Assignment On Supply Chain Management System Of Aarong

Executive Summary

In

todays

competitive

world

of

Business

competitive

advantage can be gain by proper information system and developing that information system. Aarong information system is a sign of the modern business organi ation of Bangladesh. Aarong is a chain of retail outlet located in ma!or cities in Bangladesh an enterprise of B"AC. It established in #$%&' Aarong is a fair trade organi ation dedicated to bring about positive changes in the lives of disadvantages ascertains and underprivileged

rural woman by reviving and promoting their s(ills and craft. "eaching out to weavers' potters' brass wor(ers' !ewellary' !ute wor(ers' bas(et weavers' wood carvers' leather wor(ers and more' Aarong' to embraces and nurtures a diverse representation of )*+++ artisans wor( with the collaboration of &*, of whom are women. -oday' Aarong has become the foundation upon which independent cooperative groups and family based artisans mar(et their craft' in an effort to position the nations handicraft industry on a world platform of appreciation and ac(nowledgement. Aarongs supply chain management .SCM/ is the integration and management of supply chain organi ations and activities through collaboration' effective business processes and information sharing with women co0operatives. It has become a great tool for Aarong to deal with competition and increasing customer satisfaction demand to its for value. -o provide complete the domestic and foreign buyers'

information must be available in real time across the supply chain and this is achieved by Aarongs integrated software system for supply chain management. 1eb technologies enable Aarong to become more effective' to trade with suppliers and customers over the Internet in real time. Implementation of the supply chain information systems in Aarongs facilitates an increase in its competitiveness and profits.

Background:

Aarong emanated from B"ACs core mission of alleviating poverty and empowering people. In the #$%+s' B"AC was e2amining any and all possibilities for alternative forms of productive livelihood' especially for women' and the proper commerciali ation of art and crafts turned out to be a promising option. In 3ecember #$%& when B"AC decided to open its own retail outlet under the brand name Aarong' meaning 4village fair' it broadened its arms to include other artisans and master craftsmen throughout Bangladesh who were involved in the ma(ing of handicrafts for generations' and were finding it e2tremely difficult to survive in the newly formed country. 5ver since then Aarong has been helping to establish mar(et lin(ages for rural artisans' revive crafts and interpret them for the contemporary mar(etplace.

Todays Aarong:
-oday' Aarong6s reach has spread from where it started' Mani(gan!' to the rest of the country. 7rom a single shop' Aarong has grown into one of Bangladesh6s biggest retail chains offering one0stop shopping e2perience through #+ stores spread across the ma!or metropolitan areas of the country 0 in 3ha(a' Chittagong' 8hulna and Sylhet and one in 9ondon' :8. Aarong showcases over #++ product categories from clothing to household items' gifts and fashion accessories to childrens toys' ethnic wear to beautiful crafts' from sil(s' handloom cotton' 5ndi to -erracotta' bamboo' !ute and much more.

-oday' few urban consumers will argue that Aarong is the local Mecca for deshi handicraft. Aarongs product designs has brought consumer attention bac( to the products and styles that are indigenous to Bangladesh' its designers blending the traditional with the contemporary in a manner that has won instant consumer appeal' starting a revolution in trends that has now been ta(en up by countless other bouti;ues and stores. Aarongs product designs focus on the diverse types and te2tures of crafts and patterns that have

been passed along from generation to generation among weavers and artisans in craft hubs around the country.

Aarong also plays the role of protector and promoter of traditional Bangladeshi products and designs. It houses an e2tensive design library where remnants of our rich craft heritage' such as <a(shi(antha art and =amdani patterns' have been widely researched and archived for present as well as future use.

Aarongs Mission:
Aarongs mission is to help sustain rural craftsmanship and find a wider mar(et for their product nationally and internationally.

Aarongs Vision:
Aarong has one outlet in 9ondon and e2porting to other countries of <orth America' 5urope and some Asian countries. Because of migrating Bangladeshis in those areas' they are targeting to ma(e more franchising activities in

those <orth American and 5uropean region. -hey basically are targeting those activities after fulfillment the customer demand in domestic mar(et.

Products of Aarong:
MEN'S P !"#$TS: Traditiona%& Executive S'irts& Maan(a & *urta& T+s'irts&Sto%es,S'a-%s& Sanda% etc. )otua& S'ort

/!MEN'S P !"#$TS: Traditiona%& 1estern Nig't-ear&& S'a-%s,Scarves& S'oes& Bags & )a0rics.

$123" EN'S P !"#$TS: $%ot'es& Toys& Books& S'oes !t'ers: >ome -e2tile' >ome Accessories' =ewellary' 9eather -erracotta Bamboo?Cane?9eaf' Metal' Candles' =ute' Ceramics' <a(shi 8antha' @aper' 1ood' Alass

Aarongs Su44%y $'ain:

Aarongs supply chain is the movement of materials as they flow from their source to the end customer. -he whole supply chain of Aarong includes purchasing' manufacturing' warehousing' transportation' customer serviceB demand planning' supply planning and Supply Chain management. It is made up of the employees' activities' information and resources involved in moving a product from Aarongs supplier to its customer.

1o- Aarongs Su44%y $'ain Management System is 0ui%d:

Aarongs supply chain management system is a group of things wor(ing together. Computers' fa2 machines' data storage system' operating personals' procedures for the

employees and the most vital components of Aarongs supply chain management system are its telecommunication system. Cell phones networ( partners helped with across Aarong every the to create a and this communication transportation suppliers country. All

components wor( together to provide information to collect products' manage the suppliers' to provide services' create report etc. 3ifferent computer softwares are also used in the supply chain management of Aarong but the main supply chain management software is developed by Aarong. -his software is used for both supply chain planning and to help them to e2ecute the supply chain steps. Aarong has hired trained professionals to operate its supply chain management system and (eep updating. Aarongs supply chain management system can be divided into two systems. Both of this system is vital for Aarongs business. One is Supply Chain @lanning System and another one is Supply Chain 52ecution System.

5. Su44%y $'ain P%anning System:

Aarongs supply chain planning helps Aarong to create a model for its e2isting supply chain' its helps management to measure demand forecasts for different products and develop a way to find best source for meeting those demands and manufacturing plans. Aarong have turned to their customers for help. By communicating directly with customers about what they want and by getting their feedbac( on e2isting products' management are able to more accurately understand the needs and wants of their target audiences. 1ith this information' they can ma(e a forecast that reflects customer reality. 7urthermore' improved technology has of Aarong made it even easier to get their hands on customer feedbac(. -he 1ebsite of Aarong for e2ample' ma(es it possible for organi ation to communicate with customers in real0time' so they can then use the data immediately in their forecasts. Aarong has developed a central database for all the information and it gives access to suppliers and

partners. -hese technology improvements along with real0 time customer feedbac( have made it possible to more accurately predict revenue' profit' and sales in the near future. More accurate planning means that Aarong can wor( together with their vendors and distributors to outline a plan that ma(es sense based on those forecasts so that no one is put into a negative situation. Overall' supply chain planning is a critical component 1ithout of Aarongs supply chain management. accurate planning abilities'

businesses end up cutting into their revenue unnecessarily and possibly putting vendors and distributors into difficult situations that may strain the supply chain relationships in the long run.

6. Su44%y $'ain Execution System:

Aarongs supply chain e2ecution system is mainly consists of its transportation partners. -hey manage the flow of products though distribution centers and warehouses to ensure the products are delivered to the right locations in the most efficient manner. Aarong trac( the physical status of goods' the Management of materials' warehouses' transportation

operations and financial information involving all parties.

Aarongs Su44%y Process

$'ain

Management

P%an: Aarongs supply chain management planning starts at the top of the management. Management tries to balance out the demand and supply to meet Aarongs sourcing' production' delivery and return re;uirements.

Source: Aarong has large pool of sources to meets it supply. As the demand re;uires suppliers come up with raw materials and goods. -hen it creates a product which we can e2ploit.

Make: Co0operatives comes up with final goods and they deliver them to the final processing section of Aarong. -he goods or products are ready to use for the customers.

"e%iver: Aarongs delivering process is managed by its own transportation. Aarong directly distributes its product to the consumers. -heir !ob is to distribute shipments properly. C=ust0in0timeD is followed in delivery process.

eturn: "eturn process is consisting of product returns and post delivery customer support which is done by Aarong. Aenerally Aarong obtained their products to their consumers within E+days.Its also includes Aarongs return process.

3ogistics: Aarongs top level management plans' supportive relation to their consumers and control of all other factors that have an impact on the supply chain.

Aarongs Su44%y 2nformation )%oInformation flows

$'ain

Management

from customers to 5mployee or from

employees to operating personnel in the information system. -hen information goes to the floor manager. 7loor manager shows it to the consultants of Aarong. Consultant shows it to the top level management of Aarong. -op level orders its suppliers to modify' improve or create product to meet the customer demand.

Aarongs Su44%y $'ain Backend incor4oration:

Management

Aarongs supply chain management system can e2emplify into #4stream portion where the supply chain includes Aarongs suppliers or co0operatives' and their suppliers who are the raw material providers Aarongs. Aarong tries stay connected with the raw material providers have all through sorts of telecommunications. Co0operatives

facilities. -hey stay connected though telecommunication. Aarongs database is open to its suppliersB it provides them with inventory data. And suppliers also can provide

information to Aarong through the web. Because of the real time data availability suppliers are at no harm position when they are dealing with Aarong. of the -here is also "o-nstream portion consists Aarongs

processes for distributing and delivering products to the final customers. Aarong has its own internal supply chain processes for transforming materials' components' and services by their suppliers into finished products or intermediate products for their customers and for managing materials and inventory.

Aarongs wants to satisfy' so Aarong provides operational data to its highly loyal customers and contractors. Aarongs big buyers can gain data about their order through Aarongs website or by e2tracting data from its database. Aarongs website provides the progress about orders from foreign buyers. Buyers can also get along about the operational process.

Aarongs suppliers also have the concession to e2change register data. -hey are aware of what Aarong wants and the price its willing to pay. -hey also get the cut0off date and operational instruction from website. If anything changes

they

will

(now

because

Aarongs

web

application

automatically incorporated with bac( office information system and database which they can easily way in.

Aarong has a central database which is updated by the operational employees. So if any changes come Aarongs Supply Chain Management will send mail to upstream and downstream suppliers its suppliers.

Manageria% Ski%%s:
Aarong has trained operating personnel for its accounting department and website. Operating personnel !ob is to maintain the information system and repair if any error ever occurs. Aarongs operating personnel are highly ;ualified in their !ob sectors. Aarongs information system is designed to be employee friendly. 5mployees do not have to (now lot about technology to operate its regular applications. Its information system is very secure. 5mployees strictly follow all the principled rules. All customers orders' addresses or any (ind of information is remaining private. Accuracy is practiced and monitored by operating personnels. Access of employee information is strictly forbidden. So Aarong has

the ability to ad!ust technology strategy alignment to accommodate the use of I- and manage business process. -he Internet has emerged in the recent past as a dynamic medium for channeling transactions between customers and firms in virtual mar(etplace. In particular' the 1orld 1ide 1eb has emerged as a powerful new channel for supply chain' rendering many intermediaries obsolete' and drastically revamping the value chain. So Aarong has ta(en the opportunity to e2pand its business through net. Aarongs employees can see as an asset for this (ind of e2pansion. But in our country the growth in e0business seems slow although internet is challenging the traditional supply chain structures that firms have employed to get goods and services to mar(et. Aarong has re0evaluated their value proposition to customers' and meet the challenges of more nimble rivals. Aarong seems to be one of the organi ation which da is interested provide online based order and information system to its customer. So Aarong has a very ling managerial s(ill in internet based supply chain.

Aarongs 4erformance im4rovements 0y S$M:

5. Accurate information for su44%iers and 0uyers:

Because of the proper Supply Chain Management Aarong gets accurate information. 3istort information is a ma!or problem of govt. funded organi ation but Aarong is different because of its supply chain management.

6. Easi%y stored data 7 access:

SCM has provided easy way to store data. Information can be easily stored. -his made suppliers and front line employees very efficient about their !ob.

8. 2nformation s'aring t'roug' #4stream and "o-nstream:

1ithout networ(' information sharing would ta(e lots of time. But in Aarong' can share information very easily with its upstream and downstream partners and suppliers.

9. /ork efficiencies:
Supply Chain Management System has increased Aarongs wor( efficiency.

:. S4eed:
SCM has increased speed of the wor(. 5mployees are wor(ing with more speed in Aarong.

;. Pro4er storage system:

Supply Chain Management System gave a proper storage system. 5mployees can store data and also can see it whenever they want. Suppliers can store data too. Any changes can be seen through website. Customers get big help from that.

<.

e4ort making 0ecame very easy:

@rocurement Managers wor( became easier with information system. Managers can ma(e their mar(eting and financial plan more easily.

=. 2m4roved -orking environment:

-hrough establishing an information system Aarong has developed its wor(ing environment. Suppliers do not have to wait for hours for their papers of order.

>. 2m4rovement in Training em4%oyees:

@ower point employees. has improved training programmers for

5?.

2m4roved customer satisfaction:

Aarong has improved customer satisfaction with its supply chain management system. Customers are more satisfied than before. -hey are getting what they want. -otal &E, customers are happy with Aarongs customers services. SCM has given Aarong chance to customi e products.

55.

2m4roved 4roduct and service @ua%ity:

SCM has improved Aarongs product and service ;uality. Customers can get their desired products and better service.

56.

2m4roved Em4%oyee Satisfaction:

5mployee satisfaction has increased. 5mployees are happy with their wor( and they are clear about what to do F what not to do.

58.

2m4roved communication:

Gideo and teleconferencing has improved communication in Aarong. 5mployees can communicate with customers' suppliers and their supervisors more easily.

59.

#4 to date information:

Information is up to date because of the proper data entry. 5mployees gets up to data to wor( with which bring efficiency.

$om4etitive Advantage of Aarongs Su44%y $'ain Management System:

Competitor analysis in mar(eting is an assessment of the strengths defensive and wea(nesses conte2t of current and to potential identify competitors. -his analysis provides both an offensive and strategic through which opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framewor( in the support of efficient and effective strategy formulation' implementation' monitoring and ad!ustment. Aarong has its own version of the competitive analysis and its function is clearH to line up your product with other products and show where yours falls short and where yours is superior. 5ach industry brings a different spin to this old favorite and user e2perience design has its own set of criteria by which to !udge competitors.

$om4etitors Ana%ysis of Aarong:

7rom the above diagram it is seen that Aarong has competitive advantage over its competitors on almost every factors. Only few companies have ability to chase some sort of advantage li(e Aarong. Such as "ina 9atifs product features' ;ualities and innovativeness' 8ay08raft and An!ans supplier' "angs color and 8hubsoortis cost. Aarong has gain competitive advantage through its supply chain management system. Aarong has a vast networ( system with its thousands of suppliers and manufacturers which gave Aarong superior production and resource allocation power. Competitors do not have power that can match Aarongs production capability so they are losing shelves. SCM (eeps trac( of its supplier and its inventory properly so there less costly and hustle free for the employees. @erformance of service has increased more than its competitors so there are more satisfied customers of Aarong.

$onc%usion:
-here is a reason why Aarong is at the forefront of the urban fashion0scene. -heir innovative clothing line fuses ethnic wear with global trends using traditional Bangladeshi materials. Aarong is a support enterprise of B"AC. A significant portion of their earnings are invested towards improving the socio0economic standards of disadvantaged artisans and underprivileged rural women of various communities. Aarong organi ational vision will be achieved smoothly and that is the women will be empowered through Cgrass0root level women entrepreneur developmentD and this empowerment will change the overall scenario of economic condition.

eference:

---.Aarong.org ---.scri0d.com