IDS Report PPt - Final with vedio

redefining concepts and trends……….

1

MD. RAJU BISWASID# 12302104

PROGRAM: BBA

2“Prospects and Challenges of Procurement Process in IDS Group”’

Prospects and Challenges of

Procurement Process in IDS Group

A complete study on IDS Group particularly on Procurement Unit. Survey on the Vendors for measuring their satisfaction towards IDS Group.

3“Prospects and Challenges of Procurement Process in IDS Group”’

Outline

redefining concept and trends…

“Prospects and Challenges of Procurement Process in IDS Group”’ 4


Introductory part



Preface

Broad objective

The primary objective of my report is to find out the challenges of procurement of IDS Group. To analyze the topic Prospect and Challenges of Procurement Process the report has done.

ObjectiveGetting introduced with an organizations procurement department.Understanding the importance of procuring item for a RMG.Finding out the challenges of procurement processUnderstanding the prospects of procurement processRecommending procurement team to increase their efficiency Helping to identify the accurate calculated value of the trims and accessories.To help the procurement team to purchase.Helping to purchase in accordance with the budget.To increase efficiency of the procurement team



organizational part

7


“Prospects and Challenges of Procurement Process in IDS Group”’









Major

Competitors

Opex Group

Nassa Group

Palmal Group

Tosuka Group

Standard Group

DaDa Group

Ananta Group

Beximco Group

Villatex Group

Square Textile

Beximco Group




redefining concept and trends…Sl Internal Strategic Factors Weight Rate Weighted

Score

Comments

Strength

S1 Green Factory 0.15 5.00 0.75 Trying to open it very quickly

S2 Own land 0.10 4.4 0.44 Own land helps to cost reduction.

S3 Latest Technology 0.05 4.5 0.23 Latest technology helps to produce more.

S4 Effective Management and R&D Team 0.15 3.9 0.59 Effective management and R&D team is

prior to success.

S5 High Production Capacity 0.05 4.00 0.20 Helps to reduce the lead time

Weakness

W1 Relationship with Suppliers 0.15 2.2 0.33 Suppliers don’t cooperate.

W2 Air Shipment 0.10 4.00 0.40 Expensive.

W3 Post Purchase Behavior 0.05 2.30 0.12 Helps to long term relationship

W4 Shortage of Workers 0.10 2.10 0.21 Minimize the work efficiency.

W5 Poor Salary Structure 0.10 2.0 0.20 De motivate workers.

Total Score= 1.00 3.47



Sl External Strategic Factors Weight Rate Weighted Score Comments

Opportunities

O1 Covering UK&USA market 0.15 5.00 0.75 Huge market in the UK&USA

O2 Expansion 0.05 4.00 0.20 Expansion can helps to get the trims and

accessories easily.

O3 Establishing training centre 0.05 3.50 0.18 Can increase workers efficiency.

O4 Hiring fresh dynamic graduate 0.15 4.50 0.68 Cheep to hire.

O5 Attending international trade show 0.10 4.00 0.40 Helps to get customers.

Threats

T1 High terrorism risky 0.15 4.20 0.33 Foreigner can’t come to give order.

T2 Competitor’s smart movement 0.10 4.50 0.40 Need to follow the trends

T3 Composite industry 0.05 3.50 0.12 Helps to produce in one plant.

T4 Political imbalance 0.10 5.00 0.21 Customers don’t like political issues.

T5 Infrastructure problem 0.10 5.00 0.20 Hampers production.

Total Score= 1.00 3.47



Internal Factors

IFAS

External Factors

EFAS

Strength (S):1. Green Factory

2. Own Land

3. Latest Technology

4. Effective management and R&D team

5. High Production Capacity

Weakness (W):

1. Relationship with suppliers.

2. Air shipment

3. Post purchase behavior.

4. Shortage of workers.

5. Poor salary structure.

Opportunities (O):

1. UK&USA market

2. Expansion.

3. Training centre.

4. Hiring fresh graduate.

5. Intl. trade summit.

SO Strategies:

Green factory can attract UK&USA customers

and the company can expand their business in

their own land.

Training centre can improve the management

and R&D teams’ performance.

WO Strategies:

Hiring fresh graduate can increase the

workforce.

Joining in the international trade summit can

increase the work efficiency of the employee.

Threats:

1. High terrorism risky.

2. Competitor’s smart movement

3. Composite industry.

4. Political imbalance.

5. Infrastructure problem.

ST Strategies:

Effective R&D team helps to move with the

competitors.

Focus on high production so that they can

cover the cost like composite industry.

WT Strategies:

Company can motivate the employee by

offering handsome salary to motivate them.





Topic part


Supply Chain Vs

Procurement redefining concept and trends…

Procurement is the process of getting the goods needed, whereas supply chain is the infrastructure (extensive, in many cases) needed to get those goods.

Topic Part


Prospects and

Challenges redefining concept and trends…

Topic Part

E-Procurement

Emergency procurement

Purchase Recommendation

Bill Clearance Process



Actual task part



Fabrics, Trims &

Accessories OrientationFirst FactorPrefaceCommon StaffActual Task Part



Preface

Actual Task Part

First Factor

First Meeting with Suppliers

First Assignment

First Suppliers Sourcing &

Negotiation

First Critical Situation

First Factory Visit

Test and Performance

Measurement

First Buyer Handling



Order Handle ProcessActual Task Part

Check List ReceivePO ReceivedTrims and Accessories SpecificationDetails of Trims and AccessoriesSuppliers SourcingSample DevelopmentSample ApprovalNegotiationBooking for Bulk ProductionPayment ArrangementDelivery Terms

Ex-Factory C&F FOB

Collect DocumentsMatchingFollow upGoods Received



Fabrics, Trims and Accessories Orientation



Fabrics, Trims and Accessories orientation



Fabrics, Trims &

Accessories Orientation

Actual Task Part

Fabrics

Woven Fabrics Knit Fabrics

DenimTwillRib StopHering Bon TwillPoplinSheeting

FranchteryFleachPKSingle Jersey



Fabrics, Trims &

Accessories OrientationActual Task Part

Fabrics

Pocketing Interlining

T/R PocketingT/C Pocketing

Dot FusingNo Dot Fusing


redefining concept and trends…Fabrics, Trims &

Accessories OrientationActual Task Part

Threads

Types Threads Counts

Cotton threadPolyester threadHeavy-duty threadSilk threadWool threadMetallic threadDesigner thread

TKT Tex COUNT Length/Cone10 300 20/9 1000M20 150 3-Dec 1000M24 120 16/3 1000M25 105 20/4 2000M30 80 20/3 2000M50 60 20/2 3000M60 60 30/3 2500M75 40 40/3 3000M

110 27/30 40/2 4000M120 27/30 60/3 2500M130 24 50/2 4000M180 18 60/2 5000M

Etafil 20/4 1500M

Tex vs Count


redefining concept and trends…Threads BookingActual Task Part

367/1 Senpara Parbata. Mirpur- 10 Dhaka Bangladesh.

Booking Date: 5- May- 16Supplier Name: Coats Bangladesh Ltd.

270, Novo TowerTejgaon I / A, Dhaka-1208.

Buyer Phase Booked By Style No Shade No Count Total Qty. Dealivery Date

Delivery place

BRAND

ID-107 20/3 461 coneID-107 20/2 439 cone075 BB 40/3 5492 coneID-107 40/3 124 coneH-1700 40/3 81 cone407 RA 40/3 15 cone407RA 40/3 37 cone407 RA 20/3 75 Cone407 RA 20/2 63 Cone407 RA 40/3 323 ConeDH-412 40/3 21 ConeC-9970 20/2 12 Cone407 RA 40/3 12 ConeDH-412 40/3 6 ConeH-1700 40/3 18 Cone

7178 Cone

Booking

George SS15

TRANS (Boys)

RAJ U

TRDS-001-OP8

5-May-16

J N -203 NAVY

Total

TigerMirpur

Phone : 880-2-9006232, 8020125

880-2-8054357, 8054354


redefining concept and trends…Threads Payment Actual Task Part

Name of Company :MerchandiserBuyer

Cl Sl Style Item P.O. Graments Check List Purchase Total Check List Balance dueNo. Number Name Number Quantity QTY(CONE) QTY(CONE) Price Amount For Purchase2 Crop Jegging 16024 Pcs 2214 Cone 2000 Cone $1,861.54 $2,065.89 $204.352 Elasticated Jegging 34192 Pcs 4724 Cone 4500 Cone $4,188.46 $4,417.61 $229.15

6938 Cone 6500 Cone $6,050.00 $6,483.50 $433.50

10673426Proforma Invoice Date : 18-Jan-16 Mode of Payment LC

Mode of Shipment

Initiator Approved by DMD

AMANN BANGLADESH

Thread

LC OPENING FORM

Address :Mrs. Jesmin

George cLadies

$6,050.00Proforma Invoice Value :Description of the Goods :

Name Of Company : Proforma Invoice No. :

Proforma Invoice Quantity : 6500 Cone

AMANN BANGLADESH

THREAD

Nomination status:

By buyer By buyer representative

Head of Supply ChainManager Supply Chain

Open sourcing

10673426

Supplier Details

Grand Total



Elastics

Actual Task Part

Elastic Types:Plain Elastics • Woven elastics• Knit Elastics

Adjustable/Hole Elastic

Draw Cord


redefining concept and trends…Zippers Actual Task Part

Zipper Types:Closed ended zipperOpen ended zipperTow way open ended zipperRegular 2 way zipper2 way close zipper.



Button Actual Task Part

Button Types:

Metal Button Plastic Button

Wooden Button Coconut Button

Plastic Button:

Pearl Button, Horn Button, Chalk Button, Color Logo Button, Side Logo Button, Logo Button, Fancy Button, Transparent (TPT) Button



Metal Trims Booking Actual Task Part



Label Actual Task Part

Care Label Size Label Price Label

Composition Label Special Label Flag Label.

Main label Sub-LabelHang Tag



Label Artwork ApprovalActual Task Part



Poly Actual Task Part

HDPE: High Density PolyethyleneLDPE: Low Density PolyethyleneLLDPE: Lower Low Density PolyethyleneMDPE: Medium Density PolyethylenePP: Polypropylene

Poly Types Based on UseTypes of Poly Based on Quality

Single polyBlister PolyLabel poly



CartonActual Task Part



Actual task part

Most common staff



Check ListActual Task Part



Purchase OrderActual Task Part



Proforma InvoiceActual Task Part



RecapActual Task Part



Swatch CardActual Task Part



Price Quotation Actual Task Part



Critical Observation Actual Task PartSuggestion

Procurement has an important role to produce the goods on time.It plays vital role to make profit.Procurement team has less power to make any decision without top management.Follow up is must in procurement department.Success of SCM not only depends on them but also depend on other supporting team.Others department also same liable to do the work successfully.The more you know the trims and accessories the more you will be successful in procurement.The work must have to be done with high carefully It has to be done also on time.Team member of procurement team must be skillful in computer literacy.

IDS Group can organize training program for their employee.They should increase the skill by arranging some training program.Automation system can be introduced to run the operation smoothly.Suppliers should be kept following up all the time.Buyer supplier relationship should be increased by the removing conflict among them.IDS Group should satisfy their employee so that they can work with the full dedication.One person should not do multiple jobs at a time. It disturbs to concentrate on the specific job.The employee should do their work on time.The entire department should be cooperative each other most.



Research part


redefining concept and trends…Problem DetectedResearch part

Delay Payment Settlement

Conflict Payments Terms and Condition

Cooperation

Post Purchase Behavior

Lead Time

Follow Up

“Vendors aren’t Satisfied with the Approach of Dealing with them by IDS Group”



MethodologyResearch partSampling Plan

Type of research: Exploratory ResearchPopulation: All listed vendors of IDS Group. N= 145Elements: Local and Foreign vendors.Extend: IDS Group Head office, Gulshan, Dhaka & Suppliers office.Research Duration: July 1, 2016- July 30, 2016 (30 Days)Data Source: SurveyResearch Type:ExploratoryResearch Instrument:Questionnaire with structured question containing:5 Point Likert Scale

Sampling Unit Study was done on IDS Group vendors.

Sample Size

35 Vendors of IDS Group.

Sampling Procedure

Stratified Random Sampling

Data Analysis and Presentation

The data were analyzed and presented using Microsoft Excel 2010.



Hypothesis Development and TestingResearch part

Options to Respond Weight

Strongly Agree 5

Agree 4

Neither Agree nor Disagree 3

Disagree 2

Strongly Disagree 1

H 1 HA: Payment procedure is fast and smooth in IDS Group.

H 2 HA: IDS Payment terms and condition don’t have conflict with the suppliers.

H 3 HA:Employees of procurement team are cooperative.

H 4 HA:Post purchase behavior of procurement team is satisfactory.

H 5 HA:Vendors get enough lead time to produce their goods.

H 6 HA: Procurement team always follows up with suppliers.



Hypothesis Test ResultResearch part

5 Points Likert Scale H 1 H 2 H 3 H 4 H 5 H 6

1 Strongly Disagree 12 10 1 7 6 7

2 Disagree 9 8 5 6 13 9

3 Neutral 2 2 6 7 3 2

4 Agree 4 8 14 8 9 10

5 Strongly agree 8 7 9 7 4 7

Calculated Values

Total 92 99 130 107 97 106

Average 2.63 2.83 3.71 3.02 2.77 3.03

Variance 2.52 2.37 1.18 2.00 1.72 2.14

StandardDeviation 1.59 1.54 1.08 1.41 1.31 1.46

ZTest Value 0.48 1.26 6.63 2.33 1.23 2.14

Null Hypothesis Status

N.B.: A-Accepted & R-Rejected A A R R A R



Graphical PresentationResearch part

Hypothesis #1

HO: Payment procedure is not fast and smooth in IDS Group. HA: Payment procedure is fast and smooth in IDS Group.

Ho: μ =2.5HA: μ ≠2.5n = 35x = 2.63Standard Deviation σ = 1.59Z cal= (x -μ)/ (σ/√n) = 0.48

At the 5% significant level, the value of Z in Z- distribution table is -1.96˂Z.05˂1.96. Since Zcal˂1.96, null hypothesis is accepted. So at 5 % significant level, we can say that, Payment procedure is not fast and smooth in IDS Group.

34%

26%6%

11%

23%Strongly Disagree

Disagree

Neither Agree nor Disagree

Agree

Strongly Agree



Research part

Hypothesis #2

HO: IDS Payment terms and conditions have conflict with the suppliers.HA: IDS Payment terms and conditions don’t have conflict with the suppliers.

Ho: μ =2.5 HA: μ ≠2.5 n = 35 x= 2.83Standard Deviation σ = 1.54 Z cal= (x -μ)/ (σ/√n) = 1.26

At the 5% significant level, the value of Z in Z- distribution table -1.96˂Z.05˂1.96. Since Zcal˂1.96, null hypothesis is accepted. So at 5 % significant level, we can say that, IDS Payment terms and conditions have conflict with the suppliers.

29%

23%6%

23%

20%

Strongly DisagreeDisagreeNeither Agree nor DisagreeAgreeStrongly Agree

Graphical Presentation



Research part

Hypothesis #3

HO: Employees of procurement team aren’t cooperative.HA: Employees of procurement team are cooperative.

Ho: μ =2.5 HA: μ ≠2.5 n = 35 x= 3.71Standard Deviation σ = 1.08 Z cal= (x -μ)/ (σ/√n) = 6.63

At the 5% significant level, the value of Z in Z- distribution table is -1.96˂Z.05˂1.96. Since Z cal˃1.96, null hypothesis is rejected. So at 5 % significant level, we can say that, Employees of procurement team are cooperative.

3%

14%

17%

40%

26%

Strongly Disagree

Disagree

Neither Agree nor Disagree

Agree

Strongly Agree




Research part

Hypothesis #4

HO: Post purchase behavior of procurement team isn’t satisfactory.HA: Post purchase behavior of procurement team is satisfactory.

Ho: μ =2.5 HA: μ ≠2.5 n = 35 x= 3.02 Standard Deviation σ = 1.41 Z cal= ( x-μ)/ (σ/√n) = 2.33

At the 5% significant level, the value of Z in Z- distribution table is -1.96˂Z.05˂1.96. Since Zcal˃1.96, null hypothesis is rejected. So at 5 % significant level, we can say that post purchase behavior of procurement team is satisfactory.

20%

17%

20%

23%

20%Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree




Research part

Hypothesis #5

HO: Vendors don’t get enough lead time to produce their goods.HA: Vendors get enough lead time to produce their goods.

Ho: μ =2.5 HA: μ ≠2.5 n = 35 x= 2.77Standard Deviation σ = 1.31 Z cal= ( x-μ)/ (σ/√n) = 1.23

At the 5% significant level, the value of Z in Z- distribution table is -1.96˂Z.05˂1.96. Since Zcal˂1.96 tab, null hypothesis is accepted. So at 5 % significant level, we can say that, Vendors don’t get enough lead time to produce their goods.

17%

37%9%

26%

11% Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree




Research part

Hypothesis #6

HO: Procurement team doesn’t follow up with the suppliers always.HA: Procurement team follows up with the suppliers always.

Ho: μ =2.5 HA: μ ≠2.5 n = 35x= 3.03Standard Deviation σ = 1.46 Z cal= (x -μ)/ (σ/√n) = 2.14

At the 5% significant level, the value of Z in Z- distribution table is -1.96˂Z.05˂1.96. Since Zcal˃1.96, null hypothesis is rejected. So at 5 % significant level, we can say that, procurement team follows up with the suppliers always.

20%

26%

6%

29%

20%

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree




FindingsResearch part

Maximum 34% respondents are strongly disagreed with the statement “payment is fast and smooth in IDS Group”Maximum 28% respondents are strongly disagreed with the statement “payment terms and condition don’t have conflict with IDS Group”.Maximum 40% respondents are agreed with the statement “employees of procurement team are cooperative”.Maximum 23% respondents are agreed with the statement “post purchase behavior of procurement team is satisfactory”Maximum 37% respondents are disagreed with the statement “vendors get enough lead time to produce their goods”Maximum 28% respondents are agreed with the statement “procurement team follow up with suppliers”



Recommendation Research part

Payment process should be done with the due time. Accounts department should handle the payment process instead of engaging others department.IDS Group should be flexible with payments terms and condition. They should allow supplier’s terms and condition. They can offer multiple option.Without cooperation it is impossible to do business smoothly. So, procurement team should be more cooperative with the suppliers. Post purchase behavior is important for long term business. So, procurement team should be more respectable with the suppliers.For getting quality raw materials IDS Group should give enough time to the suppliers. They can place the booking few days earlier. They should give more time to the suppliers.Follow up is the main tools for getting the goods on time. IDS Group can introduce automatic software for following up.


redefining concept and trends…Interactive Session


redefining concept and trends…Conclusion

Ready Made Garments is the main sources of foreign remittance. It has strengthened our economy. RMG sector has become more competitive in Bangladesh. Most of the industry is rising quickly. IDS Group is the fasted growing garments industry in Bangladesh. Within a very shortage possible time it has entered into the maximum market. IDS mission and long term vision is very much high ambitious and helping them to go forward. This group is going to introduce the green factory to get attention of the buyers. IDS has already entered the most dominated and competitive market in the world. This group is fully compliance factory with strong human resources. It has engaged the social activities. With the aim of redefining the concepts and trends it is working hard to reach its goal. In spite of some drawback, it is moving faster towards its goal. With the strong marketing and R&D team it will be able to reach in the peak of success.



Thank you

For your nice cooperation….