Supply Chain Management of Garments Industry

Introduction. Supply chain management seeks to synchronize a firm’s processes and those of its suppliers to match the flow of materials, services, and information with customer demand. Supply-chain management has strategic implications because the supply system can be used to achieve important competitive priorities. It also involves the coordination of key processes in the firm such as order placement, order fulfillment, and purchasing, which are supported by marketing, finance, engineering, information systems, operations, and logistics.

We begin by taking a bird’s eye view of supply chain management, focusing on it implies actions for manufacturers and service providers. We then describe how companies manage their customer and supplier interfaces. Next, we discuss the important operating and financial measures of supply chain performance, followed by a comparison of supply chain designs and their strategic implications. We conclude with discussions of the dynamics of supply chains and supply chain management. 1. 2 Rationale of the study. We believe that the analysis, findings and recommendations will be helpful for Maksons Spinning Mills Ltd. o effectively utilize the benefit of supply chain management & increase the efficiency and effectiveness of their current operations. The use of these tools enables the textile industries to greatly increase its profitability because it is able to match supply and demand in a much more coordinated fashion. 1. 3 Objective of the study. The major purpose of this project aims to develop an appropriate quality yarn manufacturing to turn out quality fabric for direct export and export linkage to Ready-made garments industry of the country. Other objectives of the study are; Achieving a realistic idea that how the system working in spinning industries • To understand the importance of supply chain management in the spinning industries • To define the nature of supply chain management and give real examples of its application in manufacturing and service industries • To control the supply of material and inventory • To reduce cost and risk • To maintain appropriate level of supply • To receive and issue materials smoothly • To satisfy existing customer and attract new customer • To ensure appropriate use of working capital. 1. 4 Methodology.

This paper is being tried to complete micro level study in a confined, specific, and a given period. To prepare the semester project paper we have followed some specific methods and technique, which were helpful for collecting and analyzing data. After we determined what and why we are looking for, then we set adrift our boat to the sea. In this paper we have used mainly primary data. After getting adequate materials we then went through the materials and were trying to find the answer of our objective questions. Different record, statement, BTMA report has helped us preparing this report.

The subject material of this report is on primary and secondary sources of and information though we give emphasis on primary data. Sources of information:  Primary source • Relevant document studies  as provided by the officers concerned • Observation of various departments Secondary source • Annual report of Maksons Spinning Mills Limited. • Prospectus of Maksons Spinning Mills Limited-2008 published for issuance of IPO. • Brief of MSML chief officers and staff. • Extensive literature search on the basis of document and publication, BTMA, BTMC, BGMEA. 1. 5 Limitations of the study.

We won’t say that our study and the decisions we made are self sufficient. That doesn’t mean that there was any dearth of our professionalism and eagerness to reach to the solution, rather it means that we had to face some obstacles. Those may be summarized as follows: • It was so difficult to collect the adequate and real data from the assigned organization. • Lack of experience in related field. • The research area was so far from our institution. • Due to the lack of time we could not acquire in depth knowledge of the activities of different department perfectly and clearly. • Improper combination among various departments Adequate books, publication and journals were not available II. Literature Review 2. 1 Supply Chain. A supply chain (SC) consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customer themselves. Within each organization, such as a manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service.

A typical supply chain may involve a variety of stages. These supply chain stages includes: • Customers • Retailers • Wholesalers/Distributors • Manufacturers • Component/ Raw material suppliers 2. 2 Decision Phase in a supply Chain. Successful supply chain management requires many decisions relating to the flow of information, product, and funds. These decisions fall into three categories or phases, depending on frequency of each decision and the time frame over which a decision phase has an impact. 1. Supply chain strategy or design: During this phase, a company decides how to structure the supply chain over the next several years.

It decides what the chain’s configuration will be, how resources will be allocates, and what processes each stage will perform. 2. Supply Chain planning: For decisions made during this phase, the time frame considered is a quarter to a year. Therefore, the supply chain’s configuration determined in the strategic phase is fixed. This configuration establishes constraints within which planning must be done. 3. Supply chain operation: The time horizon here is weekly or daily, and during this phase companies make decisions regarding individual customer orders. At the operation level, supply chain configuration is considered fixed and planning . 3 Drivers of Supply Chain Performance. To efficiently perform Supply Chain management, some drivers are useful for success of SCM. The role of drivers in SCM is discussed below: Facilities: If we think of inventory as what is being passed along the supply chain and transportation as how it is passed along, then facilities are the where of the supply chain. They re the location to or from which the inventory is transported. Within a facility, inventory is either processed or transformed into another state (manufacturing) or it is stored before being shipped to the next stage (warehousing). Inventory:

Inventory exists in the supply chain because of a mismatch between supply and demand. This mismatch is international at any manufacturing industry where it is economical to manufacture in large lots that are then stored for future sales. The mismatch is also international at a retail store where inventory is held in anticipation for future demand. An important role that inventory plays in the supply chain is to increase the amount of demand that can be satisfied by having product ready and available when the customer wants it. Transportation: Transportation moves product between different stages in the supply chain.

Like the other supply chain drivers, transportation has a large impact on both responsiveness and efficiency. Faster transportation, whether in the form of different modes of transportation or different amounts being transported, allows a supply chain to be more responsive but reduces it efficiency. The type of transportation a company uses also affects the inventory and facility locations in the supply chain. Information: Information could be overlooked as a major supply chain driver because it does not have a physical presence. Information, however, deeply affects every part of the supply chain.

Its impact is easy to underestimate as information affects a supply chain in many different ways. Consider the following: 1) Information serves as the connection between the supply chain’s various stages, allowing them to coordinate and bring about many of the benefits of maximizing total supply chain profitability. 2) Information is also crucial to the daily operations of each stage in a supply chain. For instance, a production scheduling system that allows a factory to produce in an efficient manner. A warehouse management system uses information to create visibility of the warehouse’s inventory.