1. Supply Chain management
Major assignment
Bachelor of Applied Science (Textile Technology)-2012/2013
Lasitha Nawarathna

2. 1
01. Define & Discuss the value chain of your organization
Selected organization: - Brandix
Brandix:- the Brandix group has pioneered the concept of holistic apparel solutions from a unique,
customer- centric standpoint since its inception in the year 2002. Its unconventional approach to a
conventional sector has propelled Brandix to the forefront of the industry as the single largest
apparel exporter in Sri Lanka with a turnover of US $ 600 Mn. The public limited company’s fast
expanding network of factories and offices span across the south Asian sub-continent.
The first company in Sri Lanka’s apparel sector to pioneer the concept of ‘total solutions’, Brandix
is now considered a preferred solutions provider to some of the world’s leading apparel brands
situated in the UK, US and parts of Europe. The group specialized In manufacturing casual bottom
, intimate apparel, underwear, lounge and sleepwear, bras, woven and knitted fabric and host of
apparel industry accessories.
A backward and forward integrated operations, the company manufactures its own fabric,
buttons treads and hangers, lending it a tactical edge in the apparel sector
Our group-wide initiatives to achieve manufacturing and supply chain excellence, close
collaboration with our suppliers, and sales offices at the customer's doorstep all guarantee fast and
flexible solutions from the source to your stores.
This core strength future reinforces our advance researches and development, outstanding design,
fabric printing, washing, dyeing, wet processing, finishing and relentless quality control services
with fastest turnaround time. Embedding and integrating these services into seamless verticality is
the value chain we offer our customers
The key value additions we offers are
 Speed and flexibility
 Right cost
 Convenience
 Assurance
 Innovations

3. 2
What is Value chain:-
A model that considers how supply chain activities can add value to products and services to be
delivered to the customer
A strategic business analysis tool used for the seamless integration and collaboration of value
chain components and resources. Value chain management focuses on minimizing resources and
accessing value at each chain level, resulting in optimal process integration, decreased
inventories, better products and enhanced customer satisfaction.
Porter’s value chain consists of a “set of activities that are performed to design, produce and
market, deliver and support its product”. Porter distinguishes between
 primary activities: inbound logistics, operations, outbound logistics, marketing and sales,
service in the core value chain creating directly value
 support activities: procurement, technology development, human resource management,
firm infrastructure supporting the value creation in the core value chain
Figure 1

4. 3
Discussion of value chain in Brandix
When considering present value chain activities of Brandix six distinct value-adding activities
can be identified
R&D: This value-adding function includes Brandix that engage in R&D, as well as activities
related to improving the physical product or process and market and consumer research. Still
brandix has low involvement in this stage.
Design: This stage includes Brandix that offer aesthetic design services for products and
components throughout the value chain. Actually Brandix has buyer wise product development
team. Design and style activities are used to attract attention, improve product performance, cut
production costs, and give the product a strong competitive advantage in the target market. Still
brandix has low involvement in this stage.
Inbound:
This stage refers to the inbound processes involved in purchasing and transporting textile products.
Raw material such as Fabric, buttons, zippers, labels, cartons, polybags, hangers, sewing threads
are commonly used to manufacture and finish a garment and components such as parts of the
sewing machines, furnace oil, water and electricity supply are indirectly support to the production
Most of time Brandix can’t produce all raw materials under one roof. It includes physically
transporting products, as well as managing or providing technology and equipment for supply
chain coordination. Logistics can involve domestic or overseas coordination. In Brandix has anther
additional group called Brandix logistic to control and advice for unbound logistic activities
Most of the raw materials are sourced from within the group raw materials suppliers. Sometime
Brandix sourced raw materials from India, Pakistan, Hong Kong and China. All the foreign raw
materials merchandize as a FOB orders.

5. 4
Operations
Production/Assembly/Cut, Make, Trim: Brandix cuts and sews woven or knitted fabric or knit
apparel directly from yarn. The group specialized in manufacturing casual bottom, intimate
apparel, underwear, lounge and sleepwear, bras, woven and knitted fabric and host of apparel
industry accessories.
Each plant has their own fabric and trims store, cutting department, technical department, sewing
floor and ironing and packing department. Productions starts after doing the pilot run and it helps
to minimize measurements and other quality related issues. The cut-and-sew classification
includes a diverse range of establishments making full lines of ready-to-wear and custom apparel.
Sometime Brandix performing cutting or sewing operations on materials owned by others.
For the manufacturing brandix has been using lean manufacturing and modular systems. Brandix
can purchase textiles from another establishment or make the textile components in-house. All
Brandix apparel manufacturing plants going under higher efficiency its help to reduce production
lead time.
Outbound
Brandix after apparel is manufactured, Brandix has one warehouse in every manufacturing
plants. Sometime Brandix responsible for value-adding activities outside of production. Like do
some packing activates in warehouses. Most of time brandix do free on board orders that time
have to responsible for outbound logistics activates also.
Internal logistic activates and Shipping is done by third party logistic supplier and there is a
separate supplier to deliver the containers to the ports and to handle documentation work.
Bradix has additional group for monitor all logistic activities.

6. 5
Sales and Marketing
Brandix has marketing departments in New York, London and Hong Kong. In Sri Lanka brandix
buyer wise brandix has marketing teams. This function includes all activities and companies
associated with pricing, selling, and distributing a product, including activities such as branding or
advertising.
Services
This includes any type of activity a firm or industry provides to its suppliers, Buyers, or employees,
typically as a way to distinguish itself from competitors in the market. Also defectives are found
by them in the final inspection as well as their auditing point before send to retailers. We have to
replace the shortages to avoid dissatisfaction. Further to that we are claimed discounts for poor
quality products.

7. 6
02) Define & discuss the supply chain related to your organization
What is supply chain management?
According to the Council of Supply Chain Management Professionals (CSCMP), SCM can be
defined as encompassing “the planning and management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities … It also includes coordination
and collaboration with channel partners, who can be suppliers, intermediaries, third-party service
providers and customers. In essence, supply chain management integrates supply and demand
management within and across companies.”
We can define supply chain management like this also Supply chain management is a set of
approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so
that merchandise is produced and distributed at the right quantities, to the right locations, and at
the right time, in order to minimize system wide costs while satisfying service level requirements.
How supply chain management related to Brandix
Managing the production of the company's good and services, monitoring, storage, inventories,
coordinating with suppliers and ensuring timely distribution of goods are some of the key functions
covered by supply chain management (SCM). When consider Brandix the supply chain is actually
made up of five important components of plan, source, make, and deliver, return. It also includes
three flows which are cash, product and information within the chain. .Through these components
and members, the Brandix management of the supply chain allows efficient inventory control. As
a dynamic process, the SCM requires the continuous exchange of information, finance and
materials between and within the members of the chain. These elements of the SCM also make
this business aspect challenging to implement and maintain.
The Brandix is one of company those who have been applying this strategy.. In Sri Lanka, the
apparel industry is one of its important and highly contributory economic sectors, hence, various

8. 7
local apparel manufacturers and businesses are employing different innovations so as to operate
successfully,
Brandix supply chain network
Raw material
Manufacturing
Garment
Manufacturing
Exporting
network
Importing
network
Yarn
(cotton/nylon
/polyester)
Fabric (Weaving/
knitting)
Ocean lanka/ TJ
Dyeing and
finishing
BTL/queanBy/
Garment
manufacturing
(R&D / cutting/
sewing/ packing)
BCW/BEL/BIA/BLI
Accessories
Buttons/hangers/tre
ads
(A & E/ T & S )
Brand-Named
Apparel
Companies
Overseas Buying
Offices
Trading
Companies
Fabric
/Accessories
Logistic and
Transport
operations
Logistic and
Transport
operations
C
U
S
T
O
M
E
R
Figure 2- supply chain network Brandix
BTL/queanBy/ Ocean lanka/ TJ /A & E/ T & S :- Brandix own raw materials manufactures
BCW/BEL/BIA/BLI :- Brandix own garment manufactures

9. 8
Brandix Supply Chain Management Functions
Transport management system
Transportation involves many different parties within and outside a company who are required to
routinely share information and ideas. Specially involves some foreign countries also. Brandix use
fully functional transportation management system should provide the basic components of a
shared information system to support:
 Content such as rates, routes, roles, and contracts at inter-enterprise generic levels
 Commerce to support and create transaction sets, documents, and information exchanged
to facilitate the booking, execution,
The data model and data dictionary of the TMS should thus support a wide and diverse range of
interactions. The combination of these robust system infrastructures and collaborative applications
should enable the user to perform all necessary functions involved in the planning, execution, and
analysis of transportation movements.
Operations –manufacturing
Manufacturer bears the responsibility over the production of items according to the requested quality
and the shipment of the right quantity to the right place on the right time. A lot of value addition is
there for the items produced since sourcing is done locally unless it is an exceptional case; this is quite
rare in the Sri Lankan apparel industry. The company focuses greatly on the control of its operations
and the quality. This is the consequence of vertical integration and company seeks highest quality at
every stage of production. Operations lead time depend on buyer requirement. Now our lead time
depend on 90 days to 10 days. Brandix has falsities to complete all manufactures process within 10
days also.
Supplier Relationship Management
Brandix supplier Relationship Management is a relatively new way of categorizing software–born
out of the concept that you have customer relationship management systems for managing
customer-facing processes, enterprise resource planning (ERP) systems for internal processes and

10. 9
SRM for both supplier-facing processes and managing the supply base. Actually now Brandix use
Fast React software to there , enterprise resource planning (ERP ).The heart of SRM is sourcing
and procurement, which differ from their internally-focused ERP counterparts primarily in that the
SRM modules have a much greater emphasis on integrating and connecting with the suppliers.
SRM also includes interactions with the supply base throughout the full lifecycle of processes from
design through to fulfillment, manufacturing, and settlement.
Warehouse management system
Brandix warehouse management system (WMS) provides database and user-level tools in order
for a company to optimize its storage facilities while at the same time providing user level task
direction and activity support. The combination of system-directed operations, supported by real-
time, paper-less, and interactive information systems will provide warehouse management and
personnel with the tools to direct, control, measure, and report on distribution operations.
Demand management systems
Today Brandix has moved beyond the narrow concept of statistical forecasting to encompass both
global and cross enterprise trading partner processes. In addition, the real-time nature of today’s
business requires that rapid feedback from markets and adjustments to demand assumptions are
propagated through the supply chain to improve delivery and cost performance.
Demand management means identifying and creating demand (marketing, merchandising, and
promoting), modeling (forecasting, pricing, and life cycle planning), and collaborating
(communicate, simulate, and create consensus) with the network of trading partners. It also means
evaluating results and creating learning cycles where the market, including geographic,
demographic, and economic assumptions are evaluated and improved upon to constantly improve
the performance of the chain.

11. 10
03) Identify the value chain & supply chain management challenges, issues and presently
given solutions
Challengers and issues
Shrinking lead times
Brandix identified rapidly shrinking lead times as one of the biggest challenges for the apparel
industry. The growing demand for ‘instant gratification’ by trend-driven consumers could result
in manufacturers being given hours rather than days to deliver new designs within the next 18 to
24 months.
Increasing no of style changers
With is short time of period styles and designs are changing. When come new style for
manufacturing plant they take some learning curve to come high efficacy level. Because this
situations operations side can’t do manufacturing products in high efficacy.
Not enough capacity for own raw material suppliers
Brandix own raw material producers can’t supply total garment manufacturing capacity of
brandix. That time brandix has to import raw materials form foreign suppliers. It manly effect to
our value chain. As an example if import yarn and our factory produce fabric mean can add some
ting to our value chain. In this fabric mils low capacity problem we had to export fabric from our
suppliers it effect to our value chain.
Poor flow of information
Poor flow of information in both forward and backward in the supply chain. Our customers’
requirements, information and specifications may not pass to manufacturer/ suppliers and quality
issues of the raw materials also not been informed to suppliers. Sometime above details not pass
within group suppliers also. So, suppliers are able to send anything they produce as they do not
get any feedback.

12. 11
Demand forecasting problems
Poor demand forecasting. There is an issue in production planning and as result delivery are not
met on time. Some raw materials such as packing trims are not in housed on time and unfinished
goods are remaining at packing.
Logistics problems
Brandix has large number of logistics problems. Internal and external logistic problems increasing
now day by day. Logistic and transportations problems effect to the on time delivery. Lack
communications, non-skill human resources, dealing with lot of logistic companies those are the
main reasons for logistic problems.
Inventory management problems
Poor inventory management. Raw materials such as interlining, has to maintain minimum stock as
they widely used. Sometimes they are not available and it affects to production. WIP in
embellishment division is higher and as a result garment finishing cannot be done as scheduled
Presently given solutions
Introducing new inventories management systems
Now Brandix has been implementing just in time inventory management system. Now this
concept implementing all group raw materials manufacturing companies and garment
manufacturing companies. Its help to reduce upcoming poor inventory management problems.
Implementing lean manufacturing for manufacturing
Using lean tools Brandix hope to reduce cost and increase productions efficiencies
Cost reducing

13. 12
Brandix management reduced the cost of the organization and there is higher level of cost savings.
Such as the duplication work, transport, delivery, cost that is been involved. Furthermore, it brings
about efficiency to the organization, and also quick responding to the consumer demands
Find new raw materials suppliers and increase productivity of own raw materials
producing factories
This splitting-up of once vertically aligned organizations into many independently working apparel
companies, brandix having a separate operation but in raw material capacities not enough. Now
brandix invest another fabric manufacturing companies and increase value of them value chain.
Makes efficient coordination among them a must to sustain increased competition. Also large,
vertically oriented organizations, which still exist, need to coordinate their entire supply in light of
growing inter-unit competition for productivity, often disregarding market priority. This stimulates
apparel organizations to manage their various activities under a new paradigm, supply chain
management
Brandix has set up vertically integrate city (Brandix apparel city)
Brandix India Apparel City (BIAC) is a revolutionary development in the apparel industry; a
unique, integrated apparel supply chain city, managed by Brandix Lanka Ltd. Spread over 1000
acres in the port city of Visakhapatnam (or Vizag for short) in the eastern state of Andhra Pradesh,
it brings alive an avant garde 'Fibre to Store' concept. BIAC will bring together world class
apparel chain partners from the design table to consumer brands in flawless integration.
The dynamics of the apparel market demands the key value propositions of speed to market, least
cost, flexibility & assurance of compliance. BIAC is built on this premise. Its smooth flowing
verticality will ensure minimum lead times, the most critical competitive factor.

14. 13
04) Based on the knowledge gain during this program describe your own views and
recommendations to future improve the value chain and the supply chain of your own
organization
Own Recommendations to future improve the value chain and the supply chain
Use highly accurate forecasting methods using technology
Highly accurate forecasting algorithms and dynamic time-phased replenishment plans for apparel
supply chain management, apparel marketers can reduce inventory, improve service levels
All ready Brandix use Enterprises resource planning system for forecasting. My suggestion is after
do research, Analyze sales history and forecasts in units, revenues, margin, or any other unit of
measure after that develop own highly accurate forecasting method for forecasting.
Increases involvement for highly value added stages
When consider value chain focus high value added stages. Actually when considering Brandix
value chain it start R & D, design, purchasing, production distributing, marketing and service. But
think about Brandix value chain, Percentages of involvement for each stages Brandix has low
involvement for highly value added stages. As a figure 2 mention apparel value chain highly value
added things are R&D, Design and after service. If Brandix can increases involvement for R & D
and design stages can add high value for our value chain. Its help to increases profitability also
apparel business.
Figure 3 : Source: Frederick, 2010.

15. 14
Start own logistic company
Present Brandix in bound and out bound all logistics services have been out sourcing. Because this
situations facing lot of problems. If Brandix start own logistic company can reduce several logistic
problems and save money. When we think about world success business like WALMART, they
have own logistic company and it help to meet there requirement and goals.
Build up new supplier performance evaluation system
Need to have proper supplier performance evaluation procedure to identify best and reject others
Need to build up good relationship with suppliers and customers
This reality is increasingly inaccurate as companies facilitate their return item processes and
customer feedback through their network. As a result, the consumer experience is improved as
retailers combine their e-commerce operations with those of their stores.
Have to do Continuous improvement
This notion is believably the most complex to exploit because of the large number of stakeholders
involved in the garment industry. However, this principle is applied by world-class manufacturing
In the context of this fascinating industry, a series of articles will be released in the coming months
on various aspects of the supply chain. Through these columns, we wish to give you food for
thought, bestow possible solutions to your industry’s difficulties and potentially arouse
questioning about your supply chain operations with business partners.