Graduation Project Mid term evaluation

Internship at NSL Textiles Development of Standard Operating Procedure for Merchandising department of NSL textiles and B2B transactions analysis in Apparel Industry
Submitted by: Vega Chauhan Roll no.28, DFT-VIII

Background
To develop Standard Operating Procedures for the Merchandising department of NSL textiles. S.O.P. to be developed using the existing methods used by the department and developing methods to improve/consolidate the functioning of the department. This involves: Preparation of Supplier Evaluation reports.

Market research of B2B transactions in Apparel business and understanding of apparel wholesale business.

About NSL textiles

NSL textiles covers all the operations from the extraction of cotton lint to garment manufacturing. The parent company Nuzeevidu Seeds Limited is the biggest seed company in India. The NSL group has a turnover of Rs.1500 Crore NSL textiles caters with both buyers and its own inhouse brands of menswear called Zimmer Tuscany.

About NSL textiles

NSL Textiles as two production units: Pashamylaram, Medak District (about 35 km from Hyderabad):
Capacity: 4000-6000 pieces per day

Guntur:
Capacity: 6000 pieces per day

Literature Review
Understanding Supply Chain Management Distribution Process flow of SCM Merchandising Need of supplier evaluation Understanding and need of Standard Operating Procedures B2B Wholesaling Methods of Data Collection

Literature Review
Understanding SCM Supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. It also includes the crucial components of coordination and collaboration with channel partners, which can be suppliers, intermediaries, thirdparty service providers, and customers. Distribution Distribution in supply chain management refers to the distribution of a good from one business to another. It can be factory to supplier, supplier to retailer, or retailer to end customer.

Merchandising Process of planning, buying and selling fashion apparel and accessories in order to offer the right merchandise, liasoning between the suppliers, manufacturers, customer in order to provide the right product is merchandising.

Literature Review
Need of supplier evaluation The motivation for the establishment of such a rating system is part of the effort of manufacturers and service firms to ensure that the desired characteristics of a purchased product or service is built in and not determined later by some after-thefact indicator and help each member of the management team (merchandise team) know the kind of suppliers the company deals with. Understanding and need of S.O.P. An S.O.P. is a document customized to the specific company and may not be same for other companies in the same business. S.O.P. also often includes subdocuments like checklists to tracks the process, supplier evaluations reports, process flow charts etc. B2B Business-to-business (B2B) describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

Literature Review
Wholesaling Wholesaling, also known as distributing, is an intermediate stage between the origin of a good or service and its ultimate distribution to an end user through retail trade channels

Methods of data collection Data collection usually takes place early on in an improvement project, and is often formalized through a data collection plan which often contains the following activity. Pre collection activity Agree goals, target data, definitions, methods Collection data collection Present Findings usually involves some form of sorting analysis and/or presentation. Types of data collection By questionnaires By personal interview

Methodology
The project has been divided into three parts: Objective I : To create the Standard Operating Procedures document for Merchandising department of NSL Textiles. Objective II : To develop a supplier evaluation method for NSL textiles which is to be included with the prepared S.O.P. Objective III : To study apparel wholesale business in Hyderabad and understanding the distribution channels at NSL textiles to initiate base for B2B operations at NSL textiles.

Methodology
Review the literature
Review Concepts And theories Review Previous Research findings

Define Research Problem

Formulate objectives

Design Research

Collect Data

Analyze Data

Interpret and report

Objective I : To create the Standard Operating Procedures document for Merchandising department of NSL Textiles.

Purpose (Objective I)

Data required:
Understanding of the process at NSL textiles

Data collection:
Discussions with merchandisers Job analysis

Derivative: S.O.P. document

Objective II : To develop a supplier evaluation method for NSL textiles which is to be included with the prepared S.O.P.

Purpose (Objective II)

Data required:
Database of suppliers Parameters of rating

Data collection:
Discussions with merchandisers and purchase department

Rating

Derivative: Supplier Rating Reports (to be attached with S.O.P.)

Objective III : To study apparel wholesale business in Hyderabad and understanding the distribution channels at NSL textiles to initiate base for B2B operations at NSL textiles.
Purpose (Objective III)

Data required:
Factors affecting wholesaling Database of price, trends, profits followed by formal shirt wholesalers

Data collection:
Personal interviews Telephonic interviews

Derivative: Reports related to price, trends, profit, review period of stock in formal shirt wholesale business

Project status
Initial draft of S.O.P. Supplier evaluation spreadsheets Apparel B2B sector research done on 15 formal shirt wholesalers. Completion of initial draft of the report of the market research.

Time & Action plan

Expected outcome
Fully documented S.O.P. to be submitted to the merchandising department of NSL textiles. Submission of supplier reports. Usage of B2B market research for consolidation of B2B operations of NSL textiles.

Expected outcome
Benefits of S.O.P.: Training of new employees Standardization of the process Existence of quality manuals and S.O.P.s reflects the high standards of the organization. ISO 9000 certification requires S.O.P. for all major departments of the company.

Expected outcome
Benefits of market research on B2B transactions of apparel business:
Understanding of pricing in wholesale sector. Understanding of trends and calendars followed by wholesalers. Reference for sales and order booking

Bibliography
SCM: Designing and Managing the Supply Chain by David Simchi Levi, Philip Kaminksy, Edith Simchi Levi SCM: NC State University Online Journal, issue 2006 October. Merchandising: MIT sloan review, winter issue-2011

B2B: B2B for apparel industry by McKinsey & Co., Knowledge papers release-2001
Merchandising: http://www.scribd.com/doc/5266727/INTEGRATION-OFMERCHANDISING-MANAGEMENT Merchandising-theory, principles and practice by Gracel Kunz Wholesaling - benefits Merrefield, David. "Wholesale Changes." Supermarket News, 21 September 1998)

Thank you