Supply Chain Management in Renata Limited
Prepared By MD. ASHRAF UDDIN(61426-19-036)
Department of Management and Information Systems
University of Dhaka
Supply chain concept is extended to the activities started from the raw materials suppliers through the organization to the end consumer. Once thought only as the Physical Distribution Management (PDM), that is the logistics management, has now been the part of Enterprise Resources Planning (ERP). From a set of activities is now considered a part, module, of an integrated system. There has been a change in supply chain management thinking from a push oriented supply chain that emphasizes distribution of a product to passive customers to a pull-oriented supply chain that utilizes the supply chain to deliver value to customers who are actively involved in product and service specifications. Electronic communications have played a major role in facilitating new models of supply chain management. Technology applications that have facilitated supply chain management are the E-mail, Intranets, Extranets, Electronic Data Interchange (EDI) and lately interfacing of ERP system with B2B intermediary sites or Exchanges. Our studied company, Renata Limited, also has got a Distribution Channel Management (DCM) that works in the downstream supply chain arena while upstream one is still managed conventionally with the help of mail or e-commerce solution. Over competition in the industry and the cost leadership approach have been making the pace of change a bit slower and they are still being led by the existing system, we can say legacy system. They still maintain a good amount of safety level that cost time and hazards. But we see some improvement in database management that works in downstream arena is helping them a lot. Since the market driving force is the marketing to doctors and chemist, any sophisticated system, in their words, is only contributing to curtailed profit. But some part of the industry is doing better in quality and excellence in export while others whose market share are inside the boundary are adjusting themselves to the situation. Renata Limited is envisaging introducing ERP to strengthen their foothold in and outside of the country as they are also a recognized one to enter the EU market. It is now the time and the will to shift them from the legacy to a contemporary system, we understand.
Objective of the report
General objective is to see that how an organization cope with the information system to effectively make decisions and operate functional activities. Assess the level of importance of supply chain management of the company and also to determine how well the company meet up the compliance of information system. More specific objective is to provide information on Renata Ltd. & their supply chain management. COMPANY BACKGROUND
Renata Limited is a public limited company incorporated in Bangladesh, with more than Tk. 2.3 billion in assets. The company manufactures and sells various pharmaceutical products, animal health, animal nutritional, oral saline, hormone products and other medical products in the local and foreign markets. The company has two subsidiary companies; Renata Agro-Industries Limited and Parana Limited. They have manufacturing contract with Eskayef for Cephalosporins, with UNICEF and SMC for Sprinkles. The trademark of Renata is assigned from Pfizer and Hoechst with manufacturing technology. In 2007 Renata has received a Certificate of GMP Compliance for its Potent Products Facility from MHRA2, UK and it is the only Bangladeshi company to receive it. The company’s largest subsidiary, Renata Agro Industries Limited, is a private company limited by shares incorporated in 1997. The principal activities of the company are to carry on business for producing and sale of various agro based products, and poultry breeding and hatching and sale of poultry products. The company commenced its...
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