Professional Documents
Culture Documents
OPERATIONS
Table of Contents
Introduction..............................................................................................................................3
2. Types of Inventories..........................................................................................................4
The global impact of COVID-19 has influenced the process of the supply chain. COVID-19
has influenced the overall production of the organizations and has disrupted the supply chain
networks severely. For weeks at the start of the year, as COVID-19 was taking its toll on
China, experts were focusing on ‘supply shocks’. These were disruptions to the availability of
goods sourced from China; both finished goods for sale and products used in factories in
developed markets. Companies scrambled to sort out what production was feasible, and what
demand could be met. As the pandemic crisis deepened and nations have begun instituting
lockdowns, supply chains have been experiencing something completely new: systemic
demand shocks, where people are stocking up on consumer staples in order to comply with
restrictions on movements, in some cases buying months’ worth of goods in a single day .
Though the organization are facing a certain future where the manufacturers are speculating
the management of the existing inventory for the short and long term [ CITATION Shu02 \l
1033 ]. The process of inventory for manufacturers is likely to be in stock during the longer
seasonal times i.e. spring and summer season. Rest of season i.e. winter and fall where a
stock may be disbursed with less production and to make availability of the limited stocks.
Whereas, they will be focused on making an increase in sales and staggering SKUs to keeps
the business running smoothly. Companies around the world are taking outbound steps and
thinking out of the box to source inventory and satisfied their customers by delivering their
Manufacturing/Stitching
Warehouse /Storage
Distribution
E-commerce Retailers
Generally, there are types of inventories used by the company are as follows,
Raw Material
Raw material considered the basic input for making the production process. That
Work in Process
That inventory shows that items are getting prepared and required work before
Finished goods
That particular process shows that the items are being done and have been
The ability to manage the inventory’s characteristics serves as another function of inventory
systems. Inventory characteristics include how much inventory to order, the order cycle,
which is how often to place orders for the product; as well as supplier information, product
cost, product lead time, minimum and maximum order quantities, lot-size availability,
product unit of measure (pieces, each, tons, bags) and other product characteristics, such as
country of origin and manufacturer’s reference number. These characteristics comprise the
inventory control policies designed for each SKU and it tells the inventory management team
how to specifically manage the SKU level inventory. As at Lalaari manufacturing is at the
core of the operations and after one year of efforts company was about to launch its first retail
store in Lahore coupled with e commerce store for selling its products .All the preparations
were in place when this lockdown situation occurred due to COVID-19. It was a huge setback
on the face of starting a new business .Our main inventory characteristic was that our
products were in finished form after manufacturing 95% of the stock was in ready to sell
form before the announcement of lockdown by government there were very few WIP
inventory with us, however sufficient fabric raw material was available to manufacture more
Products and services fuel your business with the revenue they generate. Because they are at
the heart of your business operations, it’s important to take a calculated approach to
Service design is the coordination and combination of people, communication, and material
capabilities with product and business knowledge to convert ideas into physical and usable
objects
The analysis of the goods and services design concept which is integrated as an organization
is keeping their focus towards creating a competitive advantage by making the differentiation
in which the organizations could offer the unique method for their high quality of products
[ CITATION Smi02 \l 1033 ] . With the support of this process, they could lower the cost in
comparison to their competitors offering the same products in the market and make the rapid
response from their customers in demand by making the execution of the rapid design and as
well as the establishment of their products. The integration of the products and process
integration of all acquisition of essential with the help of using the integrated team of
products which is used to optimize the design, manufacturing, and process of supportability
for the manufacturing organization. At Lalaari we offered unique products of block print
methodology coupled with designs of solids .Block print is an outdated manual printing
technique which is quite intriguing in fashion these days, people are fed up of this new age
printed clothes and are gradually moving towards traditional methods and techniques, block
print became our hot selling product owing to upcoming Eid event and prolonged lockdown
products of solid designs which were simple clothes meant to be worn for home wear and
Due to prolonged lockdown this product also showed tremendous sale. The question arises
how we were able to sell our products even without opening our first outlet? This pandemic
situation has caused severe blows to the businesses which have to pay hefty rents of big
malls and fixed salaries of employees and also have to look for overhead charges at the same
time it has given a steep rise to e commerce business , after analyzing the lockdown situation
we shifted whole of our focus towards e commerce , production unit was utilized for
manufacturing of PPE for health workers and the remaining building with implementation of
SOPs was converted into whole ecommerce setup . Our unique product designs proved
fruitful and just few days before Eid we were able to sell most of the product through e-
commerce.
Besides a sound product design we built a string service mechanism to ensure timely
deliveries to our online customers as delays in deliveries and disruption in supplies are the
most critical our comes of this pandemic. Since we were operating from Lahore so prepared a
team of local riders apart from our courier service which were meant to deliver the product to
the customer from Lahore the same day. Same day delivery mechanism resulted in terms of
Inventory management systems play a vital role in making the organizational performance
more effective and efficient. For successful operational efficiency and organizational
role towards generating sales and meeting customer requirements .Even though it was such a
time period small brands were struggling to complete their products into finish form ,most of
the brands have their products in halfway of production means if someone has a cloth dying
factory they could not get it because of the closure and if some inventory is at embroidery set
up it also remained that way till the time ban is lifted. Here I would I like to highlight the
factors from our country’s point of view, closure of the markets other than essential items
promoted further the culture of online buying as in our country Eid festival after ramzan is a
sacred event and everyone tends to buy new clothes , so soon after the ban was lifted people
poured into the market in huge numbers . Then there was a huge daunting task for retailers
especially to provide new designs to customers as there was a little time left in Eid and
wholesalers were unable to get the products from manufacturers and it severely effected the
Multi stores were running after wholesalers and brand for provision of stock and they were
even willing to buy products on cash which generally does not happen in this field.
A strong finished goods inventory levels helped us meeting any demand levels even though
of the multi stores and retailers apart from e commerce. With the help of this finished
products inventory Lalaari boosted sales on multiple fronts like e-commerce,multi stores,
retailers and shopping stalls in areas under permanent lockdown like cantonments where even
couriers for online buying were not allowed to enter and people were in dire need of clothes
for their kids and families to celebrate the Eid.On the contrary there is another argument that
small brands or businesses which do not have their e commerce in place have struggled to get
rid of their inventories held with them as it is said an inventory held without sale is a head
ache for the company and day by day its adding up to the loss of the company.
4. Supply chain Metrics to evaluate the performance of the organization
Generally, supply chain metrics are considered by developing the specific measurement
which is further to be used in the qualifying and defining the performance of the
organizational supply chain. Therefore, such metrics are to be used in examining the accuracy
of the inventory and turnover metrics and inventory to sale ratio. Following are the main
supply chain evaluation used to evaluate the performance of the organization i.e.
Perfect order rate makes the insight of the KPI's of the critical supply chain for their business
operating in the multitude of the different organizational sectors. Therefore, the perfect order
rate examines the success of the organization for the ability to deliver the order without
damage. This process will help the organization to stand out with such inaccuracies,
damages, delays, and inventory losses [ CITATION Ott03 \l 1033 ]. Therefore, with this process
of perfect order rate the better because of the KPI has a direct influence on customer retention
and as well as customer loyalty. Therefore, the organization must require to make this KPI
better which brings customer retention and increase loyalty which ultimately plays a vital role
On-time Shipping
On-time shipping is an important metric of the supply chain used to measure the performance
of the organizational supply chain. Where the prime objective for the on-time shipping
suggested that it is the superb indicator of the supply chain metrics which allow making the
need for the shipping in the particular type of order to the client and customer or as well as
the partner. Therefore, such KPI will assure to set the benchmark shipping time to make the
relative to each product which in return allows optimizing the shipping and process of
delivery by reducing the time of their turnover and as well as boosting the satisfaction of their
customer level
pandemic, companies are seeing a notable increase in online shopping and local deliveries for
non-discretionary goods.
Actions taken:
Widening delivery windows from immediate or same day delivery, to two or three day
delivery, in order to give retailers time to rationalize the scheduling and routing of deliveries
Lower online order size to qualify for free shipments and relaxing return windows to provide
Reserving periods of the day for high-risk shoppers, as well as for cleaning and sanitizing the
warehouse
5. Suggestion for improvement
Having a clear picture of your inventory is helpful at any moment in business. However,
during the COVID-19 outbreak, knowing what you have in stock is more important than ever.
During a pandemic with shipping delays and material shortages, you want to be able to
clearly track what was ordered versus what was delivered. You also want to keep in close
contact with suppliers so you know which materials you will be able to replenish and which
The better you are able to track your inventory during this time of potential shortages, the
more strategic you can be about the inventory you assign to jobs. Proper inventory tracking
processes can also help you as you stagger the field staff entering the warehouse to grab
Supply chain management includes the examination for procurement of the organization,
production and transportation accuracy, and handling of the warehouse and material
management. Inventory management plays a very important role in making the organization
effective and efficient in every aspect. This method allows us to use resources ineffective
way and make the organization smooth in its operations. Thus, organizations require
improvement to make their focus onto the need of their strategy of constant development onto
the demand of their customers by changing the culture according to the time and as well on
the dealer's demand [ CITATION Kau01 \l 1033 ]. Thus, as per the vision and mission of the
continuous improvements. Hence, they must have to make the plan for their continuous
improvement in the organizational management through the management of the strategic
assessment and key components and culture of the total quality management which
underlying the environment of the organizational production. Thus, the development and
training of their employees and field staff are mandatory which directly related to the field
task nature of organizations. Though, health and safety and first aid must require as necessary
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