Background

BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF originally stood for BadischeAnilin- und Soda-Fabrik (English: Baden Aniline and Soda Factory).BASF was founded on 6 April 1865 in Mannheim, in the German-speaking country of Baden by Friedrich Engelhorn. Currently there are 109,140 people worldwide working in BASF. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia, America and Africa. BASF has customers in over 200 countries and supplies products to a wide variety of industries. Despite its size and global presence BASF has received relatively little public attention since abandoning its consumer product lines in the '90s. BASF - The Chemical Company has been operating in Bangladesh since 1966 under the banner of BASF Pakistan Limited in the then East Pakistan. After our independence in 1971, BASF started its operation in the name of BASF Bangladesh Limited (BBL) as a subsidiary of BASF SE. Today, with over 80 dedicated employees, BBL has offices in Dhaka (Head Office) and Chittagong and a warehouse in Tejgaon, Dhaka. BASF Bangladesh Limited is a leading supplier to textile, leather, pharmaceuticals, paper, paint, plastic & packaging, agro, animal feed, human nutrition and construction segments. BBL believes in strong partnership and strives to help customers through BASF products, technical know-how and extensive service facilities, which adds value to customer's products and helps them to conform to environmental and ecological standard specifications. BBL has developed three labs in Dhaka to support the various needs of the valued customers. The labs, one each for textile, leather and construction are equipped with latest testing equipment and manned with highly skilled individuals who extend technical and process support to the customers. Textile, pharmaceuticals, agro and the construction sector have emerged as the most potential and significant areas for BBL.

Products
BASF has a very strong and long product line. The total product line is basically divided into two major division as Chemicals & Plastics Division and Performance Chemicals Division. Eachof this two division has lot of products as below Chemicals & Plastics Division 1. Agro Chemicals 2. Construction Chemicals 3. Care Chemicals 4. Health & Nutrition 5. Plastics : 6. Intermediates, Inorganics and Performance Chemicals Division 1. Textile : 2. Leather Process Chemicals & Finishing Agents 3. Paper Chemicals 4. Plastic Additives 5. Dispersion and Pigments 6. Coatings

Source
BASF Bangladesh Ltd has both internal and external sources to fulfill the total market demand of Bangladesh. The main source of the company is BASF overseas country. As BASF Bangladesh has not any local production plant, so they arrange to deliver product to the customer from BASF other country. And they doing this by Indenting. For Bangladesh market BASF Bangladesh mainly sourcing from below intercompany.

1. BASF South East Asia, Singapore 2. BASF SE, Germany 3. BASF India Limited, India 4. BASF Auxiliaries & Chemical Company, China 5. BASF Indonesia P.T, Indonesia 6. BASF (Malaysia) SDN, Malaysia

BASF Bangladesh also has some third party sourcing to support the Bangladesh market as below.

1. Ercros S.A, Spain 2. VolpkerMontanwachsGmbh, Germany 3. Styrolution Korea Ltd, Korea 4. Keck - Chimie S.A, South Africa 5. Vita Companuy Ltd, India

Customer
BASF Bangladesh has a wide range of customer for his products. In every industries of Bangladesh there are requirement of chemicals from BASF. Thats why BASF Bangladesh has customers from Textile industries, Construction industries, Agricultural insecticide industries, Plastic industries, Leather industries, Pharmaceutical industries, Paper industries and the intermediate chemical industries also. Some of the major customers for BASF Bangladesh Ltd. from different industries mentioned below. 1. Novartis (Bangladesh) limited 2. Aftab Automobiles Ltd. 3. Auto crop Care Limited 4. Bengal Leather Industries Ltd 5. Woalton 6. Double A 7. Coats Bangladesh Limited 8. DAF P.P. Industry

Competitors

BASF is the world's largest chemical company. It has more than 370 manufacturing facilities and does business worldwide through six business segments. In Bangladesh BASF also has a big market share for required chemicals in individual sector. Though BASF Bangladesh is a market leader in

Bangladesh, there are some multinational companies as well as local companies also doing business in Bangladesh as supplying Chemicals. Below are the some competitors of BASF Bangladesh Ltd.

1. Evonik 2. Clarient 3. DuPont 4. Dystar 5. Colorcon 6. Kohinoor Chemical Industries

Supply Chain Process with ERP BASF is the world's largest chemical company. It has more than 370 manufacturing facilities and does business worldwide. Thats why the supply chain operation is very strong in BASF. Globally BASF using the most admirable ERP system SAP in the total supply chain process. Though in Bangladesh still they have not any manufacturing facilities, but to support the total country demand the total supply chain process of BASF Bangladesh Ltd is also very strong. Like other BASF country Bangladesh also using SAP as an ERP system. BASF Bangladesh started journey with SAP on Jul 2003. They are using basically FICO, SD & MM Module. BASF Bangladesh also using some other System as QZ system, Web Banking system. In Bangladesh BASF supply chain divided into two major parts as Indenting and Local Merchandising. 1. Indenting : By indenting BASF Bangladesh act like a local agent of BASF. Here customer placed order for there required product to BASF Bangladesh Ltd. After receiving order from customer BASF supply chain collaborate the process to creating PO for customer, order & LC transmit to supplier via SAP (for non SAP vendor via mail), Shipment & documents follow up via SAP (for non SAP vendor via mail), Invoice entry in SAP and many other task done by BASF supply chain. Here only the commercial task as LC opening and customs clearing process are done by customer himself.

2. Local Merchandising : By local merchandising BASF import products by himself and building stocks in own warehouse. And then merchandise products locally by local LC. Here LC opening & customs clearance also dine by BASF Bangladesh Ltd. Other task in ERP system like Indenting. BASF Bangladesh locally merchandise only three category products as Textile Chemical, Construction Chemicals and Agro Chemicals (Insecticides). In BASF Bangladesh local merchandising process is done by the Material Management department.

We describing below only the supply chain process with ERP for the local merchandising. a. Planning Process : There is a planning process for merchandise any new product. In the S & OP meeting they analyze the sales forecast and calculate net demand. After that they decided which product and how much need to procure next.

b. Purchase Requisition : After planning the marketing department raise the Purchase Requisition (PR) in SAP. And this PR trigger to the authorized person for approval. After approval of this PR automatically goes to the Material Management department. In SAP by transaction code ME51N the PR is created by the user.

c.

PO Create : After receiving the PR the responsible person go for the PO creation. In SAP by transaction code ME21N the user can create the PO as below.

d. LC Open : By using the PO responsible person is go for the LC open process. BASF Bangladesh using Web Banking to open the LCs. This online base LC open process helps them to reduce time.

e. PSI Reference collect : Maximum of the products of BASF needs PSI. After issuing the LC, they need to collect the PSI reference number to provide suppler. f. Order Transmit : After getting the LC number then it need to transmit the order through SAP. Before transmit the order LC number & PSI number has to input in the PO. In SAP by transaction code YSPREL the user can create the PO as below.

g. Monitor Shipment : After transmit the order responsible persons are monitor the shipments through SAP.

h. Shipping Documents Receive & Check : After getting the Shipping documents from suppler BASF check the documents and inform supplier if any discrepancies. To get the CoA of any product BASF using QZ system (If it is there own product).

i.

Customs Clearance : When the products are arriving in port BASF arrange to clear the products from customs with the help of C & F agents. Goods Receive : Finally after the customs clearance products arrives in the BASFs own warehouse and the responsible persons in warehouse arrange to receive the products in SAP.

j.

k.

NCM Raise : If there any issue like quality of product, short shipment, late shipment and other complain then BASF Bangladesh can raise NCM for the issue through SAP.

The total MM process flow is as below and the SAP involvement is required in several stage in the total process as mention.

Planning Process : Calculate with Sales Forecast & net demand

Create Purchase Requisition (PR)

PR Approval

Collect PSI Order No

Open LC

Create PO

Transmit Order via SAP

Monitor Shipment via SAP Inbound Delivery

Receipt and checking of n/n shipping documents

Raise NCM If Goods damage/ shortage?

Goods Receipt Physically & in SAP

Retire Original Documents from bank & Custom clearance

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