The challenge today for Super Shops are diverse. Giving a boundary less shopping experience to consumers, with endless inventory regardless of where they shop, free returns, and same day delivery are some of the benefits that consumers are already used to. In-person shopping experience is slowly losing its attraction due to distance, movement issues due to bad traffic, cost, convenience, variety, speed etc. It’s time that the Super Shops revamp their supply chains that are originally designed for a single-channel world. This year (2016) a European aid organization has proposed to engage your services in creating new supply chain solutions for Super Shops in Bangladesh to cater to the current multi-channel consumer’s expectation with respect to variety, convenience, price and speed. Proposed fund that is available for this project is US$ 25 Million that would be spent over a period of 5 years.

1. Pg.1Pg.1
2016 ISCEA Ptak Prize
Global Case Competition
Team: AUST
Team Member
Name: Md. Ashiful Alam
Institute: Ahsanullah University of Science & Technology
Dept.: Industrial & Production Engineering
Last Date of Submission: May24, 2016
SL.No.: To Be Assigned by ISCEA

2. Pg.2Pg.2
Fulfill growing
customer needs by
providing online
service and
improving service
facilities
Current Scenario:
Super shops are now growing importance as the market players are thinking of
opening more outlets in order to fulfill the rising demand of customers. With 15-20
per cent annual sales growth, about 30 companies with more than 200 outlets have
already made foray into the industry. The annual turnover of the superstores now
stands at around Tk 15.0 billion (1500 crore), according to Bangladesh Supermarket
Owners Association (BSOA). Super shops are attracting customers by ensuring
hygienic environment, fresh foods and necessary goods. But the pace of expansion of
the existing key-players in the supermarket business has been rather slow. The
dominating four major shops are Shwapno, Agora, Meena Bazaar and Nandan. What
these leading super shops lack of is that, these shops do not have online service. Now
a day customers prefer buying things online and getting products on time. So, super
shops are losing customer’s interest. So by modifying some of the existing business
procedures, such as their supply chain management systems, continuous progress and
development in the industry needs to be taken into consideration. Our proposed model
will be applied on some selective areas of Dhaka City. We will be working on
fulfilling customer needs by improving customer service and relation through online
service.
Super shop Industry Drivers:
Figure: Super Shop Industry Drivers in Bangladesh
Change in social structure is creating impact. It has now become important to have
huge variety of products under one roof. And again per capita income has increased
and in the near future it is expected to grow more. Changes in taste and fashion of
customers are also seen now a day because of globalization. Day by day consumers
are becoming more aware of possible health repercussions of consuming the products
that use formalin and chemical contaminated consumable products.

3. Pg.3Pg.3
Lead time,
quality, trusts are
some of the basic
requirements to
satisfy the
customers
Improving Long Term Relationship:
Supplier:
 Joint Planning Sessions: Joint evolvement should be practiced in mutual
quality improvement & cost reduction, as well as reducing lead time &
effort.
 Multiple Vendors/Suppliers:
1. Provides insurance against late deliveries, poor
raw material/service quality, and rising unit
prices.
2. Prevents suppliers from realizing scale economies from
long-term relationships and a larger share of the
manufacturer’s business.
Long-term contracts provide an incentive for investment in new
equipment to reduce outstands improve quality.
 Trust &Obligation: Mutual trust can be achieved by,
1. Frequent Contact.
2. Open Exchange of information.
3. Stable, synchronized schedules between
manufacturers and suppliers
Consumers:
Mutual trust can be obtained by satisfying buyers need.
 Quality of Product: Desired quality of product should be
supplied to consumer, which may lead to a long term relationship.
 Lead time: Bangladesh’s main challenge is the longer lead-
time. From the time of order from consumer to the time it
reaches to the consumer is approximately 1-3 hours

4. Pg.4Pg.4
Online
Network Server
used for operating
ERP software.
Figure: Distribution Center of a Super Shop in Dhaka City
System of operation:
Firstly, all products will be kept in central distribution center. Then from there,
products will be supplied to six sub distribution centers. There will be a retailer
house/super shop in each and every sub-distribution centers. ERP system and online
basis order service will be available in the system. The whole system will reduce
lead time, increase the customer service and will ensure delivery in short time by
fulfilling the demand of customers.

5. Pg.5Pg.5
Figure: Supply Chain Model of Super Shop.
Supplier
Producer Fishery
Producer Life Products
Producer Dairy & Beverage
Producer Vegetable
Product Manufacture
Distribution Center
Select Products
Bank Payment
Super Shop
E-commerce
Product Delivery
Sub-distribution Store

6. Pg.6Pg.6
Lead time
required to
complete the
process starting
from supplier to
retail shop.
Bugs in the supply chain system
 Operational Lead Time: The main challenge our country faces is the
longer lead time. The time it takes to reach to the inventory house from the
supplier is approximately 3-10 days. In extreme cases, it might take more than a
month to complete the process. Therefore, for urgent demand, importers will
not receive the orders in short notice.
Steps Supply process Minimum time in days to complete the
process(approximately)
1. From supplier to
manufacturing house
5
2. From manufacturing
house to central
distribution center
3
3 From central distribution
center to sub distribution
centers
2
4 From sub distribution
centers to retailer shop
1
Total Supplier to retail shop 11
Table: Lead Time for Super Shops in Bangladesh
 Lack of knowledge in SCM: Dearth of knowledge in SCM leads to
erroneous mid management systems resulting in disruption of supply chain in
an industry.

7. Pg.7Pg.7
Transportation is
the key to Supply
Chain
Management.
 Transportation: Transportation represents the most single element supply
chain. The changing nature of supply chain, particularly the move by many
companies towards global operations, has had an impact on the relative
importance of the different modes of transport. The transportation methods used
in Bangladesh after importing raw materials increases the lead time to devoid of
advanced transportation system.
Figure: Fishbone Diagram of Super Shop SCM

8. Pg.8Pg.8
Deficiency of
learning agility,
problem solving,
leadership, multilevel
communication.
Training the
trainer, to save
money on training
is to have in-house
counsel.
 Talent Crisis & Management:
Supply chain management system in super shops is not up to the mark because of lack
of talents in mid-management sections. Because of not having qualified people behind
the management system, super shops are lagging behind. Growing intensity of
competition in local business sectors, several shops have realized the need to develop
more strategic approaches for managing supply chain. When problems are experienced
in the mid-management sectors, it causes the whole management system to collapse.
Supply chain managers should have to be more proficient in managing supply chain
system such as transportation, warehousing, inventory management and service layout
planning. More effective supply chain for Super Shops is to enjoy competitive
advantage through analyzing the current supply chain and investigating the relationship
among the players in the supply chain.
Although internship program is practiced, it needs more than just that.
Talent Exigency on SCM
Insignificant Mid-Management
Spoiling the Relationship Between SCM Customers
Fizzle Out In the Supply Chain System

9. Pg.9Pg.9
 Ideas towards Future:
 Reduce Lead Time: The main challenge for Bangladesh in super shops is
longer lead- time in supply chain that can be reduced to implement modern
technology and introducing management information system in warehouse system.
Those companies, which are continually adapting new technologies and have the
advantage of low production costs, have definite advantages. There is therefore an
urgent need for Bangladesh to drastically reduce the lead-time for super shop
exports to enable the industry to be competitive.
 Central-Bonded Warehouse: An effective approach to decrease lead-time
is the establishment of a Central Bonded Warehouse (CBW). Establishing a CBW
the local goods and necessary commodities would be protected from the competition
posed by suppliers.
 Enterprise Resource Planning Based Inventory System(ERP):
ERP is a business management software-typically a suite of integrated
applications-that a company can use to collect store manage interpret data from
many business activities including
 Production planning
 Manufacturing
 Marketing and sales
 Inventory Management
 Barcode and payment
 Training Facilities in the Mid-Management: Providing training
facilities for the mid management is an urgent need in the industry. Providing
the mid-management with proper supply chain knowledge will improve the whole
operational characteristics of an industry.
 On Time Tracking System: OTT software needs to be installed in the
inventories to track the timing of every shipment of vendor products.
 Infrastructure: To maximize the likelihood that super shops will continue to
thrive and government will need to address a number of issues. Foremost
among these is the development of vocational and other educational programs that
will support the industry’s need for more highly skilled domestic labor, including
line and production managers.

10. Pg.10Pg.10
 Impact of the Ideas:
 Reduced Lead Time: Lead-time can be brought down to less than 7days
and can restore.
Steps Supply process Minimum time in days/hours to
complete the process(approximately)
1. From supplier to
manufacturing house
3days
2. From manufacturing
house to central
distribution center
2days
3 From central distribution
center to sub distribution
centers
1day
4 From sub distribution
centers to retailer shop
2-3hours
Total Supplier to retail shop 6days and 2-3 hous
 Reasons for Training: The table below shows what the main reasons
were for providing training for the mid-management. The Supply Chain
Industry figures closely resemble those of the Logistics Sector average
figures, with the exception of those providing training solutions to
improve bottom line benefits (78%), which was much higher than the
sector average figure of 71 %.

11. Pg.11Pg.11
 ERP Based Inventory System
Even the firms characterized as laggards realized significant benefits from their
ERP implementations. The stellar performances realized:
• 7% reduction in operating costs
• 4% reduction in administrative costs
• 9% reduction in inventory (for manufacturing and distributing)
•11% improvement in internal schedule compliance (for
manufacturing and distributing)
• 6% improvement in complete and on-time delivery
As the study points out, single percentage savings might not sound
all that impressive, but for every million dollars in operating costs, a 7%
savings amounts to $ 1,75,000/-.
 Home Delivery Systems :
Shopping Chart Credit Card is Charged
Sent to Warehouse for
Fulfillment
Email is sent to
customer & merchant
Shipping carrier picks
up shipment
Order is completed
Order placed by user
Online Delivery System

12. Pg.12
Section Details
Security
Sub-Sectors Expense
CCTV & Installment 562.5 k
Fingerprint Scanner 262.5 k
Card Punch 637.5 k
Transportation
Systems
Training program
Sub-Sectors Expense
(2016-17)
Expense
(2017-21)
Expense (Total)
Pickup-van 540 k 2.16 M 2.70 M
Delivery Bike
250 k 1M 1.25 M
Truck
750 k 3 M 3.75 M
Stuff &employee 250 k 1 M 1.25 M
Safety
Sub-Sectors Expense
Smoke Detector &Fire Alarm 1M
Fire Fighting Equipment 625 k
Cost Break-Up:
The cost break-up is made upon focusing on the BSOA, because the objective is
to obtain maximum outcome from minimum effort.
Table:
Currency: USD

13. Pg.13
Sectors Details
Information
Technology
Sub-Sectors Expense
ERP Operation
(Computers &Software)
3.5 M
Laser Barcode System 750 k
Rent
&
Salary
Sub-Sectors Expense
(2016-17)
Expense
(2017-19)
Expense
(2019-21)
Store & Shop Rent 162.5 k 100 k 112.5 k
Wages & Salary 187.5 k 562.5 k 500 k
Manufacturing
& inventory
cost
Expense (2016-21)
5.25M
Insurance &
Back-Up Fund
Expense (2016-21)
1.8375M
TOTAL 25 M

14. Pg.14
In the fiscal year of 2016-21, more expensive cost will be put upon rent and
salary. After that manufacturing and inventory cost will be hold. Safety and
training programs remain constant for 5 years. Besides transportation, rent
and salary will be extended to 5 years.
5%
25%
4%
3%
5%
29%
25%
4%
Cost Breakdown of Super Shop
Security
Transportation
Training program
Safety
IT
Rent & Salary
Manufacturing & Inventory cost
Insurance & Backup fund

15. Pg.15
Five Years’ Sketch Supply Chain Model:
Fiscal Year Expenditure(USD)
2016-17 5.8525 M
2017-18 10.715 M
2018-19 2.4025 M
2019-20 2.09 M
2020-21 2.1025 M
2016-21 23.1625 M
The rest 1.8375 M USD is kept as emergency fund
Conclusion:
Our main purpose is to hinge on its ability to meet of a more advanced society
where the working employers and housewives prefer to make at-a-time purchases
of daily needs less than one roof. Online basis customer service system is easier
to fulfill the customer’s needs and demand. By adhering to proper marketing
strategies and putting the target market in top most priority, we have been able to
edge towards competitiveness with few formidable rivals to challenge its present
position evidently, by virtue of its high quality assurance.

16. Pg.16
Reference:
1. business.auckland.ac.nz/en/for/future-postgraduates/study-options-7/postgraduate-
programmes-1
2. https://en.wikipedia.org/wiki/Supply_chain_management
3. https://www.tradegecko.com/blog/supply-chain-management-factory-
supermarket-shelves-kelloggs
4. http://www.usanfranonline.com/resources/supply-chain-management/walmart-
keys-to-successful-supply-chain-management/
5.http://www.rahimafrooz.com/ourbusinesses/companies/rahimafroozsuperstoreslt
d/tabid/112/default.aspx
6. http://www.slideshare.net/aneeshp1/case-study-on-amazoncoms-supply-chain-
management-practices
7. https://channels.theinnovationenterprise.com/articles/amazon-s-supply-chain-
process