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SUPPLY CHAIN MANAGEMENT OF TEXTILE INDUSTRY

NAME JOAQUIM FERNANDES CRAIG DSOUZA ASTRID LOBO NISHANT PATKI VALENTINA MENDES

ROLL NO 3416

3430

3434

INTRODUCTION

CASES OF SUPPLY CHAIN MANAGEMENT IN


EXAMPLE 1:

CHECK UP
ORDER PROCESSING:
Orders are made at a timely process and quantity varies from order to order. For example, if a client orders for 500 shirts to be stitched

for the companys uniform accordingly an order is made for the amount of the fabric required. The fabric is bought in rolls so as it could be converted into finished product.

Raw materials are also outsourced from Bhiwandi in cases where specific programmed prints are required. Payments for the fabric are made on delivery to the supplier. Orders for fabric are made from M.J. market in Mumbai, Surat, and various fabric merchants from where raw materials can be obtained and from the supplier who can give them the desired product. Cotton fabric is obtained from Mafatlal mills.

INVENTORY MANAGEMENT:
Inventory is the most important element which should be taken care of. Proper details of inventory management were not disclosed, but they mentioned that inventories are managed in such a way that no wastage of resource occurs.

WAREHOUSING:
The semi-finished shirts are sent to the warehouses before being sent back to the factory to carry out the finishing steps. The warehouses are well ventilated so that they should not get heated. These warehouses are

equipped with state of the art security systems and 24 hour security. The warehouses are located near the factories to make transportation easy.

TRANSPORTATION:
Transportation is carried out in mid-size tempos owned by Check Up itself which reduces cost of hiring transport, due to this the delivery is usually done on time.

MATERIAL HANDLING:
Material is handled carefully as they do not want to incur any losses in terms of damages or wastage. The semi-finished and finished goods are stored in warehouses which have spacious racks in which the goods are kept. Materials are handled by trained workers so that they do not handle it carelessly, and cause stains on it.

LOGISTICAL PACKING:

Packing is an important aspect of delivering goods and thus Check Up packs up their goods in plastic first which is then packed in cardboard boxes and between each cardboard box there is a sponge packing which makes it easy to deliver the goods to the store without any damages. At this stage, bar-coding and labelling is done.

INFORMATION:
The information is recorded manually. They do not use any integrated information system. The

At all the stages checking of the goods are done and if any defects are found, the entire batch is rejected. The entire cycle takes 45 to 60 days.

EXAMPLE 2: THE PROCESS OF SCM IN HARIA EXPORTS ORDER PROCESSING

THE PROCESS OF SCM IN HARIA EXPORTS

ORDER PROCESSING:
The order is placed by the customer. The company than places an order with the suppliers with extra stock, in case of mishaps and defects. For example, if 5000 shirts are ordered material of 50 more are ordered like labels packing material. The company has international as well as local customers. Local customer includes Westside, Pantaloons etc.

INVENTORY MANAGEMENT:
Inventory management is not a big issue here as the company does not keep any buffer stock. The company receives orders from its customers. All the orders received are tailor-made hence the company has to order stock according to the required production or a little more as safety in case of mishaps and defects. The remaining goods(extras) are sold at scrap.

Goods are purchased from suppliers at 3 levels. -composite (e.g. Arvind mills) or power loom (inferior quality material) -traders = buy the raw materials process and supply it (e.g. buttons, labels.etc) -machinery= (oil, spare parts .etc)

WAREHOUSING AND TRANSPORTATION:


The company has a factory at Vapi, there are suppliers all over the country, they transport the materials to the transport warehouse and the company picks it up from there. In case of full truck-load they come to the company office or factory. Transport within the country is by road and for exports it depends on how urgent the goods are required, accordingly the mode of transport is chosen. For local distribution from the factory, it either reaches the centralised warehouse of the customer or directly to the stores. For the international market, the goods are sent by air or by ship. If by ship, the goods are taken to the dock by road, the vessel space is booked in advance hence goods must be ready on time, then they are taken off to the respective country. The customer then handles the process from there - he may either take it to the centralized warehouse or directly to the stores.

MATERIAL HANDLING:

Materials as taken in the factory are handled carefully. The quality is checked and sent for processing. As in this company they have bulk orders of clothing of the same type but different colour, the quality of the shirts should be maintained and checked at all levels and thus see that it is consistent. Lead time is most important as they have different suppliers.

LOGICAL PACKAGING:
As soon as the production takes place the goods are than packed and sorted according to the type colour. The goods are packed according to the customer e.g. putting his companies label etc. So that the customer has to just receive the goods and take it in his store.

INFORMATION:
The company does not use any software to check on stocks as they already said that they purchase material on orders. At the end of the order the remaining stock is sold for scrap. They keep a check on their suppliers by maintaining records manually.

EXAMPLE 3:

INTRODUCTION:
It was established in 1994. Its a company that manufactures as well as sells readymade garments/ apparels for children between the age group of two-sixteen. 30 years back this company just had 4 stitching machines, but today due to strategic logistical planning and other factors this company has flourished and now is one of the leading kids wear brand in the country. Gini & Jony Limited engages in the manufacture and

sale of apparel for kids and young adults in India. It offers T-shirts, shirts, jackets, trousers, cargos, and jeans for boys; capris, dungarees, skirts, jeans, and pants for girls; and a range of garments for infants.

ORDER PROCESSING:
Their Raw-Material includes fabric like pure cotton material, hosiery, buttons, zips, jeans materials, etc for their processing, this all adds to the largest component of material cost, and it is outsourced from an external suppliers based on their requirements . There is a timely supply of their products. They procure their raw material from an authorized distributor they do not compromise on the quality and opt for the best quality pure cotton cloth. They analyse the production requirement on a monthly basis, based on which they then place the order to their suppliers.

PROCESSING:
After the basic materials are procured they then start of with their mass production process which includes the process of cutting the material

in bulk, stitching, assembling, etc. They produce 18 lakh pieces of ready made garments per year.

INVENTORY MANAGEMENT:
Inventory carries a huge risk if not handled properly; the company will have to carry the loss if the inventory is damaged. Gini and Jony keeps a required inventory in stock because excess of it will lead to wastage due to changing fashion trend and shortage may lead to delay in delivery or dissatisfied customers due to unavailability of the product.

Gini and Jony sees to it that shortage do not occur by keeping track of all the franchises in town and also sees to it that goods are delivered of the required amount at the required place at the required time.

WAREHOUSING:
Gini and Jony had its manufacturing unit at Daman (Gujarat) and Baddi (Himachal Pradesh). After the process of manufacturing the finished goods, they are then stored in a warehouse near the factory and from the materials are the, transported to Saki Naka (Andheri) warehouse, from where the goods are then transported to different franchises all over and different shops, on time so that they do not come across scarcity of material. They have their own private warehouse.

TRANSPORTATION:
Transportation is done by trucks or delivery vans depending upon the quantity to be delivered. It takes 7-8 days for the goods to reach the godown at andheri, and to reach the franchise on time. Only required numbers of goods are delivered to the franchise as per the needs.

MATERIAL HANDLING:
Materials are handled carefully right from when they procure the raw material, till the time the materials are turned into finished goods, also during transit and storing the material in the warehouse. The materials are taken care of because if the material will get damaged at any point of time during the process of manufacturing or during the time of transit, the material will get rejected and given back to the company and it will be termed as wastage.

PACKAGING:
Gini and Jony have their own packaging materials i.e. plastic bags and boxes in which the readymade garments are packed and delivered,

so that they dont get damaged during transit. They have pictures on their boxes making their packaging look attractive.

Packaging is the crucial element, as the material has to be covered properly, and the material should not come in contact of rain, or any oil stains which are permanent, etc.

INFORMATION:
They follow IT system/web based system where in all the transaction that are taking place in the franchise are recorded online, and the companies department which takes care of the transactions comes to know how much garments are being sold and how much materials are in stock in each and every franchise every day.

It also keeps a track of how much materials scarce, if there is a shortage of material, the franchise do not have to call up the company to send more material and which kind of garments, but the company itself sends it to the franchise where the shortage occurs, as they have a record of all the transactions taking place. The delivery is mostly on time.

CONCLUSION: The elements of the Supply Chain Management includes information - sharing of demand, efficient planning and management of logistics, transportation of raw materials, availability of better infrastructure of roads and railways, availability of proper warehouses to store goods, inventory planning and controlling for optimized solutions, highly efficient planning and controlling of ports and shipments.

Given its potential to reduce lead times and total costs of operations, increase delivery speed. Responsiveness and flexibility, and ultimately customer satisfaction. Help to improve the competitiveness of the textile industry.

FUNCTIONS ORDER PROCESSING INVENTORY LEVEL

GINI AND JONY HARIA EXPORTS MONTHLY CUSTOMER REQUIREMENT BASED HIGH ZERO

CHECK-UP TIMELY PROCESS NOT DISCLOSED

TRANSPORTATION DILEVERY VANS MATERIAL HANDLING INFORMATION MANAGEMENT WAREHOUSING OWNERSHIP EFFICIENT ONLINE PRIVATE

TRUCKS, SHIP OR AIR CHECKED AT ALL LEVELS MANUAL TRANSPORT WAREHOUSE

MID SIZED TEMPOS EFFECTIVELY MANUAL PRIVATE

Supply chain management (SCM) deals with the planning and execution issues involved in managing supply chain, such as demand planning, production and distribution planning and production scheduling. Our Apparel + SCM, is a Supply chain management system, that brings together the manufacturer, distributor / retailer and the business.

Apparel manufacturers based on the level of SCM activity implementation. 1- Manufacturers SCM Activity implementation is high overall and these manufacturers are rather large. Their fabric suppliers' delivery performance is high. Their retail customers are cost-oriented, relatively big, and the relationship with

them is more, partnership-like and long-term based, and the retail type is likely to be a department store or mass merchandiser.

Key success factors


Unpredictable demand and short-lived products are the hallmarks of the world market for apparel. Demand for fashion apparel, being a function more of taste than of objective consumer needs, long range forecasts tended to be highly inaccurate. Demand for many products like fashion garments, shoes, sportswear are highly seasonal, fluctuating and often hard to predict. Thus resulting shortages (stock outs) represent lost sales opportunities and surpluses result in lost revenues consequent to successive reductions (markdowns), often to a point below the cost of production. Thus first time right quality, timelines and frequent delivery of small lot sizes with a short lead time are the key success factors for any supplier country.

There are four major decision areas in textile supply chain management:
1)

Location, 2) Production, 3) Inventory, and 4) Transportation (distribution), and there are both strategic and operational elements in each of these decision areas.

IMPORTANT DECISIONS TO BE TAKEN IN

INVENTORY

IMPORTANT ASPECTS:
1. With the growing demands of material and that of business, the Supply Chain Management has taken an important role throughout the world. 2. It has taken its own shape in the textile industries where large quantities are in demand with varieties of product range. 3. In the textile industries, there are high market fluctuations which make the Supply Chain more critical and hence an appropriate management is required in this industry.
TRANSPO