Supply Chain management of Rajanigandha Melamine and Plastic Company

1. Presentation on Supply Chain
Management of
Rajanigandha Melamine and Plastic

2. 
University of Dhaka
Department of
International Business

3. 
Member List
Business Dynamics
Name ID
Md. Nurul Hudda 253
Al Amin 255
Rabiul Hasan 256
Md. Fahad Hossain 258
MD. Shahriar Sharif 262
Md. Abir Hossan 271

4. 
 Company Introduction.
 Supply Chain Drivers of the Company.
 Explanation of total supply chain system.
 Problem identification.
 Recommendation.
Overview of the Presentation

5. 
 Rajanigandha melamine and plastic was established in
1991.
 The founder is MR. Montu Rahman.
 Situated at 123 Becharam Deori, Chawkbazar, Dhaka.
 It is a manufacturer, Distributor and retailer.
Company Introduction

6. 
Supply chain drivers of the
Company

7. 
Facilities
 Single manufacturing site.
 Three Storage sits.
 Centralization of demand due to closer facilities.
 Flexible production capacity focusing on products.
 Positive externality facility.

8. 
Inventory
 Molding powder.
 Shining powder.
 Printed paper.
 Maintains minimum 500 sacks of molding powder.

9. 
Transportation
 Inbound Transportation
Loading
materials on
ship
Unloading
on trucks
Transportin
g by trucks
to factory
Materials
carried to
factory

10. 
 Information
Marketing
managers
advice
Production
Decisions

11. 
 Sourcing:
 Imported raw material.
 In house production.
 Supplier efficiency.
 Reduction in lead time

12. 
 Pricing:
 Providing products in cheapest rate.
 Sale on credits.

13. 
Supply Chain Process Cycle
Rajnigandha Melamine Ltd
Pull
Processes
Push
Processes
Customer Order Cycle
Replenishment and
Manufacturing Cycle
Procurement Cycle
Customer
Order
Arrives

14. 
Distribution Network Design
Manufacturer & Retail Storage With Customer
Pickup
Consumers
Independent
Retailers
Distribution
Center
Factory
Figure - Distribution Network Design

15. 
Performance Characteristics
Cost Factors Performance
Inventory Very high inventory cost. warehouse costs
240,000 per year.
Transportation Low transportation cost . Customers pick up
products from store. In some cases
Rajnigandha only gives cost of loading on
vehicle.
Facilities and
handling
Facility costs are:-
o Factory: 450,000 tk per year.
o Distribution Center: 120,000 tk per year
plus tk 6,000 tax.
o Warehouse: 240,000 per year.
Information No information structure is required.
•Directly from customers or through retailers

16. 
Service Factors Performance
Response time Same-day pickup
Product variety Product variety is low.
Product
availability
Product is available every time.
Returnability Returnability easy. Customers just
bring the product in the store.
Performance Characteristics

17. 500 sacks of moulding compound as safety stock
Most important and Class A raw material in
money value is moulding compound.
Control of Inventory of Raw Materials
ABC Analysis
Materials Money Value Class
Moulding
Compound
141,000,000 A
Shining
Powder
113,000 B
Printed Paper 39,000 C
Packaging 60,000 C
List of raw
materials as of
ABC analysis:

18. 
 Weak information System
 Less interaction with customers
 Research & Development
 Sales related problem
 Faulty product
Problem Identification

19. 
 Collaboration with supply chain partners.
 Integrating Information network System.
 Creating a Customer base.
 Utilization of the resources.
 Managing the account receivable.
Recommendations

20. 
Thank You