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Supply Chain

Management

Assignment By:

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Maisam Salem

Table of Contents
Introduction
Sourcing suppliers &
Procurement
Inbound Logistics
Material flow
Information Flow
Inventory Management
Warehousing Facility
Cross docking
Transportation Modes
Outbound Logistics
Distribution
Retail Outlets
Reverse Logistics
Conclusion
References

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Introduction

Apparel is group of 50 global and international brand companies


and stores coordinated and participate in one card for any kind
of shopping in UAE in one card, club apparel gives you the ability
to purchase goods on your accountable points in any apparel
group participating stores across the UAE and Online via
(Dukanee.com), And give the consumers discounts or collecting
numbers of points. The growth in the last 10 years has been by
acquiring a host of world class fashion labels from around the
world, Example - Nine West, Tommy Hilfiger, Kenneth Cole, Aldo
& Tim Hortons.

Supply chain management is strategic that business management


interconnected to planning, controlling and evaluating from final
customer consumption to the original suppliers, by utilize key
cross functional business process to create and deliver value for
the consumption .The more important to having successful
business is the managers of supply chain and there
communications tools and techniques following to reach their
success value. Each supply chain process is usually managed by a
cross functional team which include representatives from
production finance, logistics and marketing.

Sourcing Suppliers & Procurement


Sourcing & Procurement: Sourcing is how to involve and get
a supplier or suppliers in the purchases account for one of the
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largest if not the largest part of the total cost. Therefore, the
importance of sourcing and procurement is undeniable. Sourcing
is about the value-added process of selecting suppliers and the
particular cooperation scheme and which must be supported by
supplier performance information and a well-developed strategy
as well as market intelligence.
However procurement manages the big picture from purchasing
to supplier relationships not the least of how payment
arrangements are setup, procurement refers to the transactional
of the relationship and should be modernized as much as
possible in order to achieve efficiency.
Strategic Sourcing: can make or break a business the overall
goal of strategic sourcing which is to achieve sustainable cost
cuts, techniques to continuously wring value from their supply
chains and long-term supply stability and minimization of supply
risk.
Procurement Optimization: the main focus is on transactional efficiency
and squeezing process-related costs and inadequacies throughout the
purchasing cycle that begins with the identification of the need for the
material and end with its receipt.
.Supplier

management this kind of approach to collect information about

the supplier performance and manner that impact on enterprise operations &
knowledge that can be gained only through existing processes that capture
and analyze supplier performance data. This data needs to be incorporated
into the selection and negotiation process to arrive at sourcing decisions that
actually ensure the lowest total cost.

How the company does implements these activities?


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The main reason that Apparel Group implements MRP areas is that when
they plan materials, which are essential in different shop floor areas, storage
locations or by subcontractors, separately from one to another they must
make sure it all takes affect later on.
As soon as they have activated materials requirements planning with MRP
areas, this type of MRP is active at client level, that is, MRP will be carried out
in this way in all areas.

As the system is specific to the Apparel industry, bills of material are defined as
colure, length and size for each finished product. Thus all data entry, reporting and
enquiry facilities.

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Process Flow
Apparel Group implements material requirements planning with MRP areas in
these three steps:
1. Planning file entries at MRP area level: The processes in material
requirements planning and the planning results remain unaffected and
less risk. During the conversion, the system creates a plant MRP area
for every plant as a background job.

2. Activate MRP with MRP areas in Customizing for MRP. This leads
the MRP area field to appear in the applications of MRP and in related
areas. When they enter the plant number the system automatically fills
the field with the number of the plant MRP area. The number of the
plant MRP area is the same as the plant number. This does not have an
effect on the planning run as the plant MRP area still corresponds to
the present plant.
3. Define an MRP area, for example, for a storage location. They then
assign the materials that are to be planned for this storage location
by creating an MRP area segment in the material master.
Materials requirement planning for this storage location is then carried
out one by one. The storage location stock is no longer included in the
available stock of the plant MRP area. Also receipt and issue elements
of this storage location (MRP area) are not taken into account in the
plant MRP area. Only they are taken into account in the MRP area of
the storage location.

Inbound logistics, Material flow and Information flow


Inbound logistics
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Inbound Logistics is the activities of receiving, how they storing and how
many inside each store and disseminating incoming goods or material for
use.
Material flow includes any physical things, including products and their
material handling aids (pallets, crates, carnets, truck-trailers).
Capital flow includes the request to and use of financial for the material and
transportation, commitment to and actual exchanges of capital between
supply chain members. Also it includes the terms of these arrangements.
Information flow includes objects such as forecasts, product designs or
Bills of Materials (BOMs), organizational protocols (such as the procedure for
resolving disputes or errors), demand profiles and capacity profiles.
Information flow is not necessarily directly related to the flow of materials or
capital, it can be independent.

How

does

the

company

plan

its

Material

and

Information Flow?
Apparel Group maintains a controlled, cost-effective production flow because
they understand the importance of a reliable and controlled flow of materials
into their production process. Their inbound logistics services cover all
activities required to bring goods from a sourcing location to a warehouse, a
value added storage facility or production plant. They offer the flexibility to
meet changing deadlines and provide value-added services that reduce the
cost of production, securing quality materials and eliminating third-party
delays.
Their Inbound Logistics solutions help make manufacturing and assembly
lines run more smoothly and at lower cost:

Inbound transport to effortlessly schedule the arrival of material

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Sequencing the right materials to the production line at the right time
and maximize productivity

Quality control during inspections, removing and replacing substandard items and eliminating disruption.

Vendor managed inventory to manage suppliers and improve cash-tocash cycle

Inventory Management, Warehousing Facility and Cross


docking

Inventory management of the company


1. Apparel Group uses an integrated asset management system, which
provides an accurate inventory list of all the hardware and software
assets in the business. It automatically scans and updates every
asset/nodes with an IP address within the network.
2. Apparel Group has an IT asset management & network inventory
tracking functionality across both Windows and Linux workstations.

Warehouse facilities
Warehouse facility is requiring meeting all of consumer needs. Also
warehouse is strategically design to address industry specific requirements.

Cross docking
Cross docking is known as part of logistics which is the unloading materials
from an incoming semi-trailertruck or railroad car and loading these

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materials directly into outbound trailers, trucks, or rail cars, with little or no
storage in between. It may be done to change type of transportation, to
combine material from different origins into transport vehicles or containers
with the same or with similar destination. Or to sort material intended for
different destinations.

The advantages of retail cross-docking

Decrease inventory holding costs through reduced storage times and


potentially eliminating the need to retain safety stock

Get products to the distributor and consequently to the customer


faster

Decrease, reduces, or eliminates warehousing costs

It may increase available retail sales space.

Disadvantages of cross-docking

The potential partners don't have necessary storage capacities

Its need for an adequate transport fleet to operate

Require a computerized logistics system

Extra freight handling can lead to product damage

Transportation modes and other supply chain features


(Apparel group does not have these features in the company, but a
brief outline of what they are has been given)

Transportation mode
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Mode of transport is one of the many terms used to distinguish substantially


different ways to perform transport. Aviation, land transport, which includes
road,rail and off-road transport, and ship transportare the most dominant
modes of transport. Human-powered transport and animal-powered transport
are sometimes regarded as their own mode.
Each mode of transport has a fundamentally different technological solution
and some require a separate environment. Every mode has its own
infrastructure, operations and vehicles, and often has unique regulations.
The subsystem is a group of many parts that make up one part. The modes
of transportation have 6 subsystems. Which they are: Suspension,
Propulsion, Control, Guidance, Support and Structural. Transport uses more
than one mode and is described as intermodal.

Outbound logistics

Outbound logistics is the process related to the storage and movement of


products from the end of the production line to the users end. In addition,
logistics is the management of flow of resources between their point of origin
and their point of destination, to meet some requirements.

Distribution
Distribution of products takes place by means of channels. The channels are
sets of interdependent organizations which are involved in making the
product available for use. Merchants are intermediaries that buy and resell
goods. Agents and brokers are intermediaries that act on behalf of the
producer but do not take title to the product.

Retail outlets
Retail is the sale of goods and services from individuals or businesses to the
customer. Retailers are part of an integrated system called the supply chain.
The retailer purchases goods or products in large quantities from

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manufacturers directly or through a wholesale, then sells smaller quantities


to the consumer for a profit.
Retailing can be done in either fixed locations like markets or stores, door-todoor or by delivery. It includes subordinated services, such as delivery. The
shops may be on residential streets, with few or no houses or in a shopping
mall. The online retailing is a type of electronic commerce used for businessto-consumer (B2C) transactions and mail order are forms of non-shop
retailing.

Reverse logistics (there is none)


Reverse Logistics is the scientific process of managing assets, in each
department in all industries. It is all the activities that are connected with the
product or service after the point of sale. The goal is to maximize the activity
which happens after the selling which evidently saves money and also
reduces environmental resources. The types of activities which are common
with reverse logistics can include; recycling, warehousing, refurbishment, call
center support, logistics and many others.

Conclusion
Well managed procurement ensures that supplies of the required quality are
available at the right time, place and cost. Supply chain managers help to
reduce waste by selecting inputs that generate less waste (and also lower
costs), and reduce costs and improve profitability bulk buying can provide
economies of scale.
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In Apparel group we believe that there is a framework which is necessary to


develop and implement a process orientation within their firm, and to include
clear guidelines as to do process done, what sub processes and activities are
included, and how the processes interact with each other and with the
traditional functional storage towers. Apparel group is a recognized a famous
company in the UAE and with its supply chain abilities it will surely continue
to be and who knows maybe evolve into a global brand.

References
http://www.supply-chain-visibility.com/updated-supply-chain-visibilityframework/
http://www.manageengine.com/products/service-desk/asset-inventorymanagement.html?gclid=CM_OwJ7yi7oCFXMbtAodKgkAVA
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http://en.wikipedia.org/wiki/Mode_of_transport
http://www.ask.com/question/outbound-logistics-definition
http://en.wikipedia.org/wiki/Distribution_(business)
http://en.wikipedia.org/wiki/Retail
http://www.reverselogisticstrends.com/reverse-logistics.php
http://help.sap.com/saphelp_46c/helpdata/en/40/fd78d4e97011d1a6b20000e
83235d4/content.htm
http://www.businessdictionary.com/definition/inboundlogistics.html#ixzz2j2KIE4gS
http://ecsocman.hse.ru/data/474/089/1217/article4.pdf
http://scm-institute.org/our-relationship-based-business-model.htm
http://appareluae.com/index.html
http://www.soumu.go.jp/menu_seisaku/ict/u-japan_en/new_r_i01m.html
http://en.wikipedia.org/wiki/Material_requirements_planning
http://www.deloitte.com/view/en_GR/gr/services/consulting/supply-chainmanagement/2-sourcing-procurement/

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