Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that

are as efficient and economical as possible. Supply chains cover everything from production, to product
development, to the information systems needed to direct these undertakings.
RB follows a concept of not maximizing their infrastructural wealth in the host country. So they are highly
depended on third party association. From collection of raw materials to transportation system, RB depends on
third party association. Even sometimes, they produce some of the well-known product as Dettol Soap with the
help of third party.

At present, when RB has become highly dependent on the third party, the risk of using third party increases as
they loss control over the process. Though they have a buy back contract but the implementation of this contract
has no value in practice because RB has to place an order before buying and for the scarcity of raw materials.
As a result, RB cannot ensure the quality as they promise. They have lost the contract and communication with
the source suppliers and this gap makes obstacles to go for collecting raw materials directly for their own. So,
they have lost all internal capability of procurement.

As RB has an alliance with the Mamun Transportation Agency and do not have any transportation system for
its own, sometimes the schedule do not matches with the RBs demand of vehicles and the availability of vehicles
of the agency. It also creates a big problem But it is very rare that any customer goes to buy a product and do
not get the RB product. They reserves safety inventory, so that they can meet the customer demand avoiding all
unwanted situation. RB reserves the inventory in a cycle to face the crisis situation.

One remarkable advantage that RB have by using third party association is, they can collect the raw materials
and produce product at a minimum cost, which could be higher if they goes attempt to do it for their own. So,
the profit becomes maximized because of using of third party association.

In this regard we tried to identify the whole supply chain management of Reckitt Benckiser (one of the
worldwide leaders in fast moving consumer goods) according to the context of Bangladesh. Here we noticed
that they collect their raw materials of soap only from Malaysia and Indonesia through the M.N international
ltd and Haque enterprise on buy back conditions. We also found in our study that Reckitt Benckiser is always
relaying on the outsourcing rather than direct manufacturing. Here they do work as a Re-seller of products that
is provided to them from the Indian, Malaysian, Pakistani, and French Reckitt Benckiser without any buyback
conditions. They make the push strategies directly to the customers through advertising and then send the
products to their agents, but agents are liable to sell all the products to the end users within a specific time
period. Not only that, at the time of sending products to the agent Reckitt Benckiser uses another third party of
transportation named Mamun International. So in the every stage of supply chain of Reckitt Benckiser, the
presence of third party alliance is very much noticeable. By the effective relationship with all the stages of the
supply chain Reckitt Benckiser is creating value in their supply chain management and moving with average
business growth of 15% yearly. In this case we are trying to present all of these issues very sequentially.
SOURCING:
A developing pattern in Reckitt Benckiser's business today is sourcing. For the most part, this sourcing includes
enabling another organization to deal with components of an organization's production and service. Most
organizations essentially see sourcing as an approach to save cash. This sourcing system incorporates

Supplier scoring and evaluation,

Supplier determination,

Design collaboration effort,

Procurement,

Sourcing planning and analysis.

To start with, Reckitt Benckiser looks at the innovation contrasts (technology differences) between their present
providers and the lower cost alternative. Obviously, not all providers are working at a similar level. If by chance
any of the providers (M International or Haque Enterprise) can give the materials in a lower cost to the R.B, at
that point will get the chance to supply that raw materials.
Other than this issue, Reckitt Benckiser likewise remembers other possible changes that could save their
cost.Many organizations erroneously swing to sourcing as their exclusive methods for bringing down creation
costs, however it is best as part of a complete cost decrease process. Reckitt Benckiser needs to precisely audit
all territories of production- related spending if they want to get the most extreme advantages possible from
sourcing.
From that point onward, Reckitt Benckiser makes a supply chain management strategy that will administer the
strategies for securing a supply of the merchandise and services needed to continue a steady production after
sourcing has been set in action.
At last, Reckitt Benckiser sends their completed merchandise to their Dhaka and Chittagong's distribution
centers through the Mamun International transportation. After making a cycle inventory they again sends their
items to their divisional agents. Agents are subject to pitch every one of the items to the end clients through
retailer.
TRANSPORTATION:
Like other FMCG companies Reckitt Benckiser doesn't have any self-possessed transportation framework in
Bangladesh. Reckitt Benckiser dependably does the delivery through the third part agent in Bangladesh. Reckitt
Benckiser moves their completed merchandise to everywhere throughout the nations from the Dhaka and
Chittagong's warehouses through the Mamun International transportation.
Dhaka warehouse covers the entire west districts while the Chittagong distribution center covers the east
segment of Bangladesh to convey their FMCG (Fast Moving Consuming Goods) to a definitive clients.

PURCHASING STRATEGY:
Purchasing is now considered as one of the most significant task of the supply chain management .Presently
purchasing has emerged as a key source of competitive advantage. In the mission for efficiency and
effectiveness different sort of procurement system are received, utilized and created by organizations. Numerous
multinational and local organizations are prevailing by only adopting effective purchase strategy.

Systems Followed by RB
These are the major purchasing strategy utilized by organizations.. RB production network directors give most
maximum emphasis on the cost. Their essential target is limiting the cost however with guaranteeing the
quality also.

Price Minimizing Strategy: RB gathers their raw materials from the suppliers who offer them the most
minimal cost with the standard product among many contending providers. As from this point of view we can
state that RB's adopted strategy is price minimizing strategy
 Bargainer Strategy:

Besides, there are some more attributes we found about RB. Sometimes RB utilize third party for gathering raw-
materials. MN universal, Kazi International and Haque International are as often as possible utilized for this
sort of sourcing. They have a decent association with them over a period of time however they utilize purchase
back condition in their agreement. They have no joint effort in Research and Development with their provider
or any other third parties.
No organization is a specialist in everything that is the reason combination and cooperation is basic for
delivering value. In spite of the fact that organizations receive different kind of procedures for productivity and
compelling administration, toward the day's end it just the need of the time and the economic situation (Demand
and Supply). Some company emphasize on the transaction but during the time of transaction and after doing
this type transaction several time the relationship grew stronger whether they want it or not.

VALUE CREATION:
Reckitt Benckiser's value chain is a physical portrayal of the different procedures that are associated with
creating merchandise, beginning with raw materials and ending with the delivered product. It is based on the
notion of value-added at the link level. The aggregate of link- level value-added yields total value. Coordination
and cooperation; Investment in data innovation; Changes in organizational processes; Committed leadership;
Flexible occupations and versatile, able workers; A strong hierarchical culture and attitudes are the segments of
value chain of Reckitt Benckiser. The value chain categorizes the generic value adding activities of an
organization. The "primary activities" include: inbound logistics, operations, outbound logistics, marketing and
sales, and services. The "support activities" include: authoritative framework administration, human resource
management, technology and procurement. The cost and value drivers are distinguished for each value activity.
Capturing the value created along the chain is taken by numerous administration strategists. Reckitt Benckiser
may require its parts providers to be found close-by its assembling plant to limit the cost of transportation. By
misusing the upstream and downstream data streaming along the value chain, the organizations may endeavor
to bypass the intermediaries creating new business models, or in other ways create improvements in its value
system.

SUPPLY CHAIN:
Procurement:

In the Procurement procedure, RB gathers thee raw materials, bundling materials and completed merchandise.
RB gathers their raw materials and completed products. RB gathers their raw materials from Indonesia,
Malaysia, India and from Bangladesh as well. RB create just the Dettol Soap, Harpic, Mortein Coil and Dispirin
and the bundling materials of these item are additionally been gathered from Bangladesh. Whatever the raw
materials or bundling materials they secure, they acquire it through outsider affiliation. The most Three as often
as possible and vigorously utilized outsider that are related with RB are MN International, Haque and Quazi
International. RB likewise imports a portion of the notable item in Bangladesh. They import Mortein Aerosol
from Indonesia and Malaysia. They import Veet from Pakistan, India and France and Lysol from India. These
bringing in are additionally incorporated into there obtainment process known as acquirement of completed
merchandise.
Manufacturing:

RB has two assembling plant in Bangladesh. One of them is in Dhaka and the other is in Chittagong. In the
manufacturing plant of Dhaka RB produces Dettol Soap and Dispirin and in Chittagong they create Harpic and
Mortein Coil. Once in a while RB produces Dettol Soap with Third gathering affiliation. All things considered,
they give the raw and bundling materials, calculated help, innovation and the quality controlling measures. The
outsider gives the land work and the hardware. But Bangladesh, RB likewise have generation design in India,
Pakistan, France, Indonesia and Malaysia.

Distribution:

Like the production plant, RB has two warehouses in Dhaka and Chittagong. Both of these depot store items
that originates from the assembling plant of Dhaka and Chittagong and imported completed merchandise that
originates from abroad. For making the distribution more simple and effective, RB has isolated the entire
Bangladesh in two regional areas:

BD West
BD East
The warehouse of Dhaka serves and disseminates the item in the west area of Bangladesh from Dhaka to
Dinajpur, Rajshahi and Panchagar.And, the warehouse of Chittagong circulates the item in the east locale of
Bangladesh from Sylhet to Chittagong including Comilla.

Transportation System:

Another noteworthy piece of RB's distribution is their transportation framework. For delivery they rely upon
the transportation agency. RB has an affiliation with the Mamun Transportation Agency an eminent shiping
agency all through Bangladesh. They settle the transportation charge quarterly for various routes and trip and
payment must be guaranteed by their understanding. RB has a settled apportioning of vehicles for general
utilization from the agency. But, in the pressing case in the event that they require more conveyance, they need
to inform it to the office no less than seven days prior.