REPORT ON OPERATIONS PRACTICES OF BELLISSIMO ICE-CREAM

SPRING 2017
OPERATIONS MANAGEMENT (MGT314)
Section: 12
INSTRUCTOR: Mr. Mofassel Hossain (Mof), SCHOOL OF BUSINESS &
ECONOMICS, NORTH SOUTH UNIVERSITY.
Date: April 10, 2017

Group Name: The MUTUAL HUNTERS

Group Number: 06

Team Members:

SL. NAME ID

1 Faria Bushra 131 0042 630

2 Razit Ishraq Khan 131 0951 030

3 Wasif Al Hakim 123 0905 030

4 Abdullah Al Noman 131 0316 030

5 Afra Tabassum 123 0950 630

6 Md. Ariful Islam 132 1721 030

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 Acknowledgement
All praise to the Almighty Allah, who has bestowed his kindness upon us by giving us the opportunity,
time, courage, strength and patience to carry out and complete the business plan report properly. We are
very much thankful to our honorable instructor, Mofassel Hossain (Mof), lecturer, Department of
Management for giving us the opportunity to complete this project. His valuable suggestions, guidelines
and helpful advice throughout the semester lead to successful completion of this project. His valuable
time, support and patience throughout the semester have been remarkable and are also appreciable from
the bottom of our heart. Finally, we must not lose the opportunity of expressing our sincere appreciation
to all our group members, who gave their level best in doing the project.

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 LETTER OF TRANSMITTAL

April 10, 2017

Mr. Mofassel Hossain (Mof)

Lecturer,

Department of Management,

School of Business and Economics,

North South University.

Subject: Submission of group project on operational practices of Bellissimo Ice-cream.

Dear Sir,

Here is the project that we were assigned on the topic as per your guidelines. The project has been
completed by the knowledge that we have gathered from the course “Operations Management”.

We are grateful to all those persons who provided us important information and gave us valuable advices.
We would be happy if you read the report carefully and we will be trying to answer all the questions that
you have about this project.

We have tried our best to complete this project meaningfully and correctly. We do believe that our
tiresome effort will help you to get ahead with this sort of project. However, if you need any assistance in
interpreting this project please contact us without any kind of hesitation.

Yours obediently,

Faria Bushra (131 0042 630)

Razit Ishraq Khan (131 0951 030)

Abdullah Al Noman (131 0316 030)

Wasif Al Hakim (123 0905 030)

Md. Ariful Islam (132 1721 030)

Afra Tabassum (123 0950 630)

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 Executive Summary
Bellissimo is one of the major players in the ice-cream industry in Bangladesh with its premium and
international standard ice-cream. This report is based on how Bellissimo manages their operational
activities to support the business. We evaluated their operational activities in light of our learnings and
we also recommended some better management of operations, that can be undertaken by Bellissimo, for
more efficiency and cost-effectiveness.

At first, we have analyzed the business thoroughly to get a clear idea about Bellissimo. This report focuses
on the competitiveness of premium to low cost of the ice cream, from production to operation, and the
key factors affecting those activities.

We have conducted both primary and secondary research. But due to time constraints and
methodology validation, it was not possible for us to test if the implications are successful.

We have analyzed the goals, strategies and competitiveness analysis of Bellissimo and evaluated if
they remain in line with the company’s mission and vision. Then we forecasted the demand for the
next 10 years according to Bellissimo and compared their forecast to different approaches. Next we
discussed details about strategic capacity planning, Process Selection and Facility layouts, Location
Planning and Analysis, Quality Management, Inventory Management, Scheduling and Waiting Line
Management and Supply Chain Management. We have evaluated each of these operational activities
and mentioned our opinions how to improve operations through our learnings.

Finally, we recommended how Bellissimo can manage their operational activities better and more
efficiently without affecting their core competencies.

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 Table of Contents
1. Introduction .......................................................................................................................................... 6
1.1 Overview of The Business ............................................................................................................. 6
1.2 Scope of the Work ....................................................................................................................... 7
1.3 Methodology................................................................................................................................ 7
1.4 Limitations .................................................................................................................................... 7
2. Operations ................................................................................................................................................ 8
2.1 Goals, Strategies and Competitiveness Analysis................................................................................. 8
2.2 Demand Forecast (for 10 Years) ......................................................................................................... 9
2.3 Strategic Capacity Planning ............................................................................................................... 10
2.3.1 Design Capacity & Effective Capacity ......................................................................................... 10
2.3.2 Efficiency & Utilization ............................................................................................................... 11
2.3.3 In-House & Outsourcing ............................................................................................................. 11
2.3.4 Bottleneck Operation ................................................................................................................. 11
2.3.5 CVP Analysis ............................................................................................................................... 11
2.4 Process Selection and Facility Layouts .............................................................................................. 12
2.5 Location Planning and Analysis ......................................................................................................... 13
2.6 Quality Management ........................................................................................................................ 13
2.6.1 Determinants of Quality............................................................................................................. 13
2.6.2 Quality Goals .............................................................................................................................. 14
2.6.3 Quality Certification ................................................................................................................... 14
2.6.4 Quality & Supply Chain .............................................................................................................. 14
2.6.5 Quality Control Mechanism ....................................................................................................... 14
2.6.6 Quality Improvements ............................................................................................................... 15
2.7 Inventory Management .................................................................................................................... 15
2.8 Scheduling and Waiting Line Management ...................................................................................... 16
2.9 Supply Chain Management ............................................................................................................... 16
3. Conclusion ........................................................................................................................................... 17
3.1 Recommendations ...................................................................................................................... 17
4. References .......................................................................................................................................... 18
i. APPENDIX ............................................................................................................................................ 19
a. Draft ................................................................................................................................................ 19

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1. Introduction
The ice-cream industry in Bangladesh is very intense and saturated. There are giant players like Igloo,
Polar etc. who have a huge number of product lines designing to meet the demands of every customer.
On the other hand, there are local companies throughout Bangladesh which targets local people and
charges lower price. In this highly competitive market, Bellissimo is a breakthrough for its premium and
international standard ice-cream which took a significant market share in its short time of operations and
is highly appreciated by the ice-cream lovers.

1.1 Overview of The Business

Bellissimo is a concern of Kazi Farms Group. Its factory is in Ashulia, where the corporate office is at
Dhanmondi, Dhaka. Being a concern of Kazi Farms Group, Bellissimo enjoys some certain privileges in
terms of supply of major raw materials. Bellissimo is comparatively a new brand in Bangladesh which
introduced premium and international standard ice-cream. But it has been able to gain a significant
market share and much popularity in this short period of time.

1.1.1 Business Profile

‘Bellissimo’ is Italian for the word ‘lovely’. The rich creaminess of Bellissimo is created by using milk fat in
all their ice-creams. These ice-creams are their labor of love. Bellissimo wants to create international
standard ice creams that are dense, rich, creamy and flavorful, made with real milk fat and real
ingredients. Their passion for international quality ice cream also led them to create different flavors and
textures. Regular ice creams contain below 10% of milk fat. Ice creams containing 10% milk fat or above
are called premium ice creams. Bellissimo offers premium ice creams in retail outlets around the country.
Bellissimo is the first and only ice-cream brand of Bangladesh to produce international standard ice
creams using at least 10% milk fat and natural flavors They have the most unique collection of ice cream
flavors from classics like Vanilla to the more adventurous such as Butter Chocolate Almond and Banana
Chocolate Walnut. The wide range of product include-

1. Premium Vanilla
2. Premium Chocolate
3. Premium Strawberry
4. Premium Mango

Other than those, Bellissimo experiment with different flavors in different formulas and recipes and
exclusively charge them to the ice-cream lovers. Those ice-creams are called ‘Bellissimo Creations’.

Their ice creams are available in cones, cups, tubs, sticks and containers. Currently, their ice-creams are
available at retail stores in divisional cities and some towns like Cox’s Bazar, Mymensingh etc. in
Bangladesh. The prices of their ice creams are premium and they vary from each other a great deal.

They believe that there is a Bellissimo ice cream for everyone! So, they target every ice-cream lovers to
taste their ice-creams either the traditional and regular ones or the exclusive or Bellissimo Creations.

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1.1.2 Mission
“To provide our customers with the enjoyment and ultimate ice cream experience and to
promote and motivate the Entrepreneurial spirit.”
1.1.3 Vision
Their vision is the preservation and further strengthening of our position in the local
market while always maintaining respect for the customers, their people and the quality
of their products.

1.2 Scope of the Work

Their major focus is on building their brand name " Bellissimo" as the premium ice-cream manufacturer
and building the facilities of doing business in Bangladesh.

This report will focus on the competitiveness of premium to low cost of the ice cream, from
production to operation, and the key factors affecting those activities. The report will also focus on
the strong logistic system and supply chain to ensure its raw materials shipment to the
manufacturer and distribution of finished product to each corner of the market place.

1.3 Methodology
We have conducted both primary and secondary research.
For the primary research, we have interviewed the Assistant General Manager, Mr. Wasim Reza,
Kazi Farms Group, who was in-charge of the production of Bellissimo division for about a year
and a half to get information about price quotations, demand and annual possible sales. The
information and the opinion, that he provided, helped us a great deal to complete the report.
For the secondary research, the internet was extensively surfed for the information of machine,
company details and for other relevant information.

1.4 Limitations
Due to the following limitations, the report might not be enough to achieve the objectives:

Time constraints: Since the report must be finished within a boundary of a semester, it is
impossible to observe an activation of an industry from beginning to end in this short period of
time.

Methodology Validation: It is important to conduct small research among the target group to
understand the obtain implication of an activation. Due to time constrain and small sample size
it was not possible to ensure whether the implications are successful.

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2. Operations
Bellissimo, a concern of Kazi Farms Group, tries to manage its operational activities efficiently enough to
reduce the cost of production to stay in business in this highly competitive industry. In this section, we
will discuss the major operational activities of Bellissimo and evaluate them.

2.1 Goals, Strategies and Competitiveness Analysis

Bellissimo sets consistent and realistic goals so that the whole operation, finance and marketing team can
work for those. Strategies are made by the corporate and business level managers at Bellissimo
considering their strengths and weaknesses and market opportunities and threats. The management also
look at Bellissimo’s competitiveness to formulate strategies and the goals.

2.1.1 Goals
The goals of Bellissimo are:

• Gaining a 50% market share

• Increasing profits by 40%
• Position the good as a premium product
• To provide international standard and premium ice cream
• Offer different and unique flavors

2.1.2 Strategies
• Premium Pricing- Bellissimo uses the premium pricing strategy. They charge a price higher than
their competitors. By charging a higher price, they give off the feeling of superior quality to the
customers. The customer demands are addressed specifically as they charge high, and therefore,
customer needs are fulfilled as precisely as possible.

• Variety of product offering- Bellissimo offers a wide variety of product variations along with
different flavors. There are different categories of ice cream they sell in their product portfolio
such as, tubs, sticks, ice cream sandwiches, cups, cones, etc. One of the most differentiated
offering is the Bellissimo Creations which has a wide range of different international flavors that
are of incomparable quality and highly differentiated from the market.

• Brand Positioning Strategy- Bellissimo positions the brand in the minds of the customers as a
product that lives up to its expectations. This is critical due to the high price they charge. They
want customers to believe that they offer value for their money. To create a strong brand position
in the mind of the customers, they do extensive marketing campaigns, improve supply chain
management, and maintain good customer relations.

• Product Differentiation Strategy- They offer a huge variety of products and therefore implement
high differentiation strategy. They offer a huge range of products that come in different flavors as
well as packaging. They must stay updated to provide customers with their desired products and
flavors.

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2.1.3 Competitiveness Analysis
• Customer demands- They make sure to offer innovative and unique flavors to their customers.
Since the customers are already paying a high price for the product, customers want to
experiment with more flavors that are different and delicious. Bellissimo keeps itself updated with
the current market trends and demands to produce the type of ice cream that is most desired by
customers who are looking for unique tastes and flavors.

• Product design- The design of the product is unique. The packaging is of such that it attracts
customers and increase demands of the ice cream. All the packaging of their ice cream is of high
quality and includes images on the box or the paper to seem more appealing. The ice-creams are
tasted and made repetitively in Kazi Farms’ Kitchen and offered to taste to the customers. If the
customers provide a positive response, the ice-cream is being produced and marketed on a
commercial basis.

• Supply Chain Management- Bellissimo makes sure to coordinate smoothly with the supply chain
components. Kazi Farm Group, itself, is the supplier of the dairy products (milk, cream etc.). Some
materials, such as the biscuit in the Ice-cream Sandwich, are supplied from abroad which makes
that unique. This ensures good quality raw materials and well distribution of products. Bellissimo
makes sure that the supply chain components are more qualified than the ones used by their
competitors.

• Location- They made their ice cream available to majority of the areas their target market resides.
But they still did not manage to reach every town and cities in Bangladesh. The factory is in Ashulia
where they manage to get the suppliers around.

2.2 Demand Forecast (for 10 Years)

We used Qualitative method to forecast demand of ice-cream. We took expert opinion of the industry to
get a clear idea about demand of ice-cream. Based on his opinion and secondary research, we found that
demand is 8600 liters of ice-cream daily and assuming as growth of 10% per year based on the lifestyle
pattern changes, intensive marketing and promotion and because of high product diversification to
match the taste of every people. Bellissimo uses naïve approach to forecast the demand because of the
irregular consumption of ice-cream.

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 Years Forecasted Demand (Liters)
2018 3,150,000
2019 3,465,000
2020 3,811,500
2021 4,192,650
2022 4,611,915
2023 5,073,107
2024 5,580,417
2025 6,138,459
2026 6,752,305
2027 7,427,535

The following are the data for the last five years-

Year Bellissimo Actual Moving Weighted Exponential

Forecast Demand Average Moving Smoothing
(Liters) (Liters) (Liters) Average (Liters)
(Liters)
2012 2437,409.96 2,396,949 - - -
2013 2,565,694.69 2,489,586 - - 2433363.86
2014 2,700,731.25 2695281 - - 2558083.82
2015 2842875 2812921 2527272 2573,906.1 2700186.23
2016 2,992,500 2,933,486 2665929.33 2712962 2839879.6

Considering the data, Bellissimo is doing a very good job in forecasting the demand. Moving Average,
Weighted Moving Average (80%, 30%, 20%) and Exponential Smoothing (where a=.01) are not as accurate
as the Bellissimo’s method.

2.3 Strategic Capacity Planning

Bellissimo wants to gain a significant market share over the competitors in the ice-cream industry. So,
they have put emphasis on their capacity planning. They have implemented capacity planning
mechanisms to adjust their production according to the demand.

2.3.1 Design Capacity & Effective Capacity

Bellissimo has a design capacity for producing 10,550,000 liters of ice-creams a year. But due to machine
maintenance, machine adjustments for different flavors and some other reasons, the effective capacity
for producing ice-cream a year is 8,330,000 liters.

So, Bellissimo has sufficient design and effective capacity to produce enough ice-creams according to
their market share and sales each year.

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2.3.2 Efficiency & Utilization
The actual output for the year 2016 was 5,350,000 liters of ice-cream. So, the efficiency of Bellissimo is
64.23% and the utilization is 50.71%.

2.3.3 In-House & Outsourcing

Bellissimo performs all the tasks for producing ice-creams in-house. But the tubs and the containers it
uses to package the ice-creams are outsourced. The biscuits of the cone ice-cream is also outsourced to
a local biscuit manufacturer. For ice-cream sandwich, they need special type of biscuit which is
outsourced abroad and it increases the cost highly. Since they are the first to bring that in Bangladesh
market, the customers are willing to pay the high-charged price.

2.3.4 Bottleneck Operation

After being homogenized, the ice-cream mixture is cooled to 2 degree Celsius and it is stored for 7-8 hours
until the mixture is set. Then the flavorings, nuts or fruits are added to it. In the ice-cream making process
the bottleneck is the container freezer which take the most time of approximately 7-8 hours to complete
the job.

2.3.5 CVP Analysis

Fixed Cost 25000000 BDT

Vehicles with and Without Refrigeration 15000000 BDT

System

Machineries 40000000 BDT

Variable Cost BDT 150-200 per liter

Retail Price BDT 400 per liter (average)

The break-even point is 177,777.77 liters.

We think that they need to minimize the variable cost to increase the profit margin without affecting the
product quality. The break-even point is higher than the competitors because of this variable cost. They
need to look for suppliers with less cost while not affecting the quality.

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2.4 Process Selection and Facility Layouts
Bellissimo ice cream contains at least 10% milk fat and may contain safe and suitable sweeteners,
emulsifiers and stabilizers and flavoring materials. So, it pursues the process a bit differently than the
traditional ice-cream producers.

2.4.1 Process Selection

The process that Bellissimo follows for manufacturing ice-cream is given below-

Blend Pasteurize Homogenize Add liquid

Ingredients mix flavors &
colors

Packaging Add fruits,

nuts and bulky
Freeze
Flavorings

Packaging

Bellissimo main target is to produce international standard ice cream in a high volume. So, they follow
semi standardized process. They have four major varieties of ice-cream. They are premium vanilla,
premium chocolate, premium strawberry and premium mango. In purpose to maintain the original quality
of using highly automated equipment, need of physical contact from the employees is very little in the
production process. So, the employees are moderately skilled to ensure the smooth flow of the processing
& operating the advanced equipment. Based on the yearly supply and demand of ice creams, Bellissimo
runs a Batch process as they produce the given varieties of ice creams at a huge quantity all the year
round.

Bellissimo uses the Flexible Manufacturing System to produce various flavored ice creams because it
helps them to achieve the flexibility of Job shop and the productivity of Batch processing systems. Flexible
Manufacturing System helps them a lot to produce their unique product lines, Bellissimo Creations. They
also have converted some portion of the factory to a fully automated “factory within a factory” using
Computer-integrated Manufacturing system. It helps them as a capacity cushion to help us to respond
to sudden rise in the demand and to produce in larger volumes.

Bellissimo has some customized products like Malted chocolate milk shake, Vietnamese coffee sundae
and these are their special products where they use job shop process as these are customized and not
their regular product.

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2.4.2 Facility Layouts
Bellissimo uses a U-Shaped line because it enables their workers to communicate more effectively. It also
helps them to manage sudden increase in demand and target to produce higher in volume. They want to
achieve the flexibility of job shop and the productivity of batch processing. So they use a U-shaped layout
instead of any other layouts.
This U-shaped layout helps Bellissimo to conduct their operational activities smoothly and efficiently.
Besides, it also reduces the cost of operation.

2.5 Location Planning and Analysis

The factory is in Ashulia where they manage to get the suppliers around.
Reason:
✓ Very good transportation facility.

✓ Ashulia is the best option for them, considering the market proximity and business set-up cost.

✓ Raw materials that is needed for the maintenance is easily accessible from this location.

✓ There is sufficient amount of space to keep the trucks and other transports for the factory.

✓ The dairy products which are the main raw materials are easily accessible in Gazipur because Kazi
Farm, itself, supplies them.

Besides, the raw material for ice cream is milk and it is supplied by Kazi Farm Group. As they have dairy
business, the location of the dairy and Bellissimo are at the same place and it is very helpful for them to
get the supply very easily and at a less time. So, after the location analysis we think Ashulia is the most
convenient place for Bellissimo.

2.6 Quality Management

Bellissimo’s quality management is focused not only on product and service quality, but also on the means
of continuous effort to achieve it.

2.6.1 Determinants of Quality

• Design: Bellissimo hires experts to take important decisions about the specific characteristics of a
product or service such as size, shape, materials, and ingredients. Bellissimo, combined with its
experts, have made a successful product design because whenever the customers look at the
product, they get the feel of premium and international standard ice-cream.
We think that they should do more research on product design because continuous innovation
can make their product differentiated among its competitors.
• How well the product or service conforms to Design: To cope with the product design which lifts
the expectation of the customers, Bellissimo uses good-quality and fresh ingredients which are
produced by their mother company Kazi Farms Ltd. Besides, some raw materials, like biscuits in
the ice-cream sandwich is being imported from abroad to ensure the best quality possible.

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 • Ease of Use: Bellissimo offers the packaging of ice-cream attractive and easy to tear and eat.
Besides, the ice-cream is made available in every big cities in the country within the reach of the
customers.
They are doing very well packaging strategy which is easy for customer to consume the product
and even in terms of transportation because it takes less space.
• Service After Delivery: For the ice-cream lovers, Bellissimo organizes various sessions to taste
their new Bellissimo Creations. Bellissimo usually invites those who are loyal to their brand and
they track it through their sales team and by SMS services. Bellissimo focuses on providing an ice-
cream experience.

We think that Bellissimo is doing a great job in maintaining the determinants of the quality in comparison
with the competitors in the Bangladesh market.

2.6.2 Quality Goals

Bellissimo is the first to produce premium ice-creams (more than 10% of milk fat) in the country. So,
they try to maintain the international standard of premium ice-creams in every step from sourcing raw
materials to reaching the customer.

We think that they can set the foreign premium brands as their benchmark and try to implement their
strategies and standards considering the culture and the practices in the Bangladesh market such as
following TQM and continuous improvements.

2.6.3 Quality Certification

Bellissimo is currently ISO 9000 certified and it is thriving to get ISO 14000 to differentiate themselves
from the competitors and to contribute to their brand image.

2.6.4 Quality & Supply Chain

Bellissimo focuses on involving everyone in the organization to give continuous effort in improving quality
and achieving customer satisfaction. The major supplier for dairy products (milk, cream etc.) are its
mother company Kazi Farms Ltd. which puts heavy emphasis on quality for Bellissimo. On the other hand,
biscuits for ice-cream sandwich are brought from abroad only to ensure superior quality of the product.
Besides, Bellissimo maintains a good relationship with all the supply chain members. They also provide
the retailers with refrigerators to promote the brand and to give the retailers some incentive. The overall
supply chain of Bellissimo is responsible for maintaining the quality and Bellissimo monitors that closely
and accurately.

2.6.5 Quality Control Mechanism

The quality control for Bellissimo are performed after three steps in computerized machines. It is done
after homogenization, after adding flavor and at the last process while hardening. The machines
automatically reject those defected products from the line and updates the database of the software. The

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quality manager and inspector gather useful insight from those data and work to reduce the variations of
the products.

2.6.6 Quality Improvements

Bellissimo focuses on customer feedbacks to improve the quality of the product. Bellissimo invites its
loyal customers and other people to taste their Bellissimo Creations and Bellissimo wants them to give
some feedback about their experimented and existing products. Bellissimo then focuses on those little
issues and try to solve them. For example, they added nuts in the butter scotch flavored ice-cream
which further gained much popularity. Their process for quality improvement is quite satisfactory.

2.7 Inventory Management

Bellissimo keeps the record of sales, delivery date, orders, billing etc. regularly by using their customized
inventory management software. They also keep record of previous years’ sales trend at what time how
much inventory is needed to meet the demand in the market. The basic functions of their inventory
management are to keep track of the inventory items and make decisions when and how much they need
to order so that they could reduce the risk of stock outs. Inventory manager of Bellissimo uses 30 days for
inventory order. Keeping the lead time matter in head, they order inventory in that way so that their
production and delivery does not hamper. Few costs associated with inventory are purchasing costs,
holding costs, ordering costs. Inventory manager also buys and store fresh fruit to use as the flavor that is
required to produce ice cream. When there is good supply of raw materials at cheaper price, they buy it
in bulk amount like fresh fruits, sugar, milk, fruit color and store in their warehouse refrigerator which
reduces their purchasing cost, order cost and production cost.

During the summer season, there is a high demand for ice cream and their sales increases significantly, so
they also keep safety stock so that they can meet unexpected excess demand.

Perpetual inventory system: They use perpetual inventory system which means keeping track of removals
of inventory continuously and monitoring current level of item inventory. Ice cream is considered as the
seasonal food item in Bangladesh because sales decrease significantly during the winter season.

However, they try to maintain a constant sale throughout the year, they make contracts with restaurants,
cafes, and hotels etc. during the off-peak season by offering them attractive discount offer which
stimulates their sales.

We think that they should have extra buffer stock during the summer (peak time) to meet the excess
demand. They can also be efficient by holding less inventory of dairy products since it is within the Kazi
Farm Facility and they can get these whenever they want. But other materials like sugar, biscuits, nuts etc.
should be held enough in their inventory.

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2.8 Scheduling and Waiting Line Management
For equipment and machinery scheduling, Bellissimo uses appointment system and for the equipment
they use the Gantt charts. Bellissimo uses some of its ma some of its machineries and equipment from
other subsidiaries of Kazi Farms Group where the facilities are located in the same area.

For human resources and work schedules, the company specify the working hour, flex-time, lunch period,
break time of each employee. Bellissimo also provides proper training to employees on how to use the
equipment and the time periods of these trainings are scheduled accordingly so that the production is not
hampered.

For scheduling the labors, they can follow the cyclical schedules to keep the records and collect the data
more efficiently and easily.

In terms of distribution, Bellissimo offers delivery to the wholesalers on an order basis. They follow first
order first serve method. But some exceptions are made if there is a shortage of the products in a
particular area. The sales force manages these on a priority basis.

2.9 Supply Chain Management

Dairy Firm Sugar Mill

Coconuts, Nuts, Flavours Imported Packaging

Fruits and Syrup Products

Factory Output

Wholesaler

Retail Shop Bellissimo Retail Shop

cafe

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A diagram is given to show the different components used to produce the Bellissimo ice cream. This is
an important part of the production system as it determines the quality and the distribution of the
products and gives an overall view of the product creation.

Objective- The objective of Bellissimo’s SCM is to synchronize the flow of raw materials with the
production and then distribute accordingly. They also want to make sure they always have enough
inventories at hand to fulfil the uncertain demand.

What Bellissimo should do to improve their Supply Chain Management is remove the ‘Wholesaler’
component block from their operations. This is so that there is a direct connection between the factory
output and the retail shops or even the Cafe. This will improve the control of the quality of products and
keep track of the products that are released into the market. Bellissimo can keep tabs on the products
and in case of any defects, they can pull out the products from the markets without hassle. Also,
because of the better relationship with the retailers due to direct communication, Bellissimo can get
genuine feedbacks from the retailers and therefore, it will help to better understand the demands of the
customers.

3. Conclusion
Bellissimo claims to be the first and only ice-cream brand in Bangladesh to produce international standard
ice creams. It is one of the newest companies & one of the premium brand for ice cream in Bangladesh.

They are providing a good premium quality of ice cream by maintaining the quality, applying modern
machineries, improving worker’s skill. They strongly focus on the premium quality of their ice creams.
Bellissimo also try hard to gain the first position among the competitors. To perform these activities
perfectly, the company hire highly qualified, efficient & experienced employees. Considering their
operational activities and after the analysis, we can say that they are performing well in the ice-cream
industry.

3.1 Recommendations
According to our analysis on the operational activities of Bellissimo, we have reached to the following
recommendations-

❖ Should focus more on decreasing variable cost to gain more profit.

❖ More promotional activity during off-peak periods.
❖ Increase distribution so that they can reach more customers.
❖ Create the demand & make aware the customers about the products.
❖ Need extra buffer stock during peak periods to meet the excess demand.
❖ Must implement Total Quality Management to achieve the quality goals.
❖ Need to stay updated with the latest technology to lower cost and increase efficiency.

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4. References
Bellissimo. (n.d.). Bellissimo. Retrieved from Bellissimo: http://www.bellissimobd.com/

Bellissimo. (n.d.). Bellissimo. Retrieved from Facebook: https://www.facebook.com/bellissimobd/

Reza, W. (2017, March 31). Operations Management of Bellissimo. (N. W. Razit, Interviewer)

Stevenson, W. J. (2015). Operations Management. New York: McGraw-Hill.

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i. APPENDIX
a. Draft

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