SUPPLY CHAIN AND LOGISTICS MANAGEMENT CIA-I DEVELOP AND PRESENT A SUPPLY CHAIN MODEL- INDIAN TEXTILE INDUSTRY =< Submitted By NIGIN CHRISTOPHER C (1827920) SHAFIA S (1827927) UDDIPAN DE (1827931) Submitted To PROF. GEORGY P KURIEN (DEEMED TO BE UNIVERSITY) BENGALURU -INDIA 25% JUNE 2019Competitive & Supply Chain Strategies - Textile Industry The supply chain of textile industry is a long and complex one. The cycle times as well as the delivery times are affected by this. As most of the fashion driven products has very short shelf life, delays in deliveries are unacceptable. It’s not just time-to-market which is affected by these types of delays, but the obsolescence of Work- “Progress (WIP), variability of supply chain etc. are also affected eventually affecting the final cost, This in tum demands the establishment of lean supply chain networks, which is very critical for the manufacturers, by strong deployment of industrial engineering specifically emphasizing on cellular manufacturing and JIT systems. Greater supply chain control and cost reduction is achieved by complete presence across the value chi . and by demand assessment by integration & investment captive power units, There are four major decision areas in textile supply chain management: The first step in creating an effective and efficient supply chain includes the geographic placement of manufacturing units, warehouses and sourcing points. Deciding the facility location is resource intensive as it is a long-term plan, The optimized product flow is mapped considering production and distribution costs, taxes, duties, tariffs, production limitations, etc. Deciding these factors are significant to a firm since they have a considerable impact on cost, revenue and service level as it represents the basic strategy for accessing customer markets. Even though location decisions being strategic, they have operational level implications too. 2. Production decisions The production decisions include the selection of product family and product lines, allocation of plants, suppliers and distributors etc. Just like location decisions, production decis ns_also have a considerable impact on cost, revenue and service level. Thedetermination of product flows to and from these facilities are considered here. The capacity of the manufacturing facilities, which is highly dependent on the integration level of the firm - is another critical issue, Other factors like master production schedules, machine assignment and allocation, equipment maintenance, workload balancing, and quality control measures at the facility also significantly affect the supply chain efficiency. 3. Inventory Decisions Either ‘aw materials, WIP or finished goods, Inventories exist at every stage of the supply chain, They can also be i process or in-transit between locations. The primary purpose of inventory is to buffer any uncertainties existing in the supply chain network. Efficient management of inventory is critical in supply chain operations since maintaining them in stock accounts to about 20 - 40 per cent of their value. Itis strategic in the sense that top management sets goals. Most commonly, researchers approach inventory management as an operational These include inventory control policies -Determination of Economic Order Quantity and Reorder Levels, Setting safety stock and stocking location ete. ‘Controlling these policies are crucial as they are directly influencing customer service levels. 4, Transportation (Distribution) decisions In textile industry, the most strategic distribution decision is about mode selection. They are synonymous to inventory decisions, since choosing any mode of transit demand some trade off in inventory. For e.g., Cheap, bulk and less flexible transportation by sea or rail nec fates stocking up of huge amounts of inventory to compensate the inherent uncertainties. Therefore, for such critical decisions, geographic location and service levels play a crucial role. As distribution accounts to more than 30% of the logistics costs, operating it efficiently makes good economic sense. Size of shipments, equipment scheduling & routing plays a criti al role in the effective management of a textile firm's transport strategy.Supply Chain Strategies Considering the requirements of the ever-changing business environment in textile industry and its supply of raw materials such as polyester, cotton and distribution of the finished apparels, a proper business and planning strategy is required for the supply chain management to be successful. The following are the strategies and planning: + Foresight of the business, i.e., right idea, right supply at right time. + Proper market survey for the customers’ requirements, demand and supply. + Proper production planning at supply end and that of consumer end with proper information technology. + Product consignment to match the demand supply curve. + Marketing and distribution strategy. + Strategic industry studies. + Predicting industry trends. + Market entry strategy. + Financial planning + Market feasibility studi Strategie Alliances. + Tap management recruitmenvitraining. SUPPLY CHAIN DRIVERS OF TEXTILE INDUSTRY ‘The main drivers of supply chain in textile industry are: © Fa ies © Inventory © Transportation © Inform: © Sourcing* Pricing Facilities: Facilities are where the product is stored or assembled. The location, capacity and flexibility of these facilities impact the supply chain. For textile industry a distributor can have many warchousing facilities for quick and better access of their products to their clients. But too many warehouses show responsiveness of the distributor but also less efficieney because of high maintenance cost of the warehouses. Important factors to consider before selecting the facility are: plant size, site constraints, capacity, labour productivity, distance from head office, age of plat, remoteness. Inventory: They can also be in-process between locations. The primary purpose of these inventory is to act as a buffer against any uncertainty that might exist in the supply chain. Holding of inventories can cost anywhere between 20 to 40 per cent of their value and hence their efficient management is critical in supply chain operations. cotton arrivals are spread over a six-month period from October to March, quality cotton is usually available in the first few months. Cotton spinners are cautious on stocking cotton for long periods after the inventory losses faced during 2012. Many have shifted to an inventory cycle of 2-3 months: from the year 2017. The old inventory cycle was 6 months. ‘Transportation: Transportation mode decision which are also strategic are closely linked to inventory decisions. The best choice of mode is often found by trading-off the cost of using the mode of transport with the indirect cost of inventory associated with that mode. ‘Transportation by sea and rail is cheaper and it holds relatively large amounts of inventory. Customer service levels and geographic location play an important role in these decisions. Since transportation cost is more than 30 per cent of the logistics costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus Lot-for- Lot), routing and scheduling of equipment are key to effective management of the firm'stransport strategy Information: Flow of information is an important aspect in supply chain, Information from customers provides the supplier with the taste of the customer and helps to forecast customer demands. In textile industry a business information system can be developed by sharing information about warehouse as how much stock is available in the warehouse, by transportation management system which provides information about orders and shipments. Sourcing: Cotton is the predominant fabric used in the Indian textile industry, accounting for nearly 60 per cent of production. The average yield of cotton per hectare in India is about 400 kilograms which is considered low and it grows mostly in western and central India, Cotton exports to major countries stood at US$ 3,203 million in 2005-06. The wool industry is small and scattered across the country, with 77 per cent of the production coming from northern states. The jute industry is labor intensive and it grows in eastern India, And jute production in India in 2005-06 was 1.582 metric tons. Jute exports for the year 2005-06 stood at USS 272 million. Pricing: Pricing is an important factor in supply chain. It can determine how much a firm charge for its goods and services available in the supply chain. It can affect the buyer’s behavior and thus affects the supply chain performance. In textile industry, a company may charge more from customers who prefer efficiency and need quicker delivery and charge comparatively less to customers who are willing to wait. This shows two different levels of responsiveness fitting to the demand of the customers. Usually firms go for menu pricing. instead of fixed pricing i.e. they vary the price based on some attribute such as location of delivery.Filament an Creo) igure: Suply Chain Process Flow of Indian Textile IndustryREFERNCES Irum Shahzadi, S. A. (2013). Drivers of Supply Chain Performance Enhancing Organizational ‘Output: An Exploratory Study for Manufacturing Sector . European Journal of Business and Management , 53-64. Raparia, P. (2017). Supply Chain Management in Textile Sector: A Sequential Process. JOSR Journal of Business and Management, 43-50.