COMBATING THE TRAFFIC PROBLEMS OF BANGLADESH THROUGH SUPPLY CHAIN

1. SL. No.: To Be Assigned by ISCEA
2018 ISCEA
PTAK PRIZE
TEAM: BUPB-0118-18
Team Member-1 Team Member-2
Name: MARIA NAZIFA Name: Sharif Bin Abu Shahriar
Signature: Signature:
Team Member-3 Team Member-4
Name: Adib Arman Name: Md.Mostafa Asef Rafi
Signature: Signature:
Last Date of Submission: June 08, 2018

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OVERVIEW
Bangladesh has become the new Asian Tiger. She is the only fifth country to
have achieved this honorable title for her fast growing economy.
Bangladesh’s annual GDP is now 7% and its already on the verge of taking
this rate to 8% by flourishing its economy to different sectors by patronizing
an ideal supply chain process.But due to the most common problem of
Bangladesh i.e. Traffic Congestion we are facing hindrance to achieve our
desired GDP.So,to combat this problem in order to eliminate all the hurdles
on our way to achieving 8% GDP we have prepared our solution.Our Big
Idea creates a horizontal collaboration across the industrial sectors of
Bangladesh to overcome the challenges that our industries supply chain is
facing due to traffic congestion.
The implication of our Big Idea will be conducted in numerous juncture
where we have applied some models (Conclave model, Buffer Warehouse
model, Crossing-Dock Model,Traffic Jam Supply Chain Model).We have
intuit the objectives of the model and the long-term impacts and the short-
term impacts that the model will accomplish by solving the problems.
Timeline for the activation of the models are also provided in our solution.

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We will be analyzing the overall situation that has been given in our case in
two ways. These are
❖ Traffic Congestion
❖ Supply Chain(Across all the industries of Bangladesh)
Here we will try to connect the present scenario of Traffic Congestion and
its aftermath in our overall Supply Chain .
SITUATION ANALYSIS & CAUSES
1 Deplorable Condition of the Roads
The Roads are full of holes, open man holes
and broken brick pieces
Due to lack of drainage system and these
holes during monsoon the roads become
over flooded which causes traffic congestion

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2 Unplanned Construction Works
Shops and other floating structures are setting up by
absorbing the road space which is making the roads
more narrow for transportation
Permanent structures like buildings are not abiding
the rules of RAJUK & REHAB of keeping 20 ft road
space for easy transportation
3 Lack of Traffic Management
There is a serious mismanagement in our traffic
control system. In this age of science and technology
the traffic signals are conducted manually.
Vehicles for different purpose viz school, office,
business etc. due to mismanagement run on the
street at the same time in the peak hours which is
causing serious traffic congestion.

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Now, we will utilize the analysis of our traffic congestion scenario to
evaluate the overall scenario of our Supply Chain System.
4 Wastage of resources
1 Wastage
Due to severe Traffic Congestion inventories or Raw
materials are getting wasted on the road when
transported from the factories to the retail shops or
the wholesale shops in the city
2 Rising up of cost
Due to severe Traffic Congestion the price of the
inventories are increasing in somewhat geometric
fashion. The increased price consist of the price from
transport’s fuel to everything relate to transportation
which gets exhausted while its stuck in the congestion.

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PROBLEMS
• Traffic Congestion is wasting about 5 working hours which worth’s
about Tk 37,000 crore.
• This huge amount of wasted resource is eating up about 6% our
annual GDP
• Hampering the business environment as the supply chain system is
disturbed.
• Blocking the way for achieving the esteemed 8% Annual GDP
Growth
POTENTIALS
To reduce traffic congestion the Government has undertaken some projects
in joint venture with foreign countries and some through the national
fund.These are as follows:
✓ Rapid Bus Transmit: The Roads and Highways Department inked a
deal with Chinese firm Gezhouba Group Co Ltd on Thursday for
constructing a 16-kilometre transit lane, 32-kilometre pavement and
a separate lane for slower vehicles.
✓ Metro Rail line: To reduce the presence of huge number of
unreliable public transport in the road the Government has
3 Value addition is disrupted
Due to severe Traffic Congestion the overall supply
chain gets disturbed due to the mismanagement
occurred for traffic congestion.As a result the supply
chain’s productivity is sapped.

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undertaken the Metro Rail Line project.It is expected that it will
reduce a pretty good amount of traffic congestion in the city.
✓ 4-laning of Highways-At present the highways are also becoming
congested due to large amount of vehicles and narrow roads.As a
result the Government has started to increase the size of the road by
converting the double lane roads into 4 lanes.
✓ Dhaka-Chittagong Express Way-To pace up the traffic system in
Dhaka- Chittagong Highway,Government has undertaken the
project of constructing Dhaka-Chittagong expressway
For a perfect overview of the projects please look into the Exhibition
section

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THE BIG IDEA
FOOTPRINT:
1. Good Traffic Management.
2. Good Management of Inventory
3. Supply Chain will be more efficient and developed
4. Business environment will be developed
5. Government will be able to attain the targeted GDP Growth rate
Increase the efficiency of
Supply Chain
A Horizontal Collaboration between industries through the
aid of different ministries to overcome the challenges of
Supply Chain caused due to Traffic Congestion and
increasing the operational efficiency of the supply chain
Reduce Traffic
Congestion

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Activation of Big Idea
Phase 1
Objective- Increase efficiency of the supply chain and business
environment by increasing connection among different industries
through Horizontal collaboration
Strategy used- Conclave Model
FIGURE 1- CONCLAVE MODEL
A Conclave will be formed by the Industrial Entrepreneurs of the country
which will be headed by the Commerce Ministry.Here,the heads of the
industries having the same product or production line will discuss about
the problems they are facing to maintain the smooth flow of supply chain
within them or the inter industry.This will increase the inter firm

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communication and the efficiency in maintain a healthy business
environment of the country.Then the problems that will pop up will be
represented to the Commerce Ministry.Then the Commerce Ministry as
per the problems will mitigate with the respective ministries..Then the
solution of all the problems will be done under the Commerce Ministry in
collaboration with other respective minsitries.
Figure 2-Process of the Conclave Model in identifying and mitigating problems
Problems presented by
the board to the
commerce ministry
Problems presented to other
ministries by commerce
ministries as per the problem
Problems will be
solved under the
commerce ministry

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Problems it will solve:
a) Inter-firm connection will increase within the industry.
b) Main problems in the roads and highways and their mode of solution
will come out through constructive decisions.
c) Business environment will be efficient
d) Supply chain’s disturbances will be reduced.
Impact
A. The poor condition of the roads and highways are expected to be
solved.
B. Firms of the industry will work together due to horizontal
collaboration which will make the supply chain more efficient than
ever.

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Phase 2
Objective-Increasing the smoothness of Supply Chain through smart
management & transportation of Inventories
Strategy - Buffer Ware House Model
Figure3-Buffer Warehouse Model
The supply Chain can be smooth if there is smart management of inventories
through technology.
A mobile application can be launch which will be powered by BIDA
(Bangladesh Investment Development Authority) .In this app almost all the
retail shops, wholesale shops and manufacturers of Bangladesh will be
enlisted.In this app every thing related to supply chain will be present from
availability of raw materials to pricing.Here,when a retail shop will need
supply of a particular commodity they can directly connect with the
manufacturer without crossing any 3rd
parties or such.Then they can present
their demand and queries to the manufacturer.After this the manufacturer

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will search the right commodity of the right quantity for the retail shop form
their warehouses near to the location of the retail shops.Then from the
warehouses the goods will be distributed to the retail shops through
distributor.
Figure 4-Process of Buffer Warehouse Model
Moreover, through this app the manufacturers can set up warehouse easily
through online application to the ministry of land or other concerned
bodies.
Due to this model only the right amount of inventories will be delivered to
the retailers.As a result only those vehicles will run on the roads those are
on duty.
Problems it will solve
a. Mismanagement of inventory.
b. Sluggishness in flow of information
c. Proper utilization of supply time
d. Traffic congestion to some extent

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e. Administrative problems in Government level approval of
permission.
Impact
A. Efficient management of inventories will be done as inventories will
be stored in the warehouse as per the demand of the retail shops by
the manufacturer
B. Traffic Congestion within the city and in highway will cut down as
the number of trucks or vans will slump down with the slumping
down of uncalculated demand.

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Phase3
Strategy: Cross Docking Model
If the buffer warehouse model is estimated to be costly or difficult to
implement another strategy known as “Cross-Docking” can be applied
which can keep the supply chain smooth and swift
Figure 5-Cross Docking
In cross docking model the suppliers or manufacturers will directly
distribute their products to the customers or retail chain with no storage
time. Cross docking takes place in a distribution docking terminal; usually
consisting of trucks and dock doors on two (inbound and outbound) sides
with minimal storage space. The name ‘cross docking’ explains the process
of receiving products through an inbound dock and then transferring them
across the dock to the outbound transportation dock. In simple terms,

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inbound products arrive through transportation such as trucks/trailers, and
are allocated to a receiving dock on one side of the ‘cross dock’
terminal. Once the inbound transportation has been docked its products can
be moved either directly or indirectly to the outbound destinations; they can
be unloaded, sorted and screened to identify their end destinations. After
being sorted, products are moved to the other end of the ‘cross dock’
terminal via a forklift, conveyor belt, pallet truck or another means of
transportation to their destined outbound dock. When the outbound
transportation has been loaded, the products can then make their way to
customers.
Problems it will solve:
a. Storing problems due to lacking of warehouse
b. Productivity of supply chain
c. Efficiency of supply chain.
d. Reduction of big vehicles running on the city road.
Impact
A. Providing a central site for products to be sorted and similar products
combined to be delivered to multiple destinations in the most
productive and fastest method.
B. Breaking down large product loads into smaller loads for
transportation to create an easier delivery process to the
customer. This process can be described as ‘deconsolidation
arrangements’.
C. Lessens traffic congestion in the city roads and in highways

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Phase 4
Strategy-Traffic Jam Supply Chain Model
Figure 5-Traffic Jam Supply Chain Model
In this model all the nodes of the supply chain are termed as Highway &
the goods passes through the nodes as Vehicles.
Through this model we will be trying to solve the virtual “Traffic
Congestion” that occurs in supply chain due to real world’s Traffic
Congestion with a twist of the concept of Industry 4.0

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Figure 6-Industry 4.0
Due to Traffic Congestion the supply chain’s traffic become sluggish and
begins to loose its edge.But this problem can be solved through the blend of
Traffic Jam Supply Chain Model and Industry 4.0.
Through Horizontal Collaboration the manufacturers can reduce their
hurdles in supply chain easily.Like if manufacturer 1 estimates from the
information of a cloud storage system that due to traffic jam they cannot
distribute their goods to their customers in time they may follow a plan B by
delivering their goods to manufacturer 2 who are nearby to its customers to
deliver the goods.In this way adding more lanes to the highway
manufacturer 1 can keep its supply chain effective.
Moreover, manufacturers can avoid traffic jam in the city or in highways by
the use of technology.Before,they sail their products for distribution they can
collect information from the roads and traffic information hub so that their
moving supply chain does not come to a stop due to traffic jam

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Impact
A. Traffic of Supply Chain will remain effective
B. Transparency of supply chain will be maintained through correct
flow of information.
C. Traffic Jam will be reduced or will not occur during the peak hour
HOW THE PHASE COLLABORATED WITH EACH OTHER?
FIGURE 7- COLLABORATION BETWEEN THE PHASES

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SWOT ANALYSIS
STRENGTH
a.Traffic Jam will reduce
b.Supply Chain system will be smooth and
efficient
WEAKNESS
Hard to implement in some places of the
country
OPPURTUINITES
a.The Phases are flexible.
Phase 2 & Phase 3 are mutually exclusive
b.Creation of smart Supply Chain System
THREAT
High Cost may be incurred due to some
cases
SWOT

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Timeline
Figure 8- Timeline

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Financials
Figure 9-Budget Distribution
Implementation of budget as per phase
Phase Year of implication % of Budget
1 2018 6%
2 End of 2019 55%
3 2021 4%
4 2025 35%
100%
6%
55%
4%
35%
PROBABLE BUDGET DISTRIBUTION
Phase 1
Phase 2
Phase 3
Phase 4

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Relating the Big Idea with the six drivers of Supply Chain
Management
HOW DOES THE BIG IDEA AFFECTS THE SIX DRIVER OF
SUPPLY CHAIN MANAGEMENT?

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EXHIBIT
1.
Figure 10-Dhaka BRT Map
Total Word Count-2104
Exhibit Word Count-35
Main Document Word Count-2069

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2.
Fig11-Probable view of Dhaka BRT

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3.
Figure 12-Dhaka Metro Rail Map

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4.
Fig 13-Dhaka-Chittagong 4 lane Highway (Probable View)

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5.
Figure 14-Dhaka-Chittagong Express Highway
SOURCES
1. http://thedailynewnation.com/news/137873/traffic-
congestion-in-dhaka-city-and--its-economic-impact.html
2. https://bdnews24.com/bangladesh/2016/12/02/what-dhakas-
bus-rapid-transit-will-be-like

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3. http://www.rhd.gov.bd/MajorProjects/ForeignAidedProjects.as
p
4. https://supplychaingamechanger.com/freight-logistics-part-3-
breaking-traffic-jam-supply-chain/
5. https://www.sciencedirect.com/science/article/pii/S23519789
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