Servis Shoes

Brief History:
Servis Industries Limited.
• Founded in 1942.
• Headquarters in Gulberg, Lahore,Pakistan.
Products by SIL.
• Footwear Brands.
• Tyres and Tubes.
 Servis Shoes
Servis shoes was established in Lahore in 1959 with the notion of
fulfilling the footwear needs of an entire family. Servis has thrived to a
network of more than 500 retail outlets and 1500 independent retailers
in wholesale network. With its constant innovation in design, and up-to-
date style trends, Servis is maintaining its leadership in unmatched
products for all age groups and personal taste.
Variety
Servis shoes have a variety of shoes which caters to the demands of almost every
age groups and genders. This vast variety gives servis a competitive advantage over
others as servis had given different brand names to it’s footwears for different
people.
 NDURE (for youth)
 LIZA (for women)
 TZ ( for children)
 SKOOZ (school shoes)
 CALZA (for men)
 Servis Shoes
Competitors
Some competitors of servis shoes are:
 Urban Sole
 Stylo
 Bata
 Supply chain strategy or design
• Long term decision

• Location
•Mode of transportation
Supply chain planning
 Decision over the next quarter or year

Seasonal forecasting
Supply chain operation
• Day to day operation

•Inventory check.
 Supply Chain Strategy
 Supply Chain Flow

Suppliers - Manufacturers - Warehouse - Retailers/Wholesalers - Customers

 Suppliers
Because of zero import duties on leather. They import leather from different
countries.
 Supply Chain Strategy
Manufacturers
They have two manufacturing plants in the country:
1. Muridke
2. Gujranwala
Warehouses
There are 6 warehouse of servis shoes in the country in different cities. These
are in Lahore, Karachi, Islamabad, Multan, Faisalabad, Gujranwala.
Supply Chain Strategy
Retailer/ Wholesalers
There are 500 company owned retail stores in the whole country.
Supply Chain Flow Chart

Customer

Servis Shoes
Retailer Shop

Servis Shoes

Supplier
Push/Pull view and Cyclic view of
Servis Shoes
Servis Shoes
Competitive Strategy Statement
It aims to provide:
• High variety of shoes
• Reasonable Quality
• Affordable Price
EFFICIENCY/RESPONSIVESS
SPECTRUM

Servis Shoes
Zone of Strategic Fit
Supply Chain Drivers
Logistic Drivers
Facilities
•As the focus of the production is on mass customization so they have two
centralized production facilities. One in Gujrat and other in Muridke, so
•They are flexible, as they are producing different types of sizes and styles of
products for different age groups, and gender
•Flexible machinery is required
•Cost is high but the overall tradeoff is at somewhat responsive
Inventory
As they are working on the push view, so they work in anticipation and forecast
the demand and to fulfil that demand they carry inventory, for this they have big
storage capacities in their production facilities for raw material
•They have four distribution centers & 500 stores all over Pakistan which serve
them for as cyclic seasonal and safety inventory and
•As there are four inventory centers which have high handling and carrying cos so
•He overall tradeoff is at responsiveness at high cost
Transportation
Servis do its all transportation in bulk so they uses big trucks
•Servis uses big trucks for inbound transportation through highways
•Servis uses big truck carrying the ready products to the inventory through
highways
•Servis use small trucks and pickup vans for outbound transportation because the
retail stores are at market places which are high traffic places so small trucks
and pickup vans are good source of transportation
•The bulk and outsourced transportation cuts the cost and makes it efficient in
supply chain
Information
Servis uses softwares like
RMS
ERP
SCM system
Which makes it efficient because these software are not very expensive
Sourcing
•Servis outsource the raw material it required from the supplier
•Servis rent out for its information system from big software house as they as it
is not easy for the production company to develop its own systems
•Production is done in-house
•Inventory held inhouse
•Retail store inhouse based selling and outsource( franchised based retail stores)
•So the overall trade off is at somewhat effiecient
Pricing
There pricing strategy is high to low
Normally they have high prices but they introduce regular sales on month end
and on special events and occasion which stimulate demand among the
consumer that increases sales
They apply sales on slow mover through forecasting and sell fast mover on
regular prices for the they have to be highly responsive to know exactly to put
which article on the sales or not
 Distribution Network

Plants

DC

Retail Stores

Customers
Performance Characteristics
Cost Factors:
1. Inventory: High Inventory Cost
2. Transportation: Low Transportation Cost
3. Facilities and Handling: High Cost
4. Information: They have good infrastructure of information systems
Service factors:
1. Response time: Good
2. Product Variety: Large
3. Product availability: Reasonable
Service Factors (Cont..)
4. Customer Experience: Excellent
5. Time to market: Longer
6. Order visibility: High
7. Return ability: Easier