Industry analysis and supply chain management of Lafarge Surma Cement Ltd.

Abstract

Bangladesh Cement Industry currently holds an installed capacity of 33-35 Mn MT, while it can supply 25-27 Mn MT cement, efficiently. However, the demand is at lower-end, hovering around 18-20 Mn MT. As a result, the industry possessed with overcapacity. Despite industry-wide overcapacity, per capita cement consumption is still very low, with 107 KG in Bangladesh, in comparison to its regional peers, like 210 KG in India, 265 KG in Pakistan, 310 KG in Sri Lanka and 570 KG in Korea. Backed by ongoing and upcoming infrastructure development activities, we do expect and believe that, demand may flourish and spike up cement consumption, in the days ahead. Hence, industry leaders with exceptionally higher installed capacity may see higher capacity utilization rates, merging to industry average utilization rate of 60-65%. The good news is that, for the last several years, 100% demand for cement has been filled up locally. Notably, some companies have also been exporting cement to India, while some others are expecting to export cement in Nepal and Myanmar. (IDLC Finance Limited, 2015) Supply Chain Management means stream of merchandise from the assembling association to end client through distinctive mediums. In this report different elements of Supply Chain Management are extravagantly examined. The real capacities are: Transportation Management, Distribution Management, Inventory Management, Cost Management, Payment Management, Supplier Management, and Customer Service Management. Alongside the hypothetical parts of these capacities, this report additionally gives a framework how "Lafarge Surma Cement" works its Supply Chain of Cement. This association has the main completely coordinated cement plant in Chhatak, Sylhet; while its head office arranged in Dhaka. LSC has six terminals in better places of Bangladesh which bolster its conveyance system. In this report, the obligations of mine in different regions of LSC head office are depicted here. I have worked in three departments. For the most part I included in Logistics department, and incompletely I worked in Human Resource Management and Corporate Social Responsibility. At last, from my experience of three months entry level position I have watched some missing of LSC. I attempted to give suitable suggestions to the change of Lafarge Surma Cement Ltd.