Supply Chain Management

IMPLICATIONS OF IMPLEMENTING SUPPLY CHAIN PRACTICES

BRANDIX INTIMATE APPAREL LIMITED

Table of Contents

Content Page

I Introduction 2

II Supply Chain Management 2

III Brandix Intimate Apparel 3

1. The BIA Supply Chain Management 3

2. Supply Chain Practices at BIA 5

IV Implications of the Supply Chain Practices at BIA 6

1. Overall Implications 6

2. Rewards 7

3. Supply Chain and Environment 7

4. Risks 8

V Integrated Supply Chain 9

1. Facilities 11

2. Material flow 11

3. Information Flow 12

VI Conclusion 12

V References 13

Figure Captions

Figure 1: Supply Chain Management Process - BIA 3

Figure 2: Supply Chain Process-Brandix 4

Figure 3: Integrated Supply Chain 10

I. Introduction

Brandix is Sri Lanka's single largest exporter of apparel, providing inspired solutions to its wide range of international customers. Brandix Intimate Apparel (BIA) is part of the manufacturing cluster within Brandix and specializes in fine lingerie and sleepwear. It has the capability of working with multiple fabrications and producing multiple styles and boasts of extensive experience in handling and introducing micro satin garments. It also provides its customers with integrated design and sample development facilities. It has its own design studio, buyer recommended fit models, and uses 'concepts- Paris' for fashion forecasting.

The analysis of the implications of implementing supply chain practices has been considered in view of the supply chain practices at Brandix Intimate Apparel where the vast supply chain and sourcing management capabilities, from procurement planning, pre production control and product development, plays a vital role.

II. Supply Chain Management

Logistics/supply-chain management (SCM) is the synchronized movement of inputs and outputs in the production and delivery of goods and services to the customer. In this integrative approach, a cross-functional senior management group coordinates physical and informational resources to optimize efficiency and effectiveness. It manages both the purchasing (or inputs) side of the resource stream, and the distribution (or outputs) side of the stream as a single integrated flow. This flow typically encompasses customer service, physical distribution, materials management, information management, and their related, highly complex sub processes: order processing and order tracking, production planning and supplier management, purchasing, warehousing, transportation, and electronic supply-chain communications/payment systems. (Source: Boyson, Corsi, Dresner, Harrington & Rabinovich - Logistics and the Extended Enterprise)

In recent years, the issue of effective supply chain practices has become more critical to the success of businesses. Globalization has made companies far more dependent on foreign markets for goods and services as well as for customers.

III. Brandix Intimate Apparel

1. The BIA Supply Chain Management

At BIA the total supply chain management which encompasses the areas of purchasing, producing, and sales and delivery comes under three different sections of the company structure

Figure 1: Supply Chain Management Process

The supply chain in Brandix Intimate helps to bridge the gap between manufacturing and marketing functions. (See Figure 2 for supply chain process)

Figure 2: Supply Chain Process - Brandix Intimate Apparel Limited

Although the supply chain department can de identified as conducting a major part of the activities coming under the supply chain management process, the responsibility for overseeing the entire supply chain management process lies with the CEO.

2. Supply Chain Practices at BIA

The implications of supply chain practices can be looked at by considering the impact of integrated SCM on the company's operational and financial performance.

Supply chain practices of BIA can be classified into five broad types:

(a). Supply Chain Integration (SCI) includes integration with customers, with suppliers, and across the internal organization. From the functional perspective, integrated collaborative product development is also included.

(b). Complexity Management refers to coping with supply chain complexity in a cost-effective way.

(c). Aligning Strategy and Supply Chain implies that supply chain management is well integrated into the strategic planning of a company and its CEO-level