Notre Dame University of Bangladesh

Assignment On

The drives of supply chain performance analysis in

APEX Company in Bangladesh

Course Title-
Supply Chain Management

Course Code- 5204

Submitted By Submitted to
MD.YEASIN AZIZ Afrista Birjis
ID no: 2001980020
SHAKKHAR SARKER Lecturer of Management
ID no: 2001980018
DIMOS MUKHIM Department Master of Business Administration
ID no: 2001980013
SABRINA ASMA MEEM Notre Dame University Bangladesh
ID no: 2001980019

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 Cover letter

16th April’ 2020

Afrista Birjis

Lecturer of Management

Department Master of Business Administration

Notre Dame University Bangladesh

Subject: Letter of Transmittal

Dear Madam,

Here is the report assigned that on the topic as per your request. The report has been completed
meaningfully and correctly, as much as possible. I am submitting my report on the drive of supply chain
performance analysis in APEX Company in Bangladesh.
I would be happy if you read the report carefully and I will be trying to answer all the questions that you
have about the report.
Sincerely Yours

...............................

Md. Yeasin Aziz

ID no: 2001980020

Master of Business Administration (MBA)

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 Table content

SL NO. Particulars Page

01 Executive Summary 5

02 Company Profile & Information 6

03 The Company Sourcing 11

04 The Company Product Pricing 16

05 The company Facilities 18

Inventory

06 Transportation 19

07 Recommendation & Conclusion 21

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 Executive Summary

The report portrays the supply chain six drives of Galleries Apex, how Apex
following the six drives of supply chain activities.in report we following the
all activity’s how it working .

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 Overview of the APEX in Bangladesh

Company Profile & Information

From Bangladesh It was established in 1975 and is still continuing production. The company exports
footwear products to major shoe retailers in Western Europe, North America, Nepal, India, China and Japan.
The company has revenues of USD 84 million in 2008. Apex-Adelchi pioneered the export of value added
finished products export in the leather sector of Bangladesh and is also involved in the local footwear retail
business with the second largest shoe retail network in the country. The company has equity, technical and
marketing participation from La Nuova Adelchi one of the largest footwear manufacturers of Italy

Apex Footwear Limited (AFL) is the leading manufacturer and exporter of leather footwear from
Bangladesh to major shoe retailers in Western Europe, North America and Japan. AFL established the
export of value added finished products export in the leather sector of Bangladesh and is also involved in
the local footwear retail business with the second largest shoe retail network in the country.
The company was Public listed and traded since 1993, AFL
Apex is the local manufacturing and retail wing of Apex Footwear Limited. While AFL has mainly earned
both critical and commercial fame through export of high quality leather footwear in the international
arena, Apex make use of that expertise to provide high quality, fashionable footwear to the Bangladeshi
consumers. With over 220 own retail outlets and 380 authorized resellers, Apex ensures nationwide
coverage of its diverse range of footwear for its consumers.
Through its nine internal brands, namely Venturini, Apex, Sprint, Maverick, Moochie, Nino Rossi, Apex-
Adelchi Footwear Limited is a leading manufacturer and exporter of leather footwear Sandra Rosa,
Twinkler and School Smart and one international brand i.e. Dr. Mauch - Apex carries a huge selection of
shoes, sandals and non-footwear items, ensuring that each of our valued customer finds the product that is
just right for them.

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To enhance the quality of supply chain performance, supply chain drivers are much valuable. The drivers of
supply chain ensure the efficiency or responsiveness of the performance. Responsiveness and efficiency
cannot be obtained at the same time. So firms' aim is to obtain the optimization of the cost considering the
attainable responsiveness. In the service, APEX responsiveness is more important than efficiency to existing
in the market. Supply chain drivers drive the performance of supply chain management in a more effective
and efficient way. Efficiency is related with the cost minimization but it takes lead time to fulfill the
consumers' demand. On the contrary, responsiveness is related to time to respond. High responsiveness
pointed out the less time to response the consumer's demands. Low responsiveness means a long time to
response customer's demands. In the APEX Company, APEX Footwear Ltd are willing to consider even
little much time to satisfy the demands. So the APEX Footwear Ltd, APEX Pharma, APEX Investor, Grey,
Blue ocean and landmarks Footwear Ltd should always be ready to provide service to meet consumer's
demands. Responsiveness is an integral factor. High responsiveness ensures high satisfaction of the
consumers' demand. Drivers of supply chain management play a vital role to ensure the responsiveness of
the APEX Company. Apex is committed to earning the highest level of respect of our customers, by adding
value to our products and to enhance the customer experience by assuring a memorable and state of the art
shopping atmosphere. With a separate factory for retail chain, a central distribution center and very own 254
retail outlets, Apex ensures that we always near our customers.
Drivers of supply chain management can be segregated in to two parts regarding the operation of the
drivers.
 Logistics
 Cross functioned

Company Promise
Delivering the best grade export quality shoes within this territory which made with premium quality
leather at a very reasonable price without compromising the class.

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 Company Logo

Corporate Mission to ensure the sustainable growth:

 To be a vendor of choice for the customers.
 To create the value for the shareholders.
 To be proactively compliant with.
 To ensure global practices and standards.
 To be a responsible corporate citizen
Core Values
“Respect for people”-
 Demonstrate respect by developing the people of the company and to help them to achieve high
performance standards.
 Treat all people with dignity.
“Integrity, Empowerment, & Courage”
 Honesty.
 Walk the talk sense of urgency.

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  Strive for speed and simplicity in everything the people of the company do

Company at a Glance

Number of Employees: (Source: Apex Footwear profile, About Us, Copyright 2016)
 More than 5,500 people (Among them 120 people are employed in the head office).
 7+ Italian and Indian resident expert technicians.
 Over 4500 people are employed in the factory.

In-House Facilities: (Source: Apex Footwear profile, In-House Facilities, Copyright 2016)
 Thermoplastic Rubber (TPR) sole molding plant.
 Leather sole plant.
 Components plant: (Insole, Counter and Toe puff).
 Cutting Dies plant.
 Leather finishing plant.
 Affluent treatment plant (ATP).
 Connected warehouse.
 Drinking water purification plant.
 Uninterrupted power supply.
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  Training facilities.
 Medical center and Child care.

Outlets across the country: (Source: Apex Footwear profile, About Us, Copyright 2016)
 Retail Outlets: More than 230 outlets.
 Wholesale Outlets: More than 60 outlets.
Production Capacity: (Source: Apex Footwear profile, About Us, Copyright 2016)
 15,000 complete pairs of shoes from unit 1.
 10,000 complete pairs of shoes from unit 2.
Export Markets: (Source: Apex Footwear profile, Global Market, Copyright 2016)
100 buyers from 40 countries.
 Germany.
 Italy.
 Japan.
 USA.
 France.
 Belgium.
 Austria.
 Netherlands.
 Switzerland.
 Sweden.
 Spain.

Market Share: (Source: Apex Footwear profile, About Us, Copyright 2016)
 (5%-6%) approximately in local market.

Product Range: (Source: Apex Footwear profile, About Us, Copyright 2016)
 Galleries Apex offers 400 different styles at 97 different price point.
Associate Business: (Source: Apex Footwear profile, About Us, Copyright 2016)
 Apex Tannery Limited.
 Adelchi Footwear Bangladesh Limited.
 Blue Ocean Footwear Bangladesh Limited.
 Apex Pharmaceuticals Limited.
 Grey Advertising Bangladesh Limited.
 Quantum Market Research Bangladesh Limited.
 Mutual Trust Bank.
Annual Financial Status: (Source: Apex Footwear profile, Financial Highlights, Copyright 2016)
 Net BDT 5,343,484,923 (June,2016)

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  Local Sales BDT 556,352,021.
 Net Income BDT 189,827,956.
 Total Asset BDT 13,264,975,72

The Company Sourcing

Overview of the Global Footwear Industry

The overall situation of the entire footwear industry throughout the world is pretty competitive because it is
a multibillion dollar industry and the presence of a large number of players in the global market. Market
researchers found that to gain the competitive edge in the market, the vendors are focusing on product
differentiation and creating brand equity as much as possible. Another research indicates that there is a
robust change happened in fashion products market from the last few years in contrast the growth of
footwear market will remain restrained in year 20152023 ("Global Footwear Market - Transparency Market
Research", 2016).
County-wide, the most lucrative market for the footwear products are already has been established in North
America, Europe and Asia pacific. However, worldwide North America has dominated the market in terms
of purchasing footwear products and the rate is 36.54 percentage in terms of revenue in 2014. But in the
sense of volume Asia pacific purchasing portion is 40.50 percentage in the same year ("Global Footwear
Market - Transparency Market Research", 2016). There are some latest data that I have mentioned below
about the top footwear exporters of 2015:

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 Overview of the Footwear Industry in Bangladesh
The footwear market of Bangladesh is characterized by a handful of large competitors with strong brand
image as well as a multitude of small competitors, either unbranded or with imitative names and designs.
While the large companies enjoy the economies of scale and provide high quality footwear at standard
prices, the small competitors provide cheaper quality shoes at much lower price. The competitors’ market
strength varies based on the geographical location and the target market. Their competitive strengths are
based on innovations in product offering, scale economies and a cost efficient supply chain. Some
competitors only have the resources to produce basic leather footwear while other competitors have
introduced substantial value additions in product design.
The following gives a brief profile and major strengths and weaknesses of the main competitors of Apex
Adelchi Footwear Ltd.

Product capacity
The company has made renovation of old equipment with the installation of new and advanced machineries
which enabled the company to increase its capacity. This has enabled the factory to increase its capacity.
Following with the expansion project, now the designed production capacity of the company has reached
4500 pairs of shoes per day (single shift). Its machineries and layout are the best in the country. It produces
finished shoe and other leather articles for both local and international

Firm capabilities
Apex Shoe is recognized as a pioneer in modern shoe manufacturing in Ethiopia and is a well-regarded
brand. It is equipped with modern machinery and employs relatively skilled labor. Its capacity has allowed
the firm to be a substantial exporter. The firm has high overhead costs and faces a serious constraint on its
working capital. In addition, it suffers the disadvantage of not having its own tannery. The firm relies on
contact initiation from customers in its export markets, and does not have a formal marketing operation.
Product design activity is limited; the
Design for export items is provided by the firm’s customers

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 Product Offerings

Product line for men by Galleries Apex:

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Product line for women by Galleries Apex

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Kid’s product line by Galleries Apex

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 The Company Product Pricing

In every marketing plan pricing is one of the major component. Customer’s decision of purchasing a
product is extensively dependent on the pattern of price prepared by the company itself. Moreover, A
price of the product or service will determine not only the perceiving power of the customers by also
its brand positioning, influence the choice of marketing channel and mark whether it is promoted and
have an impact on the level of customer service expected by the customers who are targeted by the
particular company. To generate revenue a good sense of pricing is very crucial for the company.
Consequently the price is one of the essential part of the marketing mix. Generally, it is
acknowledged that pricing decisions are the most difficult to make because of the contact of the three
groups in the market such as customers, the trade and competitors. In addition the manufacturing
companies like footwear pricing decision often have to be made quickly and with limited because
pricing is the factor which has the direct effect on profit.
In last twenty years price has become increasingly important element in the marketing mix because
consumer have the highest awareness at every point of pricing. There are several reasons enumerated
below that clarify why the pricing is so important to create the brand equity:

 The inflation has increased but the real income is decreased.

 Completion within the global market has also been rocketed.
 Customers has better alternatives to compare prices. For example, websites that has the
statistics to compare the prices among different companies various goods or services.
 Where other component such as product, place and promotion affects the revenue
unhurriedly but a simple change in pricing has a very quick and direct effects on profit.
 Considering the rule of elasticity every small amount of changes can have relatively big
change in the sales

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 Pricing Strategies

There are some pricing strategies which are very rapidly used by different kinds of business
companies;

 Penetration Pricing: The organization often sets relatively low price only to increase sales for the
sake of increasing the share price. When the desired goal has accomplished by the company they
increase the price of that particular product.
 Skimming price: A preliminary price is set by the organization and then the slowly decrease the
prices so that the product can reach the wider market. Moreover, the main aim to do such thing is to
skim the profit penetrating step by step in the market.
 Competition pricing: In this strategy company usually set the prices according to the competitors
pricing. It can be lower than the competitors or can be same or higher.
 Product line pricing: In this pricing techniques pricing of the different products within the same
product range at different price point.
 Bundle pricing: under this pricing strategy company bundle couple of products at a reducing price
point so that they can increase the sales.
 Premium pricing: The Company set any particular line of products in a very high range so that
customers will understand the product is very high-class.
 Psychological pricing: The positioning of the pricing within the market place the seller will consider
the psychology of the pricing.
 Optional pricing: The company often sales the products in optional extras so that they can
maximize their turnover.
 Cost plus pricing: In this strategy of the pricing company regularly set a markup price based on how
much profit will be there and this method of pricing also ensures the production costs and it does not
take the demand in the market or completive pricing in account.
 Cost based pricing: This strategy is very similar to the cost plus strategy that is takes costs into the
justification but it will consider other factors such as the condition of the market while setting the
price.
 Value based pricing: This strategy depends on the value of the product to the customers rather than
how much it cost to produce the product reputation always helps to set the price in this case.

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 The company Facilities:

Inventory storage, fabricate or production site are the major concentrated facilities in the manufacturing
industry. But in the APEX especially for APEX Footwear Ltd, facilities are limited to the location of
inventory storage. APEX is a part of the service industry. Locations of the APEX, culture of those place,
national and international political circumstances are more important than the location of inventory storage.
Demand analysis would be considered as tools for determining the anticipated demand. After narrating the
demand plan, supply plan also should be developed. Demand plan alone cannot obtain the goals. Even the
accumulated goal of demand plan and demand plan is to fulfill the SAOP (sales and operation planning).
These tools can be an effective process to minimize the cost and enhance the responsiveness of the demand.

Inventory
Inventory is an important supply chain driver for the manufacturing industry. Raw material, WIP inventory
and finished inventory are usually more related to the manufacturing industry.
Inventory is a central process is manufacturing unit. This inventory is concerns to all departments from
planning department to selling Department in which it passes through Department, and commercial
Department etc. so managing of inventory wide scope in manufacturing company.
APEX Company are used to ensure three types of inventories. These are:
• Cycle inventor
• Safety Inventory
• Seasonal Inventory

Cycle inventories are the amount of inventory needed to satisfy the customer demand on the daily basis. It is
mandatory to keep ruining the services.
Safety inventories are required for the uncertainty and for the purpose of meeting consumers’ uncertain
demand. So the firms are required to store the optimum level inventory for handling the uncertainty.
When used as an industrial term, applies to the building of machines, structures and other equipment, by
cutting, shaping and assembling components made from raw materials. Small businesses that specialize
metal are called fab shops
Steel fabrication shops and machines have overlapping capabilities but fabrication shops generally
concentrate on metal preparation, welding and assembly aspect while the machine shop is more concerned
with the machining of parts. APEX uses only prime quality steel and plants procured from leading players in
the industry. APEX has state of art material processing system facilities including Indian largest laser cutting
machine. And excellent production engineering system set up a highly experience and technically qualified

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term of engineer. Based on our customer’s drawing and design, APEX manufactures dynamically stressed
machined fabrications conforming to all specification laid down by the customer.

Transportation

Moving goods smoothly, efficiently and quickly is the principal value proposition demanded every day of
logistics services providers.
Apex Unimagined Ltd. (AUL) provides a broad array of management services designed to help our clients
compress cycle time, lower overall product costs, maximize supply chain efficiency, improve inventory
control and enhance customer satisfaction. We are committed to bringing innovative ideas that balance
technology, resources and expertise to solve real-world logistics issues.
With your business growing up annually, Apex Unimagined Ltd. (AUL) delivers the resources to ensure
proper documentation, precise classification services, and expert trade consulting for successful import or
export transactions. Apex Unimagined Ltd. (AUL) also understands the importance of security throughout
your supply chain. Our ongoing investment in this area has uniquely positioned us as a market leader.
As a provider of outsourcing solutions, Apex Unimagined Ltd. (AUL) is ideally positioned as a one-stop
resource center for integrated logistics, transportation management, warehousing and distribution, inventory
control, materials handling and information services. And, our dedication to collaboration and teamwork
with customers ensures long-term, successful partnerships that provide strong planning and effective
implementation, and continually deliver value on a worldwide basis.
Under its present logistics facilities, AUL can offer Off-dock warehousing and multi-shippers cargo
consolidation service and can ensure maximum stowage of a container.
AUL takes responsibility for documentation on behalf of customers with the intention to eliminate
customer’s documentation hassle

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 Inland trucking and Door delivery:

We offer transport of goods from point to point within BANGLADESH with various kinds of cargo, such
as: Long-haul full trailer load, specialized equipment, flatbed and over dimensional trucking, express truck
service. In the near future we will arrange trucking the container to/from Nepal & Bhutan.
Packaging :
To ensure the safe delivery of our client’s possessions over long distances calls for specialized care, we
provides that extra level of protection to ensure the safe transportation of everything form a small antique
vase to major furniture items. Specifically designed cartons are used for packing within the executive
family’s home and because many international moves require shipping containers, the container itself is
loaded and sealed at the residence.
Project cargo handling:
Our company has the capabilities to handle the transport of heavy machinery, industrial plants and other
cargoes needing specialized equipment and expertise. As your business partner, our goal is to deliver
superior service and innovative transportation and logistics solutions that create advantage across your
supply chain and with your customers.

Warehousing & Distribution Services:

We can offer a full range of warehousing and distribution services in our leased modern public warehouses
(both bonded & non-bonded) which is equipped with electronic & mechanical safety devices and with light
security and CCTV systems.

Empty Container Storage Facility:

We are in a position to offer round the year contract of OFF DOC operator’s facilities
And can offer storage of container’s on a basis of BDTK 20/20ft and BDTK 40/40ft per days round the year
with standard maintenance of containers.
We assure DAY NIGHT 24 hours stuffing facilities in Off Doc with faster transfer to loading the export
containers on to first available sailing vessel.

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 Recommendation & Conclusion

In the case of pricing strategy implementation, Apex is only focusing on three or four pricing strategies till
now. But for achieving amount of revenue in the long run, the company needs to focus on other pricing
strategies such as premium pricing, bundle pricing, etc. Regarding promotional activities. Hence, maximum
customers from the rural area would not hear about the product. Apart from that, Apex only offers their
premium product line sub-brands like Venturina and Maverick to certain divisional areas. In this way, they
lose out on a lot of customers.
Apex has strived a lot for its effective pricing and promotional activities over the last few years and recently,
it has shown great potential of becoming the market leader should they introduce more strategies into their
account. It seems that they have maximized their brand equity well because people nowadays have a
tendency to visit Apex when it comes to buying shoes.

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