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Supply Chain Management
Bilal Nadeem Tahir S. M. Sohaib Atif Talha Bin Tariq
Humayun Rana Ali Asad
Henley shirt. and of a family of workers. It was listed on Lahore stock exchange in 1988 and now it is listed on all stock exchanges of Pakistan. West Canal Road. MTM team is the strong believers of customer satisfaction as they are believed are the reason of their success. Masood Textile also own Software Creation. Masood textile mill was incorporated on October 1986 as public limited company and started off after its listing on Karachi.its human capital. Who are given the best compensation benefits and working conditions in the region. Vision Statement "Our vision is of continual improvement and sustained growth. Shorts. trustworthy suppliers and up to dated technology. .Introduction Masood Textile Mill is a public limited company listed in all stock exchanges of Pakistan and is leaders in responding to up-and-coming global trends of textile by creating and developing very basic to very highly fashioned attire by developing and manufacturing of knitted products. Masood is expert in creating and manufacturing of T-shirts. Jogging suit. Pants and Sleepwear. a well groomed team of talented merchandiser. mTm continues to emphasize the need to invest in and develop its most precious resource . In this respect. mTm continues to provide training courses and selfenhancement opportunities for all our workers". Masood has also invested in Bangladesh and has one unit in Dhaka. Polo shirt. Raglan shirt and Tank top. Masood operations are running throughout the world. Masood on the basis of its production is largest one in Asia producing 120000tons of garments every year. a software development company. one in Lahore and one in Karachi. Driving force behind the achievement of Masood enormous escalation in past years is the experienced professional staff. MTM has got state of the art technology. They transform the abstract ideas of their customers into reality through specialized insight and technical and mechanical expertise. Its head office is located in Faisalabad (Universal House. Bikini. products know how and most importantly the right mind set to achieve customer satisfaction. Faisalabad) with 6 units in Faisalabad.
Merchandising department is the one which keep follow up of every aspect of the order from the placement of the order till the shipment of the order. Notica. Fruit of the looms. Its function is to plan a purchase orders and execute them as and when required. quality products to its customers. Chap. Material requirement planning ( MRP) Capacity Resource Planning (CRP) When a purchase order (PO) arrives at MTM material requirement planning has started e. its supply chain management is effective and efficient. JC Penny. PPC is the bridge between merchandising and production department. Customers Profile MTM‟s 65% of sales are concentrated through US market and rest from European countries i-e G9. The department takes responsibilities start from the negotiation between merchandiser and customer and ends on the shipment of PO. Production planning and control PPC stands for product planning and control.g.Material There are two sections in PPC department. Every single unit of the MTM is connected via ERP system and every stage of the order can be tracked and monitored. Tommy Hilfiger. a secured and friendly environment place of work to its employees and to project Pakistan‟s image in the international market. Adidas Footlocker.Mission Statement Be dynamic profitable and growth oriented by providing good return on investment to its shareholders and investors. Machine 3. Their main clients are big chain stores in these markets: Their main customers are: Wall Mart. departments would start planning how much yarn . Mark and Spencer Supply Chain Management As MTM is complete vertically integrated textile composite. It works on the model of 3M‟s which are 1. It plays a key role in a garment manufacturing company. Under Armor. JC penny ordered for 100000 polo shirts. Man 2.
When the inquiry comes in the company the merchandiser starts working on it and with respect to the customers demand he plans and prepares samples with help of other departments such as R&D and production to make the sample as per requirements of the customer. After the PO is confirmed the merchandiser sends it to the PPC department to . Then this report is sent to the CRP (capacity resource planning). Hence other processes are not outsourced as other companies don't follow the quality control and assurance techniques according to the international quality standards.g. Merchandisers also search about the accessory purchases and negotiate the prices with the suppliers and coordinate stock inventory of such materials with respect to their market supply. the merchandiser coordinates the confirmation of the PO (Purchase Order) and follows it up with the customer if there are any delays. To complete the 100000 polo shirts order of JC penny how many yarn bags daily could be provided by the spinning would they be sufficient or they had to buy the yarn from other company . which chemicals they would have to use.would be needed. When the sample is approved by the customer (the samples are sent thru FEDEX for physical approval. MTM anticipates competitors as well like China. all of the materials required is planned by the department. MTM has scales and synergies by which it is now successfully competing with China on Price and Quality. Merchandizing Merchandizing forecast the future demand of the market with respect to the latest trends in the market. also pictures of the product are sent through email). e. hence from the arrival till its shipment. Capacity resource planning: As soon as the report from MRP arrives CRP starts planning that to accomplish the order in time only in house resources would be sufficient or outsourcing had to be done. India and Bangladesh for their policies and pricings. They take samples of various materials and keep them in store for future requirements. If knitting machines are booked and they don't have sufficient available capacity to run the JC Penny Purchase orders they only go to jaguar and K&M knitwear to convert their yarn to the fabric. if yarn is needed they only purchase from Sapphire and Ibrahim to fulfill the capacity.
Merchandiser then follows it up with the PPC to provide them the sample as soon as possible so that they can send it to the customer for approval again. Knitting Masood textile is one of the biggest and prime fabric facilities in Pakistan having the capability to produce all kinds of knitted fabrics in 100% cotton & blends. It helps MTM to calculate accurately the loss of stopping a machine for a particular time. ERP calculates the loss in rupees according to the minutes the machine is not working. One more advantage is that a notification is sent to all systems if a machine stops working. Spinning Yarn procurement is done on seasonal basis and it is pre sourced before the start of the season and made sure that there should be no deficit when it comes to the utilization of yarn to produce fabric. .further perform their functions. Cotton is purchased throughout the Pakistan especially from the Multan strip and to increase the stretch length of the fabric cotton is imported also from Brazil. After that they follow it up with the customer for receiving the sample and further take suggestions or improvements. One more advantage which ERP gives to MTM is that this system calculates the quantitative data into rupees. Maintain the lowest possible material and product levels in store. if one of their machines is not working for few minutes. Efficient Response Program ERP is very much different from database system. Both are live systems which mean that everything is updated on time but the main difference between the two is that in ERP everything is updated with the click of one button while in database system it is not possible. which are defined by them. For example they can calculate their loss in rupees. Most of the manufacturers in Pakistan used database planning but Masood Textile Mill use ERP. Egypt. It has different knitted fabrics for different kind of apparels. India and Bangladesh and mixed with Pakistani cotton. System also points out minor details like how many racks are empty in a ware house so it prevents MTM to be exploited by employees. Material requirement planning: MRP department of MTM ensures materials are available for production and products are available for delivery to customers.
After the fabric is dyed it is sent for printing if it had to be demanded by the customer. Then on latest digital dyeing machines fabric is dyed according to the customer needs. which is being followed at the manufacturing facility. These machines are state of art and stitching is done according to the customer specifications. this further reduces their cost of production. Processing After the fabric is reached in processing first of all singeing is done to remove the fluff of the fabric. At each step the product (each unit) is bar coded and relevant information is entered in the system to track. weaving to dying and packing. They have high quality assurances with in departments and quality checks are done by the Quality Assurance department to ensure the product being produced is of the highest quality and is up to customer standards. After singeing.Masood textile mill is one of the largest fabric facility in Pakistan and is capable of creating A “Vanguard Supreme” machine knits body size fleece and “Mayer & Cie” machines for open width fleece fabric. manage and track complaints to the last step. This system is the heart of quality control. Stitching There are 1868 stitching machines which are run by skilled and expert operators. These machines have Dia gagues which enables it to produce any width. To further inspect and ensure quality they have an online 100% fabric inspection system to meet the international standard because they only export their product so they have to ensure and maintain high quality products for their customers as their customers also require 4-point quality system checked products. Cutting Skilled unit managers work efficiently on cutting units with latest machinery including Gerber Plotter. If a . After printing it is ironed and sent to the cutting department. It is like solving a jigsaw puzzle its operator ensures that maximum usage of cloth is done and loss is minimal and effectively with its help use every corner as every garment manufactured is first cut in 45-75 pieces varies from garment to garment. bleaching is done to change natural color of knit fabric from cream to white. Quality control MTM has the latest technology employed for the best quality manufacturing from stitching. knitting.
Such as the consignment has arrived at the storage and . the lot is sent to the tagging department. Masood has four storage houses in USA and two in Europe. In both of these strategies the end consumer is the client of masood textile.g. After this process the whole of the lot is sent to storage rooms located in another unit located on Sargodha Road. „Wallmart‟ has paid to masood for the consignment and says to masood that you keep the inventory stored in your storage house and they will timingly take the product.000 articles of a product to be delivered in california (USA) at „Madera wallmart store‟.defect is detected by quality department employee. also called average quality rating. eg. Other perspective is that “Wallmart” orders its consignment in a way that he wants to pick it up from the nearest storage house so masood will allocate him the location of the nearest storage house and send the ordered product their. The bar code and logo is also put on every article. Distribution network Masood textile is following two distribution strategies depending on the demand of the consumer. Tagging and Packing After the stitching is done. There are certain benefits that masood gives to their client such as they strore their inventory regardless of the time. After that packing is done in which wrapping of the articles are done. Wallmart is a customer of masood textile and it has ordered 100. 20 % polyester. after the AQL. Faisalabad. the defect can be traced back to the employee who is responsible for the defect. In this part of the supply chain the price tags are put on to each and every article. The percentage of material is put down on the tags for e. when over percentage of rejection is checked it should also comply with the standards already defined or decided in agreements. Overall Quality Level OQL is a standard where garments are audited on their total rating. then masood is going to directly deliver the product at that point. The first strategy is manufacturer storage with direct shipping and second strategy is manufacturer storage with customer pick up in which masood textile delivers the product directly to the customer door or send the the consignment to their storage in the nearest area specified by the cutomer. Now the structure can be explained by the further examples. 80 % cotton. Bar code is attached to the product at every single stage of the production and can be scanned whenever needed.
Accessories: Buttons. It depicts that all the practices at MTM are in the boundary of moral principles and procedures. Fabric is shifted into store and stored customer wise in racks . The diagram below gives a genreal view of the distribution flow of „Masood Textiles‟.Shipment store .If the fabric is rejected it comes first in store then sent to mills by making Outward Gate Pass (OGP). At gate inward gate pass is made. on the gate the weight of the fabric is checked.Fabric store (Stock pledge) 3. This happens on a very rare occasion.afer 10 days wallmart asks masood to deliver 10000 products to one wallmart store and 20000 to other stores after a certain period again. and needles etc Fabric store: The PPC department sends demand of fabric to fabric store according to plane of customer order. Main store Main Store: There are two types of things. 1. Inspection of the fabric is handled in mills in Fabric Inspection Department (FID). which is required by buyer. machine parts. Warehouses There are three stores in MTM. labels. maintenance and sentry etc. thread. which come under main Store. zips. WRAP Certification Masood Textile mill has a hand on WRAP certification which shows that the legal. 1. ISO 9002 Certification Masood Textile mills holds ISO 9002 certification and meet quality standards given by customers. 2. General: Stationary. benevolent and ethical manufacturing of goods at MTM. One other way of delivering the products is that they handover the whole consignment to the client at a given port again acording to the clients demand. 2. When the fabric is reached at the main gate and is received by the fabric store.
Shipment store: As it is evident from the name. which are ready to be shipped. The sale of even a single unit from the customer‟s store can be received in the head office of MTM and can be acted accordingly. In Masood when production order is completed then it is packed in boxes and bar codes are pasted on them. they also have to store the . This means the visibility of the future trend has become available to MTM.to. that now it is the responsibility of MTM to not only produce the product. This means. It is because they have to deliver the final products to the door step of the client. Future purchase order feasibility can be made with a great accuracy and purchase orders than can be revised after discussion with the client. On the day of shipment the boxes are loaded on trucks and final entries are stored in computer.Store System MTM is the first company in Pakistan to develop and implement direct-to-store system has permitted a good and long term relationship with the customer. The process of the shipment store is Receiving Racking (customer wise) Receiving to Quality Audit for Quality (QA) Packing list (merchandiser) OK report after Audit Green slip after Audit Direct. This system facilitated by the 24/7 information transfer from the sale of a unit from the store and the relevant department can act accordingly. are store here. This system is specifically designed for their major clients like Wal-Mart and Jesse penny which accounts for major sales. purchase orders. but also make sure its placement in the stores of the customer. Recommendations MTM mainly increase their costs because of the high transportation costs. These barcodes contain all necessary information regarding the contents of boxes. All the information regarding the Quality checks of shipment is done here.
By purchasing agriculture land for the production of cotton MTM can become fully integrated textile composite. Locations of facilities are quite far from each other as spinning and cutting is completed in one unit and the rest of the processes are conducted in different units.orders in their own warehouses which are located in Pakistan as well as US and Europe. We believe that MTM has a lot of potential in terms of capitalizing on its resources and gain competitive advantage over its industry and retain a leadership position. So they have to pay the expenses for the facilities provided in the warehouses. . Conclusion After examining MTM and by having a clear understanding of its supply chain. It would decrease their costs immensely because MTM would not need to manage the warehouses and transportation costs within the US and Europe. MTM should use the optimal level of material that is to be transfer from one location to another. Supply chain surplus of MTM decreases because of overstaffing of employees as the cost of production increase and profits decrease. Hence they should downsize. What they can do is that they can make the orders for their clients and then ask those clients to pick the orders from MTM‟s warehouses located in Pakistan or they can just ship the order through sea and they can ask their clients to pick the orders from the port. Reliance on the procurement of cotton from the open market will be reduced and premium paid to procure cotton for yarn can be saved in the long term. In a given situation. We found that this company is growing and getting efficient in all the stages of supply chain.