SUPPLY CHAIN MANAGEMENT

Presented By
Group 7
 Introduction to Hela Apparel Holdings
Hela Apparel Holdings is a US$270 million company that provides
sustainability-focused apparel supply chain solutions. The company
works closely with global brands, from design to delivery, in the
intimate, sleepwear and children’s product ranges. With 12 factories
across three countries and a workforce of over 20,000 across the
globe, and 9 million units produced per month. Hela leads the
industry in ethical and sustainable working environments.
Product Categories
Global Presence
Supply Chain Model
 Hela Supply Chain Model
supply chain model
▪ Make to order - Manufacture once order is
confirmed
▪ Hela manufactures apparel to another
business and has not retail shops
▪ Products are highly customizable
▪ Entire Supply chain is driven by actual
customer demand
▪ Challenging task to predict the demand
(fast moving short styles)
▪ Advantages :Reduce Wastage, Greater
variety
▪ Disadvantages: lengthy lead time, irregular
sales
Supply Planning- Order based
▪ The core of the process is supply planning,
which is carried out when order is received
(in accordance with the tech pack,quantity
required and timeline).
▪ The team decides procuring locations,
manufacturing location calculates the costs,
lead time and provides the customer with a
timetable and price based on the order.
▪ Some of the recurring customers provide
Hela with an advanced order plan for the
year, and in those cases, l planning is done
in advance.
 Customer orders
FOB (Freight on Board), this is the point in the supply chain where
the seller relinquishes ownership, and the buyer accepts ownership
of products purchased in a specific transaction.

Supply
Planning/Sourcing

Local Supply Customer

10% Warehouse

Raw Manufacturing Port-loading Port-unloading

Material Plant
Supplier
5%

Imported
85%
End Customer Customer
Store

Hela Customer
 Hela Supply Chain Network

Raw material Production End Product Lead Time

Sourcing locations facility Destination

China, Sri Lanka, Sri Lanka EU, USA EU 23-25 days Legend
India US 21-25 days

Tanzania, Sri Kenya EU, USA EU 23 days Sourcing

Lanka,India US 28 days

Tanzania, Sri Ethiopia EU, USA EU 23 days

Lanka, India US 25 days Distributing
(by other
Egypt, Tanzania Egypt EU, USA EU 3-7 days
US 12-16 days party)

Advantage of location near to

sourcing and niche market
Raw Materials
1. Supply fabrics, trims and packaging
2. Supply ancillary products , services
(E.g. embroidery , printing , washing)

Engagement with raw material Suppliers

● Hela always works to build long-term relationships with strategic suppliers.
● High level operational processes are followed by the company for the supplier.
❏ STEP 1 - A comprehensive supplier evaluation process will be conducted.
❏ STEP 2 - Suppliers will be contacted formally after agreeing with the contracts.
❏ STEP 3 - Hela monitors supplier performance on an ongoing basis using a Supplier Scorecard
❏ STEP 4 - Conducts announced and unannounced on-site inspections of manufacturing facilities
HELA Group’s Sourcing Markets
(% of Total Procurement)

Supplier Relationship Status

Regionalising Supply Chain
● The company has focused on regionalizing the supply chain by finding suppliers with
location advantages close to production and facilities.
● Africa -Cheap Labour
● Egypt -Closing to sourcing

Supplier Development
● Building long-term sustainable supply chain relationships and creating opportunities
for strategic suppliers.
Customer Service Model
Hela Customers
 Hela Customer Service Model
• Hela work with few large customers only
• Top 5 customers are adding to 95% of Hela revenue
• Hela team members (foreign employees )deployed in
next to customer for focusing and engage with much
more deeper level with customers
• Specific team work for particular customer in designing
,costing, delivery and planning
• Hela leadership visit customer every quarter to get feed
back, on communication ,product offering ,service level
and have a strategic level discussion.
 Customer Order designing and planning, after sales
service

• When customer want place an order with hela they will come up with their
order book and buying plan
• Hela together with Designing ,costing , product development, material team
and technologist plan a product considering technical aspect ,raw
material, aesthetic, costing element and manufacturing location
• Sample development ,price negotiation and get the customer order
confirmation and start up the process.
• Any defects in product will be communicated through mail or in an business
meeting and cost of defected product will be bear by Hela and for larger
defects penalties are applied
• Most of the time, customer will not ask for replacement of goods since
particular style may be out of date when replacement happen. For longer
styles ,if customer ask replacement of goods Hela will provide that service
Facility Location & Layout
 Facility Layout
Facility Arrangement
Country & Site selection for facility
• Clockwise arrangement of
each facility to avoid
unnecessary movements and
reduce wastage
• Consisting with RM stores,
Cutting Section, production
section and Finished good
store section
• Machineries have been
arranged in a way to produce
various styles (Line Layout/
product layout)
Facility Layout Arrangement- Hela Palapathwala

Production
Spreading & (Sewing/ Ironing
Cutting /Packing)

Raw Material
Storage

Finished Good
Storage
Challenges of Hela Apparel Holdings

•Risks to health and safety of staff Hela Clothing global

locations.
•Tight focus on operational efficiency and lower costs may lead
to staff job losses.
•Growth and expansion at the expense of environment and
sustainability
•Exploitation of labor
Opportunities of Hela Apparel Holdings
•Promote Sri Lanka as a socially responsible manufacturer.
European
people focused on socially responsible.
•Transitions to products that require high labor content.
•Government support.
Supply Chain Challenges and Solutions
Supply Chain Challenge Solution
Time and cost for procure raw materials for Allocation of IPO money to start hela owned
productions in Sri Lanka fabric mill in Sri Lanka

Volatility of getting orders Collaboration with larger fashion businesses

like Nike and Victoria Secret in 2022

Lead times and finding labour Multi Country origin strategy to simplify supply
chain, Nearshoring option

Delays of Sampling approval due to freight 3D Sampling

delays in pandemic season

Supply chain transparency to customer Developing ERP/ SAP system which Vendor
contributing the entire value chain across all
stages of the process
 Group Members
Gunasena P G M A K - 228217G
Jayawardhane S H P -228225E
Senthuja K -228241A
Nirmani S W L - 228233C
Dilakshi R.L.T - 228208F
Manjula Devapura - 228207C
Vitiyala V V P M -228267H
Sarathchandra Y R S -228266E