Supply Chain Management
Term paper on
An Overview of Supply Chain Management Challenges and
Opportunities in Shipping in Bangladesh.
PREPARED BY
Uman Emdad ID: 41941019
Augustine Ashik Hira ID: 41941023
Mehedi Hasan ID: 41941017
Noman Siddique ID: 41840012
Department of Marketing (EMBA)
Faculty of Business Studies
University of Dhaka
PREPARED FOR
Nasrin Akter
Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
DATE OF SUBMISSION
December 6, 2020
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Introduction:
The shipping industry is the heart of global economy. And Bangladesh is in a great advantage
that we are not a land locked country but we are in a great geographical area to be the hub of
global shipping. But to be profitable and a global player Bangladesh need to improve its
logistics handling technology and make it advance to compete with global players, despite of
having so many challenges we are providing service to 1600 local and 20-30 international
companies it necessary service to help our own economy.
For sustainable economic development, good infrastructure and efficient logistics are needed.
It helps the country to get a competitive edge to reduce cost of doing business around the globe.
In spite of having remarkable economic growth, Bangladesh still lags behind competing with
countries in terms of logistics infrastructure competitiveness. In this report we tried to point
out how the shipping business runs and exactly where we are lacking, our challenges and how
we can get rid of those. It government and the appropriate agencies can take those challenges
into consideration and use the strength to build a infrastructures to bring the opportunities we
have in ocean business Bangladesh can outrun most of the neighbour countries.
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Shipping industry overview:
When it comes to Shipping, Bangladesh is most known as a ship breaking nation and one of
the largest in Asia. However in recent times it also emerged as a shipbuilding country.
Shipbuilding yards in our country is now exporting small and medium sized ships for the highly
competitive market in Europe. From 2008 Bangladeshi ship manufacturing companies shipped
ships ferries, cargo vessels to Denmark, Germany and Finland.
And one important thing is to mention that Shipping industry and Ship Building Industry both
are called as shipping industry but shipping activity and ship building industry are very
different industry and terms. However when it comes to the major emerging markets of
shipment and supply chain management and logistical Bangladesh is one of them. From
logistical services, integrating, warehousing to transportation you have so many choice and
international players in Bangladesh that made this industry huge. Some Examples, Crown
Logistics Ltd. (Cll), Sail Logistics Ltd, Khan Logistics Ltd. and many more.
Different Logistical Functions in Shipping Business:
Logistical activities are the activities related to movement of goods across the supply chain of
the company. This process is consist of various functions that makes the entire process
seamless.
Order Processing: It is an important activity in functions of logistics handling. The order
placed by the client is very important legal document for the transaction between the two
parties. This document includes the description of the product, price, product supply details,
payments terms, commercial terms and so many things. The order processing activity is also
consists of the steps given below:
1. Checking of the negotiated terms and conditions
2. Price, Payments and delivery terms
Logistical
Functions
Order
Processing
Inventory
Control Warehousing Tranportation Material
Handeling &
Storage
Logistical
Packaging Infomaiton
Processing
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3. Checking the availability of the product in the stock
4. Product and material scheduling fir the shortage
5. Acknowledging the order indicating the deviations if any
Inventory Control:
Inventory is keeping the enough amount of the product to meet the requirements of the product.
It is maintaining the balance between the serving the product and keep the product in hand for
any sudden demand increase of requirements. Keeping the product in the inventory consists of
the cost of financing the inventory, insurance, storage losses, damages and so many things.
Warehousing:
Warehousing is the sorting of goods until they are sold. It plays a vital role in logistics operation
of any firm. In today’s context warehousing is more of switching facility rather than good
management. Warehousing is the key decision area in logistics.
Major decisions of warehousing are:
1. Location
2. Number of warehouse
3. Size
4. Layout
5. Design of the building
6. Ownership of the warehouse
Transportation:
For the movement of the goods from the supplies to the buyer, transportation is the most
fundamental and important component of any logistical functions. When an order is placed the
transactions not complete till the physical good is moves to the customer’s place through an
effective and efficient transportation system.
Material Handling and Storage System:
The richness of the movement of the inventory is depends on the material handling method.
An improper method of material handling will add additional cost to the company and time
will take more to reach the product of the end customer. Mechanization and automation in the
material handling enhance the logistical system and its productivity. The storage system is
important for maximum utilization of the space and given size of the warehouse.
Logistical Packaging:
Logistical Packaging is an important element of the process because it deals with the physical
distribution of the product which influences the efficiency of the logistical system. It is different
from the product packaging which is based on the objective of Marketing.
Information Processing:
Use of IT tools for the information identification, access, storage, analysis and decision support
systems which is vital among the function ns of the logistics helping the business firms to
enhance their competiveness.
Difference between Maritime, Shipping, Freight, Logistics and Supply Chain:
To the people who are not well informed about his industries like we were at some point we
thought there are no difference between Maritime, Shipping, Freight, Logistics, Supply chain
and Trade, but once we got involved with this by doing this term paper not we see things
differently. Let us discuss the differences:
Maritime Industry: Any activity related to the ocean, sea, ships, and navigation of ships from
