Suppy Chain Management at Rahimafrooz Superstore Limited (Agora)

Topics: Retailing, Business ethics, Supply chain management Pages: 5 (987 words) Published: July 5, 2008
RahimAfrooz is one of the leading business groups in Bangladesh. It is doing business in the country for more than 50 years with fame and reputation. The main strength of the group is its reputation of doing ethical business practice. Throughout its business during last 50 years, it has mainly operated in the automotive industry. Recently it has extended its business in energy and retailing business. It operates in an SBU model. The SBUs of RahimAfrooz are:

1.RahimAfrooz Batteries Limited
2.RahimAfrooz Distributions Limited
3.RahimAfrooz Superstore Limited
4.RahimAfrooz Energy Services Limited
5.Excel Retreads Limited
6.Super Abrasives Limited
7.Greyfab Limited
8.Arzed Limited
9.RahimAfrooz CNG limited
10.Metronet limited

This report is made for RahimAfrooz Superstore Limited. The brand name for this SBU is Agora. It is the leading superstore in the Dhaka city. It has revolutionized the retailing industry of Bangladesh. It is established to provide quality shopping experience for its customers. With four large outlets in Dhanmondi, Gulshan, Maghbazar and Sobhanbagh, it is also the largest retailer in the country. It is offering more than 20,000 items under one roof. These items are divided into 11 categories. The categories are: Household, Grocery, Meat, Fish, Vegetable, Fruits, Fast food, Dairy, Bakery, Pharmacy, and Cosmetics.

Since the inception of Agora, the modern retailing industry is developing in the country. Now quite a number of modern retailing shops are operating in the country. All of them are mostly Dhaka based. But many of the big players of the industry are thinking going outside of the capital city. Although there are number of modern retailer operating in the country, every does not have the strength and potential to challenge superstore like Agora. But some of them are really competing. The main competition Agora is facing from the following companies:

1.Nandan Mega Shop
2.Meena Bazaar
3.Price, Quality & Services (PQS)
4.Shop & Save
5.Ko Mart &
6.Almas Super Shop
Agora has formulated an ambitious plan to be realized by the year 2010. They named it vision 2010. By the year 2010 Agora dreams to be 1000 crore taka company. Presently their yearly turnover is only 70 crore taka. And they are operating with four outlets in Dhaka city. They wish to have about 43 outlets by 2010. They not only want to be in Dhaka city but also expand their business through out the country.

Agora operates with six departments. These are:

1.Operations Department
2.Purchase Department
3.Marketing Department
4.Finance and Accounts Department
5.IT department
6.Human Resources Department

The operation is divided in to parts.
-Head Office based
-Outlet based
The operation of outlet is under operations department. The operation is centered on the superstore management software agora use. The total procedure is controlled by the database in that software. The software has four modules: 1.Flexsim Back Office

2.Flexsim CPU
3.Flexsim Point of Sales
4.Flexsim Accounts

The supply chain is the key business activity of Agora. To move ahead Agora needs to improve its supply chain. This report is mainly originated to search ways of improving supply chain. The two main objectives of the report are: -Find the solution for overstock problem Agora is experiencing -Find the areas in supply chain where special focus is required Due to overstock situation, Agora has experiencing several problems. Some of these problems were:

-Managing the items are getting difficult
-Higher amount of working capital is required for supplier payment -Payment to the suppliers are getting irregular, which resulting dissatisfied suppliers -Wastage is increasing
-In an effort to decrease SIH, they are ordering lower amount. As a result some fast moving items are getting out of stock soon. And sales are getting lost. -Managing the self space is getting tougher, resulting lowering of...
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