Presented by:

Joseph Kuruvila
Shilpa
Gopinathan
Anandu V S
Alex Kuncheria
Bristo Thomas
Akshay R.
der the Guidance of:
R. C. SENGOTTUVELU
M (ISM-USA)
Agenda
Introduction

Process Flow and Supply Chain

Problems Identified

Financial Performance

Proposed Supply Chain

Conclusion
Case Text
Coats Viyella India Limited

Review meeting 1996

Increased interest costs

Increase in sales

Decline in profits
Divisions
Coats India

Madura Fabrics

Madura Industrial Textiles

Madura Garments

Madura Accessories
PRODUCT
Interlinings and zips

Combination of third party and in-house

Complex supply chain

Woven and non- woven interlining

Fusible and non-fusible

Market
Major players in Organized sector :
Tata
Bombay Dyeing
MAL

Fusible premium segment in market

Customers : Garment factory & small tailors

 Process Flow

Po
i

Co w
v

at de
ng ea

in r
W

g
Bleach or
Dye
Locations involved in supply chain
Activities
Yarn bought from 4 merchants in Madurai

Yarn quality checked in Madurai warehouse

Issued to contract weavers for conversion to grey

fabric (7 converters in Erode, Coimbatore, Madurai and
Ambasamudram)
Activities
Grey fabric brought to Madurai warehouse for and quality
checked
Grey fabrics issued to bleaching houses for conversion to
white/coloured fabric (3 converters in Erode, Bhavani and
Ambasamudram)
White/colored fabric brought to Madurai warehouse and
quality checked.
Activities
Fabrics issued to own mfg house (Ambasamudram) for final
processing and coating to produce interlinings. Then quality
checked, packed and sent to Bangalore central warehouse (CW)
Interlinings stocked at Bangalore CW and sent to the 11
depots as per dispatch advice.
Interlining dispatched to customers (garment factories and
distributors/ dealers) as per requirement
Average lead time

Total= 18 weeks
Supply Chain

Total cost= 45 per metre

Based on an average of Rs 7000 per truckload of 6 tonnes
per movement
Major Problems Identified

Inconsistency of input

Inspection costs

Losses

Financing the pipeline

Inconsistency in input
Yarn
Quality
uniformity
S1 P1

S2 Weaving
P2 Fabric
MAL weight &
S3 The grey fabric

S4 P3 Bleaching
.
Whiteness
Uniformity
Inspection costs
Material Costs(p/mtr)

Yarn 3.1 p/kg

Fabric 14.0 p

Bleached fabric 20.0 p

Final product 24.0 p

Losses
Rejects were not always attributable to specific convertor.
Repeated transport and handling.
'Salvage' product ie fents, rags and chindies.
100 units yarn => 90 unit woven fabric => 85 unit sold at depot .
Out of 5, 3 contained fents and rags (sold at Rs. 120/kg) and rest 2
chindies (at Rs. 10/kg).
Financing the pipeline

Wastage convertors

Reconciliation efforts between purchase orders and subsequent

receipts

Efforts taken to assign responsibility for rejects and reconditioning

Financials - MAL from MCL
Madura Coats Limited:

incorporated in July 31, 1974

Renamed as Coats Viyella India Ltd (June 4, 1993)

Renamed as Madura Coats Ltd (June 18, 1998)

Financials - MCL
Equity Shares were listed in
Bombay Stock exchange
National Stock Exchange
Madras Stock Exchange
Bangalore Stock Exchange
Stock Exchange of Ahmedabad
Delhi Stock Exchange
The Calcutta Stock Exchange
Financial Performance

Particulars 1993 1994 1995

Sales 55 62 77
Profit before interest &
6.4 8 9
tax
Interest 0.7 1.1 2.5
Profit before tax 5.7 6.9 6.5
Net working capital 37.1 64 65.2
Operational
EBITDA,
Total
Net
BookSales
Worth
Gross PBTProfit
Assets
Value
Block andAsset
and PAT Turnover
Propsed Supply Chain
Major Problems Identified

Inconsistency of input

Inspection costs

Losses

Financing the pipeline

 Proposed supply chain
Pre inspected fabric sourcing
30%
White fabric

70%

Grey fabric
 Proposed supply chain
Grey fabric dispatched for bleaching at two locations

70
Ambasamudram %

30
%
Bhavani
Proposed supply chain

Final processing-> manufacturing houses-> Ambasamudram

Fabric quality checked, packed and sent to Madurai.

Interlinings stocked at Madurai

Interlinings then sent to large volume depots

Smaller volume requirements sourced from the nearest large depot.

Advantages of proposed supply chain
Consistency of material

Improved customer satisfaction

Pre inspected material

Savings in material handling

1.Reduced inspection cost.
2.Reduced wastage
3.Lower financial commitment
Implementation phase
Suppliers selected on the
Quality
Past records
Inspection reports

Negotiation for appropriate quality guarantees

Conclusion

The links between logistics and supply chain management are

brought forth

deals with the coordination of processing activities at several

locations
there are a number of different firms involved
the issue of overall process control
responsibility is important
Conclusion

The problem faced by MAL

Increasing inventory costs

even as markets are growing

After analysing its existing supply chain,

MAL proposed a new leaner supply chain
Conclusion

the proposal requires a new form of overall process and quality

control

highlights the need for managing flow of money along a logistical

supply chain
Conclusion
proper supplier selection
and
building professional relationships
with the chosen ones is an option that MAL is examining

potential of Information Technology

in supply chain management decision-making
requires consideration
AND THAT IS
THANK
YOU