The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.

For :
Muhammad Ismail Hossian
Lecturer Department of Marketing University of Dhaka

By:
MACHISMO Roll No.: 16, 32, 60, 74, 88

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

 A leading readymade garments Manufacturer & Exporter of the country Mohamma had started business in 1986 with one factory and 52 work forces.

Presently Mohammadi Group running 7 Garments Factories (4 Woven, 3 Sweaters) with 6,000 approx. works forces.  Major Market place: Company EUROPE: 40 % Profile USA / CANADA: 60 %  Capacity: WOVEN SHIRT = 450,000 - 500,000 Pcs. SWEATERS = 250,000 Pcs  Annual Turn Over: US$ 35 Million (approximately)  SBUs :
I. ARROW APPARELS LTD III. MG KNIT FLAIR LTD.. VII. SAMPLE FACTORY: V. MOHAMMDI PACKAGES LTD. II. MG SHIRTEX LTD. IV. MOHAMMADI FASHION SWEATERS LTD VI. MOHAMMADI PRINTING & EMBROIDERIES LTD.

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Wal-Ma rt

Sears H & M Nex t

K-m art Arr ow Yves Do rsey

Major Customers

Ko hl’s Calv in Kle in

Major Competitors

Envoy Group ABA Group Emillion Group

Babylon GroupIII Opex Group Nasa Group

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Wall-Mart: (Buyer)
400000 pcs

Order Received

Production A sample Li & Fung: MG’s & Transaction Buying Merchandisers Quality Flow of House check MG 250000 pcs
150000 pcs To others. Bidding Agency

Mearsk (Shipment)

Beximco (Supplier)

Atlas (Logistics)

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Cycle View :

Buyer Buyer Order Cycle
Manufacturing Cycle

Buying House Mohammadi Ltd.

Process view of supply chain

Procurement Supplie Cycle r Figure: Supply Chain Process Cycles of Mohammadi Ltd.

Push / Pull View :
Pull Processes Buyer order arrives Push Processes Figure 7: Push/Pull Process for Supply Chain of Mohammadi Ltd.

Buyer order, Manufacturing & Procurement Cycle

Sourcin g Strateg ies

Replenishment lead time On-time performance Supply flexibility Delivery frequency/minimum lot size Supply quality Inbound transportation cost  Pricing terms  Information coordination capability  Exchange rates, taxes and duties  Supplier viability
Supplier Scoring And Assessment
Supplier Selection and Contract Negotiation Transacti onal Purchase

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Procuremen t

Sourcing Planning and Analysis

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Stages of Purchasing :

Purchas ing Strateg ies

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Plannin g & Managi ng Invento ry
1=In the lead time of production, MG need “q” amount of inventory which used for the production & these inventory are ordered according to the buyers order. This is also applicable for the other time frames.

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Logisti cs

BUYER

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Trust & Interdepen dence in the SCM of Mohammad i Ltd
According to Mr. Atiqur Rahman, DGM (Merchandiser), of Mohammadi Ltd: “We have some clients for 10 years. This is a vital factor in the RMG sector. Because in this market, the buyer switch so fast. We have no collaboration, no partnership or our Chairman is not vital for this relationship. This is only the Trust & Interdependency though we have some lack in it, in frankly speaking.”

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

Value Of Visibility In Decision Making

Types Of Visibility

Types of Visibility: • chain of custody, • Pedigree, • Inventory age profiling. From the perspective of Mohammadi Ltd, pedigree is the appropriate visibility.

The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

SCM Visibility Of MG

In case of visibility, The Mohammadi Ltd is Transparent, because they need to share all the relevant information about their product, production & transaction.

Value Creation Stages of MG Sketche d by “Machis mo”

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The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.” Share of information need to increase because it will help to increase the efficiency & effectiveness of the firm. Own transportation facility can increase the transportation responsiveness. Mohammadi group can set up own Buying house which will increase their revenue and also help to capture large quantity of production order. Mohammadi Ltd needs to provide after sales service which will help to induce a better relationship with the buyers. Mohammadi Ltd. can use seasonal specialized work force which reduce their operation cost. They need to develop the components of facility that is – Change the location of the factory because it is in a backward position to find out. Transportation facilities need to increase because it will fasten the operation. They can use computerized system in their 4-line operation. Coordination between the group will give a competitive advantage. Mohammadi Ltd. should use specialized SCM softwares for fast achievement of the supply chain management speed. Reduce operating costs in the office management & give more emphasize on customer relation.

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The Supply Chain of RMG Industry: A case study on “The Mohammadi Ltd.”

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