1.

An Introduction to Supply Chain Management

1.1-Objective

The principle of ‘Survival of the fittest’ remains valid in the present global
economy characterized by the presence of ever changing business environment.
Every modern company needs to struggle for the existence & growth under such
a competitive environment. One surest way to achieve this is to offer best
quality of product at reasonable rate, which suits well to the requirements of
target customer. To impart a feeling of delight in the minds of consumers and
provide quality product at reasonable price manufacturer has to bring shift in his
emphasis from mere cost ascertainment to cost reduction to reduce cost of
production. Thus, cost reduction is the main managerial mantra as once quoted
by well-known strategist Michael.E.Porter in his landmark book “Competitive
Strategy”. There are number of strategic cost management techniques available
like Supply Chain Management (SCM) , Business Process Re-engineering
(Value Re-engineering), Total Productive Maintenance to reduce cost. Of these
Supply Chain Management is prominent tool to reduce cost. In this backdrop
the present paper aims to highlight the conceptual framework of SCM, Modus
Operandi and its relevance for corporate world in the new millennium.

Supply Chain Management has become a very powerful technique as it

increases the responsiveness to the changing business conditions and enhances
the competitiveness of the organization. In today’s intense competition, and
increasingly global economy, to survive and grow, organization must enhance
their market responsiveness and become cost competitive. The supply Chain
framework is a method of breaking down the linked set of value creating
activities from basic raw material/component supplier to the supply of the end
product to customer/consumer.

A supply chain is a business process that links manufacturers, retailers,

customers and suppliers in the form of a chain to, develop and deliver products
as a single virtual organization of pooled skills and resources. Supply chain
management is process of synchronizing the flow of physical goods and
associated information from the production line of low level component
suppliers to the end consumer, resulting in the provision of early notice of
demand fluctuations and synchronization of business processes among all the
co-operating organizations in this supply chain.

1
Supply chain

The three primary elements of any supply chain are suppliers, producers and
customers. Also they may encompass retailers and distributors along with
service and support functions [8]. There are many definitions for supply chain
that are in use today. The APICS dictionary definition is, “The Processes from
the initial raw materials to the ultimate consumption of the finished products
linking across supplier-user companies” “The functions inside and outside a
company that enable the value chain to make products and provide services to
the customer”

Characteristics of world-class supply chains

The organizations that are part of a world class supply chain display an array of
distinguishing characteristics as compared to the traditional organizations. Some
of these characteristics include:

· Developing relationships, which deliver results that produce solutions for its
customers,

· Providing products and services that often exceed customer requirements,

· Giving Quality and safety the highest priority,

· Responding efficiently to sudden changes in market requirements,

· Earning a return on investment which contributes to the success of all

members of the supply chain, and

· Remaining the leader of the industry irrespective of time.

2
 1.2 Methodology of Supply Chain Management:

With the notion that the supply chain is an extended enterprise, and with a prior
knowledge of enterprise engineering concepts and supply chain management
techniques, a transformation methodology is presented.

There are two types of data in my research paper.

 Primary Data is worthwhile to say that remarkable research or publication

on this issue has not been found. So, information & knowledge, used in
this study, has been collected from text book. It is worthwhile to say that
remarkable research or publication on this issue has not been found. So,
information & knowledge, used in this study, has been collected from text
book.

 Secondary Data I have collected my secondary data mostly from different

websites and from different magazines.

3
 1.3 Limitation:

I had very limited time to do this survey. I had also faced lots of problem to
make it properly & finally I finished my research on SCM.It makes me satisfied
because I have finished it properly & submit it on time.

4
 1.4 Scope in Supply Chain Management:

Making the research success relevant knowledge and information were

collected from two sources business-ebooks and books.google from text books
and from different journal. It is worthwhile to say that remarkable research or
publication on this issue has not been found. So, information & knowledge,
used in this study, has been collected from text book, internet source. It is
worthwhile to say that remarkable research or publication on this issue has not
been found. So, information & knowledge, used in this study, has been collected
from text book.

Moreover, the researcher feels the durable use of logistic supply chain
management knowledge to afford to educational institution through seminars
and workshops.

2.1Definition:

5
Definitions from well-respected references have varied during the past decade.
For example, Supply Chain Yearbook 2000 described SCM as, “A chain of
processes that facilitates business activities between trading partners, from the
purchase of raw goods and materials for manufacturing to delivery of a finished
product to an end user.” APICS-The Performance Advantage, offered this
definition in January 1999: “The global network used to deliver products and
services from raw materials to end customers through an engineered flow of
information, physical distribution and cash.”

This is a little change from the 1997 definition, Logistics Management offered,
describing SCM as, “The delivery of enhanced customer and economic value
through synchronized management of the flow of physical goods and associated
information from sourcing to consumption.” The definition evolution continues
as European Logistics Association, in 1995 suggested SCM was, “The
organization, planning, control and execution of the goods flow from
development and purchasing through production and distribution to the final
customer in order to satisfy the requirements of the market at minimum cost and
minimum capital use.”

One of the first to pinpoint an accurate description of SCM, International

Journal of Logistics Management, in 1990, called it, “An integrative philosophy
to manage the total flow of a distribution channel from the supplier to the
ultimate user.”

Several themes appear consistent among most definitions of SCM:

o The scope extends from sources of supply to final customers

o In addition to products and services, information and financial flows are

included

o The objective is to satisfy customer demand at the lowest possible cost

o A global and integrative approach is needed to manage the process

Cost Reduction & SCM

6
There are number of cost reduction techniques available for management to
reduce cost which ranges from Man Power Reduction, Strict supervision,
compromise with quality, Overtime work etc . But cost reduction at the cost of
quality is mere waste strategy. SCM aims at cost reduction without affecting
quality. SCM strategy is to reduce cost by eliminating all non value added
activities in the flow of goods from Raw material supplier to End consumer.
The Objective of SCM is to increase the competitive advantage of the channel
as a whole. The means to accomplish this objective is through creating customer
value superior to the competitor’s value offering and, thus, to enhance customer
satisfaction, either through improving efficiency (lower cost) or effectiveness
(added values at the same cost).

Decisions in supply chain management

Decisions for supply chain management can be classified into two broad
categories – strategic and operational. As the term implies, strategic decisions
are made typically over a longer time horizon. These are closely linked to the
corporate strategy and guide supply chain policies from a design perspective.
On the other hand, operational decisions are short term, and focus on activities
over a day-today basis. The effort in these types of decisions is to effectively
and efficiently manage the product flow in the ” strategically” planned supply
chain.

Four major decision areas on supply chain management are:

(1) Location

(2) Production

(3) Inventory

(4) Transportation (distribution)

And there are both strategic and operational elements in each of these decision
areas.

Location decisions: The geographic placement of production facilities,

stocking points, and sourcing points is the natural first step in creating a supply

7
chain. The location of facilities involves a commitment of resources to a long-
term plan. Once the size, number, and location of these are determined, so are
the possible paths by which the product flows through to the final customer.
Although location decisions are primarily strategic, they also have implications
on an operational level.

Production decisions: The strategic decisions include what product to produce,

and which plant to produce them in, allocation of suppliers to plants, plants to
Distribution Channel’s(DC), and DC’s to customers markets. These decisions
have a big impact on the revenues, costs and customers service level of the firm.
These decisions include the construction of the master production schedules,
scheduling production on machines, and equipment maintenance. Other
considerations include workload balancing, and quality control measures at a
production facility.

Inventory decisions: These refer to means by which inventories are managed.

Inventories exist at every stage of the supply chain as either raw material, semi-
finished or finished goods. They can also be in process between Locations.
Their primary purpose to buffer against any uncertainty that might exist in the
supply chain. Since holding of inventories can cost anywhere between 20 to 40
percent of their value, their efficient management is critical in supply chain
operations. It is strategic in the sense that top management sets goals.

Transport decisions: The mode choice aspect of these decisions is the more
strategic ones. These are closely linked to the inventory decisions, since the best
choice of mode is often found by trading-off the cost of using the particular
mode of transport with the indirect cost of inventory associated with that mode.
Customer service levels and geographic location play vital roles in such
decisions. Since transportation is more than 30 percent of the logistics costs,
operating efficiently makes good economic sense. Shipment sizes (consolidated
bulk shipments versus Lot-for-Lot), routing and scheduling of equipment are
key in effective management of the firm’s transport strategy.

Why Supply Chain

The importance and need of SCM will increase in the future. Customers will
demand faster, timelier delivery of orders. Manufacturing will expect greater
knowledge of order requirements to better plan its operations and procurement

8
processes. Similar expectations apply to external entities. This need for
increased coordination among customers, suppliers and service providers
dictates greater visibility and collaboration throughout the supply chain.

Dynamic business environment characterized with Time-based competition,

Synchronization with other corporate functions, Service customized to specific
markets and customers, Increased consolidation of suppliers and service
providers, Further privatization and deregulation, Continued emphasis on
outsourcing, Development of performance measures encompassing supply chain
partners, Increased collaboration between supply chain partners, and Electronic
commerce to enable communications throughout the supply chain will increase
the need of supply chain.

Evolution of Supply Chain Management:

Span of Responsibility

Earlier: The components of SCM traditionally were viewed as “functional silos”

and typically included outbound transport-station (customer delivery); field
warehousing and finished goods inventory management.

Present: Today’s SCM executive generally has a much broader range of

responsibilities. that the majority of these executives have responsibility for
transportation, ware-housing, inventory management , customer service ,
purchasing / sourcing, demand planning, production planning/scheduling and
international logistics.

Organizational Position:

Earlier: SCM traditionally was viewed as a cost center, adding little or no

tangible value to bottom line results. Individuals responsible for SCM were
typically at the manager level, reporting to directors or vice presidents
responsible for operations, marketing or other functional areas.

Present: SCM executives are now well positioned. Executives in charge of

marketing / sales, manufacturing and other departments are now generally peers
rather than reporting officials. In recent survey it is observed that In U.S.
companies, 52 percent of SCM executives report to an Executive Vice President
or COO/CEO. In Asia, this percentage was slightly lower (48 percent); in
Europe this percentage was only 31 percent.

9
Education and Training

Earlier: Historically, relatively few universities offered SCM education. In

these institutions, the academicians who taught SCM coursework were usually
housed within a larger department, e.g., Operations or Marketing. Some schools
offered continuing education and seminars in SCM, but these forums generally
focused on a specific aspect of SCM, such as carrier negotiations, inventory
management techniques, warehousing and material handling systems and
international trade

Present: Today, there are numerous, well-recognized universities–in the U.S.

and abroad–offering degrees at all levels in the field of SCM. A recent CLM
listing identified nearly 50 institutions with SCM-related curricula. Continuing
education seminars and workshops with SCM themes abound.

Contributions to Corporate Performance

Earlier: Historically viewed as a cost center, SCM contributions at the

corporate level were judged to be minimal. Since reporting systems focused on
managing operational-level activities, any strategic value associated with SCM
was difficult to quantify.

Present: Leading-edge manufacturers report SCM costs between 4 percent and

5 percent of sales; compared to the industry average of 7 percent to 10 percent
Successful SCM can improve delivery performance by 25%, reduce inventory
levels by as much as one-half and enhance overall productivity by at least 15
percent.

To conclude, In this dynamic market place, the equations are kept changing
very fast with the leaders of yesterday being displaced by the fast-paced and
agile new entrants. Intense competition, demanding customers, shrinking
product life cycles, rapid advances in technology- all these factors are fast
changing the competitive dynamics in global environment. This volatile
business environment is making it harder than ever for marketers compete
effectively. The traditional approaches are too slow to keep pace with the
evolving global complexity. These developments are putting pressure on
business community to look at the each and every components of business like
procurement, logistics, marketing etc. Effective linking of functions of these
processes puts companies in strategic position. Every link in SCM can add up to
a competitive advantage. Time was when companies looked at their supply
chains as a means of focusing on their own core competencies, of leveraging
those of vendors, of lowering their costs, and of becoming more responsive to
customers. Those goals won’t be swept away by the supply chain in the new

10
millennium. But they will be superseded by a singly super-objective: competing
on the basis of how well companies’ manage their supply-chain.

Is the design and management of seamless, value added process across

organizational boundaries to meet the real needs of the end customer?

Supply Chain Management is the process of planning, implementing and

controlling the operations of the supply chain with the purpose of satisfying the
customer's requirement as efficiently as possible. Supply Chain spans
all movement and storage of raw materials, Work-in-process, inventory and
finished goods from the point of origin to the point of consumption.

2.2 Importance:
Supply chain management is essential to company success and customer
satisfaction. Did you know that SCM also plays a critical role in society? It's
absolutely true. SCM knowledge and capabilities can be used to support
medical missions, conduct disaster relief operations, and handle other types of

11
emergencies. SCM also plays a role in cultural evolution and helps improve our
quality of life. Whether dealing with day-to-day product flows or dealing with
an unexpected natural disaster, supply chain experts roll up their sleeves and get
busy. They diagnose problems, creatively work around disruptions, and figure
out how to move essential products to people in need as efficiently as possible.

 The importance of Supply Chain Management thus is in :

 Reduced inventories along the chain

 Better information sharing among the partners
 Planning being done in consultation rather than in isolation

The benefits too would be reflected in terms of :

 Lower costs

 Better customer service

 Efficient manufacturing

 Better trust among the partners leading to win-win

Process integration and other efforts result in improved quality as higher profit
margins shall get reflected in creation of better facilities for manufacturing,
product design research, and enhanced customer service.

Fig: Diagram of the importance of SCM

2.3 Application:

12
Market Knowledge

Overlapping members since it will be very hard for these individual to not be
influenced by what has been discussed as part of developing a PSA for a
competitor of the customer. Business ethics dictates that it is important to reach
agreement on what data to share & there is a fine line between using process
knowledge gained versus using competitive marketing knowledge gained from
a customer. It is important, as our clients rely on us to bring a global perspective
to the advice we give them, as well as a complete understanding of local issues.
Living up to these expectations without placing unfair demands on our people
means striking a balance. How can we help our people develop both an
international outlook and local knowledge? How do we make ourselves
available to our clients where they need our advice? Furthermore, what role
should we play in developing legislation, policies and regulatory frameworks?

Pay Order

A check or draft that must be paid via endorsement and delivery. Pay-to-order
instruments are negotiable checks or drafts that are generally written as "pay to
X or order." These instruments stand in contrast to pay-to-bearer instruments,
which do not require endorsement. The Uniform Commercial Code outlines the
rules pertaining to pay-to-order instruments. It specifies that ownership of this
type of check can be transferred only via endorsement – someone who accepts a
check must endorse it before transferring it somewhere else.

L/C

13
A L/C guarantees payment of a specified sum in a specified currency, provided
the seller meets precisely-defined conditions and submits the prescribed
documents within a fixed timeframe. These documents almost always include a
clean bill of lading or air waybill, commercial invoice, and certificate of origin.
To establish a L/C in favor of the seller or exporter (called the beneficiary) the
buyer (called the applicant or account party) either pays the specified sum (plus
service charges) up front to the issuing bank, or negotiates credit. L/Cs are
formal trade instruments and are used usually where the seller is unwilling to
extend credit to the buyer. In effect, a L/C substitutes the creditworthiness of a
bank for the creditworthiness of the buyer. Thus, the international banking
system acts as an intermediary between far flung exporters and importers.
However, the banking system does not take on any responsibility for the quality
of goods, genuineness of documents, or any other provision in the contract of
sale. Since the unambiguity of the terminology used in writing a L/C is of vital
importance, the International Chamber Of Commerce (ICC) has suggested
specific terms (called Inco terms) that are now almost universally accepted and
used. Unlike a bill of exchange, a L/C is a non-negotiable instrument but may
be transferable with the consent of the applicant.

14
15
Advertise
Advertising is bringing a product (or service) to the attention of potential and
current customers. Advertising is focused on one particular product or service.
Thus, an advertising plan for one product might be very different than that for
another product. Advertising is typically done with signs, brochures,
commercials, direct mailings or e-mail messages, personal contact, etc.

Market Strategy
Global markets are expanding beyond borders and re-defining the way demand
and supplies are managed. Global companies are driven by markets across
continents. In order to keep the cost of manufacturing down, they are forced to
keep looking to set up production centers where cost of raw materials and labor
is cheap. Sourcing of raw materials and vendors to supply the right quality,
quantity and at right price calls for dynamic procurement strategy spanning
across countries.

 Shipment
Shipment with Routing Guide includes dynamic route determination.
Whereas normally, shipment proposals are only created in TP/VS scheduling,
dynamic route determination enables shipment proposals to be created already
when the sales order is created. When a sales order is entered in the SAP system
(SAP ECC), the process is triggered and generates appropriate freight units and
shipment proposals on a separate screen before the ATP check is performed.
The person responsible can then choose the appropriate shipment proposal
according to certain business needs. Accepting a shipment proposal
automatically creates shipments. Dynamic route determination is a business
process scenario that is offered as part of SAP SCM TP/VS 5.0.

Quality
General: Measure of excellence or state of being free from defects,
deficiencies, and significant variations. ISO 8402-1986 standard defines quality
as "the totality of features and characteristics of a product or service that bears
its ability to satisfy stated or implied needs."

16
Manufacturing: Strict and consistent adherence to measurable and verifiable
standards to achieve uniformity of output that satisfies specific customer or user
requirements.

Objective: Measurable and verifiable aspect of a thing or phenomenon,

expressed in numbers or quantities, such as lightness or heaviness, thickness or
thinness, softness or hardness.

Subjective: Attribute, characteristic, or property of a thing or phenomenon that

can be observed and interpreted, and may be approximated (quantified) but
cannot be measured, such as beauty, feel, flavor, taste.
Quality Export

To send or transport goods abroad out of a customs territory; to sever them from
the mass of things belonging to one country with the intention of uniting them
to the mass of things belonging to a foreign country And quality export means
to send or transport standard quality goods abroad out of a customs territory to
sever them.

Price

Revenue management strategies have been applied successfully in industries

such as airlines, hotels, and rental cars. In recent years, a number of
manufactures, retailers, and carriers have applied a variation of these techniques
to improve supply chain performance. In this case, the firm integrates pricing
and inventory (or available capacity) to influence market demand and improve
the bottom line.

As the consideration give As the consideration given in exchange for transfer of

ownership, price forms the essential basis of commercial transactions. It may be
fixed by a contract (such as sale of goods contract), left to be determined by an
agreed upon formula at a future date, or discovered or negotiated during the
course of dealings between the parties involved. In commerce, it boils down to
what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the
competition is allowing to be charged. With product, promotion, and place of
marketing mix, it is one of the business variables over which a firm can exercise
some degree of control. n in exchange for transfer of ownership, price forms the
essential basis of commercial transactions. It may be fixed by a contract (such
as sale of goods contract), left to be determined by an agreed upon formula at a
future date, or discovered or negotiated during the course of dealings between

17
the parties involved. In commerce, it boils down to what (1) a buyer is willing
to pay, (2) a seller is willing to accept, and (3) the competition is allowing to be
charged. With product, promotion, and place of marketing mix, it is one of the
business variables over which a firm can exercise some degree of control.

Market Planning

A company that is market oriented first figures out who its customers will be,
and then build their products or services around that market group. Marketing
theory has it that a specific customer uses a product or service because he or she
has a particular need, and that by using that product or service their needs will
be fulfilled. The planning process that yields decisions in how a business unit can best
compete in the markets it elects to serve. The strategic plan is based upon the totality of the
marketing process.

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 Sales
Sales forecasts are a crucial part of the supply chain. Indeed, all
calculations made rely on this information.

The sales forecast cycle: Sales forecasts are calculated based on the
archives available to the company (orders, sales), which are “cleaned” of
exceptional events by the forecaster.

  Depending on the I.T. system, the forecaster benefits from “expert”

help (choice of the best adapted statistic formula in accordance with
product profile) in order to most wisely forecast consumption in
accordance the Sales Plan of Action (the effects of special offers,
seasonable ness, launchings, the arrival of competitors, lifting products).

  The forecaster is henceforth helped by the sales network so as to

improve the accuracy of the sales forecasts.
Collaborating has enabled to take account of “the market intelligence” of
sales networks via the Internet: archives are much better qualified and
19
 cleaned, and allow you to record the forecasts of the sales points closest
to the final customer.
with

When the Marketing Action Plan corrections have been integrated,

and the extrapolation statistics have been carried out, the cycle continues
with the definitive validation of the Sales Management before integrating
the information into a different type of calculation: resources plan
(Industrial and Sales Plan).

What are the advantages to the company?

  Working with a common frame of reference (“single number”)

  Organizing a transversal cycle allowing optimum resources (meetings,
consensus meetings, S&OP)
  Anticipating supplies thanks to I.T. tools, which would otherwise be
beyond the bounds of possibility
  Increase the level of customer satisfaction
  Reducing the incertitude of one’s vision of the future market, thanks to
an automatic calculation of forecast quality.

 Manufacturing Control Planning

The supply chain has been defined as ‘the network of organizations that
are involved, through upstream and downstream linkages, in the different
processes and activities that produce value in the form of products and services
in the hands of the ultimate customer’

SCM is a concept that has originated and flourished in the manufacturing

industry. The first signs of SCM were perceptible in the JIT delivery system as
part of the Toyota Production System. This system aimed to regulate supplies to
the Toyota motor factory just in the right - small - amount, just on the right
time. The main goal was to decrease inventory drastically, and to regulate the
suppliers’ interaction with the production line more effectively. After its
emergence in the Japanese automotive industry as part of a production system,
the conceptual evolution of SCM has resulted in an autonomous status of the
concept in
Industrial management theory, and a distinct subject of scientific research, as
discussed in literature on SCM .SCM approaches, other management concepts
have been influencing the conceptual evolution towards the present
understanding of SCM.

20
Market Plan
The planning process that yields decisions in how a business unit can best
compete in the markets it elects to serve. The strategic plan is based upon the
totality of the marketing process.

Marketing process can be realized by the marketing mix in step 4. The last step
in the process is the marketing controlling. In most organizations, "strategic
planning" is an annual process, typically covering just the year ahead.
Occasionally, a few organizations may look at a practical plan which stretches
three or more years ahead.

To be most effective, the plan has to be formalized, usually in written form, as a

formal "marketing plan." The essence of the process is that it moves from the
general to the specific, from the vision to the mission to the goals to the
corporate objectives of the organization, then down to the individual action
plans for each part of the marketing program. It is also an interactive process, so
that the draft output of each stage is checked to see what impact it has on the
earlier stages, and is amended.

How to Manufacturing

Strict and consistent adherence to measurable and verifiable standards to

achieve uniformity of output that satisfies specific customer or user
requirements.

Manufacturing is the use of machines, tools and labor to produce goods for use

or sale. The term may refer to a range of human activity, from handicraft to
high, but is most commonly applied to industrial production, in which raw
materials are transformed into finished goods on a large scale. Such finished
goods may be used for manufacturing other, more complex products, such as
aircraft, household appliances or automobiles, or sold to wholesalers, who in
turn sell them to retailers, who then sell them to end users – the "consumers"

21
 3. Documents

3.1Company Profile:-

FACTORY PROFILE That I Visit-

22
(Machine) (Including DIPLOMAT GROUP is a 100% export oriented leading
company of ready-made garments since 1984. Our Factory is:

AZIZ FASHIONS (PVT) LTD.

DIPLOMAT FASHION WEAR (PVT) LTD.

DIPLOMAT GARMENTS (PVT) LTD.

The production and export capability of these three factories are 45,500 Doze to
around 50,000 Doze per year.. We believe in best quantity, shortest time.
Customer’s satisfaction and commitments to our buyer. We welcome buyer as
our partner.

1) MANAGEMENT :

AZIZ AHMED
KHAN CHAIRMAN
Aziz Fashions (Pvt.) Ltd.

MANAGING
DIRECTOR
Diplomat Garments (Pvt.)
Ltd.
Diplomat Fashion Wear
(Pvt.) Ltd.

MD. GIAS UDDIN CHAIRMAN

Diplomat Garments (Pvt.)
Ltd.
Diplomat Garments (Pvt.)
Ltd..

23
 MANAGING
DIRECTOR
Aziz Fashions (Pvt.) Ltd.

MD. AMIR HUMZA DIRECTOR

Aziz Fashions (Pvt.) Ltd.
Diplomat Garments (Pvt.)
Ltd.
Diplomat Fashion Wear
(Pvt.) Ltd.

S.M. JALAL UDDIN GENERAL MANAGER

Diplomat Garments (Pvt.)
( BAKIBILLAH) Ltd.
Diplomat Garments (Pvt.)
Ltd.
Aziz Fashions (Pvt.) Ltd.

( 2 ) BUSINESS ADDRESS:

a) AZIZ FASHIONS (PVT) LTD.

b) DIPLOMAT FASHION WEAR (PVT) LTD.

Add: 148/1/E,Shah Ali Bagh,Mirpur -1,Dhaka-1216,

Bangladesh.

Tel: 0088-02-9010559,8012000

24
Fax: 0088-02-9010250

E-mail: hoffice@diplomat-bd.com,

zico_director@diplomat-bd.com

humayun_hoffice@diplomat-bd.com

islam_hoffice@diplomat-bd.com

dfashion@diplomat-bd.com

URL: www.diplomat-bd.com

c) DIPLOMAT GARMENTS (PVT) LTD.

Add: 12, Shashi Bhuson Chattergee Lane,Gandaria,Dhaka-1204,

Bangladesh.

Tel: 0088-02-7441809,

Fax: 0088-02-7441157

E-mail: hoffice@diplomat-bd.com,

zico_director@diplomat-bd.com

humayun_hoffice@diplomat-bd.com

islam_hoffice@diplomat-bd.com

dfashion@diplomat-bd.com

URL: www.diplomat-bd.com

( 3 ) PRODUCTION ITEMS:

1. Jacket
2. Ski Jacket
3. Denim Cargo Pant
4. Denim Shorts
5. 6-In-1 Parka
6. Bib Pant
7. Denim Pant
8. Trouser
9. Vest

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 10.Coverall
11.Overall
12.Wind Shirt/ Breaker
13.Rain Coat
14.Seam Sealed Jacket
15.Fleece Jacket
16.Snow Suit
17.Swim Trunk
18.Track Suit
19.Jogging Suit
20.Sports Wear.

(4) Our Buyers:

Name of Buyers Country

THE BERNE APPEREL COMPANY USA

OUTDOOR GEAR USA

SPORTS USA USA

MAHCO.INC USA

K.MART CORPORATION USA

WAL-MART USA

W.W. GROUP (MERCURY) USA

CAREL S.A FRANCE

FRANCE SALES KNIT WEAR FRANCE

MIM SAS, ZONE SINA FRANCE

FORE CAST SARL FRANCE

BANEX LTD UK

LEA SPORTS WEAR LTD. UK

LAZY JACKS YACHTWEAR LTD. UK

HEBESTREIT FASHION INT. GERMANY

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 LOSAN SL. SPAIN

AMERELLA OF CANADA CANADA

MAURICE SPORTING GOODS CANADA

HOLLAND HOUSE FASHION B.V THE NETHERLANDS

JUVITEX N.V BELGIUM

HEINRICH OBERMEYER GMBH AND CO. KG GERMANY

(5) Employees : 950 ( Total Number of Employers) ( Including 3 Factory )

(6) Machineries : 500 (Total Number of 3 Factory )
(7) Production Capability : 50,000 Doz / Year ( Including 3 Factory )

3.2- Practice & Procedure of SCM

SCM, Procurement plays a critical role in implementing and managing this
process. They need to implement new practices and adopt new perceptions for
handling the interface between buyers and suppliers in terms of integrating
internal and external production and product development activities. For the
individual procurement officer this may often be a painful process of unlearning
old practices and adapting to new realities. So far, limited attention has been
given to the internal organization challenges within the buying firm in the light
of changing sourcing practices. Some studies have recently discussed the
changing role of the procurement department in the organization with respect to
its increased participation in cross departmental teams and corresponding
involvement in decision areas outside the traditional realm of procurement
(Pearson, 1999; Hult et al, 2000). However, their findings are not directly
related to the conspicuous following of a particular strategy for managing and

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integrating the supply function. Moreover, they focus on an important but
particular aspect of organizational consequence (increased participation in
cross-departmental teams), rather than relating these to broader issues of
changing demands to the procurement department. A more coherent theoretical
understanding of the emerging issues and challenges to the procurement
department has yet to be developed. We move towards this from the SCM
literature and other related fields (relationship marketing and organizational
theory). This is a formal case study approach used for matching patterns of
observations to expected statements. Compared to analytical induction on the
other hand, it does not only test theory but develops it as well. In conclusion,
our intention is to modify the already developed theory and to see how it applies
to new and varied situations, as differentiated from those situations to which it
was originally applied. The issue we are exploring here concerns the changing
job descriptions and practices of procurement managers in firms transforming
their production and outsourcing practices along the lines of SCM, as compared
to procurement managers in other organizations.

Fig: practice in supply-chain management:

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Fig: Procedure in supply-chain management:

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 4. Conclusion:

The Garments sector of Bangladesh has entered in the quota free market after
2005. From that time this sector is in a very disadvantageous situation due to
long lead time which has negative impact on export growth. Through analysis
of empirical data it has been found that import dependency is the major
bottleneck and it is the main factor for greater lead time. Just due to import of
fabrics manufacturers are to count shipment time, unloading time, customs
clearance time and transportation time from port to ICD (Inland container
depot) at Kamalapur, Dhaka. Import dependency arises out of the absence of
sufficient backward linkage industry and for this reason a total additional 55-75
days are spent in the import process of fabrics by RMG sector of Bangladesh.
As a result this sector is facing long lead time which is 90 to 130 days on the
average. And this all process of RMG are doing their work like circle like SCM.

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 5. Reference

www.businessdictionary.com/definition/objective.html 

www.business-ebooks.com www.gofrugal.com

www.ebnonline.com PreachIt.org/online-preaching

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6. Appendix

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