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Strategic Supply Chain Management

Framework of Pran Cola




Submitted to
Ejazur Rahman
Assistant Professor
Guest Faculty
FBS, BUP



Submitted by
Md. Sadman Sakib B1102015
M. M Shahriar B1102031
Shahnewaz Reza Mansur B1102048
Ashara Mubashshara B1102050
Pritom Bhowmik B1102052
Tabassum Andalib B1102054
Mehriba Jafrin B1001004


Bangladesh University of Professionals
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Company Profile

PRAN started its operation in 1981 as a processors fruit and vegetable in
Bangladesh. Over the years, the company has not only grown its value but also
contributed in the overall socio economic development of the country. Besides one of
the most popular food and
beverage brand in our country
PRAN products are exported
over 106 countries in the world.
All the PRAN products are
produced as per international
standards maintaining highest
level of quality at every stages of
its production process. PRAN is currently producing more than 200 food products
under 10 different categories i.e. Juices, Drinks, Mineral Water, Bakery, Carbonated
beverages, Snacks, Culinary, Confectionery, Biscuits & Dairy. The company has
adopted ISO 9001 as a guiding principle of its management system. The company is
complaint to HACCP & certified with HALAL which ensures only the best quality
products are reaches to the consumers table across the Globe.
Mission:
To generate employment and earn dignity and self respect for our compatriots through
profitable enterprises.
Vision:
Improving Livelihood
About pran max cola:

Pran max cola is a cola soft drink manufactured by Pran Bangladesh. It is the first
local carbonated drink in Bangladesh.
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Product

What type of product is Pran Cola:
Pran cola is a functional product .Functional products are those products which does
not change much over time, such product satisfy basic needs and have predictable,
stable and long life cycle. This stability in the demand brings competition in the
market. So, thus such products have a low profit margin. There is not much change in
this product so this is not an innovative product. Innovative product has new additive
features with the existing product. This can attract more customers and can increase
the profit margin.
Characteristics of Functional product
Product life cycle more than 2 years
Contribution margin between 5% to 20%
Product variety is low
Average margin of error in forecast 10%
Predictable demand for product
Average stock rates 1% to 2 %
Average forced markdown 0%
Lead time required for made to order is 6 months to 1
year
Strategy used:
An efficient supply chain should be built for a functional product like Pran cola. As
the demand for functional product remains same over time the companies typically
have the good sense to stick with efficient chain.
Physically efficient process
Primary purpose- Supply predictable demand efficiently at the lowest
possible cost.
Manufacturing Focus- maintain high average utilization rate
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Inventory Strategy- generate high turns and minimize inventory throughout
the chain.
Lead time focus- shorten lead time as long as it does not increase cost.
Approach to choosing Suppliers- Select primarily for price and quality
Product design strategy Maximize performance and minimize cost.

Outline for the project:
1. Choosing a product.
2. Getting to know about the product and the company through literature survey.
3. Reading the article What Is The Right Supply Chain For Your Product? by
Marshall L. Fisher.
4. Figuring out our product type and the appropriate type of strategy.
5. Contacting the company and gather information about the strategies they have
for the product.
6. Checking whether they are on the right track or not.
7. Reaching a conclusion based on what we found, and recommending for
improvements, if needed.









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Conclusion

The beverage industry of Bangladesh is an old, steady yet neglected industry. PRAN
takes a comprehensive approach in introducing Pran maxx cola while the entire
market is accompanied with cola giants, and with their unique Ideas and tastes, Pran
continues to produce its carbonated drinks and supply them into the market.
Companys computer systems offer continuous monitoring of all manufacturing
process to ensure the highest levels of quality. Considering hygiene factor of all
products manufactured in the industry PRAN has always been loyal to their customers
and promises to provide better and with new products.

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