indicate your level of agreement on the following statements based on your experience
working in this company. The rating is from 1=Extremely Disagree to 5=Extremely Agree
Code: Supply Support practice(SSP); Customer Relationship Management(CRM); Information
System(IS); Quality Service (QS); Risk and Reward(RR)
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SECTION D: SUPPLY CHAIN INTEGRATION
Please indicate your level of agreement on the following statements based on your experience
working in this company. The rating is from 1=Extremely Disagree to 5=Extremely Agree
Code: Supply Chain Integration(SCI)
code Extremely Extremely
Disagree 1 Agree 5
SCI1 Your supply chain establish more frequent contact with each 1 2 3 4 5
other
SCI2 Your firm participates in the marketing efforts of its 1 2 3 4 5
customers
SCI3 Your firm participates in the sourcing decisions of its 1 2 3 4 5
suppliers
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