Chittagong Office :

Elite House, C.D.A. Avenue

Chittagong.
Tel : +88-031-654022
Fax : +88-031-650157

Factory :
92,Shershah Colony
Baizid Bostami
Nasirabad,
Chittagong

Executive Summary
Effective supply chain management (SCM) solutions can provide a means to control and
minimize costs while improving customer service. Development of a responsive business
strategy underscores all successful SCM implementations. In the face of uncertain demand,
balancing the need for cost reductions with the flexibility critical to productive operation of
extended supply chains and the desire for increased risk management confronts most companies
today. Formulators also face the challenge of managing supply networks to consumer-oriented
markets and industrial customers through a number of different channels of distribution. Careful
selection of software, business practices, and data collection can result in dramatic improvements
in an organization's bottom line.
Most major chemical companies, including suppliers of raw materials, additives, and resins to
the paint and coatings sector, as well as leading paint and coatings manufacturers themselves,
have implemented enterprise resource planning (ERP) and supply chain management systems in
some form or another. However, many have not gained the maximum level of benefits possible
from their initiatives, and some have even taken actions that have inhibited their ability to reap
the greatest possible rewards for their efforts.

Company at a Glance
The founder of the Elite Paint Group of companies, Late Mr. Serajuddin Ahmed came to the then
East Pakistan from India after partition in 1947. After completion of studies he got engaged in
business. In 1952 he established a small paint producing factory by the name of Elite Chemical
Industries. The company started its journey with a small manufacturing base, small capital and
simple machinery and started producing and marketing paint products to the local market.

Vision
To be the most trusted & reliable national paint manufacturer and supplier of quality paint
products in the country which facilitates and adds considerable value to its business processes in
providing consistently high quality paint products of international standards in the local market
at a competitive price.

Mission

Prioritize Customer satisfaction.

High quality product.

Competitive pricing.

Optimal utilization of available resources at all times.

Optimal use of information & technology.

Continuous development & growth of human capital.

Every action of every person to be sincere and profit oriented.

Create environment that drives intelligence amongst all involved.

Product
Elite paint is committed to offer quality products that satisfy consumers ultimate desires from
paints with the help of state-ofart technology. Elite paint always believes in one step ahead in
offering new product to create more value for customers money.

Decorative
Cement Based
Paint
Synthetic Enamel
Paint
Synthetic Enamel
Matt.
Plastic Emulsion
Paint
Synthetic Paste
Distemper
Duel pack
Aluminium paint
Anticorrosive Red
Oxide Primer
Anticorrosive Red
Oxide
Red Oxide Primer
Genreal Purpose
Primer for Wooden
Structures
Damp Protective
Paint
Water Based
Sealer - Undercoat
Water Based Putty
Alkyd Based
Sealer
Transparent Alkyd
Varnish
Finished Coat
Base Coat
Matt
Egg-Shell
Timberguard

Industrial
Industrial Enamel
Paint

Marine

Special Products

Enamel Paint

Tennis Court Paint

Boot Topping
Paint

Thinners
General Purpose
Thinner

Red-Lead primer

Red Oxide Primer

Alkyd base
Surfacer

Anticorrosive Red
Oxide Primer

Road Marking
Paint
Runway Marking
Paint
Road Marking
Paint Special
Runway Marking
Paint Special
Swimming Pool
Paint
Rust Removing
Solution

Q. D. Fan Enamel

Topside Paint

Remover for Paint

Hammer Finish

Non-Skid Deck
Paint

Cleaning Solvent

Air Drying
Polychromatc
Finish

Aluminium Hold
Paint

Washing Thinner

Red Oxide Primer

Quick Drying
Undercoat
Zinc Chromate
Primer
Zinc Phosphate
Primer

Q. D. Drum Paint
Vinyl Resin Finish
Vinyl Resin Base
Primer Undercoat
upto 200c (Black
& Silver)

Antifouling Paint
Red Lead Primer
Metallic protective
Brown/Bronze

Zinc Chromate
Primer
Zinc Phosphate
Primer

Industrial Paint
Stoving Paint
Runway Marking
Paint
Bonntile Top Coat
Vinyl Paint
Epoxy Paint
Road Marking
Paint

Can Lacquer
N.C Paint
Rubber Paint
Acid Proof Paint

upto 600c (Silver)

Bitumen Emulsion
Paint Black Japan
Black Bituminous
Paint
General Purpose
Stoving Enamel
Special Stoving
Enamel

Yacht
Primer-Sealer for
Wall
Water Based
Acrylic Sealer
Undercoat for
Alkyd Based Paint
Paint for Metalic
Roof
Cement Based
Paint
100% Acrylic
Emulsion Paint
Sealer for Texture
Texture
Compound
Acrylic Gloss
Finish
Weather proof
Exterior Paint
Paint of Concrete
Roof
Vinyl Transparent
Coating
Epoxy Based
Floor Paint
Damp Protective
Paint

Stoving
Polychromatic
Finish
Stoving Undercoat
Self Etch Primer
Chlorinatd Rubber
Paint
Epoxy Finish Paint
Epoxy Redoxide
Primer
Epoxy Undercoat
EpoxyZinc
Chromate Primer
EpoxyZinc
Phosphate Primer
EpoxyZinc Rich
90% Primer
Coal Tar Epoxy
Epoxy Clear
Varnish
N.C. Finish Paint
N.C. Surfacer
Car Repair Putty
N.C. Clear
Leaquer
Stoving Redoxide
Primer
Stoving Clear
Coating
Stoving Gold
Lacquer
Interior Can
Coating
Cycle Black Finish
Wrinkle Finish
Paint
Coating for
Insulation
Chimney Black
General)

Sales Volume: Their yearly sales volumes is about Tk.60 crore

Number of employee at Chittagong office: 57
Price
Generally Elite paint follows cost based pricing method. After calculation of the total
manufacturing cost (Direct & Indirect RM cost, Direct & Indirect Labor cost and Manufacturing
overhead cost) and adds 20% GP to get the price point of the product. But this is not the rule of
thumb in pricing the Elite paint products. Competitor based pricing policy is also followed as
well because of the increased competition in the paint market.

Raw materials for manufacturing

For manufacturing quality paints, hundreds of raw material or chemicals are available and can be
substitute of other but there are certain types of raw material, which are an essential part of a
paint. Broadly the raw materials can be divided in five main categories.
1- Pigment
2- Additives
3- Thinner
4- Extender
5- Color Solutions
The raw material of paint factory has a wide range of above mentioned products. There are about
190 items of raw material. Some important raw material used in Elite Paint is as follows:
Titanium Dioxide
Yellow oxide
Chrome Pigment
Chalk
Soap Stone
Mica

Paint Manufacturing Process

The General manufacturing & operation process of paint can be divided into following
categories of functions.
Mixing
Stirring
Gumping
Thinning
Quality Assurance
Packing
Dispatch & Delivery

Supply Chain Management Practice in Elite Paint

Supply chain management is a cross-function approach including managing the movement of
raw materials, certain aspects of the internal processing of materials into finished goods, and the
movement of finished goods out of the organization and toward the end-consumer. As
organizations strive to focus on core competencies and becoming more flexible, they reduce their
ownership of raw materials sources and distribution channels. These functions are increasingly
being outsourced to other entities that can perform the activities better or more cost effectively.
The effect is to increase the number of organizations involved in satisfying customer demand,
while reducing management control of daily logistics operations.

Components of Elite Paints supply chain Management

The seven components of SCM for the Elite Paint

Procurement.

Manufacturing.

Order management.

Transportation.

Warehousing.

Supplier

Information.

Figure: Components of Elite paints supply chain management

Procurement process of Elite Paint

Almost all purchasing decisions include factors such as delivery and handling, marginal benefit,
and price fluctuations. Procurement generally involves making buying decisions under
conditions of scarcity. If good data is available, it is good practice to make use of economic
analysis methods such as cost-benefit analysis or cost-utility analysis.
An important distinction is made between analysis without risk and those with risk. Where risk is
involved, either in the costs or the benefits, the concept of expected value may be employed.
Direct procurement and indirect procurement
TYPES
Direct procurement

Indirect procurement

Raw material and

Maintenance, repair, and

Capital goods and

production goods

operating supplies

services

Quantity

Large

Low

Low

Frequency

High

Relatively high

Low

Value

Industry specific

Low

High

Nature

Operational

Tactical

Strategic

F
E
A
T
U
R
E
S

Based on the consumption purposes of the acquired goods and services, procurement activities
are often split into two distinct categories. The first category being direct, production-related
procurement and the second being indirect, non-production-related procurement.
Direct procurement occurs in manufacturing settings only. It encompasses all items that are part
of finished products, such as raw material, components and parts. Direct procurement, which is
the focus in supply chain management, directly affects the production process of manufacturing
firms. In contrast, indirect procurement activities concern operating resources that a company

purchases to enable its operations. It comprises a wide variety of goods and services, from
standardized low value items like office supplies and machine lubricants to complex and costly
products and services like heavy equipment and consulting services.

Raw material & machineries suppliers of Elite Paint

Raw materials are purchase from the local market and other are imported. Some major raw
material suppliers are:
1)
2)
3)
4)
5)

American Enterprises Pvt. Ltd. - India

Lucky Trade International- Dhaka
Active fine chemical Ltd.- Dhaka
Radiant Paints & Chemical Industries Ltd.- Chittagong
Hexagon Chemical Industries Ltd - Chittagong

They supplies: fast bases, fast salts, dyes, direct dyes, mordant dyes, naphthol dyes, reactive
dyes, solvent dyes, vat dyes, fast blue, fast bordeauxgp salt, fast red b salt, fast orange gc salt,
fast red, chrome dyes, napthols, optical brightener, pigment emulsions, biological stains,
biological indicators, fast red salt, optical brighteners, dyes chemicals, Titanium Dioxide, Yellow
oxide, Chrome Pigment, Chalk, Soap Stone, Mica.

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Order processing system

The order processing system of Elite Paint Ltd shown in this figure:
F

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Distribution Coverage
The distribution reach of the company is set basically on the three broad categories: Urban, Semi
Urban and Rural.
Company
Elite Paint &
Chemical
Industries Limited

Urban
37.4%

Semi urban
28.5%

Rural
15.2%

National
31.6%

Production planning
Production planning includes procurement and delivery of raw materials from suppliers to
production facilities, as well as scheduling of production runs given a variety of constraints such
as capacity, equipment availability, set up time, and desired profitability. Many types of product
wheels come into play (such as a color wheel or packaging sequence) that require production of
the smallest possible batch sizes in the least amount of time in order to meet demand and move
through the predetermined sequence as quickly as possible in case adjustments must be made.

Warehousing
The warehouse of Elite Paint is located along with their factory in Shershah Colony at
Chittagong. Warehouse management systems are important for minimizing inventory, reducing
order costs, and locating products for shipment, while distribution resource planning is important
for meeting customer delivery expectations. Logistics and distribution issues include packaging
size, modes of transportation, and location of distribution centers. Because paint companies sell
their product through so many different channels, and to the consumer and industrial sectors,
their supply chain solutions are highly complex. "The use of supply network design tools to
evaluate multiple supply designs for different channels can vastly reduce inventory and
transportation costs.

PSI Planning in inventory and manufacturing

Over time, the bulk of the operating synchronization activity is PSI planning (production, sales,
and inventory) which is the information-based scheduling of product flows throughout the
system.
PSI planning, which is a marketing functional responsibility in Elite paint, begins with a forecast
of future demand (unconstrained by operational factors such as capacity limits) that is meshed
against current and targeted inventory levels (depleting excesses, accumulating for peak periods)
to determine a desired level of new production.

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Information Technology
The Supply Chain Management is backed by IT efforts that help the company in demand
forecasting, deriving optimal plant, streamlining vendor relationships, reducing procurement
costs and scheduling production processes for individual factories.

ERP software adopted by Elite Paint

Currently Elite paint is not using any ERP software but they are going to introduce in there
system SAGE PFW as their ERP software.

Reason for choosing SAGE PFW

Paints and coatings companies need more than just process manufacturing modules like
Laboratory, Formulas, and Compliance. Thats why Sage PFW offers a wide variety of other
features and capabilities, all integrated to work together seamlessly. They can use Sage PFW to
automate manufacturing, improve human resources with an integrated human resource
management system, and manage all of their financials, from standard accounting to
multicurrency and multicompany requirements frequently needed in an international
marketplace.

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Major benefits of Supply chain management practice by Elite Paint

1. Increase revenue enhancement possibility: Working closely with suppliers help to gain
competitive advantage and also make impact on ability to go to at good cost. It also faster
new product design and development.
2. Reduce cost: Cost reduction is central function of supply chain management. Supply
chain management practice helps to achieve cost reduction advantage like reduce
material cost, fright cost etc.
3. Gain expertise on risk management: This is the period of price run up and volatility
working together of supply management and financed group helps to achieve knowledge
about how to gain expertise about risk management.
4. Helps to focus on working capital: working capital represent the amount of capital
available for the day to day running of the firm. Supply management ensures the proper
use of current assets and capital, and utilize inventory programs with suppliers.
5. Helps in demand forecasting.
6. Assist in gathering and analysis of data.
7. Increase production capability.
8. Increase communication between producer, supplier and consumer.
9. Helps in minimizing inventory, reducing order cost, locating products for shipment and
10. Reduce transportation cost.

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Recommendation
1. The elite paint should immediately implement ERP software.
2. They should have clear plan about minimize inventory and transportation cost.
3. They should have take decision about what type of inventory they should follow.
4. They should increase manpower in supply chain department.

Conclusion
Today's business climate has rapidly changed and has become more competitive as ever in
nature. Businesses now not only need to operate at a lower cost to compete, it must also develop
its own core competencies to distinguish itself from competitors and stand out in the market. In
creating the competitive edge, companies need to divert its resources to focus on what they do
best and outsource the process and task that is not important to the overall objective of the
company. Supply chain management (SCM) has allowed company to rethink their entire
operation and restructure it so that they can focus on its core competencies and outsource
processes that are not within the core competencies of the company. Due to the current
competitive market, it is the only way for a company to survive; it is the only to hold the
leadership in the market. Elite Paint did so and in the near future they will create more
dimensions on it.

Reference:
1. Mr. Asif Iqbal
Regional head
Elite paint

2. www.elitepaint.com.bd
3. www.wikipedia.com

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