...Table of Contents Introduction 2 1. Supply Chain Management of Textile Industry 3 2. Textile Industry and flow of Product and Information 4 3. Up Stream Operation of SCM in Textile Industry 5 3.1 Raw Fiber: 5 3.2 Yarn 6 3.3 Grey Fabric 6 3.4 Finished Fabric 6 4. Demand forecasting in upstream Supply chain management 7 5. Bullwhip effect 8 5.1 Causes of the Bullwhip Effect 9 5.1. a Demand Forecast Updating 9 5.1. b Order Batching 9 5.1. c Price Fluctuation 10 5.1. d Rationing and Shortage Gaming 10 6. Supply chain decisions 11 6.1 Location decisions 11 6.2 Production decisions 11 6.3 Inventory decisions 12 6.4 Transportation decisions 12 7. Vertical Integrated Supply Chain Management in Textile 13 Bibliography 14 Introduction Supply chain management is the term used to describe the management of the flow of materials, information, and funds across the entire supply chain, from suppliers to component producers to final assemblers (or manufacturers) to distribution (wholesalers, warehouses and retailers), and ultimately to the consumer. There are several reasons behind the increased interest in the management of supply chains after the 1990s. Firstly, companies have been moving away from vertical integration, and moving towards specialization, thus having the need to deal with, and rely on, more outside sources. In order to reduce production costs, most textile firms have already outsourced production of their goods...
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...A Study of Apparel Supply Chain Risks Srikanta Routroy* and Arjun Shankar** Today, apparel supply chains are becoming more prone to both controllable and uncontrollable risks. This phenomenon may be attributed to many causes but not limited to less vertical integration, fragmentation of supply chain ownership, short product life cycle, ever-changing customer expectations, increasing level of competition, environmental regulations, rapid technology obsolescence, etc. These risks deteriorate directly the apparel supply chain performance in terms of both efficiency and responsiveness. Therefore, the Apparel Supply Chain (ASC) managers should identify and analyze the risks related to their supply chains so that appropriate mitigation strategies can be developed to enhance the supply chain performance. An attempt is made to study the ASC and identify the related risks in general. This will provide a platform to identify the risks for an apparel supply chain in particular. Introduction A Supply Chain (SC) may be defined as a network of organizations that are involved in a set of linkages, either upstream or downstream, in different processes and activities with the primary aim of providing value to the end customer (Chen et al., 2013). In this context, SC Management (SCM) is the management of material, information and funds through this network of organizations, which includes suppliers, manufacturers, wholesalers, distributors, etc., thereby providing the required value to the...
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...noopurJournal of Fashion Marketing and Management Emerald Article: Postponement and supply chain structure: cases from the textile and apparel industry Hassan Chaudhry, George Hodge Article information: To cite this document: Hassan Chaudhry, George Hodge, (2012),"Postponement and supply chain structure: cases from the textile and apparel industry", Journal of Fashion Marketing and Management, Vol. 16 Iss: 1 pp. 64 - 80 Permanent link to this document: http://dx.doi.org/10.1108/13612021211203032 Downloaded on: 19-12-2012 References: This document contains references to 19 other documents To copy this document: permissions@emeraldinsight.com This document has been downloaded 704 times since 2012. * Users who downloaded this Article also downloaded: * Hassan Chaudhry, George Hodge, (2012),"Postponement and supply chain structure: cases from the textile and apparel industry", Journal of Fashion Marketing and Management, Vol. 16 Iss: 1 pp. 64 - 80 http://dx.doi.org/10.1108/13612021211203032 Hassan Chaudhry, George Hodge, (2012),"Postponement and supply chain structure: cases from the textile and apparel industry", Journal of Fashion Marketing and Management, Vol. 16 Iss: 1 pp. 64 - 80 http://dx.doi.org/10.1108/13612021211203032 Hassan Chaudhry, George Hodge, (2012),"Postponement and supply chain structure: cases from the textile and apparel industry", Journal of Fashion Marketing and Management, Vol. 16 Iss: 1 pp. 64 - 80 http://dx.doi.org/10.1108/13612021211203032 Access...
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...Sustainable Fashion Supply Chain: Lessons from H&M Bin Shen Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China; E-Mail: binshen@dhu.edu.cn; Tel./Fax: +86-216-237-3621 Received: 15 July 2014; in revised form: 15 August 2014 / Accepted: 19 August 2014 / Published: 11 September 2014 Abstract: Sustainability is significantly important for fashion business due to consumers’ increasing awareness of environment. When a fashion company aims to promote sustainability, the main linkage is to develop a sustainable supply chain. This paper contributes to current knowledge of sustainable supply chain in the textile and clothing industry. We first depict the structure of sustainable fashion supply chain including eco-material preparation, sustainable manufacturing, green distribution, green retailing, and ethical consumers based on the extant literature. We study the case of the Swedish fast fashion company, H&M, which has constructed its sustainable supply chain in developing eco-materials, providing safety training, monitoring sustainable manufacturing, reducing carbon emission in distribution, and promoting eco-fashion. Moreover, based on the secondary data and analysis, we learn the lessons of H&M’s sustainable fashion supply chain from the country perspective: (1) the H&M’s sourcing managers may be more likely to select suppliers in the countries with lower degrees of human wellbeing; (2) the H&M’s supply chain manager may set a...
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...TABLE OF CONTENTS 1.0 Introduction to the main the supply chain and its focal firm................... 1.1 The Vision....................................................................................................... 1.2 The Mission..................................................................................................... 1.3 Key Brands...................................................................................................... 1.4 The Flow Chart of the Manufacturing Process................................................. 1.5 Process Description............................................................................................ 2.0 Demand Planning 2.1 Forecasting---------------------------------------------------------------------- 2.2 planning--------------------------------------------------------------------------- 3.0 Order Management/Service Level 3.1 Method----------------------------------------------------------------- 3.2 Order Status Tracking-------------------------------------------------- 3.3 Technology----------------------------------------------------------------------- 3.4 Reverse Logistics--------------------------------------------------------------- 3.5 Managing Third Party Logistics----------------------------------------- 4.0 Sales and Operations Planning 4.1 Structure and Focus------------------------------------------------------------------ 4.2 Product Run Strategy---------------------------------------------------------- ...
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...Society Program with the generous support of THE FUTURE OF FASHION: SUSTAINABILITY THROUGH THE LENS OF THE FASHION INDUSTRY* By: Jennifer Johnson & Gina Wu Companies across all industries are facing the challenges of business sustainability, debating how best to address these risky issues while also embracing their opportunities for competitive advantage. This Teaching Module uses the context of the fashion industry to discuss topics that are shaping the future of all industries. These topics include sustainable resource management, the challenges and opportunities of global growth, workforce management, and the role of ethical consumption in business. The fashion industry offers a compelling case study for exploring business sustainability issues. In the fashion industry, as in many industries, success requires highly developed sourcing, design, manufacturing, and marketing chains. Increasingly, success also means incorporating sustainability in resource and labor management, as firms realize that long-term corporate survival will depend on new ways of doing business. Climate change, resource challenges, new technologies and dramatic shifts in the global economy are already impacting the industry. The nexus of these concerns allows students to explore sustainability challenges while providing a framework for discussing new business models and management techniques for the future. Given its enormous reach and connection to important business topics ranging from climate...
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...Travelling textiles A sustainability roadmap of natural fibre garments May 2009 This report has been prepared by Emer Diviney and Serena Lillywhite at the Brotherhood of Laurence Sustainable Business Unit. Brotherhood of St Laurence 67 Brunswick Street Fitzroy Vic. 3065 ABN 24 603 467 024 Ph: (03) 9483 1183 www.bsl.org.au the HUB of responsible business practice in Australia is a project of St James Ethics Centre © St James Ethics Centre 2 Contents Acknowledgments Summary Introduction Key findings The way forward Recommendations Introduction Brotherhood of St Laurence Gorman Industries Understanding the clothing industry Corporate responsibility and “sustainability” Developing tools for responsible business practice Roadmap methodology How we went about it Who we spoke to Overview of the garment supply chain The clothing industry roadmap Key sustainability issues in the garment sector Case study: Gorman Who is Gorman? The Gorman roadmap: Merino Tee and Forest Dress Unpicking the garment roadmap Design and production management Wool and cotton cultivation Processing raw materials and yarn manufacturing Knitting and weaving Fabric processing Cut make and trim Retailing and wholesaling Consumer use Textile waste and disposal Freight Towards sustainable garments Garment industry drivers Sources of information the HUB of responsible business practice in Australia is a project of St James Ethics Centre ...
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...Azuma School of Management Heriot-Watt University UK E-mail: nobukaza@aol.com N.Azuma@hw.ac.uk Fax: +44-(0) 131-451-3498 Abstract Quick Response (QR) has long been perceived as the essential survival strategy of the textile and apparel (T-A) manufacturers in the developed economies against offshore competition. However, the regionalization of global economies and active governmental investment in the T-A industry in the offshore countries has allowed the offshore QR to become increasingly feasible. This changing facet of QR may spell out more lucrative opportunities for Japanese "apparel firms", which have predominantly in-house creative and marketing functions, to widen the scope and the scale of their fashion business operations, since the economic upgrading in the Pacific Rim will create a huge consumer market that shares similar fashion trends as in the Japanese market. However, the apparel firms' production shift offshore has, on the other hand, threatened the existence of the domestic SME apparel manufacturers that have traditionally served their apparel firms customers, now that QR is no longer the sustainable competitive advantage of domestic manufacturing. The purpose of this paper is to explore the levels of QR implementation, identifying the potential pitfalls and drawbacks of the current QR initiatives in the Japanese apparel sector, and hence discuss the optimum QR strategy or the way ahead that will fit into the structure of the Japanese fashion industry. Questionnaires...
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...STUDY MIDTERM PAPER Alpargatas S.A. Baxter Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. In order to have an effective supply chain management a company would beat competitors to market with functional and ground-breaking products. Globalization, outsourcing and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities. Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy. Alpargatas are a sort of shoe that is worn by rural workers. Alpargatas was founded in 1883 by Juan Echegarary and Robert Fraser that symbolized the European heritage that is part of Argentina’s culture. In 1907, the company opened a subsidiary in San Pablo, Brazil. The company expanded as Argentina continued to grow with more immigrants and economic expansion. Alpargatas served as a textile operation that found uses for its scraps to produce floor clothes, grid clothes, and flannel. It had textile mills for the fabrication of canvas and a cotton...
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...industrial environment, especially consumer industries such as textiles and clothing (Lowson, King & Hunter 1999). One of the impacts is that the contemporary North American and European textile and apparel industries suffer immense competition from foreign producers (Yan & Fiorito 2002). As early as the mid-1980s, imports were estimated to account for close to 50% of consumption (Lowson, King & Hunter 1999). As most imported textiles are produced with very low labor expense, huge amounts of inexpensive products can be supplied in the domestic market. Considering this situation, competitiveness in cost and quality continue to be key issues for textile manufacturers. In order to significantly reduce time and cost in the supply chain, the industry needed to become more focused on consumers by developing a supply chain management process that would be demand driven and production that would be synchronized to replenish product at the consumer's pull rate (Lovejoy 2001). Today, consumers desire to personalize the style, fit and color of the clothes they buy, and require high-quality customized products at low prices with faster delivery (Lee & Chen 1999). New manufacturing technologies such as 3D body scanners, CAD/CAM systems, and digital textile printers have played a key role in increasing the effectiveness, flexibility, agility, and precision of production. Garment Industry Information Technology Upgrades Garment...
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...NATIONAL MANUFACTURING COMPETITIVENESS COUNCIL Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making Final Report March, 2009 Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making DISCLAIMER CRISIL Risk and Infrastructure Solutions Limited (CRIS), a subsidiary of CRISIL Limited, has taken due care and caution in preparation of this Report. This Report is based on the information obtained by CRIS from sources, which it considers reliable. CRIS does not guarantee the accuracy, adequacy or completeness of any information contained in this Report and is not responsible for any errors or omissions, or for the results obtained from the use of such information. This Report should be used in its entirety only and shall not be reproduced in any form without prior permission from CRIS. CRIS and any of its directors, representatives or employees do not accept any liability for any direct, consequential or perceived loss arising from the use of this Report or its contents. CRIS specifically states that it has no financial liability whatsoever to the users of this Report. Final Report Enhancing Competitiveness of Indian Manufacturing Industry: Assistance in Policy Making TABLE OF CONTENTS LIST OF FIGURES...................................................................................................................................i LIST OF ABBREVIATIONS..........................................
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...companies were selected purposively to ensure the best possible scenario of lean practices in Bangladesh. The focus of this study is to investigate the improvement of manufacturing performance through lean practice in the Bangladeshi garment industry. The findings indicate that the selected companies have adopted a wide variety of lean tools and techniques and gained many performance improvements. Findings also identified the business challenges that drive the companies to practice lean as well as the areas where changes have been made. It concludes with suggestions for further work. Introduction Today’s global supply chains are, in effect, highly complex networks. They are increasingly vulnerable to disruption which can have significant impact on profitability and shareholder value. Recent research at Cranfield School of Management has highlighted where the sources of risk in supply chains might lie and how that risk might be mitigated and managed by the application of ‘Six Sigma’ philosophies and procedures. [pic] As Supply Chain networks increase in complexity as a result of market volatility, outsourcing, globalization and single point sourcing, so too has the risk of disruption. Networks are becoming more vulnerable as supply chains become longer and leaner. Cost-reduction and efficiency are now key business goals and, as a result, networks become increasingly vulnerable to events that previously may have caused only...
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...Downloaded By: [Schmelich, Volker] At: 10:58 11 March 2010 Focus THEME COMPETITIVESTRATEGY FOR ELECTRONIC COMMERCE In many respects, Korean economy has been coordinated by the visible hand of the government. The world economy is becoming a borderless one, which directly affects the Korean economy driving it into an open economy. The rising cost of production factors, wage rates, interest rates, and land costs stalls economic growth. Both internal and external economic environment casts doubt over the prospects of the Korean economy. Both public and private sectors are looking for ways to maintain their competitive edge by improving economic efficiency, and one of those efforts is the use of IT. They are making an utmost effort to build the information-communication infrastructure, and promoting EC to explore new business opportunities. Various efforts are being made to facilitate the diffusion of the EC in Korea. The diffusion of proprietary EC within a conglomerate may be made quickly with little trouble. The IOS or EC within a conglomerate is highly likely to be a closed one, which is not unusual among Korean conglomerates. This may result in a situation that goes against global technological future: an open EC system. Korean corporates have recently devoted a vast amount of effort to business process reengineering using IT to improve efficiency. In contrasts, SMEs lack appropriate IT skills requirrd for such innovative movements. This may result...
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...Shortening Lead-times To Create An Agile Supply Chain For Esprit Abstract Leaded by the fashion brands like ZARA and HM, fast fashion has risen to be the theme of current fashion industry, their emergence has a deep, profound impact on conventional apparel industries. Under the pressure of the trend, Esprit is one of the victims of traditional fashion brands. This paper focuses on the current problem that Esprit is faced with, presents three possible solutions which are designing new products following fashion shows, establishing smaller-scale operational mode and using quick response strategy, in order to create an agile supply chain for Esprit by the means of shortening three critical lead times: time-to-market, time-to-serve and time-to-react. 1. Introduction The last decade has witnessed a significant transformation that fast fashion has become a key feature in current fashion industry. Although it was regarded as a niche concept offered by a few winners such as Zara and H&M, fast fashion has now been adopted as a key operation mode by many brands in the fashion market (Baker, 2008), using advanced and more efficient supply chains to be more responsive to changing trends towards customer demand. Hence, Fast fashion brands perform relatively better than other fashion brands in various aspects. (Mattila et al. 2002: 340 – 351) Esprit is a fashion brand owned by Esprit Holding Ltd., manufacturing apparel, accessories, footwear and housewares under the...
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...for managing supply chains. These affective factors and realization then led to the development of tradition SCM systems up to the advanced systems companies apply at present. The evolution of supply chain management occurred during the 1990s; at this time, collaboration between manufacturers and suppliers had been established in order to enhance traditional approaches in supply management functions. At the same time, retailers as well as wholesalers had integrated their logistics operations as well so as to achieve greater competitive advantages ( 2002). In the process, both of these concepts were joined and became a strategic approach to what is now known as supply chain management (SCM). In this chapter, the relation of the apparel industry to SCM is explained. Models, implementation needs as well as the dilemma on the application of SCM systems are also discussed through the citation of various related literatures and studies. Relevance of the Supply Chain to the Apparel Industry The apparel industry goes through a number of business challenges. Due to certain trends like fashion and consumer preferences, companies operating in the industry often encounter the issue on demand uncertainty. In order to address this, apparel businesses utilize the concept of product variety. This technique however, would require certain activities such as production systems, forecasting and inventory management. This then emphasizes the need for the apparel industry to employ innovative...
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