Supply Chain Management system of ‘Aarong’

1. Introduction:

In today’s competitory universe of Business competitory advantage can be gain by proper information system and developing that information system. Aarong information system is a mark of the modern concern organisation of Bangladesh. Supply concatenation direction is the streamlining of a business’ supply-side activities to maximise client value and to derive a competitory advantage in the market place. Supply concatenation direction ( SCM ) represents an attempt by providers to develop and implement supply ironss that are as efficient and economical as possible. Supply ironss cover everything from production, to merchandise development, to the information systems needed to direct these projects.

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1.1. Background of the survey:

Aarong emanated from BRAC’s nucleus mission of relieving poorness and authorising people. In the 1970s, BRAC was analyzing any and all possibilities for alternate signifiers of productive support, particularly for adult females, and the proper commercialisation of art and trades turned out to be a promising option. In December 1978 when BRAC decided to open its ain retail mercantile establishment under the trade name name Aarong, intending ‘village fair’ , it broadened its weaponries to include other craftsmans and maestro craftsmen throughout Bangladesh who were involved in the devising of handcrafts for coevalss, and were happening it highly hard to last in the freshly formed state. Ever since so Aarong has been assisting to set up market linkages for rural craftsmans, revive trades and construe them for the modern-day market place.

1.2. Objective of the Survey:

The chief aim of the study is to happen out the supply concatenation direction system of Aarong by utilizing Management information system. The chief aims of these studies are,

1. To cognize Aarong’s information system2. To cognize how they use MIS for supply concatenation direction3. To cognize the organisational construction of Aarong4. To cognize the merchandise publicity of Aarong5. To cognize their office direction6. To cognize the communicating construction of Aarong for the direction of supply concatenation.

1.3. Restriction of the Survey:

In every research work at that place be some restrictions that the research worker faces while carry oning different activities. In the procedure of research work, we besides come across certain restrictions that hampered the existent findings and analysis of our research work. Some of restrictions can be identified are: 1. Employees of Aarong are normally busy with their day-to-day work and activities, so it is rather impossible sometime to acquire clip from them for acquiring information about our study. 2. Sometimes the authorization does non supply their internal information which is really hard to roll up from any other beginnings. 3. This is rather hard to roll up all the information of supply concatenation direction of Arong by utilizing Management Information System.

2. Methodology of the survey:Methodology is the life blood of a study. The methodological analysis of these report’s are,2.1. Data aggregation technique:1. Questionnaire: A structured questionnaire was asked to the different people of different countries where the Aarongs super shop is situated. 2. Observation: we were visited Aarong’s Mohammadpur Branch and observed their merchandises monetary values and their shop’s environment. 3. Secondary information: secondary information has collected by reexamining web sites, Diaries and some other relevant paperss.

2.2. Beginnings of Data Collection:1. Primary Beginning: the primary information is gathered through informal interviews of the employees working over there under direction degree, their salesman who are straight involved with selling merchandise and besides observation while sing the office premises. 2. Secondary Beginning: Secondary beginnings had besides used to roll up information. Secondary beginnings include: a. Features and articles published in newspapers and other diaries. B. Visiting web site of Aarong ace shop.

3. Current Scenario of Aarong:Today, Aarong’s range has spread from where it started, Manikganj, to the remainder of the state. From a individual store, Aarong has grown into one of Bangladesh’s biggest retail ironss offering one-stop shopping experience through 10 shops spread across the major

Metropolitan countries of the state – in Dhaka, Chittagong, Khulna and Sylhet and one in London, UK. Aarong showcases over 100 merchandise classs from dressing to household points, gifts and manner accoutrements to children’s playthings, cultural wear to beautiful trades, from silks, handloom cotton, Endi to Terracotta, bamboo, jute and much more. Aarong besides plays the function of defender and booster of traditional Bangladeshi merchandises and designs. It houses an extended design library where leftovers of our rich trade heritage, such as Nakshikantha art and Jamdani forms, have been widely researched and archived for nowadays every bit good as future usage.

3.1. Aarong’s Mission:Aarong’s mission is to assist prolong rural workmanship and happen a wider market for their merchandise nationally and internationally.

3.2. Aarong’s Vision:Aarong has one mercantile establishment in London and exporting to other states of North America, Europe and some Asiatic states. Because of migrating Bangladeshis in those countries, they are aiming to do more franchising activities in those North American and European part. They fundamentally are aiming those activities after fulfilment the client demand in domestic market.

3.3. Merchandises of Aarong:

Some merchandises image is given below.

4. Aarong’s Supply Chain:

Figure 1: Supply concatenation system of AarongAarong’s supply concatenation is the motion of stuffs as they flow from their beginning to the terminal client. The whole supply concatenation of Aarong includes buying, fabrication, repositing, transit, client service ; demand planning, supply planning and Supply Chain direction. It is made up of the employees, activities, information and resources involved in traveling a merchandise from Aarong’s provider to its client. 4.1. How Aarong’s Supply Chain Management System is build: Aarong’s supply concatenation direction system is a group of things working together. Computers, fax machines, informations storage system, runing personals, processs for the employees and the most critical constituents of Aarong’s supply concatenation direction system are its telecommunication system.

Cell phones helped Aarong to make a communicating web with every providers and transit spouses across the state. All this constituents work together to supply information to roll up merchandises, pull off the providers, to supply services, create study etc. Different computing machine software’s are besides used in the supply

Chain direction of Aarong but the chief supply concatenation direction package is developed by Aarong. This package is used for both supply concatenation planning and to assist them to put to death the supply concatenation stairss. Aarong has hired trained professionals to run its supply concatenation direction system and maintain updating.

Aarong’s supply concatenation direction system can be divided into two systems. Both of this system is critical for Aarong’s concern. 1. Supply Chain Planning System and2. Supply Chain Execution System.

4.2. Supply Chain Planning System:

Aarong’s supply concatenation planning helps Aarong to make a theoretical account for its bing supply concatenation, its helps direction to mensurate demand prognosiss for different merchandises and develop a manner to happen best beginning for run intoing those demands and fabrication programs. Aarong have turned to their clients for aid. By pass oning straight with clients about what they want and by acquiring their feedback on bing merchandises, direction are able to more accurately understand the demands and wants of their mark audiences. With this information, they can do a prognosis that reflects client world. Furthermore, improved engineering has of Aarong made it even easier to acquire their custodies on client feedback. The Website of Aarong for illustration, makes it possible for organisation to pass on with clients in real-time, so they can so utilize the informations instantly in their prognosiss. Aarong has developed a cardinal database for all the information and it gives entree to providers and spouses.

These engineering betterments along with real-time client feedback have made it possible to more accurately predict gross, net income, and gross revenues in the close hereafter. More accurate planning means that Aarong can work together with their sellers and distributers to sketch a program that makes sense based on those prognosiss so that no 1 is put into a negative state of affairs. Overall, supply concatenation planning is a critical constituent of Aarong’s supply concatenation direction. Without accurate planning abilities, concerns end up cutting into their gross unnecessarily and perchance seting sellers and distributers into hard state of affairss that may strive the supply concatenation relationships in the long tally.

4.3. Supply Chain Execution System:

Aarong’s supply concatenation executing system is chiefly consists of its transit spouses. They manage the flow of merchandises though distribution centres and warehouses to guarantee the merchandises are delivered to the right locations in the most efficient mode. Aarong track the physical position of goods, the Management of stuffs, warehouses, transit operations and fiscal information affecting all parties.

4.4. Aarong’s Supply Chain Management Procedure:

1. Planning: Aarong’s supply concatenation direction planning starts at the top of the direction. Management tries to equilibrate out the demand and supply to run into Aarong’s sourcing, production, bringing and return demands.

2. Sourcing: Aarong has big pool of beginnings to run into it supply. As the demand requires providers come up with natural stuffs and goods. Then it creates a merchandise which we can work.

3. Making: Co-operatives comes up with concluding goods and they deliver them to the concluding processing subdivision of Aarong. The goods or merchandises are ready to utilize for the clients.

4. Delivering: Aarong’s presenting procedure is managed by its ain transit. Aarong straight distributes its merchandise to the consumers. Their occupation is to administer cargos decently. “Just-in-time” is followed in bringing procedure.

5. Returning: Tax return procedure is dwelling of merchandise returns and station bringing client support which is done by Aarong. Generally Aarong obtained their merchandises to their consumers within 30days.Its besides includes Aarong’s return procedure.

6. Logisticss: Aarong’s exceed degree direction programs, supportive relation to their consumers and control of all other factors that have an impact on the supply concatenation. 4.5. Aarong’s Supply Chain Management Information Flow:

Information flows from clients to Employee or from employees to runing forces in the information system. Then information goes to the floor director. Floor director shows it to the advisers of Aarong. Adviser shows it to the top degree direction of Aarong. Top degree orders its providers to modify, better or make merchandise to run into the client demand.

4.6. Managerial Skills:

Aarong has trained runing forces for its accounting section and web site. Operating forces occupation is to keep the information system and fix if any mistake of all time occurs. Aarong’s runing forces are extremely qualified in their occupation sectors. Aarong’s information system is designed to be employee friendly. Employees do non hold to cognize batch about engineering to run its regular applications. Its information system is really unafraid. Employees purely follow all the principled regulations. All customers’ orders, references or any sort of information is staying private. Accuracy is practiced and monitored by runing personnel’s. Access of employee information is purely out. So Aarong has the ability to set engineering scheme alliance to suit the usage of IT and manage concern procedure. The Internet has emerged in the recent yesteryear as a dynamic medium for imparting minutess between clients and houses in practical market place.

In peculiar, the World Wide Web has emerged as a powerful new channel for supply concatenation, rendering many mediators obsolete, and drastically revamping the value concatenation. So Aarong has taken the chance to spread out its concern through cyberspace. Aarong’s employees can see as an plus for this sort of enlargement. But in our state the growing in e-business seems slow although cyberspace is disputing the traditional supply concatenation constructions that houses have employed to acquire goods and services to market. Aarong has re-evaluated their value proposition to clients, and run into the challenges of more agile challengers. Aarong seems to be one of the organisation which is interested provide online based order and information system to its client. So Aarong has a really eye-popping managerial accomplishment in cyberspace based supply concatenation.

4.7. Aarong’s public presentation betterments by Supply Chain Management:

4.8. Competitive Advantage of Aarong’s Supply Chain Management System: Rival analysis in selling is an appraisal of the strengths and failings of current and possible rivals. This analysis provides both an violative and defensive strategic context through which to place chances and menaces. Competitor profiling coalesces all of the relevant beginnings of rival analysis into one model in the support of efficient and effectual scheme preparation, execution, monitoring and accommodation. Aarong has its ain version of the competitory analysis and its map is clear: to line up your merchandise with other merchandises and demo where yours falls short and where yours is superior. Each industry brings a different spin to this old favourite and user experience design has its ain set of standards by which to justice rivals.

5. Graphic Analysis:

A structured questionnaire was asked to the different people of different countries where the Aarongs super shop is situated. We surveyed this questionnaire of Aarongs employees and gather much information about supply concatenation direction. On this footing we made some graphical chart for demoing some of import issue.

5.1. Systems are presently used in Aarong:

For the computation see Table no: 2 at page 19

5.2. Confronting the jobs below when utilizing these systems:

For the computation see Table no: 2 at page 19

5.3. Competitors Analysis of Aarong:

Aarong has competitory advantage over its rivals on about every factor. Merely few companies have ability to trail some kind of advantage like Aarong. Such as qualities and innovativeness, Kay-Kraft and Anjan’s provider, Rang’s colour and Khubsoorti’s cost. Aarong has gain competitory advantage through its supply concatenation direction system. Aarong has a huge web system with its 1000s of providers and makers which gave Aarong superior production and resource allotment power. Rivals do non hold power that can fit Aarong’s production capableness so they are losing shelves. SCM keeps path of its provider and its stock list decently so at that place less dearly-won and hustle free for the employees. Performance of service has increased more than its rivals so there are more satisfied clients of Aarong.

6. Decision:There is a ground why Aarong is at the head of the urban fashion-scene. Their advanced vesture line fuses cultural wear with planetary tendencies utilizing traditional Bangladeshi stuffs. Aarong is a support endeavor of BRAC. A important part of their net incomes are invested towards bettering the socio-economic criterions of deprived craftsmans and underprivileged rural adult females of assorted communities. Aarong organisational vision will be achieved swimmingly and that is the adult females will be empowered through “grass-root degree adult females entrepreneur development” and this authorization will alter the overall scenario of economic status.

7. Recommendations:

With multiple shops in Dhaka, Aarong is a leader in superstore retail organisations. The combination of quality and monetary value under assorted trade name name offers clients value for their money. We have examined and evaluated the operations of Aarong. We recommended the followers in to order to guarantee continued success for the hereafter of all Marks and Spencer shops. 1. Find alternate beginnings to Markss and Spencer shops abroad. 2. Increased selling attempts.

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Supply Chain Management system of ‘Aarong’. (2017, Jul 19). Retrieved from