Research on Supply Chain Management of Food

& Beverage

Square Food & Beverage Limited

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 East West University

Title

Supply Chain Management of Square food and Beverage limited

Submitted To
Md. Anamul Hoque
Assistant Professor,
Dept. of Business Administration,
East West University, Aftabnagar, Dhaka

Submitted By
MD. Arafat Rahman
ID-2017-1-10-166

Course Code: MKT418

Course Title: Supply Chain Management
Section: 01

Submission Date: September 23, 2020.

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 Letter of Transmittal

23 September 2020
Md. Anamul Huq
Assistant Professor,
Department of Business Administration,
East West University,
Aftabnagar, Dhaka 1212

Subject: Application for accepting the term paper.

Sir,
Here is the work you set me to do. The work on supply paper has been completed with the
knowledge I have learned from the “Supply Chain Management” course.
This report covers the supply chain management of Square Food and Beverages Limited. I will
be happy if you read the report carefully and will try to answer all the questions you have about
the term paper.
I have tried my best to make this term paper as meaningful and accurate as possible. But if you
need any help with the interpretation of this report, please feel free to contact me. Thank you for
giving me the opportunity to develop knowledge about this aspect. If you are kind enough to get
my term paper and forgive me for any errors and mistakes, I would be extremely encouraged.

Thanking you
Yours obediently,

MD.Arafat Rahman
2017-1-10-166

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 Acknowledgement

First and foremost, I express my gratitude to the Almighty, who helped me with His power, gave
me the wisdom and patience to complete this word letter. Additionally, I would like to thank my
course instructor. Anamul Haque”, who believed that I could finish this term paper in time. His
ethical guidance, endless efforts and pleasing encouragement have made me successful in this
research paper. In addition, I am grateful to my classmates and friends for their help and support.
Finally, I would like to thank my parents and other family members for their support, support
and sacrifice during the study period.

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 Executive Summary

This report focuses on the supply chain management of Square Food and Beverages Limited.
This company belongs to the food and beverage industry of Bangladesh which is one of the
largest industries among the rest. The purpose of this report is to analyze the supply chain
practices of Square Food and Beverages Limited. This report is based on primary and secondary
information. Primary information was collected by agency profiles and secondary information
was collected from journals and websites.

According to the data, I have seen that Square Food and Beverage Limited has a competitive
strategy to provide quality products at reasonable prices as well as ensure product availability.
The Square Food and Beverage business has been working for a long time to make the demand
for food and beverages quite stable and also the supply system very stable. The company ensures
its production efficiency and is responsive enough to make the product available. All facilities
owned by the corporation give them full control of the process. They have their own transport
fleet which allows them to operate frequently and support competitive strategies. A major
strength of Square Food & Beverage is that it has more than twenty-one depots across the
country. The company invests heavily in their supply chain management to be more accurate on
responsiveness. One of the biggest driver behind the success of the square is the supply chain
strategy.

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Table of Contents
Introduction ................................................................................................................................................ vii
Origin of the report ................................................................................................................................. vii
Objective of the report ........................................................................................................................... vii
Methodology........................................................................................................................................... vii
Limitation of the Study .......................................................................................................................... viii
Literature Review ................................................................................................................................... viii
Supply Chain Management .......................................................................................................................... ix
Company Profile............................................................................................................................................ x
Mission ...................................................................................................................................................... x
Vision......................................................................................................................................................... x
Objective ................................................................................................................................................... x
Evolution of Supply Chain ............................................................................................................................ xi
Competitive Strategy and Supply Chain Strategy .......................................................................................xiii
How they achieve Strategic Fit ...............................................................................................................xiii
Implied Demand uncertainty spectrum ..................................................................................................xiii
Supply chain capabilities .........................................................................................................................xiv
Achieving Strategic fit ............................................................................................................................. xv
Supply Chain Drivers Framework ................................................................................................................xvi
Distribution channel................................................................................................................................... xvii
Recommendation....................................................................................................................................... xvii
Conclusion .................................................................................................................................................. xvii
REFERENCES .............................................................................................................................................. xviii

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 Introduction

Origin of the report

This report has been prepared to conduct a research on a summary of Square Food and
Beverages Limited of Bangladesh as part of fulfilling the required term of Hon'ble Faculty of
East West University Md. Anamul Haque. I thank him a lot for allocating this kind of work.

Objective of the report

The main purpose of the study is to learn how to prepare a term paper. My esteemed faculty
entrusts me with the responsibility of preparing this report so that I can effectively perform in the
job market and enlighten the goodwill of my faculty as well as my university. Other purposes of
this appointment are:

• How supply chain management is practiced.

• The overall idea about the supply chain practices of the food and beverage industry in our
country.

• The supply chain process and strategy of Square Food and Beverage Limited.

Methodology

This term paper includes both qualitative and quantitative data. First, I have gathered the
necessary information from secondary sources to create this report. After collecting secondary
information.

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Primary Source: The primary source of information is-

• Observation

Secondary Sources: The secondary source of information is-

• Website of Square Food and beverage Ltd.

• Internet surfing and annual report of the company.

Limitation of the Study

As a student of faculty of Business Studies, this is mandatory for making a report on different
courses. Although I have completed the report still have some obstacles in preparing this report:

• Lack of practical experience

• Lack of sufficient books & journal

• Shortage of time

• Individual submission and presentation are really tough to maintain to make a report.
Literature Review

Mission (We want to be the world class food manufacturer in Bangladesh by ensuring the quality
products and customer service inherent with the latest technology and motivated staff of Square
Group). Thus, their goal is to create employment and gain respect and self-esteem for
competitors through profitable enterprise managers and distributors. Each of them has their own
responsibilities and obligations.

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 Supply Chain Management

During this time of business, all companies are centered around connecting around the world as
they try to interface with corporates and different organizations. In a rapidly evolving market,
companies never consider working alone. Perfectly maintain their relationships productively
with different organizations using disciplined executives. Combining all assemblies legally or
implicitly to satisfy a customer’s request in a striking chain. The chain includes manufacturers
and suppliers, yet additional carriers, stockrooms, retailers and even clients themselves (Chopra
and Mandel, 2007). There are countless definitions for making a board glamorous. The Global
Supply Chain Forum was instrumental in advancing this article with the full range of reasons and
clear goals, objectives, and destinations mentioned earlier: "Graceful Chain Management adds an
incentive for clients and various partners" (Lambert et al., 1998). All things considered; the
achievement of a solitary business usually depends on the ability to incorporate its business
relations firm. The competition between the various organizations can be traced back to the
chains where the organization contributed. In this age, it is no longer against the organization, it
works with the flexible discipline of one organization and the merciful chain of another
organization.

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 Company Profile

Square today symbolizes a name - state of mind. But the journey towards its growth and
prosperity is not a bed of roses. Since its inception in 1956, it has been associated with one of
Bangladesh's leading organizations into Square Group of Industries, which has held a strong
leadership position in Bangladesh's food and beverage industry since 2000 and is now on its way
to becoming a high-performance global player.
Square Food and Beverage Limited is one of the largest foods and beverage companies in
Bangladesh and has consistently topped all national and multinational companies since 2000.
Square was founded in 1996, transformed into a public limited company in 1991, and listed on
stock exchanges in 1995. Square Group had a turnover of about 8.52% (July 2017-June 2018)
with a market share of about 16.95% with a market share of about 16.95% was 45.88 billion

(US$ 540 million). Square Food and Beverage Limited has expanded its range of services

toward global market highways. Square Food and Beverage Ltd., international quality products
are being exported to 30 countries. Dedication to quality, innovative products, customer service
and reasonable prices have given the company a unique position in the food business.

Mission
"Our goal is to provide and deliver quality and innovative healthcare relief to the people, maintain strict
ethical standards in business management and ensure benefits to partners, partners and the wider
community."

Vision
We see business as a means of greater material and social well-being for investors, employees and
society, and as part of the process of human civilization leading to the transfer of wealth through
financial and moral gain."

Objective
"Our objectives are to conduct transparent business management on the basis of market system
within the legal and social framework with the aim of achieving the mission reflected by our
vision.

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 Evolution of Supply Chain

The supply chain has grown at different times in history to meet the different needs of human
culture, to use common resources, and to empower individuals to exchange and productively
share productively. SCM is an idea, the essential purpose of which is content sourcing, flow and
controls to use a whole framework approach on different power and different degree providers.
Either way it spreads over a long period of time. supply chain is not fixed; This shift occasionally
depends on different variables. The supply chain that we observe and practice today is rooted in
past practices and ideas. Thus, the combination of both modern designing and activity research
has their underlying foundations that it is important to know how progress has been made in
understanding the criticism of supply chain disciplined executives. Frederick Taylor, who
formulated the principles of supply chain management in 1911 and is seen as the father of
modern building, failed his initial experiment in the most efficient way to improve the cycle of
manual stacking. In the 1940s, due to the unforeseen necessity of World War II, researchers
began to probe investigations into issues identified with military supplies when works began to
be studied. Mechanical design and work research have tried to maintain each individual
personality, while their numerous extraordinary victories occurred when used in an integrated
manner to solve problems related to supply, discipline and tragedy. Increasingly it has been
identified by the industry as the Graffiti Chain Building. In the 1940s and 1950s, the required
spotlight was creating costs that reduced costs and expanded the volume of business. Prior to the
1950s, coordination was seen as a military term characterized by supply chain, support, and
transportation of military workplaces, hardware, and staff. This mixture has not yet been seen as
a key force. Nevertheless, before this time a few columnists talked about the benefits that any
form can do with each other and the benefits that can be gained by getting the best thing in the
perfect spot at the right time for the firm. In the 1950s, the board expanded to vehicle boards
with the improvement of supply holders, including ships, arrangements and trucks to handle
these intruders. This is necessary for the globalization of adaptive chains which will come much
later. Although the terms ‘warehousing’ and ‘exchange content’ are used to describe a number of
critical numbers in this endeavor, this work can be seen as a necessary application rather than a
modern office’s own application. This stage was not an unusual educational course focused on
coordination or promotion. Individual exercises, for example, transportation and buying were the

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primary core interests. In the middle of the twenty-first century, data flexibly transformed the
primary goal of discipline of executives. The researchers felt that SCM should be data driven.
Companies began offering a substantial amount of ongoing correspondence and more on data
and innovation to improve business insights. There are numerous positions during this period, for
example, the Board of Transportation, stockpiling and stock administration, arranging for the
execution manager to be promoted and the board to be executed. Currently, we can say that SCM
is characterized by the recognition of the combined administration of the administration
throughout the work and the inclusion of item stream arrangements among the channel
individuals. While the concept is strong and the benefits are spontaneous, cutting costs is not
new with many other frameworks moving forward. The adjustments are currently being seen as a
subset of the SCM. The field of supply chain is kept within the limits of firm internal power and
is fundamentally concerned with the organization movement, which was not the first aspect of
thinking. Rather than a combination of international and classified administrations appears
within the domain. At this point, coordination, integration, relationship building and
collaboration across entire supply channels.
Stage Time Period Philosophy Key Driver Key Performance
Metric
1 Early 1980s Product Driven Quality
Inventory turns
Production Cost

2 Late 1980s Volume Driven Cost

Throughput
Production
Capacity

3 Early 1990s Market Driven Product Availability

Market share
Order fill rate

4 Late 1990s Customer Driven Lead Time

Customer
satisfaction
Value added
Response time

5 Early twenty-first Knowledge Driven Information Real-time

century communication
Business
intelligence

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 Competitive Strategy and Supply Chain Strategy
Square Food & Beverage Ltd.'s competitive strategy is to provide quality products at reasonable
prices and ensure product availability throughout the country. In order to achieve a competitive
strategy, their supply chain strategy is to be effective so that the products are reasonable for the
consumers. In this case of efficient delivery. They are highly responsive in the sense that they ensure
that their products are available across the country.

How they achieve Strategic Fit

Implied uncertainty
Food & Beverage faces a lot of demand in our country. But Square food and beverage products
also do face uncertainty in terms of demand. It actually depends on the situation .They store very
few products but they produce more based on the situation and try to meet the demand

Implied Demand uncertainty spectrum

E.g.: For their regular product like Ruchi ChanaChur. it’s easy to predict the demand but for
other products it’s not always certain.

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 Supply chain capabilities

They are responsive to the delivery period but they follow the efficiency in production. They use
their own transport in distribution which shows that they are more focused on being responsive
on demand. They use different production sites for different products they use less inventory
which shows their production efficiency.

E.g.: Responsive for their regular product like Ruchi Chanachur it is more efficient and less
expensive on the other hand other products are highly responsive and expensive for this reason I
see in the spectrum of responsiveness that Ruchi Chanachur is more predictable and efficient as a
new product is responsive due to their new innovation.

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 Achieving Strategic fit

Square food and beverages are efficient in limited production and responsive to distribution
conditions. In order to achieve competitive strategies their supply chain strategy must always be
highly responsive to make their products available. Their supply chain strategy is somewhat
affordable so that the products make sense to the consumers. So overall they are efficient and
somewhat responsive.

e.g. They have specific needs for their regular products like Ruchi Chanachur so they are
proficient in this method. However, they are more responsive to new branded products because
that product has uncertainty and these branded products have higher margins.

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 Supply Chain Drivers Framework

Advantages: Decentralized facilities to ensure product availability They retain additional

capacity to respond to any fluctuations in demand. Each unit of manufacturing facilities on
product.

List: Most lists are stored at the Central Distribution Center (CDC) which makes them somewhat
efficient.

Transportation: They have their own fleet that gives them flexibility and makes them
responsive.

Information: They use information to enable uninterrupted and real-time communication.

Sourcing: They outsource bulk raw materials to be efficient and to ensure economies of scale.

Pricing: They maintain a fixed price for their product.

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 Distribution channel

Square Food and Beverage Limited has multiple production units in different locations across the
country. The finished products of the factories are transferred to a central distribution center.
From this central distribution center, the products are delivered to depots located in different
parts of the country. They have a total of 21 depots all over Bangladesh. Products from these
depots are delivered to local stores and retailers in its operational area using their own
transportation facilities.

Recommendation
They use their own customized supply chain management system. This system is very efficient
but, they should link their supply chain with local competitors supply chain, so that they can get
more accurate supply chain this will help them manage the inventory.

Conclusion
It is clear that in the food and beverage industry, Square 's food procurement and supply chain
played an important role in making it efficient. A successful competitive strategy is not just
successful enough, it needs a well-connected strategy for the supply chain to achieve the
competitive strategy. Square was able to build a supply chain that was in line with its plan for
competition. The organization is trying to broaden it.

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 REFERENCES

Ballou, R. H. (2007). The evolution and future of logistics and supply chain management.
European business review, 19(4), 332-348.

Chopra, S., & Meindl, P. (2007). Supply chain management. Strategy, planning & operation.
In understanding the supply chain.

MacCarthy, B. L., Blome, C., Olhager, J., Srai, J. S., & Zhao, X. (2016). Supply chain
evolution–theory, concepts and science. International Journal of Operations & Production
Management, 36(12), 1696-1718.

Min, H. (2015). The essentials of supply chain management: New business concepts and
applications. FT Press

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