University of Barisal

Department of Marketing

An Assignment on

Supply Chain Management of Guava Juice

Course Name: Supply Chain Management

Curse code : MKT 325

Submitted To: Bankim Chandra Sarker

Lecturer
Department of Marketing
University of Barisal

Submitted By: Authentic

Id No. Name Remarks

16 MKT 014 Jannatul Ferdous Anonna

16 MKT 022 Emon Sheikh

16 MKT 029 Lamia Islam

16 MKT 032 Tania Akter

16 MKT 042 Hemonta Biswas

16 MKT 058 Muhammad Bahauddin Kabir

Date of Submission: 14 November, 2018
 Synergy Guava Juice
Industry Ltd

Company name: Synergy Guava Juice Industry Ltd.

Product name: Guava Juice

Location: Kashipur, Barisal

Types of organization: Partnership Business

Web Site: Under Construction

Slogan: Taking Juice, Be fresh

Introduction

In Bangladesh the guava juice industry will be a prospective business because of the availability of
raw materials. That’s why our thinking goes to this prospective new sector. Our company “Synergy
Guava juice Industry Ltd.” will be produced guava juice which has a great opportunity to capture the
present juice market because of its nutritional value. This business plan shows the foresightedness of
us. It describes what will be done and how the plans will be successfully implemented. Every
product in modern marketing era needs a proper marketing and promotion plan. So our new product
of Guava juice do needs a proper marketing and promotion plan. Because, these two plans are the
best way to get best-selling and consumer preferences in comparison with other products in the
market. A good marketing and promotion plan always forecasts the future activities with proper
judgmental knowledge. Better prediction ability of the marketer heavily influences the success of the
product and way to survive in the modern competitive market.

Business Objectives:

 Become as the best New Juice Industry in Bangladesh

 Improving the customer satisfaction through the good quality of products
 The creation of unique, innovative and healthy products that will differentiate Smooth Juice
from local juice shops
 Four new outlets in next five years in other city of Bangladesh

Location & Layout

Our manufacturing plant will be located at Kashipur. But we will conduct our business operation in

Dhaka City by all cities in our country. Office location and layout image as follows:
We will purchase land for our manufacturing and warehouse. The building cost will be 2500000 Taka.
The project rent for our outlets and office space will be added according to project plan.

Marketing Strategies

Marketing Objectives:
Image ourselves as a brand with competitive edge-
 To offer continuous value added products to our customers.
 To achieve our financial target.

 Set a benchmark in industry as a cost leader through minimization of waste and improve
performance.
 To effectively segment the market.
 To better position our market offerings.

 To respond quickly to customer problems.

 To build profitable customer relationships.

 To increase sales volume by reducing cost.

 To effectively undertake budget allocation.

 To control over the inflow and out flow of finance and increase the market share.

 To reach the break-even point within shortest possible time.

Strategic relationships

In order to increase the market share and brand equity we will form strategic alliances with
the following parties in the domestic market:

 Supplier of raw materials.

 Mass media.

 Government.

 Law enforcement agency.

Target Market

A marketer can rarely satisfy everyone. Not everyone likes the same thing. Therefore marketers start
by dividing up the market into segments. They identify and profile distinct group of buyers who
might prefer or require varying product and service mixes by examining Demographic
Psychographic, Geographic, Technological and Behavioral differences among buyer. Then the
marketer designed which segments present the greatest opportunities, which are its Target markets.
We have segmented our total local market into four parts, and our main target is to enter into this
segmented market and satisfy all the consumers. Our target market is total local market. For targeting
the potential customers of our products we want to follow more than one segmentation bases,
namely: Income (affordability), Occupation (degree of business in work), and Country region (Dhaka
City).

Definition of Supply Chain Management

“A supply chain is a network of manufacturers, suppliers, distributors, transporters, storage

facilities & retailers that perform functions like procurement & acquisition of material,
processing &transformation of the material into intermediate & finished tangible goods, &
finally, the physical distribution of the finished goods to intermediate or final customers.”

A firm’s supply chain includes both its upstream supplier networks & the downstream
distribution networks, apart from its internal functional departments
Origin of Supply Chain Management
Supply Chain Management existed for some time before it started to be used as a description of any
computer system. The Japanese work out the concept of JIT in electronics & automobile industries
which has brought up revolution in the field of production & inventory control due to “pull system”

Introduction
Supply Chain Management is the network consisting of Customers, Retailers, Distributors,
Manufacturer and Supplier.

It is a network of organizations that are having linkage both upstream & downstream in different
process & activities. Every interface in the supply chain represents movement of goods,
information flow, transfer of documents and purchase & sale.

Flows in Supply Chain Management

Material flows:
Involve physical product flows from suppliers to customers through the chain, as well as the
reverse flows via product returns, servicing recycling & disposal.

Information flows:
Involve demand forecast, order transmission & delivery status reports.
Financial flows:
Involve credit card information, credit terms, payment schedules & consignment & title ownership arrangements.

Types of Supply Chain Management

Pull-based SCM:
Pull-based SCM is also known as modern approach to SCM. It is known as demand supply
network. In this approach, the actual consumption pulls distribution, which in turn pulls
production, in term pulling material supply.

Push-based SCM:
Push-based system is also known as traditional approach to SCM. In this approach, materials
& products are flowing from supplier to consumer, via production & distributor unit.

Upstream & Downstream in SCM

Upstream:
Order sent by customer through payment received by suppliers.

Downstream:
Order received by supplier through payment sent by customer.
Components of Supply Chain Management
A Supply chain may consist of a variety of components depending on the business model
selected by a firm. A typical supply chain consists of the following components: Customers

Distributors/Retailers
Manufacturers
Suppliers

CUSTOMERS
The customer forms the focus of any supply chain. A customer activates the Processes in a
supply chain by placing an order with the retailer. The customer order is filled by the retailer,
either from the existing inventories, or by placing a fresh order with the wholesaler/manufacturer.
In some cases a customer by passes all these supply chain components by getting in touch with
the manufacturers directly. For example: In the case of an online purchase of a computer from
dell computers, the customers place an order directly with the manufacturers.
RETAILERS/ DISTRIBUTORS
The retailer acts as a link between the customers and the distributors/ manufacturers. He caters
to the needs of the customer by making the products available at his store. As part of this
process, retailer places order with the manufacturers to replenish the stock.

MANUFACTURERS
The manufacturer plays a key role in deciding the structure of a supply chain. Depending on
the market situation, the manufacturer either uses the pull or the push strategy to generate
demand required for the movement of products in the supply chain. The manufacturer then
plans for a production schedule depending on the resultant demand.

SUPPLIERS
Suppliers facilitate the manufacturers Production process by ensuring continuous supply of raw
materials. Manufacturers place orders with suppliers on the basis of forecasted customers demand.
Since it is very difficult to forecast demand accurately, manufacturers try to integrate their processes
with those of the suppliers to be in a better position to respond to fluctuation in customer demands.
Suppliers help manufacturers to decrease their inventory levels by arranging for just–in–time supplies

SCM includes the following functions

Supplier management:
The goal is to reduce number of suppliers & get them to become partners in business
relationship. The benefits are reduced Purchase order (PO) processing cost, increased numbers
of purchase orders processed by fewer employees & reduced order processing cycle times.

Inventory management:
The goal is to shorten the order-ship-bill cycle. The inventory management solution enables the
reduction of inventory levels, improves inventory turns & eliminates out-of-stock occurrences.
Distribution management:

The goal is to move documents related to shipping (purchase order, advanced ship notices etc.).
Paperwork that typically took days to cycle in the past can now be sent in moments & contain
more accurate data, thus allowing improved resource planning.

Channel management:
The goal is to quickly disseminate information about changing operational conditions to trading
partners. Electronically linking production with their international distributor & reseller networks
eliminates thousands of labor in the process.

Payment management:
The goal is to link the company & the suppliers & distributors so that payments can be sent &
received electronically.

Financial management:
The goal is to enable global companies to manage their money in various exchange accounts.
Companies must work with financial institutions to boost their ability to deal on a global basis.
Sales force productivity:
The goal is to improve the communication & flow of information among the sales,
customers & production functions.

Objectives of Supply Chain Management

 The prime objective of SCM is to reduce or eliminate the buffers of inventory that exists between
organization in a chain through the sharing of information on demand & current stock level.
 Solving supplier's problem and beyond his level.
 Customers service performance improvement.

 Reduction of pre and post production inventory.

 Minimum total cost of operations & procurement.

 Product quality control.
 Achieving maximum efficiency in using labour, capital & plant throughout the company.

 Flexible planning & control procedures

Supply Chain Management & Vertical Integration

SCM is not the same as vertical integration. Vertical integration normally implies ownership of
upstream suppliers & downstream customers. Earlier vertical integration used to be desirable
strategy increasingly the companies are focusing on their core business i.e. activities that they
do really well & where they act a differential advantage.
SCM raise the challenges of integrating & coordinating the flow of material from multitude of
suppliers & similarly managing the distribution of finished products by way of multiple
intermediaries. Transferring cost upstream & downstream leads to logistics “MIOPIA” as all
cost ultimately will make way to the final market place to be reflected in the price paid by
the end users.

Advantages of Supply Chain Management

Benefits to the Customers:

The customer will get benefits by dealing with a well-managed vendor due to an effective supply
chain organization in place are as follows: Natural benefits will come due to consideration of the
problems supplier & further back supplier and their involvement in the process of developments.

Improved customer service through fewer shortages.

Improved product cost.
Better delivery performance.
Quicker response to changes in demand.
Optimal purchase cost due to possibility of long-term purchase contracts
Benefits to the Company:
Reduction in tied-up capital & administrative costs due to reduction/ elimination of inventory at all levels.

Reduction in time & money lost through production line stoppage.

More flexibility in planning.
Sustained growth of sales & company business.
Increased shareholder value
 Supply Chain Management of Guava Juice

SMC of Guava Juice

Guava Juice
Supply Chain