ERP System in Arong

ERP system of Aarong
COMPANY PROFILE:
In the 1970s, BRAC was examining any and all possibilities for alternative forms of productive
livelihood, especially for women, and the proper commercialization of arts and crafts turned
out to be a promising option. In 1976, Ayesha Abed, the wife of Sir Fazle Hasan Abed, founder
of BRAC, initiated many of the major activities of Aarong by identifying and experimenting
with various crafts that women could produce at home such as nakshi kantha, embroidered
goods, baskets, mats and items made of cane, bamboo and jute. However, the two main
obstacles to turning craft production into a worthwhile enterprise were maintaining good
quality and proper marketing. In 1978, BRAC entered into a joint venture with the Mennonite
Central Committee, the international development arm of the Mennonite Church, to open a
shop in Dhaka called Aarong meaning 'village fair.
The Mennonites had a long experience of producing handicraft to generate income and had
established a program called Ten Thousand Villages, which worked with artisan groups around
the world and sold their products through catalogues and retail shops in the US and Canada.
In the first year the Mennonites assisted with the business side of the operation while BRAC
worked to develop the skills of village women and their products. During the late 1970s and
early 1980s, BRAC focused on developing Aarong's product lines and production capabilities.
They began to study and catalogue the designs and motifs of traditional art forms by visiting
museums, elderly craft masters and private collectors. They experimented with indigenous
forms and materials, adapting them to possible new lines. They hired master craftsperson to
help train village women and created a textile design and service workshop in Manikganj to
experiment with materials and technologies in stitching, weaving and dyeing.
Aarong's reach has spread beyond Manikganj to the rest of the 64 districts of the country. It
has grown into a thriving enterprise showcasing ethnic wear to crafts from silks, handloom
cotton, endi to terracotta, bamboo, jute and much more. From a single shop, Aarong has grown
into one of Bangladesh's biggest retail chains, with 13 stores spread across the major
metropolitan areas of the country
in Dhaka, Chittagong, Comilla, Khulna, Sylhet and Narayanganj.
PROBLEM or SITUATION:
maintaining a worksheet manually
In the very first day Aarong was maintaining a worksheet manually to maintain their design
number. So it was very obvious to give same design number by more than one designer. Then
they introduced token system for maintaining their design number sheet. But the problem with
the token number system was that if there is a problem with the design the token number will
be spoiled. It is wastage of a token number. So they need to maintain a database.
Problem to Identify the loyalty enlisted customer
There was no process for segmentation of the customer. There was a problem for selecting
loyalty based customer like lifestyle, gold and platinum.
Realization:
Their manual system was not sufficient and they needed to replace it with a high-
performance, but cost-effective management software. so the company wanted to
implement a system to get management software that could integrate the sales
workflow, as well as the production process in a clean and organized way.
Needed a system that could take care of invoicing, follow up on outstanding invoices.
SOLUTION and IMPLEMENTATION:
In the end their discussion Aarong decided to implement ERP solution .The installation and
implementation of ERP was handled by its own IT department in 2013. A few days later a
consultant from Aarongs IT introduced ERP with a 4-day training program.
Developed several module:
Design
Marketing
Sales management
Retail
Research
CRM
invoicing
BENEFITS:
The key benefits achieved by using ERP were:
Create link among all the relevant department:
create link among different department of the organization.
lower administrative costs
Accurate reporting and reduction of cycle times.
Satisfy customers needs promptly and cost-effectively
Filtering the customers through age wise, occupation wise, gender wise they categorize the
customers and their need. Since many of the products are personalized according to priority
based customer its possible to give individual offer/sales order.
Filtering the design according to outlet efficiently
With the use of ERP(CRM) Aarong can filter the mostly wanted design and designer. And
also the location where the product is selling rapidly. in this way they can increase their wanted
production. .
Reengineering:
Here we can say,

Small r-Minimal change in the software and process
Big R-Extensive change in the software and process
Q1-Minimal change in the software and in the organization
Q2-Extensive change in the organization
Q3-Extensive change in the software and organization
Q4-Exteansive change in the software and minimal change in the organization
So we can consider Aarong in Q4 situation.

Employee Review:
1.Rahat Islam(Department of Information Technology)

Basically the IT person dont have any advantage or disadvantage regarding their ERP system.
Monitor maintenance and support the system.
2.Eleeza Helen(Design Department):
Very effective for them. As No duplication of the design.
3.Mr. Akramul Tarafder (Retail department):
Maintaining the no. of selling product. Avoid the repetition of selling.
4.Mr. Tahmid Kabir (Research Department):
Getting all the reports from other department and preparing the final report
5. Jannatul Ferdous (Customer relationship management):
Calculate the point for loyalty based customer and send sms from ERP

ERP System in Arong

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ERP system of Aarong

Problem to Identify the loyalty enlisted customer

Developed several module:

The key benefits achieved by using ERP were:

Create link among all the relevant department:

create link among different department of the organization.

lower administrative costs

Accurate reporting and reduction of cycle times.

Satisfy customers needs promptly and cost-effectively

Filtering the design according to outlet efficiently

Here we can say,

So we can consider Aarong in Q4 situation.

1.Rahat Islam(Department of Information Technology)

2.Eleeza Helen(Design Department):

Very effective for them. As No duplication of the design.

3.Mr. Akramul Tarafder (Retail department):

Maintaining the no. of selling product. Avoid the repetition of selling.

4.Mr. Tahmid Kabir (Research Department):

5. Jannatul Ferdous (Customer relationship management):

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