Internship Report

on
Supply Chain Management Practices in Textile Industry
: A Study on Sonargaon Textiles Limited, Rupatali, Barishal

Supervised by

Nusrat Sharmin Lipy

Lecturer

Department of Management Studies

University of Barisal

Submitted by

Mohammad Tariqul Islam

Session: 2016-2017

(Admitted: 2013-2014)

BBA, Management Studies

University of Barisal

Date of Submission: 18 November 2018

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 Letter of Transmittal
th
Date: 18 November
Nusrat Sharmin Lipy
Lecturer
Department of Management Studies
University of Barisal

Subject: Submission of Internship Report.

Dear Sir,

With due respect, I would like to inform you that it is a great pleasure and privilege to present the
internee report titled Supply Chain Management practices in Textile industry: A case study
on Sonargaon Textiles Ltd. Rupatali, Barishal which was assigned to me as a partial
requirement for the completion of BBA program. Throughout the study I have tried the best of
my capacity to accommodate as much as information and relevant issues as possible and tried
followed the instructions that you have suggested. I put my best effort to make this report such as
much detailed as possible. I sincerely believe that report would satisfy and meet the requirement
and will serve the purpose of my internship program.

I am grateful to you for your kind guidance and cooperation at every step of my endeavor during
preparing this report. It would be a great help for me if you kindly take some time to go through
the report and evaluate this. It will be a big reward for my effort if it adds value to the research
literature.

Sincerely Yours,

……………………….
Mohammad Tariqul Islam
Exam Roll: MGT 063/8
Session: 2016-2017 (admission 2013-14)
Department of Management Studies
University of Barisal

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 Acknowledgement

First of all I would like to thank Almighty Allah who blessed me and made it possible for me to
complete this Internship Report. I wish to express profound gratitude to my honorable internship
supervisor Nusrat Sharmin Lipy Lecturer, Department of Management Studies for her persistent
guidance, keen interest and continuous encouragement. I am very much grateful to Mr. Salauddin
Chowdhury, Project Director and Soumen Kundu AGM (Production and Quality) Sonargaon
Textiles Limited, Rupatali, Barishal. Without their direction and suggestion, it would be difficult
for me to prepare this report. I would also like to thank all other officers who gave me their
valuable time in between their busy working hour and helped me to make my report resourceful
providing necessary information.

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 Student’s Declaration

I am Mohammad Tariqul Islam, student of Department of Management Studies,

University of Barisal, hereby declare that the work presented in this report on Supply
Chain Management Practices in Textile Industry: A Case Study on Sonargaon
Textiles Limited, Rupatali, Barishal has been carried out by me and has not been
previously submitted to any other organization for an academic purpose.

The work I have presented does not breach any existing copyright and interpretations
drawn there in are based on materials collected by myself.

………………..

Mohammad Tariqul Islam

Exam Roll: MGT 063
Session: 2016-2017 (Admission 2013-2014)
Department of Management Studies
University of Barisal

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INTERNSHIP CERTIFICATE

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 Executive summary
Supply chain management is a major concern in many industries as companies realize the
importance of creating an integrated relationship with their suppliers and customers. Managing
the supply chain has become a way of improving competitiveness by reducing uncertainty and
improving service. One aspect of successfully managing the supply chain requires that a
company understand their logistical strategies and practices. Textile industry has a great impacts
on our economy. RMG sectors depend on textile industry directly or indirectly. For this reason,
textile products and supply chain management practices should be updated and systemized to
smooth this broaden industry. As an internship program, I have chosen supply chain management
practices in textiles industry: A case study on Sonargaon Textiles limited, Rupatali, Barishal.
This industry produces 100% cotton yarn and great opportunity for creating jobs. I have
performed 03 months internship in this organization and observed productive procedure and its
supply chain management. From this observation, I have to realize not only production but also a
sound supply chain management meeting to achieve organizations goals. To prepare this report, I
have discussed with officials as well as workers about the production and its supply chain
management practices. Primary and secondary data help me build up a concrete information.
Some limitations were faced to prepare this report. I have drawn a small picture of Sonargaon
Textiles Limited. Then I have given a short theoretical framework to understand supply chain
management and its importance on textile industry to sustain in competitive markets in our
country. The main functions of supply chain management practices of STL have been reflected
with this report. To make supply chain management practices of STL betterment I have provided
recommendations which will be efficacy for this industry.

Keywords— Textile industry, Supply chain, Integrated supply chain, Lead time, Ready-made
garment industry, System dynamics analysis, Inventory, Raw material, SWOT analysis

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 Table of Contents
Letter of Transmittal ............................................................................................... ii
Acknowledgement ................................................................................................... iii
Student’s Declaration ............................................................................................. iv
Internship Certificate .............................................................................................. v
Executive Summary ................................................................................................ vi
Chapter 01: Introduction ........................................................................................ 1
1.1 Introduction ......................................................................................................................................... 2
1.2 Origin of the Study .............................................................................................................................. 2
1.3 Rationale of the Study ......................................................................................................................... 2
1.4 Objectives of the Study ....................................................................................................................... 3
1.5 Scope of the study ............................................................................................................................... 3
1.6 Limitations of the Study ...................................................................................................................... 3

Chapter 02: Methodology of the Study.................................................................. 4

2.1 Methodology of the study.................................................................................................................... 5
2.2 Type of report ...................................................................................................................................... 5
2.3 Population and Sample: ....................................................................................................................... 5
2.4 Sample Size: ........................................................................................................................................ 5
2.5 Sampling method:................................................................................................................................ 5
2.6 Select variables: ................................................................................................................................... 5
2.6 Statistical Tools/Software Used .......................................................................................................... 5

Chapter 03: Theoretical Framework of SCM ....................................................... 6

3.1 The origin of SCM .............................................................................................................................. 7
3.2 Definitional Analysis of SCM ............................................................................................................. 7
3.3 Importance of SCM: ............................................................................................................................ 8
3.4 Common Factors of SCM.................................................................................................................... 8
3.5 SCM (Supply Chain Management) Processes ..................................................................................... 8
3.6 Seven Principles of SCM..................................................................................................................... 9
3.7 Common Challenges of SCM .............................................................................................................. 9
3.8 Supply Chain Management Software ................................................................................................ 10

Chapter 04 : Organization Profile........................................................................ 11

4.1 Key Information of Sonargaon Textiles Limited .............................................................................. 12
4.2 Corporate Achievements ................................................................................................................... 13
4.3 Management Apparatus ..................................................................................................................... 13

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 4.4 SWOT analysis of Sonargaon Textiles Limited ................................................................................ 15
4.5 Common Supply Chain Management of STL ................................................................................... 16
4.6 More Information about STL: ........................................................................................................... 17

Chapter 05: Supply Chain Management Practices in STL ............................... 19

5.1 Supply Chain of STL ......................................................................................................................... 20
5.2 Process flow of the supply chain activities of STL ........................................................................... 20
5.3 STL competitive strategy: ................................................................................................................. 21
5.4 The method of each unit is connected and works as an overall supply chain. .................................. 22
5.5 Procurement policy............................................................................................................................ 23
5.6 Challenges of the Procurement Department ...................................................................................... 23
5.7 Production Planning and Raw Material Planning: ............................................................................ 24
5.8 The supply chain management Practices in STL: ............................................................................. 24
Plan ...................................................................................................................................................... 24
Develop / Source of raw materials ...................................................................................................... 25
Make/ Production ................................................................................................................................ 25
Production Process of STL .................................................................................................................. 26
Functions of bowing unit ..................................................................................................................... 26
Functions of curding unit..................................................................................................................... 27
Functions of ring frame unit ................................................................................................................ 27
Functions of finished department ........................................................................................................ 27
Functions of Ware house ..................................................................................................................... 27
Quality control department: ................................................................................................................. 28
The method of finding curding standardization: ................................. Error! Bookmark not defined.
The method of finding standardization cotton count ........................... Error! Bookmark not defined.
The method of finding Standardization sliver ..................................... Error! Bookmark not defined.
The method of finding standardization drawing.................................. Error! Bookmark not defined.
Deliver ................................................................................................................................................. 30
Return .................................................................................................................................................. 30
5.9 Sub department of Supply Chain Management in STL ..................................................................... 31
5.10 Supply Chain Cost of STL: ............................................................................................................. 31

Chapter 06: Performance Evaluation .................................................................. 32

6.1 Performance Evaluation. ................................................................................................................... 33
6.3 Methods for performance measurements .......................................................................................... 33
Balanced scorecard .............................................................................................................................. 33
SCOR model........................................................................................................................................ 34

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 Benchmarking ..................................................................................................................................... 34
System thinking in performance measurements .................................................................................. 35

Chapter 07: Conclusion and Recommendation .................................................. 36

Conclusion ............................................................................................................................................... 36
Recommendations ................................................................................................................................... 36

References ............................................................................................................... 37
APENDIX ............................................................................................................... 39

List of Table
Table 1 : Company Overview ................................................................................................................... 12
Table 2: Achievement ................................................................................................................................ 13
Table 3: Management Apparatus ............................................................................................................ 13
Table 4: Audit Committee ........................................................................................................................ 14
Table 5: Management commitee .............................................................................................................. 14
Table 6: Company Secretary .................................................................................................................... 14
Table 8: Legal Advisor .............................................................................................................................. 15
Table 9: The standard of quality measuring method ............................................................................. 29
Table 10 The method of finding curding standardization .................................................................... 29
Table 11: The method of finding standardization cotton count ............................................................ 29
Table 12: The method of finding Standardization sliver ....................................................................... 29
Table 13: The method of finding standardization drawing ................................................................... 30
List of Figure
Figure 1: Factors of Methodology .............................................................................................................. 4
Figure 2: Factors of SCM ........................................................................................................................... 6
Figure 3: The Finishing department of STL ........................................................................................... 11
Figure 5: The process of SCM .................................................................................................................. 19
Figure 6: Process flow of SCM activities ................................................................................................. 20
Figure 7: Common factors of SCM .......................................................................................................... 25
Figure 8: Production process of STL (Own structured) ........................................................................ 26
Figure 9: The flow process of bowing unit .............................................................................................. 26
Figure 10: Process of Curding Unit ......................................................................................................... 27
Figure 11: Procurement process .............................................................................................................. 28
Figure 12: Performance of SCM .............................................................................................................. 32

..

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Chapter 01: Introduction

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1.1 Introduction
In today’s world of globalization many apparel retailers are building strong supply chains to gain
advantage over their competitors by offering the best value to their customers. The supply-chain
management (SCM) has become very critical to manage risk, dynamism, and complexities of
global sourcing. A totally integrated supply chain is required for the company to get gain the
maximum benefits. The objectives of the supply chain and the performance measurements need
to be understood in order to build the most effective supply chain. Performance measurements
provide an approach to identify the success and potential of supply management strategies. One
major aspect of the SCM is to select the right sources of supply in the global business
environment that can support corporate’s strategy. Contrary to the conventional adversarial
relationships, effective SCM in the new competition suggests seeking close relationships in the
long term with less number of partners. Considering the rapidly changing market conditions and
customer seeking the best value, long-term relationships with the vendors became very critical in
the apparel industry. Therefore the apparel retailers are looking for the vendors who can provide
the best cost in the fastest way. Such a relationship is regarded as partnership since it includes
activities such as information sharing, joint product design, or sharing storage spaces. The
purpose of this report is to emphasize the importance the vendor-selection problem and its
relation to the supply-chain strategy.

1.2 Origin of the Study

This report on Supply chain Management practices in Textile Industry: A case study on
Sonargaon Textiles Ltd. Rupatali, Barishal is initiated as a part of the Internship Program
which is required as a student of Bachelor of Business Administration to conduct a practical
orientation in any organization. For fulfilling the requirements I have done the 90 (03 months)
days internship Program at the Sonargaon Textiles Ltd, Rupatali, Barishal. The report is
generated under the supervision of Nusrat Sharmin Lipy, Lecturer, Department of Management
Studies, University of Barisal.

1.3 Rationale of the Study

Bangladesh as a developing economy has a lot left to be desired and there are lots of scopes for
massive improvement. Garments industry is a biggest source of earning remittance. In an
economy like this, Industrial sector (especially Textiles industry) can play a vital role to improve
the overall economic and social condition of the country. Supply chain management
encompasses the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities. There is believed in our
country that practices of supply chain management is strictly followed in jargon or established
industry. But small or new born industry does not follow supply chain management properly or
scientifically as a result those industry are not sustaining long time or not creating business gap.
But an industry can create enough business space by practicing supply chain management
.Realizing the importance of supply chain management practices in textile industry, I have
chosen this topic for my internship report. I believe this report will help to learn about supply
chain management and importance of supply chain management practices especially of textiles
industry in Bangladesh.

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1.4 Objectives of the Study
The objectives of the study will be divided into two parts, which are as follows:

Specific Objective

The main objectives of the report is to examine ,evaluate and analyze supply chain management
process and practices as well as identify key challenges and how they can be addressed.

Secondary Objective
 Evaluating the importance of Supply Chain Management Practices from organization’s
point of view
 Analyzing the performance of production department and its sub related department.
 Comparing the supply chain management activities of STL with other renowned.
 Getting the practical knowledge about textile sectors and its environment.
 Evaluating the performance of SCM and the procedure to deals with their consumers.
 Identifying some recommendations to overcome the related problems about SCM.

1.5 Scope of the study

This study analyses the meaning of Supply chain management based on some theories available
in literature. Supply Chain Management is evolving in its meaning and practice. The study
discusses the role of supply chain management in Industrial development. Supply chain
management is presently one of the most discussed topics. The purpose of the study is to provide
deep understanding about the benefit of supply chain, accountability and show steps taken by the
organization to sustain in global and competitive business world. The study has been taken to
observe different supply chain management areas of other textile industry in Bangladesh and its
contribution. This study found supply chain management of textiles industry of Sonargaon
Textiles Limited as well as others in Bangladesh. The study reveals that textiles industry of
Bangladesh are trying to swell their Contribution to accordance with their performance.

1.6 Limitations of the Study

Many limitations and constraints restricted the study work several time which, if absent, could
make the effort fully successful. The limitations are as follows

 Due to lack of time

 Difficult to verify the accuracy of the collected data
 It was so difficult to collect the adequate and real data from the assigned organization
 Improper combination among various department
 Adequate books, publication and journals were not available
 The officials were very busy .They could me very little information to cover such broad
functional area of a company
 I carried out such a study for the first time, so inexperience is one of main constraints of
the report

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 Chapter 02: Methodology of the Study

Figure 1: Factors of Methodology

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2.1 Methodology of the study
This report is prepared with several information and practical work experience. The sources of
data of this report can be divided into two categories. One is primary and another is secondary
sources. The primary data gathered through discussing informally with Sonargaon Textiles
personnel. Some secondary data also have been used to make the report more concrete.

2.2 Type of report

This report is exploratory in nature focusing on qualitative analysis and description.

2.3 Population and Sample:

The population covers about 1889 regular workers as well as staffs.

2.4 Sample Size:

I have taken 30 sample size in various departments of Sonargaon Textiles Limited, Rupatali,
Barishal.

2.5 Sampling method:

Data have been collected through interview, conversation of previous documentary, evidence.

2.6 Select variables:

Dependent variables:

Our dependent variables are production (What products does the market want? How much of
which products should be produced and by when?)

Independent variables:

Inventory: (What inventory should be stocked at each stage in a supply chain? How much
inventory should be held as raw materials, semi-finished products?) Location: (Where should
facilities for production and inventory stage be located? Where one of the cost efficient locations
for production and for storage of inventory?) Transportation: (How should inventory be moved
from one supply chain location to another?) Information :( How much data should be collected
and how much information should be shared?)

2.6 Statistical Tools/Software Used

The main statistical tools used for the collection and analyses of data project are

Chart

Table

Microsoft Excel

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 Chapter 03: Theoretical Framework of SCM

Figure 2: Factors of SCM

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3.1 The origin of SCM
The earliest appearance of the term supply chain management as we know it today published in
recognized media and literatures can be traced back to the early 1980s. More precisely, it first
appeared in a financial times article written by Oliver and Webber in1982 describing the range of
activities performed by the organization in processing and managing suppliers. However the
earlier publications of supply chain management in the 1980s were focused on purchasing
activities. The major development and significant increases of publication in the areas of supply
chain integration and supplier buyer relationship came in 1990s when the concept as we know it
today was gradually established.

3.2 Definitional Analysis of SCM

Supply chain management (SCM) is the broad range of activities required to plan, control and
execute a product's flow from acquiring raw materials and production through distribution to the
final customer, in the most streamlined and cost-effective way possible. SCM encompasses the
integrated planning and execution of processes required to optimize the flow of materials,
information and financial capital in the areas that broadly include demand planning, sourcing,
production, inventory management and storage, transportation or logistics and return for excess
or defective products. Both business strategy and specialized software are used in these
endeavors to create a competitive advantage. Chopra and Meindl (2007, p.3) believes that “a
supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer
request. Within each organization, such as a manufacturer, the supply chain includes all functions
involved in receiving and filling a customer request. These functions include but are not limited
to new product development, marketing, operations, distribution, finance, and customer service.
Chen and Paul raj (2004) stated that- a typical supply chain is a network of materials,
information, and services processing links with the characteristics of supply, transformation and
demand. There are three traditional stages in the supply chain: procurement, production and
distribution. Each one of these stages may be composed of several facilities in different locations
around the world (Thomas and Griffin, 1996). For example, in automotive industry assembly
plants are located in others countries than suppliers of different components and distribution is
worldwide. Mentzer et al. (2001, p. 4) describes a supply chain as “a set of three or more entities
(organizations or individuals) directly involved in the upstream and downstream flows of
products, services, finances, and/or information from a source to a customer”. Shapiro (2001)
writes that the traditional objective of SCM is to minimize the total Supply Chain Cost to meet
fixed and given demand.
This total cost may include the following

 Raw material and other acquisition costs.

 Inbound transportation cost
 Facility investment costs
 Direct and indirect manufacturing cost.
 Direct and indirect distribution cost
 Inventory holding cost

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  Interfaculty transportation cost
 Outbound transportation cost

3.3 Importance of SCM:

Supply chain management creates efficiencies, raises profits, lower costs, boost collaboration and
more. SCM enables companies to better manage demand, carry the right amount of inventory,
deal with disruptions, keep costs to a minimum and meet customer demand in the most effective
way possible. These SCM benefits are achieved through the appropriate strategies and software
to help manage the growing complexity of today's supply chains.

3.4 Common Factors of SCM

There are a lot of factors to consider when deciding how to set up a Supply chain. Mattson
(2002) mention:
 Number of suppliers
 Number of sub suppliers. Module suppliers or many sub suppliers
 Distance to supplier
 Size of supplier
 Co-operation with the supplier
 Direct shipments
 Storage location local, regional or central
 3PL (third-party logistics) distributors (provides logistics services to other companies)
 Number of distribution alternatives

3.5 SCM (Supply Chain Management) Processes

Supply chain activities aren't the responsibility of one person or one company. Multiple people
need to be actively involved in a number of different processes to make it work.
 Planning – the plan process seeks to create effective long- and short-range supply chain
strategies. From the design of the supply chain network to the prediction of customer
demand, supply chain leaders need to develop integrated supply chain strategies.
 Procurement – the buy process focuses on the purchase of required raw materials,
components, and goods.
 Production – the make process involves the manufacture, conversion, or assembly of
materials into finished goods or parts for other products. Supply chain managers provide
production support and ensure that key materials are available when needed.
 Distribution – the move process manages the logistical flow of goods across the supply
chain. Transportation companies, third party logistics firms, and others ensure that goods
are flowing quickly and safely toward the point of demand.
 Customer Interface – the demand process revolves around all the issues that are related
to planning customer interactions, satisfying their needs, and fulfilling orders perfectly.

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3.6 Seven Principles of SCM
 Principle1: Segment customers based on the service needs of distinct groups and adapt
the supply chain to serve these segments profitably.
 Principle2: Customize the logistics network to the service requirements and profitability
of customer segments.
 Principle3: Listen to market signals and align demand planning accordingly across the
supply chain, ensuring consistent forecasts and optimal resource allocation.
 Principle4: Differentiate product closer to the customer and speed conversation across
the supply chain.
 Principle5: Manage sources of supply strategically to reduce the total cost of owning
materials and services.
 Principle6: Develop a supply chain-wide technology strategy that supports multiple
levels of decision making and gives clear view of the flow of products, services, and
information.
 Principle7: Adopt channel-spanning performance measures to gauge collective success in
reaching the end-user effectively and efficiently

3.7 Common Challenges of SCM

The Supply Chain Council is assisting companies to take a close look at their supply chains in
rooting out some major inefficiency. Their mission is advancement of supply chain knowledge
and how to apply it in solving problems. Some of the following are challenges faced in a supply
chain and how the supply chain council proposes to assist in solving them:
 Customer service is very important in the supply chain in delivering the right product, in
the right condition, right quantity, right price, right location, right time, and right
documentation. It does sound simple and straightforward but indeed, it is not. The council
offers a supply chain operations reference model, which create a foundation for
improvement. It will assist in evaluating cost performance; develop strategies for meeting
customer expectations and respond to global as well domestic.
 Cost control which are constantly under pressure in any supply chain and the council
offers their SCOR mark-benchmarking portal in order to provide organizations with
metrics as the basis in measuring.
 Supplier and Partner relationship management is the other challenge addressed by the
council with their SCOR program. Organizations as well as department inside an
organization have their own methods in communicating and measuring performance
results and expectations. They offer a common language across all boards from the
classification and analysis of a supply chain. The use of a common language and
framework make communications easier between teams enhances evaluation of best
practices and speed up benchmarking efforts.

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3.8 Supply Chain Management Software
Years ago, before the Internet took over all basic technology and doing things such as managing
inventory manually, supply chain managers used to battle to make their supply chains run
effectively and smoothly. Software devotees made it possible for companies and organizations to
connect their own supply chains with those of customers and suppliers and with this vast network
they can optimize opportunities and costs for everyone. With the installation of supply chain
management software, companies can choose to share data with suppliers as this eliminates too
much stock or too little stock. Suppliers as well as manufacturers know exactly how much to
supply and demand from another and manufacturers knows exactly how much to manufacture
whilst the supplier knows how much to stock. A retailer eliminates empty shelves if they share
information with manufacturers and the accuracy of supply chain management software enables
the manufacturing and shipping of only as many of a specific product as there is a market for.
This enables companies to reduce inventory amounts they keep and significantly reduce costs,
but companies have to find the package which is right for them. Some companies track supply,
demand, logistics, manufacturing status and distribution for example and they may need to share
data with suppliers. Supply chain managers must accurately enter information into supply chain
management software otherwise their supply chain will never work or balance as the software is
only as good as the person adding the data to it. By installing supply chain management software
a producer manage all calculation insist of manual method.. Proper management of a supply
chain will be cost effective and productive and no more excess goods will be stores or paid to be
produced where there is no demand.

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 Chapter 04: Organization Profile

Figure 3: The Finishing department of STL

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Sonargaon Textiles Ltd. (STL) established in the year 1985, is basically a spinning project in
textile sector. It is the biggest textile concern in entire South Bengal. STL produces 100% cotton
yarn. It has generated employment opportunity for more than 2,000 workers including the
officials of different desks. It has been offering dividend regularly. It is financed by different
banks (both Nationalized & Private). It produces cotton yarn of different counts for knitting &
weaving.

4.1 Key Information of Sonargaon Textiles Limited

Table 1 : Company Overview

01 Name of the Industry Sonargaon Textiles Limited, Rupatali

,Barisal

02. Statutory Auditor M/s. G. Kibria & Co. Bangladesh ,Chartered

Accounts, Sadaran Bima(5th Floor),24-25 ,
Dilkuska Commercial Area ,Dhaka-1000,
Bangladesh

03. Financed by Development Bank, Rupali Bank, Mutual

Trust Ltd.

04. Insurance Central Insurance Limited, Golden Life

Insurance Li

05. Nature of Product 100% Cotton Yarn

06. Registered Office Rupatali, Barisal

07. Factory Location Rupatali, Barisal

08. Corporate Office Khan Sons Centre (8th & 9th Floor) ,37,
Kawran Bazar Commercial Area

09. Telephone (Factory) +0431 71296, + 0431 71219(Fax)

10. Telephone (Head Office) +880-2-55013501, 55013597(PABX)

+880-2-55013498(Fax)

E-mail:[email protected]

11. Website www.khansonsgroupbd.com

12. Legal Status A Public Limited Company incorporated in

Bangladesh under the Companies Act,
1913(now the Companies Act 1994

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13. Listing Dhaka Stock Exchange Limited ,Chittagong
Stock Exchange Limited

14. Book Value Taka. 28.94

15. Authorized Capital Tk. 500,000,000.00

16. Paid up Capital Tk. 264,670,560.00

17. Face Value per Share Tk. 10.00

18. Number of Share 24,647,560

19. Installed Machinery Capacity Spindles 71,136 Rotor 672

20. Production Capacity 5,935 MTs

4.2 Corporate Achievements

Table 2: Achievement

Year Name of award

1985 Year of Incorporation Year of Commercial Production

Year of Commencement

1993 Year of Commercial Production

1995 Year of Incorporated as a Public Limited Company

Listing with Dhaka Stock Exchange Limited

Listing with Chittagong Stock Exchange Limited

4.3 Management Apparatus

Table 3: Management Apparatus

Board of Directors

Mr. A K M Azizur Rahman Chairman

Mr. Md. Bazlur Rahman Managing Director

Mrs. Rosy Rahman Director

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Mr. Md. Aminul Quader Khan Director (Nominated by ICB)

Mr. Mohammad A. Hafiz Independent Director

Table 4: Audit Committee

Audit Committee

Mr. Mohammad A. Hafiz Chairman

Mr. Bazlur Rahman Member

Mr. Md. Aminul Quader Khan Member

Table 5: Management commitee

Management Committee

Mr. A K M Azizur Rahman Chairman

Mr. Md. Bazlur Rahman Member

Mr. Anwar Hossain Member

Mr. Md. Monir Hossain Member

Mr. Mostafa Member

Mr. Arjun Chandra Paul Member

Table 6: Company Secretary

Mr. Md. Monir Hossain

Table 7: Management Team

Mr. Anwar Hossain Executive Director

Mr. Salauddin Chowdhury Project Director

Mr. Md. Monir Hossain Company Secretary & Admin

Mr. Md. Mostafa Chief Financial Officer

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Mr. Arjun Chandra Paul AGM (Marketing & Fund)

Mr. Soumen Kundu AGM (Production & Quality)

Mr. Obaidul Gani Manager (Maintenance)

Table 7: Legal Advisor

Mr. Zainal Abedin, Advocate, Supreme court of Bangladesh, Dhaka, Bangladesh

4.4 SWOT analysis of Sonargaon Textiles Limited

SWOT analysis is a widely used tool for understanding internal strengths and weaknesses as well
as external threats and opportunities of an industry and organization. It also helps to determine
the competitive position in the market. The SWOT analysis of STL is given below:
Strength

 Having experienced and dynamic management officials to conduct the production process
effectively
 Sufficient production capacity within the factory
 Following proper supply chain management

 Sonargaon Textiles Limited has strong reliability to the clients

 Getting support from local and worldwide textiles industry

 Getting special benefits from government as a rural industry

Weaknesses

 Delay in case of delivering sample

 Lack of capital to extend its area to attract foreign customers

 Difficulties to cope with upgradable new technology

 Lack of new automated and modern machineries

 Lack of skilled and technical know-how personnel

 Lack of power and gas supply

 High transportation cost

 Lack of safety management practices

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Opportunities

 Labor cost and sound cooperation has always been an opportunity for Textiles sector.
 Production of high quality of Yarn.
 Textiles industry has the fastest growth rate with the RMG sectors.
 Emergence of joint venture projects.
 Establishment of joint venture projects
 Great possibility to increase infrastructural development in Barishal region.
Threats

 Emerging market of China and India and some few African countries.
 Increased competition with local textiles industries.

 Political unrest is a notable threat to the smooth function of advance Textiles Ltd.

 Few unwanted occurrences (Fire breakout in Tazreen garments, Rana Plaza incident and
Holy Artisan) have affected the image in the world.

 Rising price of raw material

 To pay more than two times the amount of electricity bills compared to the same nature
and ranges of factories which is powered by gas.

4.5 Common Supply Chain Management of STL

Figure1: supply Chain Management process of STL

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4.6 More Information about STL:

Principal Activity:
The Company owns and operates a textile spinning mill comprising 3 units of unit-1, unit-2 and
unit-3 and its principal activities and operations are manufacturing of 100% cotton yarn of
different counts.
Human Resources:
STL considers its human resources as the most important asset. STL offers opportunities for both
professional & personal development to its employees. It practices a work environment of trust,
co-operation & collaboration. We do so to develop the skills & enthusiasm of our employees to
make the company achieve on a sustainable basis. STL’s Human Resources strength at the end of
30 June 2017 stood at 1,889. STL has created a great scope of women empowerment. About 70%
female are selected for the workers team.
Facility
Sonargaon Textiles Limited has about 5000 square feet areas and the entire floor has been tiled
using industrial reflective tiles which have ability to reflect light and also maintain the floor
cleanliness. Each of the sections is clearly marked with yellow and red markings and there is a
clear bifurcation between working areas and passage areas. Sufficient space has been allocated so
that there is no hindrance and all work areas are safe. Safe drinking water is provided on the floor
and there is a routine check on the quality of water as well. Ceiling fans are provided for good
circulation of air and also maintain the temperature accordingly. The organization has owned
transportation system for their workers.
Employment policy
Employment policy is the most important policy in every organization. Sonargaon textile follows
a common policy for employment. For employment they follow two ways. One for employees
and another for managers. In employees perspective they hang upon a banner in front of their
organization. Whereas they provide advertisement in their website for recruiting new managers
and officials. The whole policy is conducted by the permission of project director. Most of the
employees said that this policy so fruitful and accurate
Quality policy
Sonargaon textile is a spinning based factory. Its main objectives is to produce quality product.
For this they opened a quality control department. This department control the quality of the
product. They are concerned about their quality because their product is exporting oversees. On
the other hand by attaching foreign customers they produce standard quality product
Waste policy
Sonargaon textile producing a lot of waste every year but they are very much concerned about
the waste disposal. They maintain environmental regulation and do not dispose their waste in the
river. They manage it in a scientific way.
Salary system
Employees in Sonargaon get their salary in monthly basis. They get it on the basis of their total
working hour. Salary is low in comparison to Dhaka city. Here working hour is high but salary is
low. For this, every year a lot of employee turn out the organization although another facilities
are good.

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Managerial behavior
Managerial behavior is good enough for the employee. Managerial body always show good
character to the employee. But in case of poor salary system organization can’t retain their
employee.
Medical facility Most of the employee claims that medical facility is outstanding in the organization. In
working time if anyone seriously injured then organization take necessary step to recover it. Besides,
Sonargaon provide transportation facilities, training facilities and many other facilities to the employees
Social accountability
Without social awareness no organization can’t reach their goal. Society and their people are the
main stakeholder in an organization. So, organization must focus on the society, environment,
and donation in welfare activities and so on. Sonargaon textile is very much concern about
environment. They provide job opportunities to the people of southern part of Bangladesh. More
ever they provide intern facilities to the university and textile students. They also provide training
facilities to the outsider people. Sometimes they raise their help to build a mosque, temple and
many welfare activities.

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 Chapter 05: Supply Chain Management Practices in STL

Figure 4: The process of SCM

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5.1 Supply Chain of STL

Supply chain of STL is complex and supply chain department is trying to maintain efficiency
because its main aim is to achieve organizational goal by reducing cost and maintaining the 5 R
(To ensure to procure the right product at the right price in the right time with the right quality
and deliver to the right place). The team of supply chain is responsible for procurement all items
required by the concern departments coordinating with sales and marketing, finance, store &
logistics and other functional department. The supply chain of STL involves procuring all the
items and stores those items to warehouse. Planning, warehousing, inventory management,
distributions and logistics support are also involved some way with supply chain.

5.2 Process flow of the supply chain activities of STL

Annual sales
Objective Forecasting
plan

Final Materials
Procurment
procurment requirement
plan
process planning

Product
Storing Distribution
received

Figure 5: Process flow of SCM activities

Figure: Process of SCM

Objective of STL: The supply chain process of STL starts when the goal is set by the
management. The organizational goal is set by the management discussing with the head of the
functional department and approved by the monthly Executive Committee meeting.

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Annual Sales Plan: Based on the organizational goals of the company, Sales and Marketing
department set their annual sales plan.

Forecasting: Sales and Marketing department prepare rolling forecast every month based on
market demand and sales trend. They update this rolling forecast and send to supply chain
department. Supply Chain Department prepare the material requirement planning.

Material Requirement Planning: The Material requirement planning is a report containing the
requirement of major items as per monthly consumption. Usually the minor Materials are not
mentioned in this report.

Procurement Plan: Based on the Material Requirement Planning the Supply Chain department
prepares the procurement plan. As per the company policy all imported materials are kept stock
for 2.5 months and local materials are kept stock for 07- 30 days based on the availability, lead
time and nature of the goods.

Procurement process: Considering the inventory status and sales forecast the supply chain starts
the procurement process and places order for the materials and ensures uninterrupted supply of
all materials.

Receiving & Storing: Purchased materials are received by Stores and arrange to store after
ensuring the quality of goods as per our requirement by the concern department.

Distributions: STL has a wide range of distributions network. Based on the market demand and
sales forecast and storage then distribute goods through its own transportation, connection
between planning, commercial, warehouse, logistics, and overall supply Chain.

5.3 STL competitive strategy:

STL does not have any written competitive strategy like other local organization for supply chain
but it follows the competitive strategy to be efficient with some extent of responsiveness. This
strategy dictates that the ideal supply chain will emphasize efficiency but also maintain an
adequate level of responsiveness in terms of product availability. STL uses the three logistical
and three cross functional drivers effectively to achieve this type of supply chain efficiency and
effectiveness.

Inventory: STL maintains an efficient supply chain by keeping optimum level of inventory of
major Brands and low inventory for other Brands that are available in market. It maintains
inventory materials based on lead-time, availability and category of product. The other materials
and supplies, STL maintains the very good relationship with suppliers so that these can be made
available within shortest possible time.

Transportation: STL has its own transport facilities. It maintains efficiency with responsiveness
in logistics.

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Facilities: STL maintains the efficiency in facilities.

Information: STL tries to run with the modern technology to compete with competitor having a
high speed internet with backup facility with both head office and outlets to response quickly in
any situation. Whole premises are under control of Close Circuit Camera to monitor the activity
of work centrally both from outlets and from head office. Senior management are continuously
monitoring this.

Sourcing: The supply chain of STL always sources materials, packaging materials to ensure
quality of goods having the best value.

Pricing: STL offers competitive price based on their local competitors ensuring quality of the
goods.

5.4 The method of each unit is connected and works as an overall supply
chain.

A simple supply chain is made up of several elements that are connected the movement of
products along it. In our organization STL, each unit is connected such as planning, commercial,
procurement, warehouse, logistics works as an overall supply chain
Planning: The requirement triggered by the customer’s sales order will be combined with other
orders. The planning department will create an annual plan and procurement plan to procure and
to make stock the products to fulfill the customer’s orders.
Commercial: The commercial department works considering the demand of supply chain. To
meet the goal of supply chain this department works together with the supply chain. It is a part of
supply chain department. The responsibilities of this department are the responsible for supply
chain activities.
Procurement: The procurement department receives a list of materials and sales forecast from
the planning department and from sales and marketing department to complete customer’s
orders. The procurement department then starts process of procurement of materials
Warehouse: The materials are received from suppliers, checked for quality and accuracy and
moved into the warehouse. The supplier will then send an invoice to the company for the items
they delivered. The materials stored until they are required by the sales department and
distributors.
Logistics: When the materials are ready in warehouse, the shipping department determines the
most efficient method to deliver products so that they are delivered on or before the date
specified by customer. When goods are received by customer, the company will send an invoice
for delivering products

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5.5 Procurement policy.
STL does not have any written procurement policy. But company is trying to develop a standard
policy which is under development. Till today procurement functions of the company are
conducted by verbal instruction of top management. Managing Director of the company approves
all purchasing requirement directly and indirectly. The following common steps are implemented
as mentioned:
 Concerned department raises requisition form with approval of concerned person and
arranges final approval from top management.
 Supply chain department collects requisition and sits with concerned department and
receives the specification.
 Supply chain department forms the procurement committee after taking final decision to
procure goods.
 Procurement executive check the local & foreign market to procure goods.
 Procurement committee evaluates the quotation and selects supplier then gives advice to
Supply chain department to procure goods from the selected supplier.
 After completing necessary formalities supply chain department place order giving
delivery schedule.
 Supply chain department issues work order for local procurement and establish
transaction for Customer.
 Supply chain department ensures delivery schedule, quality, quantity and price
monitoring with the supply.
 Supply chain department arrange necessary funds to retire document from bank and
necessary duties and taxes consulting with the finance department to clear goods from
port.
 Supply chain department arrange transport to bring goods from port.
 Supply chain department primarily check the Bill against local procurement and request
the finance department to release payment. After completing the audit finance department
releases payment.
 Supply chain department does all the procurement activities ensuring ethical practices and
supply chain department of STL always welcomes Audit to provide information against
their query.

5.6 Challenges of the Procurement Department

Supply Chain of STL faces some challenges to conduct procurement activities like other
company. Some of the challenges that are faced by STL are mentioned here:

 Sourcing and supplier selection challenge

 Safety and quality challenges

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  Shorter lead time, less inventory and better throughout
 Accessing to latest technology
 New supplier selection, supplier switching
 Transparency and communication challenge
 Lack of resources, fund
 Lengthy process and formalities
 Environment, global and natural challenge
.

5.7 Production Planning and Raw Material Planning:

STL follows two was which helps to perform Supply Chain management practices by Effective
and efficiently

Responsibility of Production Planning Of Supply Chain

1. Maximum utilization of machine
2. Checking of the availability of Raw Materials and MUM (Make up materials)
3. Maintain FIFO
4. If there is buffer stock there is no need to go for producing
Raw Material Planning Responsibility
1. Raw material shifting
2. Plant to plant movement
3. Stock replenishment initiatives

5.8 The supply chain management Practices in STL:

Sonargaon Textiles Limited has a strong supply chain management and produce 100% cotton
yarn. Firstly this organization collects its raw materials from its selected areas. After collecting
raw materials it produces its main products through a systematic way. Those products is directly
transported at Dhaka head office from Rupatali by its own transportation. Performing this
broaden activities other departments help to fulfill their supply management.

Plan
The initial stage of the supply chain process is the planning stage. They need to develop a plan or
strategy in order to address how the products and services will satisfy the demands and
necessities of the customers. In this stage, the planning should mainly focus on designing a
strategy that yields maximum profit. For managing all the resources required for designing
products and providing services, a strategy has to be designed by the companies. Supply chain
management mainly focuses on planning and developing a set of metrics.

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 Plan

Develop Return

Make Deliver

Figure 6: Common factors of SCM

Develop / Source of raw materials

After planning, the next step involves developing or sourcing. In this stage, they mainly
concentrate on building a strong relationship with suppliers of the raw materials required for
production. This involves not only identifying dependable suppliers but also determining
different planning methods for shipping, delivery, and payment of the product. STL needs to
select suppliers to deliver the raw cotton whose require to develop their product. STL basically
collects their raw materials from India as well as Western Africa. So in this stage, the supply
chain managers need to construct a set of pricing, delivery and payment processes with suppliers
and also create the metrics for controlling and improving the relationships. Finally, the supply
chain managers combine all these processes for handling their goods and services inventory. This
handling comprises receiving and examining shipments, transferring them to the manufacturing
facilities and authorizing supplier payments

Make/ Production
The third step in the supply chain management process is the manufacturing or making of
products that were demanded by the customer. In this stage, the products are designed, produced,
tested, packaged, and synchronized for delivery. Here, the task of the supply chain manager is to
schedule all the activities required for manufacturing, testing, packaging and preparation for
delivery. This stage is considered as the most metric-intensive unit of the supply chain, where
firms can gauge the quality levels, production output and worker productivity.

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Production Process of STL
STL always follows a systematic production Method to fulfill their demanded products. About
Five functional sectors is performed to produce its final products. A dynamic team members
always perform their best perform to achieve their goals.

Simplex

Drawing

Blowing cuding cuding Finished

unit Ring Robin Packging
Unit sliver Yern
Drawing
sliver
Bobin
Sliver

Figure 7: Production process of STL (Own structured)

Functions of bowing unit

The belts of cotton are directly stored in bowing department of STL. In bowing department the
belts of pack are opened and separate from each belts from each other by the regular worker.
Everyday 40-50 packs (160-180 kg per pack) are opened for bowing. About 80-90 workers as
well as a skilled officer work in this department. There are a maintenance office to control this all
activities of this department. This department has 8 bowing technical machines. Bowing
department performs their regular production by this way-

Bell opener step opener procopine opener

Figure 8: The flow process of bowing unit

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The prime functions of bowing department

 Selecting count of cotton according the test report by quality control department
 Checking and identifying the balance CV and weight by a senior PO or APO at the first
10 days
 Regulating production and weight lap
 Regulating the quantity of rejections

Functions of curding unit

Curding unit is the second steps of producing STL’s products. This department collects various
sliver from this unit. They are curding sliver, Drawing sliver, Bobbin sliver etc. This unit
produces sliver on the demand of finishing unit without 15% wastage. The capacity of every
machine has 8 drums sliver (27-28 kg at each drum) at per unit time

Curding sliver

Bowing Bobbin Sliver

Unit curding unit
Drawing sliver

Figure 9: Process of Curding Unit

Functions of ring frame unit

After curding unit all kinds of sliver to produce ring frame for producing raw materials of final
products. This unit has 78 machines for producing ring frame. Per machine capacity is 77*6 =462
ring frame per unit time.

Functions of finished department

This is the most important department of all sectors of production yarn in STL. This department
has 7 units including 7 machines operates 70-80 workers as well as 12 officials. This department
produce 11954 pounds per day

Functions of Ware house

Firstly, officer of warehouse receives inventory and retrieved in FIFO, LIFO or expiration date,
and tacked by ID, serial, batch number. Then, product can be hold to conduct inspection. Goods
as per specification or approved sample are identified after inspection. Through inspection
damaged and defective items are also identifies through inspection. After receipt order from head
office, officer of warehouse department starts process to deliver goods as per requirement. The
necessary actions are needed to complete before delivery goods to distributions point. Then, our
warehouse management will manage picking of product at the unit level. Order can be
consolidated or staged pending order completion and/or proper release date. After completion of

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all procedures before deliver the goods, warehouse department arrange for outbound shipment to
full fill customers demand.

Warehouse process flow:

Receiving
and put away

Distribition Inspection

pick -up Storage

Order
processing

Figure 10: Procurement process

STL has own ware house to keep the final products. Every yarn is covered with a plastic poly
bag. Before stored, the 50 yarn is kept in a single plastic bag.

50 𝒔⁄𝟏 & 60 𝒔⁄𝟏 Net yarn (50 pcs) = 45.360 kg

cotton
Paper corn = 2.200 kg

Total weight = 47.560 kg

***weigh of per yarn =0.9512 kg

Quality control department:

Quality control department is one of the most important department in an organization. STL has
own quality control department which controls every steps of processing yarn. This department is
run by 8 skilled officials who are expert in measuring cotton fiber, slivers, ribbon and curding,
c.s.p, drawing, count of cotton etc. This department collects all kinds of raw materials from every

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department tests and measures. After confirmation of this department the other units process their
functions.

Table 8: The standard of quality measuring method

Serial No. Description Measure of Standard

01. Count of cotton 64.8

02. Sliver 3.24

03. Robin 8.01

04. Curding .140

05. Drawing .135

Table 9 The method of finding curding standardization

standard sample 01 sample 02 sample 03 sample 04 average stamdard comment
0.14 23.11 23.11 23.24 23.18 23.16 0.165428571 accept
0.14 19.01 18.09 18.09 19.05 18.56 0.132571429 change
0.14 23.22 23.97 24.12 23.67 23.745 0.169607143 accept
0.14 17.01 20.12 19.76 16.04 18.2325 0.130232143 change
0.14 23.23 23.45 20.54 22.12 22.335 0.159535714 accept
0.14 21.78 22.01 24.71 21.89 22.5975 0.1614107 accept
0.14 21.01 17.11 13.89 23.9 18.9775 0.1355536 change

Table 10: The method of finding standardization cotton count

standard sample 1 sample2 sample 3 sample 4 average standard comment
64.8 1.11 1.06 1.05 1.07 1.0725 69.498 accept
64.8 0.07 0.08 1.09 0.99 0.5575 36.126 change
64.8 1.11 1.01 1.09 1.12 1.0825 70.146 accept
64.8 0.99 1.09 0.98 1.12 1.045 67.716 accept
64.8 1.02 0.87 1.02 0.78 0.9225 59.778 change
64.8 0.89 0.87 0.93 1.02 0.9275 60.102 change
64.8 1.08 0.98 1.14 0.99 1.0475 67.878 accept

Table 11: The method of finding Standardization sliver

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standard sample 1 sample 2 sample 3 sample 4 Average standard comment
3.24 1.23 0.9 0.88 1 1.0025 3.2481 accept
3.24 1.02 0.88 0.47 1.09 0.865 2.8026 change
3.24 1.02 0.87 0.55 0.86 0.825 2.673 change
3.24 1.09 0.99 1.08 1 1.04 3.3696 accept
3.24 1.23 0.76 0.78 0.65 0.855 2.7702 change
3.24 1.67 1.98 0.38 0.67 1.175 3.807 change
3.24 0.99 1.09 0.56 0.89 0.8825 2.8593 change
3.24 1.08 0.97 0.54 0.87 0.865 2.8026 change
3.24 1.98 1.04 0.67 0.56 1.0625 3.4425 accept

Table 12: The method of finding standardization drawing

standard sample 1 sample 2 sample 3 sample 4 average stanard comment

0.135 25.32 25.08 25.09 25.12 25.1525 0.186315 accept
0.135 21.09 24.08 24.05 25.12 23.585 0.174704 change
0.135 25.02 25.08 25.05 25.12 25.0675 0.185685 accept
0.135 25.32 25.48 24.05 25.12 24.9925 0.18513 accept
0.135 25.12 25.08 24.07 25.12 24.8475 0.184056 accept
0.135 18.09 21.09 22.09 23.9 21.2925 0.157722 change
0.135 25.19 25.08 23.09 24.09 24.3625 0.180463 accept
0.135 23.98 23.08 25 24.09 24.0375 0.178056 accept
0.135 21.02 19.09 23.09 24.09 21.8225 0.161648 accept

Deliver
The fourth stage is the delivery stage. Here the products are delivered to the customer at the
destined location by the supplier. This stage is basically the logistics phase, where customer
orders are accepted and delivery of the goods is planned. The delivery stage is often referred as
logistics, where firms collaborate for the receipt of orders from customers, establish a network of
warehouses, pick carriers to deliver products to customers and set up an invoicing system to
receive payments. STL has own transportation. It has 4 trucks for transporting final products
from Barisal. This organization delivered this final products to Dhaka head office. The head
office basically supplied this products to various RMG sectors on the demand of the suppliers.

Return
The last and final stage of supply chain management is referred as the return. In the stage,
defective or damaged goods are returned to the supplier by the customer. Here, the companies
need to deal with customer queries and respond to their complaints etc. This stage often tends to
be a problematic section of the supply chain for many companies. The planners of supply chain
need to discover a responsive and flexible network for accepting damaged, defective and extra
products back from their customers and facilitating the return process for customers who have
issues with delivered product.

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5.9 Sub department of Supply Chain Management in STL
 Commercial Department
 Accounting Department
 Quality Department
 Store Department
 Security Department
 Maintenance Department
 Others Department

5.10 Supply Chain Cost of STL:

 Order handling
 Purchasing
 Stock handling
 Manufacturing
 Production cost
 Transportation cost
 Warehousing cost
 Inventory carrying cost
 Internal material handling cost

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 Chapter 06: Performance Evaluation

Figure 11: Performance of SCM

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6.1 Performance Evaluation.
Performance measurements or evaluations are becoming more and more important when SCM is
coming into focus. Neely (1999) presents 7 drivers for the increasing interest in performance
measurements.

 The changing nature of work

 Increased competition
 Specific improvements initiatives ex JIT, TQM, BQR (Business process reengineering)
 National and international quality awards
 Changing organizational roles changing from control to empowering employees by
management by objectives.
 Changing external demands. Firms in the public sector must present information about
their performance.
 The power of information technology
.
6.2 Types of performance measurements
Performance measurements based on financial accounting have for a long time
been the primary tool according to Adams et al. (1995). The changes in the
business environment from controlling of cost to customer value have changed the
focus in performance management.

 Quantitative and qualitative measurement

 What level SCM should be measured?
 Financial and non-financial measurement
 What measurement should be included?
 Internal and external measurement

6.3 Methods for performance measurements

Balanced scorecard
The Balanced Scorecard is a framework for measurements of the performance in an
organization. The scorecard includes both financial and non-financial data. There is
no general definition of what measurements that shall be included in the scorecard.
The measurement criteria differ between companies and also between departments
in the same company. Kaplan and Norton (1996) have identified four general
categories:

 Financial measures

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  Customer-related measures
 Internal performance
 Learning
Financial measures focus on economic value added and return on investment.
Customer-related measures are customer satisfaction and market share. Internal
performance includes quality, response time and cost measures. The learning
category includes employment aspects such as skill development, retention and information.
The Supply chain mission shall be linked to the balanced scorecard framework. Management
decides what shall be included in the scorecard. The scorecard can for example be divided into
areas like financial, customer, competitive position, internal efficiency and employee.

SCOR model
The Supply chain Council has developed the SCOR model. The model is a reference model and
SCOR stands for Supply Chain Operations Reference. The purpose for the model is to:

 Provide a standard language for SCM that can be used cross-industry

 Facilitate external benchmarking

 Establish a basis for analyze of Supply chains

 Compare the current Supply chain with the target for the future

The aim of SCOR is to provide a standard way to measure Supply chain performance and to use
common metrics to benchmark against other organizations according to Christopher (1998).

The SCOR model is based on four management processes

 Plan: balances Supply and demand

 Source: procurement of products and services
 Make: transforming of products and services into finished goods
 Deliver: delivery of products and services.

The SCOR model has three levels:

 Top level: defines the scope and content for the Supply chain.

 Configuration level: designs the Supply chain

 Process element level: gives detailed information on each process.

Benchmarking
A formal definition of benchmarking is that it consists of a systematic procedure for identifying
the best practice and modifying actual knowledge to achieve superior performance according to
Camp (1989). Benchmarking is a process for comparison against best practice. It is important

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with common metrics that can be used when comparing companies. Benchmarking has five basic
purposes described by Splendolini (1992):
 Strategy: planning for short and long term
 Forecasting: predict trends
 New ideas: stimulate new thoughts
 Process comparisons
 Setting objectives and targets: base them on best
practice
Benchmarking can be used both internally within the own company and externally. The internal
benchmarking can be used to compare different departments, but also the check how one
department change over time. External benchmarking can be used to compare the own company
with competitors or with companies that have high performance.

System thinking in performance measurements

Beamon (1999) discuss the weakness of single Supply chain measurements. Beamon concludes that the
most common weakness of a measurement is that it not covering the whole scope. It must measure all
related aspects of the Supply chain and not be sub optimized.

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 Chapter 07: Conclusion and Recommendation
Conclusion
A chain is as strong as all its rings are. A chain is as weak as one of its ring is weak i.e.one
single ring is more than enough to make the whole chain system dysfunctional. With the
development of the service sector and enhancement of industrial wage, cutting and stitching
operation was shifted to more profitable destinations. In the value chain of the textiles business,
production lies at the bottom, whereas this is the most critical and complex part of the business.
Services like research and development, design, purchasing all these pre-production intangible
functions and marketing, distribution, sales, etc. postproduction intangible activities in textiles
business carry a higher value than production - only tangible activity in the business chain. In the
global value chain as a manufacturer, Bangladesh performs the lowest value retention functions.
Textile industry in our country so far has been enjoying very clear price competitiveness. The
rate of minimum wage in our country is still lowest among our competitors. But we have huge
pressure on lead time. Without proper management, in supply chain, only wage competitiveness
can’t ensure a sustainable business. So in present day’s situation, undisrupted supply chain and
proper planning can enhance our market share undoubtedly. STL always tries to cope up with the
completive market. STL produce their products as demand of present market of our country. It
collects their raw materials from various place and produce cotton yarn by following strong
monitoring .Each debarment connects each with other and meets their goals . STL believes that
Chief labor does not help if they are not efficient. Only minimum wage competitiveness will not
guarantee future business. Supply chain bottleneck develop needed. Earlier less than 40%
efficiency, the price was more flexible, now above 50% efficiency factory run.

Recommendations
1. They should bring an innovative product in the market
2. STL Should establish Research and Development department to meet global market
3. STL should promote automatic machinery.
4. Production capacity should be increased to respond in increased demandable markets.
5. STL should develop well defined corporate vision and mission.
6. They should increase promotional activities to concern their customer.
7. They should follow systematic warehouse and supply local supplier in Barisal.
8. They should arrange training Supply Chain Management program to their workers.
9. Electronic Data Interchange (EDI) can be implemented to increase productivity, reduction of
lead time, inventory reduction, increase accuracy and facilitation of JIT.

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 References
1. Adams, S. M., Sarkis, J. & Liles, D. (1995). The development of strategic performance
metrics. Engineering Management Journal, Vol. 17, No. 1, pp. 24-32.

2. Stockholm Atkinson, A. A., Waterhouse, J. H. & Wells, R. B. (1997). A stakeholder approach

to strategic performance measurement. Sloan Management Review, spring, pp. 25-37.

3. Ayers, J. B. (2001). Handbook of Supply chain management, St. Lucie Press, USA, Florida.

4. Ballou, R. H. (2004). Business logistics/Supply chain management: planning, organizing, and

controlling the Supply chain (5 Ed) Pearson Prentice Hall, Upper Saddle River, N.J.

5. Bancroft, J. A. Seip, H. & Sprengel, A. (1998). Implementing SAP R/3. Manning Publications
Co, USA Beamon, B. M. (1998). Supply chain design and analysis: models and methods.

6. International Journal of Production Economics, Vol. 55, pp. 281-294.

7. Beamon, B. M. (1999). Measuring Supply chain performance. International Journal of

Operations & Production Management, Vol. 19, No. 3, pp. 275-292.

8. Bowersox, D. J. & Closs, D. J. (1996). Logistical Management – The Integrated Supply Chain
Process, McGraw-Hill Companies Inc., New York.

9. Camp, R, C. (1989). Benchmarking: The Search for Industry Best Practices That Lead to
Superior Performance. New York: Quality Resources.

10. Chibba, A. (2007). Measuring supply chain performance measures – prioritizing performance
measures.

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Knitting Ltd. Global Disclosure of Economics and Business, 3(1), 93-108

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Chain Management, an International Journal of Supply Chain Management, UK, Vol 6, No. 5.
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growing Textile Economy, Textile World Asia, January, 2006
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17. Samar Verma, Supply Chain in Indian Textile Industry, IUP Publications Online, January
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Kindersley Pvt. Ltd.
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 APENDIX

SURVEY ON

Dear Sir,

I am Mohammad Tariqul Islam, a student of Barisal University, Department of Management

studies. Here is my some question about “Supply chain management Practices in Textile
industry: A case study on Sonargaon Textiles Limited, Rupatali, Barishal.” Your valuable
information will help me prepare an internship report of BBA program.

per

1) Do you have any specific requirements for the supplies to source the raw materials for
manufacturing products?

………………………………………………………………………..

2) Regarding the quality of the product, do you have perform the re-check?

…………………………………………………………………………….

3) Is there any solutions if the supplies fails to meet up the shipment deadline?

…………………………………………………………………………..

4) Do you interact with the buyer frequently?

…………………………………………………………………………

5) Do you have source the cotton and accessories for order from local?

…………………………………………………………………………….

6) Do you face any problem in the shipment process?

………………………………………………………….

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7) How many days are involved from sample development stage to final sample approval stage?

…………………………………………………………….

8) When and which stage of the manufacturing process do you check the quality of product?

……………………………………………………………

9) How much is involved for cutting, production, quality check, packaging for shipment?

…………………………………………………………………………..

10) How much time does it take to source the raw materials?

……………………………………………………………………………

11) What about the total led time for an order?

……………………………………………………………………………..

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