Post on 04-Jun-2018
8/13/2019 Assignment on - S C M
1/26
Assignment On
Supply Chain
Management System
Of Aarong
8/13/2019 Assignment on - S C M
2/26
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 organiation of
Bangladesh. Aarong is a chain of retail outlet located in
ma!or cities in Bangladesh an enterprise of B"AC. It
established in #$%&' Aarong is a fair trade organiation
dedicated to bring about positive changes in the lives of
disadvantages ascertains and underprivileged
http://3.bp.blogspot.com/-jpbtfT00pic/UbNR_DFi-rI/AAAAAAAAA00/I-_TQ0BZQG0/s1600/Aarong_Logo_2010.gif8/13/2019 Assignment on - S C M
3/26
rural woman by reviving and promoting their s(ills and craft.
"eaching out to weavers' potters' brass wor(ers' !ewellary'
!ute wor(ers' bas(et weavers' wood carvers' leather wor(ers
and more' Aarong' to embraces and nurtures a diverse
representation of )*+++ artisans wor( with the collaboration
of &*, of whom are women. -oday' Aarong has become the
foundation upon which independent cooperative groups and
family based artisans mar(et their craft' in an effort to
position the nations handicraft industry on a world platform
of appreciation and ac(nowledgement. Aarongs supply chain
management SCM/ is the integration and management of
supply chain organiations and activities through
collaboration' effective business processes and information
sharing with women co0operatives. It has become a great
tool for Aarong to deal with competition and increasing
customer demand for value. -o provide complete
satisfaction to its domestic and foreign buyers' the
information must be available in real time across the supply
chain and this is achieved by Aarongs integrated software
system for supply chain management. 1eb technologies
enable Aarong to become more effective' to trade with
suppliers and customers over the Internet in real time.
Implementation of the supply chain information systems in
Aarongs facilitates an increase in its competitiveness and
profits.
8/13/2019 Assignment on - S C M
4/26
Background:
Aarong emanated from B"ACs core mission of alleviating
poverty and empowering people. In the #$%+s' B"AC was
e2amining any and all possibilities for alternative forms of
productive livelihood' especially for women' and the proper
commercialiation 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.
http://3.bp.blogspot.com/-IbqadFBmSxU/UbNSsKzPxKI/AAAAAAAAA08/faClydo9HW0/s1600/Artesanas-Aarong000.jpg8/13/2019 Assignment on - S C M
5/26
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
8/13/2019 Assignment on - S C M
6/26
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
8/13/2019 Assignment on - S C M
7/26
those
8/13/2019 Assignment on - S C M
8/26
Products of Aarong:
MEN'S P!"#$TS:
Traditiona%& Executive Sirts& Maan(a & )otua& Sort*urta& T+sirts&Sto%es,Sa-%s& Sanda% etc.
http://4.bp.blogspot.com/-wl_auqJUqNo/UbNTQv8AqHI/AAAAAAAAA1E/kVPLHnmcBc8/s1600/imagesddd.jpg8/13/2019 Assignment on - S C M
9/26
/!MEN'S P!"#$TS:
Traditiona%& 1estern Nigt-ear&& Sa-%s,Scarves& Soes&
Bags & )a0rics.
$123"EN'S P!"#$TS:
$%otes& Toys& Books& Soes
!ters:
>ome -e2tile' >ome Accessories' =ewellary' 9eather -erracottaBamboo?Cane?9eaf' Metal' Candles' =ute' Ceramics'
8/13/2019 Assignment on - S C M
10/26
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 service 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 ManagementSystem 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
http://4.bp.blogspot.com/-QIpsyRZOQ9E/UbNUJLonYRI/AAAAAAAAA1U/AChundWXiw8/s1600/supply_chain444.bmp8/13/2019 Assignment on - S C M
11/26
employees and the most vital components of Aarongs
supply chain management system are its telecommunication
system. Cell phones helped Aarong to create a
communication networ( with every suppliers and
transportation partners across the country. All this
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:
8/13/2019 Assignment on - S C M
12/26
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 organiation 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
http://1.bp.blogspot.com/-DUa1ZZYzWfk/UbNUkiKkJrI/AAAAAAAAA1g/sY8S1CDY_nc/s1600/exhibit_111.JPG8/13/2019 Assignment on - S C M
13/26
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 of Aarongs supply chain
management. 1ithout 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:
http://2.bp.blogspot.com/-enn7f9AVbrI/UbNXuFCBgII/AAAAAAAAA1s/VbURRakcYEc/s1600/SupplyChainExecution88.jpg8/13/2019 Assignment on - S C M
14/26
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 $ain ManagementProcess
P%an:Aarongs supply chain management planning starts atthe 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 itsupply. As the demand re;uires suppliers come up with raw
materials and goods. -hen it creates a product which we can
e2ploit.
8/13/2019 Assignment on - S C M
15/26
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.
=ust0in0timeD is followed in delivery process.
eturn:"eturn process is consisting of product returns and
post delivery customer support which is done by Aarong.
enerally 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.
8/13/2019 Assignment on - S C M
16/26
Aarongs Su44%y $ain Management2nformation )%o-
Information flows 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 ManagementBackend incor4oration:
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 through
telecommunications. Co0operatives have all sorts of
facilities. -hey stay connected though telecommunication.
Aarongs database is open to its suppliers it provides them
with inventory data. And suppliers also can provide
8/13/2019 Assignment on - S C M
17/26
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. -here is
also "o-nstreamportion consists of the 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
8/13/2019 Assignment on - S C M
18/26
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 tomaintain 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 followall 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
8/13/2019 Assignment on - S C M
19/26
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 dynamicmedium 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. Aarongsemployees 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 morenimble rivals. Aarong seems to be one of the organiation
which is interested provide online based order and
information system to its customer. So Aarong has a very
daling managerial s(ill in internet based supply chain.
8/13/2019 Assignment on - S C M
20/26
Aarongs 4erformance im4rovements 0y S$M:
5. Accurate information for su44%iers and 0uyers:
Because of the proper Supply Chain Management Aaronggets accurate information. 3istort information is a ma!orproblem of govt. funded organiation but Aarong is differentbecause of its supply chain management.
6. Easi%y stored data 7 access:
SCM has provided easy way to store data. Information canbe easily stored. -his made suppliers and front lineemployees very efficient about their !ob.
8. 2nformation saring troug #4stream and"o-nstream:
1ithout networ(' information sharing would ta(e lots oftime. But in Aarong' can share information very easily withits upstream and downstream partners and suppliers.
http://1.bp.blogspot.com/-gQJoZxTofnc/UbNbE_EzyrI/AAAAAAAAA2M/2FWgj80OdqY/s1600/images+++75.jpg8/13/2019 Assignment on - S C M
21/26
9. /ork efficiencies:
Supply Chain Management System has increased Aarongswor( efficiency.
. S4eed:
SCM has increased speed of the wor(. 5mployees arewor(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 itwhenever they want. Suppliers can store data too. Anychanges can be seen through website. Customers get bighelp from that.
. 2m4rovement in Training em4%oyees:
@ower point has improved training programmers foremployees.
8/13/2019 Assignment on - S C M
22/26
5?. 2m4roved customer satisfaction:
Aarong has improved customer satisfaction with its supplychain 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 customie 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 happywith their wor( and they are clear about what to do F whatnot to do.
58. 2m4roved communication:
Gideo and teleconferencing has improved communication inAarong. 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 bringefficiency.
8/13/2019 Assignment on - S C M
23/26
$om4etitive Advantage of Aarongs Su44%y$ain Management System:
Competitor analysis in mar(eting is an assessment of the
strengths and wea(nesses of current and potential
competitors. -his analysis provides both an offensive and
defensive strategic conte2t through which to identify
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.
8/13/2019 Assignment on - S C M
24/26
$om4etitors Ana%ysis of Aarong:
7rom the above diagram it is seen that Aarong has
competitive advantage over its competitors on almost everyfactors. 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.
http://1.bp.blogspot.com/-nsZnlhyZO9Q/UbNZPVjVCSI/AAAAAAAAA18/-W9AtDZvXFE/s1600/competitors-analysis-aarong++aarong.jpg8/13/2019 Assignment on - S C M
25/26
$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 organiational vision will be achieved
smoothly and that is the women will be empowered through
grass0root level women entrepreneur developmentD and
this empowerment will change the overall scenario of
economic condition.
8/13/2019 Assignment on - S C M
26/26
eference:
---.Aarong.org---.scri0d.com
http://www.aarong.org/http://www.aarong.org/