1

Report on Ss Mart Super Shop

Report On Business Logistics

Topic: Ss Mart Super Shop

1.1 Literature Review:

Prepared By Breaking Dawn

Report on Ss Mart Super Shop

A supply chain is a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer (Bowersox, 2007) !upply chain management is a powerful tool to achieve this colla"oration #hrough supply chains, producers in developing countries and emerging economies can access mar$et information and $nowledge to hone their value%added activities(&andfield '((() )eveloping cross%"order supply chains is complex, however, and re*uires information and expertise a"out how to "uild chains, as well as communication and commitment from all the chain partners (Boehl+e '((,) #he advantages of supply chain management are numerous, li$e the reduction of product losses, increase in sales, reduction of transaction costs, a "etter control of product *uality and safety and the dissemination of technology, capital and $nowledge among the chain partners !upply chain management tools have "een developed and implemented throughout the chain to guarantee optimal chain performance Agri supply chains may include growers, pic$ers, pac$ers, processors, storage and transport facilitators, mar$eters, exporters, importers, distri"utors, wholesalers, and retailers !upply chain development can thus "enefit a "road spectrum of society, rural and ur"an, in developing countries(-arina 2000) .n order to react effectively and *uic$ to consumer/s demand, supply chain management is consumer%oriented .t aims at coordination of production processes (0am"ert and 1ooper 2000) !upply chain management results in lower transaction costs and increased margins Because of the many activities and aspects involved it demands a multidisciplinary approach and sustaina"le trade relations !upply chain partnerships are "ased on interdependence, trust, open communication and mutual "enefits A range of new supply chain management tools have "een developed over the past decade 23fficient consumer response/ (314) has "een developed to increase the consumer orientation and cost%effectiveness of supply chains (5urt !almon Associates, '((6) 7ew management systems have "een implemented to improve logistics, increase the use of information and communications technologies and "oost *uality management #he most o"vious integration is that of the segments of the supply chain and the information #hat flows among the segments &owever, there is another type of integration8the integration of the value chain #raditionally, the supply chain has "een thought of in terms of purchasing, transportation, warehousing, and logistics #he integrated value chain is a more

Prepared By Breaking Dawn

Report on Ss Mart Super Shop

encompassing concept .t is the process "y which multiple enterprises within a shared mar$et channel colla"oratively plan, implement, and manage (electronically as well as physically) the flow of 9oods, services, and information along the entire chain in a manner that increases customer perceived value #his process optimizes the efficiency of the chain, creating a competitive advantage for all sta$eholders in the value chain #he supply chain is "asically a description of flows and activities, "ut the value chain expresses the contri"utions made "y various segments and activities to the profit and to customers/ satisfaction ()ric$hamer, 2002 ) Another way of defining the value chain integration is as a process of colla"oration that optimizes all internal and external activities involved in delivering greater perceived value to the ultimate customer A supply chain transforms into an integrated value chain when it: 3xtends the chain all the way from su" suppliers (tier two, three, etc ) to customers .ntegrate "ac$%office operations with those of the front office operations Become highly customer%centric, focusing on demand generation and customer service, as well as demand fulfilment and logistics !ee$s to optimize the value added "y information and utility%enhancing services .s proactively designed "y chain mem"ers to compete as an ;extended enterprise,< creating and enhancing customer%perceived value "y means of cross%enterprise colla"oration =uch importance is attached to the concept of 2"ac$ward lin$age/ in development literature 1ommonly it is understood to refer to an industry that produces an output that is used as an input in the production of another output (it could also refer to positive externalities) (= A #aslim 200()

Ss Mart Super shop:

Prepared By Breaking Dawn

Report on Ss Mart Super Shop

!s =art is one of the largest super shops in )ha$a city .t is situated in science la", )hanmondi .t has only one outlet in the city !s =art focuses on strategic supply chain management, or the use of supply chains as a means to create competitive advantages and enhance firm performance

Supp y chain o! Ss "art !or #gricu tura products:

A supply chain is a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer #his figure is an illustration of "est value supply chain #he followings are the supply chain of !s =art rice, vegeta"les, eggs, meats and fishes

Supp y chain o! Potato:

!s =art "uys vegeta"les and potato from the farmer of 7eelfamari, &atidanda A school teacher of that place plays the role of "ro$er &e collects vegeta"les from the farmers and then delivers it to !s mart "y local "us #he manager of the super store collets those vegeta"les from the =ohammadpur "us stand .t costs lower than "uying from the retailers of 5awran Bazar

Farmer level (Neelfamari)

Broker (school teacher)

Super store (Ss Mart)

Customer (localit )

$ost

!rice: " Tk. per kg

!rice: # Tk. per kg

!rice: $% Tk. per kg

!rice: $" Tk. per kg

Pro!it

& Tk. per kg

& Tk. per kg

3 Tk. per kg

Satisfaction ' consumption

Each day a sack of 75 kg is bought except Friday. In Friday Ss mart buys 2-3 sacks of potato.

Transportation cost: 3 Tk. per kg

Supp y $hain o! %gg: Prepared By Breaking Dawn

Report on Ss Mart Super Shop

!s =art "uys eggs from the local wholesale mar$et in )ha$a city, 5awran Bazar #hey don/t get that much profit from the eggs Because it is one of the most important daily foods, they have to store eggs >e have read a research paper on that According to these, poultry farmers profit '0? from the production cost

!oultr farmers (Nara angan*)

,holesaler (-a.ran Ba/ar)

Super store (Ss Mart)

Customer (+ocalit )

$ost:

!rice: Tk. 0.3) per piece

!rice: Tk. " per piece

!rice: Tk. 1.&) !er piece

!rice: Tk. # per piece

Transportation cost: Tk. (.() per piece

Pro!it: Tk .0) per

piece

Tk. $.&) per piece

Tk. ( ." per piece

Satisfaction ' consumption

#he poultry firm is in 7arayangan+ from which the wholesaler of $arwan"azar "ought eggs "y paying 700 t$ for each '00 pieces !s =art purchases around 2@0 eggs per day from the wholesaler and has to pay ,2@ t$ for '00 pieces

Supp y $hain o! Bea!:

!s =art collects meats from retailers of 9a"toli A supervisor is given the tas$ of supplying meats at the lowest price with "est *uality #hey "uy meats from 9a"toli and then "rought it to store via their own logistics
,holesaler (2a'toli) Super store (Ss Mart) Customers

$ost:

Tk. &)% per kg

Tk. &0) per kg

Tk. &1( per -g

Transportation cost: ) Tk per -g

Prepared By Breaking Dawn

Report on Ss Mart Super Shop

Pro!it:

Tk. $$ per kg

Tk.$) per kg

Satisfaction ' consumption

Ss

art purchases beef from !abto"i at a price of 2#$ tk per kg and se"" at a price of %k. 2&$

per kg to customers and bought 25-3$ kg each day and '$-#$ kg on Friday.

Rice:
!s =art purchases rice from 5rishi mar$et, =ohammadpur .t is one of the largest wholesale mar$ets for rice in )ha$a #hey held mainly 2 types of rice #hese are: 7ai+arshail =inicat

Between them, there are further several types of *ualities remained According to these *ualities we have presented the supply chain of rice of !s =art

Wholesale r

Retailer

Customers

&ai'arshai :
7ai+arshail is the top *uality rice in Bangladesh people usually have on a regular "asis #here are two "rands of 7ai+arshail rice that !s =art holds #hese "rands of rice are descri"ed "elow according to the supply chain of !s =art $. 3ahim 4 Sons (Special):
Wholesale Price: TK. 52 Retail Price: TK. 55

Transportation $ost Per kg: T(.).*

Ruff Profit of Ss Mart: Tk.2.5

Prepared By Breaking Dawn

Report on Ss Mart Super Shop

!s mart purchases this rice "rand '00 $g wee$ly #he estimate is shown according to per $g cost of 4ahim and !ons 7ai+arshail rice &. Nine Star 3ice Bran5:
Wholesale Price: TK. 39.5 Retail Price: TK. 42

Transportation $ost Per (g: T(.).* Ruff Profit of Ss Mart: Tk.2

!s mart purchases this rice "rand '00 $g wee$ly #he estimate is shown according to per $g cost of 7ine !tar 7ai+arshail rice "rand

Minicat:
=inicat is another renowned "rand of rice B) .t is usually two types "ase on *uality #hese are: 1. Rahi" + Sons:
Wholesale Price: TK. 43 Retail Price: TK. 46

4ahman A sons 4ashid A sons

Transportation cost Per (g. Tk. ).*

Ruff Profit of Ss Mart: Tk.2.5

Prepared By Breaking Dawn

Report on Ss Mart Super Shop

,. Rashid + Sons:
Wholesale Price: TK. 38 Retail Price: TK. 41

Transportation cost Per (g. Tk. ).*

Ruff Profit of Ss Mart: Tk.2.50

-ish:
>hen !s =art orders for fish, farmers from 4angpur, !hat$hira, 5hulna send fresh formalin free fish from their own fish firm through top of the local "us #hen employee of !s =art collects those from "us stop, "rought to store with their own logistics and then store it in the super stores refrigerator for sale

Farmers

Super Store

Customers

Shri"p:
Transportation $ost per (g: Tk. 1*
Farmers Level: Medium Sized Shrimp TK.330 Large Sized Shrimp Tk.750 Retailer level: Medium Sized Shrimp TK.400 Large Sized Shrimp Tk.900

Prepared By Breaking Dawn

Profit of Ss Mart Medium Sized Shrimp TK. 55 Large Sized Shrimp TK. 135

Report on Ss Mart Super Shop

Pro!it -ro" Shri"p . per (g /0#hey usually "uy shrimp from !hat$hira and Bagherhat

(O1 -ish
Transportation cost Per (2: 13
Farmers Level: Medium Koi Fish TK.220 Large Koi Fish Tk.350 Retailer level: Medium koi Fish TK.300 Large Koi fish Tk. 450

Profit of Ss Mart Medium Koi Fish TK. 7 Large Koi Fish Tk. !7

Pro!it !ro" (O1 -ish: %hey buy ()I fish from *rammonbaria

Ss Mart super store4s 5a ue $hain:

A value chain is a string of companies or players wor$ing together to satisfy mar$et demands for a particular products But in case of super stores they wor$ together to satisfy mar$et demand for customer/s everyday/s necessities

6 value chain anal sis of Ss mart:

7n'oun5 +ogistics 8perations Marketing 4 Sales Services

7n'oun5 +ogistics:

Prepared By Breaking Dawn

10

Report on Ss Mart Super Shop

!s =art collection services depend on time and re*uest processing #hey order according to the demand of the product and estimate future sales through trend analysis #heir order amount depends on the super store/s capacity to store the products and the time of replenishment cycle 8perations: #hey provide good *uality products #hey do not $eep any rotten vegeta"les of yesterdays #hey promise to their customers to provide them with fresh products li$e vegeta"les, fishes etc Marketing 4 sales: #heir main target customers are the middle class and upper middle class of )hanmondi area #hose who prefer fresh foods and have less time for "uying, !s =art is the famous choice to go there #hey price competitively to sustain in the mar$et #hey add a favoura"le mar$ up to their cost #hey do their advertising through leaflet, posters in the concerned area #hey do mar$et research for that particular area to understand the mar$et demand and then ta$es action to fill them

Services: !s =art ensure after sale service to some sort of products #hey provide customers with accepting A#= cards and visa cards #hey response to each customer/s call very politely By analyzing the supply chain and value chain of !s =art, we came to $now that that they are *uit promising and competitive in the mar$et

Backward Linkage:
=uch importance is attached to the concept of 2"ac$ward lin$age/ in development literature 1ommonly it is understood to refer to an industry that produces an output that is used as an input in the production of another output (it could also refer to positive externalities) -or example, steel production is a "ac$ward lin$age industry for a num"er of commodities such

Prepared By Breaking Dawn

11

Report on Ss Mart Super Shop

as corrugated iron sheet, machinery, cutlery etc #he term is simply a description of the place of the industry in the production chain &owever, in Bangladesh it is fre*uently asserted that having domestic "ac$ward lin$age industries is essential or desira"le for rapid industrialisation #he deduction is false as a general proposition !s =art doesn/t have such "ac$ward lin$ages for any types of products

Market Surveys
1onstituting mostly of primary data, this portion of the report deals with the "ehavior, expectations and what consumers receive from !s =art super shop and super shop industry of Bangladesh -rom a survey conducted on 2@ consumers and target consumers of the !s mart, we have found out their perception and "ehavior regarding the super shop 3esults of Consumer surve s #his section has "een compiled via distri"uting *uestionnaires and analyzing the data collected from the aforementioned *uestionnaires .n addition several newspaper and internet articles on the supermar$et industry have "een utilized 6ge of Super shop consumers #he fact that super shops are more visited "y people of middle age rather than the younger generation is evidenced in the survey >e surveyed among 2@ consumers and among them 62? (, people) of the visitors were of 6B to C@ age range and 2C? (B people) were of CB to @@ age 7ewlywed couples and "achelors of 2B to 6@ age range also shop from super mar$ets, the percentage of such shoppers is 2,? (7 people) Figure: !ie chart on &) respon5ent9s age groups Source: !rimar :5ucation of Super shop consumers
32% 24% 8% 8% 28% 15-25 26-35 36-45 46-55 Above 56

Prepared By Breaking Dawn

12

Report on Ss Mart Super Shop

Figure: !ie chart on &) respon5ent9s :5ucational 'ackgroun5 Source: !rimar #he fact that super stores are mostly visited "y educated people is evident in our survey Among 2@ respondents, B respondents were doctorates, '0 were postgraduates, 7 were undergraduates and only 2 of them were "elow & ! 1 level 8ccupation of Super shop consumers

Figure: !ie chart on &) respon5ent9s 8ccupation

Prepared By Breaking Dawn

13

Report on Ss Mart Super Shop

Source: !rimar Dur survey result shows that there are C students, , service holders, 7 "usiness persons and B home ma$ers among 2@ persons shopping regularly in supermar$ets !o highest percentage is of service holders (62?) and second highest percentage is of "usiness persons (7?) !tudents go to comparatively less fre*uently in super shops as only 'B? students use super mar$ets

Monthl 7ncome of Super shop consumers

Monthl !ncome
Below 20,000 35,000-50,000 above 70,000 4% 28% 20,000-below 35,000 50,000-below 70,000 12%

24%

32%

Figure: !ie chart on &) respon5ent9s monthl income Source: !rimar Apparently people having a higher income rate shop mostly at super mar$ets @B? of people having income of more than @0,000 B)# "uy from such stores Dnly 'B? consumers having income less than 6@,000 B)# "uy from such stores

Prepared By Breaking Dawn

14

Report on Ss Mart Super Shop

Marital status of consumers

Figure: &) Super Market Customer9s marital status The follo.ing fre;uenc ta'le sho.s customer opinion a'out 5egree of impact Ss Mart has on consumer status Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 2 7 , B 2 2@ Eercent Eercent ,? ,? 2,? 2,? 62? 62? 2C? ,? '00 2C? ,? '00 1umulative Eercent ,? 6B? B,? (2? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out store atmosphere an5 5ecoration appeal of Ss Mart

Prepared By Breaking Dawn

15

Report on Ss Mart Super Shop

Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 6 , 7 B ' 2@ Eercent Eercent '2? '2? 62? 62? 2,? 2,? 2C? C? '00 2C? C? '00 1umulative Eercent '2? CC? 72? (B? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out 5iversit of pro5ucts at Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 2 7 , B 2 2@ Eercent Eercent ,? ,? 2,? 2,? 62? 62? 2C? ,? '00 2C? ,? '00 1umulative Eercent ,? 6B? B,? (2? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out availa'ilit of a5vertise5 pro5ucts on stocks of Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 6 , 7 B ' 2@ Eercent Eercent '2? '2? 62? 62? 2,? 2,? 2C? C? '00 2C? C? '00 1umulative Eercent '2? CC? 72? (B? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out reasona'ilit of price charge at Ss Mart

Prepared By Breaking Dawn

16

Report on Ss Mart Super Shop

Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 2 '0 , 6 2 2@ Eercent Eercent ,? ,? C0? C0? 62? 62? '2? ,? '00 '2? ,? '00 1umulative Eercent ,? C,? ,0? (2? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out ph sical facilities of Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 2 7 , B 2 2@ Eercent Eercent ,? ,? 2,? 2,? 62? 62? 2C? ,? '00 2C? ,? '00 1umulative Eercent ,? 6B? B,? (2? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out safet in their transactions .ith Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 6 'C B 2 0 2@ Eercent Eercent '2? '2? @B? @B? 2C? 2C? ,? 0? '00 ,? 0? '00 1umulative Eercent '2? B,? (2? '00? '00?

Prepared By Breaking Dawn

17

Report on Ss Mart Super Shop

The follo.ing fre;uenc ta'le sho.s customer opinion a'out convenience of location of Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 6 , 7 B ' 2@ Eercent Eercent '2? '2? 62? 62? 2,? 2,? 2C? C? '00 2C? C? '00 1umulative Eercent '2? CC? 72? (B? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out s.iftness in 5elivering the or5ere5 pro5ucts at Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 2 '0 , 6 2 2@ Eercent Eercent ,? ,? C0? C0? 62? 62? '2? ,? '00 '2? ,? '00 1umulative Eercent ,? C,? ,0? (2? '00?

The follo.ing fre;uenc ta'le sho.s customer opinion a'out courteous emplo ee 'ehaviour at Ss Mart Falid Falid !trongly Agree Agree 7either agree or )isagree )isagree !trongly )isagree #otal -re*uency 2 '0 , 6 2 2@ Eercent Eercent ,? ,? C0? C0? 62? 62? '2? ,? '00 '2? ,? '00 1umulative Eercent ,? C,? ,0? (2? '00?

Ss Mart9s Consumer satisfaction level

Prepared By Breaking Dawn

18

Report on Ss Mart Super Shop

" atis#action $ith o%erall ser%ice &ualit

S trongly agree 12% 16% Agree 4% Neutral 20% !"agree S trongly #!"agree

48%

Figure: !ie chart on &) respon5ent9s Satisfaction level .ith Ss Mart Source: !rimar .t is evident from our research that C,? of the consumers agree that they are satisfied with the services provided "y !s =art &owever, almost 62? want modifications as they are not fully satisfied with the services !s =art provide

Competitive 6nal sis of Super shop 7n5ustr in Bangla5esh !reference of market

Prepared By Breaking Dawn

19

Report on Ss Mart Super Shop

S u$er %ar&et"

lo'al (ar&et" 8% 4%

)n l!ne

*!g+ S treet

,onven!en'e S tore"

)t+er

12% 48% 4%

24%

Figure: !ie chart on &) respon5ent9s market selection Source: !rimar C,? "uy groceries from super mar$ets .n our country on line "usiness is not wide spread so only C? shop from on line &owever, survey reveals that consumers "uy from a com"ination of mar$ets for different products rather than "uying from a single mar$et

Prepared By Breaking Dawn

20

Report on Ss Mart Super Shop

Most use5 super markets ' consumers

4% %eena ba-ar Agora 13% 17% 14%

" ales
S wa$no 25% Nan#on S " %art .r!n'e Ba-ar

29%

Figure: !ie chart on &) respon5ent9s super market selection Erimary data shows that Agora is the most popular super mar$et of )ha$a city with a staggering 2(? of the entire mar$et share 7ext mar$et leader is =eena Bazar with 2@? of the mar$et share #hen comes 7andon serving '7? of the total customers !s =art comes next while serving '6? of the entire mar$et Erince Bazar serves only C? of the entire mar$et 3eason For selection of Super markets

Prepared By Breaking Dawn

21

Report on Ss Mart Super Shop

Figure: !ie chart on &) respon5ent9s reason for super market selection

.t is visi"le that for selecting certain supermar$et location is the most important factor having relative importance of 6B? !econdly there is competitive price having relative importance of 2C? and then comes the *uality of the product having relative importance of 2'? !o these are the important factors consumers consider while selecting a certain super shop

3eferences:
Bowersox, ) G , 1loss, ) G , A 1ooper, = B (2007) !upply chain logistics management 7ew Hor$: =c9raw%&illI.rwin Boehl+e, = , 0 !chrader and G A$ridgel ('((,) D"servations on formation of food supply chains .n: Proceedings of the third international conference on chain management in the

Prepared By Breaking Dawn

22

Report on Ss Mart Super Shop

agribusiness and the food industry edited "y 9 > Jiggers, G & #riene$ens and E G E Juur"ier >ageningen: >&D EKB0.!&3) )ric$hamer, ) ;Falue%1hain =anagement =oves from )ream to 4eality < Industry Week, April 2002 -arina, 3 = = L , and # 4eardon (2000) Agrifood 9rades and !tandards in the 3xtended =ercosur: #heir 4ole in 1hanging Agrifood !ystem, American Gournal of Agricultural 3conomics, ,2(@): ''70%''7B &andfield, 4 B and 3 0 7ichols ('((() .ntroduction to supply chain management 7 G : Erentice &all 5urt !almon Associates ('((6) 3fficient 1onsumer 4esponse: enhancing consumer value in the grocery industry, >ashington )1: -ood =ar$eting .nstitute 0am"ert, ) = and = 1 1ooper (2000) .ssues in supply chain management .ndustrial =ar$eting =anagement 2(: B@%,6 = A #aslim, 200(%http:IIopinion "dnews2C comI200(I'2I0,Ioff%the%mar$"ac$ward%

lin$ages%and%high%value%productsI 7arayanan, F 9 , A 4aman, A (200C) Aligning incentives in supply chains &arvard Business 4eview, ,2(''), (CM'02 !upply 1hain 1ouncil (2007) !upply chain operations reference model , 0 4etrieved from http:IIwww supply%chain org

Prepared By Breaking Dawn