Assignment on - S C M

8/13/2019 Assignment on - S C M

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Assignment On

Supply Chain

Management System

Of Aarong


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Executive Summary

In todays competitive world of Business competitive

advantage can be gain by proper information system and

developing that information system. Aarong information

system is a sign of the modern business organiation of

Bangladesh. Aarong is a chain of retail outlet located in

ma!or cities in Bangladesh an enterprise of B"AC. It

established in #$%&' Aarong is a fair trade organiation

dedicated to bring about positive changes in the lives of

disadvantages ascertains and underprivileged
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rural woman by reviving and promoting their s(ills and craft.

"eaching out to weavers' potters' brass wor(ers' !ewellary'

!ute wor(ers' bas(et weavers' wood carvers' leather wor(ers

and more' Aarong' to embraces and nurtures a diverse

representation of )*+++ artisans wor( with the collaboration

of &*, of whom are women. -oday' Aarong has become the

foundation upon which independent cooperative groups and

family based artisans mar(et their craft' in an effort to

position the nations handicraft industry on a world platform

of appreciation and ac(nowledgement. Aarongs supply chain

management SCM/ is the integration and management of

supply chain organiations and activities through

collaboration' effective business processes and information

sharing with women co0operatives. It has become a great

tool for Aarong to deal with competition and increasing

customer demand for value. -o provide complete

satisfaction to its domestic and foreign buyers' the

information must be available in real time across the supply

chain and this is achieved by Aarongs integrated software

system for supply chain management. 1eb technologies

enable Aarong to become more effective' to trade with

suppliers and customers over the Internet in real time.

Implementation of the supply chain information systems in

Aarongs facilitates an increase in its competitiveness and

profits.


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Background:

Aarong emanated from B"ACs core mission of alleviating

poverty and empowering people. In the #$%+s' B"AC was

e2amining any and all possibilities for alternative forms of

productive livelihood' especially for women' and the proper

commercialiation of art and crafts turned out to be a

promising option. In 3ecember #$%& when B"AC decided to

open its own retail outlet under the brand name Aarong'

meaning 4village fair' it broadened its arms to include other

artisans and master craftsmen throughout Bangladesh who

were involved in the ma(ing of handicrafts for generations'

and were finding it e2tremely difficult to survive in the newly

formed country. 5ver since then Aarong has been helping to

establish mar(et lin(ages for rural artisans' revive crafts and

interpret them for the contemporary mar(etplace.
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Todays Aarong:

-oday' Aarong6s reach has spread from where it started'

Mani(gan!' to the rest of the country. 7rom a single shop'

Aarong has grown into one of Bangladesh6s biggest retail

chains offering one0stop shopping e2perience through #+

stores spread across the ma!or metropolitan areas of the

country 0 in 3ha(a' Chittagong' 8hulna and Sylhet and one

in 9ondon' :8. Aarong showcases over #++ product

categories from clothing to household items' gifts and

fashion accessories to childrens toys' ethnic wear to

beautiful crafts' from sil(s' handloom cotton' 5ndi to

-erracotta' bamboo' !ute and much more.

-oday' few urban consumers will argue that Aarong is the

local Mecca for deshi handicraft. Aarongs product designs

has brought consumer attention bac( to the products and

styles that are indigenous to Bangladesh' its designers

blending the traditional with the contemporary in a manner

that has won instant consumer appeal' starting a revolution

in trends that has now been ta(en up by countless other

bouti;ues and stores. Aarongs product designs focus on the

diverse types and te2tures of crafts and patterns that have


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been passed along from generation to generation among

weavers and artisans in craft hubs around the country.

Aarong also plays the role of protector and promoter of

traditional Bangladeshi products and designs. It houses an

e2tensive design library where remnants of our rich craft

heritage' such as


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those


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Products of Aarong:

MEN'S P!"#$TS:

Traditiona%& Executive Sirts& Maan(a & )otua& Sort*urta& T+sirts&Sto%es,Sa-%s& Sanda% etc.
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/!MEN'S P!"#$TS:

Traditiona%& 1estern Nigt-ear&& Sa-%s,Scarves& Soes&

Bags & )a0rics.

$123"EN'S P!"#$TS:

$%otes& Toys& Books& Soes

!ters:

>ome -e2tile' >ome Accessories' =ewellary' 9eather -erracottaBamboo?Cane?9eaf' Metal' Candles' =ute' Ceramics'


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Aarongs Su44%y $ain:

Aarongs supply chain is the movement of materials as they

flow from their source to the end customer. -he whole

supply chain of Aarong includes purchasing' manufacturing'

warehousing' transportation' customer service demand

planning' supply planning and Supply Chain management.

It is made up of the employees' activities' information and

resources involved in moving a product from Aarongs

supplier to its customer.

1o- Aarongs Su44%y $ain ManagementSystem is 0ui%d:

Aarongs supply chain management system is a group of

things wor(ing together. Computers' fa2 machines' data

storage system' operating personals' procedures for the
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employees and the most vital components of Aarongs

supply chain management system are its telecommunication

system. Cell phones helped Aarong to create a

communication networ( with every suppliers and

transportation partners across the country. All this

components wor( together to provide information to collect

products' manage the suppliers' to provide services' create

report etc. 3ifferent computer softwares are also used in

the supply chain management of Aarong but the main

supply chain management software is developed by Aarong.

-his software is used for both supply chain planning and to

help them to e2ecute the supply chain steps. Aarong has

hired trained professionals to operate its supply chain

management system and (eep updating. Aarongs supply

chain management system can be divided into two systems.

Both of this system is vital for Aarongs business. One is

Supply Chain @lanning System and another one is Supply

Chain 52ecution System.

5. Su44%y $ain P%anning System:


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Aarongs supply chain planning helps Aarong to create a

model for its e2isting supply chain' its helps management to

measure demand forecasts for different products and

develop a way to find best source for meeting those

demands and manufacturing plans.

Aarong have turned to their customers for help. By

communicating directly with customers about what they

want and by getting their feedbac( on e2isting products'

management are able to more accurately understand the

needs and wants of their target audiences. 1ith this

information' they can ma(e a forecast that reflects customer

reality. 7urthermore' improved technology has of Aarong

made it even easier to get their hands on customer

feedbac(. -he 1ebsite of Aarong for e2ample' ma(es it

possible for organiation to communicate with customers in

real0time' so they can then use the data immediately in their

forecasts. Aarong has developed a central database for all

the information and it gives access to suppliers and
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partners. -hese technology improvements along with real0

time customer feedbac( have made it possible to more

accurately predict revenue' profit' and sales in the near

future. More accurate planning means that Aarong can wor(

together with their vendors and distributors to outline a plan

that ma(es sense based on those forecasts so that no one is

put into a negative situation. Overall' supply chain planning

is a critical component of Aarongs supply chain

management. 1ithout accurate planning abilities'

businesses end up cutting into their revenue unnecessarily

and possibly putting vendors and distributors into difficult

situations that may strain the supply chain relationships in

the long run.

6. Su44%y $ain Execution System:
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Aarongs supply chain e2ecution system is mainly consists of

its transportation partners. -hey manage the flow of

products though distribution centers and warehouses to

ensure the products are delivered to the right locations in

the most efficient manner. Aarong trac( the physical status

of goods' the

Management of materials' warehouses' transportation

operations and financial information involving all parties.

Aarongs Su44%y $ain ManagementProcess

P%an:Aarongs supply chain management planning starts atthe top of the management. Management tries to balance

out the demand and supply to meet Aarongs sourcing'

production' delivery and return re;uirements.

Source:Aarong has large pool of sources to meets itsupply. As the demand re;uires suppliers come up with raw

materials and goods. -hen it creates a product which we can

e2ploit.


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Make:Co0operatives comes up with final goods and they

deliver them to the final processing section of Aarong. -he

goods or products are ready to use for the customers.

"e%iver:Aarongs delivering process is managed by its own

transportation. Aarong directly distributes its product to the

consumers. -heir !ob is to distribute shipments properly.

=ust0in0timeD is followed in delivery process.

eturn:"eturn process is consisting of product returns and

post delivery customer support which is done by Aarong.

enerally Aarong obtained their products to their consumers

within E+days.Its also includes Aarongs return process.

3ogistics:Aarongs top level management plans' supportive

relation to their consumers and control of all other factors

that have an impact on the supply chain.


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Aarongs Su44%y $ain Management2nformation )%o-

Information flows from customers to 5mployee or from

employees to operating personnel in the information system.

-hen information goes to the floor manager. 7loor manager

shows it to the consultants of Aarong. Consultant shows it to

the top level management of Aarong. -op level orders its

suppliers to modify' improve or create product to meet the

customer demand.

Aarongs Su44%y $ain ManagementBackend incor4oration:

Aarongs supply chain management system can e2emplify

into #4stream portion where the supply chain includes

Aarongs suppliers or co0operatives' and their suppliers who

are the raw material providers Aarongs. Aarong tries stay

connected with the raw material providers through

telecommunications. Co0operatives have all sorts of

facilities. -hey stay connected though telecommunication.

Aarongs database is open to its suppliers it provides them

with inventory data. And suppliers also can provide


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information to Aarong through the web. Because of the real

time data availability suppliers are at no harm position when

they are dealing with Aarong. -here is

also "o-nstreamportion consists of the Aarongs

processes for distributing and delivering products to the final

customers. Aarong has its own internal supply chain

processes for transforming materials' components' and

services by their suppliers into finished products or

intermediate products for their customers and for managing

materials and inventory.

Aarongs wants to satisfy' so Aarong provides operational

data to its highly loyal customers and contractors. Aarongs

big buyers can gain data about their order through Aarongs

website or by e2tracting data from its database. Aarongs

website provides the progress about orders from foreign

buyers. Buyers can also get along about the operational

process.

Aarongs suppliers also have the concession to e2change

register data. -hey are aware of what Aarong wants and the

price its willing to pay. -hey also get the cut0off date and

operational instruction from website. If anything changes


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they will (now because Aarongs web application

automatically incorporated with bac( office information

system and database which they can easily way in.

Aarong has a central database which is updated by the

operational employees. So if any changes come Aarongs

Supply Chain Management will send mail to upstream and

downstream suppliers its suppliers.

Manageria% Ski%%s:

Aarong has trained operating personnel for its accounting

department and website. Operating personnel !ob is tomaintain the information system and repair if any error ever

occurs. Aarongs operating personnel are highly ;ualified in

their !ob sectors. Aarongs information system is designed

to be employee friendly. 5mployees do not have to (now lot

about technology to operate its regular applications. Its

information system is very secure. 5mployees strictly followall the principled rules. All customers orders' addresses or

any (ind of information is remaining private. Accuracy is

practiced and monitored by operating personnels. Access of

employee information is strictly forbidden. So Aarong has


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the ability to ad!ust technology strategy alignment to

accommodate the use of I- and manage business process.

-he Internet has emerged in the recent past as a dynamicmedium for channeling transactions between customers and

firms in virtual mar(etplace. In particular' the 1orld 1ide

1eb has emerged as a powerful new channel for supply

chain' rendering many intermediaries obsolete' and

drastically revamping the value chain. So Aarong has ta(en

the opportunity to e2pand its business through net. Aarongsemployees can see as an asset for this (ind of e2pansion.

But in our country the growth in e0business seems slow

although internet is challenging the traditional supply chain

structures that firms have employed to get goods and

services to mar(et. Aarong has re0evaluated their value

proposition to customers' and meet the challenges of morenimble rivals. Aarong seems to be one of the organiation

which is interested provide online based order and

information system to its customer. So Aarong has a very

daling managerial s(ill in internet based supply chain.


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Aarongs 4erformance im4rovements 0y S$M:

5. Accurate information for su44%iers and 0uyers:

Because of the proper Supply Chain Management Aaronggets accurate information. 3istort information is a ma!orproblem of govt. funded organiation but Aarong is differentbecause of its supply chain management.

6. Easi%y stored data 7 access:

SCM has provided easy way to store data. Information canbe easily stored. -his made suppliers and front lineemployees very efficient about their !ob.

8. 2nformation saring troug #4stream and"o-nstream:

1ithout networ(' information sharing would ta(e lots oftime. But in Aarong' can share information very easily withits upstream and downstream partners and suppliers.
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9. /ork efficiencies:

Supply Chain Management System has increased Aarongswor( efficiency.

. S4eed:

SCM has increased speed of the wor(. 5mployees arewor(ing with more speed in Aarong.

;. Pro4er storage system:

Supply Chain Management System gave a proper storage

system. 5mployees can store data and also can see itwhenever they want. Suppliers can store data too. Anychanges can be seen through website. Customers get bighelp from that.

. 2m4rovement in Training em4%oyees:

@ower point has improved training programmers foremployees.


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5?. 2m4roved customer satisfaction:

Aarong has improved customer satisfaction with its supplychain management system. Customers are more satisfied

than before. -hey are getting what they want. -otal &E,customers are happy with Aarongs customers services.SCM has given Aarong chance to customie products.

55. 2m4roved 4roduct and service @ua%ity:

SCM has improved Aarongs product and service ;uality.Customers can get their desired products and better

service.

56. 2m4roved Em4%oyee Satisfaction:

5mployee satisfaction has increased. 5mployees are happywith their wor( and they are clear about what to do F whatnot to do.

58. 2m4roved communication:

Gideo and teleconferencing has improved communication inAarong. 5mployees can communicate with customers'suppliers and their supervisors more easily.

59. #4 to date information:

Information is up to date because of the proper data entry.5mployees gets up to data to wor( with which bringefficiency.


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$om4etitive Advantage of Aarongs Su44%y$ain Management System:

Competitor analysis in mar(eting is an assessment of the

strengths and wea(nesses of current and potential

competitors. -his analysis provides both an offensive and

defensive strategic conte2t through which to identify

opportunities and threats. Competitor profiling coalesces all

of the relevant sources of competitor analysis into one

framewor( in the support of efficient and effective strategy

formulation' implementation' monitoring and ad!ustment.

Aarong has its own version of the competitive

analysis and its function is clearH to line up your product

with other products and show where yours falls short and

where yours is superior. 5ach industry brings a different spin

to this old favorite and user e2perience design has its own

set of criteria by which to !udge competitors.


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$om4etitors Ana%ysis of Aarong:

7rom the above diagram it is seen that Aarong has

competitive advantage over its competitors on almost everyfactors. Only few companies have ability to chase some sort

of advantage li(e Aarong. Such as "ina 9atifs product

features' ;ualities and innovativeness' 8ay08raft and An!ans

supplier' "angs color and 8hubsoortis cost.

Aarong has gain competitive advantage through its supply

chain management system. Aarong has a vast networ(

system with its thousands of suppliers and manufacturers

which gave Aarong superior production and resource

allocation power. Competitors do not have power that can

match Aarongs production capability so they are losing

shelves. SCM (eeps trac( of its supplier and its inventory

properly so there less costly and hustle free for the

employees. @erformance of service has increased more than

its competitors so there are more satisfied customers of

Aarong.
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$onc%usion:

-here is a reason why Aarong is at the forefront of the urban

fashion0scene. -heir innovative clothing line fuses ethnic

wear with global trends using traditional Bangladeshi

materials. Aarong is a support enterprise of B"AC. A

significant portion of their earnings are invested towards

improving the socio0economic standards of disadvantaged

artisans and underprivileged rural women of various

communities. Aarong organiational vision will be achieved

smoothly and that is the women will be empowered through

grass0root level women entrepreneur developmentD and

this empowerment will change the overall scenario of

economic condition.


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eference:

---.Aarong.org---.scri0d.com
http://www.aarong.org/http://www.aarong.org/

Documents

Assignment on - S C M