Supply Chain Management: Junaid Jamshaid (J.)

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SUPPLY CHAIN

MANAGEMENT

JUNAID JAMSHAID (J.)


GROUP MEMBERS PROFILE:

UMER ANJUM KHAN SAAD HABIB


– B.E ELECTRONICS (NED) – BS Electrical Engineering (FAST-NU)
– Technical Support Engineer at – Project Engineer at Future Gulf Tech.
Jeanologia Cont. (Currently Working at Oxford
– About Jeanologia: Jeanologia is an University Press Pakistan for 11kV
innovative and multicultural Substation Project)
company with over 20 years of
– About FGTC: Future Gulf Tech. Cont. is
experience in the development of
sustainable and eco-efficient basically a Project management and
technologies for the finishing consultancy company locally operating in
industry. Pakistan. Providing services since 2014.
INTRODUCTION TO J.
– J. was established in 2002 with a unique philosophy to
revive the country's cultural heritage and make Shalwar
Kameez; the popular wear, and soon became one of the
most famous and recognizable clothing brands in South East
Asia.
– It expanded its store network to 100+ outlets nationwide. J.
has further expanded globally by opening 20 outlets in the
UK, Australia, Canada, New Zealand, UAE, Qatar, to name a
few.
– We pride ourselves on being a complete apparel brand that
deals in eastern wear, perfumes, footwear and accessories
for women and men of all ages. We work in different
categories and textures like silk, chiffon, cotton, cambric,
lawn and fabrics that suit the season.
PRODUCTS AND SERVICES

COLLECTIONS FOR:
 MEN: Waistcoat, Kameez Shalwar, Kurta Pajama, Unstitched Fabric etc
 WOMEN: Kurti , Lawn (unstitched & stitched), Silk Collection, Hand-Woven
Collection, Trouser, Jewellery and Shoes
 BOYS AND GIRLS
FRAGNANCES
MAKEUP
CATALOUGE
SUPPLY CHAIN MODEL OF J.
Supply Chain consists of all parties involved directly or indirectly in fulfilling a
customer request. It includes supplier, manufactures, retailers, transporters,
warehouse and costumer themselves.

– The Supply Chain of J. consists of following parties

– Fabric Vendors
– Button suppliers
– Thread Suppliers
– Fusing supplier
– U & I Garments (factory)
– Warehouse
– Distribution network
– J. outlets
– Costumers
CUSTOMER AND SUPPLIER RELATIONSHIP
MANAGEMENT

J.’s to p most priority is its customers. They provide the contact number of tailors
on make to order cloths for their customers in case they need any changes. They
also keep record of customer returns and their feedback for better services.

J. has also established and maintained active relationship with its suppliers.
Some of its suppliers are international while some are local.
PUSH – PULL PROCESS

The Supply chain of J. Is Focus on both push and pull view.

MAKE TO STOCK MAKE TO ORDER

Push process: Push process:


Push process of j. is that they make Push process of J. starts with purchasing of raw
apparels in anticipation to customer materials, fabric, buttons and fusing before the
demand by seeing the past demand. customer demand is expected.
Pull process: Pull process:
Pull process of J. starts with the arrival Pull view of J. starts with the arrival of customer
of customer order at the J. outlet. order to make customized apparel. The Maximum
lead time of make to order apparels is 15 days.
LOCAL DISTRIBUTION NETWORK
ORDER PLACEMENT

Junaid Jamshed gathers sales data from the stores


and estimates sales for next year in order to inquire
about the company's raw material needs and other
relevant accounts. In order to process the
distribution of the goods to the stores or
consumers, the purchase order is then forwarded
to the supply chain department.

INVENTORY CHECK & WAREHOUSE OFFLOADING:

Thus the Supply Chain Department carries out an inventory check on the availability of
the products through the warehousing department. According to the FIFO system, the
orders listed are then placed at the transport terminals from where the containers are
placed for the secure transport of the products.
DELIVERY TO THE STORES:

Once transportation measures have been taken,


the products have been moved to the required
places. The Junaid Jamshed Finance Department
tries to hold the credit sales transacted into its
company account.

DELIVERY TO THE CUSTOMERS:

This is done on particular orders and additional


costs of freight. When the order for the business is
customized out of the product line, the company
charges the costs and its responsibility is thus split.
LOCAL MERCHANDISE NETWORK

Demand
Recognition

Delivery to the
Product Availability
Customer

Order to the
Manufactuing at J.
supplier
PROCESS FLOW OF MAKE TO ORDER
TRANSPORTATION & LOGISTICS

J. have logistics of their own. Internationally, the mode of transport is by


Aeroplane and containers are carried out locally in Pakistan. The cost of
outbound transportation incurred by sending material from a facility is elevated
at J. since they have two warehouses only.
FISH BONE Another yet accountable issue is with the Junaid Jamshed Make-to-Order logistics is order
delays. Logistics for domestic outlets (excluding Karachi Outlets) is carried out by a third-
ANALYSIS party logistics company and personal company’s owned transportation is used for Karachi
Outlets. The Bone Analysis of Fish depicts a comprehensive picture of the possible reasons
for the delay along with the mitigating factors.

Make to Order Supply Chain’s another drawback is that, they are operating all across the Pakistan
but they have a centralized warehouse in Karachi, causing cargo damage for many times, which is
explained in the FISH BONE diagram below
INVENTORY MANAGEMENT

The problem lies in the inventory management of J. is that, there


is an absence of Inventory Management System to timely monitor the inventory
requirements and surplus in the inventory. This shall made an additional cost to
the accounts of j. Further, the risk associated with the inventory management
are also not under the consideration of existing model of J. Therefore, Adequate
EOQ model and Risk Assessment shall provide J. a solution to compensate with
the problems.
RIGHT EOQ
In order to prevent any inventory shortage or surplus inventory, the challenge that arises during inventory
management is setting the correct Economic Order Quantity. Make-to-order market practices are entirely
different from make-to-stock operations. In order to have adequate inventory of fabric to complete the
order received from all over the fabric store in Pakistan, the inventory level of each fabric must be set in
acceptable quantities.
RISK ASSESMENT
Inventory risk associated with inventory is an increase in
inventory holding costs, an increase in carrying costs can be
saved by proper forecasting with the help of the RISK
Assessment Matrix.
RECOMMENDATIONS
INVENTORY LOGISTICS
Junaid Jamshed must establish a different They should have more warehouses in different
risk management strategy for the make cities to mitigate with the delays
to order department.

A separate department for process monitoring Vertical Integration with the logistics partner can
and reduction of all types of risks be helpful for J. to ensure the timely deliveries in
Karachi
In order to monitor inventory and shortages, They should hire certified crane operators and
they can use ERP software for their production train their staff in order to avoid cargo damages.
and inventory management.

Risk register must be applied until it happens to


log down any potential risk and to device
mitigation strategies accordingly
THANK YOU

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