The Supply Chain of RMG Industry:

A case study on “The Mohammadi Ltd.”

For :
Muhammad Ismail Hossian
Lecturer
Department of Marketing
University of Dhaka

By:
MACHISMO
Roll No.: 16, 32, 60, 74, 88
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”
 A leading readymade garments Manufacturer & Exporter of the country Mohamma
had started business in 1986 with one factory and 52 work forces.

Presently Mohammadi Group running 7 Garments Factories (4 Woven, 3 Sweaters)

with 6,000 approx. works forces.

Company
 Major Market place:
EUROPE: 40 %
Profile USA / CANADA: 60 %
 Capacity:
WOVEN SHIRT = 450,000 - 500,000 Pcs.
SWEATERS = 250,000 Pcs
 Annual Turn Over: US$ 35 Million (approximately)
 SBUs :

I. ARROW APPARELS LTD II. MG SHIRTEX LTD.

III. MG KNIT FLAIR LTD..
VII. SAMPLE FACTORY:
V. MOHAMMDI PACKAGES LTD.
IV. MOHAMMADI FASHION SWEATERS
LTD
VI. MOHAMMADI PRINTING &
EMBROIDERIES LTD.
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

Wal-Ma rt Sears K-m art

Major
Ko hl’s H & M Arr ow
Customers
Calv in Kle in Nex t Yves Do rsey

Envoy Group Babylon GroupIII

Major
Competitors ABA Group Opex Group

Emillion Group Nasa Group

 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

Wall-Mart: Order Received

(Buyer)

400000 pcs

A sample Production
Li & Fung:
Transaction Buying MG’s & Mearsk
Flow of Merchandisers Quality (Shipment)
House
MG check
250000 pcs
150000 pcs
To others. Agency
Bidding

Beximco Atlas
(Supplier) (Logistics)
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”
Cycle View : Buyer
Buyer Order
Cycle Buying
House
Manufacturing
Cycle
Mohammadi
Process Procurement
Ltd.
Supplie
view Cycle
r
Figure: Supply Chain Process Cycles of
of Mohammadi Ltd.
supply
chain Push / Pull View :

Pull
Processes Buyer order, Manufacturing &
Procurement Cycle
Buyer order
arrives
Push
Processes

Figure 7: Push/Pull Process for Supply Chain of

Mohammadi Ltd.
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”
Replenishment lead time
On-time performance
Supply flexibility
Delivery frequency/minimum lot size
Supply quality
Sourcin Inbound transportation cost
g  Pricing terms
Strateg  Information coordination capability
 Exchange rates, taxes and duties
 Supplier viability
ies

Supplier Supplier Transacti Procuremen Sourcing

Scoring And Selection onal t Planning and
and Purchase
Assessment Analysis
Contract
Negotiation
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”
Stages of Purchasing :

Purchas
ing
Strateg

ies
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

Plannin
g
&
Managi
ng
Invento

ry

1=In the lead time of production, MG need “q” amount of

inventory which used for the production & these inventory are
ordered according to the buyers order. This is also applicable for
the other time frames.
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

Logisti

cs

BUYER
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

Trust
&
Interdepen
dence in
the SCM of
Mohammad

i Ltd
According to Mr. Atiqur Rahman, DGM (Merchandiser), of
Mohammadi Ltd:
“We have some clients for 10 years. This is a vital factor in
the RMG sector. Because in this market, the buyer switch so
fast. We have no collaboration, no partnership or our Chairman
is not vital for this relationship. This is only the Trust &
Interdependency though we have some lack in it, in frankly
speaking.”
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

Value
Of
Visibility
In
Decision
Making

Types of Visibility:
Types • chain of custody,
Of • Pedigree,
Visibility • Inventory age profiling.

From the perspective of Mohammadi Ltd, pedigree is the

appropriate visibility.
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

SCM In case of visibility, The Mohammadi Ltd is Transparent,

Visibility because they need to share all the relevant information
Of
about their product, production & transaction.
MG
 Value
Creation
Stages
of MG

Sketche
d by
“Machis
mo”
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”
 Share of information need to increase because it will help to
increase the efficiency & effectiveness of the firm.
 Own transportation facility can increase the transportation
responsiveness.
 Mohammadi group can set up own Buying house which will increase
their revenue and also help to capture large quantity of production
order.
Recommenda  Mohammadi Ltd needs to provide after sales service which will help
tions to induce a better relationship with the buyers.
 Mohammadi Ltd. can use seasonal specialized work force which
reduce their operation cost.

 They need to develop the components of facility that is –

Change the location of the factory because it is in a backward
position to find out.
Transportation facilities need to increase because it will fasten the
operation.
They can use computerized system in their 4-line operation.

 Coordination between the group will give a competitive advantage.

 Mohammadi Ltd. should use specialized SCM softwares for fast
achievement of the supply chain management speed.

 Reduce operating costs in the office management & give more

emphasize on customer relation.
 The Supply Chain of RMG Industry: A case study on “The
Mohammadi Ltd.”

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