“OPERATION MANAGEMENT

PRACTICES OF TRANSCOM
BEVERAGE LTD”
Submitted to:
Md. Mesbah Uddin
Assistant Professor
Department of Business Administration
University of Asia Pacific

Submitted By:
1.Abida Sultana
Reg:21306032
2. Mst. Marufa Akter Mou
Reg: 21206041

3.Asif Hasan
Reg:21206031

3.Kaysar Hamid
Reg:21206034

Course Name: Production Operation Management

Course Code: POM 501 & 601
Department of Business Administration
University of Asia Pacific
 Letter of Transmittal

16 September 2022

Md. Mesbah Uddin

Assistant Professor
Department of Business Administration
University of Asia Pacific

Subject: Submission of Report

Dear Sir,
With great pleasure we are submitting our report on “Operation management practices of
Transcom Beverage ltd” based on our learning. This report has been submitted as an important
requirement of MBA curriculum. The report experience has provided us with an opportunity of
having an exposure to the working environment and on the job experience in the beverage
company. We have found the study to be quite interesting, beneficial & insightful.

We have tried our level best to prepare an effective & creditable paper. We hope you will find
this paper’s significance of all the labor we have put in it.

We welcome your entire query & take pride to answer them.

Yours sincerely,
Abida Sultana
Mst. Marufa Akter Mou
Asif Hasan
Kaysar Hamid

1
 Acknowledgement

To begin with, we would like to acknowledge and extend our heartfelt gratitude to Md. Mesbah
Uddin, our course Supervisor for providing us this great opportunity to work on this Report
concerning Operation management practices of Transcom Beverage ltd.” We are grateful to him
for guiding us and showing his best interest in helping us prepare this report. Without his
patience, sincere guidance and suggestion we would not have been able to finish this report
properly.

We perceive as this opportunity as a big milestone in our career development. We will strive to
use gained skills and knowledge in the best possible way, and we will continue to work on their
improvement, in order to attain desired career objectives. Hope to continue cooperation with all
of you in the future,

Sincerely,
Abida Sultana
Mst. Marufa Akter Mou
Asif Hasan
Kaysar Hamid

2
 Table of Contents

SL. Particulars Page

no.
Executive summery 1
1 Introduction 2
1.2 Objective of the study 3
1.3 Scope of the study 3
1.4 Mythology of the study 4
1.5 Limitations of the study 4
2 Overview of Beverage Industry of Bangladesh 5-9
3.1 Supply chain Management process 10
3.2 Products, Operation, Technology 11-12
3.3 Beverage production process 12-13
3.4 Product design process 13-14
3.5 Design of Facility layout for product 14
3.6 Production Layout for product 14-17
3.7 Inventory management 17-21
3.8 Quality control and Management 21-22
3.9 competitiveness 22
4 SWOT Analysis 23-24
5 Recommendations 25
5.2 Conclusion 26
Reference 26

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 Executive summary

The soft drink manufacturing industry makes and bottles non-alcoholic carbonated beverages;
the soft drink industry was historically based on a franchise system which characterized the soft
drink industry worldwide. Our study is based on mainly carbonated beverage. This study is
carried to find the practice of production and operation management of beverage industry of
Bangladesh.

Actually the practice of production and operation management in any organization is

mandatory. The company needs production and operations management for the smooth
operation of whole organization. Carbonated beverage entered into our industry in the later
part of 1980. At that time there were only few companies in Bangladesh. But by the change of
time and western culture influences it’s become very popular in Bangladesh. By year 2000
more than 12 Beverage Company operating business in Bangladesh and most of them are
foreign companies
The global marketplace with an environment friendly scenario provides chain management as an
incredible competitive gain for a trade. Supply chain managers plan, schedule, and control that
stream of objects to help the agency remain competitive and manipulate costs. They construct the
bridges between suppliers, companies, and consumers. TBL being the dominating beverage
venture in Bangladesh has been contributing to the economy by offering fine consumer product
in a comparatively sensible price. In this report we focused on the production and operations
management practice of beverage industry of Bangladesh This work is based on secondary
sources. The secondary sources of data include internet articles, some foreign and local websites
on beverages. The report reflects the forecast of demand, material planning, capacity planning,
analysis of their operation strategy also the tedious operation process, factory layout and supply
chain management execution from the production to warehouse from the distribution to ultimate
consumer. TBL aims to have a reduction in the inventory and simultaneously increasing stock
availability. The reader can get the overview of the total supply chain management process
through this report.

1
 1.0 Introduction

1.1 Statement of Research Problem:

The beverage manufacturing industry makes and bottles non-alcoholic carbonated beverages,
including fruit flavored beverages, colas, ginger ales, iced tea, iced coffee, soda waters, tonic
waters and other mixers. The industry also make other non-alcoholic beverages, including dairy
beverages, fruit juices and fruit drinks, bottled water, sports drinks and energy drinks. The soft
drink industry was historically based on a franchise system which characterized the soft drink
industry worldwide. The system provided a soft drink bottler with a defined market area and
exclusive manufacturing and distribution rights within that area. The bottler was restricted to
purchasing the proprietary formula concentrates or syrups from a single source - the franchise
company (franchisor) which held the registered trademarks of a number of soft drink brands. The
franchiser established pricing policies and provided overall marketing and brand promotion
support. During recent decades, however the major brand-owning soft drink firms have been
buying their former franchisee-bottlers, so that few independent bottlers remain. The industry
continues to serve primarily the domestic market After independence the food habit of
Bangladeshi people has been changed a lot. Besides our traditional food consumer of Bangladesh
like to take western food also after 1980s. As a result of global marketing this was not too hard
for the consumers. Different foreign food companies were established in Bangladesh. Beverage
industry is one of them. But more interestingly we don’t know beverage is also our cultural food
because beverage doesn’t mean only carbonated drinks. Yoghurt, soup and lacchi are also
beverage of our own tradition which consumed for the last 100 years in Bangladesh. But
carbonated beverage is new in Bangladesh and today our research is on carbonated beverage
industry in Bangladesh. Carbonated beverage entered into our industry in the later part of 1980.
At that time there were only few companies in Bangladesh. But by the change of time and
western culture influences it’s become very popular in Bangladesh. By year 2000 more than 12
Beverage Company operating business in Bangladesh and most of them are foreign companies.
Our study is based on mainly carbonated beverage. This study is carried to find the operation
management practices of Transcom Beverage Ltd.

2
1.2Objectives of the Study

1.2.1 Broad objective

• To evaluate the production and operations management practice of beverage industry of

Bangladesh.

1.2.2 Specific objectives

• To know about beverage industry in Bangladesh.

• To know about the practice of operation practices of Transcom Beverage Ltd.
• To know about the growth and productivity of the beverage industry of Bangladesh
• To know about the competitiveness in the industry.
• To know about the quality control of the beverage industry of Bangladesh
• To know about the quality of Bangladeshi beverage
• To know about the facility location and layout of the beverage industry of Bangladesh.
• To know about the strengths, weakness, opportunities, threats of this industry.

1.3 Scope of the Study

The practice of production and operation management in any organization is mandatory. The
total success of the company is trusted with the practice of production and operations
management. Any company cannot achieve their prosperity without maintaining production and
operations management. On the other hand, without production and operating business properly
success is not possible. So, the company needs production and operations management for the
smooth operation of whole organization.

3
1.4 Methodology of the study

This work is based on secondary sources. The secondary sources of data include internet articles,
some foreign and local websites on beverages and previous research papers. To collect the
information from relevant research and development done by the operation, production, quality
control, distribution, marketing, sales, service and other departments.

1.5 Limitations of the Study

• The main problem of the study is time constraint, because it is very short time to know
about the industry as well as of production and operations management practice in the
companies.
• Information that is collected beverage company’s website was not detailed.
• The access of the detail information of the companies is not shared in the mass.
• It was difficult to find out the practice of production and operation management form
different websites.

4
 2.0 An overview of Beverage Industry of Bangladesh

2.1 Types of Beverages

A drink, or beverage, is a liquid specifically produced for human consumption. In addition to

basic needs, beverages form part of the culture of human society.

Despite the fact that most beverages, including juice, soft drinks, and carbonated drinks, have
some form of water in them; water itself is often not classified as a beverage, and the word
beverage has been recurrently defined as not referring to water.

a) Alcoholic Beverages

An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in

chemistry the definition of an alcohol includes many other compounds. Example: wine, beer,
vodka etc.

b) Non-alcohol Beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and wine
but are made with less than .5 percent alcohol by volume. The category includes drinks that have
undergone an alcohol removal process such as non-alcoholic beers and wines.

c) Soft Drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink" and
the term "drink", the latter of which is nominally neutral but often carries connotations of
alcoholic content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit
punch are among the most common types of soft drink.

d) Hot Beverages

Hot beverages, including infusions. Sometimes drunk chilled.

✓ Coffee-based Beverages

✓ Hot Chocolate

✓ Herbal Teas

5
✓ Tea-based Beverages

A lot of other criteria are included in the term of beverage. Some substances may either be called
food or drink, or accordingly be eaten with a spoon or drunk, depending on solid ingredients in it
and on how thick it is.

2.2 Beverage industry of Bangladesh

The beverage Industry of Bangladesh consists mainly of six companies. Though there is a lot of
company consisting in this industry. But six companies are top in this industry. Those are Abdul
Monem Limited (Coca-Cola, Sprite, Fanta), Transcom Beverage (Pepsi, 7up, Mirinda), Akij
Group (Mojo, Lemu, Frutika), Partex Beverage Limited (RC Cola, Lychena), Agriculture
Marketing Company Limited [pran] (Pran up, max cola, cloudy lemon), Global Beverage
Limited (Virgin). Other companies are: The Acme Agrovet & Beverage Ltd., Shark Energy
Drink (Eurydice & Eleftheria Ltd.), K.Rahman and Company, MTC Beverage Ltd., Eastern
Beverage Industries Ltd., Sanowara Drinks and Bev. md. Ltd.

2.3 Historical Background of Beverage Industry

After independence the food habit of Bangladeshi people has been changed a lot. Besides our
traditional food consumer of Bangladesh like to take western food also after 1980s. As a result of
global marketing this was not too hard for the consumers. Different foreign food companies were
established in Bangladesh. Beverage industry is one of them. But more interestingly we don’t
know beverage is also our cultural food because beverage doesn’t mean only carbonated drinks.
Yoghurt, soup and lacchi are also beverage of our own tradition which consumed for the last 100
years in Bangladesh. But carbonated beverage is new in Bangladesh and today our research is on
carbonated beverage market in Bangladesh and consumer reaction to it. Carbonated beverage
entered into our industry in the later part of 1980. At that time there were only few companies in
Bangladesh. But by the change of time and western culture influences it’s become very popular
in Bangladesh. By year 2000 more than 12 Beverage Company operating business in Bangladesh
and most of them are foreign companies.

6
2.4 Transcom Beverage Ltd.

Transcom Beverage Ltd (TBL) is the exclusively PepsiCo Franchisee for Bangladesh, it
possesses the total franchisee and make utilize of their current vegetation in Dhaka and
Chittagong for bottling the celebrated delicate drink brands such as, Pepsi, 7UP, Mirinda, Cut,
Mountain Dew, Pepsi Count calories, 7UP Light and as of late included is Tropicana (mango,
Orange and Apple). The organization is booming with the proverb to convey economic boom
in Bangladesh and advancement toward a managing Beverage Company with the help of
illuminating & feeding each and each Bangladeshi by satisfying their regular beverage needs &
partners and turning in generally execution with reason, through capable and apt people. 2009
has been a breathtaking 12 months for TBL, triumphing incalculable breathtaking grants as
PepsiCo's uncommon bottling relate in Bangladesh. For its staggering and awesome mission
through brilliance TBL has been remunerated with endless prestigious national and worldwide
acknowledgments being ASIA BEST EMPLOYER BRANDS AWARD 2015 at a ceremony
took place on 12th August at pan Pacific Hotel, Singapore. The Gazipur factory of Transcom
Beverages Limited won the first prize from the Europe Audit Team for the most advantageous
overall performance in Pepsi Cola production. It outdated all different Pepsi Cola production
plant life in the world by way of scoring 900 points out of 1000 points.
2.4.1 History of TBL

Latifur Rahman set up Transcom Group in 1973 after W Rahman Jute Plants, the basic earnings
source for the Rahman family, was nationalized in 1972. This diverse endeavor home presently
has interests in numerous portions within the electronical and different segments in
Bangladesh. Transcom is the adjacent operator of universal brands like Pizza Hovel, KFC,
Pepsi and Philips, etc. Driving Danish affront maker Novo Nordisk has too chosen Transcom’s
pharmaceutical boss Eskayef as the sole producer of its items after China and India in Asia. A
few of the outside producers overseen by way of the gather incorporate: Pepsi, 7Up, Mirinda,
Mountain Dew, Eat less Pepsi, 7up Light, Aquafina,. Evervess, KFC, Pizza Cottage, Frito-Lay.
TBL begun its travel with starting tea ranches in 1885 and presently Transcom has developed
itself as one of the driving and speediest growing diversified commerce houses within the
nation with the business of over 10000 individuals. There are not numerous industrial groups
in Bangladesh that has a legacy of continuous improvements and progressive business pursuits
at a stretch over 125 years. Initiated with tea and later jute formed the base and backbone of the
7
family business. There is a marginal overall group turnover. In the late years, Transcom has
appeared as the biggest media house. And from the initiation of tea plantation now Transcom
beverage has become one of the major concerns of Transcom in franchisee at the year 2000
under an exclusive agreement with PepsiCo Inc of the USA.

2.4.2 Location of Transcom Beverage Ltd.

Transcom Beverage Ltd.

Bangladesh

Also have 2 regional

Main factory located in factories in
Telirchara,Mouchak. Chittagong and
Kaliakair,Gazipur Bogra

2.4.3 Products
TBL manufactures the famous Pepsi range of beverages-Pepsi, 7up, Mirinda Orange, Mirinda
Lemon, Slice, mountain dew and Soda. The main two products of Transcom Beverage Limited
are 7 up and Pepsi. Though there are three other supporting products (Mirinda, Slice, mountain
dew and Soda) added later. But the other products also achieve huge amount of profit. The main
products which are used in our country: All products packs size is – 250 ml, 500 ml, 1 liter, 2
liters.

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 3.0 Findings and Analysis

3.1 Supply chain Management Process

Production Retailer/
Supplier Procurement Assemblin Customer
g Distribution

Transcom has acquired an effective supply chain management which has made them
competitive and become a sophisticated supply chain environment all around the globe. The
whole supply chain management is divided into parts:
• Upstream
• Downstream

Upstream: It is basically related with the process before manufacturing. Here the raw materials
are the source to make a product. Transcom determines a balanced proportion of raw-materials
which won’t be over stock or under stock because due to this there might be surge in the
working capital cost if its overstock and lower inventory will obstruct production.

Downstream: It is done at the time of production starting from the collection of raw-materials

9
and then the manufacturing plants starts to manufacture its product by mixing the raw- materials.
TBL ensures quality at every stage of production so the mixing of raw-materials is done with
great sincerity.

TBL follows two types of Supply Chain Management. These are-

▪ Typical Supply Chain management
▪ Vertical Supply Chain Management
3.2 Products, Operations & Technology

Nonalcoholic beverages include sodas (carbonated soft drinks, or CSD), bottled waters, juices,
and a large variety of mixtures. Sodas account for about 60 percent of the market. The
manufacture and distribution of most national soda brands, including Coke and Pepsi, is a two-
tiered process. The primary manufacturer produces flavored syrup called concentrate that is sold
to local bottlers who manufacture and distribute the finished product. In a typical bottling
operation, the flavored syrup, corn syrup (sugar), and filtered water are mixed in appropriate
proportions, carbon dioxide gas is injected, and the finished soda product is poured into bottles
or cans, which are capped, labeled, and packaged.

➢ Batch Operation

o Mixing of basic ingredients in batches according to individual recipes

o Flexible system connected to a variable number of basic ingredient components
o Automatic production with manual feeding of the basic ingredients
➢ Inline Operation

o In-line blending of the soft drink products

o Syrup variations can individually be produced from the various ingredients available
in the basic ingredient dosing system

o Fully automatic production of the individual syrup ingredients

3.3 Beverage Production Process

Water Purification. Water is treated by a process known as super-chlorination and coagulation.

There, the water is exposed for two hours to a high concentration of chlorine and to a flocculants,

10
which removes such organisms as plankton; it then passes through a sand filter and activated
carbon.

Carbon dioxide and carbonation, Carbon dioxide gas given the beverage its sparkle and targy
taste and prevents spoilage. Carbon dioxide is supplied to the soft drink manufacturer in either
solid from (Dry ice) or liquid form maintained under approximately 1,200 pounds per square
inch pressure in heavy steel containers. Light weight steel containers are used when the liquid
carbon dioxide is held under refrigeration. In that case, the internal pressure is about 325 pounds
per square inch. Carbonation is effected by chilling the liquid and cascading it in thin layers over
a series of plates in an enclosure containing carbon dioxide gas under pressure. The amount of
gas the water will absorb increases as the pressure is increased and the temperature is decreased.

Flavoring syrup, Flavoring syrup is normally concentrated salutation of a sweetener (artificial

or sugar), an acidulated for tartness, flavoring, and a preservative when necessary. The flavoring
syrup is made in two steps; first,”simple syrup" is prepared by making a solution of water and
sugar. This simple sugar solution can be treated with carbon and filtered if the sugar quality is
poor. All of the other ingredients are then added in a precise order to make up what is called
“finished syrup”.

Finishing. There are two methods for producing a finished product from the flavoring syrup. In
the first, the syrup is diluted with water and the product then cooled, carbonated, and bottled. In
the second, the maker measures a precise amount of syrup into each bottle, and then fills it with
carbonated water. In either case, the sugar content is reduced to 8-13 percent in the finished
beverage. The blending of syrups and mixing with plain or carbonated water, the container
washing, and container filling are all done almost entirely by automatic machinery. Returnable
bottles are washed in hot alkali solutions for a minimum of five minutes, and then rinsed
thoroughly. Single service or "one-tip" containers are generally air-rinsed or rinsed with potable
water before filling. Automatic filters service from 30 to 2,000 containers per minute.

11
3.4 Product design process:

Product design has typically had strategic implications for the success and prosperity of an
organization. Furthermore, it has an impact on future activities. Consequently, decision in this
area is some of the most fundamental that managers must make. Steps that involve in product
design process of TBL are stated below;

• Idea generation: Idea for new or redesign product can come from variety of sources,
including customers, the supply chain, competitors, employees and research. Idea
generation involves reverse engineering i.e. disseminating and inspecting a competitor’s
product to discover product improvements. And another id Research and development i.e.
organized efforts to increase scientific knowledge or product innovation.
• Product liability: The responsibility of manufacturer for any injuries or damages caused
by a faulty product.
• Uniform commercial code: Products carry an implication of merchantability and fitness.
• Value analysis: Examination of the function od parts and materials in an effort to reduce
cost and /or improve product performance.
• Recycling: Recovering materials for future use.
• Degree of standardization: Standardization extent to which a product, service, or process
lacks variety.
• Mass customization: A strategy of producing basically standardized goods, but
incorporating some degree of customization.
• Computer aided design: Computer aided design uses computer graphics for product
design.

Not only TBL but most of beverage companies are following continuous process as they produce
very high volume of a fully standardized product.

3.5 Design of Facility layout for product:

Transcom beverage design layout is nicely designed and so that the workers are extra
environment friendly to produce their product. Transcom beverage employee monitors their
employee very closely and more effectively and also all everything of the manufacturing unit
all worker ability and others. There is alignment of machines, departments, workstations,

12
storage areas, and frequent areas. We discover out line balancing 6 computer first four work
station has two step and last two work station has one step when they design in this work station
process limit their cycle time so they are more efficient. Layout choices remarkably have an
effect on the efficiency of employees in their jobs, how shortly the items can be produced, how
arduous it is to automate a system, and how receptive the system can be to tweak a product or
service design, product mix, and demand volume.

3.6 Production Layout for product:

7up and Pepsi has its self-owned line planned to meet its prerequisites. The stream of work is
on arrange and along these lines passing from one workstation to another consecutively down
the get together line till it comes about to a wrapped-up item at the conclusion of line. Here,
the line is set up for one type of product or service but there are machines to calibrate a product's
specific processing requirements individually. Product layouts are suitable for mass production
of 7up and Pepsi in which demand is stable and remain at peak at times and volume is high.

Fig- Layout of 7up and Pepsi production of Transcom Beverages Limited

Cyclical order of 7up and Pepsi production

13
 Fig- Cyclical order of 7up and Pepsi

1) Blow molding
It is a manufacturing procedure by means of which the hollow plastic parts are formed
through this material glass bottles can additionally be formed. Blow molding are of three
types they are extrusion blow molding, injection blow molding, and injection stretch blow
molding.
2) Bottle rinsing
It is important for cleaning by flushing with liquid (such as water), to cleanse (as of soap) by
clear water, to remove (dirt or impurities) by washing lightly or in water only.
3) Filling
A range of volumetric electronic fillers that meet stringent clean environment requirements.
The beverages are filled with acid, with and without pulps, fibers, pieces, still and carbonated
in a 4-degree frizzing temperature.
4) Capping
Capping is completed to seals the top opening of a bottle. A cap is colorfully decorated with
the brand of the beverage. Plastic caps are used for plastic bottles which is referred to as closure
and for glass bottle it’s called crown.

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 5) Warming
When capping is completed than warming the full bottle for 35-degree high temperature and
within the duration of one-hour assembly line produce 180000 bottles for warming.
6) Bottle drying
Bottle-drying frameworks helps to come over the surface drying issues on a huge scale of
broadened materials over a run of generation speeds. The accessible frameworks run from a air
knife and blower set-up for entry-level lines, to a completely encased and flexible knife and
board framework for high-speed bottle drying.
7) Labeling
When bottle drying complete than another assembly line starts for labeling. In one hour,
assembly line completes their labeling 120000 bottle at a time. When labeling complete than
data coding through laser produce 240000 bottles in one hour.
8) Date Coding
Laser coders is accommodating for following the data coding that are regularly a profitable
way to print recognizing records on beverage packaging. Such as Logos, records framework,
barcodes, serial and section numbers.
9) Packing
This is the last stage for the complete working procedure of 7up and Pepsi production. At a
time, this machine packet of 24 pieces bottle.

Transcom Beverages Ltd needs to take necessary steps to improve the productivity of the last
step that is packaging. The shrink wrapper machine can pack 180000 bottles per hour whereas
machines involved in the previous stage can process up to 240000 bottles per hour. So,
packaging in the later stage of production creates bottleneck.

3.7 Inventory management:

Warehouse and storage: There are two kinds of warehouse/Inventory in this organization. They
are:
➢ Raw material warehouse.
➢ Finished product warehouse.
There is only one storage in this organization. That is:

15
 ➢ Technical store.
There are many types of inventories like, raw materials, processed goods, finished goods and
also machineries parts. Transcom beverages also have their own inventories and make all the
processes from their own company. They have raw material inventories, process inventories,
and machineries inventories and finished goods inventories. These inventories are given below.

❖ Raw-material Warehouse:

• Raw materials for the beverage

a) Water
b) Sugar
c) Carbon Dioxide plant
• Raw material for the bottle
a) Plastic
b) Ink
c) Polythene
There is distinct warehouse for raw materials, as mentioned earlier. Materials are stored there.
Types of form in racking -

➢ Fixed bed racking: This sort of racking is built of a solid outline as a rule made of steel
with racking of the same material.

➢ Drive-in and drive-through racking: There are pallet-based racking frameworks that
permit a simple get to for forklift trucks to lift goods.

16
 ➢ High-rack and narrow-aisle racking: It’s designed to maximize space, utilizing the
complete stature of the stockroom with passageways put as near as conceivable to each
other to permit get to by either physically driven or computer-controlled forklifts.

Transcom uses their own water treatment plant to collect water because they want a fresh
hygienic distribution. They also produce CO2 in their own factory and they test them in their
own testing plant. Raw materials are imported from international locations like Thailand, India,
Pakistan, Malaysia, China etc. through water modes and air. Containers attain Chattogram sea
port. From there raw materials are distributed to Chattogram and Dhaka plant.

❖ Finished product warehouse:

All beverages that are stored for future demands. The have the ability to store lack case in their
factory. After production from the raw-material the ultimate product is being stored in the
warehouse. There are separate sections for separate products. For Aquafina drinking water its
one-of-a-kind here the products want to settle down for 24 hours before they are prepared for
use or distribution. The products that are not ready for use or distribution yet, are given a red
tag mark. From the ware house the products are carried through truck and disbursed all through

17
distinct regions of the country.

Figure - Finished product warehouse

❖ Technical Store:
All the specialized things that are kept in specialized store are save parts of machineries, oil,
Mobil, oil etc. which are all from Neighborhood and outside. The remote things are imported
from diverse nations basically through air-ways and at times by water-ways.

18
 Figure - Acquiring technical materials

The organization takes steps to play down stock misfortunes stemming from burglary and
decay by” cycle tallying. “In this strategy, they physically tally a parcel of stock each and every
day until they survey the full part and after that begin over once more. The quicker they develop
they get cautious around issues the they can take remedial activity and reducing the cost.

3.8 Quality Control and Management:

TBL ensures the highest standards needs to be maintained in their production process and other
activities also. Since TBL believes in “continuous improvements” so they work on it in all the
areas of their organization during production.
3.8.1 Quality control:
Transcom Beverages Ltd. has an entire separated quality control unit to inspect all the products
after production. They have their own chemist to do all the chemical testing and check the
quality and a quality control head officer who manages, controls all the employees under this
unit. Quality control head officer manages the whole process in this unit.
3.8.2 Quality Management
In TBL there are workers to keep the production department clean properly by killing all the
insects inside the area. There is a policy in TBL which is if a single insect is found inside the
factory a certain percentage will be deducted from their salaries due to the fear of losing the

19
salary portion all the workers work sincerely and carefully to make sure there are no bugs in the
warehouse and production department.

3.9 Competitiveness
At present Bangladesh has a very competitive industry of beverage. Bangladesh has a relatively
hot weather and people tend to be thirstier. So, they prefer to take soft drinks most of the time.
Beverage took the market of Bangladesh in the first half of 1980. In that time two or three soft
drinks were available in the market. But now lots of beverage found in the market. Some of them
are popular and some are not so popular. Companies are trying to take competitive advantage by
cost, introducing variety of flavors, quality and also by keeping pace with changes in customer
taste.

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 4.0 SWOT Analysis

4.1 Strength

• Strong Distribution Network

• Renewal and investment
• Availability of key raw materials, cheaper labor costs and presence across the entire value
chain gives Bangladesh a competitive advantage.
• Highly Skilled Workforce
• Diversity
• Influence of Social Media.
• Comparatively few number of competitors than other developed countries.
• As summer is the main season of Bangladesh, beverages have very much demand in this
country

4.2 Weakness

• Less Research & Development

• Less Profit
• Inventory cost
• Can’t maintain international standard of the product for making the products cheap.
• Old technologies and poor work organization
• Insufficient pace of creation and implementation of innovations
• Insufficiently effective activities of small and medium-sized businesses
• Change in household consumption patterns.
• High Rental Expenses

4.3 Opportunities

• Presence of a favorable market

• Market globalization
• Foreign direct investment promoting knowledge and developing export channels
• Transfer of production to the areas with smaller labor costs

21
 • Well established distribution network
• Young people are widely accepting the new flavors
• Higher Population
• Training the Employees
• Online Store & Delivery

4.4 Threats

• Customers’ Changing Tastes

• Unfavorable market trends in energy resources
• Increasing competition among exporters and decreasing dependency on one Market
• Water scarcity in Bangladesh
• Implementation of Goods and Service tax by government.
• People have become very concerned about product and their quality.
• Mobil court are frequently visiting different production areas for checking the quality
• COVID-19

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 5.0 Recommendations & Conclusion

5.1 Recommendations

➢ Reduction of raw-material price compared to competitors both in national and

international market
➢ Reducing the time between the Safety stock and Re-order level (ROL) for providing
good customer service
➢ Company should focus more on online order processing with the use and implementation
of apps or other technology.
➢ Applying just in time manufacturing system and determine EOQ that will help to manage
inventory more efficiently and reduce stock holding cost.

➢ Should utilize the by products and waste management should be more improved

➢ Protect the contents against chemical deterioration

➢ New products should be produced and introduced with the change of tastes and demand of
consumers.

5.2 Conclusion

Every beverage production companies in Bangladesh are practicing production and operations
management very massively. In reality the system is weak than other developed countries. So,
the tbl should improve their production and operations systems due to more effectiveness and
success. Transcom must conceive an automated technique of inspection amidst manufacturing
system which will additionally save the manufacturing time. On the different hand, Transcom
has its own water treatment, carbon dioxide and carbon dioxide checking out plant which leads
to a vast discount in cost. They also should use their strength, take their opportunities and
eradicate the threats and overcome their weaknesses. Moreover, the effectivity of supply chain
limits lead time, ordering cost, and carrying cost and performs a critical role in the back of the
success of Transcom Beverages Ltd as a leading supplier of carbonated soft drinks product all
over Bangladesh.

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References

1. Lans, D. (2019, February 5). 7 main challenges in Supply Chain Management. My Story.

2. Statistical data from handbook along with the insider information’s from visits
3. Concepts for Soft Drink Manufacture by krones AG
4. Nweke, Benedict O. " IMPACT OF SUPPLY CHAIN MANAGEMENT ON THE FINANCIAL
PERFORMANCE OF LISTED SOFT." International Journal of Marketing and Management
Research (August 2017). Vol. 8, Issue 8, ISSN: (2229-6883)

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