Marketing Essay 代写:供应链管理

Marketing Essay 代写:供应链管理

Marketing Essay 代写:供应链管理

Marketing Essay 代写:供应链管理

The management of supply chain can be defined as one of the most important strategic aspect of business organization. A supply chain consists of all channels involves directly or indirectly in rewarding customers request. The supply chain consists of three vital components; funds, product and information. It includes not only manufacturers or suppliers but also logistics, warehouse, buyers and customers. The supply chain stages include the customer, retailer, distributor, manufacturers and the suppliers of the raw material. The suitable supply chain design depends on the customer’s need and the role of each player in the above stages. The main purpose of the supply chain management is to satisfy customer needs regarding cost, delivery time and quality and also to generate profits for the firm in the same process.

The process of supply chain management includes new product development, marketing, logistics, finance, suppliers and customer provision, all these process of supply chain management go hand in hand, if one gets delayed the other process is affected. A supply chain is dynamic and includes the continuous flow of information and funds in between the different stages. The objective of the supply chain is to get the most out of overall value generated. The value is the difference between the cost of the end product of the customer and the cost supply chain acquire in satisfying the customer’s request. Supply chain design, its planning and each operation decision plays a very important role in success and breakdown of the organisation. In this project we study the process supply chain management in apparel industry.

The apparel industry in India has reached a towering level of professionalism from catering to customer’s requirements to building strong relationships at both domestic and exports level. “The Indian retail industry is the fifth largest in the world consists of organised and unorganised firms. Indian retail industry is one of the fastest growing industries, despite the fact that this sector was most unorganised, however with the amendment of taste and preference of the consumer the industry is getting recognition. The Indian retail industry is expected to grow from Rs.109000 crore by the year 2010. According to 8th Annual Global Retail Development, India retail industry rose 12% in 2009 in the GDP (Gross Domestic Product) and is expected to reach 22% by 2010. AV Birla Group has a strong occurrence in Indian apparel industry. The brands like Louis Phillipe, Allen Solly, Van Huesen and Peter England are famous for formal merchandise. AV group plans to invest Rs. 8000 crores by this year in retail.” -Adapted by site (Citation on July 5th, 2010

The apparel industry is a business sector which contains the organization manufacturing and selling the garment merchandise. This industry is affected by consumer trends, exchange rates, competition, season, and fashion and product assortment. The apparel industry is most affected by the demand uncertainty which is called the bullwhip affect. The bullwhip effect results surplus of inventory and inadequacy in supply chain. “The bullwhip effect occurs when the demand order variability’s in supply chain are amplified as they moved up the supply chain. Distorted information from one end of supply chain to the other can lead to tremendous inefficiencies.” Says Lee.H, Padmanabhab.V, Whang.S (1997, pp 93-102)

The process of supply chain management is vast and plays a vital role in apparel industry. The process starts from marketing, product development, fabric development, trim development, supplier evaluation, raw materials ordering, costing, manufacturing, logistics, finance, distributing till the end product customer service.

Behaviour of Business

The business association works in a dynamic work environment. It goes through both the internal and external changes in the atmosphere of occupation. It is very important for an organization to understand the environment of the business for its survival. The changes in environment have huge impact on business now a day. The efficiency of both buyer and supplier relationship has a positive relation with the organization for the good supply chain management practices. It is important to understand the needs of thy buyer as in when, where, how and why buyer purchase also the usage and set out the products or services. It is important for the supplier to analyse the buyer’s decision making process and also for the buyer it is important to evaluate the best supplier they want to deal with. The organization should recognize the need for the demand of product and the supply chain process to be followed for the particular industry. The research of suppliers and correct evaluation plays an important part in purchasing process. The city chosen is Bangalore which lays in the south of India as most of the apparel affairs lies in this country. “Bangalore is quietly gaining popularity as the ‘Garment City’, courtesy the booming textile business with an annual turnover of Rs 4,500 crore.”(Citation on June 29th, 2010 ). The organisation undertaken is Madura Garment Pvt. Ltd. The following environmental factors of the business are explained below:

Natural Environment

The society is becoming very conscious about their environment, also government has their rules and regulation abided with the organizations. The organizations are very careful with their hazardous wastages. “India also has an association called: The Clothing Manufacturing Association of India which has the membership base of over 20,000 companies” adapted by site on July 2nd, 2010( There are different subsidies offered by the government known as Special Economic Zone which covers a broad range of Free Trade Zone, Export Processing Zone etc which helps in tax savings, availabilities of subsidies, easy process of licensing which in return helps the company for cost cutting and saving tax. This plays an important role in supply chain management as the objective of the supply chain management process is to cut the cost and gain profit.

Internal Environment

Internal environment assessment helps in identifying the strengths and weakness of the company. Internal environment includes the performance of the company, performance of the company with suppliers or buyers also the performance of the company in comparison to its competitors. It is very important for the company to maintain good public relation with all the channels of supply chain management. It is important for the company to keep a track on the demographics such as the changes in income profile, suppliers turn over, allocation of resources for its short and long term planning. The company chosen is Madura Garment Exports Ltd. Is an owned subsidiary of Aditya Birla Nuvo. It is an incorporated player in the apparel business in manufacturing exports of woven’s, knits and full service provider (FSP) business. The company caters to customer like Marks and Spencer, Tommy Hilfiger, Hagger, FCUK, H&M, Rocha John Rocha, Maine New England and many more.

External Environment

The role of the macro economics plays a vital role in the organisation. Change in the world economy influences on all the organization. For example a drop in dollar rate has affected the garment industries dealing with US buyers, so it has not only affected the buyers but suppliers or manufacturers too. It includes the following:

Technology: A rapid change in technology can draw a wave in industry and can also holds the power of washing the old technologies out. Technology helps in reducing cost of production also helps in reducing lead times. A buyer will go to the supplier who has updated technology and who offers innovative products in best delivery time. Madura Garments have technologies like RFID and SAP, which helps in tracking there raw materials, suppliers, delivery dates or shipments etc. SAP is a very helpful ERP system for the supply chain management of the company.


External Factors: “The Indian Apparel and textile industry employs around 35 million people (it is the 2nd largest employer),. 1/5th of the total exports earning and contributes 4% to the GDP thus making the largest industrial sector of the economy, 14% to industrial production and 16% to India’s export earning. The industry aims to grow its revenue to 85 billion dollars and employment to 12 million dollars by year 2010. It supplies direct employment about 35 million people, making it second largest supplier of employment after agriculture.” adapted by India Exports’ and Business trade zone site (Cited on July 1st, 2010

Fig: Sources of import of Clothing to Europe (Nordas.H 2003 pp 21-22)

The above diagram shows that the market share of Clothing industry globally for India is 7% which is third largest exporter to Europe. This helps India in increasing the foreign revenue, growth rate of GDP, also the employment rate.

Product wise export share is as follows: (figs in Million US $)

Readymade garments


Cotton textiles


Man made textiles


Wool and woollen textiles


Silk textile




(Source: cited on June 29th, 2010)

As we can see with above figures that the readymade garments captures the maximum share in export of textiles. To increase more share in the market as a whole its important to practice good supply chain management applicable for the respective firms.

Fig: The textile revenue generation

Source: cited on June 29th,2010)

Textile revenue generation year wise:


Amount: in Millions US $































(Source: cited on June 29th,2010)

The above table shows the increase of exports in textile industry in India. The growth expected in textiles is 10.4% in year 2010 and 12.05% growth in year 2011. To achieve even better results the company should have good flow of information and smooth practices of supply chain management.

Organisation undertaken

The organization undertaken for this research is Madura Garment Exports Ltd. Madura Garments Exports Ltd is a in every respect owned subsidiary of Aditya Birla Nuvo focal point on garment exports. It is an incorporated player in the apparel business with interest in manufacturing exports of woven’s, knits and full service provider (FSP) business. The company has updated technology manufacturing facilities and caters to customer like Marks and Spencer, Tommy Hilfiger, Hagger, FCUK, H&M, Rocha John Rocha, Maine New England and many more. The association deals with buyer and provide services from product design to product delivery at required destination.

Brands Undertaken

Marks & Spencer: The first brand chosen was M & S, it is known for its quality and offering merchandise to menswear, women wear, children wear and lingerie. “It is one of the UK’s largest retailers; the company also sells food, home wear and also provides financial services. M&S serves around 10 million customers a week in over 375 UK stores. In addition, it has 155 stores managed under franchise and owns 43 stores in 28 territories mostly in Europe, the Middle East and the Far East. M&S is one of the leading companies in supply chain management, with 90% of clothing sourced overseas.” Adapted by cite (citation on June 18th , 2010). “Marks & Spencer places around 25000 pieces order per month with Madura Garments” says Kumar.S 2010, HOD M&S, Madura Garments.

Haggar: the second brand chosen was Haggar, known for its quality, wrinkle free and tab waist merchandise offering menswear, womenwear and children wear. The merchandise in the stores includes a section of wrinkle free products and also tab waist expandable pants. “It is sold in departmental stores for instance J.C Penny, Sears and Kohls and also at further 70 Haggar outlet stores.” Cited at (citation on 24th June, 2010 at Haggar believes in delivering quality to the customer. Each label on the trouser of the Haggar reads “First, they walked the walk, by creating Unbustable Seams, Unbreakable Buttons, Unbreakable Zippers, and Bigger Unrippable Pockets. Then they talked the talk by backing everything with a guarantee that no other clothing company has ever even dream of. Quality of life, guaranteed against defects in workmanship and materials for as long as you live.” Stated by Surender.D 2010. “Haggar places an order of 50,000 pieces per month with Madura Garments Exports Ltd.” Says Stated by Surender.D 2010, HOD Haggar, Madura Garments.

Hennes & Mauritz: the third and the last brand chosen was H&M where quality and fashion go hand in hand. “H&M has grown into truly global fashion company with more than 2,000 storres in 37 markets on 4 continents.” Adapted by site (citation on June 20th ,2010). “H&M places an order of 20,000 pieces per month with Madura Garments” says Raja .K, HOD Hennes & Mauritz, Madura Garments.

Rationale of the study

The apparel industry in India plays a vital role as a business sector. The companies operating within and with this industry would be able to relate business strategies that would help prolong the growth in apparel sector. The supply chain management in this industry would have continuous observations for continuous progress. SCM practices in some of the apparel industries has shown tremendous amount of improvement. The SCM practice in small would contribute to the ongoing progress of the apparel industry. The maturity of the supply chain management in India for apparel industry is high in regard to both domestic and export market. The right and the best practice and the continuous observation are required for the growth of apparel sector in the market share globally.

Research Objectives

To determine the issues of SCM in apparel industry

Sub Objectives

To determine the reasons of smooth flow of supply chain management.

To determine the role of Just in time, quality and enterprise resource planning in supply chain management.

To determine the relationship of channel partners within supply chain management.

To identify the bullwhip effect in apparel industry.

Hau L Lee, V Padmanabhan, and Seungjin Whang, The Bullwhip Effect In Supply Chains, Spring 1997, Volume 38, Issue 3, pp. 93-102

Hildegunn Kyvik Nordas , The Global Textile and Clothing Industry post the Agreement on Textiles and Clothing, 2003, World Trade Organization Geneva, Switzerland

Karthik Raja, Head of Department Hennes & Mauritz, 2010, Madura Garment Exports Ltd.

Miles, M.B. and Huberman, A.M. (1994) Qualitative Data Analysis, 2nd edition, Thousand Oaks, CA stage

Senthil Kumar, Head of Department Marks & Spencer, 2010, Madura Garment Exports Ltd.

Suresh Devendra, Head of Department Marks & Haggar, 2010, Madura Garment Exports Ltd. Citation on June 29th, 2010 Citation on July 5th, 2010 Citation on June 29th, 2010 Citation on July 2nd, 2010 Citation on July 1st, 2010

: Citation on June 29th, 2010)

: Citation on June 29th,2010)

: Citation on June 29th,2010) Citation on June 18th , 2010 Citation on June 20th ,2010 Citation on June 24th


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