Supply Chain Management in ACI Premio Plastic

This report provides an overview and assessment of the ACI plastic products's manufacturing supply networks' performance measuring systems. It discusses the various components of the supply chain, such as suppliers, distributors, retailers, and customers. It also highlights the strategies adopted by ACI Premio Plastic to maintain good relationships with their suppliers and retailers.

Supply Chain Management
A supply chain is a system of businesses, organizations, technologies, processes, activities,
information, and resources used to move products from a supplier to a customer. It includes
everyone who is directly or indirectly involved in completing a consumer request. Natural
resources, raw materials, and components are transformed through supply chain operations into a
finished good that is shipped to the final consumer. Supply chain management plays a vital role
in any organization. But due to the complexity of these systems, selecting effective supply chain
performance measurements can be challenging. This report provides an overview and assessment
of the ACI plastic products's manufacturing supply networks' performance measuring systems. In
order to run their business and provide value to their customers, ACI also maintains some form
of supply chain management activities.
Supplier Raw
Materials
Process
System
TransportDistribution
ZoneDistributor
Wholesaler Retailer Customer

Warehouse: They have their main warehouse besides their factory. In Bangladesh, they also
have five distinct division warehouses. They are located at Narayangonj, Bogura, Magura,
Gazipur, and Chittagong. They supply their products to their authorized distributor and gives
access to their merchandise.
Processing center: Once raw materials have been procured from suppliers then they start their
production processing. All the components are lifted to the machine once the raw material
mixture has been checked appropriately.
Distributor: To distribute the product to a different retailer ACI has around 342 distributors in
all over the Bangladesh.
Retailer: ACI has also potential retailers to make products available for the customers.
Supplier: For ACI plastic, suppliers play a major role. They have three primary suppliers to
collect their raw materials. Such as: UAE, India, Korea. Among these UAE is the top supplier for
ACI Premio Plastic. They collect almost 80% of their raw materials from UAE. To collect these
huge raw materials and maintain this efficiency they have specific departments for each work.
Transportation: At present ACI Premio Plastic has no specific private transports to delivers
their products. So they rent or hire trucks and vans from other business organizations for
delivering their products to distributor’s door and warehouse centers.
Customer: Customers can easily purchase their products for retailer shop, since ACI’s potential
retailers make products available for the customers.
Location: For ACI river side is best suited. Because their all raw materials are come from UAE,
India & Korea by ship through Shitalakkha and ACI Premio Plastic’s Narayangonj branch is
located beside the Shitalakkha river.
Bullwhip:
It is a demand projections lead to inefficiencies in the supply chain, which is a distribution
channel issue. When retailers are highly responsive to customer demand, which in turn raises
expectations about it and has a domino effect throughout the chain. ACI Premio Plastic produce
more than the demand so they don’t face bullwhip effect yet. They always produce extra. If the
demand is 1000 they produce 1200. So they always have the extra back up.

Maintaining Good Connections:
Maintaining a good relationship with the suppliers is always an important part for any
organization. It is always not easy to maintain but ACI Premio Plastic maintaining good
relationship with their suppliers and customers. A healthy relationship with suppliers is a vital
part of business success. To maintain this the following measures ACI adopted:
Program Arrange: ACI host a program every year with their potential suppliers and retailers to
keep in touch with them and to build a good relationship. In this program if their customers face
any issue with their purchase or if they have any suggestion they can share in this program with
ACI's employees and managers. ACI always encourage their customers so that they can share
their opinion.
Provide Gifts: nowadays just wishing is not enough to win someone’s hurt. We need to give
some gifts. ACI provide gifts to their suppliers and retailers based on their need, based on
something that is valuable for them. This culture make a good connection between ACI and their
consumers.
Keep in Touch: ACI communicate with their customers to build a good relationship. They are
aware about how important it is for their business to communicate frequently with their suppliers
and retailers.
Pay on Time: Buyers and suppliers can negotiate for favorable payment terms before placing an
order, but once the order is placed, don't renege or attempt to change the rule. ACI always pay on
time for making a good relationship with the suppliers.
Return Policy: They are the only company in Bangladesh as far as we know who accept broken,
unsold, and defected products from their suppliers and retailer. For this they don't charge any
cost and this policy helps ACI to win their suppliers and retailers heart.
There are many more strategies that ACI follow to make a good relationship with their suppliers
and retailers. They communicate with them frequently so that if their suppliers and retailers face
any sort of problem they can fix that issue and thus they maintain good relationships with their
suppliers.