ANALYSIS OF SUPPLY CHAIN MANAGEMENT�AT SHUJABAD WEAVING MILL

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1. FINAL YEAR PROJECT PRESENTATION ON ANALYSIS OF SUPPLY CHAIN MANAGEMENT AT SHUJABAD WEAVING MILL

2. Presented by: Maryam Mizari (MTN-21-12679) Registration No . —————————————- Supervised by: Mr. Faheem Safdar Program: Bachelors of Business Administration National College of Business Administration & Economics Multan

3. Objectives Of Internship To  analyse supply chain management at Shujabad Weaving  Mill To understand the company, its products, workplace and its operating procedures To get familiar with the work environment of Shujabad Weaving Mill To achieve personal and professional growth  

4. Contents Introduction Vision Mission Core Values and Shared Values Objectives Company Hierarchy Internship Experience And Activities (Week 1- week 6) SWOT Analysis PESTEL Analysis Conclusion Recommendations

5. Introduction Of Shujabad Weaving Mill Shujabad Group of industries entered into textile business in 1980's. In 1986, the Group setup its own ginning mill named Shujabad Industries (Pvt.) Limited. Over time, the Group integrated into weaving business through Shujabad Weaving. Shujabad weaving mill is one of the premiere manufactures of cotton and textiles in Pakistan with wide product range and quality products that distinguishes it from the competition. It operates mainly in two industry segments: “Ginning” and “Fabric” Industries. Some of Shujabad Weaving Mill key brands include Grey Fabric.

6. Introduction Of Shujabad Weaving Mill Cont. The Group has developed sufficient expertise in textile industry with a decade long presence, which provides the group with sufficient Business Acumen. To assure the best quality produced, Shujabad Weaving Mills have acquired best quality control equipment at premises. They are known by their strong management, Quality and by strong relationships with their employees. Shujabad Weaving Mills Ltd. was incorporated and set up in Multan as a public limited company.

7. Vision Shujabad Group defines its vision as follow: “An innovative strategy is worthless without the ability to execute it, which requires a compelling vision and passion.”

8. Mission “We are striving to produce best and become the best in the world” Corporation To meet the objectives we make efforts to be cost effective. Customer To meet the desires of our valued customers we identify their needs. Competition To win the competition in the market we stress on continuous improvement, quality of products, cost effective and create brand loyalties.

9. Core Values and Shared Values Core Values Integrity  Dedication  Leadership  Independence Quality Teamwork Shared Values Structure Systems Style Staff Skills Strategy

10. Shujabad Weaving Mill Objectives Our objective “ Quality with Care ” Emphasize on high Quality Inputs. Yarn Quality assurance before use Continuous Improvements High Skilled Technical Team Professional Marketing Approach. With in time deliveries In time feed back

11. Company Hierarchy

12. SCM Departmental Hierarchy

13. INTERNSHIP EXPERIENCE AND ACTIVITIES

14.   WEEK 1 st (SUPPLY CHAIN MANAGEMENT) Process flow of the supply chain activities of Shujabad weaving mill Day 1: Learn about supply chain of Shujabad W eaving M ill s. Day 2 : Process flow of the supply chain activities of Shujabad weaving mills. (objectives , annual sales plan, forecasting, material requirement planning) Day 3 : Procurement plan, Procurement process, Receiving & Storing, Distributions.

15.   W e ek 1 st Cont. Key processes of the supply chain management in Shujabad Weaving Mills Day 4 : The methods of each unit is connected and works as an overall supply chain Day 5: Key Processes of SCM in Shujabad Weaving Mill

16. Week 2 nd ( Marketing ) 4P’s: Product Types of cloth being prepared  Price Fixed cost , variables cost Place Direct channel (Customer), Indirect channel  (Middleman) Promotion Direct selling, through agents

17. Week 3 rd (Sales) Local S ale C ontracts           Production stock Yarn purchase                 Purchase Contract  Payment Receiving Production Quality Audit Payment Dispatch

18. Week 4 th (Production) Grey Cloth Production Yarn Store Documentation for the Yarn Store Yarn Store Ledger Yarn Received and Issuance Report Yarn Requisition Production Process Warping Documentation Sizing Drawing

19. Week 5 th (Weaving) Weaving Process Loom stoppage Knotting  Article Reporting for Weaving Department   Unrolling the Cloth (Inspection) Folding Cutting  Packing Pressing

20. Week 6 t h (Exports) Day 1 Export at Shujabad Textile Mills                     Day 2 Bill of landing                               Day 3 Negotiations of documents, Bill of exchange, Invoice Day 4 Settlement payment of expense Day 5 Payment of local  commission , Shipping bill

21. SWOT Analysis STRENGTHS Availability of Raw material Cheap labor Advanced Technology Improved worker-management relationship Global Demand Strong relationship with Suppliers (Vendors) Continuous improvement Versatility Skilled Employees Better Distribution Network WEAKNESSES Unsatisfactory demand forecasting Less focus in Lean Supply Chain Dependency on the potential buyers Dependency on the limited Suppliers Defect ratio is 9% No proper resources for risk management (Inventory defects/Risk)

22. SWOT Analysis cont. OPPORTUNITIES Increased Demand Export Market New Trends in Fashion Industry New Trend in Consumer Behavior Using of Cutting-Edge Technology THREATS High production costs and a low profit margin. Challenges posed by political and environmental crisis New Innovations in Textile Manufacturing Competitors Transportation Challenges

23. PESTEL Analysis PESTEL analysis is used to determine that what factors inside or outside the organization directly or indirectly effects the organization. Following are the PESTEL analysis of Shujabad Weaving mill. Political Factors: Shujabad Weaving Mill is one of the Pakistan biggest textile industry. Political stability is essential for flow of raw material and to maintain best in class supply chain efficiency. It becomes difficult for Shujabad Weaving Mill to adjust to such frequent law changes due to political instability. Economic Factors: Following are some economic factors that effects the performance of Shujabad Weaving Mills. Inflation Interest Rate Devaluation of Currency

24. PESTEL Analysis cont. Social Factors: Social issues are seems to be more important factors for all organizations around the world. Shujabad Weaving Mill is continuously growing up and providing employment for more and more people in order to sustain profitability. Technological Factors: Technology factors are so important for the reduction of cost and time. Shujabad Weaving Mill is equipped with fully advance technology advance looms power generation plants and checking quality machines.

25. PESTEL Analysis cont. Environmental Factors: The waste of textile industries effects the environment. Shujabad Weaving Mills are adopting the solutions that can remove the hard water contaminations from the water waste and pollutants from the smoke waste. Legal Factors: These are the rules and regulation that a company follows. Shujabad weaving Mill is operating under legal boundaries and labor ordinance laws prescribed by the government. These factors are also affecting its the business operations.

26. CONCLUSION I acquired a great deal of involvement with Shujabad Weaving Mill d uring my work, various units work under one umbrella. During my internship I learned about the planning, information, purchases, inventory and productions management as well as supply chain management. T hey get benefits by limiting the different costs that they used to pay because of the absence of processing. However few upgrades and improvement are required. This association has an upward administration framework.

27. CONCLUSION cont. No Proper procedure for Demand Forecasting Less Focus on Lean Supply Chain Process (inefficient JIT & Increased Lead Time) Dependency on Limited or Few Suppliers of Raw material (Increased Rates & Abrupt Shortage problem) Production defect Ratio is high i.e. 9%. No proper resources for Inventory Risk Management. I also recommended some things that the company can adopt to increase their affectivity and reduce the flaws in their working.

28. Recommendations The recommendations to Shujabad are given below: Demand Forecasting should be through Software (ERP) & Physical Evaluation Practice Lean Supply Chain by using JIT Process & Reducing Lead Time Number of Suppliers should be increased for more Rate Flexibility in Purchase of Raw Material Six Sigma Rule should be applied to reduce Defects. ERP & Inventory Defects Management should be considered to Reduce Inventory Risk.

29. Thank You Any Questions, Concerns or Suggestion?