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AN INTERNSHIP REPORT

ON

“THE ROLE AND THE FUNCTIONS OF LOGISTIC SUPPORT AND SERVICES DIVISION’’ OF
BANK ASIA LIMITED

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Letter of transmittal

Dear Sir,

I have completed the Internship report on “logistics and Support Services of Bank Asia Ltd.”. With due
respect, I am submitting my internship report on the above mentioned title for the fulfillment of the
requirements for the Degree of Bachelor of Business Administration.

I took this report as an opportunity to reflect my learning of the techniques and skills from my internship
period. I realize that my report may not be flawless; there might be some mistakes which were not
noticed by me due to my inadequate professional knowledge. By collecting information for this report I
also learned something very superfluous in practical which will help me to do good in my near future
practical career. I look forward to make the optimal use of the knowledge that I gained from this
internship program.

I would like to gratitude you for giving me such a great job and opportunity to prove my ability and
increase the skill of making a quality report with practical experience. If any mistakes remain I am
heartily apologized for those. I hope you will take my mistakes with due consideration.

Sincerely yours,

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‘‘The Role and the FunctionsLogistic and Support Services Division’’ ofBank Asia
Limited

Table of Contents

Chapter No SL Particulars Page No


No
Chapter 1 Introductions

1.1 Background of the Study


1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Methodology of the Study
1.5 Limitation of the Study
1.6 Literature Review of the Study
Chapter 2 A Short Profile of Bank Asia Limited
2.1 History of The Bank
2.2 Type of Business
2.3 Objective of The Bank
2.4 Corporate Vision of The Bank
2.5 Corporate Mission of The Bank
2.6 Core Values of The Bank
2.7 Corporate Structure of The Bank
2.8 Services of The Bank
2.9 Performance of The Bank
2.1 Departments of The Bank
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Chapter 2 Logistics and Support Services Division
of Bank Asia Limited
3.1 Brief About Logistics and Support
Services Division

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3.2 Organogram of LSSD
3.3 Standard Operating Procedure(SOP)
3.4 Policy of Standard Operating Procedure
Chapter 4 Analysis and Findings of The Study
4.1 Working Process of The Division
4.2 Busyness and Stress on the Employees
4.3 Billing System of The Division
4.4 Enlistment of The Vendors
Chapter 5 Recommendations and Conclusions
5.1 Recommendations
5.2 Conclusions
REFERENCES and APPENDEX

CHAPTER 1

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INTRODUCTION

Introduction

The economy of Bangladesh has been experiencing a rapid growth since the 90’s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers’
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprise ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking
products and services to support the new initiatives. A group of highly acclaimed businessmen

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of the country grouped together to respond to this need and established Bank Asia Limited in
the year 1999.

The Bank Asia incorporated as a public limited company under the Companies Act. 1994. The
bank started its commercial operation on November 1999 with an authorized capital of Tk.800
million and paid up capital of Tk.218 million.

1.1 Background of the study

In this competitive era, bankingsector is expanding their activities day by day; they are trying to
go remote areas to give banking services along with serving the economy. To do these
activities, one department is serving the bank and its branches from the shadow. This
department is called Logistics Supports and Services Division. To carry the smooth operation of
the bank, this department needs to work very sincerely. As a BBA student, Bank is one
preferable place to go for gather experience.With a view to supply skilled personals in banking
arena, Bank Asia undertakes the internship training program for BBA and MBA students. As a
part of the BBA program, Ihave placed Bank Asia Limited at Logistics and Support Services
Division at ‘Enlistment Team” for having practical experiences about the selection process of
vendors of the bank and also the relationship with the vendors of the bank, To serve the
branches form the remote areas with every kind of logistics. So, this report has been made as
per the requirement of Completing of BBA degree of Department of Management, University of
Dhaka.

1.2 Statement of Problem

Bank Asia has started its long term journey in 1991 in the month of November. From the very
beginning, this bank is earning high rate of return, but the situation of the economy of the
world and as well as Bangladesh is changing into complex every year. So it is not possible to
cope with the changing situation if the operation level activities and materials of the bank are
not updated and available.

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Here This report will show how LSSD playing an important role for Bank Asia limited, how they
are changing with the situations

1.3 Objective of the study

This report is made concerning some objectives to address. They are given below

 To know operational activities of Logistic Support and Services Division


 To examine how thisdepartment supports all the branches of the bank.
 To know the role of the department for the bank.
 To examine the Satisfaction level of the employees
 To identify theCommunication channel with the vendor and the branches
 To drawback major problems of this department
 To drawback different problems in communication channels with the branches
 To explain different enlistment issues

1.4 Methodology

To make this report Primary and secondary sources are used, they are shortly described below:

Primary sources: This information is collected by working with the employees and interviewing
them.

Secondary Data: To make this report following documents have been used

 Annual report
 LSSD inter department report
 Different banking blogs
 Articles
 Magazines
 Daily Newspaper

1.5 Limitation of the study

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There were certainly some limitations while making this report. They are given below

 Time constraints
 Reluctant to share confidential information.
 Lacking in statistical approaches
 Busyness of the employees

1.6 Literature Review

Logistics is generally the detailed organization and implementation of a complex operation. In a


general business sense, logistics is the management of the flow of things between the point of
origin and the point of consumption in order to meet requirements of customers or
corporations. The resources managed in logistics can include physical items, such as food,
materials, animals, equipment and liquids, as well as abstract items, such as time and
information. The logistics of physical items usually involves the integration of information
flow,material handling, production, packaging, inventory, transportation, warehousing, and
often security.

In military science, logistics is concerned with maintaining army supply lines while disrupting
those of the enemy, since an armed force without resources and transportation is defenseless.
Military logistics was already practiced in the ancient world and as modern military have a
significant need for logistics solutions; advanced implementations have been developed,
especially for the United States Armed Forces. In military logistics, logistics officers manage how
and when to move resources to the places they are needed.

According to the Council of Supply Chain Management Professionals (previously the Council of
Logistics Management logistics is the process of planning, implementing and controlling
procedures for the efficient and effective transportation and storage of goods including services
and related information from the point of origin to the point of consumption for the purpose of
conforming to customer requirements and includes inbound, outbound, internal and external
movements.

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Inbound logistics: Inbound logistics is one of the primary processes of logistics, concentrating
on purchasing and arranging the inbound movement of materials, parts, and/or finished
inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores.

Outbound logistics: Outbound logistics is the process related to the storage and movement of
the final product and the related information flows from the end of the production line to the
end user.

Given the services performed by logisticians, the main fields of logistics can be broken down as
follows:

Procurement logistics: Procurement logistics consists of activities such as market research,


requirements planning, make-or-buy decisions, supplier management, ordering, and order
controlling. The targets in procurement logistics might be contradictory: maximizing efficiency
by concentrating on core competences, outsourcing while maintaining the autonomy of the
company, or minimizing procurement costs while maximizing security within the supply
process.

Distribution logistics: Distribution logistics has, as main tasks, the delivery of the finished
products to the customer. It consists of order processing, warehousing, and transportation.
Distribution logistics is necessary because the time, place, and quantity of production differs
with the time, place, and quantity of consumption.

Disposal logistics: Disposal logistics has as its main function to reduce logistics cost(s) and
enhance service(s) related to the disposal of waste produced during the operation of a
business.

Reverse logistics: Reverse logistics denotes all those operations related to the reuse of products
and materials. The reverse logistics process includes the management and the sale of surpluses,
as well as products being returned to vendors from buyers. Reverse logistics stands for all
operations related to the reuse of products and materials. It is "the process of planning,
implementing, and controlling the efficient, cost effective flow of raw materials, in-process
inventory, finished goods and related information from the point of consumption to the point

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of origin for the purpose of recapturing value or proper disposal. More precisely, reverse
logistics is the process of moving goods from their typical final destination for the purpose of
capturing value, or proper disposal. The opposite of reverse logistics is forward logistics.

Green Logistics: Green logistics describes all attempts to measure and minimize the ecological
impact of logistics activities. This includes all activities of the forward and reverse flows. This
can be achieved through intermodal freight transport, path optimization, vehicle saturation and
city logistics.

RAM Logistics (Logistic engineering): RAM logistics combines both business logistics and
military logistics since it is concerned with highly complicated technological systems for which
Reliability, Availability and Maintainability are essential, ex: weapon systems and military
supercomputers.

Asset Control Logistics: companies in the retail channels, both organized retailers and suppliers,
often deploy assets required for the display, preservation, promotion of their products. Some
examples are refrigerators, stands, display monitors, seasonal equipment, poster stands &
frames.

Emergency logistics (or Humanitarian Logistics): It is a term used by the logistics, supply chain,
and manufacturing industries to denote specific time-critical modes of transport used to move
goods or objects rapidly in the event of an emergency. The reason for enlisting emergency
logistics services could be a production delay or anticipated production delay, or an urgent
need for specialized equipment to prevent events such as aircraft being grounded (also known
as "aircraft on ground"—AOG), ships being delayed, or telecommunications failure.
Humanitarian logistics involves governments, the military, aid agencies, donors, non-
governmental organizations and emergency logistics services are typically sourced from a
specialist provider.

The term production logistics describes logistic processes within a value adding system (ex:
factory or a mine). Production logistics aims to ensure that each machine and workstation
receives the right product in the right quantity and quality at the right time. The concern is with

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production, testing, transportation, storage and supply. Production logistics can operate in
existing as well as new plants: since manufacturing in an existing plant is a constantly changing
process, machines are exchanged and new ones added, which gives the opportunity to improve
the production logistics system accordingly. Production logistics provides the means to achieve
customer response and capital efficiency. Production logistics becomes more important with
decreasing batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch
size of one, allowing even a single customer's demand to be fulfilled efficiently. Track and
tracing, which is an essential part of production logistics due to product safety and reliability
issues, is also gaining importance, especially in the automotive and medical industries.

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CHAPTER 2

A PROFILE OF BANK ASIA LIMITED

2.1 History of the Bank

Due to the demand of better banking facilities rather than the public bank, a few entrepreneurs take a
bold step to start private commercial banks in Bangladesh and from the footsteps from the first
generation commercial banks Bangladesh now have many public and private commercial banks. Already
3rd generation private commercial banks are operating their services. The role of Commercial Banks in

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our economy is more significant compared to other service oriented organizations. Already private
commercial banks take a large portion of our banking sector.

Bank Asia Limited is a third generation bank started its commercial banking operation from November
27, 1999. During the short span of time, the bank has been successful in positioning itself as progressive
and dynamic financial institution in the country. The bank has been widely acclaimed by the business
community, from small entrepreneurs to large traders and industrial conglomerates, including the top
rated corporate borrowers for forward-looking business outlook and innovative financing solutions. In
the beginning of year 2001 Bank Asia Limited acquired the operation of the Bank of Nova Scotia of
Canada in Bangladesh. In September 2001 a Memorandum of Understanding was signed with the
Muslim Commercial Bank Limited (MCB) of Pakistan to take over their operations in Bangladesh.
Eventually MCB’s operations were taken over through acquisition with effect from January 1, 2002.
These events are milestones in the forward march of the Bank and have added new dimensions to the
banking industry in the country. The acquisitions have provided wider access to Bank Asia Ltd regionally
and internationally and helped the bank to expand it’s clientele. Bank Asia Ltd. started selling its share
for the public in September 2003 and traded in DSE & CSE from that time.

Bank Asia started its operation with a huge amount of paid up capital that no other commercial bank
starts with such a huge amount of money. And day by day the paid up capital amount is increasing.

The stockholders equity is also increasing trend which reflect that shareholders eager to invest in the
bank to increase revenue for the bank; which is definitely a good sign for the bank.

Total assets of the bank also increasing and especially in the year 2003 its jump to more than 4 million
than in the previous year. It suggests that bank is wants to expand its business all over the Bangladesh
and have the capability to tackle in the upcoming years.

Bank Asia Limited is the first commercial Bangladeshi bank that acquired two foreign commercial banks
to operate business.

The amount of deposits also increase day by day that reflects customers have the faith in the bank to
deposit their money in the bank. the amount of loans and advance of also increase that suggests that
they are not put deposit idly in the bank they are investing the deposits in various credit facilities so that
they are able to generate more revenue.

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As a new bank in the country, their Import and Export business have doing a good job. For a short period
of time they are able to generate foreign currency at an increasing trend for the last four years. Net
interest income also has an upward trend which is definitely a good sign for the company.

Operating income, operating expense and operating profit is also increasing that show Bank Asia doing
well in the industry.

The number of branch also increasing rapidly which suggests that they are trying provides services more
to the customers.

2.2 Type of Business

Bank Asia Limited was licensed as a scheduled bank. It is engaged in pure commercial banking and
providing services to all types of customers ranging from small and medium enterprises to large business
organizations. It is working for the economic welfare by transferring funds from the surplus economic
unit to those who are in deficit.

2.3 Objectives of the Bank

The core business objective of Bank Asia Limited is not maximizing profit rather it focuses on maximizing
its shareholder’s wealth. The major corporate objectives of the Bank are noted as under:

A)    Delivering high quality service to its clients.

B)     Increasing the volume of deposits.

C)     Ensuring better security of public fund

D)    Being the market leader by automation of banking operations and innovation of services.

E)     Being an equal opportunity employer.

2.4 Corporate Vision

Its corporate mission is to have a poverty free Bangladesh in course of new generation in the
new millennium reflecting the national dreams. To build a society where human dignity and
rights receive the highest consideration along with reduction of poverty.

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2.5 Corporate Mission

 To assist high quality services to our customer and participate in growth and expansion
of our national economy.
 To set a high standard of integrity andbring total satisfaction to our clients, employees
and shareholders.
 To become the most sought after bank in the country, rendering technology driving
services by our dedicated team of professionals.

2.6 Core Values

Core values of Bank Asia’s are something that has been driving them to go in prosperity and
huge pace and satisfaction. Core values are given below

 Place customers need and satisfaction in first place and provide customized products
and services to the respective customers.
 Value addition to the stake holders through attaining excellence in banking operation.
 Maintaining high ethical standard and transparency in dealings.
 Be a compliant institution through adhering to all regulatory requirements .
 Contribute significantly in betterment of society.
 Ensure higher degree of motivation and dignified working environment for our human
resource and respect optimal work life balance.
 Committed to protect the environment and go green.

2.7 Corporate structure of the Bank

Corporate structure of the Bank is given in Graphical way to understand very easily

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2.8Services of the Bank

Bank Asia provides all sorts of banking services includingits unique services to keep and sustain
its clients. Their services are given below under some broad category

1. Corporate Banking
 OD, SOD and Team loan
 Working capital finance

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 Loan against trust receipt
 Packing credit
 Syndication finance
 Agricultural finance
 Letter of credit
 Back to back letter of credit
 Bank guarantee
 Bill Discounting
2. SME Finance
 Subidha unsecured Trading
 Sondha secured trading
 Sristi Unsecured Manufacturing
 Sombridhi Secured Manufacturing
 Shofol unsecured Services
 Sheba Secured Services
 Somadhan Secured
 Utshob Seasonal Business
 Suborno –Women Entrepreneurship
3. Customer Finance
 Auto Loan
 Consumer Durable Loan
 Unsecured Personal Loan
 Unsecured personal loan
 Rouse finance
 Loan for personal
 Senior citizen support

4. Cards
 Master ,Silver & Gold Card

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 VISA platinum card
 VISA Classic Local and Dual card
 VISA Gold local & Local Card
 Haji Card
 Travel Card
 Debit Card
 Virtual Card
5. Financial Inclusive Services
 Remote Banking
 Agent banking
 Mobile Banking
6. Service Product (Technology Driven)
 Central Trade services
 Electronic Fund Transfer
 Internet Banking
 E-Commerce
 Call Center
7. Off shore Banking Unit Products
 On shore Import & Export Bill discounting
 Working capital finance
 Trade Finance
 Loans and Advances
 Team Loan
8. Islamic Banking
 Deposit Products
 Al-Wadiha Current Account
 Mudaraba Savings account
 Mudaraba Special Savings Account
 Mudaraba Team Deposit Account

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 Different Tenure
 Mudaraba Haji Savings Scheme
 Mudaraba Deposit Pension Scheme
 Mudaraba Monthly paying profit scheme
 Smart Junior Saver
 Cash Waqf
9. Deposit Products
 Current and Savings Account
 Short notice deposit
 Fixed Deposit
 Scheme deposit

2.9Performance of the bank

Overall picture for the last Five years of the Bank is given below to get into the core at a glance

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2.10Departments of the Bank

There are in total 9 departments in Bank Asia which carry the daily activities.

1. Credit Admission Division(CAD)


2. Logistic Support and Services Division(LSSD)
3. Syndication Finance Department
4. Human Resource Division(HRD)
5. Liability Marketing Department
6. Small and Medium Enterprise(SME)

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7. Treasury Department
8. Branch Operation Division(BOD)
9. Islamic banking division
10. Anti-moneyLaundering Department
11. Public Relationship Department and Green banking
12. Share department
13. Central Clearing Department
14. Special Asset Management Department
15. Branches Control Department
16. Risk Management Department
17. Foreign Remittance Department
18. Mid-market Assets and Client Organization
19. Corporate Asset and Client Organization
20. ICT Department
21. International Division
22. Finance and Accounts Department

Through all these departments Bank Asia Limited is operating their activities in this economy
with eno

3.1 Brief About Logistics and Support Services Division

Logistic can be defined as the process of planning, implementing, and controlling the efficient
and effective flow of procurement, storage and distribution of goods, services, and related
information from point of origin to point of consumption for the purpose of conforming to

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institutional requirements. The definition includes inbound, outbound, internal, and external
movements of goods and services for acquisition, storage and consumption purposes. This is
the science of planning and implementing the acquisition and use of the resources necessary to
sustain the operation of a system. It includes the increasingly complex information,
communication and control systems required in today’s business environment. Logistics means
having the right thing, at the right place, at the right time. In a banking business environment,
integrated logistics support services is a management function that provides planning, design
and support of business operation of procurement, purchasing, inventory, warehousing,
distribution, transportation, customer support, financial and human resources. Therefore,
having an integrated Logistic Support Services System in place is a fundamental requirement for
a banking organization to meet its performance goals.

The functional responsibilities of the logistics and support services of Bank Asia are discharged
through the Logistics & Support Services Division(LSSD) with a workforce of 1 (one) VP as Head
3 (three) Executives and 5 (five) Officers. With this manpower, the LSSD of Bank Asia is
performing and extending, among others, the following main support services to the Bank:

 All related work for branch expansion


 Survey, selection of site for new branch – renting or purchasing premises
 Documentation and legal matters relating to renting/purchase
 Interior decoration of the premises
 Construction/renovation of bank’s own building
 Procurement and installation of furniture/fixture
 Signage and logo – installation and maintenance
 Procurement (printing etc.) of forms, books, general stationery and security instruments
 Procurement of office equipment’s – electric, electronic, mechanical – their
maintenance
 Procurement of vehicles – their maintenance
 Payment of bills relating to all procurements
 Payment of utility bills for head office

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 Hiring of support staff/security guard/armed guard
 Approval of expenses incurred by branches
 Maintenance of dead stock and stationery at central godown& distribution
 Insurance
 Cash carrying service
 Different support services during occasions like opening of a new branch, annual
conference, annual general meeting etc.
 Any other job as and when assigned

3.2 Organogram of LSSD

Organogram of the Department is given below to clarify the information flow and the flow of
authority

3.3 Sop(Standard Operating Procedure)

It is the memorandum of the department. It contains what the department does, how the tasks
are done. It also contains solution of every kind of problems which arise from different business
situattion.In this Policy Guidelines and Standard Operating Procedure (SOP), the job description
of each department of the LSSD along with specific duties and responsibilities of the executives
and officials of the departments have been described in detail to give a clear understanding of
what is expected from each and everyone and how the tasks are to be done.

In order to provide guidelines for execution/discharge of duties by the various departments,


where necessary, besides others, detail policy guidelines on important issues, e.g. safety and
security of man and materials, procurement of goods and services, key regulatory guidelines for
purchase and acquisition of real estate properties and guidelines regarding deployment of
security and facility staff have been given to the SOP.

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It is hoped that that this policy guidelines and the standard operating procedure regarding
logistics and support services presented herewith shall be helpful for the concerned executives
and officials of LSSD in discharging their responsibilities in a professional manner.

This is the summary of whole Standard Operating Procedure (SOP). To establish the tasks
properly Bank Asia introduces four fundamental policies. These policy guidelines have been
incorporated in the Standard Operating Procedures, which form an integral part of the SOP.The
fundamental Policies are summarized below:

1.Safety and Security Policy: The safety and security policy deals with the core elements of
security policy, risk assessment, security staffing of the bank, responsibilities of the security
incharge, control standards for sensitive workstations, environmental and other threats and
controls, emergency power, light , humidity, fire detection and suppression, deployment and
training/dill security and facility staffetc. This department will assess the requirements of
security personnel and support staff, security guard, security supervisor, messenger, tea
boy,cleaner etc. for the bank from time to time and arrange their engagement from enlisted
service providers. For enlistment advertisement is given through paper as per procurement
policy and eligibility criteria . For being selected, one firm must have 5 years business
experience and have at least 100 employees.

2. The procurement Policy: This policy categorizes the different products and into different
categories basing on some criteria. Category of goods and services

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Logistics and Support Services Division is one of the hidden department of the bank that most
of the people hardly know about it. But this department helps the bank to carry out the daily
activities smoothly. For this department this report gives the following recommendations

1. Reducing the phone calls by adopting e-mail system


2. Employment of more employees
3. Training for handling the pressure
4. More initiative should be taken to motivate the employees
5. For every department two officers must be employed
6. The Department must adopt E- Tendering for tender.

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