BENGAL INTERNSHIP PROGRAM- 2023

Internship Report
On

Optimizing Local Procurement: Unveiling the Supply Chain Dynamics at

Bengal Group of Industries

Prepared By

Rahat Hasan Priyo

Intern, Supply Chain Management Department

Bengal Group of Industries

Date of Submission: 15 October, 2023

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 TABLE OF CONTENTS

Contents Page

Letter of Acknowledgement 3

Introduction 4

Background 5

Working Procedure at Local Procurement 6-8

Findings 9-10

Recommendations 11-12

Learnings 13-14

Conclusion 15

References 16

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 LETTER OF ACKNOWLEDGEMENT

Respected Concern: HRD,

I am writing to express my heartfelt gratitude for the invaluable opportunity I had to serve as an
intern in the Supply Chain Department at Bengal Group of Industries. It is with great pleasure and
appreciation that I acknowledge the support, guidance, and encouragement I received throughout
my internship journey.

I extend my sincerest thanks to the entire Supply Chain Department for welcoming me into their
team and providing an environment conducive to learning and growth. Your collective expertise,
dedication, and willingness to share your knowledge with me have been instrumental in expanding
my understanding of supply chain management and local procurement.

I would like to express my profound appreciation to my immediate supervisor and mentor, Mr.
Bhaskar Mutsuddy (Sr. Manager, SCM) sir, for his unwavering support, mentorship, and
valuable insights. His guidance and feedback were invaluable in shaping my internship experience
and helping me gain a deeper understanding of local procurement practices.

I am also grateful to all my colleagues in the local procurement team who generously shared their
knowledge, experiences, and best practices with me. Your camaraderie and collaboration made
my internship not just educational but also enjoyable.

Furthermore, I extend my thanks to the entire Bengal Group of Industries family for providing me
with a platform to apply theoretical knowledge in a real-world setting. This internship has been a
transformative experience that has equipped me with practical skills and a deeper appreciation for
the complexities of supply chain management.

Lastly, I would like to convey my appreciation to the leadership of Bengal Group of Industries for
their vision and commitment to fostering a culture of excellence and responsible business
practices. Your dedication to ethical sourcing, sustainability, and continuous improvement serves
as a commendable example in the industry.

In closing, I would like to express my enthusiasm for the opportunities that lie ahead. The
knowledge and experiences gained during this internship will undoubtedly shape my future
endeavors in supply chain management and beyond.

Thank you once again for the privilege of being a part of Bengal Group of Industries. I look
forward to carrying forward the lessons and values I have acquired and contributing to the field of
supply chain management in a meaningful and responsible manner.

Sincerely,
Rahat Hasan Priyo

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 INTRODUCTION

The process of procurement, the lifeblood of any organization, forms the cornerstone of efficient
supply chain management. It is in this arena that the intricate dance of sourcing, negotiation, and
partnership takes place. This internship report, titled "Optimizing Local Procurement: Unveiling
the Supply Chain Dynamics at Bengal Group of Industries," delves into the heart of local
procurement operations within the Bengal Group of Industries.

Bengal Group of Industries, a diversified conglomerate with an expansive footprint in various

sectors, relies heavily on a robust supply chain to ensure seamless operations. My internship in the
Supply Chain Department provided me with a unique opportunity to explore the inner workings
of local procurement, a critical component of the supply chain, and gain firsthand experience in
the procurement processes and practices that fuel the organization's success.

In this report, I will unravel the intricacies of local procurement, from the meticulous planning
stages to supplier selection and evaluation, negotiation and contract formalization, order
placement, and ongoing monitoring. Through my internship, I have uncovered valuable insights
into the strategies and best practices employed by Bengal Group of Industries to optimize local
procurement and maintain a competitive edge in the market.

This report serves as a testament to my journey of discovery and learning during my internship,
shedding light on the vital role that procurement plays in the organization's supply chain, and
offering recommendations for further enhancing its efficiency and effectiveness. Throughout the
pages that follow, you will find a comprehensive overview of my experiences, observations,
findings, and recommendations, all aimed at unraveling the intricacies of optimizing local
procurement within Bengal Group of Industries.

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 BACKGROUND

Bengal Group of Industries stands as a prominent and diversified conglomerate, encompassing a

wide array of business sectors, including manufacturing, real estate, and retail. At the heart of this
expansive enterprise lies a complex and finely-tuned supply chain, responsible for the efficient
flow of resources and materials throughout the organization. Within this multifaceted supply chain,
local procurement emerges as a pivotal function, tasked with sourcing materials and services from
local suppliers to meet the production and operational demands of the conglomerate.

Local procurement, in essence, is the linchpin that connects Bengal Group of Industries with its
regional partners and suppliers. It is the practice of identifying, engaging, and managing local
suppliers to fulfill the organization's diverse needs. This process not only supports the local
economy but also ensures the reliability and availability of essential materials and services for the
organization's various business units.

In recent years, local procurement has gained increasing significance in the broader context of
supply chain management. Bengal Group of Industries recognizes the pivotal role it plays in its
operations and has committed itself to continuously optimizing this facet of the supply chain. The
objective is to not only streamline processes but also to ensure that the procurement practices align
with the organization's values of sustainability, ethical sourcing, and operational efficiency.

As the global business landscape evolves, so too do the demands placed on supply chain functions.
Bengal Group of Industries is committed to remaining at the forefront of supply chain excellence,
which necessitates a deep understanding of local procurement dynamics, supplier relationships,
and the broader market environment.

This background sets the stage for a closer examination of the local procurement practices within
Bengal Group of Industries. In the pages that follow, we will explore the intricacies of local
procurement, from planning and supplier selection to negotiation, contract management, and
ongoing monitoring. Through this comprehensive exploration, we aim to shed light on the
strategies, challenges, and opportunities that define local procurement within this dynamic
conglomerate.

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 WORKING PROCEDURE
AT
LOCAL PROCUREMENT

The local procurement process at Bengal Group of Industries is a meticulously orchestrated

sequence of activities, each contributing to the efficient and effective acquisition of materials and
services from local suppliers. Throughout my internship, I had the opportunity to gain insights into
the inner workings of this intricate process. Below, I outline the key steps and procedures involved
in local procurement:

1. Procurement Planning:
 Material Requirement Identification: The process commences with the identification of
materials and services required to support the organization's various business units.
 Quantity Estimation: The procurement team estimates the required quantities of materials
based on production schedules and operational needs.
 Timelines: Timelines are established to ensure that procurement aligns with production and
operational schedules.

2. Supplier Identification and Evaluation:

 Supplier Database: Bengal Group of Industries maintains a comprehensive database of
local suppliers, categorizing them based on their specialization, reliability, and capacity.
 Supplier Selection Criteria: The procurement team employs a set of criteria for supplier
selection, including quality, reliability, pricing, adherence to ethical standards, and
environmental practices.
 Supplier Performance Evaluation: Ongoing evaluation of supplier performance is
conducted using Key Performance Indicators (KPIs) to ensure compliance with agreed-
upon standards.

3. Negotiation and Contracts:

 Negotiation: Once suitable suppliers are identified, negotiations take place regarding
pricing, payment terms, delivery schedules, and quality standards.
 Contract Formalization: Agreements are formalized into contracts, which outline the terms,
conditions, and expectations for both parties.

4. Order Placement and Monitoring:

 Order Placement: Upon finalization of contracts, orders are placed with selected suppliers,
specifying quantities and delivery schedules.
 Monitoring: The procurement team closely monitors the status of orders, tracking
deliveries, conducting quality inspections, and addressing any potential disruptions in the
supply chain.

5. Ethical and Sustainable Sourcing:

 Adherence to Ethical Standards: Bengal Group of Industries places a strong emphasis on
ethical sourcing, ensuring that suppliers adhere to labor standards and ethical business
practices.

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  Sustainability: Efforts are made to align procurement practices with sustainability goals,
including responsible sourcing and environmentally-friendly practices.

6. Continuous Improvement:
 Feedback Loop: The procurement team actively seeks feedback from internal stakeholders
and suppliers to identify areas for improvement.
 Benchmarking: Benchmarking against industry best practices helps drive continuous
improvement in procurement processes.

The culmination of these steps forms a well-coordinated procurement process that supports the
various business units within Bengal Group of Industries. Each step is meticulously executed to
ensure that materials and services are sourced efficiently, cost-effectively, and in a manner
consistent with the organization's values and operational needs.

In the subsequent sections of this report, I will delve deeper into my findings, recommendations,
and learnings from my internship experience in the local procurement team, offering insights into
ways Bengal Group of Industries can further optimize its procurement operations.

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8
 FINDINGS

Throughout my internship experience in the local procurement department at Bengal Group of

Industries, I had the opportunity to uncover several key findings that shed light on the
organization's procurement practices and the dynamics of its supply chain. These findings provide
valuable insights into the strengths, challenges, and opportunities within the local procurement
process:

1. Supplier Collaboration and Diversity:

 Finding: Bengal Group of Industries actively fosters collaboration with key suppliers,
nurturing long-term relationships that go beyond transactional interactions. Supplier
diversity is emphasized to mitigate risks associated with over-dependence on a single
supplier.
 Implication: Supplier collaboration enhances supply chain resilience, fosters innovation,
and promotes mutual growth. Diversifying the supplier base contributes to risk mitigation
and strengthens the organization's bargaining position.

2. Quality Assurance and Control:

 Finding: The organization places a strong emphasis on ensuring the quality of procured
materials and services. Quality control measures, including inspections and audits, are
rigorously enforced.
 Implication: Stringent quality assurance practices contribute to the organization's
reputation for delivering high-quality products and services. However, maintaining these
standards requires continuous monitoring and investment.

3. Digital Transformation:
 Finding: Bengal Group of Industries is in the process of digitalizing procurement processes.
This ongoing transformation aims to streamline operations, enhance data analytics, and
improve overall transparency.
 Implication: Digitization has the potential to significantly increase efficiency, reduce
manual tasks, and provide real-time insights into procurement operations. However,
successful implementation requires careful planning and adaptation to changing
technology.

4. Ethical and Sustainable Sourcing:

 Finding: Ethical sourcing practices are deeply ingrained in the organization's procurement
approach. Suppliers are expected to adhere to strict ethical and environmental standards.
 Implication: Ethical and sustainable sourcing practices align with the organization's values
and contribute to its social responsibility initiatives. These practices not only enhance the
brand's reputation but also attract socially conscious customers.

5. Continuous Improvement:
 Finding: The procurement team is committed to continuous improvement, actively seeking
feedback from internal stakeholders and suppliers. Benchmarking against industry best
practices is a part of this ongoing effort.

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  Implication: A culture of continuous improvement fosters innovation and agility in
procurement processes. Regular feedback loops and benchmarking help identify areas for
optimization and efficiency gains.

6. Strategic Supplier Training:

 Finding: Bengal Group of Industries invests in supplier training and development programs
to improve supplier understanding of quality standards, ethical practices, and the specific
needs of the organization.
 Implication: Strategic supplier training not only enhances the capabilities of suppliers but
also strengthens the overall supply chain. It ensures alignment with the organization's
quality and ethical standards.

These findings collectively illustrate the organization's commitment to optimizing local

procurement processes while adhering to ethical, sustainable, and quality-focused principles. They
also highlight the need for continuous improvement, digital transformation, and effective
collaboration with suppliers to maintain a competitive edge in a dynamic market environment. In
the subsequent sections of this report, I will provide recommendations based on these findings to
further enhance local procurement practices at Bengal Group of Industries.

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 LEARNINGS

My internship at Bengal Group of Industries in the local procurement department provided me

with a wealth of valuable insights and practical knowledge. These learnings have enriched my
understanding of supply chain dynamics, procurement best practices, and the complex interplay
between various stakeholders within an organization. Here are the key learnings from my
perspective:

1. Procurement Processes and Practices:

 Learning: I gained a deep understanding of end-to-end procurement processes, from
planning and supplier selection to contract management and monitoring.
 Significance: This knowledge equips me with a strong foundation in procurement, a critical
component of supply chain management, which will be beneficial in my future career.

2. Supplier Relationship Management:

 Learning: Building and maintaining strong supplier relationships is crucial to ensure a
reliable and sustainable supply chain.
 Significance: Understanding the nuances of supplier relationship management will enable
me to foster effective collaborations in my professional journey.

3. Ethical Sourcing Practices:

 Learning: I witnessed the importance of ethical sourcing practices and their impact on an
organization's reputation and values.
 Significance: This exposure reinforced my belief in the importance of conducting business
with integrity and ethics, aligning with my personal values.

4. Digital Transformation in Procurement:

 Learning: The ongoing digital transformation of procurement processes highlighted the
pivotal role of technology in modernizing supply chain operations.
 Significance: This learning underscores the significance of staying updated with
technological advancements, which is crucial in today's rapidly changing business
landscape.

5. Continuous Improvement Mindset:

 Learning: I experienced firsthand the organization's commitment to continuous
improvement, emphasizing the importance of feedback and benchmarking.
 Significance: Embracing a mindset of continuous improvement is not only beneficial for
procurement but is a valuable approach in any professional endeavor.

6. Sustainability and Responsibility:

 Learning: Bengal Group of Industries' dedication to ethical and sustainable sourcing
practices showed me the positive impact that responsible business operations can have on
society and the environment.

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  Significance: This learning has reinforced my commitment to responsible and sustainable
business practices in the future.

In conclusion, my internship provided me with a well-rounded and practical education in local

procurement and supply chain management. These learnings have not only expanded my
knowledge base but have also shaped my values and approach to conducting business. I am grateful
for the opportunity to have been a part of Bengal Group of Industries and look forward to applying
these learnings in my future professional endeavors to contribute effectively to supply chain
optimization and ethical business practices.

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 RECOMMENDATION

Based on my observations and findings during my internship in the local procurement department
at Bengal Group of Industries, I would like to offer the following recommendations to further
enhance and optimize local procurement practices within the organization:

1. Supplier Collaboration and Development:

 Recommendation: Strengthen and formalize collaboration initiatives with key suppliers.
Consider establishing strategic partnerships with suppliers to foster innovation and mutual
growth.
 Rationale: Closer collaboration with key suppliers can lead to improved responsiveness,
quality, and cost-effectiveness. Such partnerships can result in joint initiatives, including
co-development of products or processes, ultimately benefiting both parties.

2. Enhanced Supplier Performance Metrics:

 Recommendation: Further refine and expand supplier performance metrics to ensure
alignment with organizational objectives. Develop specific KPIs that emphasize quality,
reliability, and sustainability.
 Rationale: Clear and specific KPIs incentivize suppliers to excel and meet the
organization's evolving needs. Enhanced metrics can provide a more comprehensive view
of supplier performance beyond traditional measures.

3. Accelerate Digital Integration:

 Recommendation: Expedite the digital integration of procurement processes, embracing
modern procurement technologies such as e-procurement systems, spend analytics, and
supplier portals.
 Rationale: Digital transformation can significantly increase efficiency, reduce manual
tasks, and provide real-time insights into procurement operations. It also enables better
data-driven decision-making and enhances transparency.

4. Sustainability Initiatives:
 Recommendation: Strengthen sustainability initiatives by working closely with suppliers
to embrace sustainable and environmentally-friendly practices, such as reducing waste,
energy consumption, and carbon emissions.
 Rationale: Aligning procurement practices with sustainability goals not only contributes to
corporate social responsibility but also resonates with environmentally conscious
customers, enhancing the organization's brand reputation.

5. Supplier Training and Development:

 Recommendation: Invest in supplier training and development programs that focus on
quality standards, ethical practices, and a deeper understanding of the organization's
specific requirements.
 Rationale: Well-trained suppliers are more likely to consistently meet quality and ethical
standards. This investment contributes to a more capable and reliable supplier base.

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6. Risk Mitigation Strategies:
 Recommendation: Develop and formalize risk mitigation strategies that address potential
disruptions in the supply chain, such as natural disasters, geopolitical factors, or economic
crises.
 Rationale: Proactive risk mitigation measures can enhance the organization's resilience and
preparedness to navigate unforeseen challenges, ensuring a continuous supply of critical
materials.

7. Cross-Functional Collaboration:
 Recommendation: Encourage cross-functional collaboration between procurement,
production, and other relevant departments to improve demand forecasting and alignment.
 Rationale: Collaborative efforts between departments can lead to better demand planning,
reducing the risk of overstocking or stock outs and optimizing inventory levels.

8. Performance-Based Contracts:
 Recommendation: Explore the implementation of performance-based contracts that link
supplier payments to key performance indicators and quality standards.
 Rationale: Performance-based contracts motivate suppliers to consistently meet and exceed
performance expectations, ensuring a high level of service and product quality.

9. Supplier Evaluation Periodicity:

 Recommendation: Review the frequency of supplier performance evaluations and consider
conducting more frequent assessments for critical or high-value suppliers.
 Rationale: Frequent evaluations can provide timely insights into supplier performance,
allowing for rapid adjustments or improvements when necessary.

These recommendations, when thoughtfully implemented, have the potential to enhance the
efficiency, reliability, and sustainability of local procurement practices within Bengal Group of
Industries. By embracing these suggestions, the organization can continue to optimize its supply
chain operations and maintain a competitive edge in an ever-evolving business landscape.

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 CONCLUSION

My internship journey in the local procurement department at Bengal Group of Industries has been
an enlightening and enriching experience. It provided me with a unique opportunity to explore the
intricate web of supply chain dynamics and the pivotal role played by local procurement in
ensuring operational excellence within the organization. As I reflect on my time at Bengal Group
of Industries, I am struck by the wealth of knowledge, skills, and insights that I have gained.

Throughout my tenure, I delved into the intricacies of procurement processes, witnessed the
relentless pursuit of quality, and observed the dedication to ethical and sustainable sourcing
practices. The ongoing digital transformation in procurement underscored the organization's
commitment to staying at the forefront of technological advancements. Furthermore, the emphasis
on continuous improvement and supplier collaboration demonstrated a proactive approach to
staying competitive and responsive to market dynamics.

The findings and recommendations outlined in this report are not merely academic observations;
they are a testament to the organization's dedication to excellence. Bengal Group of Industries has
created an environment where innovation, responsibility, and collaboration thrive, setting a
benchmark for supply chain management in the industry.

My learnings from this internship extend far beyond the technical aspects of procurement. They
encompass the values of integrity, sustainability, and ethical business practices. These principles
are not just integral to Bengal Group of Industries but have also left an indelible mark on my
professional ethos.

In conclusion, I express my sincere gratitude to Bengal Group of Industries for providing me with
this invaluable internship experience. The insights I have gained, the skills I have honed, and the
values I have embraced will undoubtedly shape my future career endeavors. As I step into the
world of professional supply chain management, I carry with me the lessons and experiences from
this internship, which will serve as a guiding light in my journey toward excellence and responsible
business practices.

I look forward to applying these learnings and contributing to the field of supply chain
management, not just as a testament to my growth but also as a tribute to the remarkable
organization that is Bengal Group of Industries. This internship has not only been a significant
chapter in my academic and professional journey but has also enriched my perspective on the
profound impact that procurement can have in building a responsible and sustainable future.

In the spirit of continuous improvement, collaboration, and innovation, I conclude this internship
report with a sense of gratitude, enthusiasm, and anticipation of the exciting possibilities that lie
ahead in the world of supply chain management.

Thank you, Bengal Group of Industries, for this transformative experience.

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