Supply Chain Management Report

Presented to:
Sir Khurram Hidayatullah

Submitted By:

Qudsia Riaz (49826)

Bisma Rafiq (53258)
Ali Akbar (50479)
Aiman Arif (50627)
Syeda Summika Zaidi ()
Alisha ()

Bachelor of Business Administration.

At Iqra University Main Campus.
Karachi, Pakistan.
8th January 2023.

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 ACKNOWLEDGEMENT

First of all, we would like to thank Allah Almighty, who has blessed us with the enlightenment and
constant flow of ideas, understanding and ability to complete this report. In performing this Supply
Chain Report Project, we had to take assistance and advice of some respected people, who deserve
our greatest thankfulness.

We appreciate the guidance we received from our instructor, Mr Khurram Hidayatullah,

who helped us prepare our “Supply Chain Report” promptly and efficiently. And we gained new
information from every conversation we had with him.

We would also like to thank “Mr Zafar Jamil” Head of Supply Chain as well as “Mr Soofi
Ubaid” Manager Talent Management at Artistic Milliners who provide us with precious knowledge
for denim garment products and their growing consumption in global market apart from that they
discussed us with the core problem of company related to supply chain and motivate and help out us
for performing this Supply chain project.

Furthermore, we are grateful to all those who have one way or another contributed and
guided us in endeavouring this supply chain project report.

Thank You!

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S.no Key Term Page No.

Introduction
2. History of Company 4

Product Details
3. 9

4. Leading Denim Exporters 7

5. Manufacturing of Denim & Apparels 9

5. Artistic Energy 14

Artistic Milliners Supply Chain

Procurement
Logistics
5. 15
Warehousing
Distribution

6. Conclusion 16

TABLE OF CONTENT

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INTRODUCTION

Manufacturers & Exporters of Yarn, Denim Fabrics & Fashion Garments eestablished in 1949.
Artistic Milliners is one of the leading denim manufacturing company in Pakistan, it is a
Multinational Corporation with its headquarters in Pakistan. It has a major emphasis on automation,
innovation, research, people, and the planet. Artistic Milliners is a vertically integrated denim and
apparel company with a history spanning more than 70 years including an annual production
capacity of 88 million pounds of yarn, 108 million meters of fabric, and 30 million outfits,
respectively. Artistic Milliners has expanded its portfolio to include renewable energy sources with
a current capacity of 100 MW for wind energy. It also has a developing interest in solar and
hydroelectric systems.

Mission

Artistic Milliner’s mission is, “To sustain their reputation as one of the top manufacturers in the
world by striving for excellence in each function of our business.”

Core Values

“The core values of Artistic Milliners are Quality, Service, Innovation & Sustainability.”

Their Guiding Principles

Artistic Milliners work on a principle of pure authenticity and set a policy of providing equal access
to opportunities and resources for people. Their values are centralized with respect to society;
therefore, they create an ecofriendly system that generates a positive impact on the planet.

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Nurturing People & Plants

They all are beautifully and intricately interconnected with each other and our planet which means
every choice they make has both consequence and potential. In values, they elaborate on the Circle
of Life they represent their philosophy on being one with nature.

Green Collaboration

They are working together to increase our sustainability and social effect.

BACKGROUND

History of Company

Since its inception in 1949, Artistic Milliners has been focused on denim innovation and
sustainability, continually pushing the boundaries of what a pair of jeans can be.

In one of the interviews with OMER AHMED, CEO Artistic Milliners we got to know that it
was his grandfather’s aim to have this progressive project. They started with a small garment factory
and over a couple of decades reverse integrated into denim dyeing, weaving and spinning’’

Over the last nearly 70 years, the Pakistani denim mill has become a fully vertically
integrated operation with the ongoing goal of providing high-end customers with premium quality
denim fabrics and garments. Today, Artistic Milliners employs roughly 16,000 people with
representative offices in seven different cities across the globe and its global headquarters in
Karachi, Pakistan. Ebru OzAydin, director of sales and marketing at Artistic Milliners, discussed the
company’s production capabilities, product development and sustainable manufacturing processes.

Denim Fabric Mills

Artistic Milliners has no small impact on the denim sector as it has a capacity of 5.3 million pounds
per month. Artistic Milliners denim fabric mill is proficient in running different fibre blends, like
cotton and nylon, cotton and Tencel, cotton and polyester, and conventional cotton with recycled
cotton fibres due to a flexible

Blow Room separation feature. The weaving factory, which produces 9 million meters of
cloth each month, is completely set up for various materials with weights ranging from 5 to 15
ounces. It is one of the largest dye ranges in Asia and its production exceeds 6 million meters per
month. Artistic’s dyeing facility is capable of producing deep shades of indigo and other variations.

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It includes state-of-the-art mercerizing, coating, calendaring and finishing machines. Artistic
Milliners' garment facilities, with a monthly production capacity of 1.8 million garments, are
outfitted with cutting-edge automated machinery and processes that can create a range of finished
items. "Artistic Milliners offers cutting-edge innovations every season that are a brilliant fusion of
the newest designs and styles with cutting-edge technical innovation. They are designed to meet the
most demanding aesthetic and practical requirements of various consumers, drawing inspiration
from current fashion trends

Dubai Research & Innovation Centre:

Artistic Milliners has built a Research and Innovation Centre in Dubai to provide its clients and
partners with the chance to stay one step ahead of the industry, analyse emerging trends, and realize
their creative dreams.

Artistic Milliners organizes a number of seminars and training sessions each year with the
top chemical suppliers, laundries, and machine manufacturers worldwide. Robotic sprays, G2
waterless washing machines, and laser technology are all available at our design and innovation lab
in Dubai. The chemicals used in fabric production and garment manufacturing and washing are
certified, most of them by Green Screen or Blue.

Sustainability & CSR:

Artistic Milliners' dedication to becoming a leader in sustainability is firmly rooted in company

beliefs, and it has been a foundation of its corporate culture for decades to strike a balance between
commercial success, environmental preservation, and social responsibility. As a result, the firm has
entered into a closed-loop denim project with global solutions provider CO, becoming the first
denim fabric and garment maker in Pakistan to do so. The circular economy, which is based on
closed-loop denim, is the foundation for a sustainable and profitable future, and Artistic Milliners is
happy to be making a contribution by producing about 1 million meters of closed-loop denim each
month. As the core of denim manufacturing, indigo dyeing remains the most water and chemical-
intensive process, she noted. Artistic Milliners has developed a new technology together with Dy
Star and G-Star.

Artistic Milliners was also the first denim company to develop Cradle-to-Cradle Gold
Certified Denim Fabric. The certified denim fabric, dubbed “Dylan,” is made from 100 percent
organic cotton and produced with the Crystal-Clear indigo dyeing process.

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 As part of its ongoing commitment to sustainability, Artistic Milliners is Pakistan's first
LEED-certified garment factory. Compared to traditional facilities, Artistic Milliners uses 31% less
energy, 50% less water, and diverts 95% of its waste from landfills.

Artistic Milliners’ Suppliers Code of Conduct Methodology is based on set criteria for
labour conditions and workplace practices, and ratings are given according to it. The company
works with Tier-1 suppliers to sign the Business Social Compliance Initiative Code of Conduct,
which embeds social responsibility into the business enterprise culture.

The Women in Denim:

Women can help one another to balance gender roles in the denim industry. The company’s women
empowerment projects are driven by workplace equality, and an assurance that it doesn’t
discriminate based on gender. Currently, 60 percent of the workforce are women. In one of its new
garment manufacturing units, inaugurated in 2016, 80 percent of the workforce is women. Artistic
Milliners’ sales and marketing, supply chain, planning, sustainability, and corporate
communications departments are also all lead by women. “The company goes a step further to help
women take charge of their lives both in terms of personal development and career progress”

Top Denim Manufacturer Countries

Leading Denim Exporters

Every day, international commerce grows, resulting in record-breaking imports and exports
throughout the world. Countries that create goods for export generate far more than they can
consume in their own country. The world’s top exporting countries play a crucial role in global
commerce. This map of the world’s top exporting countries displays the world’s top exporting
countries. These countries export goods and services produced inside their borders to the majority of
the world’s countries. Consumers from all around the world then purchase these goods and services.
Textiles and garments, for example, are one of these countries’ main exports. Although the jeans
industry is cyclical, the market is plagued with scepticism. Many merchants have said unequivocally
that denim has reached the “top of the cycle” at this time.

Pakistan: Denim fabric suppliers in Pakistan include Rajwani Denim Mills, Lakhani, Al-Hamra
Industries, and others. More than half of all denim is now made in Asia, in countries like China,
India, and Pakistan. The use of synthetic fibres is posing a significant challenge to the few
remaining denim mills in Europe and North America.

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Turkey: Esko was founded in 1983 and is part of the Sanko conglomerate, which is based in
Gaziantep, eastern Turkey, and is owned by the Konokolu family. The company aspires to become a
leader in the denim industry. It wants to appeal to more generalist fashion labels as well as
established jeans brands.

China: Xintang is known as the world’s denim capital. Around one in three pairs of jeans sold
globally is made in this manufacturing town in Guangdong province. Xintang manufactures around
two-thirds of China’s denim apparel. At first sight its production statistics are impressive: the
factories there produce 300 million denim articles a year, employing 220,000 people. Around two-
thirds of the denim clothing made in China is produced in Xintang.

Artistic Milliners’ Competitive edge in Industry:

Artistic Lab Dubai

Artistic Milliners Experience Centre in Dubai offers an opportunity to our customers and partners to
stay a step ahead of the market, interpret upcoming trends and bring their creative visions to life.
This platform not only strengthens ties with premium denim and associated companies but also
enables closer working relationships with brands to achieve mutual goals such as taking beautiful,
sustainable concepts from ideas to catalogues.

Brands They Are Working With

Lee Jeans H&M Next

Pull & Bear ZARA MANGO

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PRODUCT DETAIL

Artistic Milliners are an ecosystem of fabrication innovation. Our capsule collections are hybrids
and multi-hyphenates. Looking good is a given but our fabrics are also able to withstand the wear &
tear.

Manufacturing of Denim Fabrics & Apparels

The wrap yarn used in denim fabrics is

uniquely prepared for denim
manufacturing compared to conventional
woven fabrics. The yarn goes through
numerous processing steps before it is
placed on the weaving machine. Unlike the
wrap yarn, most filling yarn is put onto
yarn packages and delivered directly to the
weaving machine where it is inserted into
the fabric without any further preparation in the same as conventional woven fabric.

Artistic is one of the top-rated LEED Platinum certified factories in Pakistan. Leveraging –
the legacy of 70 years, they are committed to manufacturing jeans tailored to perfection while caring
for people and the planet. The purpose-built eco-tech facilities are equipped with industry-leading
automation with a production capacity of 30 million garments per year. They also manufacture
jackets and other high-value apparel.

The following charts revel the necessary steps in the manufacture of denim fabrics & Apparels

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Raw Material

Cotton still plays a significant role in the denim industry when it

comes to cost and consumption. Cotton production in Pakistan is
integral to the economic development of the country, as the nation
is the fifth-largest producer of cotton in the world and the third-
largest exporter of raw cotton Artistic Milliners has joined WWF
Pakistan in its efforts to support growth in this region.

To support the revitalization of the ancient cotton-growing

civilization in the region, Artistic Milliners joined forces with WWF Pakistan and other partners by
pre-booking all the organic cotton from the first ginners and farmers. Pre-booking means that
Artistic Milliners places an order for the organic cotton at a premium rate even before it is produced,
giving confidence to the farmers to make

Spinning:

Artistic Milliners has a spinning facility houses which provide the

most sophisticated automation in the region, resulting in the
production of the finest quality yarn.

All their raw materials are ethically sourced including varieties such
as BCI, organic cotton as well as fibres such as acrylic, viscose,
polyester, and pre-consumer, industrial and post-industrial waste.
They ensure that quality is checked at every stage via our advanced testing lab.

Ball Warping

Warping is the process of transferring multiple yarns from individual yarn packages onto a single
package assembly. In ball warping, 250 to 400 yarn ends are pulled from the creel. The yarn then
pass through a comb-like device (called hack or reed), which keeps each warp yarn separate and
parallel to its neighbouring ends. At intervals of every 1000 or 2000 meters a lease string is placed
across the sheet of wrap yarn to aid yarns separation for the re-beaming operation, which will occur
later. The yarns then go through a funnel shaped device called a trumpet or condenser, which
collapses and condenses the sheet of yarn into rope form. This device is located at the base of the

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warper head and traverses back and forth, guiding the newly rope formed of yarn on to the log. The
rope must be wound at a constant tension to keep the yarn from tangling.

Dying (Indigo Rope Dyeing)

“Dying” is the homogenous colouration of textile substrates

using dyes, which are substantives colorants for the
substrate, and other necessary chemical auxiliaries, such as
surfactants, to improve wetting, despairing, levelling or other
desirable dyeing properties.

Most denim is yarn-dyed fabric with wrap yarns dyed with

indigo dye and the filing yarn left undyed. There are number
of modifications or alternatives in the dyeing process that are routinely used to change the overall
look or performance of the fabric. With the advent of denim garment washing techniques. The
consistencies of the indigo dyeing process and its modifications have become crucially important in
determining the quality and performance of indigo denim products.

Indigo is unique as a major textile dye, because it has a very low affinity for the cotton fibre.
Because of the low substantively of the indigo, the ball wrap dyeing process ring dyes cotton.
Unlike almost all other commercially successful dyestuffs, the indigo dye concentrates in the outer
layers of the cotton yarn and fibre during the dyeing process. This produces an intense ring of colour
around a white core in the cotton yarn and the cotton fibre thus the name ring dyeing. When using
most other dyes, if he ring dyeing effect occurs, it would be considered a dyeing defect.

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Re-Beaming

Re-beaming is carried out just after dyeing process and in this operation the dyed rope of yarn is
wound over the beam in a sheet form in order to size the warp yarn in the form of sheet.

Sizing

The main purpose of sizing yarns is to encapsulate the yarn with a protective coating. This
protection coating reduces yarn abrasion that takes place during the weaving operation and reduces
yarn harness preventing adjacent yarns from entangling with one another at the weaving machine.
Also, this protection coating keeps the indigo dye from rubbing off during the weaving process.

Weaving

The weaving process involves interlacing two

directions of thread the wrap and the weft to make
fabric or cloth. The loom ensures pattern diversity
and faultless fabric by a flexible and gentle material
handling process. Fabrics can be in one plain colour
with or without a simple pattern, or they can have
decorative designs, they are generated from the loom
worth one of three basic weaves plain weave, satin
weave or twill.

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Finishing (After Finishing)

“After Finishing” refers to the treatment of textile substrates to impact desirable properties other
than colouration such as wash-and-wear finish, anti-shrink finish, water-repelling finish and flame-
retarding finishing. It is often simply called “finishing” and thus may cause confusion with its
meaning that carries a broader implication.

Cutting

In this process the denim fabric comes to the

cutting space where through the pattern of jeans
the fabric cut through machines, they don’t cut
only one at a time bunch of fabrics cut at the
same time using a big cutter.

Sewing

After cutting the sewing process start, they use high tech machines for swing some are automatically
for other parts they use some works to assist. After the sewing the jeans go through the laser
treatment to ensure the jeans would be strong and the denim fabric should not break easily.

Washing

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After the whole process of making denim jeans the jeans washed through a large cube machines
where, 100 litter of water used for one denim jeans.

Packaging

The last step is to pack the jeans and after that they stores it in the warehouse.

Artistic Energy

Artistic Energy, a wholly-owned subsidiary of Artistic Milliners, are producing the cleanest form of
energy by harnessing the power of nature from Wind, Solar, and Hydro. The wind farms that they
use are supplying renewable energy to the national grid currently generating 100 MW with zero
occupational incidents and lighting up more than 50,000 households. They are also making
progressive investments in solar and hydro energy. A solar Hybrid project of 25MW and a separate
50MW solar project in Sukkur is in the final phase while 2 Hydropower projects in KPK, with a
combined capacity of nearly 100MW, are also in progress.

The Retraced application will be distributed to all key stakeholders in the value chain. It
involves 500 cotton farmers in the Rahim Yar Khan region of Pakistan who will be equipped with a
mobile application for managing their cotton sowing, picking and shipment to track the lifecycle of
cotton to the ginner.
The ginner–also equipped with the Retraced application–will be able to digitally discern
between the different cotton shipments and assess their quality. The tagged cotton will then be sent
to the Artistic Milliners in-house spinning, dyeing, weaving and cut-make-trim facility in Karachi,
where it will continue to be traced via a Retraced system integration.
The cotton thread will then be manufactured into denim fabric and apparel for clothing
brands around the world. These brands can, in turn, use the data to evaluate the apparel’s production
standards and communicate the source of the clothing to their consumers.

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Artistic Milliners Supply Chain

Procurement

Procurement Monthly budgets are made to plan purchasing activities. These comprise of dividing
the allocated budget into the inventory policies already defined at the warehouse from past data and
experience. FIFO method is used for all items for the inventory at the warehouses. Artistic Milliners
is using International procurement only as there is no intermediaries part is involve they directly sell
it to their customer’s .

Logistics

Logistics is done through the 3rd party logistics provider since they are near to port their cost is less
compared to other as they don’t have wholesale or retail stores and directly selling to customers in
bundle.

Distribution

They are distribution channels they are using first is Ocean as they are exporters of denim fabric and
garments. So the large shipments take place they are exporting to the large area as they are leading
exporters of denim in Pakistan.

Warehousing

As Artistic Milliners has made their factories in

Korangi industrial area the warehousing is quite
easy for them as they export their all products as
port is near so they had made two warehouses
one is near to the factory where the finished
product stored like garments also they stored the
denim fabric as it is their first finished product.

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They had a mother warehouse also where most of the products stored the safety and other process
also follows strictly.

Conclusion

Artistic Milliners is a leading denim mills and are 3rd large exports throughout the world. They have
a very large and very satisfying process of supply chain procedures. As the leading company they
are also ensuring to smooth their supply chain. In this report we had cover how the artistic milliners
is making their product how their supply chain works we had ensure to add all the relevant
information that we gathered.Through this report we had found of the supplychain process that
follows in the denim company

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