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Assignment On Supply Chain Management System Search

Of Aarong
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Executive Summary
In today’s competitive world of Business
competitive advantage can be gain by
proper information system and developing
that information system. Aarong information
system is a sign of the modern business
organization of Bangladesh. Aarong is a
chain of retail outlet located in major cities in
Bangladesh an enterprise of BRAC. It
established in 1978, Aarong is a fair trade
organization dedicated to bring about
positive changes in the lives of Pages
disadvantages ascertains and
A Diary of a Stranger (13)
underprivileged
rural woman by reviving and promoting their skills and craft. Reaching out to weavers, potters, brass workers, jewellary, jute Assignment (60)
workers, basket weavers, wood carvers, leather workers and more, Aarong, to embraces and nurtures a diverse representation
Letter and Application (1)
of 65000 artisans work with the collaboration of 85% of whom are women. Today, Aarong has become the foundation upon
which independent cooperative groups and family based artisans market their craft, in an effort to position the nation’s Paragraph and Short composition
handicraft industry on a world platform of appreciation and acknowledgement. Aarong’s supply chain management (SCM) is the (21)
integration and management of supply chain organizations and activities through collaboration, effective business processes
and information sharing with women co-operatives. It has become a great tool for Aarong to deal with competition and Presentation (19)
increasing customer demand for value. To provide complete satisfaction to its domestic and foreign buyers, the information
Your Career (1)
must be available in real time across the supply chain and this is achieved by Aarong’s integrated software system for supply
chain management. Web technologies enable Aarong to become more effective, to trade with suppliers and customers over the
Internet in real time. Implementation of the supply chain information systems in Aarong’s facilitates an increase in its
competitiveness and profits. Popular Posts

Presentation On 10
Inventions of Ancient

Background: Egypt
Ancient Egypt managed
to succeed in numerous
fields, bringing a new invention some
Aarong emanated from BRAC’s core mission of alleviating of which not only survived till
nowadays, but can ...
poverty and empowering people. In the 1970s, BRAC was
examining any and all possibilities for alternative forms of Report On Segmenting
Targeting and
productive livelihood, especially for women, and the proper positioning of KFC

commercialization of art and crafts turned out to be a

promising option. In December 1978 when BRAC decided Executive Summary Idea is the key
to open its own retail outlet under the brand name Aarong, meaning ‘village fair’, it of Business. Each business is
establ...
broadened its arms to include other artisans and master craftsmen throughout
The Unemployment in Bangladesh
Bangladesh who were involved in the making of handicrafts for generations, and were "Short composition"
Bangladesh is beset with many
finding it extremely difficult to survive in the newly formed country. Ever since then problems. The unemployment is one
Aarong has been helping to establish market linkages for rural artisans, revive crafts of the talked to them. The word
‘unemployment’ means a state in
and interpret them for the contemporary marketplace. which a ...

A Book Fair "Paragraph and Short

composition"

Today’s Aarong: A book fair is a special type of fair

where books are the main attraction
for all class of people. And the main
Today, Aarong's reach has spread from where it started, Manikganj, to the rest of the thing about a book fair...

country. From a single shop, Aarong has grown into one of Bangladesh's biggest Load shedding "Paragraph and Short
composition"
retail chains offering one-stop shopping experience through 10 stores spread across Load shedding is the suspension or
discontinuation of electricity supply
the major metropolitan areas of the country - in Dhaka, Chittagong, Khulna and Sylhet on certain lines when the demand is
and one in London, UK. Aarong showcases over 100 product categories from clothing greater than the generatio...

to household items, gifts and fashion accessories to children’s toys, ethnic wear to Term paper on
Segmenting Targeting
beautiful crafts, from silks, handloom cotton, Endi to Terracotta, bamboo, jute and and positioning of
Nescafe
much more. Executive Summary
Nestle is the largest food and drinks
manufacturer based in Switzerland. It
Today, few urban consumers will argue that Aarong is the local Mecca for deshi has 479 factories operating in 81 di...
handicraft. Aarong’s product designs has brought consumer attention back to the
Natural Disaster in Bangladesh
products and styles that are indigenous to Bangladesh, its designers blending the "Paragraph and Short composition"
The The life of people of Bangladesh
traditional with the contemporary in a manner that has won instant consumer appeal, has often been shaped by tragedy.
starting a revolution in trends that has now been taken up by countless other Because, Bangladesh is a land of
natural disaster. Floods, cycl...
boutiques and stores. Aarong’s product designs focus on the diverse types and
Assignment On Supply
textures of crafts and patterns that have been passed along from generation to Chain Management
System Of Aarong
generation among weavers and artisans in craft hubs around the country.
Executive
Summary In today’s competitive
Aarong also plays the role of protector and promoter of traditional Bangladeshi world of Business competitive
products and designs. It houses an extensive design library where remnants of our advantage can ...

rich craft heritage, such as Nakshikantha art and Jamdani patterns, have been widely Historical place "Paragraph and
Short composition"
researched and archived for present as well as future use. Bangladesh has an enriched
historical background. There are
many places of historical interest all
over the country. We the students...

Aarong’s Mission: Your future plan or aim in life

"Paragraph and Short composition"
Every individual proceed to go
forward to reach their expected
Aarong’s mission is to help sustain rural craftsmanship and find a wider market for destination. For that one must have
their product nationally and internationally. a future plan , an aim. And it is ...

Aarong’s Vision:
Aarong has one outlet in London and exporting to other countries of North America,
Europe and some Asian countries. Because of migrating Bangladeshis in those
areas, they are targeting to make more franchising activities in those North American
and European region. They basically are targeting those activities after fulfillment the
customer demand in domestic market.

Products of Aarong:

MEN'S PRODUCTS:

Traditional, Executive Shirts, Maanza , Fotua, Short Kurta, T-shirts,

Stoles/Shawls, Sandal etc.



WOMEN'S PRODUCTS:
Traditional, Western Nightwear,, Shawls/Scarves, Shoes, Bags , Fabrics.

CHILDREN'S PRODUCTS:
Clothes, Toys, Books, Shoes
Others:
Home Textile, Home Accessories, Jewellary, Leather Terracotta Bamboo/Cane/Leaf,
Metal, Candles, Jute, Ceramics, Nakshi Kantha, Paper, Wood, Glass

Aarong’s Supply Chain:

Aarong’s supply chain is the movement of materials as they flow from their source to
the end customer. The whole supply chain of Aarong includes purchasing,
manufacturing, warehousing, transportation, customer service; demand planning,
supply planning and Supply Chain management. It is made up of the employees,
activities, information and resources involved in moving a product from Aarong’s
supplier to its customer.

How Aarong’s Supply Chain Management System is

build:
Aarong’s supply chain management system is a group of things working together.
Computers, fax machines, data storage system, operating personals, procedures for
the employees and the most vital components of Aarong’s supply chain management
system are its telecommunication system. Cell phones helped Aarong to create a
communication network with every suppliers and transportation partners across the
country. All this components work together to provide information to collect products,
manage the suppliers, to provide services, create report etc. Different computer
software’s are also used in the supply chain management of Aarong but the main
supply chain management software is developed by Aarong. This software is used for
both supply chain planning and to help them to execute the supply chain steps.
Aarong has hired trained professionals to operate its supply chain management
system and keep updating. Aarong’s supply chain management system can be
divided into two systems. Both of this system is vital for Aarong’s business. One is
Supply Chain Planning System and another one is Supply Chain Execution System.

1. Supply Chain Planning System:

Aarong’s supply chain planning helps Aarong to create a model for its existing supply
chain, its helps management to measure demand forecasts for different products and
develop a way to find best source for meeting those demands and manufacturing
plans.

Aarong have turned to their customers for help. By communicating directly with
customers about what they want and by getting their feedback on existing products,
management are able to more accurately understand the needs and wants of their
target audiences. With this information, they can make a forecast that reflects
customer reality. Furthermore, improved technology has of Aarong made it even
easier to get their hands on customer feedback. The Website of Aarong for example,
makes it possible for organization to communicate with customers in real-time, so they
can then use the data immediately in their forecasts. Aarong has developed a central
database for all the information and it gives access to suppliers and partners. These
technology improvements along with real-time customer feedback have made it
possible to more accurately predict revenue, profit, and sales in the near future. More
accurate planning means that Aarong can work together with their vendors and
distributors to outline a plan that makes sense based on those forecasts so that no
one is put into a negative situation. Overall, supply chain planning is a critical
component of Aarong’s supply chain management. Without accurate planning
abilities, businesses end up cutting into their revenue unnecessarily and possibly
putting vendors and distributors into difficult situations that may strain the supply chain
relationships in the long run.

2. Supply Chain Execution System:

Aarong’s supply chain execution system is mainly consists of its transportation
partners. They manage the flow of products though distribution centers and
warehouses to ensure the products are delivered to the right locations in the most
efficient manner. Aarong track the physical status of goods, the

Management of materials, warehouses, transportation operations and financial

information involving all parties.

Aarong’s Supply Chain Management Process

Plan: Aarong’s supply chain management planning starts at the top of the
management. Management tries to balance out the demand and supply to meet
Aarong’s sourcing, production, delivery and return requirements.

Source: Aarong has large pool of sources to meets it supply. As the demand requires
suppliers come up with raw materials and goods. Then it creates a product which we
can exploit.

Make: Co-operatives comes up with final goods and they deliver them to the final
processing section of Aarong. The goods or products are ready to use for the
customers.

Deliver: Aarong’s delivering process is managed by its own transportation. Aarong

directly distributes its product to the consumers. Their job is to distribute shipments
properly. “Just-in-time” is followed in delivery process.

Return: Return process is consisting of product returns and post delivery customer
support which is done by Aarong. Generally Aarong obtained their products to their
consumers within 30days.Its also includes Aarong’s return process.

Logistics: Aarong’s top level management plans, supportive relation to their

consumers and control of all other factors that have an impact on the supply chain.

Aarong’s Supply Chain Management Information Flow

Information flows from customers to Employee or from employees to operating

personnel in the information system. Then information goes to the floor manager.
Floor manager shows it to the consultants of Aarong. Consultant shows it to the top
level management of Aarong. Top level orders its suppliers to modify, improve or
create product to meet the customer demand.

Aarong’s Supply Chain Management Backend

incorporation:

Aarong’s supply chain management system can exemplify into Upstream portion
where the supply chain includes Aarong’s suppliers or co-operatives, and their
suppliers who are the raw material providers Aarong’s. Aarong tries stay connected
with the raw material providers through telecommunications. Co-operatives have all
sorts of facilities. They stay connected though telecommunication. Aarong’s database
is open to its suppliers; it provides them with inventory data. And suppliers also can
provide information to Aarong through the web. Because of the real time data
availability suppliers are at no harm position when they are dealing with Aarong.
There is also Downstream portion consists of the Aarong’s processes for distributing
and delivering products to the final customers. Aarong has its own internal supply
chain processes for transforming materials, components, and services by their
suppliers into finished products or intermediate products for their customers and for
managing materials and inventory.

Aarong’s wants to satisfy, so Aarong provides operational data to its highly loyal
customers and contractors. Aarong’s big buyers can gain data about their order
through Aarong’s website or by extracting data from its database. Aarong’s website
provides the progress about orders from foreign buyers. Buyers can also get along
about the operational process.

Aarong’s suppliers also have the concession to exchange register data. They are
aware of what Aarong wants and the price it’s willing to pay. They also get the cut-off
date and operational instruction from website. If anything changes they will know
because Aarong’s web application automatically incorporated with back office
information system and database which they can easily way in.

Aarong has a central database which is updated by the operational employees. So if

any changes come Aarong’s Supply Chain Management will send mail to upstream
and downstream suppliers its suppliers.

Managerial Skills:

Aarong has trained operating personnel for its accounting department and website.
Operating personnel job is to maintain the information system and repair if any error
ever occurs. Aarong’s operating personnel are highly qualified in their job sectors.
Aarong’s information system is designed to be employee friendly. Employees do not
have to know lot about technology to operate its regular applications. Its information
system is very secure. Employees strictly follow all the principled rules. All customers’
orders, addresses or any kind of information is remaining private. Accuracy is
practiced and monitored by operating personnel’s. Access of employee information is
strictly forbidden. So Aarong has the ability to adjust technology strategy alignment to
accommodate the use of IT and manage business process.
The Internet has emerged in the recent past as a dynamic medium for channeling
transactions between customers and firms in virtual marketplace. In particular, the
World Wide Web has emerged as a powerful new channel for supply chain, rendering
many intermediaries obsolete, and drastically revamping the value chain. So Aarong
has taken the opportunity to expand its business through net. Aarong’s employees
can see as an asset for this kind of expansion. But in our country the growth in e-
business seems slow although internet is challenging the traditional supply chain
structures that firms have employed to get goods and services to market. Aarong has
re-evaluated their value proposition to customers, and meet the challenges of more
nimble rivals. Aarong seems to be one of the organization which is interested provide
online based order and information system to its customer. So Aarong has a very
dazzling managerial skill in internet based supply chain.
Aarong’s performance improvements by SCM:

1. Accurate information for suppliers and buyers: Because of the proper

Supply Chain Management Aarong gets accurate information. Distort information is a
major problem of govt. funded organization but Aarong is different because of its
supply chain management.

2. Easily stored data & access: SCM has provided easy way to store data.
Information can be easily stored. This made suppliers and front line employees very
efficient about their job.

3. Information sharing through Upstream and Downstream: Without

network, information sharing would take lots of time. But in Aarong, can share
information very easily with its upstream and downstream partners and suppliers.

4. Work efficiencies: Supply Chain Management System has increased Aarong’s

work efficiency.

5. Speed: SCM has increased speed of the work. Employees are working with more
speed in Aarong.

6. Proper storage system: Supply Chain Management System gave a proper

storage system. Employees can store data and also can see it whenever they want.
Suppliers can store data too. Any changes can be seen through website. Customers
get big help from that.

7. Report making became very easy: Procurement Managers work became

easier with information system. Managers can make their marketing and financial plan
more easily.

8. Improved working environment: Through establishing an information system

Aarong has developed its working environment. Suppliers do not have to wait for
hours for their papers of order.
9. Improvement in Training employees: Power point has improved training
programmers for employees.

10. Improved customer satisfaction: Aarong has improved customer

satisfaction with its supply chain management system. Customers are more satisfied
than before. They are getting what they want. Total 83% customers are happy with
Aarong’s customer’s services. SCM has given Aarong chance to customize products.

11. Improved product and service quality: SCM has improved Aarong’s
product and service quality. Customers can get their desired products and better
service.

12. Improved Employee Satisfaction: Employee satisfaction has increased.

Employees are happy with their work and they are clear about what to do & what not
to do.

13. Improved communication: Video and teleconferencing has improved

communication in Aarong. Employees can communicate with customers, suppliers
and their supervisors more easily.

14. Up to date information: Information is up to date because of the proper data

entry. Employees gets up to data to work with which bring efficiency.

Competitive Advantage of Aarong’s Supply Chain Management

System:
Competitor analysis in marketing is an assessment of the strengths and weaknesses
of current and potential competitors. This analysis provides both an offensive and
defensive strategic context through which to identify opportunities and threats.
Competitor profiling coalesces all of the relevant sources of competitor analysis into
one framework in the support of efficient and effective strategy formulation,
implementation, monitoring and adjustment.
Aarong has its own version of the competitive analysis and its function is clear:
to line up your product with other products and show where yours falls short and
where yours is superior. Each industry brings a different spin to this old favorite and
user experience design has its own set of criteria by which to judge competitors.

Competitors Analysis of Aarong:

From the above diagram it is seen that Aarong has competitive advantage over
its competitors on almost every factors. Only few companies have ability to chase
some sort of advantage like Aarong. Such as Rina Latif’s product features, qualities
and innovativeness, Kay-Kraft and Anjan’s supplier, Rang’s color and Khubsoorti’s
cost.
Aarong has gain competitive advantage through its supply chain management
system. Aarong has a vast network system with its thousands of suppliers and
manufacturers which gave Aarong superior production and resource allocation power.
Competitors do not have power that can match Aarong’s production capability so they
are losing shelves. SCM keeps track of its supplier and its inventory properly so there
 less costly and hustle free for the employees. Performance of service has increased
more than its competitors so there are more satisfied customers of Aarong.

Conclusion:
There is a reason why Aarong is at the forefront of the urban fashion-scene. Their
innovative clothing line fuses ethnic wear with global trends using traditional
Bangladeshi materials. Aarong is a support enterprise of BRAC. A significant portion
of their earnings are invested towards improving the socio-economic standards of
disadvantaged artisans and underprivileged rural women of various communities.
Aarong organizational vision will be achieved smoothly and that is the women will be
empowered through “grass-root level women entrepreneur development” and this
empowerment will change the overall scenario of economic condition.

Reference:
www.Aarong.org
www.scribd.com
Business and Information Systems by Robert C. Nickerson

at 10:26 PM

Labels: Assignment

2 comments:
Ruth March 10, 2016 at 10:21 AM

This is really an awesome article. Thank you for sharing this.It is worth reading for everyone.

Web Based Omnichannel

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Amy Cooper March 11, 2016 at 11:41 AM

It is my great pleasure to visit your website and to enjoy your excellent post here. I like that very much. Supply chain
management services

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