Rahimafrooz Ltd.Presentation on case study of

Group members:

Name Id Intake

Nusrat Jahan 1122101316 27thMd. Shahjad

Faihan 1122101330 27th

Saida Binte Reza 11122101304 27th

Mridula Islam 11122101274 27thMd. Mahmudul

Islam 1122101361 27th

Md Tanvir Faisal 1122101227 27th

Introductory Speech

Rahimafrooz began its operation as trading company 1945,is one of the largest business group in Bangladesh. It sells tires, batteries, emergency power products, diesels etc.

RBL is the largest acid battery manufacturer in BD. It manufacture about 200 different varieties of batteries for automotive, motorcycle, IPS and appliance batteries, industrial batteries, IPS and UPS batteries and rectifies. Lucas and Sparta are the leading names in the local battery market while Volta , Optus, and Delta batteries are the fast gaining equity as international trade

Facilities

Storage & Manufacturing:

RBL has some Storage and Manufacturing facilities in Tejgaon, Mirpur and Saver. The raw materials for manufacturing batteries are stored and received in this facilities. They also keep here the product of WIP (work in process).The finished and exportable products are stored here too.

Rahimafrooz Batteries Ltd. (RBL), do not use any third party for warehouse because of their very own warehouse facilities.

Objectives of Facility:As RBL, key focus is to provide an efficient supply chain based workflow so they maintain different level of efficiency and responsiveness.

Problem of facility: Sometime products are damaged by lacking of

maintenance Inventories are wasted by any mishit or any unwanted

disaster, storm, heavy rainfall etc. Due to political instability sometime RBL cannot provide

delivery in time Sometime the customer demand exceeds our inventory

capacity. At that time organization cannot meet up the increase demand.

Facilities (cont.)

As a manufacturing company Rahimafrooz has a wide concern about their inventory management. That’s why Rahimafrooz follow some rules and regulation to manage proper inventory. According to them, they keep-

Raw materials Work in process (goods ) Finished product Location:Rahimafrooz maintain private warehouse facilities which situated different place all over the Bangladesh. Their warehouses are in –

Mirpur warehouse Tejgaon (Drum Factory) Sever (Begun Bari)

Inventory

Managing seasonal demand:They get statistical forecasting from their previous sales report and make calculation of current market situation to identify the seasonal demand.

Stock safety Inventory system:Roller racks provide the best method for storing and insuring the proper rotation of batteries. If racks are loaded properly, the oldest battery of a particular type will always appear in the front.

Objectives of inventory:

Inventory (cont.)

Modes of transportation :In Bangladesh, Rahimafrooz Bangladesh Ltd. (RBL) uses two modes of transportation-

Road: (RBL) uses truck as transport modes to send the batteries to final consumers. They have strong transport modes by which RBL is able to handle the transport costs efficiently and timely.

Sea: For exporting batteries in foreign countries, RBL is shipping by sea, but they necessitate holding relatively large amounts of inventory against the inherent uncertainty associated with to buffer them.

Transportation

Decision of transportation effects facility & inventory:

The mode choice aspects of transportation decisions are one of the more strategic decisions.These are closely related to the inventory decisions, since the best choice of mode is often found by trading-off the cost of using the particular mode of transportation with the indirect cost of inventory associated with that mode; either road or sea.

Since,transportation is more than 30 percent of the logistics costs,operating efficiently makes good economic sense.Shipment sizes(Lot-for-Lot),routing,and scheduling of equipment are key in effective management of the RBL’s transport strategy.

Transportation (cont.)

Private transportation vehicle:

Rahimafrooz Bangladesh Ltd. use its own transportation vehicle for shifting finished goods from factory to showroom and also for delivery in cases. They have more than 120 trucks to carry goods. They use own trucks to- minimize the cost, to reduce transportation cost.

Managing transportation in emergency situation:

Transportation is sometimes to blame for a company’s inability to properly serve customers. Late deliveries can be the source of service problems and complaints. Products might also incur damage while in transit or warehouse workers might load the wrong items at a shipping location. Such over, short, or damaged  shipments can frustrate customers.

Transportation (cont.)

In case of emergency, RBL usually prepares a back-up plan like-hiring third party vehicle if the location is risky or far distance, hold extra inventory to meet up extra customer demand etc.

Objectives of transportation related decision:

Rahimafrooz Bangladesh Ltd. Has an efficient transportation system for their supply chain. They focus more on cost-effective delivery than faster or quicker delivery.

To take the transportation decision in efficient form, RBL considers transportation costs(inbound transportation costs, inter-facility transportation cost, outbound transportation cost),customer location, shipment sizes ,etc.

Transportation (cont.)

Rahimafrooz has an effective IT department which is accountable to ensure the proper support of information for the organization.

Use of Information: To maintain exchange of information they use some supply chain related software. This software are provides them the statistical data for research and analysis for supply chain management of their organization.

For Forecasting: That Software they use are kept data history for research and analysis or for statistical purpose. These software are providing not only current status of supply chain progress but also anticipate the future action for the supply chain management.

Information

For customer order receiving: They use call center related software for receiving the customer’s orders. They also get an extra facility by using this software which is providing customer care.

Objective of information related decision: Though Rahimafrooz Ltd. Is responsive for their supply chain strategy but they are mostly choose efficiency while they are making decision for the supply chain management. Because maintain an IT department is much expensive and it mostly operate through the machine rather than the operative.

Information (cont.)

Raw materials:As Rahimafrooz has many and different strategic business unit, they have to use many kinds of raw materials. Their sourcing for these raw materials is complex too. Because, a particular type of raw material can be required for more than one type of product.

Some of their raw materials are come by sea mode from aboard. They shipped that raw materials by ship in the port, undock it there. After that they use container carrier to deliver the product to the different factory in the different locations.

Plastic Acid ChemicalAlloy Rubber Iron

Energy cell Industrial fiber Wire cable

Sourcing

Sometimes they faced difficulties regarding sourcing. For example, political turmoil and sudden price hike of raw materials etc. Beside this, the late of getting shipments because of weather and international event are creating some barriers in sourcing of raw materials.

Like most of the manufacturing company Rahimafrooz also have rules for handling the emergency situation. They keep safety inventory method and fi-fo method to backup those emergencies. They also make orders for raw materials in a perfect time so that the production will keep running.

Sourcing (cont.)

Types of pricing strategy used:

Cost plus pricing:Cost-plus pricing is a pricing strategy in which the selling price is determined by adding a percentage markup to a product's unit cost. In here RBL add their additional expenses like, fixed cost, variable cost, utility cost and also related direct, indirect expenses etc.

Value based pricing:In this strategy RBL, decide their products price by measuring the value a customer getting after obtaining it. They also consider the experience, service and other values in this strategy.

Pricing

Pricing: managing demand strategy The relationship between demand and price is a positive correlation; meaning if demand increases, then price will increase as well. RBL increases its products price like – batteries, IPS etc. when the demand toward these products increases.

Promotional pricing strategy:Promotional pricing is a kind of tools that help to attract customer to purchase the product. RBL uses this technique to increase customer interest, by providing discount, offers, bonus through newspaper, magazines, billboard and using other media.

Pricing (cont.)

Role of pricing in competitive strategy:

RBL seeks to satisfy customers offering high quality and innovative products with reasonable price. RBL is somewhat responsive in fulfilling customer’s demands and somewhat

Pricing (cont.)

The End