Material Handling and Inventory Planning

SPRING SEMESTER

Final Project
Sustainable Practices of Sapphire Textiles Ltd.

SUBMITTED TO:
Miss Ambreen Jabeen

SUBMITTED BY:
Syed M. Ahmad Hasan 70135451
Anees Abdulrehman 70139041
Abdulrehman 70136761

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 Table of Contents
1. Introduction
2. Vision
3. Mission
4. Understanding of Sustainability
5. Implementation of Sustainable Practices
6. Utilized Technologies in Sustainability
7. Integration of Sustainable Practices into the Supply Chain
8. Measure and tracking of environmental impact on material handling and
inventory management
9. Challenges for Sustainability
10. Updated Knowledge of Trends and Advancements in Sustainable
Inventory Management and Material Handling
11. Compliance with Labor laws and Environmental Protection laws
12. Conclusion
13. Recommendation

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Introduction:
A high-street brand introduced by one of the largest names in the textile industry, Sapphire is
celebrated for combining 100% pure fabric with unprecedented design aesthetic to create
designer wear at an affordable price. It has a range of clothing such as daily wear, party wear,
formal wear, silk tunics, scarves and unstitched fabric. The overarching theme of the collections
is providing affordable designer clothes to the masses.

This meld of exquisite design and high class fabric has resulted in the breakthrough of this one of
a kind retail brand. Sapphire’s commitment to quality fabric over the years has made it a
household name, synonymous with excellence.

Vision:
To be one of the premier textile companies recognized for leadership in technology, flexibility,
responsiveness, and quality.

Mission:
Our mission is to be recognized as a premier supplier to the markets we serve by providing
quality yarns, fabric, and other textile products to satisfy the needs of our customers. Our mission
will be accomplished through excellence in customer service, sales, and manufacturing
supported by teamwork of al associates. We will continue our tradition of honesty, fairness, and
integrity in our relationship with our customers, associates, shareholder, community, and
stakeholders.

Understanding of Sustainability:
Sustainability is about meeting the needs of the present without compromising the ability of
future generations to meet their own needs. It's a concept that encompasses environmental,
economic, and social dimensions. Sustainability is about finding ways to live and operate that
maintain a balance between environmental health, economic prosperity, and social well-being,
both now and for generations to come. It's a holistic approach that recognizes the relation of
human society and the natural world.

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Implementation of Sustainable Practices:
Sapphire is redefining its goals, vision and approach to business with an unequivocal emphasis
on responsibility in building a resilient world. For this reason, they are setting sustainability in
Sapphire as a strategic imperative by taking decisive action in renewable energy, emissions
reduction, recycling and circularity, water conservation, plantation drives, and organic and
regenerative agriculture. By getting the data from Sapphire’s website, we get to know about that
Sapphire has sourced 18,500,000,000 gms renewable energy till 2021, has planted 1,050,000,000
trees till 2021, and recycled 65,000,000 plastic bottles to fabric in 2021.

Utilized Technologies in Sustainability:

The technologies Sapphire has utilized to improve sustainability in inventory management and
material handling are as follows:

1. Mitigate Carbon Emissions:

Sapphire has been mitigating carbon emissions through energy efficiency and conservation by
investing in green technology and energy-efficient machinery. Such as advanced looms, dyeing
machines, and finishing equipment designed with energy-saving features have helped in
minimizing carbon emissions.

2. Sources of Renewable Energy:

Sapphire is changing themselves to green environment by implementing renewable energy
sources such as solar panels, wind turbines, or biomass boilers that have helped offset carbon
emissions associated with electricity consumption. Sapphire Textile Ltd. have installed these
systems in rural areas. For utilizing renewable energy, Subsidiaries of Sapphire Textile Ltd like
“Sapphire Wind Power Company Limited” and “Tricon Boston Consulting Corporation Limited”
built Pakistan’s first wind farms that have installed capacity of 200MW that is supplied to the
national grid, providing renewable energy to 7,000 households in Sindh.

3. Smart Building:
Sapphire has also implemented smart building such as automated HVAC (Heating, Ventilation,
and Air Conditioning) systems, installed motion sensors, and building management systems that

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can optimize energy usage by adjusting temperature, ventilation, and lighting based on real-time
use and environmental conditions.

4. Reusing Water for Washing:

Sapphire has different departments working altogether to apply the sustainable goals prescribed
by UN. Washing department of Sapphire requires lots of water consumption in their washing
process. For this, there is also the mechanism of storage of water like they have the storage
capacity of underground water tank about 100000 liters. They reuse this water for approx. 1
month and after 1 month they change water.

Integration of Sustainable Practices into the Supply Chain:

1. Producing their Own Raw Material:
Sapphire is rare in its products as it manufactures the essential raw material on its own. Sapphire
has their own fields from which they get their initial raw materials and then they make their raw
material that is used in different departments of Sapphire. Such as it has its own cotton fields,
spinning, weaving and dying units. It is a good sign of producing raw materials on their own as it
is promoting sustainability from their first step of getting raw materials. This is called their
vertical integration where they outsource such materials which are easily accessible and costs
less than producing materials on their own. They only produce such raw materials which are
expensive.

2. Transport System for Labor:

Sapphire have also helped in optimizing transportation routes and modes to minimize carbon
emissions and reduce environmental impact. They are using such vehicles that produce low
smoke and to cater this they have planted almost 10,000 trees, acting directly as carbon sinks for
emissions.

3. Reusable Packaging:
They have also minimized packaging materials and are using eco-friendly alternatives whenever
possible. They are making such design packaging that can be used for recyclability or reusability,

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and have implemented strategies to reduce packaging waste throughout the supply chain from
procurement to distribution.

4. Strategic Integration:
Vertical integration in Sapphire business strategy is not just its competitive strength but also a
distinctive approach in textile manufacturing sector. As we have discussed earlier, Sapphire
carries its own operations from cultivating cotton to manufacturing yarn to make the finished
product.

Measure and tracking of environmental impact on material

handling and inventory management:
To measure and track the environmental impact of inventory management and material handling
practices, Sapphire Textile Ltd. is implementing various strategies:

1. Life Cycle Assessments (LCA):

Sapphire has been conducting Life Cycle Assessments (LCA) for different inventory
management and material handling practices that can help quantify their environmental impacts
across their entire life cycle, from raw material extraction to disposal. LCAs factors includes
such as energy consumption, greenhouse gas emissions, water usage, and waste materials.

2. Material Flow Analysis:

Moreover, Sapphire has been conducting material flow analysis that can help them in visualizing
of the movement of materials throughout the supply chain and helps in identifying inefficiencies
for optimization. This analysis can highlight areas where the excessive transportation,
overstocking, and inefficient handling practices are contributing in environmental impacts.

3. Environmental Performance Indicators (EPIs):

Sapphire can establish and do monitoring of specific environmental performance indicators
related to material handling and inventory management by keeping track progress and identify
areas for continuous improvement. These indicators may include metrics such as energy
consumption per unit of production, waste generation rates, and emissions intensity.

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4. Data Collection and Monitoring Systems:
Implementing data collection and monitoring systems allows Sapphire to track key
environmental metrics in real-time or on a periodic basis. This may involve deploying sensors,
meters, or software systems to collect data on energy usage, water consumption, waste
generation, and other relevant parameters.

Challenges for Sustainability:

Implementing sustainable inventory management and material handling practices at Sapphire
Textiles Ltd. have encountered several challenges:

1. Cost Considerations:
Sustainable practices require upfront investment in technology, training, and infrastructure. It has
made Sapphire to balance the cost of implementing sustainability initiatives with the potential
long-term benefits that can be challenging for them.

2. Limited Awareness and Expertise:

Sapphire has been slowly and gradually shifting to sustainable practices but the lack of
awareness and expertise about sustainable inventory management and material handling
practices have pose a barrier to implementation. Employees requires training and education to
understand the importance of sustainability and how to integrate it into their daily operations
effectively. Because the most of the employees of Sapphire are labors so they need to be
educated before getting into any sustainable practice.

3. Technological Barriers:
Today, the sustainable practices that the world leading countries have stopped using are new in
Pakistan so implementing sustainable inventory management and material handling practices at
Sapphire requires new technologies, such as inventory tracking systems, automation, and energy-
efficient equipment. Integration of these technologies into existing systems and processes can be
complex and may require specialized expertise. They need to be fully updated with the
international standards and follow the UN instructions to tackle the technological barriers.

To overcome these challenges, Sapphire Textiles Ltd. have implemented several strategies:
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1. Investment in Sustainability:
Sapphire has allocated resources and budgets for sustainability initiatives, recognizing the long-
term benefits that they can bring in terms of cost savings, risk reduction, and keep the brand
reputation.

2. Technology Adoption:
Sapphire has been investing in technologies that enable sustainable inventory management and
material handling, such as inventory tracking systems, RFID technology, and energy-efficient
equipment. They are partnering with technology providers and consultants to overcome
technological barriers and ensure successful implementation throughout their entire supply chain.

3. Investment in Charity:
Sapphire believes in taking from society and giving back something in return. Sapphire has
contributed to the wellbeing of Pakistani social society by granting aids and equipment to the
health sector, financing education sector and developing power sector of rural areas. Sapphire
established Abdullah Foundation and renovated the pediatric department of Jinnah Hospital.
Sapphire has been a donor of The Kidney Center KTC and hosts Deluxe Dialysis unit with 8
dialysis machines in operation. Moreover, Sapphire provides aid to different health sector dept.
including Shaukat Khanum and Nighabaan Civil Hospital in Karachi.

Furthermore, Sapphire also contributes to maternal health of women by giving donations to Lady
Dufferin Hospital, Karachi and has developed 4 sapphire schools to provide low cost and
accessible education for destitute.

4. Continuous Improvement:
Sapphire has been implementing a process of continuous improvement to monitor, evaluate, and
refine sustainability initiatives over time. They are setting measurable targets and benchmarks to
track progress and identify areas for further improvement in sustainability.

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Updated Knowledge of Trends and Advancements in Sustainable
Inventory Management and Material Handling:
To stay updated on the latest trends and advancements in sustainable inventory management and
material handling practices, Sapphire has employed several strategies:

1. Industry Conferences and Events:

Sapphire has been attending industry-specific conferences, trade shows, and seminars that
focuses on sustainability and supply chain management. These events often feature
presentations, workshops, and networking opportunities where companies can learn about
emerging trends and best practices.

2. Partnerships and Collaborations:

Sapphire has been establishing partnerships and collaborations with research institutions,
universities, and technology providers that are working on sustainable inventory management
and material handling solutions. These partnerships can facilitate knowledge sharing, research
collaboration, and access to cutting-edge technologies for both parties.

3. Supplier Engagement:
Sapphire continuously engaging with suppliers and supply chain partners to stay informed about
sustainability initiatives and advancements in the industry. They are collaborating with suppliers
to implement sustainable practices and to share knowledge and best practices across the supply
chain.

Compliance with Labor laws and Environmental Protection laws:

Sapphire are strictly following labor and environmental friendly laws, some of them are below:

Labor Laws:
1. Minimum Wage Laws:
As proposed in the June 2023 Budget of Pakistan, Sapphire complies with the minimum wages
law act of Govt. of Pakistan, and pays Rs.32000/month minimum wage to each labor.

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2. Labor standard Laws:
Sapphire are following that a maximum of 14 calendar days of annual vacation leave and
maternity leave between 90-180 days is for every labor working in the premises of Sapphire.
Working hours are also capped at six hours a day during the month of Ramadan.

3. Health and Safety Laws:

Sapphire also provides health benefits to the workers. They have registered their employees’
health insurances in alliance with insurance companies. The labor and employee wages are never
delayed from first of every month.

4. Gender Equality:
Sapphire has 50% of its workforce of female workers where females are there for different tasks
like sewing as women know much more about sewing and are much more creative than men.
Also, there are harassment and female security rules to keep safe women in the premises of
Sapphire. Any woman faces issue regarding harassment or any other so there’s a committee for
them to solve their issue and took strict decision against the culprit. Thus ensuring gender
equality and aligning itself with the global sustainability work.

5. Subsidized Food:
Sapphire take care of their employees and they are very much concern about their health issues.
For this, Sapphire has been giving subsidized food for their employees so that they can get food
from Sapphire and didn’t want to go outside. Also, they are providing food in less amount
instead of market rate.

Environmental Laws:
1. Waste Management Laws:
The laws that regulate the handling of materials, storage, transportation, and disposal of
hazardous and non-hazardous waste generated by industrial activities are strictly followed in
Sapphire including regulations for recycling and waste minimization.

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2. Water and Air Quality Regulation Laws:
The regulations that establish emission limits and controls for air pollutants emitted from
industrial processes, including regulations for volatile organic compounds (VOCs), and
hazardous air pollutants are strictly followed to make the Sapphire environment fresh and clean.
The regulations that govern the discharge of pollutants into water bodies and establish standards
for wastewater treatment and effluent discharge.

3. Actions against Noise Pollution:

Sapphire has their own parking space for the vehicles of their employees and also they have
space for their stakeholders. By keeping their own parking space, this can help in reducing noise
pollution and make the environment free from noise and smoke caused from vehicles.

Sapphire Textiles Ltd. would need to comply with applicable labor laws and environmental
protection laws in each jurisdiction where they operate to ensure legal compliance and
responsible business practices. It's essential for the company to stay informed about any updates
or changes to these laws and regulations to maintain compliance and mitigate risks. Consulting
with legal and environmental experts familiar with the relevant laws and regulations in each
jurisdiction is advisable for specific guidance.

Conclusion:
Sapphire Textiles Ltd. stands as a shining example of a company that has embraced
sustainability across its operations. From its commitment to producing high-quality designer
wear at affordable prices to its dedication to integrating sustainable practices throughout its
supply chain, Sapphire has demonstrated its leadership in responsible business practices.

By implementing renewable energy sources, investing in green technology, and adopting smart
building solutions, Sapphire has significantly reduced its environmental footprint while
maintaining operational efficiency. Moreover, the company's focus on producing its own raw
materials, optimizing transportation routes, and minimizing packaging waste showcases its
holistic approach to sustainability.

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However, despite its commendable efforts, Sapphire faces challenges in terms of cost
considerations, limited awareness and expertise among its workforce, and technological barriers.
Yet, the company has taken proactive steps to overcome these challenges by investing in
sustainability, adopting technology, and engaging in continuous improvement.

Recommendations:
To further enhance its sustainability initiatives, Sapphire Textiles Ltd. should consider the
following recommendations:

1. Continuous Education and Training:

Sapphire needs to provide regular training and education programs for employees at all levels to
increase awareness and understanding of sustainable practices and their importance. This will
empower employees to actively contribute to the company's sustainability goals.

2. Innovation and Research:

Sapphire’s R&D department needs to continue to keep investing in research and development to
identify and implement innovative solutions for sustainable inventory management and material
handling practices. This may involve exploring new technologies, materials, and processes that
can further reduce environmental impact and improve efficiency.

3. Transparency and Reporting:

Sapphire must enhance transparency in reporting environmental performance and progress
towards sustainability goals. This will build trust with stakeholders and demonstrate Sapphire's
commitment to accountability and responsibility in business practices.

4. Community Engagement:
Sapphire needs to develop more engagement with local communities through initiatives that
contribute to social development and environmental conservation. This may include supporting
community projects, promoting education and healthcare, and fostering environmental awareness
and conservation efforts. This can affect in improving overall Pakistan’s image all over the
world.

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By implementing these recommendations, Sapphire Textiles Ltd. can further strengthen its
position as a leader in sustainable textile manufacturing and contribute to building a more
resilient and responsible future for generations to come.

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