Business Management Case Studies E-Book

Patrick Siegfried

• Herausgeber: Books on Demand
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2021

Seitenzahl: 275

Beschreibung

Business Concepts for Management Students and Practitioners

Leseprobe

Contents

Pran-RFL (Rangpur Foundry Limited) Group in Bangladesh Saiful Islam, MD.

Netflix Smaya, H.

McDonalds Mechchate, A.

Google LLC Ferraris, M.

Tesco Taqatqa, A.

Apple Ahmed Al-Sobaihi , E.A.

COCA COLA Alshammas, M.

PSA Group Jeanpetit, C.

Mercedes Nadir, M.

Tesla Pasquereau, M.

How has PSA recovered since the arrival of Carlos Tavares in 2014? Dupré, M.

Toyota and TPS Model Do Lago Chagas, M.

McDonalds Togan, I. O.

Beximco Pharmaceuticals Ltd. Of Bangladesh Muhammad, S.

KFC Abdelrhman Ayman, H.

Apple Karaja, M.

LBC Lao Brewery Company Siegfried, P.

1 Pran-RFL (Rangpur Foundry Limited) Group in Bangladesh

Saiful Islam, MD.

Abstract

Relationship management is at the heart of supply chain management. Link by link, relationship by relationship, a supply chain will be handled, and the companies that handle such relationships better will benefit. In this correlation, Pran-RFL SCM methods and techniques are discussed. Production management, planning, design, and construction, as well as market drivers, are all important aspects of SCM. SCM, like other organizational disciplines such as structural or process engineering, accounting, and materials management, has a leader who can push concepts across disciplines and organizational boundaries. Despite supply chain management, today's uncertainty is a cancer that must be combated, and process management is the weapon of choice. We created a solid model of supply chain management processes and clearly defined them so that the Pran-RFL group's entire process could be handled. It has helped our company realize that supply chain management is much too essential to be treated as a tool It is everyone's responsibility. The chain of command has a dynamic, detailed, and results-oriented team leader with a track record of increasing efficiency while lowering costs in domestic and international supply chain operations. Pran-RFL Supply chain managers are known for developing and executing business plans and blueprints. They are creative, analytical, and big-picture thinkers’ line that improves the performance of processes as the third part of the logistics management of supply chain process, distribution from one location to another is an endeavour.

When importing or exporting products or finished goods at the destination stage, supply chain management makes extensive use of Pran-RFL logistics. However, there are three options for bringing or sending goods: air, sea, and road. After deciding which method is best for getting the goods, consider how urgent or emergence the goods are, as well as the lead time, before deciding on the best method. Air freight is faster but more costly; sea freight is less expensive but requires a lead time for delivery; and road freight is another choice for communicating with neighbouring countries. SCM made a yearly or half-yearly planning for supplies or other products, and then made an easy decision on which route would be the cheapest and would arrive at the appropriate lead time. Following the overall explanation, we discover that the supply chain manager has decided that sea freight is the only way to transport goods to any country at the lowest cost and is the best option for achieving the company's ultimate target.

The aim of Pran-RFL is not to cut costs in order to make more money. Our company strives to minimize costs by providing the best possible finished product to our customers. Not only has the logistics cost been reduced, but every operational measure has been taken to reduce the cost. As a result, we will be able to reach our goal.

Introduction

Introduction to SCM

A supply chain is a dynamic management system that entails a continuous flow of knowledge, goods, and funds between stages. This stage included not only the manufacturer and suppliers, but also transporters, warehouses, and retailers who are involved directly or indirectly in meeting the customer's needs. Every supply chain's goal is to optimize the total value of all levels. Generally, supply chain efficiency is assessed using both qualitative (such as customer satisfaction) and quantitative (such as product quality) metrics (such as order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance etc.). The supply chain network has a direct relationship with quantitative efficiency. Reduced lead times and prices, as well as improved product consistency and responsiveness, are all attributed to a well-functioning supply chain network. Despite its advantages, structuring a supply chain network is a difficult decision to make.

A collection of customer zones to represent, goods to produce and distribute, demand forecasts for the various customer zones, and information about the future are typical inputs to such a process.

Supply chain management is a network of mechanisms at companies that are active in the various working processes and activities that process across upstream and downstream linkages value in the form of products and services in the hand of the ultimate consumer. Maintaining a chain of command to be an effective supply chain will greatly improve a company's competitiveness. As a result, in the process industry, supply chain management (SCM) is a critical issue. This research aims to recognize some major key problems in the processing industry's SCM by designing optimization-based models, methods, and solution procedures using analytical or mathematical programming techniques for a better future of SCM at any organization. All activities that turn raw materials into finished goods and distribute them to consumers can be included in supply chain management. A supply chain usually has many phases, including vendors, producers, warehouses, distribution centres, retailers, and consumers

Figure 1: Structure of Supply Chain Management

Importance of the study

All parties (including manufacturers, marketers, suppliers, transporters, warehouses, retailers, and even customers) that are directly or indirectly involved in the production and distribution of goods are included in supply chain management. For that-

In the right quantities

To the right locations

At the right time

Supply chain management's key goals are to increase overall company efficiency and customer loyalty by optimizing product or service quality to customers. In order to- a higher level of performance at a lower cost. Must have enhance flexibility and agility

Optimize the value chain.

Face global competition

Improve customer service standardization.

Objectives of the study

Broad Objective

In Bangladesh, the Pran-RFL (Rangpur Foundry Limited) group has a supply chain management process.

In supply chain management, logistics, purchase process, supply chain, distribution, marketing, and contingency theory are used (SCM).

Knowledge disclosure is seen as a lack of control in the basic activity phase and performance for care.

Companies is not sought to achieve cost reductions or profit improvement at the expense of their supply chain partners.

Chain level-supplier’s supplier, customer’s customer.

Implementation is important for successful supply chain integration.

Time and space variables making complexity of SCM.

If it is not possible to collaborate with each other, even a good chain is not possible.

Sources of Information

Primary information: Primary data was gathered directly from senior manager (Mr. Shiplu) of SCM, Chief Operating Officer (Mr. Kamrul) of Tel department, Assistant manager (Abdus Samad) of Operation department, Assistant manager (Mr. Abu Huraira) of Recycle purchase department, Assistant production manager (Mr. Mokarram), Assistant manager (Mr. Bayazid) of Account Department, company training, and other sources., directly supplier visiting information and my cooperative colleague of supply chain department.

Secondary information: Secondary data is gathered from Pran-website, RFL's catalogues issued by Pran-RFL, various reports on Pran-RFL, and other sources such as the internet, newspapers, and magazines.

Scope of the study

The study is focused on describing supply chain management as a strategic responsibility for an industrial firm. Each industrial company must have a supply chain manager who oversees the entire operation from the company's headquarters. The researcher will collect data to determine why supply chain managers are essential for industrial companies, how supply chain managers manage all aspects of their companies, and the challenges that supply chain managers and other department concern managers face. The primary data sources were questionnaires, with secondary data coming from company annual reports and the internet. The researcher may encounter difficulties with respondents who are unwilling to disclose information due to a lack of confidence and an assumption of lack of confidentiality. Respondents should believe they are breaking the rules and ethics of the organization. They can be told, however, that the information is only required for research purposes. The researcher may be limited in his or her ability to complete the study due to time constraints.

Limitation

The semester's time constraints necessitate conducting studies, albeit with less time than would be ideal for an ethnographic study. Data was gathered from a variety of sources. As a result, there might be some mistakes.

Methodology

Research Framework

The logistics process was identified in the research based on a direct market survey and a review of more relevant articles for research purposes. My practical work in the business and directly industry or internet-based market surveys were the origins of these primary data. Even though most of the analysis was performed by established individuals, the research is both comparable and quantitative, with survey results and quantitative evidence to back it up. This report's approach is completely different from that of traditional studies. As a result, I was primarily focused on practical work, direct market research, and in-depth discussions with senior management.

Sources of Data

1. Primary Data:

Now it is time to put theory into practice.

Direct market base survey.

Directly address the issue with the concerned senior person.

2. Secondary Data:

Visited internet-based market survey at logistics related.

Read various company articles at related issue.

Read book, Writer’s dialogue, newspaper, magazine, training etc.

Sample Size

The sample size is chosen at random from ten logistics express, both local and international. Those were some well-known and internet-based inquiry connections. The survey papers were distributed to ten logistics for them to respond via email. My company's forwarder wanted to transport goods from all over the world, so I got an email from them. Sample Measures:

This sample measured by statistical comparison of various logistics.

Use of Instrument: I used the climate, country-specific lead times, email, logistics express, and a data table for this study.

Comparison Rate Technique: I utilized the email to know the freight rate from various country logistics rate to carry the goods. Used below table for comparison technique:

Table 1: Price Comparison

Serial

Country

Gross weight

Rate

Transit mode

Transit time

1

USA/Africa

1MT

41 %

Air/ Sea

2-5/50-60

2

China/India

1MT

21 %

Air/ Sea

2-4/22-25

3

Vietnam/Saudi

1MT

33 %

Air/ Sea

3-5/32-35

4

Korea/Italy

1MT

36 %

Air/ Sea

3-6/35-40

5

Singapore

1MT

25 % 1

Air/ Sea

2-4/18-21

Process of Supply chain management at Pran-RFL

Project profile of supply chain management at Pran-RFL

The collaboration relationship between more people related for doing the work efficiently and accurately in any field. The system is a form of service-oriented work that is carried out in various departments to ensure that each job is performed in a timely manner and that the target is met. The method includes measures such as sourcing, sourcing, data analysis, judgment, and product creation. A chain of command is an important method for supply chain management. For any information, decision, or target setting for a better industry, link higher levels to lower levels or lower levels to higher levels.

Process of Supply Chain Management

Figure 2: SCM Communication Process

Sourcing or Market Survey (Local/foreign)

A) Sourcing or Market Survey (Local)

You'll need to source or survey the market to satisfy demand when you create or manufacture it. Purchasing and fulfilling orders by visiting producers of goods or devices. Take it to QC or an engineer if you find anything locally to see if it is safe to use in production. If all seems to be in order, go to the local market and purchase some raw materials or a device. Pran-RFL must inspect more suppliers for quality, price negotiation, and other factors, and must prepare a visit report after visiting suppliers to decide which are the most cost-effective for our company.

Table 2: Local Market survey; Sources: local survey-2015-11-07-req (store-02)

Supplier

Mareen Printer

Mollah Traders

Suvroto Printers

Phone no

[phone]

[phone]

[phone]

Quantity

50,000

50,000

50,000

Price (tk)

0.15

0.17

0.21

Prepared by

SM-SCM-TEL

COO-TEL

B) Sourcing or Market Survey (Foreign)

When a commodity cannot be found in the local market, it is sent to the international market to find raw materials or machines from a final supplier able to supply it. We are unable to enter the foreign market, which is notoriously challenging to navigate while buying materials or other goods. Good communication, trust, price quotation and negotiation, and constructive feedback are all valued in the international market. Meanwhile, Pran-RFL purchases goods or computers in the following markets: China, Japan, Korea, Taiwan, Thailand, India, Singapore, and the United States. In order to compare each supplier, we obtain material samples, quotes, and computer video trials and quotations from foreign suppliers.

Table 3: International market survey; Sources: Import permission-2015-12-03-vol (19-7)

Supplier

RELIENCE

SABIC

BOROGUS

Email ID

[email protected]

[email protected]

[email protected]

Phone no

[phone]

[phone]

[phone]

Country

India

Saudi Arabia

Malaysia

Quantity

100MT

100MT

100MT

Price (USD)

2300/MT

1300/MT

1800/MT

Prepared by

SM-SCM-TEL

AGM-IMPORT

COO-TEL

Company Internal Procedure of Purchase (Local/Import)

A) Company Internal Procedure of Purchase (Local)

Any company has an internal format before it purchases materials or machines from a supplier. Pran-RPL follows its own internal rules and regulations when purchasing a supplier. The following scheme is used locally when manufacturing and operations generate demand for material or machine production:

Figure 3: Local materials Purchase Process

Purchase Requisition (PR) from operation

The service manager establishes a production condition, after which the supply chain manager raises a procurement requisition (PR) for the necessary goods, which is then submitted to COO Sir for approval before being purchased in the local market. The service department sends a PR to the supply chain manager, who collects it and sends it to the factory where the product is made after gaining approval. Pran-RFL is also aware of the ongoing development process, which cannot be halted for any reason at any time. When a supply shortage or a system failure occurs, we create KAIJAN to quickly resolve the issue and restart production.

Purchase order (PO) from SCM

The supply chain manager produces a buying order (PO) using SCM software and visits the local market after the chief operating officer approves the requisition form. Visit at least THREE suppliers in search of a high- quality, low-cost offer. Looking for a cheaper source, then placing an order with a local supplier to get the materials shipped to the warehouse. We use the following approaches to negotiate a fair price and ensure that the goods are delivered on schedule and in good condition during the procurement process:

Selection of vendors:

I- First Choice – Manufacturer

II- Second Choice – Direct importer

III- Third Choice – Trader

We maintain positive relationships with our vendors.

We want to do business with suppliers that have a long-term vision.

We regard them as Pran-partners. RFL's

Supplier delivery the product to Warehouse

The supplier schedules the distribution of the material or commodity at a specific time after obtaining the PO. The supply chain manager and the supplier are both connected at the same time for the purpose of organizing and distributing goods; if the supplier has any issues, he or she will warn the supply chain manager. The supply chain manager then discusses the issue with the operations manager and attempts to find a solution. Vendors should, hopefully, be able to deliver the goods or materials to the warehouse on time. Transportation from the supplier's warehouse to the plant is coordinated by the supply chain:

By using our company's transportation to arrange for a truck/pickup.

Through negotiating a price that includes transportation.

SCM arranges the truck himself after obtaining permission from the company's transportation department.

Small amounts of products purchased in one day are stored there before being delivered to factory warehouses.

Two shop assistants have been employed to supply goods to the warehouse. They oversee the transition process.

This strategy was devised in order to expedite the delivery of a small number of purchased products to the factory.

Store Manger makes Material Receiving Report (MRR)

The material or part supplier then delivers the product to the company warehouse for processing after the arrangements are finalized. The goods will be collected by the store manager of the company, who will produce a material receipt report (MRR). Each purchase requisition material is properly supplied or not if any missing or incorrect material is found. Explain why the store manager must inform the supply chain manager that the supplier is short on material supply. Therefore, MRR is required upon receipt of each product. S is abbreviated as SCM. Making an MRR bill: A supply chain manager must follow the store manager's MRR while creating a supplier bill. What is the bill's price Count on MRR; if you do not have MRR, you will not be able to create a bill because the store manager must follow the supplier's challan quantity and commodity quantity while creating MRR. Local suppliers pay quickly to maintain a good relationship and offer better quality in the future because they are small. This is how a supply chain manager and a supplier build a trustworthy partnership. It is difficult to do business when you do not have faith.

Bill submission to account for supplier payment

Making timely payments in compliance with payment terms is a crucial term in any company. Our local supplier can deliver more supplies per week if the supply amount is not greater than their cash in hand for long-term underpayment. The account department must pay the supplier within 3 or 4 days after the supply chain manager finishes the local bill job.

Process of Purchase (Import)

International businesses need to succeed at supply chain management in order to satisfy import procedure requirements. This method is used in any process of importing machinery or raw materials by letter of credit (L/C) when purchasing from outside the country, including RMG. An importer's ability to interact with a supplier is determined by how well they both understand each other during their contact.

Import Process: Before importing, the following steps must complete in the government's import registration process:

Trade license

Member form chamber of commerce or any other trade Association.

Tax identification number

Vat registration number

Partnership deed

When the CCI & E are pleased, they send an IRC to obtain an original copy of the treasury challan for the payment of the registration fee.

Step for opening L/C

1. Applicant must have a bank account. The bank will open the L/C on behalf of an individual who has a bank account.

2. Permissible item: The object being imported must be legal and not prohibited. If the object is part of a conditional list, the condition must be met before it can be imported.

3. Sufficient Security or margin: Some products' prices change regularly. In the case of such things, the bank would be more cautious in ensuring that adequate cash margin or other protection is in place. From time to time, the bank will also follow Bangladesh Bank's instructions.

4. Business Establishment: A bank does not open a line of credit on behalf of a floater. The importer must have a business foundation and, more importantly, a business network for selling the item to be imported.

5. Restricted Country: Goods not to be imported from Israel.

6. Credit report of the beneficiary: If the total amount of L/C in one item exceeds Tk. 5.00 lac against pro-forma invoice and Tk. 10.00 lac against indent, a credit report from the supplier is required. For a period of one year, the report will be accurate.

7. Application of the client to open the L/C: The client will bring the following papers and documents to the bank to open the L/C in the bank's prescribed form, properly stamped and signed:

invoice indent/proformaWith money receipt and insurance cover notice.LCAF completed and signed.Chamber of Commerce/Trade Association Membership CertificateCertificate/declaration of tax payment.The importer must sign the IMP & TM form.Documents that charge.

The case of a new customer, an IRC, a passbook, a trade license, a membership certificate, and a VAT registration certificate are required.

In the event of a Back-to-Back L/C, export the L/C.

1. Permission from the Ministry of Commerce: If the products are to be exported, permission from the Ministry of Commerce is required.

2. Client Creditability: After considering all of the above, if the Bank is pleased with the client, an L/C may be opened on the client's behalf. A collection of LCAF in the name of the importer will be issued and authenticated by the L/C Bank prior to the account being opened.

3. Authentication/Registration of LCA form: When an importer submits an LCAF (letter of credit Authorization form) along with other documents to a bank with the intention of opening a line of credit, the bank will authenticate the LCAF. Authenticating the following:

The importer is responsible for paying the IRC renewal fees.The item to be imported is eligible according to the importer's import policy/passbook.LCAF is duly filled in and Signed by the importer.

Distribution of LCAF Original

This is the Exchange tracking copy that will be submitted to Bangladesh Bank when the import is paid or will be held at the branch for Bangladesh Bank auditing. Duplicate: This is a special purpose copy that will be used to clear the consignment. The following points should be considered by the ads:

L/C Number:

Each L/C will be assigned a number that corresponds to the serial number of the L/C for that year. The number must be 12 digits long. The first four digits are the AD's code, the second two digits are the year, the third two digits are the LC's nature, and the last four digits are the L/serial C's number. In 2008, the first Foreign Cash L/C of Islami Bank Bangladesh Ltd., Paltan Branch, may have been numbered 0885 08 01 0001.

Place & Date of Issue:

The location and date of issue is indicated on the L/C.

Date & Place of Expiry:

There must be an expiration date on the L/C. This is the deadline for submitting documents under the L/C. In addition to the issuing bank, the place of presentation is the location of the bank with which the credit is valid.

Shipment date:

There should be a deadline after which no further shipments are permitted. The bank can also set a first shipment date before which no further shipments will be permitted.

Presentation period:

The issuing bank will give the exporter a certain amount of time to present the export documents to the negotiating bank or some other designated bank. The presentation must be made within 21 days of the date of shipment and before the expiration date.

Applicant:

The applicant's name and business address should be written on the L/C.

Beneficiary:

Name of the beneficiary, as well as his or her address, as specified in the L/C.

Advising Bank:

The advising bank's name and address must be included in the L/C.

Amount:

The sum of the L/C must be shown on any L/C. When the term

about

is used with a number, it means 10 % more or less than the specified amount.

Part-shipment & Transshipment:

The Issuing Bank must also state whether part shipment and transhipment are permitted in the L/C.

Availability:

If the credit is available by sight payment, deferred payment, approval, or negotiation, the L/C must state so.

Port of shipment & port of destination:

The L/C will also specify where the shipment will be made and where the items will be shipped.

Tenure of the Draft:

If the draft is to be drawn at sight or by use, the L/C must also be cleared.

Documents required:

The bank will have a list of appropriate documents as well as data material. Each and every word must be backed up by documentation. Since any word that isn't accompanied by a text is worthless.

Payment:

When and where payment is to be made, as well as by whom, must be specified in the L/C. 16. UCP: The bank will have a reference to UCP 600 in the L/C for use in all of the L/operations. C's

Bill of lading:

The B/L must be released or endorsed on the issuing bank's order. If the L/C is on a CFR basis, it should be

clean

and

freight prepaid

. Avoid using a short form or a charter group B/L. All of these words must be used in the L/B/L C's clause.

Bill of exchange:

A bill of exchange payable to the issuing bank

Literature Review

The supply chain network's architecture has a significant impact on the supply chain's overall efficiency. Supply chain logistics that are well-planned pave the way for reliable and productive supply chain management. The supply chain network should be built in such a way that it can satisfy logistics requirements at a low cost and within a reasonable time frame. The multi-stage supply chain logistics design (SCLD) model is investigated in this paper, in which all freight demand is met within the lead time and a sensitive supply chain is followed. This logistics is cost-effectively realized using the Mixed Integer Freight Programming (MIFP) technique. New facilitates are to be selected at a proper logistics and correspondingly of its mode of transportation based on logistics cost in order to maximize benefit in this report. The problem formulation, solution statistics, and computational results are all seen.

The chain of command of a mechanism from supplier to producer to wholesaler to retailer to customer is known as supply chain management (SCM). The supply chain encompasses a broad variety of functional areas within an enterprise. Inbound and outbound storage, warehousing, and inventory monitoring are examples of Supply Chain Management activities. Sourcing, sourcing, and supply management are also used in the supply chain. Forecasting, output planning and scheduling, order management, and customer service are all important aspects of the operation.

It also includes the information systems that are needed to keep track of all of these activities. Professor of SCM at Bank of America University, Robert Handfield, Ph.D. (Published: Jan, 11, 2011). ‘A company's SCM efforts begin with the creation and implementation of a long-term supply chain plan. This technique should include the following:

Identify what supply chains manager task and responsibility area of the firm.

Assist the reporting supervisor in comprehending how the company can add value to the supply chain.

Suppliers, subcontractors, transportation and distribution companies, dealers, and the final client are all part of the supply chain's chain of command.

It is valuable to real and physical flows rather than virtual supply chains as companies strive for higher growth through supply chains in which they compete. Firms will begin to understand how they add value, as well as what knowledge is required to make the supply chain run as smoothly as possible.

‘(Christopher, 1992; Hines, 1994;) Supply chain management and other related concepts, such as network procurement, supply pipeline management, value chain management, and value stream management, have piqued the attention of researchers, consultants, and business executives in recent years.' (Macbeth & Ferguson, 1994; Cox, 1997; Macbeth & Ferguson, 1994; Macbeth & Ferguson, 1994; Macbeth) In certain sections of the literature, it is acknowledged that the supply chain should be viewed as the core unit of competitive analysis. Companies would not aim to reduce costs or increase profits at the detriment of their supply chain partners, but rather to make the supply chain more efficient.” In other words, ‘a key tenet in the area of supply chain management is that supply chains, not single companies, compete. (Christopher, 1992; Macbeth & Ferguson, 1994)'. Since the early 1980s, supply chain management has gotten a lot of recognition, but the idea of supply chain management is still a little hazy Many scholars have emphasized the importance of consistent definitions and conceptual structures in supply chain management (Saunders, 1998; Cooper, Lambert & Pagh, 1997 ;)

Chartered Institute of Logistics and Transport (UK) (CILT) Director Dr Abhijeet Ghadge et al (2007) ‘The word logistics is commonly used in the business world to describe a broad variety of activities related to the movement, storage, and handling of materials. Over the last few years, logistics management has undergone a transformation, and it is now widely recognized as a primary determinant of market competitiveness. Companies have increased their efficiency not only by overhauling their internal logistics, but also by handling their external relationships with suppliers more effectively. Supply chain management is the term for this. In most sectors of the economy, these advances have resulted in a healthy demand for well-qualified logistics and supply chain managers (Grooge Alex-2011).

In our opinion, logistics support is the foundation for any aspect of the import segment. Particularly when purchasing materials or machinery from Europe, America, Africa, Asia, or elsewhere. Mr. Karmul, AGM of the import department, believes that supply chain management must develop over time while a ship is being transported by any forwarder in order to complete the job accurately and on time. Leading companies are constantly looking for cost-cutting opportunities in the form of appropriate logistics that reduce the time it takes for goods to arrive at their destination. However, air and sea freight are not suitable for use at the same time; both are dependent on the nature of the goods crisis, how the goods appear, and when the goods are needed. Price, delivery time, and other factors must all be considered. Sea freight has the lowest cost, but it takes longer to reach the destination port. Otherwise, air freight is still expensive, but the lead time to reach the destination is very limited. Logistics includes preparing, implementing, and managing stable, effective flow and storage of products and services from the beginning point of external origin to the company and from the company to the point of consumption for the purpose of conforming to customer requirements,” Lummus, Krumwiede, and Vokurka et al (2001) wrote. Although it handles flow between the company and its suppliers and clients, logistics is typically thought of as being within one company.

Every mother company in the world has a forwarder strategy in place to ensure that products arrive at their proper destination at the lowest possible cost and time. Pran-RFL does not use a forwarder; instead, they use a three-way logistics forwarder from a supplier who provides shipping to the Chittagong port (CFR stands for clearing and forwarding report), an airway logistics forwarder from Dhaka, and Benapole road freight from Jessore. Sea and road transportation costs and lead times are measurable, but air transportation is very expensive, and Pran-RFL Company pays demurrage every month for their failure to release goods for clearing and forwarding (C&F) from Dhaka air customs. In this case, we are talking about a lack of content preparation. Adam Robinson / August 7, 2013 / Freight Inbound Freight Logistics Supply Chain. The bottom line is that when a supplier fails to comply with a delivery order, the costs of freight, as well as costs associated with delays in receiving ordered goods, supply chain disturbances, and a lack of insight into the shipment, all add up. Costs that are difficult to trace down to the commodity level for precise Cost of Goods (COGS) calculations. (Ti, p-314, Technological Inelegancy) ‘The routing, scheduling, routing, carrier selection, load tendering, and shipment consolidation capabilities of transportation management systems (TMS) are well-known. Even though these technologies have been around for a while, only 35 % of shippers use them as part of their overall supply chain management strategies, according to a recent survey of Logistics Management readers. On the other hand, the same survey showed that 39 % of companies expected to buy or update their TMS in the coming year, indicating that potential adoption rates could be higher. His results point to TMS adoption rates going up to above 50 % in the coming years,” says Chris Cunnane & Dox (1993), senior analyst with ARC Advisory Group in Boston. Even though a significant number of companies are still not benefiting from TMS.

‘Logistics management is a flow-oriented concept with the goal of integrating resources through a pipeline that stretches from suppliers to final customers. It is desirable to provide a method for assessing the costs and efficiency of the pipeline flow. The lack of adequate cost information has made logistics and distribution management challenging for many businesses. It is exceedingly difficult to determine the degree to which a specific trade is cost effective without an appropriate logistically based cost accounting system. Page → and 96 of LSCH C03.QXD 12/11/04. The most publicity that the supply chain received was for product management focused on new product introductions or on the outbound shipping part, Alan Kelsky said recently on Friday, August 22, 2014, where volume shipment is a necessary part of the product's life cycle However, according to Supply Chain Quarterly, roughly 20 % of all sold in the United States is returned or recycled to the company that made the products. The cost to industry is higher than most people realize, costing businesses about $100 B. a year.” Expenses associated with returned products typically account for 9 to 15 % of a company's total revenue. For certain businesses, the cost of handling a returned item is often two to three times the cost of shipping the item outbound.

Research Framework

Logistics management process of Pran-RFL:

When a supply chain manager makes an order from around the world and selects overnight delivery on a group of similar or unrelated products, I am always amazed at the logistics involved in having my items gathered from a warehouse at multiple times. All participants in a supply chain who are involved in receiving, handling, storage, transportation, and communication form a network. However, because of the contact distance, processing logistic mechanisms is extremely difficult to calculate the situation.

Pran-RFL company logistics management:

Figure 4: Company Logistics Process

Company internal logistics System