final hardcopy logistics

8/4/2019 Final Hardcopy LOGISTICS

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SUPPLY CHAIN MANAGEMENT

OF

TEXTILE INDUSTRY
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NAME ROLL NO

JOAQUIM

FERNANDES

3416

CRAIG DSOUZA

ASTRID LOBO 3430

NISHANT PATKI

VALENTINA MENDES 3434


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INTRODUCTION


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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


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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


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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 itcarelessly, and cause stains on it.

LOGISTICAL PACKING:


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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


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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 is not a big issue here as the company does not keepany 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.


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Goods are purchased from suppliers at 3 levels.

-composite (e.g. Arvind mills) or power loom (inferior qualitymaterial)

-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 itdepends 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 byroad, 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 eithertake it to the centralized warehouse or directly to the stores.

MATERIAL HANDLING:


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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 alreadysaid 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.


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EXAMPLE 3:

INTRODUCTION:

It was established in 1994. Its a company thatmanufactures 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 wearbrand in the country. Gini & Jony Limited engages in the manufacture and


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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


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in bulk, stitching, assembling, etc. They produce 18 lakh pieces of ready

made garments per year.


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.


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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 betermed 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,


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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.


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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 optimizedsolutions, highly efficient planning and controlling of ports and shipments.


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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 GINI AND JONY HARIA

EXPORTS

CHECK-UP

ORDER

PROCESSING

MONTHLY

REQUIREMENT

CUSTOMER

BASED

TIMELY

PROCESS

INVENTORY

LEVEL

HIGH ZERO NOT

DISCLOSED
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TRANSPORTATION DILEVERYVANS TRUCKS, SHIPOR AIR MID SIZEDTEMPOS

MATERIAL

HANDLING

EFFICIENT CHECKED AT

ALL LEVELS

EFFECTIVELY

INFORMATION

MANAGEMENT

ONLINE MANUAL MANUAL

WAREHOUSING

OWNERSHIP

PRIVATE TRANSPORT

WAREHOUSE

PRIVATE

Supply chain management (SCM) deals with the planning and

execution issues involved in managing supply chain, such as demandplanning, production and distribution planning and productionscheduling.

Our Apparel + SCM, is a Supply chain management system, thatbrings together the manufacturer, distributor / retailer and thebusiness.

Apparel manufacturers based on the level of SCM activityimplementation.

1- Manufacturers SCM

Activity implementation is high overall and these manufacturers arerather large.

Their fabric suppliers' delivery performance is high. Their retailcustomers are cost-oriented, relatively big, and the relationship with


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

Key success factors

Unpredictable demand and short-lived products are the hallmarks ofthe world market for apparel. Demand for fashion apparel, being afunction more of taste than of objective consumer needs, long range

forecasts tended to be highly inaccurate. Demand for many productslike fashion garments, shoes, sportswear are highly seasonal,fluctuating and often hard to predict. Thus resulting shortages (stockouts) represent lost sales opportunities and surpluses result in lostrevenues consequent to successive reductions (markdowns), often toa point below the cost of production. Thus first time right quality,timelines and frequent delivery of small lot sizes with a short leadtime 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.


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IMPORTANT DECISIONS TO BE TAKEN IN

INVENTORY


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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


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