SUPPY CHAIN MAINGMENT IN

TEXTELE SECTOR OF PAKISTAN

PRESENTED BY
Abid Rasheed ,Salman Ilyas
Ali Abrar , Nouman Shafi
Adnan Laquee
The major products of Resham textile mills are:
•Cotton yarn
•Oil cakes
•Edible oil
•Cotton waste
 PROCESS VIEW
(PUSH & PULL)
A supply chain is a sequence of processes and flows that
take place within and between different stages and
combined to fill a customer need for a product.
In Resham textile mill we use cyclic view, since the final
product is the raw material for other waiving industries.
Push strategy is used by the management of the Resham
textile industries.
PROCESS VIEW
(PUSH & PULL)
INVENTORY
Since the cotton crop comes once a year so
the inventory used by the Resham textile
industries is the seasonal inventory

SAFETY STOCK
Resham textile industry maintains the
safety stock of 500 bales of cotton
S2S /S2O

Resham textile industry use supply to

stock strategy due to the nature of
product
 Inventory
Facility Pricing

DRIVERS OF SUPPLY CHAIN

Sourcing Information
Transportation
RAW MATERIAL TO FINISHED GOOD
SCOPE OF STRITIGIC FIT
INTER COMPANY INTER FUNCTION
PRODUCT EXPLANATION
The raw cotton is purchased from the farm and market then it is
weighted and then it become the property of the company the
supplier get its cheque from the office and then with the help of
huge suction machines the cotton is sucked and brought to the
plant where it pass through saw machine which separate three
things
•Cotton wool
•Cotton seed
•Cotton waste
Cotton wool is sucked trough vacuum and seed fell below and
waste is thrown in the junk pile. Cotton wool is collected in a
hydraulic press and compressed to form a cotton bale and then
sent to warehouse. Whereas the seeds are spread under sun light
to remove the moisture and then sent to oil department for
crushing and then the residue in the form of oil cake is collected
and stored in separate warehouses.
 LOGISTICS STRATEGY

Since Pakistan is a developing country and there are not many major international
players in the textile sector of Pakistan majority of the companies don’t have
logistics strategy which is defined. We have seen that the most firms use the cost
factor in their any operations due to the nature of the product the simple rule is
used “Buyer own Carriage “ That means that the any company who wanted
to purchase any product like cotton yarn, cotton cake, cotton seed oil must have to
pay the logistic cost by that means the firm save a huge amount of cash on out
bound logistic operations.
Not only Resham Textile Mill uses this policy but generally it is being used by all
the textile mills in the region.
LOCATION
FORECASTING

Resham Textile mills is implementing the time series method of the

demand forecasting. Time series forecasting method use the historical
demand to make a forecast. They are based on the assumption that
past demand history is a good indicator of Future demand. Since the
cotton crop is a major contributor of the country’s economy and most
of the farmers of interior Sindh and South Punjab grow cotton as it is
a most profitable crop of the county so many textile mills and the
Government itself use time series method of forecasting the future
demand.
AGGREGATE STRATEGIES
There are three major strategies which are mostly
implemented by the organizations are as follows:
•Chase strategy using capacity as the lever
•Time flexibility from workforce or capacity strategy
•Level strategy using inventory as the lever

Resham Textile Mill use Chase strategy- using capacity as the

lever it results in low level of inventory in the supply chain and
high level of change in capacity and workforce. It is used due
to the very high cost of carrying inventory and low cost to
change level of machine and labor capacity.
ORDER REQUESTING CYCLE
QUESTION AND ANSWER