Supply Chain Management in Renata Limited
Prepared By MD. ASHRAF UDDIN(61426-19-036)
Department of Management and Information Systems
University of Dhaka
Executive Summary
Supply chain concept is extended to the activities started from the raw materials suppliers through the organization to the end consumer. Once thought only as the Physical Distribution Management (PDM), that is the logistics management, has now been the part of Enterprise Resources Planning (ERP). From a set of activities is now considered a part, module, of an integrated system.
There has been a change in supply chain management thinking from a push oriented supply chain that emphasizes distribution of a product to passive customers to a pull-oriented supply chain that utilizes the supply chain to deliver value to customers who are actively involved in product and service specifications. Electronic communications have played a major role in facilitating new models of supply chain management. Technology applications that have facilitated supply chain management are the E-mail, Intranets, Extranets, Electronic Data Interchange (EDI) and lately interfacing of ERP system with B2B intermediary sites or Exchanges.
Our studied company, Renata Limited, also has got a Distribution Channel Management (DCM) that works in the downstream supply chain arena while upstream one is still managed conventionally with the help of mail or e-commerce solution. Over competition in the industry and the cost leadership approach have been making the pace of change a bit slower and they are still being led by the existing system, we can say legacy system. They still maintain a good amount of safety level that cost time and hazards. But we see some improvement in database management that works in downstream arena is helping them a lot. Since the market driving force is the marketing to doctors and chemist, any sophisticated system, in their words, is only contributing to curtailed profit. But some