101. Define & Discuss the value chain of your organizationSelected organization: - BrandixBrandix:- the Brandix group has pioneered the concept of holistic apparel solutions from a unique,customer- centric standpoint since its inception in the year 2002. Its unconventional approach to aconventional sector has propelled Brandix to the forefront of the industry as the single largestapparel exporter in Sri Lanka with a turnover of US $ 600 Mn. The public limited company’s fastexpanding network of factories and offices span across the south Asian sub-continent.The first company in Sri Lanka’s apparel sector to pioneer the concept of ‘total solutions’, Brandixis now considered a preferred solutions provider to some of the world’s leading apparel brandssituated in the UK, US and parts of Europe. The group specialized In manufacturing casual bottom, intimate apparel, underwear, lounge and sleepwear, bras, woven and knitted fabric and host ofapparel industry accessories.A backward and forward integrated operations, the company manufactures its own fabric,buttons treads and hangers, lending it a tactical edge in the apparel sectorOur group-wide initiatives to achieve manufacturing and supply chain excellence, closecollaboration with our suppliers, and sales offices at the customers doorstep all guarantee fast andflexible solutions from the source to your stores.This core strength future reinforces our advance researches and development, outstanding design,fabric printing, washing, dyeing, wet processing, finishing and relentless quality control serviceswith fastest turnaround time. Embedding and integrating these services into seamless verticality isthe value chain we offer our customersThe key value additions we offers are Speed and flexibility Right cost Convenience Assurance Innovations
2What is Value chain:-A model that considers how supply chain activities can add value to products and services to bedelivered to the customerA strategic business analysis tool used for the seamless integration and collaboration of valuechain components and resources. Value chain management focuses on minimizing resources andaccessing value at each chain level, resulting in optimal process integration, decreasedinventories, better products and enhanced customer satisfaction.Porter’s value chain consists of a “set of activities that are performed to design, produce andmarket, deliver and support its product”. Porter distinguishes between primary activities: inbound logistics, operations, outbound logistics, marketing and sales,service in the core value chain creating directly value support activities: procurement, technology development, human resource management,firm infrastructure supporting the value creation in the core value chainFigure 1
3Discussion of value chain in BrandixWhen considering present value chain activities of Brandix six distinct value-adding activitiescan be identifiedR&D: This value-adding function includes Brandix that engage in R&D, as well as activitiesrelated to improving the physical product or process and market and consumer research. Stillbrandix has low involvement in this stage.Design: This stage includes Brandix that offer aesthetic design services for products andcomponents throughout the value chain. Actually Brandix has buyer wise product developmentteam. Design and style activities are used to attract attention, improve product performance, cutproduction costs, and give the product a strong competitive advantage in the target market. Stillbrandix has low involvement in this stage.Inbound:This stage refers to the inbound processes involved in purchasing and transporting textile products.Raw material such as Fabric, buttons, zippers, labels, cartons, polybags, hangers, sewing threadsare commonly used to manufacture and finish a garment and components such as parts of thesewing machines, furnace oil, water and electricity supply are indirectly support to the productionMost of time Brandix can’t produce all raw materials under one roof. It includes physicallytransporting products, as well as managing or providing technology and equipment for supplychain coordination. Logistics can involve domestic or overseas coordination. In Brandix has antheradditional group called Brandix logistic to control and advice for unbound logistic activitiesMost of the raw materials are sourced from within the group raw materials suppliers. SometimeBrandix sourced raw materials from India, Pakistan, Hong Kong and China. All the foreign rawmaterials merchandize as a FOB orders.
4OperationsProduction/Assembly/Cut, Make, Trim: Brandix cuts and sews woven or knitted fabric or knitapparel directly from yarn. The group specialized in manufacturing casual bottom, intimateapparel, underwear, lounge and sleepwear, bras, woven and knitted fabric and host of apparelindustry accessories.Each plant has their own fabric and trims store, cutting department, technical department, sewingfloor and ironing and packing department. Productions starts after doing the pilot run and it helpsto minimize measurements and other quality related issues. The cut-and-sew classificationincludes a diverse range of establishments making full lines of ready-to-wear and custom apparel.Sometime Brandix performing cutting or sewing operations on materials owned by others.For the manufacturing brandix has been using lean manufacturing and modular systems. Brandixcan purchase textiles from another establishment or make the textile components in-house. AllBrandix apparel manufacturing plants going under higher efficiency its help to reduce productionlead time.OutboundBrandix after apparel is manufactured, Brandix has one warehouse in every manufacturingplants. Sometime Brandix responsible for value-adding activities outside of production. Like dosome packing activates in warehouses. Most of time brandix do free on board orders that timehave to responsible for outbound logistics activates also.Internal logistic activates and Shipping is done by third party logistic supplier and there is aseparate supplier to deliver the containers to the ports and to handle documentation work.Bradix has additional group for monitor all logistic activities.
5Sales and MarketingBrandix has marketing departments in New York, London and Hong Kong. In Sri Lanka brandixbuyer wise brandix has marketing teams. This function includes all activities and companiesassociated with pricing, selling, and distributing a product, including activities such as branding oradvertising.ServicesThis includes any type of activity a firm or industry provides to its suppliers, Buyers, or employees,typically as a way to distinguish itself from competitors in the market. Also defectives are foundby them in the final inspection as well as their auditing point before send to retailers. We have toreplace the shortages to avoid dissatisfaction. Further to that we are claimed discounts for poorquality products.
602) Define & discuss the supply chain related to your organizationWhat is supply chain management?According to the Council of Supply Chain Management Professionals (CSCMP), SCM can bedefined as encompassing “the planning and management of all activities involved in sourcing andprocurement, conversion, and all logistics management activities … It also includes coordinationand collaboration with channel partners, who can be suppliers, intermediaries, third-party serviceproviders and customers. In essence, supply chain management integrates supply and demandmanagement within and across companies.”We can define supply chain management like this also Supply chain management is a set ofapproaches utilized to efﬁciently integrate suppliers, manufacturers, warehouses, and stores, sothat merchandise is produced and distributed at the right quantities, to the right locations, and atthe right time, in order to minimize system wide costs while satisfying service level requirements.How supply chain management related to BrandixManaging the production of the companys good and services, monitoring, storage, inventories,coordinating with suppliers and ensuring timely distribution of goods are some of the key functionscovered by supply chain management (SCM). When consider Brandix the supply chain is actuallymade up of five important components of plan, source, make, and deliver, return. It also includesthree flows which are cash, product and information within the chain. .Through these componentsand members, the Brandix management of the supply chain allows efficient inventory control. Asa dynamic process, the SCM requires the continuous exchange of information, finance andmaterials between and within the members of the chain. These elements of the SCM also makethis business aspect challenging to implement and maintain.The Brandix is one of company those who have been applying this strategy.. In Sri Lanka, theapparel industry is one of its important and highly contributory economic sectors, hence, various
7local apparel manufacturers and businesses are employing different innovations so as to operatesuccessfully,Brandix supply chain networkRaw materialManufacturingGarmentManufacturingExportingnetworkImportingnetworkYarn(cotton/nylon/polyester)Fabric (Weaving/knitting)Ocean lanka/ TJDyeing andfinishingBTL/queanBy/Garmentmanufacturing(R&D / cutting/sewing/ packing)BCW/BEL/BIA/BLIAccessoriesButtons/hangers/treads(A & E/ T & S )Brand-NamedApparelCompaniesOverseas BuyingOfficesTradingCompaniesFabric/AccessoriesLogistic andTransportoperationsLogistic andTransportoperationsCUSTOMERFigure 2- supply chain network BrandixBTL/queanBy/ Ocean lanka/ TJ /A & E/ T & S :- Brandix own raw materials manufacturesBCW/BEL/BIA/BLI :- Brandix own garment manufactures
8Brandix Supply Chain Management FunctionsTransport management systemTransportation involves many different parties within and outside a company who are required toroutinely share information and ideas. Specially involves some foreign countries also. Brandix usefully functional transportation management system should provide the basic components of ashared information system to support: Content such as rates, routes, roles, and contracts at inter-enterprise generic levels Commerce to support and create transaction sets, documents, and information exchangedto facilitate the booking, execution,The data model and data dictionary of the TMS should thus support a wide and diverse range ofinteractions. The combination of these robust system infrastructures and collaborative applicationsshould enable the user to perform all necessary functions involved in the planning, execution, andanalysis of transportation movements.Operations –manufacturingManufacturer bears the responsibility over the production of items according to the requested qualityand the shipment of the right quantity to the right place on the right time. A lot of value addition isthere for the items produced since sourcing is done locally unless it is an exceptional case; this is quiterare in the Sri Lankan apparel industry. The company focuses greatly on the control of its operationsand the quality. This is the consequence of vertical integration and company seeks highest quality atevery stage of production. Operations lead time depend on buyer requirement. Now our lead timedepend on 90 days to 10 days. Brandix has falsities to complete all manufactures process within 10days also.Supplier Relationship ManagementBrandix supplier Relationship Management is a relatively new way of categorizing software–bornout of the concept that you have customer relationship management systems for managingcustomer-facing processes, enterprise resource planning (ERP) systems for internal processes and
9SRM for both supplier-facing processes and managing the supply base. Actually now Brandix useFast React software to there , enterprise resource planning (ERP ).The heart of SRM is sourcingand procurement, which differ from their internally-focused ERP counterparts primarily in that theSRM modules have a much greater emphasis on integrating and connecting with the suppliers.SRM also includes interactions with the supply base throughout the full lifecycle of processes fromdesign through to fulfillment, manufacturing, and settlement.Warehouse management systemBrandix warehouse management system (WMS) provides database and user-level tools in orderfor a company to optimize its storage facilities while at the same time providing user level taskdirection and activity support. The combination of system-directed operations, supported by real-time, paper-less, and interactive information systems will provide warehouse management andpersonnel with the tools to direct, control, measure, and report on distribution operations.Demand management systemsToday Brandix has moved beyond the narrow concept of statistical forecasting to encompass bothglobal and cross enterprise trading partner processes. In addition, the real-time nature of today’sbusiness requires that rapid feedback from markets and adjustments to demand assumptions arepropagated through the supply chain to improve delivery and cost performance.Demand management means identifying and creating demand (marketing, merchandising, andpromoting), modeling (forecasting, pricing, and life cycle planning), and collaborating(communicate, simulate, and create consensus) with the network of trading partners. It also meansevaluating results and creating learning cycles where the market, including geographic,demographic, and economic assumptions are evaluated and improved upon to constantly improvethe performance of the chain.
1003) Identify the value chain & supply chain management challenges, issues and presentlygiven solutionsChallengers and issuesShrinking lead timesBrandix identified rapidly shrinking lead times as one of the biggest challenges for the apparelindustry. The growing demand for ‘instant gratification’ by trend-driven consumers could resultin manufacturers being given hours rather than days to deliver new designs within the next 18 to24 months.Increasing no of style changersWith is short time of period styles and designs are changing. When come new style formanufacturing plant they take some learning curve to come high efficacy level. Because thissituations operations side can’t do manufacturing products in high efficacy.Not enough capacity for own raw material suppliersBrandix own raw material producers can’t supply total garment manufacturing capacity ofbrandix. That time brandix has to import raw materials form foreign suppliers. It manly effect toour value chain. As an example if import yarn and our factory produce fabric mean can add someting to our value chain. In this fabric mils low capacity problem we had to export fabric from oursuppliers it effect to our value chain.Poor flow of informationPoor flow of information in both forward and backward in the supply chain. Our customers’requirements, information and specifications may not pass to manufacturer/ suppliers and qualityissues of the raw materials also not been informed to suppliers. Sometime above details not passwithin group suppliers also. So, suppliers are able to send anything they produce as they do notget any feedback.
11Demand forecasting problemsPoor demand forecasting. There is an issue in production planning and as result delivery are notmet on time. Some raw materials such as packing trims are not in housed on time and unfinishedgoods are remaining at packing.Logistics problemsBrandix has large number of logistics problems. Internal and external logistic problems increasingnow day by day. Logistic and transportations problems effect to the on time delivery. Lackcommunications, non-skill human resources, dealing with lot of logistic companies those are themain reasons for logistic problems.Inventory management problemsPoor inventory management. Raw materials such as interlining, has to maintain minimum stock asthey widely used. Sometimes they are not available and it affects to production. WIP inembellishment division is higher and as a result garment finishing cannot be done as scheduledPresently given solutionsIntroducing new inventories management systemsNow Brandix has been implementing just in time inventory management system. Now thisconcept implementing all group raw materials manufacturing companies and garmentmanufacturing companies. Its help to reduce upcoming poor inventory management problems.Implementing lean manufacturing for manufacturingUsing lean tools Brandix hope to reduce cost and increase productions efficienciesCost reducing
12Brandix management reduced the cost of the organization and there is higher level of cost savings.Such as the duplication work, transport, delivery, cost that is been involved. Furthermore, it bringsabout efficiency to the organization, and also quick responding to the consumer demandsFind new raw materials suppliers and increase productivity of own raw materialsproducing factoriesThis splitting-up of once vertically aligned organizations into many independently working apparelcompanies, brandix having a separate operation but in raw material capacities not enough. Nowbrandix invest another fabric manufacturing companies and increase value of them value chain.Makes efficient coordination among them a must to sustain increased competition. Also large,vertically oriented organizations, which still exist, need to coordinate their entire supply in light ofgrowing inter-unit competition for productivity, often disregarding market priority. This stimulatesapparel organizations to manage their various activities under a new paradigm, supply chainmanagementBrandix has set up vertically integrate city (Brandix apparel city)Brandix India Apparel City (BIAC) is a revolutionary development in the apparel industry; aunique, integrated apparel supply chain city, managed by Brandix Lanka Ltd. Spread over 1000acres in the port city of Visakhapatnam (or Vizag for short) in the eastern state of Andhra Pradesh,it brings alive an avant garde Fibre to Store concept. BIAC will bring together world classapparel chain partners from the design table to consumer brands in flawless integration.The dynamics of the apparel market demands the key value propositions of speed to market, leastcost, flexibility & assurance of compliance. BIAC is built on this premise. Its smooth flowingverticality will ensure minimum lead times, the most critical competitive factor.
1304) Based on the knowledge gain during this program describe your own views andrecommendations to future improve the value chain and the supply chain of your ownorganizationOwn Recommendations to future improve the value chain and the supply chainUse highly accurate forecasting methods using technologyHighly accurate forecasting algorithms and dynamic time-phased replenishment plans for apparelsupply chain management, apparel marketers can reduce inventory, improve service levelsAll ready Brandix use Enterprises resource planning system for forecasting. My suggestion is afterdo research, Analyze sales history and forecasts in units, revenues, margin, or any other unit ofmeasure after that develop own highly accurate forecasting method for forecasting.Increases involvement for highly value added stagesWhen consider value chain focus high value added stages. Actually when considering Brandixvalue chain it start R & D, design, purchasing, production distributing, marketing and service. Butthink about Brandix value chain, Percentages of involvement for each stages Brandix has lowinvolvement for highly value added stages. As a figure 2 mention apparel value chain highly valueadded things are R&D, Design and after service. If Brandix can increases involvement for R & Dand design stages can add high value for our value chain. Its help to increases profitability alsoapparel business.Figure 3 : Source: Frederick, 2010.
14Start own logistic companyPresent Brandix in bound and out bound all logistics services have been out sourcing. Because thissituations facing lot of problems. If Brandix start own logistic company can reduce several logisticproblems and save money. When we think about world success business like WALMART, theyhave own logistic company and it help to meet there requirement and goals.Build up new supplier performance evaluation systemNeed to have proper supplier performance evaluation procedure to identify best and reject othersNeed to build up good relationship with suppliers and customersThis reality is increasingly inaccurate as companies facilitate their return item processes andcustomer feedback through their network. As a result, the consumer experience is improved asretailers combine their e-commerce operations with those of their stores.Have to do Continuous improvementThis notion is believably the most complex to exploit because of the large number of stakeholdersinvolved in the garment industry. However, this principle is applied by world-class manufacturingIn the context of this fascinating industry, a series of articles will be released in the coming monthson various aspects of the supply chain. Through these columns, we wish to give you food forthought, bestow possible solutions to your industry’s difficulties and potentially arousequestioning about your supply chain operations with business partners.