Linde Bangladesh

Linde Bangladesh Limited (formerly BOC Bangladesh Limited) a multinational organization that has been present in the country for nearly 60 years with continuous expansion in operations and business, providing global solutions with a local outlook. With a modest appearance at the beginning, all the products of Linde Bangladesh Limited are now part and parcel of all the industrial and economic activities of the country. The selected topic of this internship report is “A Comprehensive Study on the Distribution Channel of the Welding Business of Linde Bangladesh Limited. ”

First part of the report talks about the organization; its nature as well as other introductory element of the company . Second part of the report covers the introduction of the project along with the project’s objectives, scope, statement of the problems etc. The next part strives to discuss about the Welding Business of Linde Bangladesh as well as the Distribution department of the welding business with its major functions. Linde Bangladesh is a leading manufacturer of welding electrodes and provides one stop solution for cutting and joining through countrywide distribution network.

Countrywide the company has 18 sales centre based at different locations to serve more than 800 dealers. Country as a whole is demarcated into five region & each region consists of four territories. To operate the whole distribution process Linde Bangladesh has one Sales manager for each region who looks after the overall distribution process of the territories under that particular region. However one CRO (Customer relationship officer) and one CSA (Customer relationship assistant) are assigned for each territory. They usually use pick up to deliver their products.

Some report about vehicles movements, amount of products carried per day, maps illustrates how Linde Bangladesh is utilizing their distribution resources. The focused area of this report is Khulna, so I tried to discuss about the current scenario of the distribution process of Khulna territory as well as the areas of problems which is facing by them. Order placement plays a vital role in distribution process. Therefore the functions of iConnect have been portrayed to get an idea about the role played by iConnect in order placement process of the company.

Moreover, as Linde Bangladesh deals with environment sensitive and dangerous element, it tries to ensure the safety measures also. The Company maintains a standard for their vehicles as well as their drivers for ensuring the safety issues. Linde Bangladesh uses some software and electronic devices for making its vehicles safer. For ensuring the optimization of vehicle in the distribution process, the company keeps trip list report summarizes all the trips for a specific asset over a specified period of time. The report shows start and stop times and location, including total travelling time, distance, and quantity of products distributes.

In spite of having a strong distribution network, some areas have been found that needs to be improved. Finally, in recommendation part, some suggestions such as dividing routes, employing higher capacity vehicle, optimizing delivery schedule are given to capture the maximum utility from the market in future. Table of Contents |Name of the Topic |Page Number | |Letter of transmittal……………………………………………………………………………. 3 | |Letter of Endorsements by the supervisor……………………………………………… |4 | |Acknowledgment ………………………………………………………….. |5 | |Executive Summary ……………………………………………………….. |6-7 | |CHAPTER-01: Overview Of LINDE BANGLADESH LIMITED Bangladesh Ltd | |1. 0 Organization Profile & Overview……………………………………… |13 | |1. 1 History of Linde Bangladesh Limited ………………………. ……… |13-14 | |1. 1. 1 Merger Acquisition with Linde AG ………………………………… |15 | |1. 1. 2 Common History …………………………………………………….. |15-16 | |1. 2 About Linde Bangladesh Limited ……………………………………. |16-17 | |1. 2. 1 Vision & Objective…………………………………………………… |17-18 | |1. 2. 2 Market Position………………………………………………………. |19 | |1. 2. 3 Safety Matters ………………………………………………………… 19 | |1. 2. 4 Internal Control ………………………………………………………. |20 | |1. 2. 5 Financial Results ……………………………………………………… |20 | |1. 2. 6 Locations……………………………………………………………… |21-22 | |1. 2. 7 Organizational Structure……………………………………………… |23 | |1. 2. 8 Range of Products and Service……………………………………….. |23-26 | | CHAPTER -02: Introduction to the Study | |2. Introduction to the Study………. ……………………………………….. |28 | |2. 1 Rationale of the study ………………………………. …………………. |28 | |2. 2 Statement of the problem………………………………………………………………. |28 | |2. 3 Scope & Delimitation of the sutdy …………. …………………………… |28-29 | |2. 4 Objectives of the study ……………… ………………………………. |29 | |2. 4. 1 Primary Objective ……. ……………………………………………… |29 | |2. 4. Specific Objective……………………………………….. …………… |29 | | CHAPTER -03: Review of related literature regarding the welding industry and marketer | |3. 0 Review of related literature regarding the welding industry and marketer ………….. | | |………. ……………………………………………………………………… |31 | |3. 1 Welding Industry in Bangladesh ………………………………………………. |31 | |3. 2 Welding Industry Performance ……………… ………………………………………… |32-33 | |3. Distribution Operations of the Welding Business Linde Bangladesh Limited |33-36 | |3. 3. 1 Distributor Channel Strategy ……………………………………………… |36 | |3. 4 Safety Management of Linde Bangladesh Limited ……………………….. |36 | |3. 4. 1. Golden Rules of Safety of Linde Bangladesh ………………………….. |37 | |3. 4. 2. Driver’s Safety…………………………………………………………………………………. 37-39 | |3. 4. 3. Vehicle’s Safety……………………………………………………………………………….. |39 | |3. 4. 4. Golden Rules on Driving and Vehicles……………………………………………….. |39-40 | |3. 4. 5. Truck Avoidable Accident Rate…………………………………………………………. |40 | |3. 4. 6. Managing Safety Standard………………………………………………………………… |40-41 | |3. 4. 7.

Automatic Vehicle Location system (AVLS)………………………………………. |41-42 | |3. 4. 8. System Overview……………………………………………………………………………… |43-44 | |3. 4. 9. General Features and Benefits of AVLS……………………………………………… |44 | |3. 4. 10. Web-based Vehicle Tracking System ……………………………………………….. |45 | |3. 4. 11. General Features and Benefits (Web based vehicle tracking system)…….. |46 | |3. 4. 12.

Standard Violations………………………………………………………………………… |46 | |3. 4. 13. User-defined Violations…………………………………………………………………… |46 | |3. 4. 14. Trips List Report…………………………………………………………………………….. |47 | |3. 4. 15. Second-by-Second Incident Analysis………………………………………………… |47 | |3. 4. 16. Vehicle Immobilization…………………………………………………………………… 47 | |3. 4. 17. Anti-theft Options………………………………………………………………………….. |48 | |3. 4. 18. Why we choose AVLS……………………………………………………………………. |48-49 | |3. 4. 19. Driver profiling………………………………………………………………………………. |49 | |3. 4. 20. Accident analysis……………………………………………………………………………. |49 | |3. . 21. |49-50 | |Security…………………………………………………………………………………………. |50-51 | |3. 4. 22. Benefits of Business……………………………………………………………………….. |51 | |3. 5 Review of Literature related to the Distribution………………………………………. |52 | |3. 5. 1 Distribution Objectives………………………………………………………………………. |52 | |3. . 2 Distribution Strategy:………………………………………………………………………… |52-54 | |3. 5. 3 Distribution Channels Key Concepts & Steps:………………………………………. | | |Chapter 4. Methodology | |4. 0 Methodology ….. …………………………………………… ……………………….. |56 | |4. 1 Primary Data Collection……………………………………………………………………….. |56 | |4. Secondary Data Collection……………………………………………………………………. |56 | |4. 3 Mechanical Tools….. ……………………………………………………………. |56 | |Chapter 05 Analysis and Interpretation of Data | |5. 0. Analysis and Interpretation of Data………………………………………………………. |58 | |5. 1. Distribution Channel Management of Linde Bangladesh in Khulna………….. |58-59 | |5. 2.

Linde Bangladesh iConnect………………………………………………………………….. |59 | |5. 2. 1. Benefits of iConnect………………………………………………………………………… |59-60 | |5. 2. 2. Information Collected by iConnect…………………………………………………….. |60 | |5. 2. 3. How iConnect works…………………………………………………………………………. |61 | |5. 2. 4. iConnect Communication Channels……………………………………………………. 61 | |5. 2. 5. iConnect Reminder…………………………………………………………………………… |61-62 | |5. 2. 6. Some important command used in iConnect……………………………………….. |62 | |5. 2. 7. iConnect Technical Architecture………………………………………………………… |63 | |5. 3. Important features regarding the cost of Managing Distribution……………….. |64 | |5. 3. 1. Total Distribution Cost per Distance Travelled…………………………………….. 64 | |5. 3. 2 Total Variable Cost……………………………………………………………………………. |64 | |5. 3. 2. 1. Total Overtime Cost……………………………………………………………………….. |64 | |5. 3. 2. 2. Total Fuel Cost……………………………………………………………………………… |64-65 | |5. 3. 2. 3. Others |65 | |…………………………………………………………………………………………. 65 | |5. 3. 3. Total Fixed Cost………………………………………………………………………………. |66 | |5. 4. Effectivity Analysis of the distribution process of Linde Bangladesh………… |66 | |5. 4. 1. Capacity Utilization………………………………………………………………………….. |66-67 | |5. 4. 2. Time Utilization……………………………………………………………………………….. |67 | |5. 4. 3.

Deviations from Schedule ………………………………………………………………… | | |5. 5. Performance regarding the slowness and the fastness consumption of the welding |67-69 | |products:….. …………………………………………………………………. | | |Chapter 06: Findings | |6. 0. Findings: ….. ……………………………………………………………………… |71-72 | |Chapter 07: Recommendations | |7. . Recommendations:….. …………………………………………………………. |74-75 | |Chapter 08: Conclusion | |8. 0. Conclusion….. …………………………………………………………………….. |77 | |Bibliography & Appendix | Part – 1 Chapter – 1 Profile of the Organization 1. 0. Organization Profile and Overview 1. 1. History of Linde Bangladesh Limited

Linde Bangladesh Limited (formerly known as BOC Bangladesh) is both an old and relatively a new company. Old because it has been present in what it is now in Bangladesh, in one form or the other, since the days of British India. New because it was registered under its own identity only in 1973. The Company began, after the independence of Bangladesh, with a modest turnover of over Tk. 6 million. The turnover in 1999 exceeded Taka 1 billion. Linde Bangladesh Limited started out as Bangladesh Oxygen Limited with 3 small Oxygen plants and Dissolved Acetylene plants, one of each in Dhaka, Chittagong and Khu1na.

In addition, it had an operating contract to run the Oxygen plants of Chittagong Steel Mills (CSM), which is no more there today. For the manufacture of Welding Electrodes the Company had three extruders and new one would commence operation from 2012. From inception, the Company had remained the sole supplier of Medical Oxygen in the Country. In the mid 70’s a Nitrous Oxide plant, still the only one in Bangladesh, was imported and installed in Dhaka to provide the nation with this vital anesthetic gas.

Later in the decade a Carbon Dioxide plant was bought and installed in Dhaka and this was the first in the Country to produce dry ice. In the early 80’s the first liquid gas plant was imported from New Zealand and again installed in Dhaka, where the demand for Oxygen was concentrated. Shortly after that came the first boom in ship cutting and demand for Oxygen “went through the roof”. The Company invested immediately in additional compressing capacity for the surplus Oxygen at CSM while simultaneously pursuing the Government to permit it to invest in new production capacity.

Eventually the Company was permitted to import 400 cubic meters per hour air separation plant from Australia, capable of producing Liquid Oxygen, Nitrogen and, for the first time in Bangladesh, Argon. This was installed in Chittagong, essentially to feed the ship breaking market on the beach. In the early 90’s booster was added to this to increase output, pending investment in further capacity. Meanwhile, the welding business of the Company was also growing fast and in the early 80’s a state of the art RAM extruder was added to the production line, dramatically improving output and quality of electrodes.

The Company, in another innovative move, invested in a wire drawing machine for the electrode factory. A second RAM was added in the late 80’s to keep up with demand. The Company went “public” in 1973 when the Government renounced its right shares in favor of the public. Today, Linde Bangladesh is one of the premier companies in the Country. Bangladesh Oxygen Limited changed its name to BOC Bangladesh Limited in March 1995 in line with a worldwide program of the BOC Group. The 90’s witnessed another change in the fortunes of the Company with deregulation and liberalization of the economy.

A site was specially purchased at Rupganj, near Dhaka, where the Company installed 30 tons per day air separation plant, the largest in the country. The US made plant produces Oxygen, Nitrogen and Argon and is technologically, as advanced as any in the world. It came on stream in 1995. At the same time, the Company also invested in a modern integrated welding electrode plant, made by the largest welding electrode manufacturers in the world, which was imported and installed at the new site in Rupganj.

A technical collaboration arrangement was also made with the suppliers ESABAB of Sweden and the plant went into production in 1995. Welding business received ISO 9002 certification in the following year. A distribution agreement has been signed with world class Welding Company, The Lincoln Company of USA. In March 1998 a second line of production was added to the integrated Welding Electrode Factory at Rupganj, doubling the capacity. Same year, in November 1998 a new site with a 20 TPD liquid plant was acquired in Shitalpur, Chittagong. 1. 1. 1. Merger Acquisition with Linde AG

The Linde Group has a history of over 130 years built on a heritage of innovation with a strong focus on technology. The company’s founder, Carl von Linde, invented refrigeration technology and pioneered a process of air separation. Today, the company is a global market leader in gases and engineering providing technology solutions for a wide range of industrial and other applications. In March 2006, Linde AG made an offer for The BOC group. It was recommended by the BOC Board and accepted by shareholders in August. This was ratified by the European Commission in June, and was completed on September, 5th 2006.

Following the acquisition the Linde group is one of the world’s leading industrial gases and engineering groups. Finally on 20 November, 2011 the BOC Bangladesh rebranded as Linde Bangladesh Limited. 1. 1. 2 Common History Linde and BOC unite to become The Linde Group. Both companies have more than 100 year of history and strong track records as innovators. In 1879, Gesellschaft fur Linde’s Eismaschinen AG in Wiesbaden was founded in Germany. In 1880 Arthur and Leon Brin take out the first of their patents on a process for separating oxygen (barium oxide process). Linde British

Refrigeration Co, in London in 1885,that was Linde’s first non-German company. In 1886, Brin’s Oxygen Company Ltd was founded. In 1895, patent to Carl von Linde for the “process of liquefying atmospheric air or other gases” was granting. Patent for air separation and the construction of the first air separator allowing oxygen purity of up to 97 percent, which was held in 1906. Linde and Brin’s Oxygen Co. agree to use Linde’s patents in 1906. However Linde becomes shareholder in Brin’s. Carl von Linde joins the board; Brin’s changes name to The British Oxygen Company Ltd.

Linde Air Products Co. was founded in 1907 in USA. In 1914, BOC started operating high purity gas plants in six major British cities. Lind took over of Guldner-Motoren-Gesellschaft (Diesel engines and tractors) in 1929. BOC bought controlling stake in African Oxygen (South Africa) in 1935 to become the leading gas company in Africa, which was known AFROX. In 1946, BOC opened research facility in New Jersey (USA). BOL Limited (Foundation of Linde-BOC joint venture) was founded in 1954 to coordinate the technical design and sales of air separation plants.

In 1959 Linde began volume production of hydraulic units and forklifts. The discovery of oil and gas under North Sea triggers in 1965, created a strong demand for large vessels, storage tanks and pipelines, boosting BOC sales. Linde-BOC joint venture in refrigeration solutions was founded in 1969. BOC doubled its size upon completing the acquisition of Airco in the USA in 1978. Linde constructed it s largest gas production plant at Leuna, Germany in 1990. In 1991, Linde expanded its gas business in Eastern Europe with the purchase of leading Czech Gas Company, Techno Lyn.

The distribution unit of BOC went to a partnership with Marks ; Spencer in their 25th anniversary in 1994. Linde, BOC and partners joined hands in 2000 to construct world’s largest nitrogen plant to pump heavy crude oil under high pressure in the Cantarell Oil fields, Mexico – an innovative joint project involving Linde, BOC and partners. European Commission approved Linde takeover of Swedish Gas Company AGA/Statoil places order with Linde for Europe’s largest LNG plant (operational from 2007). In 2002 US engineering joint venture Linde-BOC-Process Plants LLC, Tulsa, Ohio was founded.

In 2004, Linde celebrates its 125th anniversary; Sale of Linde refrigeration business to Carrier Corporation. In 2005, Linde celebrated International Hydrogen Day. In 2006 Linde and BOC joined forces to become The Linde Group. 1. 2. About Linde Bangladesh Limited Linde Bangladesh Limited (the “company”) is a listed limited company by shares and was incorporated in Bangladesh in 1973 under the Companies Act 1913. The company became a listed entity in 1976. The company is listed both on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).

The address of the registered office is 285 Tejgaon I/A, Dhaka-1208, Bangladesh. It has been a direct subsidiary of the BOC Group PLC of United Kingdom since inception. The entire share capital of the BOC Group PLC has been taken over by Linde AG of Germany in 2006 through an acquisition process. The group as a whole had embarked on a program called HPO (High Performance Organization). Though launched at a time of this crisis, like safety it would be an on- going program standing on its four pillars: Customer focus, People excellence, Process excellence and the Ability to execute.

The HPO initiative is a long term and strategic initiative aimed at improving the level of performance of our people and business, to increase our performance in all respects. Given the world economic crisis this initiative is expected to help the group meet the challenges ahead in unified and strong manner. 1. 2. 1. Vision & Objective Vision An organization vision statement indicates its future direction and business makeup, a guiding concept for what the organization is trying to do and to become. Corporate vision of Linde Bangladesh is stated below: Corporate Objectives

Corporate Image:To be seen as progressive company of high reputation and integrity, it provides good value for its products and services. To be seen by Government the public customers and suppliers and the employees as acting in a socially responsible manner and consistent with national aspiration and objectives. Development:To pursue a policy of progressive of industrial and medical gases, welding equipment’s and consumables wherever economics of production justify local manufacture. To maximize local value addition by progressive import substitution of inputs.

To install educate production facilities in advance of the demand so as to insure continuing ability to meet the growing national need for our products. To develop new markets and application of products and process and to set up facilities to serve them. Technology:To develop proficiency and competence in welding, cryogenics gas production technology and to promote new applications for gas and welding products, wherever these are relevant to the needs of local industry. To be regard as the foremost and most knowledgeable institution in the country in this field.

Marketing:To maintain the position of principle domestic manufacturer and supplier of industrial and medical gases, electrodes and welding and health care equipment by offering reliable suppliers of goods quality products at fair prices. Safety:To provide an accident free environment for employees by promoting and encouraging and implementation safe working practices throughout the company. To develop and foster increased customer awareness of safe product handling practices and procedures. Personal:To provide a productive and satisfying work environment for employees, offering opportunities and development and advancement in career.

Profitability:To earn an adequate return on stockholder’s equity and to generate sufficient surplus for growth and expansion. 1. 2. 2. Market Position Linde Bangladesh Limited has a good position in Bangladesh. All three sectors of products have good market shares. Linde Bangladesh Limited is in the first position for selling Gas and Welding products. The healthcare sector has to go a long way to grab a superior market position in Bangladesh. Linde Bangladesh Limited is technologically in a better condition than the other sister concerns in South Asia. 1. 2. 3. Safety Matters

Safety remained a number one priority as it is with the whole “The Linde Group”. Without being complacent one can add that has been an improvement in safety performance in most areas. With the launching of site safety program at Shitalpur all the major sides have now been covered. The incident reporting system had been greatly improved through implementation of an online web based system called synergy hosted in the Linde global server. Safety related activities continued with regular meetings of the safety and sharing of lessons learned from global group incidents & SHEQ related issues.

Meetings related to behavioral safety called SDG (Safety Dialogue) are held in small groups in every location of the company’s activities on the first working day of each month. 1. 2. 4. Internal Control The control and risks elements related to the company were under constant review. Several audits were carried out including engineering audits. Addressing of the recommendation is an ongoing process with the help of the Business Management Council members. Audit committee meeting took place as per its charter. During the year all the company’s location were connected to SAP at the corporate office.

This provides on-line real time information, specially related to sales, inventory and accounts. This facility would be an effective tool for ensuring control and data integrity, besides providing timely management information. 1. 2. 5. Financial Results The company’s turnover improved by 10% at BDT 2,742,816,718 over the previous year’s turnover of BDT 2,498,583 this was driven mainly by volumetric growth of industrial Oxygen, MS Electrodes, Liquid CO2, Medical gases etc. substantial loss of earnings from LPG, Fire Suppression and Welding Training School had to be absorbed.

Profitability in the year reached a new peak. While turnover growth was 10% profit from operation grew by 44%. This was as a result of favorable raw material costs, better recovery of fixed costs with volume increase of the key manufactured products and overall control on costs. 1. 2. 6. Locations The registered office of Linde Bangladesh is located at 285 Tejgaon I/A, Dhaka-1208. It has three factories in Bangladesh. The factories Positioned at Tejgaon, Rupganj, and Shitalpur. There are 19 sales center of Linde Bangladesh Limited.

The sales centers are- |Location |Address | |01. Tegaon |285 Tejgaon Industrial Area, Dhaka | |02. Postagola |Faridabad, Postagola, Dhaka | |03. Tipu Sultan Road |57-58, Tipu Sultan Road, Sutrapur, Dhaka | |04.

Tongi |241, Tongi Industrial Area, Gazipur | |05. Narayangonj |72, Sirajuddowla Road, Narayangonj | |06. Mymensingh |28, Ka K C Roy Road, Mymensingh | |07. Noakhali |Contractor Masjid, (Maijdee Road), Alipur, Begumganj, Noakhali | |08.

Khulna |Rupsha Strand Road, Labonchora, Khulna | |09. Barisal |Holding No. 7641, Alekanda, Kotwali, Barisal | |10. Rajshahi |Talimari, Kazla, Rajshahi | |11. Shitalpur |Shitalpur, Sitakunda, Chittagong | |12. Sagorika |68/V Sagorika Road, Pahartali, P.

O. Customs House, Chittagong | |13. Comilla |Poduabazar, Chaurasta, Comilla | |14. Sylhet |Mominkhola, Sylhet | |15. Jessore |Central Road, Ghoope, Jessore | |16. Bogra |Charmatha, Rangpur Road, Bogra | |17. Rangpur |Central Bus Terminal, R.

K. Road, Rangpur | |19. Faridpur |West Goalchamot, Jessore, Faridpur | [pic] (Source: Internal information of Linde Bangladesh Limited) 1. 2. 7. Organizational Structure Linde Bangladesh Limited is separated into two units. One is Business Function Unit and another is Enabling Function Unit. Business function unit consists of five departments and Enabling function unit consists of seven departments. Unit |Departments | | |Sales & Marketing | | | | |Business Function Unit | | | |Operations | | |Customer Service Center(CSC) | | |Cylinder Asset Management(CAM) | | |Distribution | | |Finance | | | | |Enabling Function Unit | | | |Human Resource(HR) | | |Procurement | | |Information Service(IS) | | |Safety Health Environment & Quality | Table-1. : Organizational Departments of BOC Bangladesh Ltd 1. 2. 8. Range of Products and Service Line Bangladesh Limited delivers value-added solutions based on the supply of gases, equipment, consumables and services for: • Manufacturing • Healthcare • Advanced technology and research industries. The products provided by Linde Bangladesh Ltd are Gases, Welding and Healthcare Gases Products and Services ? Compressed oxygen ? Refrigerant gases (Freon & Suva) ? Hydrogen ? Gas welding and cutting equipment ? Fire suppression system ? Compressed helium ? Liquid helium ? Sulphurhexafluoride ? Sulphurdioxide ? Special gases & gas mixtures ? Liquid oxygen ? Compressed nitrogen ? Liquid nitrogen Dissolved acetylene ? Carbon dioxide ? Gas welding rod & flux ? Dry ice ? Argon ? Lamp gases ? LPG Gases are one of core products of Linde Bangladesh Ltd. A significant contribution to the total business comes from ASU gases and Dissolved Acetylene. Food grade liquid CO2 is another potential gas that has become very popular within the Hospitality/beverage segment. Welding Products and Services Welding products namely ms electrodes is the major bread earner for Linde Bangladesh. It contributes around 50+% of the company’s total revenue. Competition is stiff in this segment, not only from local manufactures, but also in the form of imported electrodes.

Linde Bangladesh’s main advantage in this business segment is its wide distribution network that allows it to send its products to all concerns of the market as well as its good will, which is very important, considering that all other brands sell at a significantly lower price. ? Mild steel & cast iron electrodes ? Low hydrogen/low alloy electrodes ? Stainless steel electrodes ? Arc welding equipment & accessories ? Plasma cutting equipment & accessories ? Welding services & training ? Welding equipment repairs ? Mig welding equipment & accessories ? Tig welding equipment & accessories Healthcare Products and Services The Medical Product Division of Linde Bangladesh Ltd. provides Medical gases and Equipment also promoting liquid medical Oxygen and many other health care products. Linde Bangladesh still known today as the organization that produces and sells life saving medical oxygen.

Linde Bangladesh is also the local agents of some of the world’s leading medical equipment manufacturers such as ChoongWae, Tyco, DatexOhmeda, Nellcor Puritan Bennett etc. Linde Bangladesh’s medical product line includes but is not limited to the following: ? Medical oxygen ? Nitrous oxide ? Entonox ? Sterilizing gases ? Medical gases cylinder ? Anaesthesia machines ? Anaesthesia ventilators ? Other medical equipment on request ? ICU/CCU ventilators ? Pulse oximeter ? Infant warmer ? Photo therapy units ? Infant incubators ? OT table ? Autoclave /sterilizer ? Gynaecological tables ? Humidifier ? Oxygen concentratorResuscitators ? Central sterilizing and supply department (CSSD) Part-2 Chapter – 2 Introduction to the Study 2. 0. Introduction to the Study 2. 1. Rationale of the Study:

As a business graduate we gain plenty of theoretical knowledge. That is why we look forward to utilize our knowledge in the relevant field and now it’s the time to use this theoretical knowledge practically. But it’s true that it is likely to have some difference in theory and practice. Although by using the theoretical knowledge we are able to understand the pre-practical field, which help us to cope up the situation. Distribution is an important component of marketing; however Linde Bangladesh’s main advantage in welding business is its wide distribution network that allows it to send its products to all concerns of the market as well as its good will.

Therefore being an intern of the marketing department of Linde Bangladesh Ltd; I decided to work with the distribution channel of the welding business of Linde Bangladesh Ltd. As a marketing major student this study gave me the opportunity to enrich the theoretical and practical knowledge having acquaintances with the practice. Additionally, this experience will further strengthen my marketing skills as well . Which ultimately will help a lot in my career in the forthcoming days. However this study can contribute a lot to the faculty of business administration and the university as a whole because to get the practical experience to develop the future career following students will be very encouraged to take such project. 2. 2.

Statements of the Problems ? Optimization of distribution vehicles keeping safety at the top. ? Selecting the slow moving items to make it more available or demandable to the customer by improving market penetration. 2. 3. Scope and Delimitation of the study: I got the opportunities to see the internal work environment as well as got acquainted with their services, strategies that they follows, which was really helpful for me. Initially they provided me the details information about the distribution channel of welding business for the year 2010 and 2011. Due to time constraints they suggested me to analyze the overall distribution channel of Khulna.

After that I was provided with all the necessary information (Monthly transport Log sheet, Route map) directly from the Khulna sales office. However when I needed any kind of information regarding the distribution channel, I took their interview (Unstructured) several times. That was added extra value to this report. This study covers following areas- Products –Distribution of welding products. Location – Corporate office, Dhaka. Respondents – Marketing and sales department, Distribution department. 2. 4. Objective of the Study Is to get the information about the overall ‘‘Distribution Channel of the Welding Business of Linde Bangladesh Limited. ’’ 2. 4. 1. Primary Objective

Objective of this report is to get an insight about the distribution channel of the welding business of Linde Bangladesh Limited by focusing a particular area as well as to find out the areas of improvements to mitigate the problems that are facing by the distribution department of the welding business. 2. 4. 2. Specific Objective ? To know about the general facts of Linde Bangladesh Limited (a member of Linde group), as a leading MNC in Bangladesh as well as in the world. ? To get an insight into the history and operations of Linde Bangladesh Limited and Linde Group. ? to generate information on important components of distribution channel like cost of distribution, delivery timeline percentage, distance between dealer and the sales office, frequency of delivery and size of the order. ? To analyze distribution data from ifferent angles like fiscal month/year; product and brand; and customers and transporters activity region wise. ? Helps to get Distribution related information requirements with data integration and tracking solutions to help ensure full proof distribution. Part-2 Chapter – 3 Literature Review 3. 0. Review of related literature regarding the welding industry and marketer 3. 1. Welding Industry in Bangladesh The economic condition of Bangladesh is currently at cross-roads cruising along the twentieth century and entering the twenty-first where a globalized world economy offers many opportunities and throws as many challenges to the Bangladesh’s economy.

Welding Industry has gradually emerged as the driving force behind modern economic growth and development of Bangladesh. Bangladesh has a strong background in welding business. Bangladesh Welding Electrodes Limited claims themselves as the first electrode manufacturing company in the soil of then East Pakistan which was established in the year 1969 with total plant and machinery from Switzerland. This industry was taken over by the Govt. of Bangladesh in the year 1973 as abandoned property. On the other hand we can see that ‘Pakistan Oxygen Limited’ (Which was known as Bangladesh Oxygen Limited after the Liberation war) established their welding electrode plant in Chittagong in 1964.

There are 4 companies (Linde Bangladesh Limited,Jamuna Welding Electrodes Ltd,Bangladesh Welding Electrodes Ltd, Saifeng Welding Electrodes Ltd. ( Rented to ‘Airweld Ltd) presently operating in the welding market of Bangladesh. There is another company ‘High speed Welding Electrodes Ltd’ is not in operation right now. Currently the cheaper electrodes imported from China and India has created pressure in the market making it more price sensitive. 3. 2. Welding Industry Performance of Linde Bangladesh Limited The welding business of Linde Bangladesh established for more than 40 years. It has established a strong distribution channel all over Bangladesh. The company has captured more than 80% market share in welding electrode sector.

Integrated Welding Electrode Plant (IWEP) situated at Rupganj with a yearly production capacity of 15,400 MT, three production lines. Before the liberation war the company was named as POL which established their welding electrode plant in Chittagong in 1964. After the liberation war company changed name from ‘Pakistan Oxygen Limited’ to ‘Bangladesh Oxygen Limited’. BOL started the journey of their welding training center in 1979. After acquiring the BOL by the BOC Group the company again changed their name to BOC Bangladesh which established their first line welding electrode plant in 1996. In 1999 BOCB sets up their second line welding electrode plant. However in 2011 they set up third line welding electrode plant.

Major welding products of Linde Bangladesh are MS Electrode, CI Electrode, Stainless steel Electrodes, Factored Electrodes (sale is dependent upon government projects which includes mainly pipe line electrodes and small quantity of MRR electrodes -Maintenance, Repair & Reclamation), Gas and Arc Equipment (Mainly import based , Linde Bangladesh represents ESAB, MUREX & Lincoln in Bangladesh). Linde Bangladesh’s welding electrode is widely accepted in the fabrication sector for its consistent quality and huge distribution outlet. Welding electrode is the major contributor of Linde Bangladesh’s Sales & Operating profit. Basically welding products namely MS electrodes is the major bread earner for Linde Bangladesh. It contributes around 50+% of the company’s total revenue. Competition is stiff in this segment, not only from local manufactures, but also in the form of imported electrodes.

The local competitors in welding sector of Linde Bangladesh are: Jamuna Welding Electrodes Limited, Bangladesh Welding Electrode Limited, Saifeng Welding Electrodes Limited (Rented to ‘Airweld Limited’), High-speed Welding Electrodes Limited ( Not in operation). To provide the best possible service to the welding industry, Linde Bangladesh established their own “Welding Training Center” at the Tejgaon Factory premises in 1979 and its activities started from 7th May 1979. This institution provides courses on welding, cutting and allied processes. WTC (Welding Training Center) also provides courses to suit the majority of industrial needs. As quality is the key factor for the wide acceptance and high marker share (80 %+) of Linde Bangladesh Welding Electrodes.

Therefore Linde Bangladesh has its own in-house facility for chemical analysis, destructive and non-destructive tests required to ensure the quality of the Welding Electrodes. Basically their electrodes are manufactured as per AWS standards and have approval from ABS, GL & BV. BOCB has developed its own facility for the quality assurance of its raw materials and welding electrodes. 3. 3. Distribution Operations of the Welding Business of Linde Bangladesh Limited Linde Bangladesh’s main advantage in this business segment is its wide distribution network with more than 800 dealers. Dealers contributed 83. 9% of total welding revenue of their business. That allows it to send its products to all concerns of the market as well as its good will.

This is very important, considering that all other brands sell at a significantly lower price. As Linde Bangladesh has three unique businesses; gases, welding and healthcare. Considering its diverse product range as well as different forms of the same product, Linde Bangladesh has developed a unique distribution process. Basically distribution provides a number of opportunities for the marketer that may normally be associated with some important factors. Though the three different businesses deals in different forms of products, and different segments of customers, but the overall distribution process is same for all the business of Linde Bangladesh Limited.

Countrywide Linde Bangladesh has 18 sales offices based at different locations to cover direct/dealers’ sales. Country as a whole is demarcated into five region & each region consists of four territories. [pic] Fig 3. 1: Organagram of Welding Sales Center | | | | |Area/Region |Dhaka West |Dhaka East | |Pis PRD GROUP DESC |Frequency |Total quantity | |Gas Equipment / Consumables |66 |958. | |Electrodes – MS |2976 |283968. 1 | |ELECTRODES GPMS |990 |89561 | |Electrodes – CI |4 |8 | |Electrodes – Spl |7 |42 | |Arc Equipment / Consumables |48 |5252 | Table 5. 1: Number of purchase frequency and the total quantity purchased in 2010 [pic] Fig 5. : Number of purchase frequency and the total quantity purchased in 2010 The main purpose of this figure is to find out the sales volume according to the demand of a particular welding product in 2010. We can see that the highest frequently purchased product of Linde Bangladesh is MS Electrodes. On the other hand it is seen that, though there is not that much difference between the purchase frequency of ARC Equipment and Gas Equipment but we can see a huge difference between the total amounts of purchase of these two products. However from this analysis we came to know that Electrode CI and Electrode SPL did not create that much market demand yet. |2011 | | |Pis PRD GROUP DESC |Frequency |Total quantity | |Gas Equipment / Consumables |34 |351 | |Electrodes – MS |2867 |151697. 25 | |Electrodes – CI |15 |17 | |Electrodes – Spl |8 |23 | |Arc Equipment / Consumables |39 |5211 | Table 5. 2: Number of purchase frequency and the total quantity purchased in 2011. [pic]

Fig 5. 4: Number of purchase frequency and the total quantity purchased in 2011 The basic scenario of product performance is almost same in 2010 and 2011. It can be strongly said that, other welding products can not take the place of Electrode MS . But compare to 2010 GAS equipment and ARC equipment sold more. We can not see any significant change in the sales volume of Electrodes CI and Electrodes SPL. Part-2 Chapter – 6 Findings of the Report 6. 0. Findings: • After analyzing the given information it is found that the most important factor of distribution is proper time utilization, which is not practiced properly by Linde Bangladesh Limited.

Drivers duty time is suppose to start from 9am but in a lot of instances they tend to start distributing their products from10, and sometimes even at11am. However majority of the time they charge overtime because they are not able to return within the expected time of end. • There are seven golden rules of safety in Linde Bangladesh to prevent fatalities and major incidents. One of them is to distribute the products according to the capacity of the pick up. After analyzing the information it is also found that in very few cases the drivers do not follow the rules. Rather they carry more than the capacity of that particular pickup. • In Khulna it is found that, most of the time one pick up is not sufficient to cater delivery requirements of different welding dealers.

That is why sometimes they need to hire a van to distribute their products. • Under load does not offer proper utilization of distribution. Inspite of this, sometimes they deliver very small amount of products which does not fulfill the capacity of the pick up. • Though the percentage of sales is not directly related to the distribution process or channel but at the same time we cannot deny the impact of the sales volume fluctuation on the distribution channel. Because as long as the CRO does not have the influential relationship on the distributors he can not take the place of other competitors who are diverting the distributors to their product.

That is why we have seen that the most selling goods of Linde Bangladesh is MS Electordes, where as they have other products as well. • Route Risk Analysis is a safety management system of Linde Bangladesh from which the management find out what types of problems a driver can face during driving to go to a particular district. Example: Linde Bangladesh find out that in a particular area there is a Mosque so the driver should not create any noise, in front of a School the driver should go slow). Though this is a system of Linde Bangladesh but so far it is not practiced in Welding Sector. • Welding business deals with different types of hard goods, so the factory workers need to be very careful to carry the products for loading.

That is why platform attendance use hydraulic troli to carry the hard goods during loading to avoid any unwanted accidents. Specially it is very important where every day a huge amount of products distribute to their distributors. But this system is not practiced in every sales center, not even in Khulna. However i came to know that in Naraygang the demand of welding products is very high so everyday they need to distribute a huge amount of hard goods. But unfortunately they do not have any hydraulic troli over their. • As I have already mentioned that, for monitoring the driver’s behavior Linde Bangladesh has installed VTS (Vehicle tracking system) in all the commercial vehicles. This system consists of many unique features, e. g.

Prompting SMS- (whenever a violation counts it will inform the respective supervisor of the commercial vehicle) but all the features are not applied yet by Linde Bangladesh. Part-2 Chapter – 7 Recommendations 7. 0. Recommendations: • If the drivers start distributing their product on time, they will be able to minimize the over time cost. So Linde Bangladesh Limited should have a strong management control in reducing overtime. • It is so much risky if they overload their vehicle for any circumstances. It increases the risk of any unwanted accidents. It should be prohibited at any cost. So before loading the products they should carefully count the total weight.

Sometimes CRO should pay a surprise visit to find out whether the platform attendance or CSA doing their duty properly or not while loading products on pick-up. • As 1 pick up is proved to be insufficient in Khulna. So Linde Bangladesh can hire 1 more pick up or they can employ a bigger capacity vehicle instead of smaller capacity vehicle. (If they hire a pick up around 1500 kg capacity, driver does not need to come back to the office again to avoid overloading. Ultimately they will be able to distribute their product at a time; at the same they do not need to hire van. In this way they can decrease the time of distribution and will be able to reduce some extra costs (Van fare. fuel cost). • Division of route is very important for Linde Bangladesh in distributing their products.

In Khulna area it is seen that there are five routes (Under 1 route there are several dealers), but all the routes are in different direction. That is why it takes so much time to distribute their products if they go to different routes in one day. So if they divide their routes according to the day or dealers demand they will be able to distribute their products on time and will be able to ensure vehicle optimization. • In every sales center, Use of Hydraulic Troli should be mandatory for the sake of safety. • Linde Bangladesh does not have any separate customer service center. So if Linde Bangladesh establishes an Automated Customer service center, dealers from any corner of Bangladesh can inform the authority if they face any problem just over phone.

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