Clothes Product

• Introduction
The Apparel (Clothes) business Industry as time goes by, the interest is regularly rising.
TShirt is the example among the preeminent popularity and persistently be the most Demand of
the wear business. Because of ever changing occasions there are Partner in Nursing
evolvement/overhaul in innovation and arrangement process so, that will offer the best (good)
quality and will be fix for the customers on account of high request (demand).

In the clothing (wear) business though TShirt is are the contrary primary classifications
which are appealing to the fundamental classes anyway, its referred to as shirt. Every jacket and
coat is made likewise of a proportional material.

The essential (critical) business is Farming “cottons” at that point the optional business is
crude materials procedure (cotton technique) and subsequently the Tertiary business is once a
severe element (last form) set.Based on All Fashion Magazine, they will use Gildan for their
Tshirt.

First: Primary Industry, Second: Secondary Industry, Third: Tertiary Industry.

Agriculture Processing of raw materials Assembling of final product

The crude (unrefined) material of Tshirt are cottons and it will be in the heat climates
then, a large (enormous) part of the world cottons are created in the Uzbekistan, China, US, and
Asian nation. Its, generally plant made in China, Indonesia, India, Vietnam, East Pakistan,
Philippines, and accordingly Sri Lanka. In addition, subsequently the business community may
be found inside the whole world inferable from the dreadfully request.
• Zara Identification

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Zara is a brand of a fashion (Clothes) business from Spain. Until now Zara has entered 73
countries in the world. Zara has found a difference that sets her-self apart from other
competitors.

Zara https://www.slideshare.net/dawood_abbasi/zara-7192543

This has made Zara become a competitive company and continues to use the ASC (Agile
Supply Chain) method. In the world of fashion, companies compete on time (time-to-market) to
meet the need for increased competitiveness
 The dexterity it has is the power to capture fast responses. ASC is a network that is very
fast in the chance or occasion identified from other rival. Zara has found differences from rival
by doing dissimilar action.

https://www.researchgate.net/figure/Conceptual-differences-and-relationships-between-lean-and-agile-manufacturing_tbl1_255723781

• The Supply Chain Step of Zara

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In the scope of the supply chain, the delivery of goods occurs at the beginning of the
incoming material, then the finished product is sent to the customer at the right time and at the
right place. That activity will takes place on transportation services.
On distribution activities, companies must be able to design the right distribution
network. Distribution network decisions must consider the trade off between aspects of
flexibility, aspects of speed of response to consumers and also aspects of cost. There are 4 things
supplying goods of Zara:

1. Comity and format (organization and design),

2. Obtain and output (purchasing and production),

3. Backflow effect and auction (sales and feedback),

4. Hand out products (Product distribution).

• Distribution Strategy
There are 3 types of distribution from factory to customer, and each of them has its own
advantages, namely :

1. Direct Delivery
This delivery is made directly from the factory and sent to the customer. Usually used for
items that are short lived or items that are easily damaged. The advantage of this method is that it
saves more shipping costs, shortens the time it takes to reach the customer. But this method also
has a very high risk, namely when there is uncertainty in demand for goods, it causes uncertainty
about the supply of goods as well.

2. Delivery Through Warehouse

In this method the goods are not sent directly to the customer but through one or more

warehouses / facilities. This method is suitable for goods with uncertainty and items that are

durable or do not break down quickly. The advantage of this method is in reducing uncertainty

from customers or a number of suppliers. But this method is more costly because it has to pay for

storage and the goods also take longer to reach the supplier / customer.

3. Cross Docking
 This method is done by moving the product directly to an adjacent location so that

delivery is faster. And still be able to achieve Economics of Transportation because of

consolidation.

• Countries of material/ Manufacturing and market place

T-shirt mostly are made from cotton and all around the world cotton is grown in the
India, United States, China and others. Cotton takes 6 months or more to grow depend on type or
location of the cotton farm. When the time is right they are ready to harvest by using cotton
picking machine and drive path after path on the field stripping the fibers from the plants. it’s so
complicated to choose the right time to harvest. Farmers need a sunny day, heat and moisture day
to harvesting. Sometimes raining can also affect on the harvest. During the cotton processing
stage they need to cleaned up and removing impurities and then the soft fluffy become a strong
fiber.

http://www.madehow.com/Volume-2/T-Shirt.html

This type of fiber going through innovative spinning process that’s designed thoroughly
soften and straighten each fiber together to create a raw fabric that is strong enough to be worn.
Once the fabric completed will get transport to a dye house where the fabric is dyed to the color.
Once the fabric is dyed it gets transported as fabric rolls across the large cutting table. When the
cutting machine is arrives to cut the fabric into the shape of the required design and sewing.
After the design they transport all the fabric into a factory to be final completed.

• Supply Chain Management

 Supply Chain Management is broader than logistics management, from suppliers to the
end customer. Supply Chain Management is an extension and expansion of logistics activities
towards upstream and downstream.

Is a complete chain management cycle starting from raw materials from suppliers, to
operational activities in the company, continuing to distribution to consumers. The term supply
chain management was first coined by Oliver. It is a physical network, namely companies
involved in supplying raw materials, producing goods, or sending them to end users, supply
chain management is a method, tool, or management approach. There are so many definitions
according to experts, one of which is a total system approach to delivering products to end
consumers using information technology to coordinate all elements of the supply chain from
supplier to retailer, then reaching the next level which is a competitive advantage not available in
traditional logistics systems.

- Product developments
Doing market research, designing new products, involving suppliers in designing new
products
- Procurement
Selecting suppliers, evaluating supplier performance, purchasing raw materials and
components, monitoring supply risk, building and maintaining relationships with
suppliers.
- Planning & Control
Demand planning, demand forecasting, capacity planning, production and inventory
planning.
- Production operation
Production execution, quality control.
- Shipping / Distribution
Distribution network planning, delivery scheduling, finding and maintaining
relationships with shipping service companies, monitoring service levels at each
distribution center.

It is important that the rationale for this concept is to focus on reducing waste and
optimizing value in the related supply chain. Conclusion from the definitions of the management
of various is the activities in order to obtain raw materials, followed by transformation activities
so that they become products in the process, then become finished products and continue with
delivery to consumers through the distribution system. The activities carried out include
traditional purchasing and various other important activities related to suppliers and distributors.
as for the stipulations, namely:

- distributors and parties who assist transactions such as banks

- payment in cash or credit (transfer process)
- Information regarding demand forecasts, production and inventory control.
- Transport
- Accounts payable and receivable
- Warehousing
- Order fulfillment
- Supplier

• Supply Chain Management Strategic Objectives

The supply chain is like the blood of any business organization as it connects suppliers,
manufacturers and end customers in a network that is essential for the creation and delivery of
goods and services. Managing a supply chain requires a process, namely, the process of
planning, implementing, and controlling supply chain operations. Major problems that occur in
the supply chain:

- Determine the right level of outsourcing

- Manage the purchase / procurement of an item
- Manage suppliers
- Manage customer relationships
- Identify problems and respond to problems quickly
- Manage risk

Supply chain has strategic objectives that need to be achieved to make the supply chain
win or at least survive the competition. To be able to win the market competition, the supply
chain must be able to provide products that are:

1. Be on time

2. Varies

3. Cheap

4. Quality
 All actions taken by the company are intended to help the company achieve its strategic
competitiveness and generate above average profits. Strategic competitiveness is achieved when
a company is successful in formulating and implementing a value creation strategy. When a
company implements a strategy that cannot be imitated by other companies or is too expensive to
imitate, this company has a competitive advantage that can survive or can survive (sustained or
sustainable competitive advantage, hereinafter referred to as competitive advantage). Once a
company has gained strategic competitiveness and successfully exploited its competitive
advantage, a company is able to achieve its main objective: earning above average returns, that
is, the excess income an investor expects from investment.

• Supply Chain Management Process

The supply chain management process is the process when products are still made of raw
materials, semi-finished products and finished products are obtained, changed and sold through
various facilities that are connected by chains along the product and material flow.

https://intranet.bloomu.edu/scm-mission

The chart above shows that supply chain management is the coordination of material,
information and financial flows among participating companies.

- Material flow involves the flow of physical products from suppliers to consumers
through the chain, as well as backflows from product returns, services, recycling
and disposal.
- Information flows include demand forecasts, order transmission and order status
reports
- Financial flows include credit card information, credit terms, payment schedules,
ownership and delivery arrangements.
• The basics concepts (model) of supply chain
The main actors who have an interest in the flow of goods can develop a supply chain
model, which is a plastic picture of the chain linkages of these actors which can be shaped like a
chain that is connected to one another. Supplier's suppliers have been included to show the
complete relationship of a number of companies or organizations that collect or collect, modify,
and distribute goods and services to the final customer. One of the key factors for optimizing the
supply chain is by creating an information flow that moves easily and accurately between the
network or chain and the effective and efficient movement of goods that results in maximum
satisfaction.

Indrajit and Djokopranoto (2000)

Is a system where a place to distribute manufactured goods to customers. This is chain is

also a network of various organizations that are interconnected with the same goal. That is, as
possible to carry out the procurement or distribution of the goods. Supply chain can also be said
as a logistics network, with the main players being:

- Supply
- Factory ( manufacturer)
- Allocation (distribution)
- Dilution shop (retail shop)
- Client ( customers)

The physical form of an item in the supply chain can be seen as a stage of the value added
network of processing materials, each of which is defined by input supply, material
transformation and demand output.
 James A. and Mona J. Fitzsimmons (2006)

Supplier, manufacturing, distribution, retailing, and recycling / remanufacturing

connected with arrows represent the flow of material with stock stocks between each stage. The
transmission of information in the opposite direction is shown as a dotted line and includes
activities performed by the supplier, the product design process, and customer service. The
manufacturing stage represents a traditional operation where raw materials arrive from external
suppliers; material changes in some way to add value, creating a finished goods inventory. Other
downstream stages such as distribution and retail also add value to the material.

• Flow Management supply chain

There are 2 concepts that are often used, namely:

a) Reduce the amount of supply

- This concept was developed since the late 1980s, with the aim of reducing non-
uniformity, negotiation and tracking costs,
- Initial change from the concept of multiple-supplier to single supplier.
- The concept of open tender is increasingly unpopular because it does not guarantee
a limited number of suppliers.
b) Develop strategic alliances or supplier partnership
- develop supplier partnerships or strategic alliances
- Only with partner suppliers, key suppliers for certain goods are strategic sources
that are reliable and ensure the smooth movement of goods in the supply chain
- This concept is accompanied by the concept of continuous improvement in cost
and quality of goods.
The model can be seen in the image listed below. There are 4 step models, which consist of:

- Sub suppliers – supply

- Plant – company (manufacturer)
- Allocation (distributors)
- Dilution (retailers)

The Four Step Model Yosnex.files.wordpress.com

• Stages towards supply chain management

Essence, Organizational networks that concern the upstream (upstreams) and downstream
(downstreams) relationships, in different processes and activities that produce value that is
tangible in form goods and services in the hands of the last customer. Competition occurs
between one supply chain and another, not between company upstreams and downstreams.

Yosnex.files.wordpress.com
• Similarities and Differences in Logistics Management and SCM

A. Equation

- Both involve managing the flow of goods or services.

- Both are concerned with managing the purchasing, movement, storage,
transportation, administration and distribution of goods.
- Both involve efforts to increase management efficiency and effectiveness goods.

B. Difference

a. logistics management
- Prioritizing management, including flow goods in the company
- Oriented to planning and frame work that produces a single plan of flows
goods and information throughout the company.
b. Supply chain management
- Prioritizing the flow of goods between companies, from upstream to
downstream
- Strive for interrelation and coordination processes from other companies in
business pipelines, starting from suppliers got to the customer.

• Measuring Supply Chain Management Performance

Measuring supply chain performance is the first step towards improvement, initial stage
that needs to be defined and determined in order to achieve the improvement goals.
Schroeder argues that in general there are five important points that can be measured in
supply chain management performance, namely:

1. Shipment (Delivery)
Refers to punctuality of delivery percentage of orders delivered completely and
not by the date requested by the customer.

2. Character (Quality)
A direct measure of quality is customer satisfaction and can be measured in
several ways. One of them, can be measured against what customers expect. This
measurement is closely related to customer loyalty.
 3. Period (Time)
The total fill time can be calculated directly from the inventory level. If we
assume there is a constant level of use of inventory, then the time in inventory is
simply the level of inventory divided by the level of use.

4. Graciousness (Flexibility)
Flexibility is the time required to change the volume or product mix by a certain
percentage or quantity.

5. Fee (Costs)
There are two ways to measure costs. First, companies can measure the total cost
of shipping, including manufacture, distribution, the cost of carrying inventory, and
the cost of carrying accounts receivable.

• International trade within supply chain

Countries which are the largest producer and exports of raw cotton are India, China and
America. These 3 countries are also the biggest manufacturer of cotton yarns, while China and
India also play a major role in production of the cotton fabrics. It is also well known that
developing countries such as Asia, South Asia and South East Asia with low labor costs are the
main contributor in manufacturing and producing the final product; shirts. After the production
of the goods, the main retail place and market of the products are usually located in European
countries and the United States.

A free trade agreement was signed by Pakistan and China back in 2006, and since then
the second phase of the agreement has recently been negotiated early this year. This new
agreement provides a reduce and elimination is few tariffs for Pakistan, while China will have
access to Pakistan’s market in raw resources and materials. In addition to that, the established
FTA between China and ASEAN countries have been implemented with lower tariffs on cotton
garments (HS codes of 61-63).
 One of the ways in which the government can make it easier for import-export activities
outside and within the country is by establishing a Free Trade Agreement. This can attract
foreign investments, specialization of the country and eliminate barriers. FTZ in Shanghai also
benefits many businesses to streamline the processes, cut waiting time for customs clearance,
duty free and no taxes implemented on the goods, etc.

• Free Trade Agreement

China free trade agreement: China is seeking to improve trade relations. China assigned
16 free trade agreements with 24 countries included Hong Kong, Macau, Chile, Pakistan, New
Zealand, Singapore, ASEAN, Taiwan, Peru, Costa-Rica, Ice Land, Switzerland, Australia, South
Korea, Georgia, Maldives. Countries also sent over 50 agreements of understanding on
cooperation.

India free trade agreement: In 2017 India has signed 10 FTAs and 6 limited preferential
trade agreements that is PTAs the list of the FTAs that have been signed by India are Sri Lanka
and South Asian free trade area have 7 members are India, Parkistan, Sri Lanka, Banglesda,
Nepal, Bhutan and Maldives. Also have Afghanistan, ASEAN, European Union, EFTA,
Mercosur, Japan, Malaysia and Chile.

US free trade agreement : United states is a major country for international trade also the
leader of free trade. United States has 14 free trade agreements with 20 countries Australia,
Bahrain, Canada, Chile, Colombia, Costa-Rica, Dominican Republic, El Salvador, Guatamala,
Honduras, Jordan, Israel, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, Singapore.

• How government can help manufacturer to trade in foreign land

Export tax that base on government system in foreign land is really important for
manufacturer to trade with the ease in foreign. One of the biggest section of the manufacturer’s
profit is mostly also depends on the tax percent that the explorer has to pay to government.

In this situation, if the government has a good trade education program; Trade
Commissioners and Consul Generals, which became what would bring manufacturer’s high
profit and more benefit. Secondly expose transportation; air, road, seaport that base on
government system and devolve are really important for manufacturer. Government agents also
help you sell all raw materials or any other product to foreign markets.
• Cargo Delivery Process
The stages that must be carried out are:

- First, the exporter will charter a cargo ship according to the agreement in the sales
contract.
- Second, exporters come to Customs to take care of the Export Declaration Letter
(PEB) and pay all obligations, such as export taxes etc. After that, they get the HS
(Harmonized System) Code.
- HS Code is a classification of goods that is commonly used for export and import.
This application is carried out for the purposes of statistics, tariffs, rules of origin,
and control of commodities when export / import occurs.
- Then, the exporter loads all the goods to be exported abroad (Bill of Lading). Proof
of delivery can be sent to the advising bank to forward it to the importer.
- Furthermore, the importer will receive documents after all payments have been
completed through an advising bank. This document is important for picking up
goods from the cargo when they arrive.
- Finally, the goods can be collected by the importer.

• The Production of Cotton Shirt

There are many networks involved in the extended supply chain of creating a cotton shirt.

The supply chain first started at a cotton farm where mature cotton bolls are harvested by a huge

cotton picker machine. The cotton bolls will then be compressed into large cotton modules; to be

transported to a processing plant where the cottons will be separated from their fibers and seeds.

The processed cottons will then be pressed into cotton bales, packaged, tied up, labelled and

transported to a yarn manufacturing plant to be spun into yarns. After a long and extensive

process, the finished yarns are shipped across the globe to be woven into fabrics; which also

have to undertake another extended process of treatment and dyeing. The approved fabrics are

turned into fabric rolls, packaged, labelled and shipped to textile retailers and major brand’s

warehouses. As large brands buy fabric materials from their suppliers; depending on the location

of the warehouse, the fabrics are transported in bulk by plane or truck to the designated place.
The fabrics will then be finally designed, cut and sewed by the workers; transported into the

market and put on retail.

Fig 1.1 Supply Chain of Cotton T-Shirt (Jeans, 2016)

• The Criterias which incluences modes of transport

There are various criteria in considering which modes of transport should be used for the

supply chain of shirt. The upstream channels involved most commonly utilizes large and heavy

trucks when transporting the raw materials. For example, cotton modules are raw perishable

goods that are transported by trucks; covered by tarps to protect it against wind and rain,

although they are quite resilient. The journey of the cotton bolls from the cotton farm usually

only travel in short distances; with costs calculated based on amount of modules loaded and total

fuel cost spent on the way.

• The Economic drivers in the Supply Chain

 Additionally, the key drivers which influence the cost in transport economics applied in

the supply chain are the density/weight of the items, stow-ability of the products, as well as

market destination of the goods. When transporting cotton modules and boles, the cost depends

on their weight loaded inside the truck; the same can also be applied with transporting yarns,

fabric rolls and shirts in cargo or freight forwarding services.

It is important to take note in packaging the items; keeping its weight and modes of

transport in mind in order to prevent any damages to the product. Yarns, fabric rolls and shirts

have to be covered and packaged carefully inside a cargo container and utilizing dunnage, pallets

& airbags to secure the container; stored away from any moisture and kept dry. Liabilities also

plays a significant role as to ensure that there are insurance and proper risk managements

provided for all of the products.

Fig 1.2 Dunnage Airbags (n.d.). http://www.cordstrap.co.nz/dunnage-bags

.

• Storing of fabric and shirt

 When storing textile and clothing materials like shirt, it is important to take note of the

warehouse design. The textile and shirt have to be thoroughly cleaned and treated before storing;

fabric rolls covered with plastic and shirts put inside a container that is waterproof and provides a

good ventilation. The warehouse temperature should also be cleaned, does not have any

moisture and kept at around 23°C. Labelling and storing of the containers are also important in

order to identify each products. This can be done by utilizing use of shelving, machineries,

designing efficient warehouse layout and executing regular maintenance to make sure that

everything is in a working condition.

• Warehouse Performance Measurements

Warehouse and transport measurements plays a significant role in the industry. Picking

accuracy, turnaround time and total costs are one of the main measurements that should be taken

into consideration. As orders from the customers are received, the machine/employees should

pick the correct items from the inventory to be shipped, while also rechecking its accuracy to

prevent from sending out the wrong item. The turnaround time of the whole process should be

measured, especially when dealing with orders that are prioritized and have to be shipped out

immediately. For example, order received from a retail store that needed a few bulks of shirts at

the same day will require the warehouse turnaround time to be as efficient as possible in order to

be shipped to the customer on time. Total cost of holding the inventory and shipping out the

goods have to be properly measured to avoid any unnecessary expenses.

• The Technology and The Software used in the Warehouse

 Use of technology and software are huge contributions for the warehouse system. GTIN,

SSCC, automated picking, etc can be used in the warehouse for storing of shirt. In major brands,

GTIN can be utilized as identifier of their items as the supply chain of the product will be visible,

making it easier to track its movements. SSCC should be applied to all goods received and

shipped out to the customers, with receipts to ensure item accuracy. Use of automated picking

can also be beneficial as it can cut labor cost, increase order picking accuracy and is more

efficient.

• Conclusion

Clothes, have always been crucial in everyone’s lives. T-shirt is one of them with high
demand through years. A lot of different brands launched a larvae variety of t-shirts every
seasons. The appeal industry is full of competitors, which a company need to manage their
supply chain well in order to survive in the industry.

Zara is one of the well known clothing retailer which sells a wide range of t-shirts. The
reason that Zara has been successful in maintaining their status in the industry is they use the
ASC method. It allows them to Cali tire the emerging trends in the market, and response the
expectations of customers. This differentiates them from other competitors. Zara has its own
supply chain which includes designing products, purchasing raw materials and production of the
clothes, sales and feedback as well as distributing the clothes.

Image from: fotopia.com

Supply chain management is of great importance for a company. Supply chain

management includes a lot of stages such as procurement, planning, and product operation. It
allows different companies ranging from suppliers, retailers and end customers to communicate
effectively and efficiently. It improves the punctuality of the goods being delivered to the
customers. Supply chain management includes a lot of stages such as procurement, planning, and
product operation. It’s vital for a company to minimize its costs meanwhile provide a good
quality product.

China, US and India are the countries which produce and export most of the cotton in the
world, meanwhile they are the largest cotton yarns manufacturer. China and India play a major
role in producing cotton fabrics as well. As known for the low labour costs in the Asian
countries, most of the t-shirts are produced there and sent to the retailer stores mainly in US or
Europe.

Image from: business line

Free trade agreements became important when there are import and export activities
included in order to achieve lower costs for the players in the supply chain. It does not only help
the company involved in the supply chain, but also attracts investors when there is less barriers
which can boost the economy.

Supply chain management for t-shirt includes steps from designing, purchasing raw
material(cotton) and delivering the raw materials and finished products. Storage is vital since
cotton have to be kept away from water. It should be packed with waterproof materials and
ventilation should be considered when delivering and storing it. Warehouse also plays an
important role in the chain which they have to communicate clearly between both the colleagues
and customer so as to ensure the accuracy and efficiency of the delivery of the product.
Technology and software like GTIN and SSCC helps solve the problems of accuracy and
increase efficiency at the same time.
 To sum up, the demand of t-shirts in the apparels industry is increasing from day to day.
Supply chain management became more and more important for a company to survive. Supply
chain management allow the company to have a map of connections, control the cost,
communicate clearly among different players, as well as perform rush management. FTAs are
one of the important aspects in supply chain management since it usually includes a lot of import
and export activities.

• References

Singh, M., 2015. Zara Supply Chain Management. [online] Available at:
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August 2020].

Singla, N. and Arora, P. (2020). China Pakistan FTA-2: A New Regional Hub For Cotton
Garments In The Offing? [online] https://www.outlookindia.com/. Available at:
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regional-hub-for-cotton-garments-in-the-offing/348942 [Accessed 29 Aug. 2020].

Lyngaas, K., 2020. Life Cycle Map T-Shirt - Sustainable & Refashioned Design By Buddha
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htm/#:~:text=Yarns%20are%20today%20transported%20worldwide,strapping)%2C%20bag
s%20and%20boxes.> [Accessed 16 August 2020].
Truckload, A., 2020. The Cotton Supply Chain In Texas | USA Truckload Shipping. [online]
USA Truckload Shipping. Available at: <https://usatruckloadshipping.com/the-cotton-
supply-chain-in-texas/> [Accessed 16 August 2020].
Callahan, Peter. "Sunday Best: Protective Wear for Your Day in the Sun." Omni, October 1992,
p. 35. Kopkind, Andrew. "From A to Tee." Harper's Bazaar, July 1993, pp. 34-36.