Merchandise Plan Report on Gul Ahmed

SUBMITTED BY: RABIL

RASHEED
REG NO # 8128
SUBMITTED TO: Ms.Iqra
Mushtaq
Contents
Introduction....................................................................................................................................2
Objectives.......................................................................................................................................2
Concept...........................................................................................................................................2
Merchandise Management............................................................................................................2
Supplier Strategy and Production................................................................................................3
Conclusion and Recommendation................................................................................................3
 Introduction:

 The Gul Ahmed group began trading in textiles in the early 1900’s. With all its know-how and
experience, the group decided to enter the field of manufacturing and Gul Ahmed Textile Mills Ltd.
was incorporated as a private limited company, in the year 1953 with a paid up capital of Rs. 8 MM.
The Company started out as an integrated unit manufacturing cotton yarn and cloth
(grey/finished).Ideas by Gul Ahmed is the retail venture of Gul Ahmed Textile Mills Ltd.
 The company decided to diversify ail sector in 2003.
 Gul Ahmed is playing a vital role not only as a textile giant, but has its strong presence in the
retail business as well. The opening of its flagship store – Ideas by Gul Ahmed– marked the group’s
entry into the retail business. Starting from Karachi, Gul Ahmed now has an extensive chain of
more than 40 retail stores across the country, offering a diverse range of products from home
accessories to fashion clothing. More than 50 years since its inception, the name Gul Ahmed is still
globally synonymous with quality, innovation & reliability.
 At Ideas, GulAhmed's tradition of quality style provides an elegant taste of creatively designed
textile ranges in a vibrant palete of colors, fabrics, patterns, textures and embroidery styles.
 GulAhmed has been an exporter of textiles for many years and with its vast experience and reach
the company is set to develop an extensive chain of stores across country, aiming to bring its
customers an unbeatable shopping experience.
 Business Activities Being vertically integrated Gul Ahmed is capable of producing different
varieties, starting from cotton yarn to finished product involving different processing techniques.
With an installed capacity of 120,000 spindles, the spinning units are able to produce a wide variety
of yarns from 100% cotton yarn to poly-cotton, cotton-viscose and other blends in both coarse and
fine counts.
 Mr. and Mrs. Ziad Bashir, who identified the gap in the market that their company was only
known for ladies clothing line that is: lawn, cambric and linen. However, their product line included
other item such as bed and bath linen and male clothing.

Objectives:
The Idea store has developed several objectives:
 To provide all its products under one roof.
 To build their brand and to promote it by creating a huge
impact in the minds of the customer.
 To develop customer managed relationships.
 To achieve operational excellence and customer intimacy.
 To achieve success not only locally but globally as well.
 To develop an outstanding service vision.
 To increase export rate.
 To introduce innovative and creative ideas among consumers.
 To spread the retail house chain.

Concept:
The design achieved its main goal which is keeping authenticity of Pakistani culture which is the
core of GulAhmed and add modern elements so it can branded and blended easily in any country
around the world and still be authentic yet up to date. The design also took into consideration the
marketing. The vibrant colors, the feature elements and the way goods are displaying capture the
shopper eyes and make them feel they are walking in a festive colorful atmosphere. Displaying the
items in a creative reachable way; gives the shopper the chance to touch and feel the quality of the
fabrics and goods whether its women or home.

Merchandise Management:

Inventory is the major component of Gul Ahmed’s financial statements. The company has a full
proof inventory movement system “Inventory Management” system. It is using the weighted
average inventory system for calculating the rates of the individual item. Gul Ahmed is maintaining
the minimum stock of every item that tell it about the re-ordering of that item and it calculates this
minimum inventory level by considering the maximum lead time and the safety stock. For Dyes and
chemicals it maintains the minimum stock as per the planning of the next three months orders.
As the dyes and chemicals are highly volatile items and they turn into the dead stock after one year,
the company uses prudent approach for these items.

Supplier Strategy and Production:

Gul Ahmed is proud to be the largest Home Fashion Exporter to the European Union consistently
for the last 25 years. Supply Chain Gul Ahmed has the very strong and effective supply chain
management; it has the number of items that are major component of the Textile Industry that is
Cotton, Yarn, Gray, Dyes & Chemicals, Spare parts, Packing Material, Stitching Accessories,
and General Items etc. Gul Ahmed has the very transparent procedure of the procurement of the
above items, Cotton is normally a very specific material and the cotton is traded and fluctuated on
daily basis so the forward purchasing is done from the suppliers to avoid any stock out position.
It books its cotton on the basis of the orders received from the export and the Local retail shops. The
same procedure applies to the Yarn and the Gray procurement.
Dyes & Chemicals are mainly imported and they have the internationally recognized suppliers
like BASF, Clariant, Dystar, Stork etc. They are the quality suppliers. For the local purchasing such
as chemicals, packing material and general Items they get the quotations from different suppliers
and evaluate each of them beside the price negotiations and finally to approved supplier they visit
the factory to check either any child labor or any environmental violation is being done at the
factory. They are the quality supplier for their customers so they strive to maintain the best quality.

There is the procurement procedure as follows:

 The request raise from the department or user.

 The user prepares the requisition.
 The requisition review by the Store and if the item is available in stock they issue if not the
asked to raise the indent for the item to purchase.
 The Indent after scrutiny sends to the purchase department to get the rates from the approved
suppliers.
 The purchase order is made and issued to the selected supplier and the supplier send the
items on the agreed time.
 The Store takes the item in the store receiving document and update the stock level.
 The Store department then asked for the store requisition from the user to issue the item from
the store.

Conclusion and Recommendation:

The Gull Ahmed group is an internationally recognized group, has the potential to become the
largest group in Pakistan as it stands among the largest industries in Pakistan. The scope of textile
sector in Pakistan is escalating so there is a high possibility that the group expands its business
further by taking advantage of the opportunities it has. In this way, it will help in improving the
economy of Pakistan.
On the whole, the Gul Ahmed group of textile industry is one of the most successful and established
industries. It has the potential of escalating its position further by making use of the strengths and
opportunities it has.
Instead of targeting elite class and high prices, it should offer special discount offers during the
period of economic downturn so as to retain the customers during recession. It should export their
products globally by observing the changing preferences of their customers.