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Contents
Company Introduction................................................................................................2
Products..................................................................................................................2
Process View (Push & Pull)......................................................................................2
Inventory.................................................................................................................3
Safety Stock............................................................................................................3
Supply-to-stock/Supply-to-order..............................................................................3
Six Drivers...............................................................................................................3
Raw Material...........................................................................................................5
Purchasing...............................................................................................................5
Raw Material to Finished Product to End Consumer................................................6
Suppliers.................................................................................................................7
Scope of Strategic Fit..............................................................................................7
Distribution..............................................................................................................8
Sale Outs.................................................................................................................8
Relationship with Supplier.......................................................................................8
Who decides the Price.............................................................................................8
Capabilities..............................................................................................................8
Production Explanation...........................................................................................9
Logistics Strategy....................................................................................................9
Efficient or Responsive and also Compare............................................................10
Location Strategy..................................................................................................10
COTTON MAP OF PAKISTAN...................................................................................11
Forecasting Methods.............................................................................................12
Aggregate Strategies............................................................................................12
Order Processing cycle..........................................................................................13
Order Processing
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Company Introduction
RESHAM TEXTILE INDUSTRY was established in 1995 by five brothers
Ch.Rehman Buksh ,Ch Muhammad Kursheed ,Ch.Muhammad Rasheed ,
Muhammad Ilyas and Ch Muhammad Arshad Saeed to upgrade the current
facility of their ginning MILL to yarn capacity as the group is known as
(Siddique Brothers)in the ginning sector their ginning mill was up and running
since 1978 so the brothers decided to upgrade the facility by buying yarn unit
from China and keeping in view the major crops of cotton in the district of
Vehari and other surrounding areas. This decision by the brothers proved to be
a very successful venture for the company and the surrounding areas.

Products
The major products of Resham textile mills are:
1. Cotton yarn
2. Oil cakes
3. Edible oil
4. Cotton waste

Process View (Push & Pull)

A supply chain is a sequence of processes and flows that take place within and
between different stages and combined to fill a customer need for a product.
In Resham textile mill we use cyclic view, since the final product is the raw
material for other waiving industries. Push strategy is used by the management
of the Resham textile industries.
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Inventory
Since the cotton crop comes once a year so the inventory used by the Resham
textile industries is the seasonal inventory

Safety Stock
Resham textile industry maintains the safety stock of 500 bales of cotton

Supply-to-stock/Supply-to-order
Resham textile industry use supply to stock strategy due to the nature of product

Six Drivers
For any company to achieve its strategic fit there are six drivers to improve the
supply chain performance they are:
1. Facility
2. Inventory
3. Pricing
4. sourcing
5. Transportation
6. Information

Facility:
The physical location for Resham textile mills is ideal for any textile industry
because of its availability of raw material in District Vehari and other cotton
producing areas. Other one is the storage facility that is within the mill.

Inventory:
There are two types of inventory used by the Resham textile mills:
1. Raw material inventory
2. Finished goods inventory
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Raw material inventory is maintained during the cotton season, when the cotton
season is purchased by the farmers for processing. It is used by the ginning
plant of the mill.
Finished goods inventory is composed of cotton yarns where the company
stores them in the ware houses as their final product.

Pricing:
Company does not have any control over the pricing of the product because of
the Government regulations. Every textile industry in Pakistan has to sell
products on Government determined rates.

Sourcing:
It is the choice who will perform the particular activity such as production,
storage, transportation.

Transportation:
It is the only driver that has been outsourced by the management of Resham
textile mills.

Raw Material
Raw material used is the cotton crops

Purchasing
Purchasing in the textile Mill is done by

• Through agents
• Direct buying form farmers
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Raw Material to Finished Product to End Consumer

Fig shows the clear link between the raw materials to finished
goods and the end consumer.
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Suppliers
In country like Pakistan there are not much big name suppliers
for the product because of local availability but there are
brokers in the market and many textile firms buy their products
straight from the farms.
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The suppliers are the cotton market of vehari and near

by farms

Scope of Strategic Fit

The scope used in the company is the intercompany and inter

functional because of the nature of the business and the
organizational ownership.

Distribution
Distribution network of the firm is out sourced through local
transport company.
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Sale Outs
There are no sales outlet as the final product of the firm is used
by other business .the B2B sales are done.

Relationship with Supplier

For any company the relationship with the supplier is very
important as the company tries to have good relationship with
the farmers for that the company have established good
payments methods for the farmers their amount is given to
them through check within 24 Hrs and other incentives like
seeds, cotton bags are given to them so they grow more and
more crop.

Who decides the Price

In the country like Pakistan where the government decides the
price through textile ACT 1994 no textile firm is allowed to buy
the products from the farmers below that rate. Mostly
Government is responsible of the price.

Capabilities
Resham textile mills have the flowing capabilities

• ISO 14000 certified

• In house powerhouse
• In house warehouse
• 2000 bale per day consumption plant (only one unit is
working)

Production Explanation
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The raw cotton is purchased from the farm and market then it
is weighted and then it become the property of the company
the supplier get its cheque form the office and then with the
help of huge suction machines the cotton is sucked and
brought to the plant where it pass through saw machine which
separate three things

• Cotton wool
• Cotton seed
• Cotton waste

Cotton wool is sucked trough vacuum and seed fell below and
waste is thrown in the junk pile .cotton wool is collected in a
hydraulic press and compressed to form a cotton bale and then
sent to warehouse. Whereas the seeds are spread under sun light
to remove the moisture and then sent to oil department for
crushing and then the residue in the form of oil cake is collected
and stored in separate warehouses.

Logistics Strategy
Since Pakistan is a developing country and there are not many
major international players in the textile sector of Pakistan
majority of the companies don’t have logistics strategy which is
defined. We have seen that the most firms use the cost factor
in their any operations due to the nature of the product the
simple rule is used “Buyer own Carriage”that means that the
any company who wanted to purchase any product like cotton
yarn, cotton cake, cotton seed oil must have to pay the logistic
cost by that means the firm save a huge amount of cash on out
bound logistic operations.

Not only Reasham Textile Mill uses this policy but generally it is
being used by all the textile mills in the region.
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Efficient or Responsive and also Compare

The nature of product being produced does not support

responsiveness therefore efficient supply channel is followed as
inventories are used to achieve good economies by allowing
economical production runs, purchasing in large quantities,
batch order processing and transporting in large shipment
sizes. Where as in responsiveness excess capacity, quick
change over, short lead times, flexible processing, premium
transportation and single order processing are being followed.

Location Strategy
The company chose to establish its plant in Vehari because of
the availability of the cotton crop in the nearby farms.

COTTON MAP OF PAKISTAN

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Forecasting Methods
Forecasting method are classified according to following four type
1. Qualitative
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2. Time series
3. Causal
4. Stimulation
Resham Textile mills is implementing the time series method of the demand
forecasting. Time series forecasting method use the historical demand to make a
forecast. They are based on the assumption that past demand history is a good
indicator of Future demand. Since the cotton crop is a major contributor of the
country’s economy and most of the farmers of interior Sindh and South Punjab
grow cotton as it is a most profitable crop of the county so many textile mills and
the Government itself use time series method of forecasting the future demand.

Time series method is used for the seasonal products for that we use static method
which assume that estimate of level; trend and seasonality within the systematic
component do not vary as new demand is observed.
Systematic component = (Level + Trend) X (Seasonality)
Aggregate Strategies
There are three major strategies which are mostly implemented by the
organizations are as follows:
• Chase strategy using capacity as the lever
• Time flexibility from workforce or capacity strategy
• Level strategy using inventory as the lever
Resham Textile Mill use Chase strategy- using capacity as the lever it results
in low level of inventory in the supply chain and high level of change in
capacity and workforce. It is used due to the very high cost of carrying
inventory and low cost to change level of machine and labour capacity.
Order Processing
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The figure clearly shows the order processing cycle it consist of the following
steps.
• Order Requesting
• Data Entry
• Order Filling And Delivery
• Order Received And Feedback

Order requesting
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In context of the Resham textile mills most of the order is received via Phone to
the company’s office regarding which product is to be bought and how much
quantity is required by the buyer. Mostly the brokers visit and processing plant and
they collect the samples and then place the order.

Data Entry
Mostly the order is given by the phone and then the office clerk enters the data on
registers. All the orders of the day are recorded on paper and then after it is
recorded on the computer .to maintain the data of the orders. It include
1. Stock checking
2. Accuracy checking
3. Credit checking
4. Back order /order cancelling
5. Transcription
6. Billing

Order filling and delivery

Once the order voucher is dispatched from the office the office clerk prepared the
required paper work and called the local transport company for the delivery truck
.the office clerk creates the bilty and other important documents. On the arrival of
the truck the store manager receives the order and start the supervising the loading
process .and then dispatched the shipment to its desired location. Following
important process are the part of the order filling and delivery process.
1. Product retrieval, production ,or purchase
2. Packing for shipment
3. Scheduling for delivery
4. Shipment document preparation
Most of the time in the textile sector of Pakistan there is no concept of product
retrieval as the customers collect samples and then place orders according to their
desires.
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Order Received and Feedback

The final step in the order processing cycle is the order received and feedback .we
can say that the it’s a very important step in the cycle as it involves the customers
.in context of the textile mills we can say that the CRM process comes in this step
of the order processing cycle and the it include the following
1. Tracing and tracking
2. Communicating with customer on order status.
These tools help the customer to have the best relationship with the customer.