1.

INTRODUCTION of SUPPLY CHAIN MANAGEMENT

1.1-Objective

Globalization is a much discussed and hyped phenomenon in India today. The free economy that India
is trying to adopt through the liberalization process will naturally culminate in the opening up of the
markets and globalization, the beginning of which has already started. This has ushered in new
challenges and the Indian companies are facing higher levels of competition in the market place, not
only from the other local players but also from multinationals that are better organized and have
considerable hands-on experience in fighting competition in more matured markets.

To retain existing market share and to grow in such a competitive business environment, the companies
will necessarily have to respond to the urgent needs for, Supply chain management is an integrative
approach to dealing with the planning and materials and production flow from the supplier to end.

SCM  is the management of a network of interconnected businesses involved in the ultimate provision

of product and service packages required by end customers (Harland, 1996) Supply Chain
Management spans all movement and storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption supply chain.

Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning,
execution, control, and monitoring of supply chain activities with the objective of creating net value,
building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with
demand and measuring performance globally.

Supply Chain Management is the systemic, strategic coordination of the traditional business functions
and the tactics across these business functions within a particular company and across businesses
within the supply chain, for the purposes of improving the long-term performance of the individual
companies and the supply chain as a whole.
SUPPLY CHAIN MANAGEMENT PRACTICE NOTES AND PROCEDURE FRAMEWORK

The SCM Unit operates in terms of applicable legislation, frameworks, and policies and Practice notes. The
DLGTA Procurement Policy gives clear guidance in this regard. The Hardhat system is used to manage all
departmental moveable assets. Prescripts include the Supply Chain Management Policy Framework and other
Applicable Financial Practice Notes issued by the Provincial Treasury and any Amendments thereto, as well as
the following SCM Practice Notes:

Provincial Supplier Database;

Delegations Framework;
Guidelines in Respect of Bid Committees;
Code of Conduct for Supply Chain Management Practitioners;
Appointment of Consultants;
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 1.2-METHODOLOGY

Primary Data: - . It is worthwhile to say that remarkable research or publication on this issue has not been found.
So, information & knowledge, used in this study, has been collected from text book. It is worthwhile to say that
remarkable research or publication on this issue has not been found. So, information & knowledge, used in this
study, has been collected from text book

Secondary Data: - I have collected my secondary data mostly from different websites and from different
magazines

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 1.3-LIMITATION
We had very little time to do that survey. We had also faced lots of obstacles, but after all of these
obstacles finally we finished our research paper and we are quite satisfied about it.

1.4-Scope
For making the research success relevant knowledge and information were collected from two sources,
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viz. from text books and from different journal. It is worthwhile to say that remarkable research or
publication on this issue has not been found. So, information & knowledge, used in this study, has been
collected from text book, internet source . It is worthwhile to say that remarkable research or
publication on this issue has not been found. So, information & knowledge, used in this study, has been
collected from text book. Moreover, the researcher feels the enduring use of logistic supply chain
management knowledge to impart to educational institution through seminars and workshops

There is no standard career path in SCM. You are in control of your own destiny and have the
opportunity to pursue hundreds of potential career paths. Your career path will be largely influenced by
your skills, interests, and personal decisions. It will also be impacted by the size, type, geographic
scope, and organizational structure of the firm that you choose to work for.

A broad base of business skills, knowledge of supply chain processes, and relevant internship/work
experience will give you ample opportunity to begin your career with a manufacturer, retailer, carrier,
third party logistics firm, or other organization. You will likely begin as a management trainee, analyst,
or front line supervisor. As you demonstrate your managerial capabilities, you can progress to SCM
positions of greater responsibility. You may also decide to gain experience in other parts of the
organization.

Scope of supply chain is quiet wide. SCM Professionals are in great demand across all sectors of
industry including manufacturing, retail, IT consulting, services, non-governmental organizations such
as UN, World Bank, Shipping and Logistics companies, Air Cargo, Export Import houses etc.

2.1-Defination
Supply chain management (SCM) is the oversight of materials, information, and finances as they move
in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain
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management involves coordinating and integrating these flows both within and among companies. It is
said that the ultimate goal of any effective supply chain management system is to reduce inventory
(with the assumption that products are available when needed). As a solution for successful supply
chain management, sophisticated software systems with Web interfaces are competing with Web-based
application service providers (ASP) who promise to provide part or all of the SCM service for
companies who rent their service.

Supply chain management flows can be divided into three main flows:

The product flow

The information flow
The finances flow

The product flow includes the movement of goods from a supplier to a customer, as well as any
customer returns or service needs. The information flow involves transmitting orders and updating the
status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and
title ownership arrangements.

There are two main types of SCM software: planning applications and execution applications. Planning
applications use advanced algorithms to determine the best way to fill an order. Execution applications
track the physical status of goods, the management of materials, and financial information involving all
parties.

Some SCM applications are based on open data models that support the sharing of data both inside and
outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers,
and end customers of a specific company). This shared data may reside in diverse database systems, or
data warehouses, at several different sites and companies.

By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's
clients), SCM applications have the potential to improve the time-to-market of products, reduce costs,
and allow all parties in the supply chain to better manage current resources and plan for future needs.

Increasing numbers of companies are turning to Web sites and Web-based applications as part of the
SCM solution. A number of major Web sites offer e-procurement marketplaces where manufacturers
can trade and even make auction bids with suppliers.
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 Diagram-1

Seven Principles of SCM

More than ten years ago, and presented in an article in Supply Chain Management
Review, a magazine widely a research study of 100+ manufacturers, distributors, and
retailers uncovered some widely used supply chain strategies and initiatives. These ideas
and practices were distilled down to seven principles read by SCM professionals.
Though they are more than a decade old, these timeless principles highlight the need for
supply chain leaders to focus on the customer. They also stress the importance of
coordinating activities (demand planning, sourcing, assembly, delivery, and information
sharing) within and across organizations.

The seven principles of SCM are:

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1. Segment customers based on the service needs of distinct groups and adapt the
supply chain to serve these segments profitably.
2. Customize the logistics network to the service requirements and profitability of
customer segments.
3. Listen the market signals and align demand planning accordingly across the
supply chain, ensuring consistent forecasts and optimal resource allocation .
4. Differentiate product closer to the customer and speed conversion across the
supply chain.
5. Manage sources of supply strategically to reduce the total cost of owning
materials and service.
6. Develop the supply chain wide technology strategy that support multiple levels of
decision making and gives a dear view of the flow of products, services, and
information.
7. Adopt channel spanning performance measures to gauge collective success in
reaching the end user effectively and efficiently.

2.2-Importance of Supply Chain Management

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Supply Chain management (SCM) means managing the supply of inbound and outbound goods and
services in the most cost effective and time sensitive way. This can be done by designing a strategic
route plan for the quickest possible pick-up and delivery regimen, from the appropriate suppliers, for
all points throughout the assembly line, in order to achieve cost and time related efficiency levels. Then
optimum operational smoothness can be guaranteed giving a business an edge over competitors in
marketing goods and services by introducing goods and services quicker than established trend .

Logistics is used to put this strategy in place physically. All manufacturing, service oriented and
progressive companies have logistics departments that execute SCM plans so that goods and services
that come in can be made available to the various departments for meeting production schedule and
churning out finished goods and services to the clients in the quickest cost effective way possible.

Logistics uses various infrastructure and machinery to bring about the execution of the SCM strategy.
Such SCM and logistics mechanism can be relevant in the macro sense as well, encompassing the
economic activity of the whole country. Therefore, roads, railways, waterways, seaport and airport
customs facilities and regulations of a country need to be seamless and free of corruption. All of the
above fall in the category of logistical infrastructure and are vital for the economic viability of a
country .The preamble of our lead article in the logistics page is always introductory in nature, simply
because supply chain management is a subject that is not in the news often and communication on the
subject has not been to the desired extent leaving most managers unable to grasp the technicalities of
supply chain management though most have to deal with the challenges of managing a supply chain.

In Bangladesh, logistical infrastructure has been discussed at length in the media indirectly whenever
we have seen news related to port facilities but the significance of supply chain management and the
fact that modern logistical infrastructure is a national priority has not gained ground.

Here lies the need for a strategic plan commissioned and adopted by the highest authority. A strategic
plan for development of logistical infrastructure would be unique opportunity for not only to improve
functional infrastructure but also to reap the benefit of creating thousands of jobs by establishing new
businesses and to give a fill-up to existing companies that would benefit by getting lucrative contracts
to work in improving roads, railway lines, ports, airports, and so on.

The strategic plan could improve many things .We have heard of suggestions like improving the
condition of the Mongla Port, which is currently almost lying idle. Mongla port could be an alternative
port to Chittagong port but this option is not explored for a variety of reasons, most of which are hazy
in design and context. . What a waste that we are unable to offer an alternative port to ease congestion
in the Chittagong port while we have a ready-made port waiting to be re-commissioned. Internal
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Container Depots (ICD) facilities need to be increased so that goods that can be unstuffed and delivered
to destination in and around Dhaka if needed. Other suggestions that can be a part of strategic plan are -
riverine ports facilities for moving goods from Chittagong Port through barge-mounted transportation,
improvement of Bangladesh Railways, more off-doc facilities in Chittagong port to facilitate quick
movement of containers within the port, computerization of customs to shorten customs formalities and
make them more transparent.

The term Supply Chain Management (SCM) itself envisages the need for planning and, therefore,
national strategic plan can be a great benefit for the whole national economy just as SCM plans are
evolved for smaller entities like business organizations. The national strategic plan would have sections
that relate to financial requirement needs to implement the plan. Viable financial plan can be drawn up
with private sector participation in mind and if the emphasis is placed on transparency and strict
supervision of a government team comprising well-known competent and honest officials.

The logistics news in Bangladesh is now skewed toward positive sound bites. A prescheduled berthing
system known as fixed day window berthing has come into effect in Chittagong port. The system,
internationally recognized practice, would mean that arrival and berthing of ships would be fixed one-
month back. There are also news items coming thorough that speak of initiatives to work toward
finding a solution to the issue of licensing for the logistics companies. The much talked about Terminal
Handling Charges (THC) which was abolished recently is also just under the surface with the logistics
sector trying to figure out who will ultimately pay this charge which is applicable as per internally
accepted shipping Inco-terms with the exception of Bangladesh.

Supply Chain Management (SCM) and logistics would have to be accepted as integral to the strategic
economic planning that is done by economic think-tank of the country. It is actually possible to think of
strategic models for economic development that revolve around a Hub-Port that would service regional
economies sprouting growth surrounding the activities centered on the port itself. Businesses would
grow to cater to the onrush of maritime visitors. Hotels, recreational facilities and restaurants would be
a small part of the various kinds of service that would emerge. With new businesses would be financial
deals to be stuck and venture capitalists would start emerging, merging with other high flyers to create
a versatile environment where sky is the limit. Chittagong is so ideal for a port based development
scheme with its natural beauty and potential for tourism. Bangladesh needs to start thinking of a
strategic plan based on development of logistics infrastructure centered on a world class port in
Chittagong and related development that can happen in a port based economy.
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 1

2.3 Application
 Market Knowledge

We have to be market-orientated and focused on the specific industry challenges our clients face. It is
important, as our clients rely on us to bring a global perspective to the advice we give them, as well as
a complete understanding of local issues. Living up to these expectations without placing unfair
demands on our people means striking a balance. How can we help our people develop both an
international outlook and local knowledge? How do we make ourselves available to our clients where
they need our advice? Furthermore, what role should we play in developing legislation, policies and
regulatory frameworks?

Pay Order

A check or draft that must be paid via endorsement and delivery. Pay-to-order instruments are
negotiable checks or drafts that are generally written as "pay to X or order." These instruments stand in
contrast to pay-to-bearer instruments, which do not require endorsement. The Uniform Commercial
Code outlines the rules pertaining to pay-to-order instruments. It specifies that ownership of this type of
check can be transferred only via endorsement – someone who accepts a check must endorse it before
transferring it somewhere else.

L/C

L/C. A binding document that a buyer can request from his bank in order to guarantee that the payment
for goods will be transferred to the seller. Basically, a letter of credit gives the seller reassurance that he
will receive the payment for the goods. In order for the payment to occur, the seller has to present the
bank with the necessary shipping documents confirming the delivery of goods within a given time
frame. It is often used in international trade to eliminate risks such as unfamiliarity with the foreign
country, customs, or political instability.

Advertise

Advertising is bringing a product (or service) to the attention of potential and current customers.
Advertising is focused on one particular product or service. Thus, an advertising plan for one product
might be very different than that for another product. Advertising is typically done with signs,
brochures, commercials, direct mailings or e-mail messages, personal contact, etc.

Market Strategy
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Written plan (usually a part of the overall corporate plan) which combines product development,
promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how
they will be achieved within a stated timeframe. Marketing strategy determines the choice of target
market segment, positioning, marketing mix, and allocation of resources

Shipment

Cargo transported under the terms of a single bill of lading or air waybill, irrespective of the quantity or
number of containers, packages, or pieces. Also called consignment. Transportation of passengers and
goods on waterways. From prehistoric times shipping has had a major influence on human social
development. Water routes, unlike roads, did not need building, and the difficulties and dangers were
less than those offered by mountains, marshes, and enemy tribes. Therefore many early civilizations
developed on navigable rivers or on the coasts of warm seas.

Quality

 General: Measure of excellence or state of being free from defects, deficiencies, and
significant variations. ISO 8402-1986 standard defines quality as "the totality of features
and characteristics of a product or service that bears its ability to satisfy stated or
implied needs."

 Manufacturing: Strict and consistent adherence to measurable and verifiable standards to

achieve uniformity of output that satisfies specific customer or user requirements.

 Objective: Measurable and verifiable aspect of a thing or phenomenon, expressed in

numbers or quantities, such as lightness or heaviness, thickness or thinness, softness or
hardness.

 Subjective: Attribute, characteristic, or property of a thing or phenomenon that can be

observed and interpreted, and may be approximated (quantified) but cannot be
measured, such as beauty, feel, flavor, taste.
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Quality Export
To send or transport goods abroad out of a customs territory; to sever them from the mass of things
belonging to one country with the intention of uniting them to the mass of things belonging to a foreign
country And quality export means to send or transport standard quality goods abroad out of a customs
territory to sever them.

Price

Market value, or agreed exchange value, that will purchase a definite quantity, weight, or other
measure of a good or service. As the consideration given in exchange for transfer of ownership, price
forms the essential basis of commercial transactions. It may be fixed by a contract (such as sale of
goods contract), left to be determined by an agreed upon formula at a future date, or discovered or
negotiated during the course of dealings between the parties involved. In commerce, it boils down to
what (1) a buyer is willing to pay, (2) a seller is willing to accept, and (3) the competition is allowing to
be charged. With product, promotion, and place of marketing mix, it is one of the business variables
over which a firm can exercise some degree of control. It is a criminal offense to manipulate prices (see
price fixing) in collusion with other suppliers, and to give a misleading indication of price such as
charging for items that are reasonably expected to be included in the advertised, list, or quoted price.
Called also sale price and selling price

Market Planning

The planning process that yields decisions in how a business unit can best compete in the markets it
elects to serve. The strategic plan is based upon the totality of the marketing process.

SALE CONDITION :-

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MARKETE PLAN :-

The planning process that yields decisions in how a business unit can best compete in the markets it
elects to serve. The strategic plan is based upon the totality of the marketing process.

Marketing process can be realized by the marketing mix in step 4. The last step in the process is the
marketing controlling. In most organizations, "strategic planning" is an annual process, typically
covering just the year ahead. Occasionally, a few organizations may look at a practical plan which
stretches three or more years ahead.

To be most effective, the plan has to be formalized, usually in written form, as a formal "marketing
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plan." The essence of the process is that it moves from the general to the specific, from the vision to the
mission to the goals to the corporate objectives of the organization, then down to the individual action
plans for each part of the marketing program. It is also an interactive process, so that the draft output of
each stage is checked to see what impact it has on the earlier stages, and is amended.

HOW TO MANUFACURING :-

Strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output
that satisfies specific customer or user requirements.

Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may
refer to a range of human activity, from handicraft to high, but is most commonly applied
to industrial production, in which raw materials are transformed into finished goods on a large scale.
Such finished goods may be used for manufacturing other, more complex products, such as
aircraft, household appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers,
who then sell them to end users – the "consumers"

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 2.4- Documents

3. Factory Visit:-
3.1 FACTORY PROFILE That I Visit-
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(Machine) (Including DIPLOMAT GROUP is a 100% export oriented leading company
of ready-made garments since 1984. Our Factory is:

AZIZ FASHIONS (PVT) LTD.

DIPLOMAT FASHION WEAR (PVT) LTD.

DIPLOMAT GARMENTS (PVT) LTD.

The production and export capability of these three factories are 45,500 Doze to around
50,000 Doze per year.. We believe in best quantity, shortest time. Customer’s
satisfaction and commitments to our buyer. We welcome buyer as our partner.

1) MANAGEMENT :

AZIZ AHMED
KHAN CHAIRMAN
Aziz Fashions (Pvt.) Ltd.

MANAGING
DIRECTOR
Diplomat Garments (Pvt.)
Ltd.
Diplomat Fashion Wear
(Pvt.) Ltd.

MD. GIAS UDDIN CHAIRMAN

Diplomat Garments (Pvt.)
Ltd.
Diplomat Garments (Pvt.)
Ltd..
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 MANAGING
DIRECTOR
Aziz Fashions (Pvt.) Ltd.

MD. AMIR HUMZA DIRECTOR

Aziz Fashions (Pvt.) Ltd.
Diplomat Garments (Pvt.)
Ltd.
Diplomat Fashion Wear
(Pvt.) Ltd.

S.M. JALAL UDDIN GENERAL MANAGER

Diplomat Garments (Pvt.)
( BAKIBILLAH) Ltd.
Diplomat Garments (Pvt.)
Ltd.
Aziz Fashions (Pvt.) Ltd.

( 2 ) BUSINESS ADDRESS:

a) AZIZ FASHIONS (PVT) LTD.

b) DIPLOMAT FASHION WEAR (PVT) LTD.

Add: 148/1/E,Shah Ali Bagh,Mirpur -1,Dhaka-1216,

Bangladesh.
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Tel: 0088-02-9010559,8012000
Fax: 0088-02-9010250

E-mail: [email protected],

[email protected]

[email protected]

[email protected]

[email protected]

URL: www.diplomat-bd.com

c) DIPLOMAT GARMENTS (PVT) LTD.

Add: 12, Shashi Bhuson Chattergee Lane,Gandaria,Dhaka-1204,

Bangladesh.

Tel: 0088-02-7441809,

Fax: 0088-02-7441157

E-mail: [email protected],

[email protected]

[email protected]

[email protected]

[email protected]

URL: www.diplomat-bd.com

( 3 ) PRODUCTION ITEMS:

1. Jacket
2. Ski Jacket
3. Denim Cargo Pant
4. Denim Shorts
5. 6-In-1 Parka
6. Bib Pant
7. Denim Pant
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8. Trouser
 9. Vest
10.Coverall
11.Overall
12.Wind Shirt/ Breaker
13.Rain Coat
14.Seam Sealed Jacket
15.Fleece Jacket
16.Snow Suit
17.Swim Trunk
18.Track Suit
19.Jogging Suit
20.Sports Wear.

(4) Our Buyers:

Name of Buyers Country

THE BERNE APPEREL COMPANY USA

OUTDOOR GEAR USA

SPORTS USA USA

MAHCO.INC USA

K.MART CORPORATION USA

WAL-MART USA

W.W. GROUP (MERCURY) USA

CAREL S.A FRANCE

FRANCE SALES KNIT WEAR FRANCE

MIM SAS, ZONE SINA FRANCE

FORE CAST SARL FRANCE

BANEX LTD UK

LEA SPORTS WEAR LTD. UK

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LAZY JACKS YACHTWEAR LTD. UK

 HEBESTREIT FASHION INT. GERMANY

LOSAN SL. SPAIN

AMERELLA OF CANADA CANADA

MAURICE SPORTING GOODS CANADA

HOLLAND HOUSE FASHION B.V THE NETHERLANDS

JUVITEX N.V BELGIUM

HEINRICH OBERMEYER GMBH AND CO. KG GERMANY

(5) Employees : 950 ( Total Number of Employers) ( Including 3 Factory )

(6) Machineries : 500 (Total Number of 3 Factory )
(7) Production Capability : 50,000 Doz / Year ( Including 3 Factory )

3.2- Practice & Procedure of SCM

SCM, new responsibilities and practices for procurement officers are evolving. Major production
and development responsibilities are handed over to a selected group of strategic suppliers and
the importance of selecting the optimal supply base becomes crucial. Procurement plays a critical
role in implementing and managing this process. They need to implement new practices and
adopt new perceptions for handling the interface between buyers and suppliers in terms of
integrating internal and external production and product development activities. For the
individual procurement officer this may often be a painful process of unlearning old practices
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and adapting to new realities. So far, limited attention has been given to the internal organization
challenges within the buying firm in the light of changing sourcing practices. More research has
been called for (Sheth & Sharma, 1997). . The purpose of this study is to deepen our theoretical
understanding of the effects of SCM to the organization and management of procurement. Some
studies have recently discussed the changing role of the procurement department in the
organization with respect to its increased participation in cross departmental teams and
corresponding involvement in decision areas outside the traditional realm of procurement
(Pearson, 1999; Hult et al, 2000). However, their findings are not directly related to the
conspicuous following of a particular strategy for managing and integrating the supply function.
Moreover, they focus on an important but particular aspect of organizational consequence
(increased participation in cross-departmental teams), rather than relating these to broader
issues of changing demands to the procurement department. A more coherent theoretical
understanding of the emerging issues and challenges to the procurement department has yet to
be developed. We move towards this from the SCM literature and other related fields
(relationship marketing and organizational theory). From the theoretical basis we develop a set
of statements and apply a case study methodology, known as the degree-of-freedom analysis
(DFA) (Wilson & Woodside, 1999). This is a formal case study approach used for matching
patterns of observations to expected statements. This approach differs from traditional grounded
theory in the Glaser & Straussian sense, by allowing theory to be an active and explicit part of
the researchers’ analytical framework (Glaser & Strauss, 1967). Compared to analytical
induction on the other hand, it does not only test theory but develops it as well. In conclusion, our
intention is to modify the already developed theory and to see how it applies to new and varied
situations, as differentiated from those situations to which it was originally applied. The issue we
are exploring here concerns the changing job descriptions and practices of procurement
managers in firms transforming their production and outsourcing practices along the lines of
SCM, as compared to procurement managers in other organizations. For this reason we are
investigating the changing practices in the procurement departments of Danish users and non-
users of SCM as a production strategy

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Best Practice Base Of Supply Chain Management

Procedure Of Supply Chain Management

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4. Conclusion:
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The RMG sector of Bangladesh has entered in the quota free market after 2005. From
that time this sector is in a very disadvantageous situation due to long lead time which
has negative impact on export growth. Through analysis of empirical data it has been
found that import dependency is the major bottleneck and it is the main factor for greater
lead time. Just due to import of fabrics manufacturers are to count shipment time,
unloading time, customs clearance time and transportation time from port to ICD (Inland
container depot) at Kamalapur, Dhaka. Import dependency arises out of the absence of
sufficient backward linkage industry and for this reason a total additional 55-75 days are
spent in the import process of fabrics by RMG sector of Bangladesh. As a result this
sector is facing long lead time which is 90 to 130 days on the average. And this all
process of RMG are doing their work like circle like SCM.

5. Reference
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 www.objective.com/about-objective/.../industry-affiliations

www.prime-objective.com/ - Cached - Similar

www.businessdictionary.com/definition/objective.html - Cached - Similar
www.methotology.com/zencart/index.php?main_page=index... 

www.scope.com.my/ -

I also have references from different types of books.

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6. Appendix