A Study on Importance of Customer Satisfaction in Supply Chain Management: An Observational Study of SM Enterprise

Abstract

SM Enterprise is an importing and supplying company dealing with high-quality pinewood and veneer wood located in Hemayetpur, Savar, Dhaka, and it is also located in the United States, Canada and New Zealand. The company, founded by MD Abul Hossain Mollah, who is also the Chairman and Managing Director, was established in 1999 with a niche focus on offering premium wood products to the rapidly growing furniture and construction sectors of the Bangladesh industry. The supply model practiced by SM Enterprise involves removing intermediaries, with pinewood delivered to local dealers and veneer sheets to major branded furniture manufacturers such as Akij, Amber, Akhtar, Partex, and Otobi. These manufacturers are market leaders with substantial buying power in the billion-dollar furniture industry in Bangladesh. The business model of the company is a critical market need because the cover area of domestic forests in Bangladesh is estimated to be about 11 percent of the total area. Hence, the country has to import a lot of timber, with annual imports estimated to exceed USD 1 billion, to serve its flourishing manufacturing industries. This includes FSC-certified radiata pine timber and decorative veneer timber products that meet international quality standards. It is predicted that the growth rate in the wood products market will be 7.5 percent between 2025 and 2031, driven by urbanization, rising demand for branded furniture among the middle classes, and increasing construction activities. SM Enterprise is in a strong position on this growth curve due to its roles as a wholesale timber dealer and a high-end furniture producer, both of which are committed to quality, sustainability, and reliable supply chains. The company's competitive advantages include a developed international relationship with suppliers spanning over twenty years, a warehouse management system that supports the just-in-time inventory models needed by large manufacturers, and skills in handling the regulatory environment in Bangladesh as a timber importer. Competition in the local markets is high; the timber prices are sensitive yet highly dynamic at the same time with currency exchange price volatility; thus, SM Enterprise is sustaining its presence by offering steady product quality, sensitive client services, and direct distribution channels that ensure the best operational effectiveness to support the industry of furniture export in Bangladesh, which is estimated at USD 100 million a year.