Masood Textile Mills LTD.

Supply Chain Management

Talha Bin Tariq

Jogging suit. It was listed on Lahore stock exchange in 1988 and now it is listed on all stock exchanges of Pakistan. Pants and Sleepwear. MTM continues to emphasize the need to invest in and develop its most precious resource . Henley shirt. MTM continues to provide training courses and selfenhancement opportunities for all our workers". West Canal Road. Masood has also invested in Bangladesh and has one unit in Dhaka. Its head office is located in Faisalabad (Universal House. was incorporated on October 1986 as public limited company and started off after its listing on Karachi. and of a family of workers. Masood Textile also own Software Creation. MTM has got state of the art technology. trustworthy suppliers and up to dated technology. Driving force behind the achievement of Masood enormous escalation in past years is the experienced professional staff. .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. Vision Statement "Our vision is of continual improvement and sustained growth. Polo shirt. Raglan shirt and Tank top. Who are given the best compensation benefits and working conditions in the region In this respect. Faisalabad) with 6 units in Faisalabad. Shorts. one in Lahore and one in Karachi. Masood Textile Mills LTD. MTM operations are running throughout the world. a well groomed team of talented merchandiser. MTM on the basis of its production is largest one in Asia producing 12000 0tons of garments every year.its human capital. Bikini. MTM team is the strong believers of customer satisfaction as they are believed are the reason of their success. products know how and most importantly the right mind set to achieve customer satisfaction. Masood is expert in creating and manufacturing of T-shirts. They transform the abstract ideas of their customers into reality through specialized insight and technical and mechanical expertise. a software development company.

Their main clients are big chain stores in these markets: Their main customers are: Walmart. The department takes . MRP and CRP ERP Quality Control Production planning and control PPC stands for product planning and control. Nautica. Tommy Hilfiger. It plays a key role in a garment manufacturing company. Champs. JC Penny. its supply chain management is effective and efficient. Champion Supply Chain Management As MTM is complete vertically integrated textile composite. PPC is the bridge between merchandising and production department. Chap. Adidas Footlocker.Mission Statement Be dynamic profitable and growth oriented by providing good return on investment to its shareholders and investors. quality products to its customers. Customers Profile MTM‟s 65% of sales are concentrated through US market and rest from European countries i-e G9. Under Armor. Every single unit of the MTM is connected via ERP system and every stage of the order can be tracked and monitored. Fruit of the loom. Mark and Spencer. a secured and friendly environment place of work to its employees and to project Pakistan‟s image in the international market. 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. Its function is to plan a purchase orders and execute them as and when required.

MTM has scales and synergies by which it is now successfully competing with China on Price and Quality. 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. . Then this report is sent to the CRP (capacity resource planning). e. Man 2.   Material requirement planning ( MRP) Capacity Resource Planning (CRP) MRP department of MTM ensures materials are available for production and products are available for delivery to customers. 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. India and Bangladesh for their policies and pricings. When a purchase order (PO) arrives at MTM material requirement planning has started e. MTM anticipates competitors as well like China. hence from the arrival till its shipment.Material There are two sections in PPC department. all of the materials required is planned by the department. departments would start planning how much yarn would be needed. if yarn is needed they only purchase from Sapphire and Ibrahim to fulfill the capacity. Maintain the lowest possible material and product levels in store.responsibilities start from the negotiation between merchandiser and customer and ends on the shipment of PO. 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. It works on the model of 3M‟s which are 1. Hence other processes are not outsourced as other companies don't follow the quality control and assurance techniques according to the international quality standards. Machine 3.g. JC penny ordered for 100000 polo shirts. Merchandizing Merchandizing forecast the future demand of the market with respect to the latest trends in the market.g.

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. When the sample is approved by the customer (the samples are sent thru FEDEX for physical approval. One more advantage is that a notification is sent to all systems if a machine stops working. After the PO is confirmed the merchandiser sends it to the PPC department to further perform their functions. also pictures of the product are sent through email). ERP calculates the loss in rupees according to the minutes the machine is not working. if one of their machines is not working for few minutes. Most of the manufacturers in Pakistan used database planning but Masood Textile Mill use ERP. 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. . After that they follow it up with the customer for receiving the sample and further take suggestions or improvements. It helps MTM to calculate accurately the loss of stopping a machine for a particular time. For example they can calculate their loss in rupees. 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. One more advantage which ERP gives to MTM is that this system calculates the quantitative data into rupees. They take samples of various materials and keep them in store for future requirements.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. which are defined by them. Efficient Response Program ERP is very much different from database system. 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. the merchandiser coordinates the confirmation of the PO (Purchase Order) and follows it up with the customer if there are any delays.

Spinning Ginned cotton 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 ginned cotton to produce yarn. India and Bangladesh and mixed with Pakistani cotton. 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. After printing it is ironed and sent to the cutting department. Egypt. It has different knitted fabrics for different kind of apparels. It is like solving a jigsaw puzzle its operator ensures that maximum usage of . Then on latest digital dyeing machines fabric is dyed according to the customer needs. These machines have Dia gagues which enables it to produce any width. Processing After the fabric is reached in processing first of all singeing is done to remove the fluff of the fabric. 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. 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. this further reduces their cost of production. 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 singeing. bleaching is done to change natural color of knit fabric from cream to white. which is being followed at the manufacturing facility. After the fabric is dyed it is sent for printing if it had to be demanded by the customer. Then listing from 2232 counts yarn is produced.

g. 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. also called average quality rating. The percentage of material is put down on the tags for e. weaving to dying and packing. 80 % cotton. after the AQL. Main store 2.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. 1. Stitching There are 1868 stitching machines which are run by skilled and expert operators. This system is the heart of quality control. the lot is sent to the tagging department. Warehouses There are three stores in MTM. Overall Quality Level OQL is a standard where garments are audited on their total rating. The bar code and logo is also put on every article. After that packing is done in which wrapping of the articles are done. If a defect is detected by quality department employee. Bar code is attached to the product at every single stage of the production and can be scanned whenever needed. knitting. At each step the product (each unit) is bar coded and relevant information is entered in the system to track. manage and track complaints to the last step. Quality control MTM has the latest technology employed for the best quality manufacturing from stitching.Fabric store (Stock pledge) 3.Shipment store . After this process the whole of the lot is sent to storage rooms located in another unit located on Sargodha Road. 20 % polyester. when over percentage of rejection is checked it should also comply with the standards already defined or decided in agreements. 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. Tagging and Packing After the stitching is done. Faisalabad. These machines are state of art and stitching is done according to the customer specifications.

thread. 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 Distribution network Masood textile is following two distribution strategies depending on the demand of the consumer. zips. Shipment store: As it is evident from the name. When the fabric is reached at the main gate and is received by the fabric store. General: Stationary. machine parts. These barcodes contain all necessary information regarding the contents of boxes. At gate inward gate pass is made. maintenance and sentry etc. 2.Main Store: There are two types of things. which are ready to be shipped. 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 . In Masood when production order is completed then it is packed in boxes and bar codes are pasted on them. Accessories: Buttons. Inspection of the fabric is handled in mills in Fabric Inspection Department (FID). On the day of shipment the boxes are loaded on trucks and final entries are stored in computer. on the gate the weight of the fabric is checked. 1. and needles etc Fabric store: The PPC department sends demand of fabric to fabric store according to plan of customer order. which is required by buyer. labels. are store here. purchase orders. which come under main Store. Fabric is shifted into store and stored customer wise in racks .If the fabric is rejected it comes first in store then sent to mills by making Outward Gate Pass (OGP). All the information regarding the Quality checks of shipment is done here.

specified by the cutomer. then masood is going to directly deliver the product at that point.to. „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. There are certain benefits that masood gives to their client such as they strore their inventory regardless of the time. This happens on a very rare occasion. This means. Such as the consignment has arrived at the storage and afer 10 days wallmart asks masood to deliver 10000 products to one wallmart store and 20000 to other stores after a certain period again. Direct. 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. 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. 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. eg. The diagram below gives a genreal view of the distribution flow of „Masood Textiles‟. Now the structure can be explained by the further examples. Wallmart is a customer of masood textile and it has ordered 100.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. that now it is the .000 articles of a product to be delivered in california (USA) at „Madera wallmart store‟.

Supply chain surplus of MTM decreases because of overstaffing of employees as the cost of production increase and profits decrease. Future purchase order feasibility can be made with a great accuracy and purchase orders than can be revised after discussion with the client. 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. 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. So they have to pay the expenses for the facilities provided in the warehouses. It is because they have to deliver the final products to the door step of the client. but also make sure its placement in the stores of the customer. It would decrease their costs immensely because MTM would not need to manage the warehouses and transportation costs within the US and Europe. Hence they should downsize. By purchasing agriculture land for the production of cotton MTM can become fully integrated textile composite. Recommendations MTM mainly increase their costs because of the high transportation costs. 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. . 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.responsibility of MTM to not only produce the product. In a given situation. This system is specifically designed for their major clients like Wal-Mart and Jesse penny which accounts for major sales. MTM should use the optimal level of material that is to be transfer from one location to another. 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. they also have to store the orders in their own warehouses which are located in Pakistan as well as US and Europe. This means the visibility of the future trend has become available to MTM.

Conclusion After examining MTM and by having a clear understanding of its supply chain. . 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. We found that this company is growing and getting efficient in all the stages of supply chain.

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