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Supply Chain Management of Rahimafrooz Batteries Limited

(RBL)

1. INR!"#CI!N

Asupply chainis a network of facilities and distribution options that performs the functions

of procurement of materials, transformation of these materials into intermediate and finished

products, and the distribution of these finished products to customers. Supply chains exist in

both service and manufacturing organizations, although the complexity of the chain may vary

greatly from industry to industry and firm to firm. Supply chain management, then, is the

activemanagement of supply chain activities to maximize customer value and achieve a

sustainable competitive advantage. It represents a consciouseffort by the supply chain firms

to develop and run supply chains in the most effective & efficient ways possible. Supply

chain activities cover everything from product development, sourcing, production, and

logistics, as well as the information systems needed to coordinate these activities.

he organizations that make up the supply chain are !linked" together through physical flows

and information flows. #hysical flows involve the transformation, movement, and storage of

goods and materials. hey are the most visible piece of the supply chain. $ut %ust as

important are information flows. Information flows allow the various supply chain partners to

coordinate their longterm plans, and to control the daytoday flow of goods and material up

and down the supply chain.

Supply chain management is typically viewed to lie between fully vertically integrated firms,

where the entire material flow is owned by a single firm, and those where each channel

member operates independently. herefore coordination between the various players in the

chain is key in its effective management. 'ooper and (llram compare supply chainmanagement to a wellbalanced and wellpracticed relay team. Such a team is more

competitive when each player knows how to be positioned for the handoff. he relationships

are the strongest between players who directly pass the baton, but the entire team needs to

make a coordinated effort to win the race.

1.1 Supply Chain

All stages involved, directly or indirectly, in fulfilling a customer re)uest are called supply

chain. It includes manufacturers, suppliers, transporters, warehouses, retailers, and customers.

*ithin each company, the supply chain includes all functions involved in fulfilling a

customer re)uest +product development, marketing, operations, distribution, finance,

customer service. 'ustomer is an integral part of the supply chain. It includes movement of

products from suppliers to manufacturers to distributors, but also includes movement of

information, funds, and products in both directions. It is more accurate to use the term

!supply network" or !supply web".

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1.$ %lo&s in a Supply Chain

1.' Supply hain stages

'ustomers

-etailers

istributors

/anufacturers

Suppliers

All stages may not be present in all supply chains. So, Supply chain management is the

management of flows between and among supply chain stages to maximize total supply chain

profitability.

1.* he +oal of a Supply Chain

1. Maximize overall value created:

Supply chain value is the difference between what the final product is worth to the customer

and the effort the supply chain expends in filling the customer0s re)uest. 1alue is correlated to

supply chain profitability +difference between revenue generated from the customer and the

overall cost across the supply chain.

2. Maximize total supply chain profitability:

Supply chain incurs costs +information, storage, transportation, components, assembly, etc..

Supply chain profitability is total profit to be shared across all stages of the supply chain.

Supply chain success should be measured by total supply chain profitability, not profits at an

individual stage. Sources of supply chain revenue2 the customer Sources of supply chain cost2

flows of information, products, or funds between stages of the supply chain

Materials, Information, Invoicing

Suppliers Manufacturers Dealers Customers

After-sales service, Order information, funds

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342 A Schematic of a Supply 'hain

$.C!M,-N B-C/+R!#N"

-ahimafrooz is one of the respected and reputed business houses in $angladesh. It has %ust

crossed 56 years of operation. -ahimafrooz has endured turbulences of the last 56 years and

has been able to transform itself from a small trading company into a leading diversified

business house. his is, indeed, a milestone, which -ahimafrooz has achieved with trust,

support and dedication of all stakeholders, past and present, most importantly, its

customers. -ahimafrooz began its operation as a trading company in 7859. oday

-ahimafrooz has diversified in many areas from storage power solution to automotive

aftermarket to retailing.

-ahimafrooz operates in three broad domains2 automotive after market, power and energy,

and retail chain. It sells tyres, batteries, lubricants, emergency power products, diesel as wellas gas generators, lighting products, electrical accessories, solar systems, energy solutions

using compressed natural gas, and power rectifiers. he 4roup also runs :Agora: the first

retail chain in $angladesh. he 4roup0s portfolio includes international tyre brands unlop

and ;enda, and its own brand -< yre. -ahimafrooz is the exclusive franchisee of the full

range of world0s leading lubricant brand 'astrol in $angladesh.

hrough -ahimafrooz I#S, =#S and 1oltage Stabiliser, the 'ompany en%oys clear leadership

of the emergency power products market. he 'ompany brings to $angladesh leading gas

and diesel generator brands > #ramac as well as /itsubishi. It also markets home and

industrial lighting products from 4eneral (lectric =SA +4( and electrical accessories from

?ager 3rance. -ahimafrooz0s -enewable (nergy division has been providing Solar solutions

in collaboration with $ritish #etroleum +$#.

Rahimafrooz

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he 'ompany, in recognition of its solar efforts, received the /c4raw?ill #latt 4lobal

(nergy Award in @669 and the 4lobal Ashden Award in @66. -ahimafrooz also offers

comprehensive solution provider for 'B4 refuelling, conversion, conversion centres, and

maintenance. -ahimafrooz is also endeavouring into tyre retread, besides manufacturing and

marketing emery cloths and abrasive papers. In a %oint venture, the 4roup has enterprised intothe first ever fibre optical commercial networking backbone in $angladesh in the form of

/etronet $angladesh Ctd. +/$C.

-ahimafrooz, in @667, made a breakthrough in the urban lifestyles by launching the first

retail chain in the country > -gora.Dne of the S$=s of -ahiamfrooz 4roup, -ahimafrooz

-enewable (nergy Ctd. distributes solar home systems to underdeveloped rural regions of

$angladesh. 3or that, the company received the-shden -&ardfor Sustainable

(nergy in @66. he 4roup has strengthened its market leadership at home while reaching

out to international markets. -anging from automotive after market products, energy and

power solutions, to a world class retail chain > the committed team at -ahimafrooz is

determined to ensure best in class )uality standards and living the 4roup0s four core values

Integrity,

(xcellence,

'ustomer elight and

Innovation.

0ISI!N

$e an enterprising 4roup of aka @,666 crore by the year @676 with a diversified business

portfolio focused on dynamic growth, excellence, innovation, customer delight in enriching

our world.

#-LI ,!LIC

-ahimafrooz as a team are totally committed to customer delight through intelligent effort

and continuous improvement.

-S,IR-I!N

o be the most admired and trusted organization through excelling in everything-ahimafrooz do, following ethical business practices and adding value to stakeholders.

0-L#2S

Integrity in all their dealings

(xcellence in everything they do

otal commitment to customer satisfaction

hinking ahead and taking new initiatives

2-M

-ahimafrooz foster en environment of learning and reward, taking pride in who they are and

what they do.

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!#R C!MM#NI

-ahimafrooz strongly believes that doing good business means being good corporate citizen.

he company always takes pride in serving the stakeholders and community in multifaceted

ways.

+lo3al Compat -ahimafrooz is a signatory of the 4lobal 'ompact, a =B initiative that setsstandard on ?uman -ights, Cabor -elations, (nvironmental and (thics.

2n4ironment

2n4ironment Management System (2MS) hey have taken comprehensive measures to

protect environment, complying not only to local re)uirements but also with ISD 79667.

Safe "isposal and Reyling of #sed Batteries -ahimafrooz has undertaken a nationwide

campaign to promote safe battery disposal and recycling of used battery.

Community Ser4ies -ahimafrooz regularly contribute personal, monetary and medical help

to people disadvantaged by natural calamities and serious illness. -ahimafrooz also makessignificant contribution to leading diabetic and cancer hospitals.

$.1SB#s and -ffiliations

51. Rahimafrooz Batteries

Limited

#roduces all kinds of automotive and industrial batteries

and one of the largest battery manufacturers in the

SAA-' regionE exports batteries in more than 78

countries

5$. Rahimafrooz "istri3ution/aintains nationwide distribution network with more

Rahimafrooz Batteries Limited

Rahimafrooz CNG Limited

!cel Retread Limited

Rahimafrooz "istri#ution Limited

$B%&s

Rahimafrooz $u'erstores Limited

Rahimafrooz nerg( $ervices Limited

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Limited than 966 outlets covering entire $angladeshE distributes

mainly automotive and appliance battery, tyre, I#S, =#S

and lubricants.

5'. Rahimafrooz SuperstoresLimited (merges as leading chain superstore in $angladesh,mainly covering haka /etropolitan 'ity areaE carries

more than @5,666 varieties of product.

5*. Rahimafrooz CN+ Limited Involves in setting up 'B4 stationsE facilitates

establishing 'B4 conversion centersE converts

automobiles into 'B4 and provides technical solution

and support.

56. Rahimafrooz 2nergy Ser4ies

Limited

#rovides uninterrupted and clean power and a fast

growing power services companyE establishes with

ob%ective to meet country:s growing demand for power

57. 28el Retread Limited -etreads all types of tyres from cars to busesFtrucksE one

of the leading tyre retread centers

$.$Rahimafrooz BatteriesLimited (RBL)

-ahimafrooz $atteries Cimited +-$C is the largest leadacid battery manufacturer in

$angladesh and offers an extensive range of automotive & customized industrial battery. It is

one of the respected and reputed business houses in $angladesh. It produces all kinds of

automotive and industrial batteries. It manufactures over G66 different types of automotiveand industrial batteries. Its plant is ISD 8667 & ISD 79667 certified. -$C has also extended

its product line to secure power solution with =#S, -ectifier and 1-CA $atteries with

collaboration of (nersys=SA, (ltekBorway, A((S3rance. -$C has a successful story of

installing solar power in the remote rural areas of $angladesh. It has successfully installed

more than 76,666 home solar systems in the remote rural areas of $angladesh.

-ahimafrooz produces and markets a range of battery products > automotive, motorcycle, and

appliance batteries, Industrial +deep cycle, traction, 1-CA batteries, I#S and =#S batteries,

and rectifiers. Cucas and Spark are the leading names in the local battery market while 1olta,

Dptus and elta batteries are fast gaining e)uity as International brands.

he company has been serving this market for the past fifty years by introducing innovative

products. -ahimafrooz $atteries Cimited +-$C is one of the key players in South Asia in its

field and one of the largest battery manufacturers in the SAA-' regionE *ith undisputed

market leadership at home, exports batteries in more than G5 countries in Asia, /iddle (ast,

Africa & South America. he 'ompany has embarked upon an aggressive growth plan that

includes becoming a significant global player in the international battery market.

0ision $515

o be one of the top two storage power companies in SAA-' by the year @676

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Brands

Cucas

Dptus

-ahimafrooz

Spark1olta

$.$.1 ,lant Capaity

-ahimafrooz has state of the art manufacturing plant. It is e)uipped with all latest

technologies with complete air treatment and leadrecycling management. -$C produces

different types of batteries to meet the local and international market. Its capacity in

Automotive $attery is 6,666 +B56 units per annum and Industrial $attery is 97 million

A?Fannum. $y the end of @66H production capacity of Industrial $attery will be increase to7@6 /illion A?. All the products are manufactured under strict )uality control and ensured

by international certifications.

$.$.$ Colla3oration -greements

It has different technical collaboration agreements with Cucas $attery 'ompany, =.;,

echnical support 4roup +S4, ?awker $atteries, =;, Invensys, =;, ?awker $atteries,

=;, (ltek > Borway, A((S > 3rance to ensure the )uality of battery.

$.$.' ,erformane

SB#9s Contri3ution to +roup Sales

Battery

Contri3ution

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Battery ,rodution

Sales of Battery

$.$.* Net&or:

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$.6 ,rodut !4er4ie&

-ahimafrooz markets three ma%or brands of automotive batteries2 C='AS, 1DCA and

S#A-;. All the batteries are produced under strict )uality controlled plant of the

-ahimafrooz $atteries Ctd. It has introduced new brand S#A-; for the taxi cab. his

specially designed to take the load and fre)uency of the taxi cab.

Luas -utomoti4e "ry Charge Battery

7@ 1olt $attery

4erman rive -ange

?eavy uty -ange 1olt $atteries

Cucas #'/

-ahimafrooz manufactures specialized Industrial $atteries. he plant is e)uipped with

modern production machineries and testing facilities including those for tubular plates. It

conforms to international standard ISD 8667 & ISD 79667and to IS, IB, $S and I('

specification. It produces a wide range of leadacid industrial batteries with capacities from

@6A? to @566A?. he batteries are used for applications in telecommunication, power

station, railway system, electric vehicle, forklift, ship, buoy lighting and solar power system.

Industrial Batteries

eep 'ycle

(lectric 'ar $attery

I#$ $attery

Standby Stationary

raction

Speifi features of our industrial 3attery are

Cong life

/inimum maintenance

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Cow internal resistance

?igh rate of discharge performance

?igh resistance to adverse mechanical and electrical condition

olerance to extremes of temperature

Speial %eatures

(xcellent cycling ability provides high reliability and exceptionally long life

Carge electrolyte reservoir means high tolerance to water loss and minimal maintenance.

?igh charging efficiency

Cow self discharge, dry precharged plates

-obust, clear case and rugged construction ensures mechanical durability

he )uality, dependability, reliability and long service life of thicker 3lat #late deep cyclebatteries are the result of balanced design of the plates, separators and incorporation of latest

technical developments in lead acid battery technology.

$. Supply Chain Management of RBL

-ahimafrooz istribution Cimited +-Cinvolves in the marketing and distribution of a wide

range of products through its nationwide distribution network. It deals mainly with tyres,

automotive batteries, Instant #ower system +I#S, =#S and lubricants. Its batteries are

produced in -ahimafrooz $atteries Cimited+-$C, which is ISD 866@ and 79667certified.

'ommitment to )uality and customer satisfaction has been a motivating force behind the

success of -C. -C markets three ma%or brands of automotive batteries2 C='AS, 1DCA,1DCA /3 +/aintenance 3ree and S#A-;. All batteries are produced by -$C.

'.1 !3;eti4e

Supply -ight products in -ight place in -ight time. he main ob%ective of -$C supply chain

is to minimize total supply chain cost to meet fixed and given demand, where the total cost is

composed of raw material and other ac)uisition costs, inbound transportation costs, facility

investment costs, direct and indirect manufacturing costs, direct and indirect distribution

center costs, inventory holding costs, interfacility transportation costs, and outbound

transportation costs.

'.$ Supply Chain of RBL

A complete and integrated Sales and istribution network is inevitable to make the products,

services and related information available to the customers. -$C has own strong distribution

network -C which is highly disciplined and organized Sales and istribution department to

maintain smooth supply of their products, services and related information to fulfill the

re)uirement of valued customers. he company virtually covers every single corner of the

rural as well as urban area of $angladesh. he company has a very large and competent

having 957 dealers and H distributors to ensure product availability throughout the country.

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'.$.1 Stages of supply hain

Stages of supply chain in -$C are as follows2

'ustomers2-$C target customers are automotive after market for battery.

-etailers2 -C has more than 956 dealers all over the country through which -$C distribute

the batteries and sale to final users.

istributors2-$C has H exclusive distributors in the country who are controlling the dealers,

obtaining information related to supply and demand of battery, handling customer companits

etc.

/anufacturers2he main manufacturing plant of -ahimafrooz $atteries Cimited +-$C is

situated in Bakalpara, haka.

Suppliers2-$C has many suppliers for their lead acid, packaging, accessories etc.

'.$.$ he Cyles of Supply Chains

#rocesses in a supply chain are divided into a series of cycles, each performed at the

interfaces between two successive supply chain stages. (ach cycle occurs at the interface

between two successive stages

'ustomer order cycle +customerretailer

LeadAcid$u''lier)lat

e$u''lier)ac*agin

g$u''lierAccessor

($u''lier

$tore

Na*al'ara +actor( Finished Goods

Central arehouse

Regional $torehouse"istri#utors"ealersCustomers

RBL&s $u''l( Chain

Product Flow

Information Flow

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-eplenishment cycle +retailerdistributor

/anufacturing cycle +distributormanufacturer

#rocurement cycle +manufacturersupplier

'ycle view clearly defines processes involved and the owners of each process. (ach cycle

specifies the roles and responsibilities of each member and the desired outcome of eachprocess.

[email protected] 'ycles of Supply 'hain of -$C

'ustomer order cycle

+'ustomerdealer

-eplenishment cycle

+ealerdistributor

/anufacturing cycle+istributor-$C

#rocurement cycle

+/anufacturersupplier

'ustomer order cycle

Cike other cycle, in customer cycle consists of following subprocess

'.' Supply Chain "eisions in RBL

*e classify the decisions for supply chain management of -$C into two broad categories

strategic and operational. As the term implies, strategic decisions are made typically over a

longer time horizon. hese are closely linked to the corporate strategy the corporate strategy,

and guide supply chain policies from a design perspective. Dn the other hand, operational

decisions are short term, and focus on activities over a daytoday basis. he effort in these

types of decisions is to effectively and efficiently manage the product flow in the

JstrategicallyJ planned supply chain. In -$C, there are four ma%or decision areas in supply

chain management2

7 Cocation,

@ #roduction,

RBL An fficient $u''l( Chain

Customer Order

Re'lenishment

Manufacturing

)rocurementC(cle

Customer

"ealers

RBL

$u''lier

RBL $tageMarketsProduct

Bu(erstagePlacesorder

RBL$tageReceivesorder

Bu(erstageDeliverorder

RBL$tageReceives

goods

Bu(er stageReturns ifany flaws

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G Inventory, and

9 ransportation +distribution,

'.'.1 Loation "eisions

he geographic placement of production facilities, stocking points, and sourcing points is thenatural first step in creating a supply chain. In -$C, the location of facilities involves a

commitment of resources to a longterm plan. he management established production

facilities in haka with large size production units by which the product flows through to the

final customer. hese decisions are of great significance to -$C since they represent the basic

strategy for accessing customer markets, and will have a considerable impact on revenue,

cost, and level of service. -$C determines the decisions an optimization routine that

considers production costs, taxes, duties and duty drawback, tariffs, local content, distribution

costs, production limitations, etc. Although location decisions are primarily strategic, they

also have implications on an operational level.

'.$.$ ,rodution "eisions

he strategic decisions include what products to produce, and which plants to produce them

in, allocation of suppliers to plants, plants to ':s, and ':s to customer markets. As before,

these decisions have a big impact on the revenues, costs and customer service levels of the

firm. hese decisions assume the existence of the facilities, but determine the exact path+s

through which a product flows to and from these facilities. Another critical issue is the

capacity of the manufacturing facilitiesand this largely depends the degree of vertical

integration within the firm. Dperational decisions focus on detailed production scheduling.

hese decisions include the construction of the master production schedules, scheduling

production on machines, and e)uipment maintenance. Dther considerations include workload

balancing, and )uality control measures at a production facility.

'.$.' In4entory "eisions

hese refer to means by which inventories are managed. In -$C, inventories exist at every

stage of the supply chain as either raw material, semifinished or finished goods. hey can

also be inprocess between locations. heir primary purpose of -$C to buffer against any

uncertainty that might exist in the supply chain. Since holding of inventories can cost

anywhere between @6 to 96 percent of their value, their efficient management is critical in

supply chain operations. he top management of -$C sets goals. ?owever, -$C

management has approached the management of inventory from an operational perspective.hese include deployment strategies +push versus pull, control policies the determination

of the optimal levels of order )uantities and reorder points, and setting safety stock levels, at

each stocking location. hese levels are critical, since they are primary determinants of

customer service levels.

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342 /onthly Drder Size =nits for 'entral *arehouse for the Kear @66L

342 /onthly Drder Size =nits for istributor *arehouse for the Kear @66L

342 /onthly Drder Size =nits for dealers for the Kear @66L

'.$.* ransportation "eisions

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he mode choice aspects of these decisions are the more strategic ones. hese are closely

linked to the inventory decisions, since the best choice of mode is often found by tradingoff

the cost of using the particular mode of transport with the indirect cost of inventory

associated with that mode. In $angladesh, -$C uses ruck as transport modes to send the

batteries to final consumers. hey have strong transport modes by which -$C is able to

handle the transport costs efficiently and timely. 3or exporting batteries in foreign countries,-$C is shipping by sea, but they necessitate holding relatively large amounts of inventory to

buffer against the inherent uncertainty associated with them. herefore customer service

levels and geographic location play vital roles in such decisions. Since transportation is more

than G6 percent of the logistics costs, operating efficiently makes good economic sense.

Shipment sizes CotforCot, routing and scheduling of e)uipment are key in effective

management of the -$C:s transport strategy.

'.*Supply Chain Model < -hie4ing Strategi %it

-$C0s supply chain model works on basically aligning the competitive & supply chain

strategies. he 'ompetitive Strategies of -$C are as follows2

(nsuring Cower 'ost at all levels

ifferentiated products and service with cost efficiency

$ased on this -$C has designing their supply chain strategy as follows for achieving

strategic fit2

?igh )uality products

3ast elivery with cost efficiency

(nsuring ?igh Muality & Safety

S

R

-

2

+

I

C

%

I

Negotiate Land in$trategic Location

.ith RBL

/igh 0ualit(1 $afet(

"esign$ourcing )lan

+ast "eliver( .ith

cost efficienc(

Negotiate O'timalConstruction Cost

nsuring Lo.er Cost

at all levels

"ifferentiated

$ervice .ith costefficienc(

RBL&s $u''l( Chain $trategies forachieving strategic +it

COM)2I2I3 $2RA2GI$

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'.6Rahimafrooz Batteries Ltd (RBL) -n 2ffiient Supply hain

-ahimafrooz $atteries Ctd +-$C has an efficient supply chain. hey focus more on cost

effective delivery than faster or )uicker delivery. So their customer order cycle or the -$C0s

order cycle occurs after they have managed their inventory and other supplies ready to deliver

the productions. /eans their manufacturing, procurement & replenishment cycle occursbefore their customer order cycle. he customer order cycle occurs after -$C0s replenishment

cycle, manufacturing & procurement cycle. So their Supply chain is efficient.

Cogistical & 'ross functional rivers of -$C0s Supply 'hain2

$ased on -$C0s corporate strategy -$C

designs their logistical and other cross

functional drivers0 strategies. Cike any other

supply chain -$C also have G logistical

drivers as the facilities, inventory and

transportations and have other G crossfunctional drivers such h as information

system, sourcing and pricing. As -$C0s key

focus is to provide an efficient supply chain

based workflow so they maintain different

levels of efficiency and responsiveness.

3ollowing is the description of the level of

responsive and efficiency for their logistical

and cross functional drivers2

-$C follows efficiency for their facilities

or production levels.

-$C tries to maintain responsive

inventory management all through their

supply chain.

-$C has an efficient transportation

system for their supply chain. hey have

more than 7@6 trucks to carry goods.

3or the other cross functional driverssuch as sourcing and pricing -$C is efficient but they maintains responsive information

structure at their supply chain.

Sourcing

Sourcing is the set of business processes re)uired to purchase goods and services. Sourcing

processes include2

Supplier scoring and assessment

Supplier selection

#rocurement

R

E

REfficient Res'onsive

RBL=s Corporate Strategy

RBL=s Supply Chain Strategy

RBL deision Ma:ing

E E

R E

fficient

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Sourcing planning and analysis

Sourcing2 -ole in the 'ompetitive Strategy

3irms can utilize optimal pricing strategies to improve efficiency and responsiveness

Cow price and low product availabilityE vary prices by response times

Supplier -ssessment %ators

-$C assesses the following factors during selecting suppliers >

-eplenishment Cead ime

Dnime #erformance

Supply 3lexibility

elivery 3re)uency F /inimum Cot Size

Supply Muality

Inbound ransportation 'ost

#ricing erms

Information 'oordination 'apability

(xchange -ates, axes, uties

Supplier 1iability

,rourement

he process in which the supplier sends product in response to orders placed by the buyer is

called the procurement process. 4oal is to enable orders to be placed and delivered on

schedule at the lowest possible overall cost. here are two main categories of purchasedgoods2

irect materials2 components used to make finished goods

Indirect materials2 goods used to support the operations of a firm

-$C periodically analyze its procurement spending and supplier performance and use this

analysis as an input for future sourcing decisions #rocurement spending is analyzed by part

and supplier to ensure appropriate economies of scale.

Information ehnology in a Supply Chain

Information echnology +I plays the following roles in -$C0s Supply 'hain2

I used throughout the supply chain to gather and analyze information

'aptures and delivers information needed to make good decisions

Information is the driver that serves as the !glue" to create a coordinated supply chain.

Information must have the following characteristics to be useful2

Accurate

Accessible in a timely manner

Information must be of the right kind

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Information provides the basis for supply chain management decisions

Inventory2 demand patterns, carrying costs, stockout costs, ordering costs

ransportation2 costs, customer locations, shipment sizes

3acility2 location, capacity, schedules of a facilityE need information about tradeoffs

between flexibility and efficiency, demand, exchange rates, taxes, etc.

(ffective use of I in the supply chain can have a significant impact on supply chain

performance. I helps managers in the following ways >

-elevant information available throughout the supply chain allows managers to make

decisions that take into account all stages of the supply chain

Allows performance to be optimized for the entire supply chain, not %ust for one stage >

leads to higher performance for each individual firm in the supply chain

G.Information echnology Infrastructure of -$C

7. 'ustomer -elationship /anagement +'-/

his takes place between an enterprise and its customers downstream in the supply chain.

;ey processes of '-/ of -$C are2

/arketing

SellingDrder management

/aintenance Service center

'. Internal Supply Chain Management (ISCM)

IS'/ includes all processes involved in planning for and fulfilling a customer order. IS'/

processes2

Strategic #lanning

emand #lanning

Supply #lanning

3ulfillment

$u''lierRelationshi'Management

4$RM

Internal $u''l( Chain

Management 4I$CM5

CustomerRelationshi'Management

4CRM5

2ransaction Management +oundation 42+M5

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'ustomer Service

9. Supplier Relationship Management (SRM

hose processes focused on the interaction between the enterprise and suppliers that are

upstream in the supply chain. ;ey processes of S-/ are2

Source

Begotiate

$uy

Supply

'ollaboration

'.>he 0alue Chain

Cinking Supply 'hain and 'orporate Strategy of -$C

'omponents of value chain of -$C are >

Competiti4e strategy

-$C seeks to satisfy customers offering high )uality and innovative products with reasonable

price.

,rodut de4elopment strategy

#roduct development strategy specifies the portfolio of innovative batteries that the -$C will

try to develop

Mar:eting and sales strategy /arketing and sales strategy specifies how the market will

be segmented and product positioned, priced, and promoted. 3or example, Cucas and Spark

battery for local market and 1olta is for international market.

Supply chain strategy2

Supply chain strategy of -$C determines the material procurement, transportation of

materials, transportation of goods, and manufacture of batteries or customer maintenance

service, distribution of product.

3ig2 he 1alue 'hain

Responsi4eness Spetrum

New

Product

Development

Maretin!

and

"ales

#perations Distribution "ervice

$inance% &ccountin!% 'nformation (echnolo!y% )uman *esources

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)i!hly

efficient

"omewhat

efficient

"omewhat

responsive

)i!hly

responsive

RBL

-$C is some what responsive in fulfilling customer0s demands and some what efficient to

deliver )uality products timely with a affordable price. -$C is implied by ability to >

respond to wide ranges of )uantities demanded

meet short lead times

handle a large variety of productsbuild highly innovative products

meet a very high maintenance service level

3ig2 -esponsiveness Spectrum of -$C

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'.?he ransation Management of RBL

-$C uses an (nterprise Software System +(SS for maintaining its transactions.

Order collection#( dealers

Orders su#missionto distri#utors

Orders )rocessing#( $$

Creatingchallan

)re'aring"eliver( )ac*age

"eliver( #(dealers

Mone( collection#( dealers

$u#mission to thedistri#utors orregional office

Ad6ustment #(R) 4If an(5

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'.@ "istri3ution Net&or: "esign of Rahimafrooz Batteries Limited (RBL)

he steps taken to move and store a product from the supplier stage to the customer stage in asupply chain is called distribution. istribution directly affects cost and the customer

experience and therefore drives profitability. 'hoice of distribution network can achieve

supply chain ob%ectives from low cost to high responsiveness. istribution network

performance evaluated along two dimensions at the highest level2

'ustomer needs that are met

'ost of meeting customer needs

2lements of ustomer ser4ie influened 3y net&or: struture

-esponse time

#roduct variety

#roduct availability

'ustomer experience

Drder visibility

-eturnability

Supply hain osts affeted 3y net&or: struture

Inventories

ransportation

3acilities and handling

Information

Distribution Network Design of Rahimafrooz Batteries Limited (RBL) are as follows2

'[email protected] Storage &ith Customer ,i:up

-$C has 956 over dealers in the country who are retailing the -$C0s batteries. 'ustomer

collects batteries from dealers. *hen they sell the customer, they give a '3M 'ard for

customer feedback.

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'.@.$. "istri3utor Storage &ith Carrier "eli4ery

3or electric and industrial batteries -$C re)uires special storage conditions

"istri#utor7"ealer

RBL

)roduct +lo.

Information +lo.

"ealers

RBL

)roduct +lo.

Information +lo.

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'.@.'Manufaturer Storage &ith "iret Shipping

G.8.9istribution of -$C0s batteries in foreign market

"istri#utor7"ealer

RBL

)roduct +lo.

Information +lo.

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Distributor Distributor Distributor Distributor Distributor

Region 8 Region 9 Region :

National 2arget

Distributor

Forecast flow

Demand flow

'.15 %oreasting and produt "istri3ution of RBL

-ole of 3orecasting in a Supply 'hain

he basis for all strategic and planning decisions in a supply chain

=sed for both push and pull processes. (xamples2

#roduction2 scheduling, inventory, aggregate planning

/arketing2 sales force allocation, promotions, new production introduction

3inance2 plantFe)uipment investment, budgetary planning#ersonnel2 workforce planning, hiring, layoffs

All of these decisions are interrelated

%oreasting and produt "istri3ution proess of RBL

/onthly forecast for product sales is a top down process in -$C. 3irst local target is place

and then it is distributed to the regions and then to individual depots. $ut the demand flow is

a bottom up process in -$C which originates from dealers and then goes to distributors. he

estimates of level, trend, and seasonality are ad%usted after each demand observation.

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Impro4ed %oreasting

Redue Material %lo& ime

Redue Aaiting ime

Redue Buffer In4entory

2onomies of SaleSupply "emand

0aria3ility

Seasonal

0aria3ility

Cyle In4entory Safety In4entory Seasonal In4entory

"emand

Mathing of Supply and

'.11 In4entory Management

Inventory management process of -$C can be explained by the following diagram >

Aggregating across products, retailers, or suppliers in a single order allows for a reduction in

lot size for individual products because fixed ordering and transportation costs are now

spread across multiple products, retailers, or suppliers. $enefits getting by -$C through

aggregate planning are same overall fixed cost, shared over more than one product, effective

fixed cost is reduced for each product, lot size for each product can be reduced All dealers

and distributors of -$C keeps 5N safety inventory for responding customer demand.

C!NCL#SI!N

he supply chain of -ahimafrooz $atteries Cimited +-$C is made up of all the activities

re)uired to deliver products to the customer, from designing product to receiving orders,

procuring materials, marketing, manufacturing, logistics, customer service, receiving

payment and so on. Anyone, anything, anywhere that influences a product0s timetomarket,

price, )uality, information exchange or delivery, among other activities, is part of the supplychain.

(ffectively integrating the information and material flows within the demand and supply

process is what supply chain management is all about. In most companies, however, two

ma%or and very interdependent issues must be simultaneously addressed. he first deals with

delivering products with customeracceptable )uality, with very short lead times, at a

customeracceptable costOwhile keeping inventories throughout the supply chain at a

minimum. he second issue, which tends to be less understood and accepted, is the need for

high)uality, relevant and timely information that is provided when it needs to be known. 3or

many customers and manufacturers, business processes and support systems will not measure

up to the task of )uickly providing planning and execution information from the marketplace

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to production and on to vendors so that the customer0s ob%ectives are consistently met. he

fact is most information supplied is excessive, often late and fre)uently inaccurate.

As a final point, it is articulated that, -ahimafrooz $atteries Cimited +-$C is following

different strategies, taking different decisions, planning and operation, selecting right

distribution network to make their supply chain efficient and respond to customer demandstimely by delivering )uality products and service to customers. o evaluate their supply chain

performance, they follow a checklist and are assessed by top management of -$C.