Logistic functions of Brandix

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Table of Contents
Introduction...........................................................................................................................2
Objectives..............................................................................................................................3
Introduction to the Organization...........................................................................................4
Logistic functions of Brandix................................................................................................6
Customer service ...............................................................................................................6
Warehouse management system........................................................................................6
Inventory management and capacity planning ..................................................................6
Technologies and information systems .............................................................................7
Transport management system..........................................................................................7
Supplier relationship management ....................................................................................8
Demand management system............................................................................................8
Challenges and issues of logistic functions of Brandix.........................................................9
Recommendations ...............................................................................................................10
References ...........................................................................................................................11

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Introduction
As the global economy slowly turns itself around and begins its long-term recovery driven
by rapid growth in Asia, greater stability in the United States and the Middle East,
tempered somewhat by Europe’s continuing economy troubles. Sri Lanka today stands on
the verge of success and prosperity.
With the permanent peace to the country in May 2009, the Sri Lankan Government has
accelerated economic progress through a series of measures such as control of inflation,
Reduction of interest rates, encouragement of tourism sector……etc.
Therefore today’s business organizations should have a well-managed logistic
management system within the organization in order to get the maximum output from its
employees as well as to increase the efficiency and effectiveness of the day to day work
activities in an economical way while reaching the objectives of the organization. It
doesn’t matter whether the organization is large scale or small but almost all the
organizations should have to achieve their best not because they have to but to survive in
the market while achieving the organization’s goals and objectives. So having a well-
managed Logistic Management system is a complete and utter plus point for any
organization where every organization is looking for maximum efficiency and
effectiveness.
After finishing the module “Logistic Management” I have been asked to go through the
information given by lecturer with regard to the logistic functions and to fulfill a report as
the end semester assignment on the topic of “Logistic Functions”.
So with that, I am pleased to present my report with regard to the analysis I did on
“Logistic Functions of Brandix” on behalf of the “Logistic Management” module. By
reading this report you would be able to make a clear view about the Logistic Functions of
the Brandix as well as you would be able to get to know how effective it is and what they
should change in order to make it more effective.

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Objectives
 To get more knowledge about the practical side of logistic management.
 To learn about the logistic functions and to identify its effectiveness and
weaknesses.
 To forecast / predict the future situations with regard to the current practices of
logistic functions.
 To cover my assignment of writing an analytical report on “Logistic Functions of
Brandix”.
 To confirm the knowledge which I learnt by Logistic Management module.

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Introduction to the Organization
As the apex holding company of the Group, Brandix Lanka functions as the corporate
headquarters from which centralized services are provided. These include Finance,
Corporate Finance, Investments and Project Management, Treasury Management, Legal
and Secretarial Services, Tax Planning, Compliance, BOI Relations and Engineering. It is
also responsible for Human Resources Management, Corporate Communications, the
Group’s Management Information System and Communication Infrastructure. Forging the
strategic direction of the Group, Brandix Lanka is responsible for the creation of brand
equity, as well as establishing and monitoring Group-wide adherence to the principles of
Corporate Governance and Corporate Social Responsibility.
Now Brandix is the largest exporter of apparel in Sri Lanka. In last year they exceed
annual turnover USD 500 million. Also Brandix is unlisted company. A single
manufacturing facility in 1972 was the springboard to the 38 plants island wide and
supports the Group and employs over 40,000 people directly. The Brandix consists of
factories located in Sri Lanka, Bangladesh and India, producing a wide range of apparel
categories.
In 1992 Acquired Phoenix Fashions (Pvt.) Ltd, Set-up Lux Shirts Kahawatta (Pvt.) Ltd,
Acquired Kuruwita Manchester Textile Mills Ltd. In 1993 Commissioned Kuruwita
Textile Plant, Set-up LM Collections (Pvt.) Ltd, Formed Mast Lanka (Pvt.) Ltd. In 1997
Set-up Phoenix College of Clothing Technology (Pvt.) Ltd, Brandix Lanka Ltd was
founded under one logo in 2002 and pioneered the concept of holistic apparel solutions
from a unique, customer-centric structure. In 2006 launch the first manufacturing unit at
Brandix India Apparel City. A concerted initiative to facilitate their vision of achieving
manufacturing and supply chain excellence, and working closely with their partners, they
provide truly inspired solutions.
Brandix was presented the Presidential Award in recognition of its contribution to the
national economy as the Highest Net Foreign-Exchange Earner in 2005 and the
Outstanding Exporter of the Year award in the Apparel Category in 2005. In 2007, the
Export Development Board of Sri Lanka identified Brandix as Sri Lanka’s largest apparel
exporter. It won the coveted Most Outstanding Exporter of the Year award at the National
Awards for Export Excellence in 2003.

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The group emerged the overall national winner of both the Nagasaki Yamamoto Kaizen
Award and the Taiki Akimoto 5S Awards in 2004, making history of sorts when both
national awards were bagged by one company. Brandix has also received numerous
other awards including Community Leader Awards, National Safety Awards, National
Productivity Awards, Kaizen Awards and numerous customer-recognition accolades.
Brandix continuously demonstrates its commitment to responsible business practices by
actively pursuing ISO, SA8000 and WRAP certification programmers at its various
plants.
Sri Lanka's apparel sector inspiration Brandix has achieved a world first across all
sectors, with its Green Factory in Seeduwa becoming the first apparel manufacturing
facility in the world to be rated Platinum under the Leadership in Energy and
Environmental Design (LEED) Green Building Rating System of the US Green Building
Council.
The Board of Directors, headed by a Non-Executive Chairman, CEO and five Directors,
is responsible for setting the direction of the company and for the formulation of the
overall business policy and strategy. The Board also sets the desired standards and
priorities concerning the management of the Company and the conduct of all its business
affairs accordingly. It is ultimately responsible for the Company’s activities, strategies
and its financial performance. The Board formally met 4 times during the year. The CEO
and Directors meet informally on a weekly basis to brainstorm, review and charter plans
and operations pertaining to individual SBUs. In addition, the CEO and the Executive
Directors conducted quarterly reviews of the performance of the SBUs.
Board of Directors
Left to right : Udena Wickremasooriya, Trevine Jayasekara, Ajit Johnpillai, Sarnoff Omar, Aslam Omar, Ken
Balendra, Feroz Omar

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Logistic functions of Brandix
Customer service
Building strong customer and vendor relationships are pursuits of paramount importance
for Brandix, while working in an ethical, socially responsible and transparent manner have
been the determinants of its success. The group has let its products and services do the
talking, playing down any overt promotional efforts, despite winning a slew of national
awards for quality and productivity. Meanwhile, its corporate pillars of environment,
people, technology, community commitment and compliance serve as beacons for its
growth and strategic direction.
Warehouse management system
Brandix warehouse management system (WMS) provides database and user level tools in
order for a company to optimize it’s storage facilities while at the same providing user
level task direction and activity support. The combination of system direction operations
supported by real time, paper less, and interactive information systems will provide
warehouse management and personal with the tools to direct, control, measure and report
on distribution operations.
Inventory management and capacity planning
For inventory management and capacity planning Brandix use Enterprise Resource
Planning (ERP) Software. The software will provide Brandix with complete support for
Enterprise Resource Planning (ERP), customer relationship management, business
performance management and value chain collaboration. Some of the key benefits of this
system are that it significantly improves the availability of real time information for
management decision making, a seamless processing from receipt of customer order to
delivery as well as the ability to incorporate e-business through the logistics chain.

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Technologies and information systems
Brandix Lanka is the hub from which all centralized services are provided.in addition; it is
responsible for Corporate Communications, Management Information System and
Communication Infrastructure. It drives the Group's brand equity and strategic concepts
including its considerable investments for local and regional expansion, and establishes
and monitors Group-wide adherence to corporate governance and CSR and environmental
initiatives.
 Brandix i3
Brandix i3 is the IT and Consulting Company of the Brandix Group, which was fused
bringing together experts from the fields of ERP Consulting, Enterprise Software
Development and Business Improvement.
Transport management system
Transportation involves many different parties within and outside a company who are
required to routinely share information and ideas. Specially involves some foreign
countries also. Brandix used fully functional transportation management system should
provide the basic components of a shared information system to support.
 Content such as rates, routes, roles and contracts at inter enterprise generic levels
 Commerce to support and credit transaction sets documents and information
exchanged to facilitate the booking execution.
The data model and data dictionary of the TMS should thus support a wide and divers
range of interactions. The combination of these robust system infrastructures and
collaborative applications should enable the usre to perform all necessary functions
involved in the planning, execution and analysis of transportation movements.

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Supplier relationshipmanagement
Brandix supplier relationship management is relatively new way of categorizing softw are
born out of the concept that you have customer relationship management system for
managing customer facing processors, enterprise resource planning (ERP) system for
internal processors and SRM for both supplier facing process and managing the supply
base. Actually now Brandix use fast react software to their enterprise resource planning
(ERP). The heart of SRM is sourcing and procurement which differ from their internally
focused ERP counterparts primarily in that the SRM modules have a much greater
emphasis on integrating and connecting with the suppliers. SRM also includes interactions
with the supply base throughout the full life cycle of processors from design through to
fulfillment, manufacturing and settlement.
Demand management system
Today Brandix have moved beyond the narrow concept of statistical forecasting
encompass both global and cross enterprise trading partner processors. In addition, the real
time nature of today’s business requires the rapid feedback from markets and adjustments
to demand assumptions are propagated through the supply chain to improve delivery and
cost performance.
Demand management means identifying and creating demand (marketing, merchandising
and promoting),modeling (forecasting, pricing and life cycle planning) and collaborating
(communicate, simulate, and create consensus) with the network of trading partners. It
also means evaluating results and creating learning cycles where the market including
geographic, demographic and economic assumptions are evaluated and improved upon to
constantly improve the performance of the chain.

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Challenges and issues oflogistic functions of Brandix
Brandix has large number of logistic problems. Internal and external logistic problems are
increasing now day by day. Followings are some of them.
 Shrinking lead time
Rapidly shrinking lead times is one of the biggest challenges for the industry. The growing
demand for ‘instant gratification’ by trend driven consumers could result in manufactures
being given hours rather than days to deliver new designs within the next 18 to 24 months.
 Increasing no of style changers
Within short time period styles and designs are changing. When new styles come for
manufacturing plant they take some learning curve to come high efficiency level. Because
in this situations operation side cannot do manufacturing in products in high efficiency.
 Not enough capacity for own raw material suppliers
Brandix own raw material producers cannot supply total garment manufacturing capacity
of Brandix. That time Brandix has to improve raw material from foreign suppliers. It
mainly effect to their value chain. As an example import yarn and factory produce mean
can add something to their value chain. In this fabric mails low capacity problem they had
to export fabric from their suppliers it effort to their value chain.
 Poor flow of information
Poor flow of information in both forward and backward in the supply chain. Their
customers’ requirements, information and specifications may not pass to manufactures,
suppliers and quality issues of the raw materials also not been informed to suppliers.
Sometimes above details not pass within group suppliers also. So suppliers are not able to
send anything they produce as they do not get any feedback.
 Demand forecasting problems
Poor demand forecasting. There is an issue in production planning and as a result delivery
is not met on time. Some raw materials such as packing trims are not in housed on time
and unfinished goods are remaining at packing.

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 Inventory management problems
Poor inventory management. Raw materials such as interlining have to maintain minimum
stock as they widely used. Sometimes they are not available and it affect to production.
WIP in embellishment division is higher and as a result garment finishing cannot be done
as scheduled.
Recommendations
 Introduce new inventory management system
Brandix has to implement just in time inventory management system as it helps to reduce
upcoming poor inventory management problems.
 Build up good relationship with suppliers and customers
This reality is increasingly inaccurate as companies facilitate their return item processors
and customer feedback through their network. As a result the customer experience is
improved as retailers combine their e-commerce operations with those of their stores.
 Continuous improvement
This notion is believably the most complex to exploit because of the large number of stake
holders involved in the garment industry. However this principle is applied by world class
manufacturing.
 Implement lean manufacturing for manufacturing
Brandix has to use lean tools to reduce cost and increase productions effifiency.
 Cost reducing
Brandix has to reduce the cost of organization and their higher level of cost savings. Such
as the duplication work, transport, delivery cost that they have been involved. Furthermore
it brings efficiency to the organization and also quick responding to the customer
demands.

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References
Books
 Annual report of Brandix 2012-2013
 Bob Donath,The IOMA Handbook of Logistics and Inventory Management, John
Wiley & Sons Inc.
 Raja G. Kasilingam, Logistics and Transportation
 Palgrave Macmillan, Supply Chain Management, 2nd edition
Web addresses
 http://brandixgroup.blogspot.com/
 http://brandix.com/brandix/brandix_lanka.php
 http://www.brandix.com/brandix/intimate.php
 http://www.ft.lk/2014/01/09/lanka-apparels-in-new-supply-chain-breakthrough/
 http://www.intechopen.com/books/globalization-education-and-management-
agendas/the-company-s-logistic-activity-in-the-conditions-of-current-globalisation
 http://books.google.lk/books/about/Logistics_Systems_Design_and_Optimizatio.ht
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