University of Dhaka

Management of Supply Chain

Report on “Bata”

Submitted To:
Dr. Md. Thoufiqul Islam
Professor
Organizational Strategy and Leadership

Submitted By:
NAME ID
Asadul Islam Anik 91702055
Ruhul Islam Rabby 91702058
Sumi Sarkar 91803034
Alvi Raihan Simato 91803037
Fariha Chisty 91803055

Submission Date: 11th December, 2019

ABOUT BATA BANGLADESH
The Bata Shoe Organization was founded in 1894 by Czech businessman Tomas Bata in the
city of Zlin, what was then Czechoslovakia. Coming from a family of shoemakers with a long
heritage of eight generations and over three hundred years, Tomas Bata capitalized on
knowledge, expertise and skills to propel his newly founded company forward. The
introduction of factory automation, long distance retailing and modernized shoe making
ensured the profitability of the company from the very beginning. It is now the world’s largest
manufacturer and marketer of footwear operating across the globe.

Since its founding, Bata has been at the forefront of innovation; not only in the production and
design of new styles, but in the creation of business models that permit a quick response to the
ever changing wants and needs of our customers. As a result, Bata enjoys a long history as a
leading manufacturer and retailer of quality footwear, and proudly serves some one million
customers each day.

Today the Bata Shoe Organization is a sprawling geo-centric company encompassing

operations in more than 70 countries around the world. It serves over 1 million customers per
day, employs more than 30,000 people, operates more than 5,000 international retail outlets,
manages retail presence in over 70 countries and runs 27 production facilities across 20
countries.

Bata’s reach is worldwide; its presence is local. Our novel international manufacturing
structure allows Bata facilities around the globe to respond to the unique needs and wants of
local customers. As a result, Bata is honored to be a local company in every country it serves.
Bata continues to be guided by the same core principle it has followed for over one hundred
years: to know its customers and to create the best possible products to meet their needs.

In Bangladesh, Bata started its operation in 1962. Currently Bata Shoe Company (Bangladesh)
Limited operates two manufacturing facilities – one in Tongi and the other in Dhamrai. With a
production capacity of 160,000 pairs of shoes daily. Annual shoe sales currently stands about
30 million pairs.
MISSION, VISION & VALUES
Vision: -To make great shoes accessible to everyone!
We can get to know from the vision of Bata that how concerned they are regarding the
purchasing capacity of the local people of every country. And that is why it is said that, Bata’s
reach is worldwide but its presence is local.

Mission: -
 We help people to look and feel good by continuously focusing on product quality,
innovation and value.
 We become the customer’s destination of choice by offering a personal shopping
experience to create long standing customer relationships.
 We attract and retain the best people by showing great leadership, a passion for high
standards, our respect for diversity and a commitment to create exceptional
opportunities for professional growth.
 We remain the most respected footwear company by socially responsible and
ethical

Values: - Our products have to make our customers look good and feel great. We become
our customer’s choice by offering a personal shopping experience to create long standing
customer relationships. Therefore, at Bata the below values are five integral parts of our way
of working:

o Serve with passion: -Bata always try to provide their products with great service
and passion. Their sales representatives are given proper training for better service.
o Be Bold:-Bata encourages youth to make themselves independent and bold by
wearing their shoes.
o Count on: They are very confident about their brand by thinking whatever they are
doing we can count on them.
 o Exceed Customer Expectations: -Their product always exceeds customer
expectation through quality, service, variant & offers.
o Improving Lives: -Bata launch different kinds of variant to improve customer lives.
Such as-Doctor Sole.

BATA BUSINESS
Though Bata has been a business organization that is why they have been making profit by
serving people. Mainly they have been selling footwear and accessories but still there are some
others stuffs are also included in their business operation and they are:

 Wholesaling: BSO which stands for Bata Shoe Organization and this organization
(BSO) has a different brand image in the wholesaling market place. They get more
advantages and all other facilities than any other organization or businesses. But the
biggest advantage that Bata Shoe Organization (BSO) gets is they get high quality
products but comparatively at a cheap price which means at a local price and Bata has
been getting this offer from global economies of scale.
 Retailing: Bata Shoe Company limited they studied really hard in terms of
understanding customer mind, their wants and desire towards their products. And based
on that Bata has been making their products by thinking their customer’s lifestyle,
income level, desire and everything. And all these stuffs made BSO which is Bata Shoe
Organization world’s one of the best in the business.
 Manufacturing: Bata Shoe Company (Bangladesh) Limited is the very first one
who built manufacturing plant for making shoes on large scale in the country.
Basically the founder of Bata Mr. Tomas had a different thinking from the very early
of his business just to take the shoemaking industry at the top among all other industries
in the world and from that perspective Tomas is really a succeed person today. Behind
his success his high thinking and high hope played a vital part which we have to admit.

DIFFERENT PRODUCTS OF BATA

Bata is the largest footwear company in the world by volume in terms of selling 1 million shoes
daily and they have number of different items of their different products which is mainly based
on footwear, clothing and accessories. For footwear, Bata shoe company they have
categorized their products into three different sectors, like men, women and kids. They have
different items for men, women and kids as well. For men they have formal shoes, casual shoes,
sandals, for women they also formal shoes, stylish sandals etc. They have also categorized
kid’s items into two different sectors like boys and girls. For both boys and girls they have
shoes, sandals and sports shoes. In accessories items Bata has brought ladies bag, men’s bag,
shades, school bag for kids etc. for their customers. Not only this they have made some products
which can be used both by the men and women like they have brought “walking footwear
“which can be used by both. And recent times they have attracted one of their specific group
of customers by bringing new item which is “ High cut PU injection waterproof industrial
safety footwear “ and their another new innovation item “ Footwear Phylon “ also took their
customers eye on it. So Bata has been innovating with new ideas and design shoes for their
customers just to attract even more customers worldwide.

ALL CATEGORY OF BATA

 Bata: Bata comfit promises unmatched comfort to its customers. Through

anatomically designed footwear, soft uppers and foot beds featuring latest cushioning
technologies, the brand delivers comfort like no other. Bata comfit leverages chic,
contemporary designs with its patented comfort technology to ensure the wearer stays
relaxed and stylish all day long.
 North Star: This brand designs and markets shoes that are specifically designed for
the young. This dynamic and versatile brand relies on its creative and innovative
designs to capture the attention of the young and the young at heart. This brand has
continuously proven itself as a force to be reckoned with when it comes to shoe-design.
Not only relying on how their footwear look, this label also takes on the quality of its
products seriously.
 Power: Power has been true to its promise by successfully designing and marketing
contemporary, durable and comfortable mid-priced athletic footwear worldwide. With
style, comfort and durability in mind, the products are excellent for athletic and sports
enthusiasts.
 Marie-Claire: The Marie-Claire brand of Bata is specifically for women. This brand
offers more than 100 designs within varies price ranges. This brand effectively targets
and serves young working women who want durable and fashionable shoes for work
priced at reasonable ranges.
 Hush Puppies: Hush Puppies is the international brand, Bata uses the franchising
power to supply the product in the Bangladeshi market. The target customers of this
model are rich people.
 Weinbrenner: At the forefront of innovation for over a century, Weinbrenner has
created sturdy footwear for both adventuring and leisure time, no matter whether you
are hiking across mountains, forests, deserts or rambling through concrete jungles.
 Adidas: adidas has its roots in Germany but we are a truly global company. Around
the world we employ over 57,000 people. Employees from about 100 nations are
working at our global HQ in Herzogenaurach, Germany – the ‘World of Sports’. Every
year we produce over 900 million sports and sports lifestyle products with independent
manufacturing partners worldwide. True. But we keep things simple, lean and fast. And
we will use this approach now to give an overview of what our company is all about.
 Comfit: Comforting, bracing, reassuring; Bata Comfits look out for your feet.
Providing continuous sustenance and gentle support. Comfit's advanced ergonomic
design gently supports your feet every step of the way. Super-soft uppers and a
cushioned insole and heel surround your feet with tenderness. A durable non-slip sole
makes sure you're safe. You can count on Bata Comfit.
 PataPata: Pata Pata is Bata’s label; it is the ultimate expression of African culture,
color, rhythm, and positive vibe. It is the footwear for many occasions that provides
timeless simplicity, enjoyment, and comfort. Originally registered in Kenya in 1981,
Pata Pata was created by merging the rich history of African art, ethnic crafts, music;
textiles and sunny energetic sceneries into cheerful every day wear flip flops designs.
The collection captures World Wide Summer Trends, Inspired by Africa's diverse
beauty and Colorful history.
 Naturalizer: Naturalizer shoes are all about comfort and style. These shoes are
designed with the best of each season's trend-right looks, details and materials. With
rich leathers, soft suede’s and unique details, Naturalizer footwear captures the essence
of modern femininity.
 Sandak: Sandak is plastic made Bata product for lower income people to use in every
season of the year. This shoe is also made for rough use for all level of customers.
 Bubblegummers: Stylish and colorful shoes for active kids. An international brand,
specializing in children’s footwear, clothes and accessories, which is constantly
 innovating new designs and enhancing the quality of its products. Bubblegummers
specializes in fun, fashionable footwear with an emphasis attention to the needs of the
growing feet of the little stars.

BATA FULL SUPPLY CHAIN

Upstream: In upstream we can find all the supply chain from supplier to manufacture. For
Bata we can see there are 3 main supplier 1st sole industry 2nd leather industry 3rd other. From
this 3 supplier they collect all their main item to manufacture the shoes. Then its goes to the
manufacture there are 2 try of manufacturer one is Bata & other one is the local manufacture
those who make product for Bata. Others stuffs are also included in their operation and they
are:

 Sole Industry: sole is an important part for shoes. It’s the robber part that placed
under the foot. Bangladesh have many small sole industry but Bata take their sole from
selected industry like Exp. Freight Pvt., Ltd, M.N.C. Apparels Ltd., Interairsea Ltd. Etc.
 from this sole industry they collect the sole & send it to the Bata manufacture. Then the
next step start from there.
 Leather Industry: Leather is the most important party for shoes & Bata try to use
the best quality leather for their shoes so they take the best leather from Hajaribag &
some small leather industry. They have some fixed mill those are Helena Enterprise
Ltd, All Right Leather Corporation, Global Star Ltd & Bata Shoe Co. (Bangladesh) Ltd
etc.
 Others: In this part the other supplier are the glue, the machines that are used for
shoes making, the yearn use to tie the shoes.
 Bata manufacture: In own production Bata produce shoes in their own factories.
They have two manufacturing plant. Leather products are manufactured at the Dhamrai
plant and Rubber items are manufactured at the Tongi plant.
 Local sourcing department (LSD): They order shoes from local supplier in this
process. First Bata send their design to the local supplier, then they make a sample and
send it to Bata.
 Importer: Bata order shoes from China mainly, but they also have supplier in
Malaysia. In this process supplier send the design to Bata, If Bata wants to change some
design they can place their suggestion.

Downstream: In downstream we find the full supplier list of Bata from Bata manufacture
to customer. Others stuffs are also included in their operation and they are:

 Quality check in production line: Bata & LSD send there product to this line
then the department under Bata check the quality of that product then its go to next part.
In this both the Bata & LSD product came here for quality check.
 Quality check by importer: In this part production supplier check the quality in
detail. Because Bata didn’t take any responsibility for the importer product so it’s the
supplier duty to check the quality then send the product.
 Center Distribution center: After quality check the products go to distribution
center. Bata have 15 distribution manager how take care of the product & distribute the
product as they think is good for the company.
  Store: from the distributing center its came to the store. The store manager keep the
product for display. They have 140+ store in Dhaka city. All the product came to the
stores then it’s sold from there.
 Customer: Customer came to the store & take there product from here. This is how
the product goes to the customer hand from manufacture.

COST ANALYSIS OF BATA

Multiple factors are related to measurement cost of Bata. Mainly labor cost, transportation cost,
outsole cost, material cost, factory cost are their main concern factor.

Cost Analysis PESTLE

of BataAnalysis
Labor Cost Transportation Cost

Material Cost

Outsole Cost

Factory Cost

Bata use Price-Quality Leadership approach. They set the price based on value. In some
country they target high quality niche and in some country price sensitive segment. Everywhere
they set the price based on value they delivered. Bata follow geocentric pricing techniques.

They use their own transportations which is help to reduce their cost. Bata always emphasize
their product quality. That’s why their cost is high comparative to others brand. In our
country Bata have 240+ stores so that consider their outsole cost. When they set their costing
factory cost are include here. Material cost and labor cost are the main cost of Bata.
MANUFACTURING:

Bata has divide their manufacturing process into 3 steps:-

1. Own Production:-In own production Bata produce shoes in their own factories. They
have two manufacturing plant. Leather products are manufactured at the Dhamrai plant and
Rubber items are manufactured at the Tongi plant. Innovation in Shoe manufacturing process
works as a competitive advantage for Bata. Important development in DVP (Direct
Vulcanization process), PVC (Poly vinyl Chloride) in the manufacturing process and
introduction of athletic and slush-molded footwear have established Bata as unique footwear
brand. After production their quality in charge team check all the product and sent it to CDC
(central distribution center). In CDC Bata has 12 category manager. Category manager have
all the information through system. They distribute the product based on customer need.

2. Local Production:-In local production Bata produce their product from LSD (local
sourcing dept.) They order shoes from local supplier in this process. First Bata send their design
to the local supplier, then they make a sample and send it to Bata. If Bata like the sample they
negotiate with the cost. After negotiation they fix the price and make the products. After
making the product Bata check the quality if they find some default pair of shoes they send to
the LSD. Then they send all the shoes in CDC. Category manager distribute products according
to the availability. Some Local supplier are: Silvia Footgear, Ashraf Footwear. Their maximum
LSD located at Narayangonj & Gazipur.

3. Import: -In this case they order shoes from foreign supplier. Every year Bata go to CFF
(China Footwear Fair) they collect the sample from all the supplier and their contact detail.
Then they place their order. Bata order shoes from China mainly, but they also have supplier
in Malaysia. In this process supplier send the design to Bata, If Bata wants to change some
design they can place their suggestion. After production supplier check the quality in detail.
Then they send the product In Bangladesh Bata hire a Freight forwarding agency who clear all
the clearance in customs. And send the products in CDC.

DISTRIBUTION
Bata’s distribution network is very simple. They have CDC (Central distribution center) where
all the product gathered for the distribution. In CDC 12 category manager collect all the
information through system. Retailer put all the information in the system.

Based on that information category manager distribute all the product based by their own
transport. Such as:-In Gulshan 2 outlet doesn’t have Marie Clare pairs, because all shoes sold
out but in Gulshan 1 outlet have more Marie Clare. The manager send more Marie Clare in
Gulshan 2 outlet from Gulshan 1 and CDC and send less Marie Clare in Gulshan1.
They use their own transportation in supply chain process. In every region Bata have sales
manager they receive all the product. Then they give permission to the store manager to display
all the product.
DISTRIBUTION NETWORK
Manufacturer: -Manufacturer produce the product from local supplier and foreign supplier.
They get all the information from category manager.

CDC: Central Distribution Center is a place where all the category manager receive product
from the manufacturer.

Retailer: Retailer collects product from CDC and display them in showroom. They also
collect information from customer and load in to the system for the category manager. Basically
all the information go to the retailer first and after that retailer provide them to the category
manager. Retailer play the middleman between customer and CDC.

Customer: The final stage is the customer who buy Bata product with affordable price.
RETAIL FUNCTION
Wholesale function is conducted by Dealers. They are two categories of dealers,
1. DSP (Dealer Sales Program)
2. RWD (Registered Wholesale Dealer)

DSP:- A DSP dealer usually sells Bata Shoes and its accessories in the location where
Bata does not have any retail store. Their business is conducted in small towns.

RWD: - However RWD sell Bata Shoes alongside shoes of other brands. Both DSP and
REWD buy Bata Shoes at commission. They are given a certain target to achieve. If they are
successful to reach the target, they enjoy incentives on that.

PRODUCT RETAIN POLICY

Customer go to the show. In the showroom there are claim department where customer can
return or claim the product. If the product is produced by own factory Bata destroy the damaged
product and if the product is produced by local and foreign supplier they return it to them.
CLAIM STATEMENT POLICY
The major problem with claim settlement is most of our valuable customers are still
unaware of the claim policy that Bata follow. Therefore when customers request
them for a claim settlement without fulfilling the criteria, Bata need to make them
understand them the following condition:

• They can only accept the request for a claim only if the customer has
encountered t he defect within 30 days of purchase
• The shoe was properly used and no incidental damages happened
• The customer need to have the cash memo

However, there are critical situation where the customer does not have the
cash memo and still demanding for a claim settlement. In those cases, Bata
look for alternative an option which includes asking for a transactional
r e fe r e nc e a s a substitute of Cash memo. Two form o f transaction reference
can be considered as a substitute of the cash memo.

• If payment was done thought a debit or credit card, the customer

can ask for a transactional record sheet from the respective band
and use it as a substitute of Cash memo.
• If the customer is a Bata Club member, all of his/ her transaction will
get recorded in our system. We can use that a substitute if cash memo.

MAJOR RISK
Bata only have one major risk when they order product from foreign supplier, they have some
quality assurance issue. For this Reason Bata make deal with foreign supplier that if they find
damaged product they will return it and all liabilities will be carried forward by foreign
supplier.