Daffodil International University

Internship Report On
Inventory Control System Of Quality Feeds Limited

Prepared By S.M.Hosne Zaman ID: 072-11-1840

Department of Business Administration Faculty of Business & Economics Daffodil International University

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Inventory Control System Of Quality Feeds Limited"

Submitted To

Mr. Shibli Shahriar Assistant Professor

Department of Business Administration Faculty of Business & Economics Daffodil International University

Submitted By

S.M.Hosne Zaman ID: 072-11-1840

Department of Business Administration Faculty of Business & Economics Daffodil International University Date of Submission September , 2012 Daffodil International University 102, Sukrabad, Mirpur Road, Dhanmondi, Dhaka 1207

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LETTER OF TRANSMITTAL

February , 2012 Md. Shibli Shahriar Assistant Professor Faculty of Business & Economics Daffodil International University Dhaka.

Subject: Submission of Internship Report

Dear Sir, It is indeed a great pleasure to have the opportunity to submit the report of my Internship. I have prepared this report in accordance with the instruction given by your highness. The topic of my Internship is Inventory Control System of Quality Feeds Limited (QFL) This report is trying to describe my observations, learning and recommendations based on experience during the internship period in the organization. I have made sincere efforts to conduct this study in reviewing related materials, and examining relevant records for preparation of this report. I am glad to have this opportunity to conduct this type of practical study, which provided me learning opportunity and compare theoretical knowledge with practical situation and standard. I hope you will be kind enough to accept my report and bless me. Yours truly, ______________ S. M. Hosne Zaman ID # 072-11-1840 Sec: B, Batch: 17th Bachelor Of Business And Administration Daffodil International University

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DISCLAIMER

I S.M. Hosne Zaman, am hereby declare that the presented report of internship titled Inventory Control System of Quality Feeds Limited is uniquely prepared by me after completion of three months work in Quality Feeds Limited.

I also confirm that, the report prepared only for my academic requirement not for any other purpose. It might not be used with the interest of opposite party of the organization.

S.M. Hosne Zaman BBA, Program Department of Business Administration Faculty of Business & Economics Daffodil International University

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Certificate of Approval

I am pleased to certify that the Internship report on Inventory Control System of Quality Feeds Limited conducting by S.M. Hosne Zaman is bearing ID No: 072-11-1840 of the Department of Business Administration has been approved for presentation and defiance/vivavoce. Under my supervision Mr S.M. Hosne Zaman worked with QFL as an intern. He completed the work during the spring, 2011 semester. Mr. S.M. Hosne Zaman bears a strong moral character and a very pleasing personality. It has indeed been a great pleasure working with him. I wish him all success in life. Supervisor

Md. Shibli Shahriar Assistant Professor

Department of Business Administration Faculty of Business & Economics Daffodil International University

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ACKNOWLEDGEMENT

By the grace of the Almighty, I would like to say that the submission of the study report titled Inventory Control System of Quality Feeds Limited (QFL) is a delighting moment for me. Completion of this report has made me grateful to a number of persons. First, I must express my gratitude to my Sir, Md. Shibli Shahriar,Assistant Professor Faculty of Business and Economics. I am indebted for his valuable instructions and suggestions on every aspect of this useful assignment. It is my honest confession that without his valuable guidance and suggestions, it would never have been possible to complete this study successfully. I would be always grateful to him. I am deeply grateful to the respected Chairman, Vice Chairman and the Managing Director to kindly provide me the chance to undergo Internship in their esteemed organization. I am also grateful to all the employees of QFL, specially to to Mr. Tarequr Rahman Administrtive Manager of QFL & Mr.Subrata Kumar Khaskel Officer of Credit control department, who provided valuable necessary information about the organization and who was very much cooperative during of my internship period.

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Executive Summary
The report has been prepared by me as a requirement of the Internship program for BBA (Finance) study. I have prepared my report with special emphasis on Inventory Control System of Quality Feeds Limited (QFL), a well-known Poultry Feed Manufacturing Company in Bangladesh. Quality feeds Limited was incorporated as a private limited company on 4 December 1995. The company was established mainly to carry out business of manufacturing and marketing of poultry feed, fish feeds and all kinds of feeds and meals for consumption by fish and animals. The company was incorporated with an authorized capital of Tk 60 million (599,000 ordinary shares of Tk 100 each and 1,000 preference shares of Tk 100 each). Issued subscribed and paid up share capital of the company at 30 June 2004 was Tk 13,638,000. Managing Director and three other Directors manage the company under the overall guidance of the Chairman. The Company has monthly reporting system to the Board of Directors on purchase, production, sales and financial assets (i.e, cash and bank balances). QFL is currently enjoying 30% of the market share. Sales are made mainly in cash Raw materials are procured locally as well as imported from India, China, Canada and Australia. Some of the items like rice polish, wheat bran, atta etc are purchased locally. Methods of production are very much scientific. Compared with other companies in poultry industry Bangladesh, QFL is more efficient, better organized and continuously progressing to lead the market in and outside the country.

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Table Of Contents
INTERNSHIP REPORT...............................................................................................................1 ON....................................................................................................................................................1 Prepared By.............................................................................................................................1 Submitted By............................................................................................................................2 1.0 INTRODUCTION..................................................................................................................11 1.1RATIONALE OF THE STUDY...........................................................................................11 1.2 OBJECTIVES OF THE STUDY .......................................................................................12 1.3 METHODOLOGY............................................................................................................12 1.3.1 Data Type ....................................................................................................................12 1.3.2 Data Collection............................................................................................................13 1.3.3 Sources of Primary Data .............................................................................................13 1.3.4 Sources of Secondary Data .........................................................................................13 1.4 LIMITATIONS OF THE STUDY: .....................................................................................13 2.0 DESCRIPTION OF THE COMPANY ...............................................................................14 2.1 BACKGROUND OF THE COMPANY: ..............................................................................14 2.2 STRUCTURE OF THE COMPANY:..................................................................................14 2.2.1 Financing.....................................................................................................................14 2.2.2 Management................................................................................................................14 2.2.3 Markets........................................................................................................................15 2.2.4 Management information.............................................................................................15 2.2.5 Employee arrangements...............................................................................................15 2.2.6 Hierarchical Position of QFL......................................................................................15 2.3 COMPONENTS OF THE BUSINESS..................................................................................15 2.3.1 Raw Materials..............................................................................................................15 2.3.2 Products........................................................................................................................16 2.3.3 Sources of supply.........................................................................................................16 2.4COMPETITION................................................................................................................16 2.4.1 Major Poultry Feed Manufacturing Company in Bangladesh:..................................16 2.5 DISTRIBUTION CHANNEL..............................................................................................17 2.6 FACTORY TECHNOLOGY..............................................................................................18

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2.6.1 Machineries :................................................................................................................18 2.6.2Brief Description feed Machines...................................................................................18 2.6.3 Power Consumption ...................................................................................................21 2.7 TOTAL QUALITY MANAGEMENT (TQM) PROCESS OF FEED PRODUCTION:............21 2.8 SALES OPERATION PROCEDURE OF QFL :..................................................................30 2.8.1 Procedures of Credit sales to dealers through depots.................................................30 2.8.2 Procedures of Retail sales............................................................................................31 2.8.3 Procedures of Export sales...........................................................................................32 2.9 ORGANIZATIONS SALES POINT:..................................................................................32 2.9.1 When order is received by Head Office :.....................................................................32 2.9.2 When sales center is Gazipur Plant, Bogra Plant or Depot :......................................33 3.0 ANALYSIS OF INVENTORY CONTROL MANAGEMENT ........................................33 3.1 PLANNING:....................................................................................................................33 3.2 FUNCTIONS AND PROCEDURES OF STORES DEPARTMENT.........................................34 3.2.1 Introduction..................................................................................................................34 3.2.2 Functions of Stores Department...................................................................................34 3.2.3 Receiving and Inspection of Inventories.......................................................................35 3.2.4 Procedures for Raw Materials and Stores Requisition/Issue/Consumption................36 3.2.5 Gate Pass System .........................................................................................................37 3.3 STORES INVENTORY AND RECONCILIATION...............................................................37 3.3.1 Physical Verification of Stores....................................................................................37 3.3.2 Treatment of Discrepancies .........................................................................................38 3.4 PURPOSE OF INVENTORY CONTROL IN QFL:.............................................................38 3.5 STOCK LEVELS AND ORDER POINT OF QFL :............................................................39 3.5.1 Procedures of Local purchase......................................................................................41 3.5.2 Procedures of Foreign purchase .................................................................................42 3.6 MANUAL SYSTEMS OF DEPOT FOR INVENTORY CONTROL:.......................................43 3.7 VALUATION OF INVENTORIES......................................................................................45 4.0 MARKET AND INDUSTRY ANALYSIS ..........................................................................46 4.1 MARKET ANALYSIS .....................................................................................................46 4.2 INDUSTRY ANALYSIS.....................................................................................................46 FINDINGS:...................................................................................................................................47 FINDINGS:...................................................................................................................................49 REFERENCES:...........................................................................................................................51 APPENDIX...................................................................................................................................52

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Quality Feeds Limited

1.0 INTRODUCTION
Poultry Industry plays a vital role in Bangladesh and involves significant portion of rural people. In Bangladesh BRAC developed a Rural Poultry Model in 1983.In early nineties -Government declared poultry as a thrust sector and classified as an agro based industry. Government has liberalized its policies by introducing easier loan procedure, lower interest rate, tax holiday etc. A good number of Poultry Feed Manufacturing Industries have been established in 1990 with financial Bank support. Quality Feeds Limited (QFL) has been incorporated in Bangladesh on 4 December 1995 as a private limited company for the purpose of carrying out business of manufacturing poultry feeds and fish feeds. 1.1 Rationale of the Study At the beginning of the twenty-first century, Bangladesh has a population of more than 140 Million people. The purchasing power of the middle class is growing and food habits are also changing. The Bangladesh economy is growing at the rate of 5 to 8 percent per annum. The livestock industry in Bangladesh is the second largest contributor to gross domestic product (GDP), after agriculture, and accounts for 9 percent of the total. In view of the expected rise in per capita consumption of chicken meat, eggs and fish, livestock production and productivity will grow. The poultry industry is developing towards vertical integration and a few multinational companies have already entered in the Bangladesh poultry business. In this context the study about Poultry Feed Industry has a great importance. This report will help to understand the current market position and future of poultry feed industry. This report will also help how Quality Feeds Limited operates their business with efficiency since last 15 years, and this study will also provide various guidelines to this sector.

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1.2

Objectives of the Study

General Objective: The general objective of the report is to introduce the Quality Feeds Limited and defining the strategies how the company take steps to avoid competitive failure and sustain competitive advantage over time Specific Objectives: The specific objectives of the report are: Give an overview and information of the QFL. Studying how the company control inventory and manage total quality of the product. Analyze the existing and potential markets of the product of the company. Studying how the companys management process operates its business efficiently. Find out the strength, weaknesses, opportunities and threats of the company. Conduct a comparative market analysis. Highlight the Inventory Control Management and Management process of QFL. Find out the problems related to the company and the market and provide recommendations. 1.3 Methodology

Information and Data related to QFL was collected from the head office, Uttara and Factory, Gazipur. Data includes the financial reports, information related to the functions of different departments. 1.3.1 Data Type

Both the primary and secondary data of QFL were collected for the research.

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1.3.2

Data Collection

Following instruments were used for data collection: Questionnaire (the structure of the questionnaire is a mixture of open ended , close ended and some time in free-format) Personal interview is also used to collect primary data Annual report, articles, journal etc have been used for secondary data. Web sites are also sourcing some secondary data. The Study is based on both the primary and secondary sources . 1.3.3 Sources of Primary Data

The sources of primary data are the interviews of the managers and other employees of different departments of QFL. Observation and working with the clients database were other sources of collecting the primary data. 1.3.4 Sources of Secondary Data

The secondary data were collected from the annual financial reports of the company. Also from the brochures, annual report, audit report of QFL. 1.4 Limitations of the study:

There are some of limitations of the study: Time frame for the study was very limited. The actual survey was done within a month. Large-scale research was not possible due to constraints and restriction posed by the company. Lack of access to the confidential information, The information of the competitors was limited to the financial statements and the brochures of the companies. Part of organizational culture was written from individuals perception and may vary from person to person. Complete and comprehensive information are not available for public. Some of the items of the financial statements were not properly divided into small segments. Also lack of sufficient notes .

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2.0

DESCRIPTION OF THE COMPANY

2.1 Background of the company:

Some of the information were written only on the observation, because the in depth information was confidential to the outsiders, also to interns.

Quality feeds Limited was incorporated as a private limited company on 4 December 1995. The company was established mainly to carry out business of manufacturing and marketing of poultry feed, fish feeds and all kinds of feeds and meals for consumption by fish and animals. For the purpose of the business, the company established its factory on 2.09 acres of land located at Bagheer Bazar, Gazipur. The company has acquired further 9 decimals of lands at the same place during the years 2000-2001 and 2001-2002 for expansion of its business. The Company has also acquired 5.19 acres of land at Jamunna, Bogra during the year 2003-2004 for Bogra unit, which has gone into commercial production from October 2004. 2.2 Structure of the Company:

The company was incorporated with an authorized capital of Tk 60 million (599,000 ordinary shares of Tk 100 each and 1,000 preference shares of Tk 100 each). Issued subscribed and paid up share capital of the company at 30 June 2004 was Tk 13,638,000 2.2.1 Financing

The companys working capital is being met usually by local sales and by secured loans and overdrafts from bank. The loans and overdrafts are secured by 2.2.2 Directors personal guarantee Stock of the co. Fixed and floating assets of the company Management

One experienced MD and three other Directors manage the company. Although there is a Hierarchical structural position in the organization but most of the time democratic managerial decision makes the management process more democratic.

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2.2.3

Markets

QFL manufactures poultry and fish feeds, which is sold by the distributors and stockiest throughout the country. The company has well developed market in the field of poultry and fish feeds. They are currently enjoying 30% market share. Raw materials: 2.2.4 Management information

The company has monthly reporting system to report financial information to the Board of Directors. BOD takes necessary action on this basis. 2.2.5 Employee arrangements

There are 40 employees in head office, 20 employees in Bogra office and 150 employees in factory. Besides the employees, there are 04 directors in the Head office. Also there are casual workers in the factory. The number of casual workers varies from 300 to 350 time to time. 2.2.6 Hierarchical Position of QFL

Although the organization seems to be a tall line of supervision but there is a close interaction between top-level management and lower level management. Chairman is at the top of the position of the organization and according to power, responsibilities, functionality etc hierarchical position goes downward (Appendix- A/1). 2.3 2.3.1 Components of the business Raw Materials

More than 70 types of raw materials use in QFL, (Appendix-A/2):

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2.3.2

Products

QFL produce Poultry feed both for Broiler and Layer, Fish feed for Pungsh, Carp fish and also produce feed for Shrimp. The Chart of Products are as under:

General name
Broiler poultry Layer poultry Pungas fish Carp fish Shrimp General

Grade
Shulov, Winner, Champion

Shurovi, Rupali, Sonali Royel Special, Shundari

2.3.3

Sources of supply

The company is engaged in producing poultry and fish feeds the main raw materials of which is maize, soybean cake, meat and bone meal etc. imported from India, Burma, china, Canada, Australia. Some of the basic materials like rice polish, wheat bran, atta etc are purchased locally. 2.4 Competition A number of new competitors entered into the market like Aftab Feed meals ltd.,Paragon Feed meals ltd , Usha Feed meals ltd,City Feed meals ltd, United Feed meals ltd,Narish Feed meals ltd,C.P Feed meals ltd. etc. engaged in aggressive marketing of their products. Promotional activities to attract new customers, maintain existing customer and to face the company carries out the new challenges from competitors.

2.4.1

Major Poultry Feed Manufacturing Company in Bangladesh:

Sl. No

Address of Factory
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Name of Feed

01.

Quality Feed Limited H#14, R# 7, Sector# 4 Uttara, Dhaka-1230 Aftab Bahumukhi Farms Limited Islam Chamber, 125/A, Motijheel C/A(8th floor), Dhaka-1000 BRAC Poultry Project 75, Mohakhali C/A, Dhaka-1212

Quality Feed

02.

Aftab Poultry Feed & Aftab Fish Feed Surma Feed

03. 04.

Kazi Farms Ltd Kazi H# 84/B, R# 7/A, Satmosjid Road, Dhanmondi, Dhaka-1207 Nourish Poultry & Hatchery Ltd H# 405, R# 27(Old), 16 (New) Dhanmondi R/A, Dhaka-1209 Paragon Pourty Ltd Paragon House( Sports Zone Building) 5, Mohakhali C/A, (7th floor), Dhaka-1212 National Feed Mills Ltd. H#102, R#03, Block-F, Banani, Dhaka-1213 Proshika Integrated Agriculture Farm 1/1/Ga, Section-2, Mirpur Dhaka-1216 C.P. Bangladesh Company Ltd. H# 9, R# 4, Sector-1 Uttara, QFL Factory Dhaka-1230 Pocha Poultry & Feed Mill 40 Moulbi Bazar, Dhaka-1000 Gazipur Warehouse Distribution channel Nourish Poultry Feed

05.

06.

Paragon Feed

07.

National Feed

08. 09.

Proshika Feed Hi-Pro-Vite Feed, Hi-Grow Poultry

10.

Pocha Poultry Feed Bogra Warehouse

2.5

District Distributor The company has a strong Distributor marketing channel through District which sales are made all over the country to the customers. Most of the sales are made on payment basis. Retailers - 17 Customers Retailers

2.6 2.6.1

Factory technology Machineries :

The following machineries are required for a complete poultry feed plant 2.6.2 GRINDMIX H series Half sieve hammer mills/ Full sieve hammer mills Ribbon Blender Screw conveyors Belt conveyors Pellet mills Pellet coolers Pellet crumbles Hammer mill Maize Grinding Plant Brief Description feed Machines

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a) Grind mix H series H- Series is a batch type machine in which grinding & mixing is performed simultaneously. Mixer is of paddle type which ensures 100 % mixing. Strong & rigid steel construction. b) Full Sieve / Half Sieve Hammer Mills Hammer mills are used for grinding almost all types of free flowing materials. Hammer mills operate on the principle that most of materials will grind or crush upon the impact of swinging hammers. c) Pellet Mill Palletizing is a process to compact finely pulverized material into firm mass of a required shape and size by extruding it through a metallic ring die. Finely ground material is fed into the Pellet Mill through a feeder and then pressed into a rotating ring die with the help of two press rolls free to rotate on their respective shafts. The resulting pressure compresses the material and extrudes it through the holes in the die.

d) Ribbon Blenders

Ribbon Blender is a very fast and 100% efficient mixer to blend practically any dry powders, from food products to chemicals. Even liquids in small amount can be mixed in a very efficient way. e) Pellet Crumbler

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It is used for crumbling long and broader pellets into required smaller size. Crumbler feed is required to feed poultry birds in chick stage, as they cannot eat the bigger pellets. It consists of a set of two rollers rotating in opposing directions. One roller is fixed while the other one can be adjusted. f) Pellet Cooler The Pellet cooler is used to reduce the temperature of hot pellets from pellet mill to ambient temperature. If hot and moist pellets are not cooled, they may brake in to powder again. The cooler works on the principal of blowing air through columns of hot & moist pellets, which results in evaporation of moisture from the pellets. For moisture evaporation, heat is taken from the pellets leading to cooling of pellets. G) Screw Conveyor

Screw conveyors are used to convey material from one place to another place by means rotating screw type auger. Material can be carried either horizontally or vertically or at required angle. h) Maize Grinding Plant

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These plants are used for manufacturing maize powder These plants can be also used for grinding any type of cereals. In these type of plant raw material is feed to grinder or hammer manually. The ground material is sucked by the blower which is conveyed to the cyclone pneumatically. Cyclone separates material from air. Material can be bagged through feeder. 2.6.3 Power Consumption

For production of feeds Gazipur Plant needs 450 Kv power and it has full backup by Generator if power failure 2.7 Total Quality Management (TQM) Process of feed production:

Two types of finished feed produce in the Factory 1) Cereals or finished feed in mash form 2) Finished feed in pellet form. Every poultry product has quality requirements limit, which has indicated at BSTI standards. The range of quality requirements limit for both Mash and Pletted form are given below :

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BSTI standards, poultry feed requirements

Characteristic Broiler starter feed Broiler finisher feed Chick feed Growing Laying chicken feed chicken feed Breeder layer feed

Moisture %)

(maximum

11

11

11

11

11

11

Crude protein (N x 6.25) (maximum %) Crude (maximum %) Acid-insoluble (maximum %) Salt (as (maximum %) Source: fibre

23

20

20

16

18

18

ash

3.0

3.0

4.0

4.0

4.0

4.0

NaCl)

0.6

0.6

0.6

0.6

0.6

0.6

Poultry feeds Directory 2004-05.

In order to maintain above mention limit range the QFL maintaining Quality Pressure Points in the factory. Once quality personnel, machines and procedures have been established, control can best be maintained by applying effort at the quality pressure points in the mill. These pressure points are: i) Ingredient inventories.

Inventory programs provide manufacturers with a means of checking to see that the correct amount of ingredient has been used in a given time period, It has been pointed out that good ingredient inventory systems meet the following criteria: They are simple and understood by all; They include physical inventories; They are accurate;

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 They consider history and forecasts; They are used; ii) Bin cleaning.

If bins are not periodically cleaned, ingredients or feeds can build up on the sides, encouraging mold growth and cross contamination. Thus, finished feed and ingredients storage bins are inspected at least once each month and cleaned as needed. Consequently, prior to entering any bin for cleaning the following precautions are taken: Verify that the bin is suitable for entry (e.g., is it too hot? Are there detectable chemical fumes?) Verify that the lock out program has been activated and notify other operators that are entering the bin Be certain that a responsible, trained individual will remain with the person for the duration of his/her stay in the bin Verify that lighting, hoisting, safety and respiration equipment functions properly, and Verify that first aid equipment is well supplied and ready for use During cleaning, a minimum amount of water is applied to bins, since excess moisture can require time to evaporate, possibly encouraging mold growth and corrosion of metal bins. iii) Verification of equipment cleanliness and condition:

While maintenance procedures are ensure that equipment is periodically examined, certain critical points and equipment pieces are examined more frequently. Discharge gates and elevator boots are cleaned and inspected for wear or leakage once each week. Elevator head pulleys are checked for correct alignment, heat and wear once each shift. Turnheads are also examined for correct position and wear on a weekly basis. Scalpers or ingredient cleaning equipment are checked once each week

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iv)

Grinding:

If the hammermill and/or other grinding equipment does not operate correctly, then mixing, pelleting and animal performance may suffer. Thus, hammer condition and wear are checked daily. Magnets are cleaned and checked for correct operation daily or at the shift change. Grind consistency are checked once each shift using a U.S. # 8 sieve. v) Batch system validation:

While there is considerable opposition to the Food & Drug Administrations proposal to legally require batching and mixer validation, batch system validation can provide feed manufacturers with information that may not be attainable in any other way. Batch system validation is done on a semi-annual basis. If weight differences are more than 1%, begin by checking the following in the batching system Batch and micro-scale accuracy; Conveyor integrity (Is there a leak?); Bin integrity (Is there a hole in the bin wall); Turnhead position and maintenance (Does some feed get diverted to another bin?), and Mixer and batch scale slide gate operation (Does one batch leak into another?). vi) Mixing:

Mixing is probably the most critical step within any feed manufacturing situation. The attributed mixing inefficiency to Insufficient mix time Operation of mixers beyond designed capacity, and Worn altered or broken mixing equipment While equipment manufacturers have made great strides in providing their customers with durable mixers that rapidly and efficiently mix feeds, it is obvious from these data that many - 24 -

times mixers and the mixing operation is taken for granted or ignored. Batch mixers should be examined weekly to be certain that shafts, ribbon paddles or screws are in good repair and contain no buildup. Mixing times are checked at least twice each year. vii) Pelleting and Pellet Cooling:

Pelleting and pellet cooling is probably the most complex process within the feed mill. While pellet process controllers have made control simpler and more accurate, the following indicators of quality are examined on a regular basis a) Conditioning temperature b) Cool-Pellet temperature c) Moisture gain d) Crumble texture e) Pellet durability: iix) Meters and Scales.

If the mixing process is under control, whether or not the formula is made according to the nutritionists recommendation may well depend on the accuracy and adjustment of the scales and meters. Thus, each facility use test weight to check the calibration of scales weekly. Batch scales are be cleaned and inspected at least once each month, while micro-ingredient scales are cleaned and checked weekly. All scales are professionally serviced at least twice each year. Liquid metering devices are checked and adjusted as formula runs are changed. Metering devices are also checked periodically during long formula runs. ix) Truck inspection and cleaning.

Trucks are sometimes overlooked as a source of moisture, mold and drug contamination. Truck drivers should be held responsible for the soundness and cleanliness of their trucks (both inside and outside). However, it is important that mill workers ensure that trucks are clean and in good repair prior to loading x) Finished Feed Quality

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n many situations, feeds are used rapidly following manufacture and animals consume the feeds before any assays can be performed. However, finished-feed assays are necessary and important because they provide the mill with a final report card. 2.7.1 Sales Operations Maintained: Quality Feeds Limited (QFL) Maintained his sales center by the zone wise and depot wise. QFL divide all over Bangladesh by 6 zone and each zone have few Depot. The Six zone are : Burigonga Zone: Norsingdi Depot Brahmaputra Zone: Trishal Depot Shombugonj Depot Ghatail Depot Kalihati Depot Modhupor Depot Karnophuli Zone: Lalmai Depot Chaktai Depot Chandina Depot Chittagong Depot Rupsha Zone: Jessore Depot Takerhat Depot Barishal Depot Khulna Depot Faridpur Depot Jamuna Zone: Rangpur Depot Pabna Depot Jhenaidah Depot Rajshahi Depot Surma Zone: B.Baria Depot

2.7.2 Closing Balance Of all depots on August 2011: BURIGONGA ZONE: Sl No. Depot Name Broiler (Taka) Layer (Taka) Fish (Taka) Shrimp (Taka) Total

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1.

Norsingdi

2026935

1958968

2228318

6214221

BRAMHAPUTRA ZONE: Sl Depot Name No. 1 Trishal 2. 3. 4. Shombugonj Ghatail Kalihati Broiler (Taka) 49765 1172964 656429 Layer (Taka) Fish (Taka) 15226318 2423841 Shrimp (Taka) Total (Taka) 15276083 3758999 1756438 150250 388992

162194 1100009 238742

KARNOPHULI ZONE : Sl No. 1. 2. 3. 4. Depot Name Lalmai Chaktai Chandina Chittagong Broiler (Taka) 2070313 2623683 2970066 2324630 Layer (Taka) 554669 1413666 1229639 730480 Fish (Taka) 6303402 597793 4567831 321421 Shrimp (Taka) Total (Taka) 8928384 4635142 8767536 3376261

RUPSHA ZONE: Sl Depot Name Broiler Layer Fish Shrimp Total

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No. 1. 2. 3. 4. 5. Jessore Takerhat Barishal Khulna Faridpur

(Taka) 484796 813628 887604 982169 608489

(Taka) 290290 318317 1072444 922972 691280

(Taka) 1888727 40010 199498 741569

(Taka) 3098610 1300180

(Taka) 5762423 2472135 2159546

5402229

8048939 1299769

JAMUNA ZONE: Sl No. 1. 2. 3. 4. Depot Name Rangpur Pabna Jhenaidah Rajshahi Broiler (Taka) 2269506 1476565 2593625 161416 Layer (Taka) 4409344 789841 1471676 1691904 Fish (Taka) 40 1196935 1270811 659840 Shrimp (Taka) 2000 Total (Taka) 6678890 3465341 5336112 2513160

SURMA ZONE: Sl No. 1. Depot Name B. Baria Broiler (Taka) 702758 Layer (Taka) 1141231 Fish (Taka) 1777878 Shrimp (Taka) Total 3621867

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Quality Manager Ask the lab to recheck the assay and continue to examine the problem How was the sample taken? Was the sample representative? You may want to resample it if the material is still available. Is only one nutrient level out of control or are several? This could be clue as to whether a certain ingredient was left out of the formula. Was the regular crew operating the mill when the feed was produced. Check inventory records for any discrepancies between the actual and predicted inventory records. Check the scales and metering devices for correct adjustment. Check ingredient and finished-feed bins at the feed mill for hang-ups or bridging problems. Recheck the mixing time to be certain it is correct for the ration involved. Check the ingredient assay values to see if they indicate a deficient load was received. If a deficient load was received, contact you ingredient supplier immediately. Check the formula matrix to be certain that ingredient assay values are correct and reflect the values presently being received. - 29 -

After going through these 10 steps, it is possible that the organization may still not know what caused the problem. Laboratory personnel, the mill crew, the office staff, the nutritionist and several other persons have all become aware of the companys dedication to the production of high-quality feeds. If problems are consistently addressed as they occur. QFL always try to follow all these steps to maintain the Total Quality of the management as well as the product.

2.8

Sales operation Procedure of QFL :

As per instruction of Internal Audit Manager this report contain the sales procedure at a gleans. For preparing the report the whole sales procedure from clients order to delivery is considered. Details of sales procedures are describe in Appendix A/6 2.8.1 Procedures of Credit sales to dealers through depots

Process Controls Deliverymen from depots collect purchase orders from dealers Order confirmation under the depot. Dealers can directly make order after observing materials Depot managers checks orders and compares the available credit limit and repayment status, if any Prepares supply invoices and supplies goods in case of regular Depot manager signs invoices repayments and the outstanding is within credit limit and records and submits one copy to sale in dealers subsidiary wholesale department Prepares credit position summary of the dealers if credit limit exceeds or agreed repayments are not made and forwards the summary to wholesale manager for decision Wholesale manager places summary statement of depots in Wholesale manager and MD weekly credit review with MD sign the summary statement Wholesale manager issues instruction on the non-performing MD approve the instruction dealers revising the summary indicating delivery to be stopped issued by wholesale manager or to be made on increase of credit limit or rescheduling of

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repayment based on credit review with MD Depot manager accordingly either supplies goods raising supply Depot manager signs invoices invoices or ceases supply and updates the dealer subsidiary and submits one copy to the and wholesale department Accounts department receives from respective depot fortnightly Sales officer checks stock and cash accounting statement and books the sales and fortnightly collections in the system statement prepares booking summary

2.8.2

Procedures of Retail sales

Process

Controls
requirement reviews by

Stores stock position analyses by merchandising Supply to RIMS (Retail Integrated Merchandising System)

dept. and provides requirement for supply of goods Merchandising Manager in respect of categories of stores jointly with retail department marketing department RIMS prepare invoices as per supply requirement Head of RIMS supply

and send to CDC (Central Distribution Centre) for (Superintendent) compares invoices with supply requirement from Merchandising dept. CDC prepares packing list as per invoices with a CDC in charge signs packing list and delivery statement CDC delivers goods through carrying contractor Store Manager receives goods as per invoices and packing list Retail stores send sales proceeds by DD to Area Head Office daily and Area Head Office forwards the same to Accounts Dept. Accounts department deposits the DD to collecting bank and books the same in 1016 account with corresponding sales account Stores send stock and cash accounting statement 500 department checks fortnightly stock fortnightly to accounts department and cash accounting statements with daily sales mirror. delivery statement Any unusual incidents on way to stores are ensured by insurance policy

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Booking of fortnightly sales reviewed by Chief Accountant Accounts department adjusts 1016 account on receipt of bank statement 2.8.3 Procedures of Export sales

Process Controls Export department receives confirmed LC/purchase order Export Manager from customers shipment Export department send acceptance letter to customer Contract/LC/TT receives from buyer in case of direct

authorises

the

order Prepares commercial invoice and packing list and Export Manager and Chief Financial collects EXP Form Officer signs commercial invoice Communication with C&F agent C&F agent sends back to Export Dept. all documents after shipment Informs to banker and submits export documents for negotiation with bank Receives bank advice on collection of proceeds CFO reviews daily bank statement Accounts department books the sales in the system on the basis of invoices and on the basis bank statement 2.9 2.9.1 Organizations sales point: When order is received by Head Office :

First time QFL receives delivery order from party with details break up of goods through party appearance or over telephone. In this time party complied his payment by cash, D.D or T.T. When the party payment made by T.T than accounts officer contract with respective bank and confirmed T.T amount over telephone. Then cash is transferred to main cash and DD deposited in companies bank account. After confirming payment a money receipt copy is given to party. Then the delivery order is transferred to factory sales department throw fax or over telephone. Then computer print delivery order issue as per head office delivery order by sales officer. Than the order transfer to factory store department and store department issued a challan & sales

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invoice. A sales invoice has three copies, as party copy; as store copy and accounts copy which is transferred to head office accounts department. 2.9.2 When sales center is Gazipur Plant, Bogra Plant or Depot :

First time we receive delivery order from party with details break up of goods through party appearance or over telephone. In this time party complied his payment by cash* and D.D . Then D.D transfer to head office and amount of cash** transferred to factory cash. After confirming payment a money receipt copy is given to party. Then the delivery order is transferred to factory sales department throw fax or over telephone. Then computer print delivery order issue as per head office delivery order by sales officer. Than the order transfer to factory store department and store department issued a challan & sales invoice. A sales invoice has three copies, as party copy; as store copy and accounts copy which is transferred to head office accounts department.

3.0

Analysis of Inventory Control Management

Inventory control management of QFL is noted as under: 3.1 Planning:

The planning and control of inventory from product design to final delivery are considerable strategic significance to the management of QFL. Inventories serving as a cushion between the production and consumption of goods exists in various forms in the factory: Raw materials awaiting processing Inventories for partially completed products; Finished goods at the factory, in transit, in warehouse distribution center; The manufacturing control division examines the production in terms of existing and contemplated production schedules. The store department, planning department and manufacturing department combine analyze the following activities; i. Forecast demand for the next quarter ;

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ii. iii. iv. v. vi.

Determine acquisition lead time. Plan usage during the lead time. Establish quantity on hand ; Place units on order; Determine reserve or safety stock requirements.

Using these six steps, the Feed Mill Manager tracks and stores information One step forward and one step backward in the process. Ingredient information, including vendor and lot numbers, are tracked from purchase through manufacturing. Finished feed information, including customer and lot numbers, are tracked from feed order through manufacturing to delivery to a specific group.

3.2 3.2.1

Functions and Procedures of Stores Department Introduction Detailed procedures and necessary documentations for receiving of raw materials stores, storing, consumption and accounting are contained in Inventory Management Procedure Manual. Under the set-up the main operation relating to inventory is performed through Stores Department having separate stores for each type of inventory i.e. Raw Material, Finished Goods and Stores etc.

3.2.2

Functions of Stores Department Functions of Stores Department are broadly as under:

To receive and issue Inventory items and to maintain records of Inventory receiving, issuing and balancing in both quantity and value To keep Inventories in proper condition To carry out periodical physical verification of Inventories and reconcile with the book balances - 34 -

 To ensure proper segregation of high value items To carry out such other activity as would be necessary for proper management of Inventories

3.2.3

Receiving and Inspection of Inventories Receipts and Inspection Section performs the functions of initial receiving and inspection of goods, which are procured through Procurement Unit. This Section receives Purchase Order in advance from the Procurement Unit against which they are responsible to take delivery from the suppliers. The suppliers deliver the goods through 'Delivery Challan' in four copies, one copy of which is given back to the supplier as a token of acknowledgement of receipt of the goods and the others are retained. Receipts and Inspection Section, on receiving the goods: Record the deliveries in Goods Received Register Check the Purchase Order with the supplier's Delivery Challan Make sure that the quantity and description correspond with the Purchase Order and sign the Delivery Challan with comments, if any any Finally hand over the goods and the Delivery Challans to the Stores Department by obtaining acknowledgement in the Goods Received Register. The Stores Department raise the Goods Received Note in 4 copies and distributed as under: 1 2 3 One to Receiving & Inspection Department One to Procurement Department along with the Delivery Challan One to Finance/Accounts Department along with Delivery Challan - 35 Write to the supplier regarding shortage, damage, replacement/rejection, if

4 3.2.4

One to be retained at the Stores Department along with the Delivery Challan

Procedures for Raw Materials and Stores Requisition/Issue/Consumption When the Production/Consuming Unit requires raw materials/stores, they make three copies of Requisition. All the copies are signed by authorised person. Storekeepers have full details of the name, designation and specimen signature of the persons empowered to approve Requisition/Issue maintained by the stores for this purpose. On receiving the copies of Requisition/Issue Note, Storekeeper/Store Assistant makes entry of the same in the Goods/Stores Requisition Register (G/SRR) and in Bin Card and Stores Ledger upon issue of the stores.

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The distribution of the copies of G/SRR are made as under: First copy is retained in the Store as evidence of having made the issue. Second copy is sent to Accounts along with the GSRN Third copy is sent to Production/Consuming/Requisitioning Unit as evidence of the receipt of demand. Details Flowchart for Purchasing, Receiving, Recording and Paying Materials is Shown in Appendix (A/6) 3.2.5 Gate Pass System Goods/Stores issued to from Store is accompanied by Gate Pass which is prepared in three copies, two copies of which is handed over to the recipient of the goods/store who leaves one copy to Gate Keeper. The Gate Keeper will check all the goods passing out of the Store with reference to the entries in the Gate Pass and the copy of Store Requisition /Issue Note accompanying the goods. If the goods agree with the Gate Pass, he uses the stamp "PASSED" on the Gate Pass with signature and date and then allows the goods to go to the requisitioning person retaining the Gate Pass. The Gate Pass is then sent to the issuing authority after recording the same in 'Stores Gate Pass Register. 3.3 Stores Inventory and Reconciliation 3.3.1 Physical Verification of Stores

To ensure accuracy of quantitative book balances, physical verification of inventories is carried out. Before commencing the physical verification of inventories, the following preliminary works are done: (i) Stores Inventory Sheet is prepared at every Storing point in order to track and location giving the name, classification, code number, etc. (ii) All Storing Points ensure that the stores are so arranged that they can be checked in

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the shortest possible time. (iii) Both Storing Points and Stores Accounting Section ensure that stock records are up to date. (iv) Programme is prepared by the Audit Department for stock taking, allocating the exact duties to the staff members. Specific person are also deputed from the Storing Points. 3.3.2 Treatment of Discrepancies Verification of stores often reveals discrepancies in actual quantities as compared to their book balances. Such discrepancies, small or big are adjusted. But before making adjustment each discrepancy is carefully investigated and the results reported to the Authority. If any adjustment is called for, it is done suitably only with the prior approval of the appropriate authority. After an adjustment has been approved, the same is noted in the Stores Ledger, and Bin Cards. 3.4 Purpose of Inventory Control in QFL: Purpose of inventory control is to: 1) Manage inventories at predetermined levels to stabilize investments in inventories. 2) Provide the best type of service to customer 3) Produce at maximum efficiency, The following tools are used for feed manufacturers to control the inventory of the organization. Materials (feed ingredients, fuel, power, etc); Machinery (formulation equipment, feed delivery systems, feed storage equipment, feed milling equipment, etc.); People, and Procedures.

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Feed Quantity and Quality control programs blend these tools to deliver feeds that consistently contain the formulated nutrients in an available form and contain minimal levels of toxic substances. All actions directed towards ensuring the product meets the specifications established by the manufacturer. Inventory Control System and techniques is based on these fundamental principles: Maximize profit within specified time and resource allocations; To minimize total cost; Obtaining maximum use of inventory investment Minimizing surplus stock and absolute materials; Normal distribution of demand and supply forecast errors; Ability to meet delivery at proper time to the consumer 3.5 Stock Levels and Order Point of QFL :

Maximum and minimum stock level is determined as per management guideline and stoked. The Minimum limit of raw materials has been describe to the Factory Manager. He is responsible to maintain that limit. Some Limit of Raw Materials Both For Gazipur Plat and Bogra plant are as under. Raw Materials MAIZE SOD S. FULL FAT MEAT BEAN RICE POLISH MASTER OIL FISH MEAL LIME STONE MEDICINE PUM OIL Gazipur Plant (MT) 1500 1125 500 1500 500 1500 100 100 25 20 Bogra Plant (MT) 400 250 125 400 125 400 25 25 5 5 Total 1900 1375 625 1900 625 1900 125 125 30 25

To maintain the minimum limit the factory manager is authorized to submit requisitions request to the purchase department.

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Order points and/or reorder points are based on usage during the time necessary to requisition, order, and receive delivery of materials plus an allowance for protection against stock-out. The order point is reached when inventory on hand and quantities due in are equal to the lead time usage quantity plus the safety stock quantity. The formula of Order Point is : I + QD = LTD + SSQ, When; I = Inventory QD = Quantities due in from orders previously placed, materials transfers, and return on stock; LTD = Lead time quantity equals average lead time in months, weeks, or days multiplied by average months, weeks, or days use SSQ = Safety stock quantity; Although this formula is used for reorder the material, but QFL sometime use fixed format and historical data to determine the reorder points. The safety stock quantity is varied from local purchase and foreign purchase. For local purchase the safety stock of the quantity must be stored for at least 15 days. For Foreign purchase the safety stock of the quantity must be stored for at least three months; Reorder point is triggered when a materials ledger cards shows that the balance on hand has dropped to the order points. The materials control department reviews materials items, forecasts usage and lead-time. The store management department examines the production in terms of existing and contemplated production schedules. After inspections, examinations and internal audit the purchase requisition application send directly to the top management of QFL. If management agree the requisitions orders , it send to the purchase department. Purchase department are responsible for both Local and Foreign purchase;

The purchase department makes two types of purchase: - 40 -

Local Purchase: Purchases are occur without tender, it based of daily price survey. Foreign Purchase : Under Letter of Credit by Commercial Department. 3.5.1 Procedures of Local purchase

Process

Controls

Purchase department raises purchase order in four copies Purchase Manager and Managing and places to Managing Director for approval Director approves the purchase order One copy (white) is for supplier, one copy (pink) for controlling dept., one copy (blue) for acceptance maintained in concerned department and another copy (yellow) for filing. Verification by the controlling officer Controlling Manager verifies purchase order

Purchase department receives back and send two copies of purchase order to supplier Supplier retained one copy (white) and send back blue copy of purchase order to purchase department i.e. acceptance copy Supplier delivers goods to factory premises Verification of delivered goods by security and controlling department Controlling Officer fills up upper part of Receiving Note Controlling Officer checks and put and unloaded at receiving room for Quality test Goods In seal to documents. Stock Keeper takes actual count in presence of controlling Stock Keeper takes actual count. Lab supervisor. After satisfactory quality certification, Stock test and certification of quality by Keeper enters necessary information on lower part of Chemist Receiving Note and receives goods at stock room and enters in Stock Card All documents are send back to Purchase Department for goods controlling i.e. standard price and variance and places to Account Department Accounts department deducts tax and VAT at source and booked in accounts Makes payment to supplier

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3.5.2

Procedures of Foreign purchase

Process

Controls

Purchase department raises requisition order with the Purchase Manager and Managing Director concern of Purchase Manager and presents to Managing approves the requisition order Director Correspondence made for quotation with supplier Based on quotation issues six copies of purchase order: Two copies for supplier One copy to bank for L/C opening One copy to customs for clearance One copy retained as office copy Collecting Proforma invoice from supplier Opening L/C Shipment of raw material on supplier and informing to Bata about the shipment Submission of original shipping documents by exporter through negotiating bank Receiving original shipping documents from L/C opening bank and bank advice for payment C&F agent to release the goods and conducting joint survey by customs and release the goods from customs Clearing the goods after payments of customs duty, VAT, AIT by C&F agent MD approves purchase order

Request letter to bank for opening L/C under dual signature

Correspondence with C&F agent signed by Purchasing Manager Payment advice issued to bank jointly signed by MD/CFO along with other signatory Controlling officer fills up upper part of Receiving Note and Controlling officer checks and put Goods unloaded at receiving room for quality test In seal to documents Stock keeper takes actual count in presence of controlling Stock keeper takes actual count. Labtest supervisor. After satisfactory quality certification, stock and certification of quality by chemist keeper enters necessary information on lower part of receiving note and receives goods at stock room and enters in stock card All documents are send back to purchase department for goods controlling i.e. standard price and variance

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3.6

Manual Systems of Depot for inventory control:

Quality Feeds Limited is a leading company in manufacturing and marketing of poultry feed, always wants to provide better service to the customers. In order to make companys product available in the market and survive to the agent /sub-agent as per make available when need, delivery is made through several depot. To ensure best performance from depot personnel, this manual is used as a guideline. a) General 1. Location of depot is determined considering convenience of local agents.

2. Necessary steps are taken to provide security of the store and office equipments and goods. 3. DD/PO, Money receipts book, Delivery order book, and Challan book are kept under proper custody. b) Function of depot 1. Storage of product as per demand of local agent and sub agent and as per management guideline. 2. 3. Delivery goods to the local agent and sub-agent. Maintain proper Books and records of sales and stock position.

c) Storage of Feed: Maximum and minimum stock level is determined as per management guideline and stoked accordingly. Necessary steps are taken to uphold quality of product. Product is kept in proper manner. Non- Stock items (like damaged, torn and returned) are kept separately from stock. Stock over one month is returned to factory store. Necessary steps are taken to protect product from damage by rats, insects, rainwater or damp floor and wall. - 43 -

d) Delivery: FIFO (first in first out) method is strictly followed to deliver product. Delivery to the agent and sub agent against DD/PO (issued in companys name) only. Delivery is made as per approved maximum limit by Head office only. Delivery against credit limit is made as per approved credit limit only. On emergency, delivery can be made against vocal / over telephone conduct from an authorized person like sales in-charge. Delivery against contract growing is made as per approved limit of Contract growing and sales officer must follow up if dues are adjusted in due time and he will issue warning letter(s) to the failure party with CC to proper authority. Money Receipt (Accounts Copy), Delivery Order and Challan copies are sent to Head Office promptly. If any delivery made against any kind of adjustment or compensation as per instruction from proper authority proper documentation are confirmed in this regard.

e) Books & Records The following books / ledgers will be maintained by officers specified below: Store ledger is maintained for finished product. Bin Card is maintained for each and every item. Party ledger is maintained. (Delivery against credit limit and contract growing should be marked up) Fixed asset register is maintained. Daily and Monthly stock and sales statement is prepared.

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 Monthly party wise sales statement is prepared. Attendance and Leave Register is maintained. Vehicle Register is maintained. Overtime register is maintained. Logbook should is maintained. f. Return of Goods: Initially agent / subagent will submit an application to RIC against objectionable product. Physical verification will be confirmed by RIC and inform to DGM (Marketing)/Manager Sales. If application of the agent is accepted only then return goods can be accepted. Returned goods will be sent to factory store immediately. 3.7 Valuation of Inventories

Inventories in hand are valued as follows : a) Raw materials : Raw materials are valued under FIFO method at purchase cost which includes invoice price, duties, transportation charges and cost incurred in bringing the inventory to its present location. b) Finished goods: Cost of Goods includes the followings : i) ii) iii) iv) Raw materials consumed Other direct materials consumed Utilities (gas, electricity and diesel) consumed Production overheads.

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4.0

Market and Industry Analysis

4.1 Market Analysis

The Graph of market analysis (Appendix:A/9) shows although there are many competitions in feed market but QFLs Position in this field is very strong. In fish feed field QFL is highest ranked and enjoying 20% of total market share, In Poultry feed field QFL is ranked 5th and enjoying 9% of total market share, In Shrimp feed field QFL is ranked 3th and enjoying 13% of total market share so we can say that QFL has a sustainable position in all three feed.
4.2 Industry Analysis

From above analysis and observation I have tried to find out the Strength, Weakness, Opportunities and Threat of the Company through SWOT analysis From above analysis, I have tried to discover Strength, Weakness, Opportunities and threat of QFL through SWOT analysis : Strength 1) Quality Product 2) Strong Commitment 3) Goodwill 4) Strong Management Weakness 1) Lower capacity to fulfill the demand 2) Insufficient EDI systems. 3) Lack of computerized facilities 4) Low Margin of Profit 5) Complex marketing Channel Opportunities 1) Broad Market 2) Mounting demand for new product innovation 3) Favorable environment 4) Encouraging government policy Threats 1) Competitors 2) Market fluctuation 3) Diseases 4) Increasing Transport Cost

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Findings:
Increases chicks price and medicine price is the main threats of poultry business. Day by Day increased poultry feed there are another main reason losses of poultry sectors. In Competitors market Fish Feed Field QFL is highest position in Bangladesh.

Quality Feeds Limited is a leading company in manufacturing and marketing of poultry feed, always wants to provide better service to the customers.

Quality Feeds Limited Inventory Control System and techniques is based on to minimize the cost and obtaining maximum use of inventory investment.

QFL has a strong marketing channel through which sales are made all over the country to the customers.

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5.0

Recommendation
Quality Feeds Limited although holds a strong position among the competitors in the Poultry Feed Manufacturing Industry of Bangladesh, still it has many scope to increase the efficiency to carry out and expand the business. There are some recommendations for the company, The company Quality Feed Limited (QFL) should take little more risk in innovative product. QFL should increase the production capacity, because recent demand for Poultry Feed is increasing day by day. QFL also should increase its number of employees. Few employees have to handle a large number of customers and suppliers. QFL can go for business diversification, such as agriculture and fisheries project Management Information System should be improved. There is no human resource department in the company, so the company should open this department to increase the efficiency of the employees. QFL should open more Depot, and increase its agents so that it can reach the ultimate customer more closely.

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Findings:
Increases chicks price and medicine price is the main threats of poultry business. Day by Day increased poultry feed there are another main reason losses of poultry sectors. In Competitors market Fish Feed Field QFL is highest position in Bangladesh.

Quality Feeds Limited is a leading company in manufacturing and marketing of poultry feed, always wants to provide better service to the customers.

Quality Feeds Limited Inventory Control System and techniques is based on to minimize the cost and obtaining maximum use of inventory investment.

QFL has a strong marketing channel through which sales are made all over the country to the customers.

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6.0

Conclusion:

The next decade will see significant changes in restructuring, mergers, acquisitions, amalgamations, joint ventures, diversification, integration and efficient service chains, ecommerce and use of the latest information technology in global tenders, trading, export/import and other commercial activities in Feed Manufacturing Industry. At the root of all these developments there will be scientific development of feed manufacturing technology. The Bangladesh feed industry should adopt technology and scientific formulations, for production of animal feeds. Compared with other companies in poultry feed industry in Bangladesh, QFL is most efficiently managed organization rapidly progressing and very much keen to adopt new technologies for its growth. The management of the company always welcomes suggestions from the line and staff managers, customers, and suppliers for improvements. The mentioned recommendations will help the company to grow rapidly to lead the market in and outside the country.

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References:
1) Annual Reports of QFL (2003,2004,2005) 2) Audit Reports of QFL 3) Bangladesh Poultry Directory by Md. Golam Mostafa Rob 4) Internal MEMO of QFL 5) Web Sites.

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Appendix

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