Ahsanullah University: PRAN Foods Ltd. Supply Chain Analysis Report

This report provides a comprehensive analysis of the supply chain management (SCM) system of PRAN Foods Ltd., a major food and beverage company in Bangladesh. The report begins with an introduction to supply chain concepts, emphasizing the interconnectedness of various entities from suppliers to customers. It then delves into the importance of effective SCM, highlighting its role in cost reduction and profitability enhancement. The study's objectives include understanding PRAN's SCM processes, minimizing costs, maximizing customer service, and identifying key supply chain drivers. The report examines PRAN's approach to SCM drivers, including facilities, inventory, transportation, information, sourcing, and pricing. It provides insights into how PRAN manages its supply chain to optimize efficiency and responsiveness, including its strategic locations, inventory management practices, and transportation methods. The report also covers the overview of PRAN Foods Ltd., its historical background, and its operational strategies. Finally, the report concludes with a discussion of how PRAN manages its SCM drivers, including its facilities, inventory, transportation, information systems, sourcing strategies, and pricing policies. It highlights the company's efforts to balance responsiveness and efficiency in its supply chain operations.

Ahsanullah University of Science and Technology
Assignment on “Supply chain management system of PRAN Foods Ltd.”
Submitted To:
Mohammad Hafez
Assistant professor
School of Business
(BBA program)
Submitted By:
Md Sajjad Hossain Kurban
ID: 170202077
Section: B
Year: 4th year 1st semester

Table of Contents
Abstract:......................................................................................................................................................3
Introduction:...............................................................................................................................................4
A supply chain is a group of suppliers that work together to generate a single product for a firm. The
chain is made up of nodes or "links" that can include various producers for parts, the finished product,
the warehouse where it is held, the distribution centers where it is distributed, and ultimately the shop
where a customer can buy it. The chain idea is crucial since each link is connected in a certain direction
and sequence, and you can't get to the next one without traveling via the previous one. Each connection
increases the amount of time and money spent, and may include labor, parts, and transportation. Every
product a firm sells may have its own supply chain, even if it may utilize some of the same suppliers
(leonard, 2020)............................................................................................................................................4
Importance of Supply Chain Management:.................................................................................................4
Objectives of the study:...............................................................................................................................5
Broad Objective:......................................................................................................................................5
Specific Objectives:..................................................................................................................................5
Supply Chain Management:........................................................................................................................5
Divers of Supply Chain Management...........................................................................................................5
Facilities:..............................................................................................................................................5
Inventory:............................................................................................................................................6
Transportation.....................................................................................................................................6
Information..........................................................................................................................................6
Sourcing...............................................................................................................................................6
Pricing..................................................................................................................................................7
Overview of PRAN Foods Ltd.......................................................................................................................7
How to manage SCM drivers by PRAN Foods Ltd.:......................................................................................7
How to achieve strategic fits.......................................................................................................................9
References.................................................................................................................................................11

Abstract:
The process of bringing a product or service to a consumer via a network of firms and suppliers
is known as the supply chain.
This co-relation presents Pran Foods Ltd. SCM tools and practices. Production management,
planning, design, and construction, as well as business drivers, are all essential components of
SCM. SCM, like other organizational disciplines such as structural or process engineering,
accounting, and materials management, has a champion who can promote ideas across
disciplines and organizational boundaries. Operating from a few locations and centralizing tasks
can help you save time and money. Stocking items in several places near consumers can help
boost response. Stocking goods in a few strategic locations may also result in cost savings and
economies of scale. This logistics of Pran Foods Ltd. is most commonly used by supply chain
management when importing or exporting materials or finished goods at the destination point.
However, there are three options for bringing or shipping goods: air, sea, and road. After
deciding which method is ideal for bringing the products, consider how urgent or emergence the
goods are, as well as the lead time, before deciding on the best method.

Introduction:
A supply chain is a group of suppliers that work together to generate a single product for a firm.
The chain is made up of nodes or "links" that can include various producers for parts, the
finished product, the warehouse where it is held, the distribution centers where it is distributed,
and ultimately the shop where a customer can buy it. The chain idea is crucial since each link is
connected in a certain direction and sequence, and you can't get to the next one without traveling
via the previous one. Each connection increases the amount of time and money spent, and may
include labor, parts, and transportation. Every product a firm sells may have its own supply
chain, even if it may utilize some of the same suppliers (leonard, 2020).
A supply chain involves a series of steps involved to get a product or service to the customer.
The steps include moving and transforming raw materials into finished products, transporting
those products, and distributing them to the end-user. The entities involved in the supply chain
include producers, vendors, warehouses, transportation companies, distribution centers, and
retailers.
 A supply chain is a network between a company and its suppliers to produce and
distribute a specific product or service.
 The entities in the supply chain include producers, vendors, warehouses, transportation
companies, distribution centers, and retailers.
 The functions in a supply chain include product development, marketing, operations,
distribution, finance, and customer service.
Importance of Supply Chain Management:
When supply chain management of a business is effective, profitability increases with cost
reduction. For an effective supply chain management, you require a lot of skills and expertise to
ensure every operation in the chain works properly. If a single chain fails, then cost increases that
lower the profitability of the business. So supply chain management is the most important part of
a business. Now let us learn different ways to improve the supply chain management system to
reduce cost and increase profitability.
 Improving Inventory Management
 Improve Supply Chain Management
 Reconsider Your Distribution Network

Objectives of the study:
Broad Objective:
To know the process at supply chain management of PRAN Foods Ltd. Company in Bangladesh.
Specific Objectives:
 To find out the way how to minimize cost
 Maximize levels of customer service/responsiveness
 To determine the drivers of supply chain of PRAN Foods ltd.
Supply Chain Management:
Supply chain management refers to the management of a product's or service's complete
manufacturing cycle, from raw materials through delivery of the end product to the customer. A
business establishes a network of suppliers (or “links in the chain”) to transport the product from
raw material suppliers to organizations that interact directly with customers (IBM, n.d.).
Divers of Supply Chain Management
The decisions you make about the five supply chain drivers will influence your supply chain
capabilities. Depending on changing business objectives, each of these drivers may be created
and controlled to emphasize responsiveness or efficiency. As you learn more about how a supply
chain works, you'll have a better understanding of the challenges it confronts and the talents it
need to succeed. To achieve those capabilities, adjust the supply chain drivers as needed.
The five drivers serve as a helpful foundation for considering supply chain capabilities. The mix
of responsiveness and efficiency that a supply chain can achieve is determined by the decisions
made regarding how each driver functions.
Facilities: Prioritizing responsiveness for the location driver frequently entails optimizing
convenience by creating a large number of sites close to client groups. Fast-food businesses, for
example, exploit location to be more responsive to their consumers by building many locations
in high-volume regions. Many locations help them to respond rapidly to consumer demand, but
having several stores increases operational costs.
Operating from a small number of sites and centralizing operations results in efficiency. E-
commerce merchants service worldwide markets from a few core sites, executing a wide range

of operations, as an example of location efficiency. While this makes each site more efficient, it
also makes them more vulnerable to interruptions, as the coronavirus epidemic demonstrated.
Inventory: Optimizing responsiveness typically necessitates stocking larger product levels and
at more warehouse sites when it comes to inventory as a driver. Unexpected changes in demand
may be handled quickly with efficient inventories. This technique, however, comes with greater
storage costs, which must be balanced against the benefit of global availability.
Inventory management efficiency necessitates a reduction in inventory levels for all goods,
particularly those that do not sell frequently. Stocking goods in only a few central distribution
hubs also results in cost reductions and economies of scale.
Transportation: Faster forms of transportation, such as air freight, provide for faster delivery
periods and more response flexibility, albeit they are generally more expensive. FedEx and UPS
are two firms that use transportation to deliver items within 48 hours, demonstrating high levels
of responsiveness in last-mile delivery.
Moving items in larger batches, less often, using bulk carriers such as ships or railroads,
increases transportation efficiency. When items come from a single distribution center rather
than many places, this mode of transportation is more efficient.
Information: As technology for collecting and distributing information gets more prevalent,
easier to use, and more inexpensive, information's potential as a driver grows. Analytics software
makes judgments based on internal and external data to improve the performance of supply chain
drivers. For maximum efficiency, your supply chain should gather and exchange accurate and
timely data created by the preceding four drivers in operation (Tagetik, 2021).
Sourcing: Sourcing is another important component of supply chain management. The source
denotes a specific location or business where things are obtained. Choose suppliers to provide
the goods and services needed to create the product. Then, establish processes to monitor and
manage supplier relationships. Key processes include: ordering, receiving, managing inventory
and authorizing supplier payments..

Pricing: Pricing is the process through which a firm calculates how much to charge customers
for its goods and services. The price-sensitive consumer category is affected by pricing.
Customers' expectations are influenced by the prices they pay for the products they purchase.
In such cases, the firm will change its pricing to match the amount of responsiveness or
efficiency expected by customers, and its supply chain will be organized to meet both needs.
Overview of PRAN Foods Ltd.:
Actually PRAN was formed in 1980 by present CEO mej. G. (rtd.) Amjad Khan Chowdhury &
RFL was founded in 1980. In 1981 they were merged and started their group named PRAN-RFL
Group. PRAN started its operation as a processors fruit and vegetable in Bangladesh. Keeping in
view the corporate mission of the Group they have over the years diversified their activities in 2
several areas. PRAN's biggest asset is their competent team of hands-on managers and dedicated
employees. PRAN is Bangladesh's largest grower and processor of fruits and vegetables. Their
contract growers cultivate the choicest fruits and vegetables, which are processed in their modern
and hygienic factories to highest quality & international standards.
How to manage SCM drivers by PRAN Foods Ltd.:
To completely grasp a product's supply chain, one must first know its supply chain drivers'
actions or flow. During our chat, we asked the staff at the PRAN center several questions
regarding the elements that drive PRAN's supply chain. As a consequence of these queries, we
now have a deeper understanding of how PRAN's supply chain drivers work.
Facilities: Production factories and warehouses are the locations. PRAN, as previously stated,
has many manufacturing units strategically situated around the country. These items can also be
used as storage. These warehouse locations are chosen based on factors such as manufacturing
costs, transportation, supplies, and, most significantly, proximity to key markets. PRAN enables
this, allowing for a rapid reaction to market demand and a high degree of product availability.
Inventory: Inventory refers to raw materials, work in progress, and finished items in the supply
chain. To guarantee the efficient operation of the supply chain, PRAN focuses on maintaining
appropriate safety stockpiles in accordance with market demands. PRAN warehouses hold a
huge quantity of products for the same reason. PRAN inventory is reduced to save money, but
the firm still has to have a certain amount of inventory on hand.

Transportation: PRAN has its own transport, but distributors generally use their own transport
to load and distribute food. PRAN uses its own transport to deliver products to several super
stores and special occasions when they see fit.
Information: Food demand and order data often travel upstream in a predictable manner. The
distributors gather the orders from the merchants and arrange them on paper invoices. These
orders are then invoiced and forwarded to PRAN offices in the traditional manner. When the
orders are processed, the distributors pick up the products from PRAN warehouses near them.
Unfortunately, we were unable to determine whether or not they utilize an ERP system, but what
we learned from the representative was that they do predict demand utilizing some type of
computerized system.
Sourcing: The raw ingredients for meals are sourced mostly from all around the country. Fruits
and vegetables are harvested from Farias or Aratdaars in North Bengal's rural regions.
Different vendors in Dhaka provide the essential food colors and other chemicals..
Pricing: The price of a product or service is the amount of money it costs to have or obtain it.
Price is only one profit-generating driver in supply chain systems; other factors are related to
cost. PRAN Food places a strong emphasis on cost-based pricing. PRAN Food Company may
accomplish both responsiveness and efficiency in the supply chain by having a broad range of
goods and a large number of products with consistent pricing for the supplied items.

How to achieve strategic fits
To reach responsive and productivity, PRAN must make the proper combination between the
calculated and cross-functional drivers which are outwardly appeared underneath:
PRAN has different warehouses at various locations to ensure responsiveness with the facility.
By monitoring safety inventory, PRAN Company maintains a responsive supply chain by
utilizing inventory drivers. The PRAN firm serves its items to the final clients through distributor
storage with customer pickup and retail storage with customer pickup deliveries. On the
information front, PRAN is gaining a competitive edge by leveraging correct information
throughout the supply chain. PRAN searches out the most efficient suppliers for each product it
offers in terms of the sourcing driver. Because the price is acceptable and does not change with
product variations, PRAN ensures an efficient supply chain in terms of pricing drivers.
Findings:
Supplier: A supplier is someone who is in charge of supplying raw materials, machinery, or
other items.
Manufacturer: Obtaining ingredients before beginning to construct the final product.

Warehouse: A factory's stock house where the current stock of materials or finished items is
measured.
Distribution: A circle of channel is used to distribute everything towards the final goal.
Retailer: A person who sells the finished product to customers in order to make a profit.
Consumer: The ultimate customer who purchases our company's goods for personal use.
Recommendation
Materials Planning: From time to time, an operation manager must do a flawless materials
planning. The materials planning is followed by the supply chain manager, who then moves on
to the next phase. When do you need the materials, and how does the cost of shipping affect you?
As a consequence, we save money on logistics and can deliver materials on time.
Justification and cost planning Math: To work with the accounting department to create a cost
strategy that would allow us to justify our effective costs. To determine the new cost of
materials, compare the prior and current prices. After calculating the cost, how do you know
which is the best option?
Integrate logistical processes with suppliers: Regardless of the size of a company, it is critical
to integrate logistical operations with its suppliers. This is entirely reliant on software
technologies, namely enterprise resource planning software. If a supplier has access to the pace
at which a company uses its inventory, they will be better equipped to fulfill any changes in
demand, increasing both organizations' operational efficiency.
Conclusion:
Supply chains are becoming more complicated and integral to a company's capacity to achieve
its commercial goals, necessitating increasingly diversified and multi-faceted executives. A large
majority of shippers believe their present executives lack the necessary skills to face future
business problems. Here, logistical assistance is more crucial for contending with worldwide
market rivalry, since both types of shipping differ in terms of producing a finished product for
the ultimate consumer at a measurable cost. Any business must have an effective supply chain in
order to provide goods or services to consumers on time in order to be successful in the

marketplace. PRAN Foods is a prominent food and beverage manufacturer that believes that
consumers should love what they eat and that the greatest healthy goods are available to them.
References
IBM. (n.d.). Retrieved from ibm.com: https://www.ibm.com/topics/supply-chain-management
leonard, S. (2020, June 2). Qoura. Retrieved from qoura.com.
Tagetik. (2021, August 24). Wolterskluwer. Retrieved from wolterskluwer.com:
https://www.wolterskluwer.com/en/expert-insights/five-supply-chain-drivers