Gul Ahmed

SUPPLY CHAIN OPERATION
REPORT
1. Sumama Ikhlas - 2025133 (Introduction, SC Drivers & Facilities)
2. Maheen Liaquat - 2035283 (Transportation & Sourcing)
3. Saeed Hussain -1935271 (Inventory)
4. Khalid Hussain Soomro - 2035231 (IT in Supply Chain)
5. Muhammad Taha Anwar -1839132 (Co-ordination)

 Incorporated in early 1900’s
 Become a company in 1953 as Gul Ahmed Textiles Ltd.
 Listed on KSE in 1972.
 Leading textile house in Pakistan
 In 2003, Gul Ahmed entered the retail sector
 Offers home textile, furnishing for the bedroom, kitchen & bathroom furnishing
and apparel segment.
 Exports its product across globe include European market

Supply Chain Design/Planning & Operations
 Spindle installed capacity of over 51,840
 Stat-of-the-art most advance and modern dyeing, weaving, processing
and stitching units which comprises of 300 units

 Grinning capacity of Gul Ahmed is 143,000 raw form of cotton per day.
 Transportation is done usually through truck through 3rd Party logistics
within domestic boundaries while for International export orders

containers are used for shipping
Supply Chain Design / Planning & Operations
 Take quotation from the suppliers.
 Negotiate T&C and prices with suppliers.
 For chemical, packaging and other general supplies they have a
continuous supply from designated suppliers.

Push/Pull View of Gul Ahmed Supply Chain
 Gul Ahmed combines both views of supply chain
 For B2B customer they use pull strategy
 Gul Ahmed has over 40 retail stores across Pakistan so for the end
consumers they use push strategy

 Get retail customer through advertisement and by offering latest
trending clothes (Push strategy)

Drivers of Gul Ahmed
Facilities:
 Arranging of composite plants which make products from yarn to wrap
up items
 Strict control at the facilities to ensure quality.
 State of the art machinery is used in production.
 Manufacturing process: Spinning, weaving, printing, dying, finishing,
design, style, hemming and quality control.

Inventory:
 Raw Material to Finished Goods which includes cotton yarn to textile goods
 Seasonal inventory according to season and demand
 Twice inventory for occasion such as Eid as demand got doubled in this
period
 Gul Ahmed is using state of the art machinery but they lack behind in IT
sector. They need to include software's such as RFID.

Transportation:
 Both in-house transportation and outsourced to 3rd parties.
 Major transportation methods are road, rail and sea.
 Utilization of bar-coding in coordination’s with frameworks
 Use of EDI to convey between branches.
 Internet and Web Services for communication between
partners.
Information:
 Automatic updating of members accounts ledgers.
 Recording of supplier info and pay bills
 Auto updating of supplier and purchase orders.
 Recording of bank receipts.
 Payroll analysis.
Sourcing:
 Maintain clear communication with vendors related to the product
which is being manufactured.

 Automation inventory management process will minimize the extra
manufacturing cost.
Pricing:
 Gul Ahmed is focusing on price penetration strategy these days due
to increased competition in the market, decrease in purchasing

power of customer and supply chain cost
Factors Influencing Network Design Decisions
Strategic Factors:
 Gul Ahmed focuses on cost leadership over efficiency in
supply.
 Their facility is not in the middle of the town or near to
their stores.
 Gul Ahmed focuses on server facility for its local market
demand
Factors Influencing Network Design
Decisions
Technological:
 Gul Ahmed focuses on economies of scale as they have few high
capacity production facilities.

 Their production capacity is well equipped in- terms of machinery
but as far as the IT is concern they need to improve in that area.

Factors Influencing Network Design Decisions
Macro Economics Factors:
 For its export orders exchange rate comes into consideration as the
duties, custom and carriage are paid according to $ exchange rate.

 For local facilities taxes are paid according to local government
policies.
Decisions
Political Factors:
 Although political stability isn’t in best condition but as far as the
policies and trade terms are concern it is in a stable position which

doesn’t effect the facility of Gul Ahmed.
 But the lockdown situation and government intervention in the
working hours effect the production time and cost

Decisions
Infrastructure Factors:
 Due to recent development of roads, motorways and highways its
now much easier to commute between facilities as compared to

past.
 Which save time and fuel cost.
Decisions
Competitive Factors:
 The competition within the local market is quite high.
 Competitors more often give promotions and discounts.
 Gul Ahmed counter them quite aggressively by giving heavy
discounts constantly
Decisions
The cost of logistics and facilities:
 Gul Ahmed transportation cost is high as their # of facilities are
low.
 From 1 location in a designated region they supply products which
makes their transportation cost higher.

Inventory Management
 Maintain the minimum stock of every item
 Consider the maximum lead time
 Gul Ahmed try to maximize the safety of stock and keep the
sufficient safety stock
Methods of Valuation used by Gul Ahmed:
 weighted average inventory system
 Prefer to use FIFO

Objectives of Gul Ahmed Inventory System :
 Maintain the minimum stock of every item.
 Consider the maximum lead time.
 Gul Ahmed try to maximize the safety of stock and

keep the sufficient safety stock.
An optimum inventory level involves three types:
 Recommend the average inventory turnover
 For Stores & Spares Gul Ahmed broken down the items in
three categories
 Second one is “Running Items” that are commonly use spare
parts
 Some items approved in the yearly budgets department wise.
An effective inventory management:
 Gul Ahmed ensure a continuous supply of raw materials
to facilitate.
 Gul Ahmed maintain sufficient finished goods inventory
for smooth sales, operation, and efficient customer

service
 Gul Ahmed controls investment.
How Gul Ahmed meets Needs & Demands:
 Gul Ahmed have the very strong and effective supply chain
management
 Gul Ahmed have the very transparent procedure of the procurement
 Gul Ahmed booked our cotton on the basis of the orders received
 For the local purchasing such as chemicals, Packing material and

General Items we get the quotations from different suppliers and
evaluate each of them
Transportation
Shipping policy of Gul Ahmed:
Free Delivery across Pakistan
Customer usually receive order within 3 to 5 business days
Cash on Delivery / Card Payment
Order Tracking
International shipping through DHL
Order cancellation by customers
Refund policy
Return and exchange policy

Procurement steps
 processing
 Spinning
 Weaving
 Yarn dying
 Design
 Stitching
 Quality control
Processing
 Uses high-tech machinery in the production of cloth.
 Skilled professionals contribute their skills and
abilities to produce the final good .

 Uses a unique chemical in processing of cloth for its
quality maintenance.
.
Spinning
 This is an art of converting fibers in to yarn.
 Different machines from Germany , japan are used for
spinning.
 Latest machines which are used is auto cone machine
and blow room lines.

Weaving
 It is method of fabric production.
 In which two distinct set of yarns or threads are
interlaced to form fabric.

Yarn Dying
 Adding of colors is done through special solutions
ands various chemical materials.

 In yarn dying machinery is imported from USA,
ITALY .
Process and Design
 Design studios of Gul armed have the experienced
professionals who has creative ideas for designing .

 Artist adapt different color ways to ,meet the
specification of each individual country.

 They use special CAD\CAM systems and other
technological tools for designing.

Stitching and QC
 Fabric is converted into finished product using different
sewing machines.
 Product must take the shape while stitching .
 Automation cutting is used through different machinery .
 Product is checked for meeting quality level .
 Gul ahmed follows guidelines for quality from ISO 9000
which have certain quality standards.

Coordination in Supply Chain
 Lack of supply chain coordination
 Bullwhip effect
 Effect of lack of coordination on performance
 Designing effective conflict resolution mechanisms

Coordination in the supply chain
 Managerial levers to achieve coordination
 Building strategic partnerships and trust
 Within a supply chain
 Achieving coordination in practice
 Creating effective contracts

Role of IT in a supply chain
 Information provides the basis for supply chain
management
 decisions
 Inventory
 Transportation
 Facility
Role of IT in a supply chain
 Customer Relationship Management (CRM)
 Internal Supply Chain Management (ISCM)
 Supplier Relationship Management (SRM)
 Plus: Transaction Management Foundation

Gul Ahmed

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Gul Ahmed

Uploaded by

Copyright:

Available Formats

SUPPLY CHAIN OPERATION

2. Maheen Liaquat - 2035283 (Transportation & Sourcing)

3. Saeed Hussain -1935271 (Inventory)

4. Khalid Hussain Soomro - 2035231 (IT in Supply Chain)

5. Muhammad Taha Anwar -1839132 (Co-ordination)

 Become a company in 1953 as Gul Ahmed Textiles Ltd.

 Listed on KSE in 1972.

 Leading textile house in Pakistan

 In 2003, Gul Ahmed entered the retail sector

and apparel segment.

 Exports its product across globe include European market

 Spindle installed capacity of over 51,840

 Stat-of-the-art most advance and modern dyeing, weaving, processing

and stitching units which comprises of 300 units

 Transportation is done usually through truck through 3rd Party logistics

within domestic boundaries while for International export orders

 Take quotation from the suppliers.

 Negotiate T&C and prices with suppliers.

 For chemical, packaging and other general supplies they have a

continuous supply from designated suppliers.

 Gul Ahmed combines both views of supply chain

 For B2B customer they use pull strategy

consumers they use push strategy

trending clothes (Push strategy)

 Arranging of composite plants which make products from yarn to wrap

 State of the art machinery is used in production.

 Manufacturing process: Spinning, weaving, printing, dying, finishing,

design, style, hemming and quality control.

 Seasonal inventory according to season and demand

sector. They need to include software's such as RFID.

 Both in-house transportation and outsourced to 3rd parties.

 Major transportation methods are road, rail and sea.

 Utilization of bar-coding in coordination’s with frameworks

 Use of EDI to convey between branches.

 Internet and Web Services for communication between

 Automatic updating of members accounts ledgers.

 Recording of supplier info and pay bills

 Auto updating of supplier and purchase orders.

 Recording of bank receipts.

 Maintain clear communication with vendors related to the product

which is being manufactured.

 Gul Ahmed is focusing on price penetration strategy these days due

to increased competition in the market, decrease in purchasing

 Gul Ahmed focuses on cost leadership over efficiency in

 Gul Ahmed focuses on economies of scale as they have few high

capacity production facilities.

but as far as the IT is concern they need to improve in that area.

duties, custom and carriage are paid according to $ exchange rate.

 Although political stability isn’t in best condition but as far as the

policies and trade terms are concern it is in a stable position which

working hours effect the production time and cost

 Due to recent development of roads, motorways and highways its

now much easier to commute between facilities as compared to

 The competition within the local market is quite high.

 Competitors more often give promotions and discounts.

 Gul Ahmed counter them quite aggressively by giving heavy

 Gul Ahmed transportation cost is high as their # of facilities are

makes their transportation cost higher.

 Maintain the minimum stock of every item

 Consider the maximum lead time

 weighted average inventory system

 Prefer to use FIFO

 Maintain the minimum stock of every item.