internship report on supply chain effectiveness of apparel manufacturing company in bangladesh ...
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Internship Report OnSupply Chain Effectiveness of Apparel Manufacturing Company in Bangladesh A Study on Saba Attires LtdTRANSCRIPT
Chapter-1
Introduction
1
1.1 Introduction
In today’s world of globalization many apparel manufacturers are building strong supply
chains to gain advantage over their competitors by offering the best value to their customers.
The supply chain management has become very critical to manage risk, dynamism, and
complexities of global sourcing. A totally integrated supply chain is required for the company
to get gain the maximum benefits. The objectives of the supply chain and the performance
measurements need to be understood in order to build the most effective supply chain.
Performance measurements provide an approach to identify the success and potential of supply
management strategies.
One major aspect of the supply chain management is to select the right sources of supply in the
global business environment that can support corporate strategy. Contrary to the conventional
adversarial relationships, effective supply chain management in the new competition suggests
seeking close relationships in the long term with less number of partners.
Considering the rapidly changing market conditions and customer seeking the best value, long-
term relationships with the supply chain partners became very critical in the apparel industry.
Therefore the apparel manufacturers are looking for the supply chain partners who can provide
the best cost in the fastest way. Such a relationship is regarded as partnership since it includes
activities such as information sharing, joint product design, or sharing storage spaces.
The purpose of this study is to learn about supply chain effectiveness in an apparel
manufacturing company.
1.2 Origin of the Report
As a compulsory part of Internship program, this particular report is being prepared by the
author on the proposed topic “Supply Chain Effectiveness of an Apparel Manufacturing
Company in Bangladesh – A Study on Saba Attires Ltd”. The intention was to give an
opportunity to the students to gain some real world experience by working in a practical
environment. The internship supervisor was Sabrina Sultana, Lecturer in Marketing, Faculty of
Business.
2
1.3 Objective of the Report
The Broad Objective of this report is:
To measure the effectiveness of supply chain of Saba Attires Ltd in different supply chain area.
Specific objectives are:
1. To identify the factors related to supply chain effectiveness
2. To know about role of merchandiser in an apparel manufacturing company
3. To provide some recommendations on the basis of findings.
1.4 Methodology
1.4.1 Population, Sampling and Sampling Unit
Population size is 135. Among 135 employees and suppliers, 40 persons are randomly chosen
for interview. Sampling unit consists of 2 senior merchandisers, 10 Assistant merchandisers,
13 trainee merchandisers, 3 production executives, 2 commercial executives, 6 quality
controllers and 4 suppliers.
1.4.2 Sample design
This descriptive study covers the sample of 40 respondents. The pool of respondents consists
of Senior Merchandisers, Assistant Merchandisers, Trainee Merchandisers, Quality
Controllers, Commercial Officers and Suppliers of SABA Attires Ltd. Nonprobability
convenience sampling technique is used to select the sample. Personal interviewing method is
used to get response from respondents. To record the responses of sample respondents, a
structured questioner is used.
1.4.3 Data gathering
In order to prepare the report both primary and secondary data are needed. Primary data is
collected by the questionnaires. Here direct communication is essential for gathering required
data. Secondary data is collected from the internet, books and journal.
3
1.4.4 Data analysis
Likert’s Summative Rating method of analysis was used in the analysis these research
questions.
The Assigned weight to the various alternatives is Strongly Agree =5, Agree =4, Neutral =3,
Disagree =2, strongly Disagree =1
Mean rating was used for the variables .To get the at the mean of each table this formula was
used
Mean = X
Where f =frequency of respondent
x=weight assigned to each alternatives
Formula for calculation as used in the study is by multiplication of number of respondents
under each option with the weight assigned to the option and summing up to divide by the total
number of respondents in order to give the mean rating.
The decision rule is that the mean ( X ) of the total response falls 4.5 to 5, it means ‘Highly
Effective, 3.5 to below 4.5 means ‘Moderately Effective’, 2.5 to below 3.5 means ‘Marginally
Effective’, 2 to below 2.5 means ‘Ineffective’, 1 to below 2 point means ‘Highly Ineffective’
1.5 Limitations of the Report
The major limitation for this report were
1. Respondents might not give the accurate information.
2. Unfortunately due to the company’s limitations (business secrecy and confidential-
ity), it was not possible to acquire sufficient information.
3. Lack of experience of researcher.
4. Time was also a limitation. Gathering information during working was a tough job.
4
Chapter-2
Literature Review
5
2.1 Supply Chain
'A supply chain is a network of facilities that procure raw materials, transform them into
intermediate goods and then final products, and deliver the products to customers through a
distribution system' (Lee & Billington, 1995). The basic objective of supply chain is to
“optimize performance of the chain to add as much value as possible for the least cost
possible”. In other words, it aims to link all the supply chain agents to jointly cooperate within
the firm as a way to maximize productivity in the supply chain and deliver the most benefits to
all related parties (Finch 2006).
2.2 Supply Chain Effectiveness
Supply chain effectiveness is defined as an external standard “of how well an organization is
meeting the demands of the various groups and organizations that are concerned with
its activities through its supply chain” (Pfeffer and Salancik 1978) which approximately is a
construct “for doing the right things” or having validity of outcome (Hines et al. 2000).
A conceptualization of effectiveness as use value is interesting to highlight that how well as
well as demands in the above definition is vague. Håkansson and Prenkert (2004) seem to
refer use value to evaluation of the network’s utilization of resources. In resource
dependence perspective is effectiveness seen as an independent measure for evaluating
organizations. Meeting demands of various evaluators means that conflicting as well as
compatible demands are prevalent. Pfeffer and Salancik (2003) foresee conflict when one
stakeholder’s demand constraints other stakeholder’s demand, which is the case for the supply
chain actors. Conflict but also co-operation gives “lessons learnt” in one exchange
process that is leveraged in other exchange processes. Suppliers are effective if they deliver
what is asked for, no matter if they are bound to fill their warehouses to manage, i.e. if they
manage the task inefficiently. In supply chain management effectiveness is equalized with
supply chains’ flexibility and agility to customer demand. Ineffective supply chains are
loosely integrated with poor management of existing interdependencies.
Even though different researchers give different categories of the processes involved in a
supply chain, these processes are somewhat functionally independent and quite similar in that
sense. 6
Strader et al. (1999) referred to the underlying business processes as mechanisms and included
these processes in a complete supply chain which directly and indirectly impact on
effectiveness of supply chain:
(1) Forecasting demand based on information such as market research,
(2) Placing and receiving customer orders,
(3) Managing inventory,
(4) Planning production,
(5) Communicating between supply chain partners and
(6) Managing distribution (shipping),
Forecasting is the basis for all strategic and planning decisions in a supply chain (Chopra and
Meindl, 2003) i.e.: production: scheduling, inventory, aggregate planning, and marketing: sales
force allocation, promotions, new production introduction, and finance: plant/equipment
investment, budgetary planning.
Customer order entry method determines the way and extent to which customer specifications
are converted into information exchanged along the supply chain. The customer order path is
the path that an order traverses is another important measure whereby the time spent in
different channels can be determined. By analyzing the customer order path, non-value adding
activities can be identified so that suitable steps can be taken to eliminate them.
Inventory encompasses all the raw materials, work in process, and finished goods within a
supply chain. Changing inventory policies can dramatically alter the supply chain’s efficiency
& effectiveness (Chopra and Meindl, 2003). If effectiveness is a strategic competitive priority,
a firm can locate larger amounts of inventory closer to customers (Chopra and Meindl, 2003).
There are three basic decisions to make regarding the creation and holding of inventory:
Cycle Inventory is the amount of inventory needed to satisfy demand for the product in the
period between purchases of the product. Safety Inventory is held as a buffer against
uncertainty. If demand forecasting could be done with perfect accuracy, then the only
inventory that would be needed would be cycle inventory. Seasonal Inventory is inventory that
is built up in anticipation of predictable increases in demand that occur at certain times of the
year (Chopra and Meindl, 2003).
After the order is planned and goods sourced the next step in to make/assemble products. This
is the activity carried out by organizations that own production sites, and their performance has 7
a major impact on product cost, quality, speed of delivery and delivery reliability, and
flexibility (Mapes et al., 1997; Slack et al., 1995). As it is quite an important part of the supply
chain, production needs to be measured and continuously improved. Suitable metrics for the
production level are as follows. Order lead-time, the total order cycle time, called order to
delivery cycle time, refers to the time elapsed in between the receipt of customer order until the
delivery of finished goods to the customer. The reduction in order cycle time leads to reduction
in supply chain response time, and as such is an important performance measure and source of
competitive advantage (Christopher, 1992)—it directly interacts with customer service in
determining competitiveness. Range of product and services: According to Mapes et al. (1997),
a plant that manufactures a broad product range is likely to introduce new products more
slowly than plants with a narrow product range. Plants that can manufacture a wide range of
products are likely to perform less well in the areas of value added per employee, speed and
delivery reliability. This clearly suggests that product range affects supply chain performance.
Effectiveness of scheduling techniques is another important measure of supply chain
effectiveness. Scheduling refers to the time or date on or by which activities are to be
undertaken. Such fixing determines the manner in which resources will flow in an operating
system, the effectiveness of which has an important impact on production and thus supply
chain performance. For example, scheduling techniques such as JIT, MRP and ERP have
implications on purchasing, throughput time and batch size. In case of the supply chain, since
scheduling depends heavily on customer demands and supplier performance, the scheduling
tools should be viewed in that context (Little et al., 1995).
Communication with the supply link is another important measure of supply chain
effectiveness. Traditionally supplier performance measures were based on price variation
rejects on receipt and on time delivery. For many years, the selection of suppliers and product
choice were mainly based on price competition with less attention afforded to other criteria like
quality, reliability, etc. More recently, the whole approach to evaluating suppliers has
undergone drastic change.
Managing distribution (shipping) directly impacts on effectiveness on supply chain. Measures
for delivery performance evaluation According to Stewart (1995), an increase in delivery
performance is possible through a reduction in lead-time attributes. Another important aspect
of delivery performance is on-time delivery. On-time delivery reflects whether perfect delivery
has taken place or otherwise and is also a measure of customer service level. A similar concept, 8
on time order fill, was used by Christopher (1992), describing it as a combination of delivery
reliability and order completeness. Another aspect of delivery is the percentage of finished
goods in transit, which if high signifies low inventory turns, leading to unnecessary increases in
tied up capital. Various factors that can influence deli-very speed include vehicle speed, driver
reliability, frequency of delivery, and location of depots. An increase in efficiency in these
areas can lead to a decrease in the inventory levels (Novich, 1990). Number of faultless notes
invoiced: An invoice shows the delivery date, time and condition under which goods were
received. By comparing these with the previously made agreement, it can be determined
whether perfect delivery has taken place or not, and areas of discrepancy can be identified so
that improvements can be made.
2.3 Supply chain practices textile and apparel industries
Adoption of Supply chain practices in textile and garments industries has steadily increased
since the 1980s. A number of definitions are proposed and the concept is discussed from many
perspectives. However Cousins et al. (2006); Sachan and Datta (2005); Storey et al. (2006)
provided excellent review on supply chain management literature on apparel industry. These
papers define the concept, principals, nature, and development of supply chain and indicate
that there is an intense research being conducted around the world in this field they critically
assessed developments in the theory and practice of supply management.
A process is a structured and measured set of activities designed to produce a specific output
for a particular customer or market (Davenport, 1993). It is a group of activities within
sequential or parallel relationships that span over a period of time. Integrating nature of these
processes across functional and organizational barriers that suit the need of supply chain design
and improvement so well that from the very beginning, supply chain study are generally
believed to be process-based (Yang, 2000, p.456).
9
Lamber and Cooper (2000) propose a supply chain framework that consists of three closely
interrelated elements: the supply chain network structure, the supply chain business processes
and supply chain management. The supply chain structure element tells who the members of a
particular supply chain are, how many tiers are involved in the chain and how many members
are in each tier. A supply chain looks rather more like an uprooted tree than a pipeline, which
suggests that supply chains are very complicated to manage. Within such complex network
structure, the key to successful supply chain is to identify the key processes, which need the
coordination of all the tiers in one supply chain, and mange these processes in an integrated
fashion.
10
Chapter-3
Company Overview
11
3.1 Background and History of SABA Attires Ltd
Saba Attires Ltd started its journey in Bangladesh in the year 17 August, 2002. At early years
Saba Attires Ltd had to pass very difficult time. It still exists only for its honesty, integrity,
moral scruples and for its business ethics. And for that reason now this organization is in a suc-
cessful and stable situation in the subsequent years. Saba Attires Ltd never misses to meet fu-
ture challenges. This organization always tries to give its best to achieve professional compe-
tence and reliability. It always tries to give something better than its customer’s expectation.
For this reason it’s not only treated as a trusted supplier of readymade garments but also as a
caring partner toward all its buyers and customers. Now meeting the extraordinary requirement
of the customer become a custom for this organization and also a matter of pride for this orga-
nization. This organization is also adapting some important policies like getting official ap-
proval of ISO Quality Standard practices, ensuring total compliance of various Code of Con-
duct requirements of prestigious buyers across the world, prioritizing the need for creation of
ideal work conditions for the workers and ensuring proper health care & safety for them. This
thing has awarded Saba Attires Ltd a respectable position in the top of the RMG manufacturers
in Bangladesh.
3.2 Mission
“To maximize profit while creating an environment in which we can provide the best value and
the best services to our customers, while developing ourselves to our maximum potential in a
pleasant, clean and professional atmosphere”
12
3.3 Organization Profile
Name SABA Attires Ltd
Year of Establishment 17 August, 2002
Activities Readymade garments manufacturer
Location SABA ATTIRES LTD B-468,469BSCIC I/A Enayetnagar, Fatullah,Narayangonj.Corporate Office16, S.M Maleh Road, TanbazarNarayanganj.
Area Total Flore Area 25000 square feet
Products Basic T-shirt, Polo shirt, Pajama set, Nightgown, Bermuda shorts, Tank Top, Vest etc.
Production Capacity 35000 dozens (per month)
Main Buyers Euroski , S.Coop(Spain) , Coop Denmark A/S (Denmark), Cotton On Clothing Pty Ltd(Australia), Cedrox KB (Sweden), Rap SRL (Italy), Roamer ( U.K), Etc.
.
Managing Director Mr. ShamimAhmed
13
3.4 Quality Policy of Saba Attires Ltd
Saba Attires Ltd dedicated to meet and fulfill customer requirement in garments making and
also try to satisfy their employees. This group increasingly reducing its rejection and rework
rate in-process and final garments in order to ensure product quality and delivery time as per
buyer requirement and increase profitability. Saba Attires Ltd will ensure sufficient training
and suitable work to increase productivity and skills of the employee. This group always
measures its performance in all areas from time to time and takes measure to continually
improve quality, work environment and employee satisfaction.
Picture: 3.1 Sample Section
Corporate office controls all the units of Saba Attires Ltd which is located in the Narayanganj.
To perform well each unit has its factory management setup from sampling to finishing of the
product. Both environment and occupational health and safety were considered during
designing the buildings. Medical facilities are available in the production facilities. The two
units of Saba Attires Ltd are credited on ISO 9001. These are Saba Attires Ltd garments and
Aboni textiles. Saba Attires Ltd garments are also WRAP certified. An Aboni textile limited of
Saba Attires Ltd is attributed on environmental management system ISO 14001. Saba Attires
Ltd applies ethical principles to all facilities that produce readymade garments for exporting to
14
foreign countries. Its factory operates in a legal and cultural environment. These ethical
principals express the basic requirement of Saba Attires Ltd factories in order to do business
with its foreign customers.
Saba Attires Ltd makes constant efforts to promote best practices and continuous improvement
of ethical issues in all its manufacturing units. For easy understanding of the issues the Saba
Attires Ltd management has posted its contents on both Bangla and English to their notice
board. In addition to all normal machines and equipment, woven division uses the following
machines and equipment to provide various special requirements of customers:-
Arm Hole & Side Seam Fusing Machine
Eyelet Sewing Machine
Pintack Machine
Blind Stitch Machine
Saddle Stitching Machine
CAD (Investronica)
Cintex Needle Search Machine
Picture3.2 Cutting Section
15
The woven division has the capacity of producing about 50,000 pcs of shirts / dresses (Men’s
and Ladies) per month.
The knit division in its composite structure has Knitting, Dyeing, Finishing and Sewing facility
located near Narayanganj. The division is still in its first phase, running with a capacity of:
4 tons per day for Knitting, 7 tons per day for Dyeing & 10 tons per day for Finishing
About 100,000 pcs of 'T' shirts / Tank tops per month
About 200,000 pcs of Polo shirts per month
Knitting, Dyeing, Finishing units are equipped with European best brand machines like Sclavos for Dyeing, Mayer & CIE for Knitting and Santex for Finishing.
Knit division knits dyes and finishes 100% Cotton, CVC, T/C, 100% Polyester, lycra fabrics.
Knitting unit knits all the basic structures including the following:-
Feeder Stripes
Lycra Single Jersey
Lycra Rib
Waffle
Herring Bone etc.
Picture 3.3: Swing Section
16
Saba Attires Ltd has its own embroidery units.
Saba Attires Ltd becomes more competitive by including printing and packaging unit in the
year 2007. This establishment causes cost reduction and smooth execution of the orders.
Saba Attires Ltd washing was established in September 2008 and has started showing its
positive impact on Group's overall business. RMG units of Saba Attires Ltd are no more
dependent on out sourcing of washing of Garments.
Picture: 3.4 Finishing Section
17
3.5 Organizational Organogram
18
Chapter 4
Jobs Performed During Internship
19
4.1 Responsibilities of a merchandiser
Merchandiser need to work in a systematic way to ensure proper delivery of products at due
date. They had to do their work into daily, weekly, monthly and yearly basis. The activities
are-
4.1.1 Daily activities of a merchandiser
Checking mails and faxes. They need to give the reply within the day based on priority.
Checking port status and convey to concern department.
Checking the shipments documents and inform concern department.
Checking daily production status to understand shipment status
Checking shipment schedule and raw materials production status
Follow-up with sample section for different buyers sample
Follow-up with store for fabric and accessories received
Follow-up with the production manager for the production plan
Follow-up with the commercial people L/C,BTB L/C and L/C amendment
Price quotation and delivery confirmation to the buyer
Reporting to marketing and merchandising chief on the daily activities.
Reporting to executive director on the important issue like various meeting, customer
visits compliances and code of conduct
4.1.2Weekly activities of merchandiser
Meeting with the fabrics and accessories supplier
Meeting with the buyer and buying houses
Prepare fabric and accessories requirement list, checking with concern and passing it to
supplier with proper specification.
Prepare purchase order with approval and sign of proper authority.
Issuing pro-forma invoice with the approval and sign of the proper authority.
Providing cost break-down to commercial department during L/C opening
4.1.3 Monthly activities of a merchandiser
Meeting with the production people
Meeting with the quality people and pattern master
20
4.1.4 Yearly activities of a merchandiser
Yearly self-assessment on the performance based on number of buyers handled, shipment
quantity, CM charge negotiated, debit note settled with the supplier
4.2 My activities
As I am working as an assistant merchandiser in Saba Attires Ltd so I am getting the
opportunity to learn lots of things. In this time I have done different merchandising related task
in the company.
4.2.1 Daily activities
Preparing and maintaining fabric swatch card
Scanning documents
Proper filling the documents
Sample follow-up
Taking the photos of samples
Mail communication
Collecting production information
Reporting to concern supervisor
Picture 4.1 Merchandising Section
21
4.2.2 Weekly activities
Meeting with the fabrics and accessories supplier
Making accessories list
Meeting with the buyer and buying houses
4.2.3 Monthly activities
Meeting with the production people
Meeting with the quality people and pattern master
4.3 Problems faced during internship
During my working period one of the major problems faced by me was that sometimes sample
persons were not flexible to work with interns. Another problem was that as Saba Attires Ltd
didn’t provide me any formal briefing or any kind of workshop so it’s become really difficult
for me to understand the work.
22
Chapter 5
Analysis and Findings
23
5.1 Mathematical Interpretation
In analyzing the data collected for this study, Likert’s Summative Rating scale used in section
for easy construction of table analysis and reliability of data. Mean rating will be used to rate
the variables.
Likert’s Summative Rating method of analysis was used in the analysis these research
questions.
The assigned weight to the various alternatives is
Strongly Agree =5
Agree =4
Neutral =3
Disagree =2
Strongly Disagree =1
Mean rating was used for the variables .To get the at the mean of each table this formula was
used
Mean = X
Where f =frequency of respondent
x=weight assigned to each alternatives
Formula for calculation as used in the study is by multiplication of number of respondents
under each option with the weight assigned to the option and summing up to divide by the total
number of respondents in order to give the mean rating.
The decision rule is that the mean ( X ) of the total response falls -
4.5 to 5.0, it means Supply Chain is - ‘Highly Effective’
3.5 to below 4.5, it means Supply Chain is - ‘Moderately Effective’
2.5 to below 3.5, it means Supply Chain is - ‘Marginally Effective’
2 to below 2.5, it means Supply Chain is - ‘Ineffective’
1 to below 2.0, it means Supply Chain is - ‘Highly Ineffective’
Standard Deviation is also calculated in order to verify the reliability of data. Standard
Deviation less than 1 (SD < 1) is considered as reliability of data as difference between
responses is low.
24
5.2 Data Analysis
Forecasting
Table 01: Current forecasting system can predict future demand for apparels accurately.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 14 35 35
4.13 0.82
Agree 19 47.5 82.5
Neutral 5 12.5 95
Disagree 2 5 100
Strongly Disagree 0 0 100
From table 01, it is seen that almost 83% of the respondents strongly agree & agree that current
forecasting system can predict future demand for accurately. Analysis of the above table shows
that the mean rate 4.13 that fells into range 3.5 to below 4.5 which indicates that in term of
demand forecasting system the supply chain of Saba Attires Ltd is moderately effective.
25
Forecasting
Table 02: Current forecasting system can accurately predicts price of raw materials.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 0 0 0
2.47 0.87
Agree 4 10 10
Neutral 17 42.5 52.5
Disagree 13 32.5 85
Strongly Disagree 6 15 100
From table 02, it is found that 10% of the respondents strongly agree and agree that current
forecasting system can accurately predicts price of raw materials. The mean rate is 2.47 which
fells into range between 1 to below 2.5. So in terms of price forecasting supply chain is
ineffective.
26
Order Placement
Table 03: The customer order path is simple
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 11 27.5 27.5
3.93 0.88
Agree 18 45 72.5
Neutral 8 20 92.5
Disagree 3 7.5 100
Strongly Disagree 0 0 100
From above table, it is seen that that over 72% of the respondents strongly agree & agree that
the customer order path is simple and effective. Analysis of the above table shows that the
mean rate is 3.93, which fells into range 3.5 to below 4.5. It indicates the order placing process
is simple which satisfies its customers. Supply chain is moderately effective in terms of order
placement.
27
Order Placement
Table 04: Current Supply Chain System allows the reduction of response time within the
supply chain which makes order placement faster.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 18 45 45
4.28 0.75
Agree 15 37.5 82.5
Neutral 7 17.5 100
Disagree 0 0 100
Strongly Disagree 0 0 100
From the analysis of the above table it is seen that almost 83% of respondents agree or strongly
agree that current supply chain system allows the reduction of response time. In this variable
the mean rate is 4.28 which indicate that the supply chain of SABA Attires Ltd is moderately
effective in terms of order placement.
28
Inventory management
Table 05: Inventory Management Department maintains enough inventories that allow
uninterrupted production.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 14 35 35
4.07 0.85
Agree 17 42.5 77.5
Neutral 7 17.5 95
Disagree 2 5 100
Strongly Disagree 0 0 100
Table 05 implies that almost 78% of respondents agree or strongly agree that Inventory
Management Department maintains enough inventory that allows uninterrupted production..
The mean rate which is 4.07 ensures that in terms Inventory Management supply chain of
SABA Attires Ltd is moderately effective.
29
Inventory management
Table 06: Inventory management department maintains frequent communication with
production department.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 17 42.5 42.5
4.30 0.68
Agree 18 45 87.5
Neutral 5 12.5 100
Disagree 0 0 100
Strongly Disagree 0 0 100
Table 06 shows that almost 88% of respondents agree or strongly agree Inventory management
department maintains frequent communication with production department which makes
supply chain effective. The mean rate which is 4.30 indicates that in term of inventory
management supply chain is moderately effective.
30
Production
Table 07: Order Lead Time of SABA Attires Ltd is good enough compare with the
industry’s Order Lead Time.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 13 32.5 32.5
4.02 0.89
Agree 18 45 77.5
Neutral 6 15 92.5
Disagree 3 7.5 100
Strongly Disagree 0 0 100
From the analysis of the above table it is seen almost 78% of respondents agree or strongly
agree that the company’s Order Lead Time is good enough compare with the industry’s Order
Lead Time.. In this variable the mean rate is 4.02 which indicate that in term of order lead time
the supply chain is moderately effective.
31
Production
Table 08: Company has production facility which ensures sufficient production during
the time of excessive demand.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 22 52.5 52.5
4.50 0.59
Agree 16 42.5 95
Neutral 2 5 100
Disagree 0 0 100
Strongly Disagree 0 0 100
From table, it is seen that that 95% of the respondents strongly agree & agree that Company
has production facility that ensures sufficient production during the time of excessive demand.
Analysis of the above table shows that the mean rate is 4.50, which fells into range 4.5 to
below 5.0. It indicates that the supply chain is highly effective in terms of production facility.
32
Production
Table 09: Production Management Department maintains frequent communication with
Marketing and Distribution Department.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
Mean
( )
Standard
Deviation
(SD)
Strongly Agree 12 30 30
4.02 0.83
Agree 19 47.5 77.5
Neutral 7 17.5 95
Disagree 2 5 100
Strongly Disagree 0 0 100
From table 09, it is seen that almost 78% of the respondents strongly agree & agree that
Production Management Department maintains frequent communication with Marketing and
Distribution Department which impacts positively on supply chain. Analysis of the above table
shows that the mean rate is 4.02 which fells into range 3.5 to below 4.5. It indicates that supply
chain is moderately effective in terms of production management.
33
Communication
Table 10: Current supply chain management makes communication among supply chain
members frequently.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 0 0 0
3.18 0.71
Agree 14 35 35
Neutral 19 47.5 82.5
Disagree 7 17.5 100
Strongly Disagree 0 0 100
Table 10 shows that almost 35% of respondents agree and strongly agree that current supply
chain allows to makes communication among supply chain members faster, easier and more
frequently. The mean rate which is 3.18 indicates that supply chain is marginally effective in
this particular measure.
34
Communication
Table 11: Current supply chain helps in obtaining useful feedback from the suppliers.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 0 0 0
2.18 0.89
Agree 4 10 10
Neutral 8 20 30
Disagree 19 48 78
Strongly Disagree 9 22 100
From table 11, it is found that 10% of the respondents strongly agree & agree that Current
supply chain helps in obtaining useful feedback from the suppliers. The mean rate is 2.18 fells
into ineffective indicator range which is 1 to below 2.5. So in terms of obtaining feedback from
suppliers supply chain is ineffective.
35
Managing distribution
Table 12: Shipments are delivered as per the dateline.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 27 67.5 67.5
4.63 0.58
Agree 11 27.5 95
Neutral 2 5 100
Disagree 0 0 100
Strongly Disagree 0 0 100
From table 12, it is found that 95% of the respondents strongly agree & agree that shipments
are delivered as per the dateline. The mean rate is 4.63 fells into highly effective indicator
range which is 4.5 to below 5. So in terms of delivery the supply chain is highly effective.
36
Managing distribution
Table 13: Distribution system is flexible enough to meet particular customer demands.
Number of
Respondants
(N)
Valid
(%)
Cumulative
(%)
MeanSD
Strongly Agree 8 10 10
3.73 0.89
Agree 17 32.5 42.5
Neutral 11 40 82.5
Disagree 4 17.5 100
Strongly Disagree 0 0 100
From table 13, it is found that almost 43% of the respondents strongly agree & agree that
distribution system is flexible enough to meet particular customer demands. The mean rate is
3.82 fells into effective indicator range which is 3.5 to below 4.5. So in terms of flexibility in
the supply chain is moderately effective.
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5.3 Findings:
1. In term of demand forecasting system the supply chain of Saba Attires Ltd is
moderately effective.
2. In term of price forecasting system for raw material, the supply chain of Saba Attires
Ltd is ineffective.
3. Order placement system of Saba Attires Ltd is moderately effective
4. Supply chain is moderately effective in case inventory management.
5. In term of order lead time the supply chain of Saba Attires Ltd is moderately effective.
6. Supply chain is highly effective in term of production facility.
7. Supply chain is moderately effective in terms of production management.
8. In term of communication with supply chain partners supply chain is marginally
effective.
9. Supply chain of Saba Attires Ltd is ineffective in term of communication with
suppliers.
10. Supply chain is highly effective in term of shipment delivery (Distribution
Management).
11. In term of distribution flexibility supply chain is moderately effective.
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Chapter-6
Recommendations and Conclusion
39
6.1 Recommendations
Saba Attires Ltd should improve their supply chain practice in those areas in which are current
ineffective or marginally effective.
Price forecasting system of Saba Attires Ltd is ineffective. If future price of raw materials
are not accurately predicted, the production cost will be increased as consequence. So,
price forecasting system raw material should be improved.
Communication with supply chain partners, especially with suppliers should be improved
as the study finds that this function is currently in marginally ineffective level. Although
currently distribution schedule is not hampering with this lack of communication but it can
seriously impacts on production and increase production cost.
Communication with suppliers should be more frequent and feedback should take in order
to get production materials timely and in right price.
Supply chain areas which are currently moderately effective level (demand forecasting, order
placement, inventory management and production management, distribution flexibility) should
bring in to highly effective level.
40
6.2 Conclusion
Supply chains are effective when the exchange value of the system fulfills expectations of the
supply chain members. Today’s business environment is more global and competitive than it
has been in the past. The modern business is characterized with shorter product life cycles,
rapid new product introductions, increasingly knowledgeable, well informed, and sophisticated
customers. This forces supply chains to be more effective. The modern supply chains are thus
expected to respond rapidly, effectively, and efficiently to changes in the market place so as to
sustain, and further more create competitive advantage. It is therefore very important to study
the effectiveness of supply chains.
41
7.0 References
Chopra, S.; & Meindl, P. (2003). Supply Chain Management: Strategy, Planning, and Operations, pp. 060-081 Prentice-Hall, Inc., Upper Saddle River, New Jersey.
Christopher, M., 1992. Logistics and Supply Chain Manage-ment. Pitman Publishing, London pp 241 - 244
Cousins, P.D., Lawson, B., Squire, B., 2006. Supply chain management: theory and practice – the emergence of an academic discipline. International Journal of Operations & Production Management, 26 (7), pp.697 – 702.
Davenport, T. H. (1993), Process innovation-Reengineering work through information technology, Harvard Business School Press, Boston, Massachusetts.
Finch, BJ 2006, ‘Operations Now: Profitability, Processes, Performance’, 2nd edn, McGraw-Hill/ Irwin, United States. pp 147-151
Håkansson, Håkan and Frans Prenkert (2004), "Exploring the Exchange Concept in Marketing," in Rethinking Marketing - developing a new understanding of markets, Håkan Håkansson and Alexandra Walnuszewski, Eds. 2004: Wiley.
Hines, P., Richard Lamming, D. Jones, P. Cousins, and N. Rich (2000), "Strategic Performance Measurement systems," in Value stream management - Strategy and excellence in the supply chain. Harlow: Financial Times/Prentice Hall, pp. 77-81
Lee, H. L. and Billington, C., 1995. The Evolution of Supply Chain -Management Models and Practice at Hewlett-Packard. Interfaces 25, 5 September-October, pp. 42-63.
Little, D., Kenworthy, J., Jarvis, P., Porter, K., 1995. Scheduling across the supply chain. Logistics Information Management 8 (1), 42–48Mapes, J., New, C., Szwejczewski, M., 1997. Perfor-mance trade-offs in manufacturing plants. International Journalof Operations & Production Management 17 (10),1020–1033.
Novich, N., 1990. Distribution strategy: Are you thinking small enough? Sloan Management Review 32 (1), 71–77.
Pfeffer, Jeffrey and Gerald R. Salancik (2003), The external control of organizations: a resource dependence perspective. Stanford, Calif.: Stanford Business Books. pp. 11-12
Sachan, A., Datta, S., 2005.Review of supply chain management and logistics research International Journal of Physical Distribution & Logistics Management, 35 (9), pp. 664 – 705.
42
Stewart, G., 1995. Supply chain performance benchmarking study reveals keys to supply chain excellence. Logistics Information Management 8 (2), 38–44.
Strader, T. J., Lin, F. and Shaw, M. J. (1998), "Information infrastructure for electronic virtual organization management", Decision Support Systems, Vol.23, pp. 75-94.
Yang, B. R. (2000), "Supply chain management" in Shaw, M., Blanning, R., Strader, T. and Whinston, A. (Eds.), Handbook on electronic commerce (pp. 446-456), Berlin, Germany: Springer-Verlag.
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8.0 Appendix
Questionnaire
Supply chain Effectiveness of Apparel Manufacturing Company in Bangladesh.
A Study on Saba Attires Ltd.
Respondent Name:
Age:
Occupation:
Designation:
Work place:
Respondents Signature:
On a scale of 1 to 5, please rate the following (circle the response that best applies)
Strongly Disagree 1
Disagree 2
Neutral 3
Agree 4
Strongly Agree 5
Forecasting related questions:
Serial Statements 1 2 3 4 5
01. Current forecasting system can predict future
demand for apparels accurately.
02. Current forecasting system can accurately predicts
price of raw materials.
44
Order Placement related questions:
Serial Statements 1 2 3 4 5
03. The customer order path is simple.
04. Current supply chain management allows the
reduction of response time within the supply chain
which makes order placement faster.
Inventory Management related questions
Seria
l
Statements 1 2 3 4 5
05. Inventory management department maintains
enough inventories that allow uninterrupted
production.
06. Inventory management department maintains
frequent communication with production
department.
Production related questions:
Seria
l
Statements 1 2 3 4 5
07. Order Lead Time of SABA Attires Ltd is good
enough compare with the industry’s Order Lead
Time.
08. Company has production facility which ensures
sufficient production during the time of excessive
demand.
09 Production Management Department maintains
frequent communication with Marketing and
45
Distribution Department.
Communication related questions:
Seria
l
Statements 1 2 3 4 5
10. Current supply chain management makes
communication among supply chain members
frequently.
11. Current supply chain helps in obtaining useful
feedback from the suppliers.
Distribution Management related questions:
Serial Statements 1 2 3 4 5
12. Shipments are delivered as per the dateline.
13. Distribution system is flexible enough to meet
particular customer demands.
46