An analysis on the supply chain management of dry food items of SK Agro Food Processor – A case study

Abstract

The report was created as a requirement for degree completion at BRAC University. It outlines the supply chain activities of SK Agro Food Processor where I completed my internship. SK Agro Food Processor is a sole proprietorship that engages in manufacturing and export of variety of dry food stuffs. SKAFP’s operational strategies include a low-cost pricing strategy, consistent good quality product, high flexibility in terms of altering product specification and introducing new flavors to attract new customers and remain competitive in the market. The factory is located at Narayanganj, which is an industrial zone that has availability of labor and near to the suppliers. It follows a batch process of production and has a process type layout where similar production processes are done in the same area. SKAFP has many types of inventory on hand and use a perpetual inventory system to track their inventory. They use weighted moving average for their demand forecasting to get an estimate of following year’s demand. The inbound logistics is very simple as SKAFP arranges transport for raw materials to be delivered to the factory. However, the outbound logistics, the consignment is sent from the factory to the Chittagong port where it is loaded into a cargo vessel and shipped to client’s destination. These are the major aspects of supply chain activities covered by SK Agro Food Processor. However, they also face many issues. Many of their inventory tracking is done manually. This causes many errors and the flow of information is also disrupted resulting in inefficient decision making. Moreover, their wastage level is very high due to power outage and equipment failure. And finally, many of their packaging is done manually that leads to a huge bottleneck.