Вы находитесь на странице: 1из 23

Supply Chain Logistics at BATB

Mohammed Tanvir Imam

Institute of Business Administration


4th June,2014
Topics

 Intro to Self
 BATB intro
 Supply Chain Department
 End to end Supply Chain
 Where does it all start- S&OP
 Logistics scope
 Space and time is money
Mohammed Tanvir Imam

 BBA 5th Batch/ 2001.. IBA CGPA 3.75

 MBA 36th /2008..IBA CGPA 3.9

 Management Trainee, Maersk Line 2001

 Project Manager, Maersk Sweden 2004-2006

 Country Manager, MCC Transport 2008-2012

 Logistics Manager, BATB 2013


BATB Intro

BDT 11,000
Crore BDT 8500 Crore
Gross Turnover (78% GT as Tax)
(GT)

Net Proft
47% market share
4.45% of GT

1094 Employees IBA graduates at


(900 unionized) the helm
Supply chain Department

Production Technical Product Environment


Procurement
Services Integrity Health and
& Leaf Logistics
Safety
Planning
At a glance
The SC value chain from seed to smoke

Capacity:
36 Billion

SMD

GLT
Leaf PMD Depots Distributors
Capacity: Capacity:
Farmers: 32,362 Own: 1 Total: 52
15 Tons / hr 6.8 tons/hr Rental: 5
Depots: 11
Volume: 47.2 mln kgs

WMS Suppliers
Local: 65%
Imported : 35%
Leaf Exports
Volume: 12 mln kgs
Value: £ 20 Mln
Bangladesh Supply Chain

Supplier Manufacturing Warehousing Distribution/GLP


Local Exp Prized WH_
Leaf GLT + RDP Chittagong Port
Ctg 60%
95% Depots & GL
Warehouses
Leaf

Exp Prized WH_


GBP 785K Mnk 40% GBP 187K
GBP 960K Dhaka In Land
Imported GBP 224K
Container Yeard
5% Dom Prized Leaf
Port WHs including Transit

2 export Staffing GBP 107K


GBP 135 K Points
53 Distributors
Imported 21%
WMS

37% GBP 275K GBP 183 K

BAT B Own 6 Depots


32 Distributors
Local
63%
Dhaka Factory 79%

GBP 690 K
1GBP = BDT 134.83 21 Distributors

All costs in GBP


End to end Supply Chain operation

Green Leaf Leaf Export


Farmers: 32,462 Volume: 11.92 Mln Kgs
Depots: 11

Green/Prized Storage
4 Locations: 293k, sft
Own 50% & Rented 50%
SC TM&D

Direct Delivery: 21 – 75%


Factory

Green Leaf Storage GLTP Prized Leaf Storage FG Storage Depots Distributors
37 Locations: 1,373k, sft Green Leaf 20 ksft 12 Locations: 373 k,sft 1 Location in DF 6 locations No.: 52
Own: 40% & Rented: 60% Cooling 30k, sft Own: 30% & Rented: 70% Size 40.7k, sft Size11k, sft
Additional space required No storage space for prized Additional space required Capacity 850 mln - 7.5 days Capacity 2.5 days
leaf and WM Additional space required Additional space required

Leaf/WMs in DF Imported Material & FG


1 location in DF 1 Location in Savar
17.7k, sft WM 32k, sft – with 16k sft bonded
4 days duration FG 32k, sft
Managed by 3rd party
Bangladesh Supply Chain at a glance

ACV: 4.43 mln Kgs


(Burley, Maryland) &
3 mln kgs
(Dark Air Cured)

ACV: 3.2 mln kgs


(Burley)

FCV: 26.144 mln kgs


(Filler & Semi-Flavour)

FCV: 10.378 mln Kgs


(Semi-Flavour &
Leaf Areas
Flavour)
GLT Factory

RDP

Dhaka Factory

Sales Warehouses

Savar

Deep Sea Port


BAT B Logistics Overview

Operating Locations 37

Number of warehouses FG→ 9 Leaf→ 143


Rented 6 57 → 60%

Own 3 86 → 40%

Leaf warehouse space 000 sqft 1,746


Rented 1,048 → 60%
Own 698 → 40%

FG warehouse space 000 sqft 130


Rented 56
Own 74

Total distance travelled mln km 1.5

Service providing entities 46


Warehouse Agreements 49
Transportation Agreements 22
Handling Agreements 28
BATB Value Chain
Complete Seed-to-Smoke Operation

Leaf
Farmers: 32,462 Leaf
Depots: 11 Export
Volume: 44.2 Mln Kgs
Price to farmers: £ 38.2 Mln Volume: 11.92 Mln Kgs
3rd Party (DAC): 3 Mln. Value: £ 23.2 Mln

Green GLT Prized Cig. Sales


Storage Distributors Retail
Factory Storage Factory Warehouses

37 Locations: Capacity: 12 Locations: Capacity: No: 6 No.: 52 1 mln outlets


1,373 K sft Line 1: 11 Tons / hr 373 K sft 35 Billion
Own: 550 K sft Line 2: 5 Tons / hr Own: 113 K sft
Rented: 823 K sft. (135 days) Rented: 260 K sft.

Direct Delivery: 21
Leaf/WM
Import
Local WMs Imp. leaf volume: 1.2 mln Kgs
Local Suppliers: 7 nos Imp. leaf value: £ 13.5 mln.
Value: £ 31.2 mln WM Imp suppliers: 6 nos.
WM Imp value: value: £14.8 mln

Figures: Plan & Actual 2013 @ 2013 Budget Rate


Sales and Operations planning
Cost Matrix’13

INBOUND LOGISTICS OUTBOUND LOGISTICS

# of
Main Route Distributors =
to Market = ? 51
Imported Domestic / Annual
FG Factory Secondary
Green Leaf Prized Leaf WMS FG Export Volume (Mille Freight W/Sale Distributor Delivery
Warehouse Warehouse
Transport Transport Sticks)
33,046
47.2 37.9 46 900 - Quantity/Capacity 1,664
8 months 30 Days 7 days Days / Months Stock Cover 9 days
1,373 373 62 41 KSq of Warehouse Space 104
8 4 3 1 # BAT Warehouse Locations 2 -
16 8 1 - # Non BAT Warehouses Locations 7
24 12 4 1 - Total Warehouses 9 - - -

£785,000 £184,000 Warehouse Cost £158,600


£1,000,000 £500,000 £50,000 Land Freight Cost £1,600,000
£66,777 Sea Freight Cost
Air Freight Cost
DSS Delivery (BAT/Dist/3PL)
Distributor Margin £10,500,000
£468,000 Insurance & Fumigation £439,442
£30,328 £158,156 £108,000 Cust. Service/Clearance
£622,800 £141,200 £180,000 £30,000 Handling & Other £320,000
£2,407,800 £1,323,528 £454,933 £0 £138,000 £0 £4,324,261 £13,018,042 £478,600 £12,539,442 £0 £0 £0
£51,012.71 £34,921.58 £9,889.85 £153.33 #DIV/0! £130.86 £393.94 £287.62 #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Logistics scope

Storage and Transport---- but is it that simple???

 Raw material
 Wrapping material
 Finished goods
 Waste handling- briquet/reuse of tobacco c48
 Export
 Import
 Bonded facility
Time and space is money

 Warehouse (open space at top & Gangway)


 Loading in Trucks
 Quality of product
 Safety of individuals
 Maintenance of equipment and stock count
Vertical warehousing spacing +40%
space
Truck & container loading

 Global project: 112 C48 in HC container


- Maximize space utilisation in High Cube Container
- Loading pattern change: from 6 C48 per row to 7
- For 200kg C48:
+16.6
2.19m % 2.59m

19.2 tons 22.4 tons

- Saving potentials:
- +16,6% load transported per container
- 14% savings on transport spend
Opportunities to be investigated
New observation – not
 Despatch from Dhaka to presented during meeting
distributors:
- 8 people to load a truck
- 6 inside the truck
- 2 outside
- Workload: the pallet is disassembled and
reassembled at least 3 times
- Proposal:
- Put pallet on rollers:
- If manually done, might required more than one
operation, but the 2 people outside will not have
to disassemble any pallet
- Could be done with scissor lifter:
- small investment
- Once the pallet on roller, we would need only 2 people inside the truck
Opportunities to be investigated
New observation – not
 Warehouse optimisation: presented during meeting

- Dhaka: FG = 10’ WH area


- Today:
- 5 pallet spaces
- 3 layers because top position cannot get 4
- Tomorrow:
- 4 pallet spaces (don’t use the top one)
- 4 layers per pallet
- Results:
- 16 layers on 4 pallets vs 15 on 5 pallets
- +7% space utilisation

- To use the top position = daily management to be put in place at pallet


build position – lot of space for information board
Opportunities to be investigated

 Warehouse optimisation:
- Dhaka: FG
- 2 formats only of Master cases
- 2 size pallets
- Pallets only used internally

- Today: 25 cases per pallet


- Project: 28 cases – WIP

- Work on the palletisation:


- Potentially using wider pallet (5cm)
- Stack Pattern:
- Taking into account new standard
- Cigarettes need to be Horizontal
Export Import

 Knowledge can save cash and hassle


 HS code can make a difference
 Mode of transport
 Cross usage of vehicles with other industries and
products
 Thank you

Вам также может понравиться