Dissertation paper

On
Effect of Logistic Support on Supply Chain
Management in manufacturing industries

Dissertation Paper
On
Effect of Logistic Support on Supply Chain
Management in Manufacturing industries

Prepared by
MD. REZWANUL ABEDIN
EvMBA-03
ID-1303025
Bangladesh University of Professionals (BUP)

Prepared for
Priyabrata chowdhury
Assistant Professor,

Bangladesh University of professionals (BUP).

Date of Submission: 19 January 2015

Declaration of Originality

I hereby certify that I am the sole author of this report and that neither any
part of this work nor the whole of the work has been submitted for a degree to any
other University or Institution.
I certify that, to the best of my knowledge, my work does not infringe upon
anyones copyright nor violate any proprietary rights and that any ideas,
techniques, quotations, or any other material from the work of other people
included in my report, published or otherwise, are fully acknowledged in
accordance with the standard referencing practices. Furthermore, to the extent that
I have included copyrighted material that surpasses the bounds of fair dealing
within the meaning of the Indian Copyright Act, I certify that I have obtained a
written permission from the copyright owner(s) to include such material(s) in my
work and have included copies of such copyright clearances to my appendix.
I declare that this is a true copy of my report, including any final revisions, as
approved by my supervisor.

MD. REZWANUL ABEDIN

Signature:

CERTIFICATE

This is to certify that, Md Rezwanul Abedin, bearing ID# 1303025, Ev.MBA-03,

Faculty of Business Studies, Bangladesh University of Professionals has
prepaired this dissertation paper entitled EFFECT OF LOGISTIC SUPPORT
ON SUPPLY CHAIN MANAGEMENT IN MANUFACTURING INDUSTRIES
under my guidance and supervision. I do hereby approved the style and content of
this dissertation paper.

(Priyabrata Chowdhury)
Assistant Professor
Faculty of Business Studies
Bangldesh University of Professionals

Letter of Transmittal
19 January, 2015

Priyabrata Chowdhury
Assistant Professor,
Bangladesh University of Professionals.
Subject: Submission of dissertation paper on Effect of Logistic Support on Supply Chain
Management in Manufacturing Industries.

Dear Sir
With great pleasure, I want to inform you that I have completed 2 years Masters of Business
Administration with major in Supply Chain Management and done a dissertation paper on Effect
of Logistic support on Supply Chain Management in Manufacturing Industries which is required for
my MBA certificate. I have written a dissertation paper on Effect of Logistic support on Supply
Chain Management in Manufacturing Industries . This report focuses on Logistics activities through
which goods are delivered to its customers on time with quality. During writing this report I have
followed your guideline and tried to relate theory to practice along with my responsibilities in SCM.
After that I am ready to express regret if any discrepancies found in this report.
I hope you will be satisfied with this Dissertation paper. I will be very glad to you if I can complete
this Msaters of Business Administration with a good grade.
Thank you for your consistent support.
Regards,
MD REZWANUL ABEDIN

ID: 1303025
Bangladesh University of Professionals

Acknowledgement
The authors wish to acknowledge their special thanks to their supervisor Mr.
PRIYABRATA CHOWDHURY, Assistant Professor, Bangladesh University of
Professionals, Dhaka for giving them inspiration, guidance and valuable
suggestions in executing the dissertation paper.
Deep gratitude to all concerned of , Bangladesh University of Professionals for
their sincere and helpful cooperation throughout the courses.

MD. REZWANUL ABEDIN

Executive Summary

As the supply chain management sounds innovative management practices in our

country, there is a lot of scope of research about this topic. Supply chain
management and logistic are affecting by a lot of external and environmental
factors. Supervisor planned to research about this part to find out the central
limitations and core development of these limited areas.
Dissertation is done investigating some main areas by some questionnaires over
some customers those who are practicing both the supply chain and logistic
business in their premises.
The findings are effective communication with the customer, informing
trade/Freight charge information, customer service (after delivery service), political
situation, strike are affecting the supply chain and logistic business most
effectively.
The outcomes means the future research should therefore concentrate on the
investigation of the above mentioned areas broadly.
Supply Chain Management means flow of goods from the
manufacturing organization to end

Customer through different mediums. In this report various

functions of Supply Chain Management is elaborately discussed.
The major functions are: Transportation Management,
Distribution Management, Inventory Management, Cost
Management, Payment Management,
Supplier Management and Customer Service Management.
Along with the theoretical aspects of these functions, this report
also provides an outline how effects the logistic support to a
Supply Chain Management of different manufacturing industries.
In this report, the findings of mine in various effect of logistic
support on SCM.
I have worked in three departments. Mostly I involved in Logistics
department, and partly I worked in Human Resource Management
and Corporate Social Responsibility. Finally, from my experience of
visiting these companies I have observed some lacking. I tried to
provide suitable recommendations for the improvement of the
companies

Table of Contents
ChapterPage
No.
Title Pagei
Declaration.ii
Supervisor Certificate.iii
Letter of transmittaliv
Acknowledgement

v
Executive SummaryVivii
Table of Contents

vii-ix
Chapter 1: introduction
1
1.1 Overview
2
1.1.1 Logistics
3
1.1.2 Supply Chain Management
3
1.2 0bjectives
4

1.3
1.4
1.5

Scope of the study

Methodology of the study

4
4

Sources of Data

1.6

Potential problem statement

1.7

Limitations

Chapter 2:literature reviews

8
2.1 Definitions
2.1.1 Logistics
2.1.2 Supply Chain Management
2.2 Cycles of Chain Management
2.3 Components
2.3.1 Components of logistics system
2.3.2 Components of Supply Chain Management
14-18
2.4 Importance of logistics and Supply Chain Management
2.4.1
2.4.2
2.5
2.5.1

9
9
10
11-12
12
12-13

19

Importance of logistics
Importance of Supply Chain Management
Theories of logistics and Supply Chain Management
Theories of logistics

19-21
22-23
24
24-31

2.5.2
2.6
2.6.1
2.6.2
2.7.1

Supply Chain Management theories

Strategies of logistics and Supply Chain Management
Strategies of logistics
Strategies of Supply Chain Management
Effective factors of Logistics Support
45
2.7.2 SCM & Logistic Integration
Chapter 3:Project work
3.1 Questionnaires
3.2 Contact list
Chapter 4: Findings
4.1 Findings
4.1.1 Effective Communication
4.1.2 Trade/Freight charge information
4.1.3 Transport
4.1.4 Customer Service (after delivery service)
4.1.5 Mark & Number
4.1.6 Wrong HS code and shipping mode
4.1.7 Strike
4.1.8 Political Situation of the country
4.1.9 Bride in different sections
4.1.10
Lack of direct oversight
4.1.11
Disadvantages
Chapter 5:Remedies and Potential Improvements
72
5.1
Remedies and Potential Improvements
5.1.1 Effective Communication
5.1.2 Trade/Freight charge information
5.1.3 Customer Service (after delivery service)
74
5.1.4 Mark & Number
5.1.5 Wrong HS code and shipping mode
74
5.1.6 Political Stability of the country
Chapter 6: Conclusion
75
6.1
Conclusion

References

31-34

34
34-41
41-44

45-47

48
49-53
54-56

57
58
58
59
59-61
61-63

63
64
64-67
67-70

70
71

71
73
73
73
74
74
75-77
78-80

CHAPTER 1

Introduction

CHAPTER 1
Introduction
1.1. Overview
Supply chain and logistic both are very often practice in developed countries. Only
some organizations in Bangladesh are practicing supply chain and logistic in
practical field. So scope of our project is limited considering limitations of areas
and time. We are trying to find out some specific areas where improvement can be
done. Which areas will make effective and efficient benefit or solution for both
supply chain and logistic.
Between years 1970's and 1980's is recognized as the first generation of third party
logistics of providing services for example transportation, shipping, but between
1980- 1990 were asset or non-asset based organizations by increasing the service
levels of contribution and third generation is between years 2000 - until now were
generally based on increasing the supply chain integration. A Third Party Logistics
providers (3PL), can be identified as first, second and third service providers. First
party provider is the main company that provides the service or product, the second
is to whom receives the service it is the consumer and the third is the company
which hired by the main company for provide the service between costumers and
company.

1.1.1 Logistics:
Since logistics advanced from 1950s, due to the trend of nationalization and
globalization in recent decades, the importance of logistics management has
been growing in various areas. For industries, logistics helps to optimize the
existing production and distribution processes based on the same resources
through management techniques for promoting the efficiency and
competitiveness of enterprises. The key element in a logistics chain is
transportation system, which joints the separated activities. Transportation
occupies one-third of the amount in the logistics costs and transportation
systems influence the performance of logistics system hugely. Transporting
is required in the whole production procedures, from manufacturing to
delivery to the final consumers and returns. Only a good coordination
between each component would bring the benefits to a maximum.
1.1.2 Supply chain Management:
Supply Chain Management is a subject that involved many areas, from the
hard to soft topics. Supply Chain Management as an independent field was
originated from Marketing and Strategic Management. In this review, the
most relevant and current topics of Supply Chain Management will be
discussed, taking as a primary focus the impact of supply chain issues on
transport and green logistics performance. The topics that will be discussed
in the rest of the paper are supply management from a top-view perspective,
uncertainty in the supply chains and transport, supply chain strategies and
transport, current supply chain practices and transport, and supply chain
integration and collaboration.

1.2

Objectives
The objectives of the project includes the followings-

1. As a third party service provider, find out the barriers, positioning,

limitations of logistics and supply chain management.
2. Find out the possible suggestions and improvements on the limited areas
of logistics and supply chain management.
1.3

Scope of the study

Only some organizations in Bangladesh are practicing supply chain and
logistic in practical field. So scope of our project is limited considering
limitations of areas and time. We are trying to find out some specific areas
where improvement can be done. Which areas will make effective and
efficient benefit or solution for both supply chain and logistic.

1.4 Methodology of the study

Data Collection and Sample
This study involves analysis of a questionnaire that consists of statements relating
to top level management commitment, mutual understanding, flow of information,
organizational factors, relationship and decision making and supply chain
responsiveness.
Survey relevant literature.
Identify problem related to flow of production.
Implement smooth flow of information and production.

1.5 Sources of Data

Collection of Data:

Techniques

Primary
Secondary

Open discussion & Questioners

Different types of manufacturing company in
Bangladesh

SL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

Company Name
Bengal Group of Industries
Dekko Group
Sea Autos (Importer and Supplier)
Riyan Machinery Equipment (Importer
and Supplier)
Trade Tech (Importer and Supplier)
Digital Medical System Ltd. (Importer
and Supplier)
NRS scientific Ltd ( Importer and
Supplier)
Surma International(Importer and
Supplier)
Repon Light House ( Importer and
Supplier)
Guarantee fiber Ltd.( Importer and
Supplier)
Sunny trade (Exporter Importer)
Razdhani Hardware (Importer)
Lotus-bud Freight & Logistics
Bandex Knitwear Ltd.
Humko Battery Ltd.
Navana Battery Ltd.
Smartex Composite Ltd.
Pears Composite Ltd.
Notex Composite Ltd.
Akij Group
Shah Cement Ind. ltd.

1.6 Potential problem statement:

The following problem can be drawn from the present study

1.7

Lack of direct oversight

Effective communication
Trade/Freight charge information
Customer service (After delivery service)
Political situation, strike
Mark and number
Wrong H.S code and shipping mode

Limitations

During writing this report I have to face some limitations. Those are enlisted here:

 My work location was Head Office in Dhaka of the companies, but the
major logistics works happen in plant and in different depots. From Head
Office the works are only monitored. I got the opportunity to visit the plant
for one day, but within that day it was not possible to observe in depth
supply chain activities of companies. In addition with that, I was unable to
observe the warehouse management system directly as I didnt get the
chance to visit the depots.
As I was an unknown person to the companies, the management didnt share
complex business strategies with me. I could only know the overall process
and theoretical aspects.

Most of the companies have strict regulations on its software and internal
documents, where I didnt get excess to learn more. In accordance with that
sharing information outside of the companies is prohibited, so I couldnt
write some internal issues.

CHAPTER 2
Literature reviews

CHAPTER 2

Literature review
2.1 Definitions
2.1. Logistics
Logistics is
"Part of the supply chain process that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to
meet customers' requirements".
"Describing the entire process of materials and products moving into, through, and
out of firm. Inbound logistics covers the movement of material received from
suppliers. Materials management describes the movement of materials and
components within a firm. Physical distribution refers to the movement of goods
outward from the end of the assembly line to the customer. Finally, supply-chain
management is somewhat larger than logistics, and it links logistics more directly
with the users' total communications network and with the firm's engineering
staff". "Process of moving and handling goods and materials, from the beginning to
the end of the production, sale process and waste disposal, to satisfy customers and
add business competitiveness".
"Process of anticipating customer needs and wants; acquiring the capital, materials,
people, technologies, and information necessary to meet those needs and wants;
optimizing the goods- or service-producing network to fulfill customer requests;
and utilizing the network to fulfill customer requests in a timely way".
"Customer-oriented operation management".

2.1.2 Supply Chain Management

"Supply chain management is the streamlining of a business' supply-side activities
to maximize customer value and to gain a competitive advantage in the
marketplace. Supply chain management (SCM) represents an effort by suppliers to
develop and implement supply chains that are as efficient and economical as
possible. Supply chains cover everything from production, to product
development, to the information systems needed to direct these undertakings".
"Supply chain management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics
management activities. Importantly, it also includes coordination and collaboration
with channel partners, which can be suppliers, intermediaries, third party service
providers, and customers. In essence, supply chain management integrates supply
and demand management within and across companies".
If Supply chain management is an integrating function with primary responsibility
for linking major business functions and business processes within and across
companies into a cohesive and high-performing business model. It includes all of
the logistics management activities noted above, as well as manufacturing
operations, and it drives coordination of processes and activities with and across
marketing, sales, product design, finance, and information technology".
"Part of the supply chain process that plans, implements, and controls the efficient,
effective forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to
meet customers' requirements".

1.

Logistics services

2.

Information systems

3.

Infrastructure/resources

1. Logistics services support the movement of materials and products from inputs
through production to consumers, as well as associated waste disposal and reverse
flows. They include activities undertaken in-house by the users of the services (e.g.
storage or inventory control at a manufacturer's plant) and the operations of
external service providers. They comprise physical and non-physical activities (e.g.
transport, storage and supply chain design, selection of contractors, freightage
negotiations respectively). Most activities of logistics services are bi-direction.
2. Information systems include modeling and management of decision making, and
more important issues are tracking and tracing. It provides essential data and
consultation in each step of the interaction among logistics services and the target
stations.
3. Infrastructure comprises human resources, financial resources, packaging
materials, warehouses, transport and communications. Most fixed capital is for
building those infrastructures. They are concrete foundations and basements within
logistics systems.

2.3.2 Components of Supply Chain Management

In the current business scenario, supply chain requires great consideration as it can
increase value of whole production process of an organization. Supply chain is
basically the whole process starting from the raw material from the suppliers to
manufacturing to packaging to warehouse to distribution to final reach of the
product or service to its intended consumers. So there is lot of components in
supply chain of a large company.
To analyze components of supply chain, Wal-Mart is taken that is global leader in
retail industry and also the largest corporation in the world (Walmart 2011). WalMart is continuously developing its business by developing its services and product
portfolio. The supply chain of Wal-Mart is also effective to enhance its
effectiveness within the industry (Hoppenstedt & Rathkolb 2005). This paper will
discuss about supply chain components and problems and approaches to solve the
problem.
Supply chain is a network that is used in business concern to sustain the exact flow
of information in the organization (Jespersen & Larsen 2011). Following are the ix
key components of the Wal-Mart's supply chain:

Production: Production is an important element of the supply chain of Wal-Mart.

Strategic decisions of Wal-Mart regarding production focuses on customer needs,
demand from market, capacity, quality and volume of goods (Wal-Mart 2011).
There are some problems that may occur in the production of Wal-Mart such as
changes in tastes & preferences of customers, new technology, and low quality of
raw material. To approach this problem for supply chain component, Wal-Mart
should conduct surveys and get continuous feedback from customers in timely
intervals as it would be 'effective to continue with the production as per their
changing needs and requirements (Jespersen & Larsen 2011).
Supply: Supply is an outsourcing process as through this an organization obtains
required material and inputs for production of its products & services. It is one of
the major components of the supply chain of Wal-Mart (Wisner, Tan & Leong
2008). Wal-Mart focuses on the quality of product, flexibility in prices, developing
velocity to determine supply of inputs that helps to maintain its low cost strategy
continue (Wal-Mart 2011). The price consideration in selecting the supplier for raw
material may create problem for Wal-Mart as it would affect its supply chain
management. To reduce this problem, management of Wal-Mart should consider
developing velocity, flexibility and quality in selecting suppliers as it would be
effective to reduce cost and to maintain lower cost level (Hoppenstedt & Rathkolb
2005).
Inventory: Inventory is also an important element of supply chain management as
it is essential for management to determine appropriate level of inventory within
the business to increase competitiveness. For effective management of inventory,
Wal-Mart focuses on day to day stock bases through Radio Frequency
Identification (RFID) technology. It is a technology that is basically used to track
remaining goods within organization (Wal-Mart 2011). By this technology

company can identify product availability through bar codes that are printed on
them. The more traffic in network may create problem in effective utilization of
this technique and may interpret wrong information that may affect the
organizational effectiveness (Hugos 2006). Increase in server database, continuous
improvement in technology will be effective to minimize impact of this technique
over supply chain management.
Location: Location is also an important part of business as it determines success of
the business (Lambert 2008). Wal-Mart emphasizes on customer demands and
determination of customer's satisfaction in determining places for its stores.
Identification of customer demand helps to determine the locations for store and
production facilities close to the consumers (Wal-Mart 2011). The selection of
inappropriate locations in other region without considering income level and living
standard of the customers may create problem for Wal-Mart in location selection.
The analysis of macro and micro environment before selecting location would be
effective to increase the supply chain management of the organization (Lambert
2008). Transportation: Transportation is intimately related to inventory decisions
and also with the customer requirements (Bolstorff & Rosenbaum 2007). Wal-Mart
uses stores to offer its products to the customers and by its own trucks for delivery
(Wal-Mart 2011). The use of store and its own truck for transportation may create
problem as strike by the employees may affect the delivery of its goods to the
customers that would affect its market share and customer base. To eliminate this
problem, management of Wal-Mart could make arrangement with external
transportation companies that will be used in the situation of strike (Bolstorff &
Rosenbaum 2007).

Information: Information is an important component of the supply chain of an

organization as it includes collection of information from end-users and to link
them with resources (U 2007). Wal-Mart is using linked computers through the
internet to execute information globally. All the stores globally are connected with
each other that help to get customer feedback and information and to implement
them within the business (Wal-Mart 2011). The information sharing with global
stores through the internet may create problem of misuse of data and theft of data.
To manage this problem, organization should use proper security and password
protection for using information.

2.4 Importance of logistics and supply chain management

2.4.1 Importance of Logistics
Logistics is significant to any company since it allows for a smoother running
of company processes as well as dealings. This flow in turn will help the
company generate more efficiently and help raise the amount of cash the
company will make.
Logisticians make certain that materials and information is provided at the
time of service delivery.
Even small businesses deal with finding suppliers, if not with transporting
merchandise to a store. Small business owners also conduct distribution
logistics with inventory and warehousing. And, every small business owner
can tell you about how they handle reverse logistics, with returned
merchandise or refusal of services. Larger businesses may deal in all four
logistic fields.
In the business environment, logistics either have an internal or external
focuses (inbound or outbound). Depending upon the business involved, this
part of the chain can be simple or complicated. For more complicated
procedures, third parties often are hired to conduct anyone of the four fields
within business logistics.
Third-party

logistics

(3PL)

involves

using

external

individuals

or

organizations to execute logistics activities that have traditionally been

performed within an organization itself. If, for example, a company decides to
export its product, it may hire a person or organization to help with
distribution logistics. Today, there is a movement toward building fourth-party
logistics (4PL), which integrates 3PL competencies and other organizations to

design, build, and run comprehensive supply chain solutions. A 4PL general
contractor would manage other 3PLs, truckers, forwarders, custom house
agents, and others, essentially taking responsibility of a complete process for
the customer.
Another specialty includes logistics consulting services. Firms in this industry
specialize in the production and distribution of goods, from the first stages of
securing suppliers to the delivery of finished goods to consumers. Such firms
give advice on improvements in the manufacturing process and productivity,
product quality control, inventory management, packaging, order processing,
the transportation of goods, and materials management and handling. In the
process, these consulting firms might suggest improvements to the
manufacturing process in order to use inputs better, increase productivity, or
decrease the amount of excess inventory. Consulting firms in this segment of
the industry also advise on the latest technology that links suppliers,
producers, and customers together to streamline the manufacturing process.
Even project management requires logistics, as one vein of this science
coordinates a sequence of resources to carry out projects. Typical constraints
in project management include scope, time, and budget, or the same
constraints involved in business logistics. The time constraint refers to the
amount of time available to complete a project. The cost constraint refers to
the budgeted amount available for the project. The scope constraint refers to
what must be done to produce the project's end result.

Reduced Delivery Time: Reduced delivery time refers to a shortening of the

period between a customer ordering a product and that customer receiving the
product. When companies need to ship inventory (as e-commerce businesses
do), delivery time is a vital concern of both logistics and marketing. By
shortening delivery time, businesses can impress customers and create loyalty
while adding more value to their processes than competitors have.
Pinpointing Customer Issues: With a highly efficient logistics strategy,
companies can easily track product orders and product shipment data. This
allows a business to spot exactly where a product has gone, what product was
originally ordered and shipped and what needs to happen to fix problems with
the order. With such expert tracking and communication procedures, a
business can easily placate an irate customer and turn a bad situation into a
good marketing opportunity.
Quality Control: logistics is also important to manufacturers, because it
allows for a high level of control over production processes and immediate
adaptations. A company does not want to produce flawed products that have
inherent problems few things are as damaging to a business's reputation. With
efficient logistics, a manufacturer can spot problems immediately and quickly
narrow down the issue to find the source and correct it.
Extra Services: Many businesses offer extra services as part of their
marketing strategy; these allow them to impress customers through advanced
customer service techniques. With modern logistics, companies can offer
advanced tracking options for product shipments that customers can track at
any time. Good logistics also allows for greater product customization and
tools for customers to use themselves.

2.4.2 Importance of Supply Chain Management

Organizations increasingly find that they must rely on effective supply chains,
or networks, to compete in the global market and networked economy. In
Peter Drucker's (1998) new management paradigms, this concept of business
relationships extends beyond traditional enterprise boundaries and seeks to
organize entire business processes throughout a value chain of multiple
companies.
During the past decades, globalization, outsourcing and information
technology have enabled many organizations, such as Dell and Hewlett
Packard, to successfully operate solid collaborative supply networks in which
each specialized business partner focuses on only a few key strategic activities
(Scott, 1993). This inter-organizational supply network can be acknowledged
as a new form of organization. However, with the complicated interactions
among the players, the network structure fits neither "market" nor "hierarchy"
categories (Powell, 1990). It is not clear what kind of performance impacts
different supply network structures could have on firms, and little is known
about the coordination conditions and trade-offs that may exist among the
players. From a systems perspective, a complex network structure can be
decomposed into individual component firms (Zhang and Dilts, 2004).
Traditionally, companies in a supply network concentrate on the inputs and
outputs of the processes, with little concern for the internal management
working of other individual players. Therefore, the choice of an internal
management control structure is known to impact local firm performance
(Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to

the development of supply chain networks. First, as an outcome of
globalization and the proliferation of multinational companies, joint ventures,
strategic alliances and business partnerships, significant success factors were
identified, complementing the earlier "Just-In-Time", lean Manufacturing and
Agile manufacturing practices. Second, technological changes, particularly the
dramatic fall in information communication costs, which are a significant
component of transaction costs, have led to changes in coordination among
the members of the supply chain network (Coase, 1998).
Many researchers have recognized these kinds of supply network structures as
a new organization form, using terms such as "Keiretsu", "Extended
Enterprise", "Virtual Corporation", "Global Production Network", and "Next
Generation Manufacturing System". In general, such a structure can be
defined as "a group of semi-independent organizations, each with their
capabilities, which collaborate in ever-changing constellations to serve one or
more markets in order to achieve some business goal specific to that
collaboration" (Akkermans, 2001).

2.5 Theories of logistics and supply chain management

2.5.1 Theories Logistic:

- A sigmoid function is a mathematical function that
produces a sigmoid curve- a curve having an "S"
shape. Often, sigmoid function refers to the special
case of the logistic function

Here r is interpreted as an intrinsic growth rate and k as the carrying capacity of the
environment The Ricker model is a limiting case of the Hassell model which takes
the form

2.5.2 Supply Chain Management theories:

The supply chain encompasses organizations and flows of goods and information
between organizations from raw materials to end-users (Handfield and Nichols,
2002).
The supply chain is a meta-organization built up by independent organizations that
have established inter-organizational relationships and integrated business
processes across the borderlines of the individual firms. A supply chain can also be
characterized as a borderless organization (e.g. Picot et al., 2001), a value net
(Bovet and Martha, 2000), a virtual supply chain (Chandrashekar and Schary,
1999), an interactive firm (Johansen and Riis, 2005), a multi-organization/singlesite coordinated operations network (Rudberg and Olhager, 2003), or an extended
enterprise (Davis and Spekman, 2004; Boardman and Clegg, 2001).
Management of such an arrangement refers to inter-organizational relationship
management with the objective of improving the overall profitability of the
activities and/or organizations involved. The current literature on SCM seems to
agree on the nature of the phenomena (e.g. Persson, 1997).
Although SCM has existed for almost 25 years, it still lacks a socio-economic
theoretical basis that may be used to explain and understand this particular form of
inter-organizational arrangement. Initially, two consultants from Booz, Allen and

Hamilton (Oliver and Webber, 1982) introduced the SCM concept. Several authors
have traced the theoretical foundations of SCM.
Thus, Svensson (2002) found that the theoretical foundation of SCM and
Alderson's functionalist theory (Alderson, 1957) have many similarities. Mentzer
et al. (2004) presented a unified theory of logistics based upon logistics capabilities
as a source of competitive advantage.
Recently, academics have presented valuable contributions, enhancing our
understanding of the concept of inter organizational management of different flows
of products and/or information (e.g. Ballou et al., 2000; Heikkila", 2002; Monczka
and Morgan, 1997; Srivastava et al., 1999; Frazier, 1999; New and Westbrook,
2004).
The majority of contributions focus on definitions and concepts from a functional
point of view (e.g. logistics, operations, marketing, and purchasing), providing
pragmatic recommendations on how to improve a firm's performance and
implementation of postponement by supply chain reconfiguration.
Prominent examples of such approaches can be found in Mentzer et al. (2001),
Cooper et al. (1997), Cigolini et al. (2004), Lambert et al. (2005) and Croxton et al.
(2001). Current frameworks of SCM present solutions on how to design and
manage particular relationships between various stages in a chain, but they do not
address the economic, strategic, and socioeconomic theoretical rationales behind
them (e.g. Min and Mentzer, 2004; Chen and Paulraj, 2004a, b).

Currently there's a gap in the literature on supply chain management studies

present: there is no theoretical support for explaining the existence or the
boundaries of supply chain management. A few authors, such as Halldorsson et al.
(2003), Ketchen and Hult (2006), and Lavassani et al. (2009), have tried to provide

theoretical foundations for different areas related to supply chain by employing

organizational theories. These theories include:

Resource-based view (RBV)

Transaction cost analysis (TCA)
Knowledge-based view (KBV)
Strategic choice theory (SCT)
Agency theory (AT)
Channel coordination
Institutional theory (InT)
Systems theory (ST)
Network perspective (NP)
Materials logistics management (MLM)
Just-in-time (JIT)
Material requirements planning (MRP)
Theory of constraints (TOC)
Total quality management (TQM)
Agile manufacturing
Time-based competition (TBC)
Quick response manufacturing (QRM)
Customer relationship management (CRM)
Requirements chain management (RCM)
Available-to-promise (ATP)

However, the unit of analysis of most of these theories is not the supply chain but
rather another system, such as the firm or the supplier-buyer relationship. Among
the few exceptions is the relational view, which outlines a theory for considering
dyads and networks of firms as a key unit of analysis for explaining superior
individual firm performance (Dyer and Singh, 1998).
2.6 Strategies of logistics and supply chain management
2.6.1 Strategies of logistics

How should organizations prepare themselves to deal with these emerging

trends? Top performing companies in our research are not only preparing
themselves for these challenges, but are seeking to exploit these elements for
advantage. Poor performers fail to do so. Customers see themselves as part of
a global network; the winners are those with the best relationships with the
best players. This is true not only for vertical relationships with suppliers, but
also fo horizontal relationships with other companies. It is not sufficient
anymore to think in terms of one's own sphere, but the unit of competition is
now the network. In this summary we present some key insights based on
what these top-performing companies from different sectors are doing
differently and we present the following checklist for your own logistics and
supply chain network.
First, top performers are prioritizing talent management as a priority for
growth. They are seeking to hire, retain, and incent individuals with strong
analytical and team-building skills, emphasizing communication, agile
decision-making, and an ability to work in a multi-cultural setting (PEOPLE).
Second, top performers have constructed a global governance process that
holds people to a standard of conduct and behavior, emphasizing integrated
planning but with enough room to maneuver around regional issues that
confront their global business unit (PROCESS). Process standards ensure that
there is a global set of policies and procedures that drives the right outcomes,
but also emphasizes that plans must be properly aligned throughout the supply
chain.
Third, they have developed long-term technology road maps that are aligned
with core strategic initiatives and customer expectations. Technology
roadmaps seek to drive better capabilities to price products and services

effectively and establish services that meet or exceed customer expectations

(TECHNOLOGY). nvestments in technology are made with the intent of
allowing people to make better decisions in an integrated manner, and are
always considered in light of customer outcomes.
Fourth, leading performers have established a precedent for creating network
partnerships, outsourced relationships, and bundled products and services with
key global partners, resulting in improved set of capabilities that are extremely
difficult to replicate (NETWORK). Organizations recognize that they cannot
lido it alone", but that those with the most capable network of suppliers and
logistics partners will win the end. This requires defining a culture that builds
trust and cooperation in global relationships, which takes time to achieve.
Finally, top performers have established a commitment to improving the
global community, with a plan to leave it in a better condition than when they
arrived, both in terms of carbon footprint and global standards
(COMMUNITY). By investing in green logistics and emphasizing labor and
human rights, these organizations will reap the rewards of these investments
in the years to come. Each of these strategies (PEOPLE, PROCESS,
TECHNOLOGY, NETWORK, and COMMUNITY) are next described.

People: Organizations must be able to quickly adjust and shift direction in

response to sudden changes in a complex environment. A responsive
organizational culture relies at its foundation on a highly capable and trained
workforce. People are the core of any organization, and top performers have
established a commitment to talent management. The goal of talent
management is to ensure people are enabled and capable of making decisions
in response to difficult and unstructured types of situations. Low performers
are more likely to perceive that talent shortfalls will be a major challenge in
the years ahead overall. Top performers are less concerned about talent
shortages in specific areas of expertise than non-top performers. This is
because their supply chain organization is partnering with human resources to
build a talent management strategy, explicitly measuring talent gaps, and
establishing organizational actions to address them. One of the strategies that
is important here is collaborating with universities on joint research,
establishing a presence on university campuses, and building a pipeline of
new talent. A second approach is to educate people more about logistics as a
career, and to "market" logistics as an exciting and growing career for young
managers and students. A third approach involves mentoring and developing
internal talent to work in logistics, including recruiting top talent from other
areas in the organization. A final element is further investing in training and
education for high potential employees to develop them and build loyalty to
your organization, as well as to promote people to different roles that will
challenge them. This is particularly important for young managers who seek a
challenging global career in logistics.

Process: As organizations grow, they need to have a strong core set of

policies, procedures, processes and culture upon which to build. But these
core processes must be able to fit any global situation or culture, which means
that there, needs to be room to flex. Organizations promote people who can
understand your culture through shadowing, mentoring, and plenty of training
and education opportunities. Not only will this improve retention but it will
grow capabilities, and allow innovation and new ways of working to flourish
in your global network. To establish a global process that can adapt to
different local regulatory, cultural, and network conditions means having the
right type of decision-maker that can operate within the context of a process.
An important finding from our research is that top performing firms indicated
that they prefer to hire and recruit individuals who have a strong rational and
analytical foundation. These individuals are able to use data to define
environmental conditions, and act on their logical interpretation of this data.
Top performers also seek managers who can consider the long-term impact of
their decisions, not just the immediate situation in front of them. Top
performing companies also prefer specialists who have deep knowledge in a
specific area, and thus have the experience to assess the situation. Finally, top
performers want individuals who have agility to work in unfamiliar global
environments as well as individuals who are prepared to work in a global
setting (often with multiple language capabilities when possible). To find and
develop these skills requires a focused approach to talent development. This is
a unique combination to find in logistics managers, but aligns well with our
previous observation of having individuals who can quickly grasp the
dynamics of a specific logistics situation, apply analysis and rational thinking
to the situation, and emerge with a clear solution that considers the long-term
implications of the outcome. As organizations expand globally, the need for a

global perspective is also important, and this is increasingly harder to find.

This represents a "tall order" for human resource specialists to identify and
recruit these types of individuals, and emphasizes the importance of casting a
wide net across multiple channels to identify them. It is interesting to note that
an important difference between top performing companies is that they are
more likely to be a stand-alone logistics organization and less likely to be part
of the procurement organization. This independence establishes logistics as a
critical global process with its own governance, but one that is aligned with
business needs. Although procurement has often considered logistics as
"slrnplv a buying activity", there is a clear need to differentiate the types of
logistics issues that require a distinct approach. We are much more likely to
see closer coordination between procurement and logistics in these
organizations, with logistics often playing a "consultative" role in defining
solutions for procurement and for business units alike.
Technology: Leading organizations are recognizing that to enable people,
technology must be leveraged to provide insights, visibility, and promote an
action oriented culture. Respondents expect 30 growth in new technology
investments in RFIO, inventory optimization software, as well as in analytics
and big data technologies. Technology investments that have a direct tie to
user requirements, customer
Responsiveness and accountability for results have the best promise of being
adopted successfully. Top performers are investing in a solid basis of robust
logistics and supply chain data, through ensuring that their data systems can
track events, transactions, and form a strong data-based analytics foundation
(ERP, 20 barcode). Such technologies will become the foundation for network
optimization, global material visibility, and end-to-end integration. As

multiple parties across the extended global supply chain have access to the
same "sheet of music", the global supply chain orchestra will be playing their
instruments, producing a masterpiece of sound. Technologies can help to
integrate planning processes and ensure aligned responses to global events,
and also provide a foundation for analytics that will become more important in
the near future for competitive decision-making. Technology will also enable
tracking of events beyond first tier suppliers, and provides a real-time update
of key performance indicators used to ensure optimization of supply chain
plans.
Network: The interdependencies of globally networked supply chains means
any disruption at a node radiates throughout the network. More than 70 of the
respondents stated that they apply close coordination with key suppliers as a
means to reduce disruptions. However, many organizations we spoke with do
not fully understand who the parties are in their supply chain, and are
increasingly becoming aware that tier 2 suppliers can shut down their entire
network if they are not paying attention. An important component of resilient
supply chains is thus building an understanding of not just who is in your
supply chain, but gaining insight into their capacity, limitations, and paths
through the network. End-to-end integration turns out to be among the most
important logistics and supply chain management strategy in the next five
years. Top performing companies are sharing more tacit data, especially
around R&D and other information that can provide a more holistic
understanding of requirements with their key partners. The other
distinguishing feature is that they are sharing information across a broader arc
of supply chain members, including tier two suppliers and LSPs. Our results
show that top performers are also applying cost-to-serve analytics for logistics

decisions, also in the context of outsourcing processes in the future. Indeed,

there are indications that some organizations are beginning to internalize some
manufacturing and other processes to gain better control over critical customer
impact areas.
Community: Your organization, like every other one in the world, can do
much that is good, and much that can harm the environment and the
community. As customers are more aware of these issues, proactive
organizations are exploring new ways to monitor and measure not just carbon
footprints, but also improved transportation networks, packaging, and end-oflife product strategies. In Germany, still less than 25 of the respondents
measure CO2 emissions or social responsibility. Our survey results suggest
that top performers are more likely to adopt green logistics strategies than
other companies. They also tended to rate corporate social responsibility as a
more important part of their logistics strategy than other companies in our
sample. The human factor is becoming a central point of contention, and
organizations are holding their suppliers to a single global standard when it
comes to labor and human rights violations. less than 50 of both stationary and
non-stationary retailers have adopted corporate social responsibility (CSR) in
their logistics strategy. In light of recent scandals in food, apparel, and
electronics supply chains, improvement in CSR supply chain management is
an imperative. Organizations will increasingly need to work both vertically
and horizontally with other agencies to form industry coalitions and
government partnerships that will make the world a level playing field and
one that continues to reduce its carbon footprint over time. These concepts
and ideas are not just theoretical, but are based on examples of people and
organizations we have interviewed, witnessed, met with, and researched.

There are certainly differences between industries and countries that are not
discussed in this study in detail, and there is always potential for bias based on
our sampling frame. However, we hope you will find these ideas to be worthy
of consideration in your strategic planning process, and hope they may help
you respond to the complexities of the logistics environment you face.
2.6.2 Strategies of Supply Chain Management
The past several years have been marked by increasing economic volatility, as
reflected by not only the global economic recession, but also the instability of
customer demand and rapid movement in raw material, fuel, and commodity
prices. Supply chain executives are under pressure to develop more efficient,
customer- centric supply chains and find innovative ways to reduce costs.
Meanwhile, they are being asked to take advantage of business opportunities
that may arise from the current economic conditions.
As a result, company leaders are prioritizing projects that reduce inventory
and logistics expense. Although this may help matters in the short term,
professionals risk ignoring the long term. Organizations must prepare for the
rebound while responding to the conditions of the new normal--a reduced
labor pool, stagflation and deflation, and issues surrounding energy and
sustainability. Effective strategies coupled with a well-defined plan and the
right tools will help alleviate pressure today and ready managers for market
changes in the future.

Strategy 1: Adopt demand-driven planning based on real-time demand

insights and demand shaping. The right prediction and contingency planning
tools will ensure a complete view and an effective response to risks such as
suppliers going out of business, political upheaval, and natural calamities
affecting manufacturing. Companies then can adjust pricing and promotions
strategies to shape demand, move additional product quickly, drive revenue
growth, or further expand margins for a high-demand product with limited
market supply. The key is to have the foresight to leverage opportunities and
mitigate challenging events so that your business not only survives, but
succeeds.
Strategy 2: Build an adaptive supply chain with rapid planning and integrated
execution. Once executives are able to better predict demand and risk, they
need to adapt their supply chains to changing market opportunities and events.
Companies must put in place dynamic planning and continually fine-tune
operations. The old model was to wait until the end of the month or quarter to
shift production and supply based on shipments and sales. The new model
calls for more continuous, dynamic supply chain adjustments to rapidly
respond to market changes. This can minimize or even eliminate shocks
across the supply network. The results include better visibility; enhanced
collaboration across the value chain, including sourcing and supply,
manufacturing, transportation, warehousing, and distribution; and accelerated
decision-making with better analytics and support.
Strategy 3: Optimize product designs for supply, manufacturing, and
sustainability in order to accelerate profitable innovation. Innovation is crucial
to being one step ahead of the competition. But innovation doesn't exist in a
vacuum. In order to be successful, products must be manufactured at the right

cost. Decisions made in the early cycles of product development can make or
break

the

product.

Designs

must

be

optimized

for

supply

and

manufacturability, and all the true costs must be accurately captured. In

addition, product innovation and competitive advantage increasingly stem
from the selection of suppliers and technologies. If a company can manage the
information, people, processes, and decisions regarding a product throughout
its life cycle, it can achieve strong dividends and market leadership.
Strategy 4: Align your supply chain with business goals by connecting sales
and operations planning (S&OP) with corporate business planning. Although
S&OP processes provide coordination among sales, manufacturing, and
distribution, there still are disconnects and gaps among finance, strategy, and
operations in many companies. One way to bridge these gaps is with
integrated business planning. This process integrates financial strategic
budgeting and forecasting systems with operations planning. The resulting
marriage of processes ensures revenue goals and budgets developed in finance
are validated against a detailed, bottoms-up operating plan. Concurrently, the
strategy reconciles the operating plan against financial goals. Integrated
business planning, which connects S&OP processes with corporate business
planning, enables companies to achieve the right balance of supply and
demand, aligned with strategic business goals. It provides real-time visibility
to all the key dimensions for success--demand, supply, product, risk, and
performance-- across the organization and throughout the extended supply
chain.
Strategy 5: Embed sustainability into supply chain operations. The triple
bottom line of people, profit, and planet has never been more important than it
is today. Studies show that companies striving for social and environmental

sustainability achieve major competitive advantages, especially with regard to

production efficiency, supplier management skills, and attractiveness to
employees. Substantial opportunities exist for sustainability in supply chain
operations:
Company leaders first need to include sustainability as a core
component of their supply chain strategy. This means incorporating it as
a key requirement across all supply chain processes.
Second, professionals initially should focus on the basics to achieve
quick wins through real-time visibility to energy and resource
consumption and resource or material movement. This enables
reduction of carbon inefficiencies, minimized energy consumption, less
waste with "recycle- reuse-refurbish" materials, and optimized travel
and transportation.
Businesses can keep the momentum by ensuring continuous
improvement through systemic measurement, audit, and knowledge
management. Compliance audits, best practices, and benchmarks
provide a governing framework for sustainable supply chain operations
and ensure clarity around the environmental impact of specific actions.

Effective Factor of logistics Support in Supply Chain Management

The report identified seven underlying factors that tend to be present whenever
supply chains go wrong. These are:

1. Offshoring, making it increasingly difficult for firms to monitor supply chains

adequately
2. Increasing complexity of supply chains, meaning companies were often unaware
of who their suppliers were subcontracting to
3. Cost pressures, which could lead to compromise on quality and ethics
4. Geographic clustering, making manufacturers vulnerable to a localised disaster
such as the Japanese tsunami of 2011
5. Modern communications, which can quickly damage reputations
6. Just-in-time production methods, which have reduced the time to recover from
supply chain failure
7. Dependence on multiple suppliers, increasing overall vulnerability.

Supply Chain Integration

An article in the last issue of Logistics Solutions (Sweeney, 2006) presented a
discussion of both the historical evolution of supply chain management (SCM).
From this it is evident that the concept of integration lies at the heart of SCM
philosophy (see, for example, Christopher, 2005; New, 1996, Lambert, 2004).
Cooper et. al. (1997) specifically described SCM as an integrative philosophy.
The work of Fawcett and Magnan (2002) identified four levels of integration in
practice.
1. Internal cross-functional integration;
2. Backward integration with valued first-tier suppliers;
3. Forward integration with valued first-tier customers; and,
4. Complete backward and forward integration (from the suppliers supplier to the
customers customer).

The first of these relates to integration of activities and processes which are carried
out within a single organization (i.e. internal or micro or intra-firm supply chain
integration).
The others describe varying degrees of integration of activities which span the
boundaries of organizations (i.e. external or macro or inter-firm supply chain
integration), with the last one being viewed as the theoretical ideal. The following
sections discuss internal and external integration in more detail. Supply Chain
Integration An article in the last issue of Logistics Solutions (Sweeney, 2006)
presented a discussion of both the historical evolution of supply chain management
(SCM). From this it is evident that the concept of integration lies at the heart of
SCM philosophy (see, for example, Christopher, 2005; New, 1996, Lambert,
2004). Cooper et. al. (1997) specifically described SCM as an integrative
philosophy. The work of Fawcett and Magnan (2002) identified four levels of
integration in practice.
1. Internal cross-functional integration;
2. Backward integration with valued first-tier suppliers;
3. Forward integration with valued first-tier customers; and,
4. Complete backward and forward integration (from the suppliers supplier to the
customers customer).
The first of these relates to integration of activities and processes which are carried
out within a single organization (i.e. internal or micro or intra-firm supply chain
integration).
The others describe varying degrees of integration of activities which span the
boundaries of organizations (i.e. external or macro or inter-firm supply chain
integration), with the last one being viewed as the theoretical ideal. The following
sections discuss internal and external integration in more detail. Supply Chain
Integration An article in the last issue of Logistics Solutions (Sweeney, 2006)
presented a discussion of both the historical evolution of supply chain management
(SCM). From this it is evident that the concept of integration lies at the heart of
SCM philosophy (see, for example, Christopher, 2005; New, 1996, Lambert,

2004). Cooper et. al. (1997) specifically described SCM as an integrative

philosophy. The work of Fawcett and Magnan (2002) identified four levels of
integration in practice.
1. Internal cross-functional integration;
2. Backward integration with valued first-tier suppliers;
3. Forward integration with valued first-tier customers; and,
4. Complete backward and forward integration (from the suppliers supplier to the
customers customer).
The first of these relates to integration of activities and processes which are carried
out within a single organisation (i.e. internal or micro or intra-firm supply chain
integration).
The others describe varying degrees of integration of activities which span the
boundaries of organisations (i.e. external or macro or inter-firm supply chain
integration), with the last one being viewed as the theoretical ideal. The following
sections discuss internal and external integration in more detail.

CHAPTER 3

Project work

CHAPTER 3
Project work
3.1 Questionnaires:
Questionnaires were our main challenges of this project. The questions are formed
considering the practical situation and phenomenon in some core areas.
1. How many days do you take to procure goods to your warehouse around the
world through sea, air or land?
Answer: By sea around 12 to 30 days load Port to destination port from far east
land around Asia, around 30 to 45 days from Europe and 30 to 50 days from
south /north America. By air 1 and two days from far east and inter Asia, 3 or 4
days from Europe and around 4 or 5 days from America. Land port use only India
and Nepal and only one day.
2. How long normally it takes in Chittagong sea port, Dhaka airport or other land
port to release the goods from shipping document and customs clearonce?
Answer: At Chittagong port customs processing time o.: 2 days. Dhaka airport
also takes 1 or 2 days. Otherwise it will take 5 to10 days.
3. How long it takes by truck/covered van or by train from Chittagong sea port to
Dhaka ICD?
Answer: By truck one day by train 10 to 12 days.

4. How much is the cost to carry the goods around the world by air, sea or land and
which is cheaper?
Answer: Use of sea is cheapest cost. By air it takes some extra cost of 400 to 500.
5. Have any barrier to clear the goods from Chittagong sea port customs, Dhaka
airport customs or land port customs to clearonce the goods?
Answer: Maximum time C&F agent offer extra cost of miscellanies without extra
cost most of time delay to clear the goods or other hassle.
Answer: We don't face any barrier because we have nominated a logistics company
for clearing goods from the port.
6. How much is the cost to carry the materials Chittagong sea port to Dhaka?
Answer: By road one TUE BOT (20,000.00 to 25000.00) and by Rail only $(5 to
100).
7. Where do you feel problem in procuring material from any international
destinations?
Answer: There are various carriers which charge more and not issue extra volume
or use long time trans-shipment delay which does not monitor.
8. Where do you feel problem in clearing material from sea port, airport or land
port?
Answer: Most of time it is most problem in custom and their agent and also
shipping agents

9. Where do you feel problem in transporting materials from Chittagong to Dhaka

or factory?
Answer: Unrest situation of political issue it is uncertain to reach goods from
Chittagong to Dhaka or traffic jam.
10. Which type of transport do you like to carry your goods and why?
Answer: For cost save sea is very important also Rail service.
11. Which transport mode do you think is cost effective?
Answer: Sea is most effective.
12. How many employees are working in your organization in logistic
Department?
Answer: Most of organization has 2 to 5 employees In logistics under supply chain
management department.
13. How many employees are working in your organization in supply chain
Department?
Answer: Most of organization has 3 to ID employees in supply chain management
department.

14. In your opinion which transport mode is most critical and why?
Answer: Air shipment is most critical because it should very careful at document
preparation only short time.
15. Which factor is affecting most in logistic department?
Answer: Logistics look after whole process of supply chain.
16. Which factor is affecting most in supply chain department?
Answer: Logistics and supply chain is overlapping one another
17. As a 3,d party logistic provider what types of services do you expect from
them?
Answer: 3rd party logistics al time support importer exporter and supplier for their
goods transformation one way or multimodal transport.
18. Which service will make you benefited in your opinion?
Answer: Sea is most effective for transportation it is easy 1nd low cost but from
Chittagong to Dhaka ICD, Train service to carry container, it is low cost but time
barrier. If we can minimize time duration of train cargo then it is business effective.

19. As a manufacturer/ Trader have what kind of support get from 3,d party
logistics company?

Answer: Maximum importer said after shipment they don't where their goods hold
and why it is normal way but without taking care cargo hold is trans-shipment
point. 3rd party logistics support to all procedure of Importer, Exporter and
supplier.
20. What kind of support aspect to 3rd party logistics?
Answer: Most of logistics company member of world transportation team and have
huge experience in business field of supply chain.
21. How logistics companies help to supply chain management?
Answer: The logistics company prepare a document 3gdlnst for shipment against
any importer or exporter and lasso of shipping company and multi modal company.
22. What is your opinion to presentation 3rd party logistics in the business situation
in Bangladesh?
Answer: At present situation almost 1500 logistics company in Bangladesh. They
are work at Chittagong and Dhaka. They are helpful for importer or exporter. They
also helpful for upcoming business oriented farm.

3.2 Contact list:

We found the above answers contacting to the following persons-

SL Company Name

Contact Person

Contact Number

01811458307
01817296509
01715017499

N
o
1
2
3

Bengal Group of Industries

Dekko Group
Sea Autos ( Importer and

Mr. NurunNabi
Mr. Sumon
Md Mainullslam

Supplier)
Riyan Machinery Equipment

Md Mahmudul Hassan 01713458737

(Importer and Supplier)

Trade Tech ( Importer and

Md Althaf Hossain

Supplier)
Digital Medical System Ltd.

Md Anwarul Kabir

(Importer and Supplier)

NRS scientific Ltd ( Importer Tarakasawar Narth

and Supplier)
Surma International

01733060190

01686723745

Md Sachch Mia

(Importer and Supplier)

9

Repon light house (Importer and Md Repon

Supplier)

10

Guarantee fiber Itd

Md Mohsin Ali

01817085574

11
12
13
14
15
16
17
18
19
20
21
22

(Exporter)
Sunny trade (Exporter Importer)
Razdhani Hardware (Importer)
lotus-bud Freight & logistics
Bandex Knitwear ltd.
Hamko Battery ltd.
Navana Battery ltd.
Smartex Composite ltd.
Pears Composite ltd.
Notex Composite ltd.
Akij Group
Akij Group
Shah Cement Ind. ltd.

Md Sunny
Md Sizar
Md AftabUddin
Ashish Kumar
Debashish Kumar
Mr. Alam
Mr. Jewel
Mr. Himel
Mr. Ratul
Mr. Azad
Mr. Mortuza
Mr. Delwar

01911216441
01718319369

01717270078
01922111061
01815473228

CHAPTER 4

Findings

CHAPTER 4
Findings
4.1 Findings
4.1.1 Effective communication
As it is taking a bit long time to receive the goods, customer of ten
expects the current information about the location of the goods.

Some international service providers are informing the locations

every time, anybody can track their goods. For example we can track
the goods in DHl, TNT, FEDEX etc. anytime from anywhere of the
globe. No one of the local logistic service provider have these
facilities. This is area to improve effectively.

Effective communication helps us better understanding a customer

or situation and enables us to resolve differences, build trust and
respect and create environment, where creative ideas, problem
solving and caring can flourish.

4.1.2 Trade/Freight charge information

Most of exporter is busy to loading the shipment they does not
follow sea or air freight of different carrier. It is difficult to inform
the customer the actual charges because of variance of charges in
some different key indicators, also difficult for the logistic provider
to guess the actual charges. There is a big gape in this area between
the customer and the supply chain and logistic provider.

When the charges changing time to time, they should inform to the
customer accordingly. It is the effective way to build relation with
the customer.

4.1.3 Transport
The road transport faced problems from external forces unsteady
political situations. In Bangladesh Hartal (Strike) and road blockade
are only medium of significant protests. So the transport is
vandalized or burnt and halt by protesters. Road is also not properly
made for smooth transportation. Traffic systems are old to cope
modern demand. This paper presents a normative model for efficient
goods movement promoting supply chain integration in developing
economies. Supply chains encompass a holistic throughput of goods
movements to and from partner organizations including internal and
external suppliers. Similarly, multimodal freight transport represents
an integrated system for moving goods quickly and inexpensively
from shipper to consignee by at least two different modes under a
single contract. The initial discussion considers the influence of
containerization on international freight transport and some benefits

and limitations of multimodals. A trend towards supply chain

integration and the implications for intermediaries and shippers or
manufacturers in freight transport systems are discussed. Various
barriers to supply chain integration in developing economies are
presented. A case study of the scope for developing multi modal
transport is reviewed in the light of particular national transport
problems facing Bangladesh. Conclusions note the potential for
multimodal freight transport to provide a catalyst for removing trade
barriers and offer a model for achieving supply chain integration in
such economies.
Transportation is the movement goods or service from one location
to another. Modes of transport include air, rail, road, sea. The field
can be divided into infrastructure, vehicles and operations. Without
effective transport system the operations of logistics or movement of
goods will fail measurably.
4.1.4 Customer service (After delivery service)
Logistics service providers integrate functions across the supply
chain, from sourcing of raw materials, through to product

manufacturing and the distribution of finished goods. A consolidated

view of this information is a large part of the expected value to their
customers.
In order to deliver this value, logistics service providers require
scalable systems that effectively manage the depth and breadth of
data and that reliably delivers the data. Viewlocity Technologies'
visibility and control solutions enable a secure view of information
across the extended supply chain.
Business processes differ by customer and product lines. logistics
service providers need insight into business process in order to:
Identify which business processes are not working, where cost
efficiencies and opportunities can be gained and provide continuous
improvement of supply chain processes.
Velocity

Technologies

solutions

provide

metrics

and

key

performance indicators that identify variances and repeated

discrepancies in your business processes. The scorecards and reports
presented enable continuous improvement of extended supply chain
processes specific to each business partner, business unit and

product line. Logistics service providers have investments in

transportation

management

systems,

warehouse

management

systems and other technologies that provide a portion of the

capabilities needed by their customers. For real end-to-end visibility
and control of the supply chain, customers must have an integrated
view of orders, shipments and inventory.

Velocity Technologies' solutions works with your existing systems to

provide a single 'version of truth' for all transactions related to the
flow of goods in your supply chain. The tools keep all your systems
synchronized and provide your customers with real-time information
to improve the performance of your supply chain. In our country, the
logistic providers are just helping in carrying the goods but effective
customer service helps effectively and efficiently in the business
expansion.
Customer service is one of most important part of logistics supply
chain management. A good customer service is the lifeblood of any
business. Sales people can offer promotions and slash prices to

bringing as new customer as they want but unless get some of those
customers to come back, the business won't profitable for long.
Good customer service is all about bringing customers back.
4.1.5 Mark and number
Without marks and number packing goods don't finding for delivery
to the customer. It is often seen that label of the box is broken or
can't find. It is very embarrassing situation both for the customs
officer and CNF agent. It results the delay of clearing the goods.
Also affects in the total charges of clearance.

4.1.6 Wrong H.S code and shipping mode

It is most difficult to deliver the goods to customs house for wrong
H.S code and wrong information of Bill of Loading.
4.1.7 Strike

Each day causing a loss of around $200 million, by one estimate.

The estimated annual average cost of hartals is between 3 percent
and 4 percent of the country's $110 billion gross domestic product
(GDP), according to a study. These costs include foregone earnings
and lost employment and output, as well as long-term impacts due to
reduced

savings,

indebtedness,

capital

losses

and

reduced

profitability for businesses.

One of the most serious aspects of damage caused is the negative
image costs of hartals in deterring foreign investors from making
their way into the country, making Bangladesh increasingly less able
to compete with regional competitors.
Strikes also impose non-economic costs on people, including
considerable psychological stress and a sense of personal insecurity.
A study conducted earlier by the United Nations Development
Programme (UNDP) and rough estimates by International Chamber
of Commerce Bangladesh reveal these shocking figures and impacts.

The recent hartals are much more damaging because the economy
today is more integrated The impact is not limited to shipment of

export consignments only. It has also hurt farmers who send

vegetables, fish and other agricultural goods to urban areas.
Disruption in communication also takes a toll on industries that cater
to the domestic market. Products are piling up at their warehouses. A
feeling of insecurity has affected domestic demand. Businesses keep
shops and offices open. But customers don't come.

The static losses of hartal per year are likely to be in the range of 0.5
percent to 1 percent of the GDP.

Impact on industries and trade:

Hartal affects the entire production and supply chain. Incessant
shutdown affected production in all factories as all workers could
not attend work.

Exporters have to ship export consignments regularly. But we could

not send anything for shipment in the day of strike.

The major loss is the damage to our image abroad.

At Chittagong Port, the shutdown caused a dip in delivery of
imported products, forcing importers to count huge losses for
overstay of their imported goods in the port yards. The daily
delivery of import containers slumped to 200 twenty-foot equivalent
units (TEUs) due to shutdown, from nearly 1,500 TEUs of
containers on normal days.
Clearing and forwarding (C&F) agent informed that one of his
Dhaka- based clients had to pay more than $250 as demurrage to the
port authority. They have to count extra Tk 4,000 for each of 20
trucks to transport the goods to Dhaka.
4.1.8 Political situation of the country
Along with foreign competitors, currently hundreds of local freight
forwarding companies is engaged in logistic business. There was a

growth in investments in the sector as the trade volume of the

country was increasing.
The political unrest was spelling short-term problems for business of
freight forwarding, the repeated flare-ups of unrest in the exportoriented apparel sector caused long-term problems. "As many
buyers are looking for alternative markets, it shows they are losing
their confidence in us fast because of the political instability and
resultantly the growing logistics business is at stake."
Currently many orders for apparel products were being shifted to
India, Vietnam, Cambodia and Myanmar as the buyers found those
countries more stable than Bangladesh.
Coming days the volume of air freights might increase as the
exporters were unable to make shipments by sea due to the
shutdowns affecting transportation of goods by road.
Entire logistic business collapsed and there could be a long-term
effect of it on the business, if the trouble in the ready-made garment
(RMG) sector continues.

More than 80 per cent logistics firms were in trouble, as they were
not getting enough cargoes and were failing to maintain shipment
schedules. Transportation of raw materials from ports to Dhaka is
hampering seriously and resultantly production in factories and
exports are also affecting.
Volume of cargoes both by sea and air declined indicating that
Bangladesh was left at risk of losing all business.

After the glory days of jute the promising RMG sector also might
lose the international market, if this political situation continues.
Millions of dollars were invested in the cargo depot business, but
due to various reasons the logistics business was facing serious
trouble.

Overall investments in the business were left at risks, though it was

masterminded to ease the pressure of export and import business on
ports.

Though the short-term problem caused by the political instability

could be overcome, it became a big headache that the buyers were
losing their confidence in the local manufacturers.

Customer service is one of most important part of supply chain

management. A good customer service is the lifeblood of any
business. Sales people can offer promotions and slash prices to bring
in as new customer as they want, but unless get some of those
customers to come back, the business won't profitable for long.
Good customer service is all about bringing customers back.

Logistics business would be the worst-affected area, if this sector

faces further trouble in the coming days.

4.1.9 Bribe in different sections

Corruption is all-pervasive in Bangladesh. Though corruption has
been a part of our politico-administrative heritage, there is little

denying the fact that after independence the tentacles of corruption

have engulfed the entire society.

It is usually known that almost all kinds of corruption perpetuate in

politics and administration in Bangladesh. The most common form
of corruption is pecuniary bribes.
Bribe is ultimately increasing the cost for the customer, for the
nation, for the country finally. Release the goods from the customs
initially, then in several places on the way.

4.1.10 Lack of direct oversight

One of the downsides of using 3PL services is that the client
businesses have no direct control over their operation. They are
relying on the 3PL company to consistently come through in
delivering the promised services. This lack of direct control means
that client companies are at the mercy of any problems the 3PL
company faces. Beyond the possible loss of business, the damage
that results from

3PL services failing to deliver certain products on time are the client
company's problem, not the 3PL services.
4.1.11 Disadvantages

Loss of control over logistics functions

Distance from clients - loss of personal touch
Difference of opinion in perception of the service level
Impact on in-house workforce

CHAPTER 5

Remedies
And
Potential
Improvements

CHAPTER 5
Remedies and potential improvements

5.1 Remedies and potential improvements:

5.1.1 Effective communication
Contacting to the customers time to time is the solution.

5.1.2 Trade/Freight charge information

When the charges changing time to time, inform to the customer
accordingly. It is the effective way to build relation with the customer.

5.1.3 Customer service (After delivery service)

Good customer service is all about bringing customers back. After
delivering the goods, contact to the for relationship building.

5.1.4 Mark and number

Mark the number and mark properly by a sticker.

5.1.5 Wrong H.S code and shipping mode

Select the right HS code.
5.1.6 Political stability of the country
Stable political environment is the essence of the economic logistic
performance and economic supply chain management between trader
and manufacturer.

CHAPTER 6

Conclusion

CHAPTER 6
Conclusion
6.1 Conclusion:
This paper has given an account of and the reasons for the widespread use of
logistics and supply chain management. This dissertation has investigated of the
weak points of logistics and supply chain management in our country. This project
was undertaken to design the limitation and evaluate the remedies of limitations of
3rd party logistics provider. Returning to the hypothesis/question posed at the
beginning of this study, it is now possible to state that the possibility of discussing
the problems regarding the mentioned subjects.
The following conclusions can be drawn from the present study

Effective communication
Trade/Freight charge information
Customer service (After delivery service)
Political situation, strike
Mark and number
Wrong H.S code and shipping mode

The results of this study indicate that effective communication, customer service,
political situation and strike are affecting strongly in 3rd party logistic provider and
supply chain management.
This research will serve as a base for future studies. A limitation of this study is
that the numbers of patients and controls were relatively small. Future research
should therefore concentrate on the investigation of the above mentioned areas
broadly. The findings of this study have a number of important implications for
future practice.

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