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Apply Logistic and Supply Chain Management

Introduction
Supply chain management is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. The purpose of supply chain management is to improve trust and collaboration among supply chain partners.

Objective of the Report

the basic objective of the study is to investigate how Logistics and Supply Chain Management system works in RMG sector. The implications of these factors in overall efficiency in entire value chain System and how these factors affect Supply Chain efficiency.

Research Questions
Research questions which the study will try to get answer are given below: What are logistic and supply chain management? What are the major element of Logistic and supply chain management? How can the Supply Chain management handle in a co.?

LOGISTICS
The term logistics comes from the Greek logos (), meaning "speech, reason, ratio, rationality, language, phrase. The Oxford English Dictionary defines logistics as "the branch of military science relating to procuring, maintaining and transporting materiel, personnel and facilities. logistics contains the integrated planning, control, realization and monitoring of all internal and network-wide material-,part- and product flow including the necessary information flow in industrial and trading companies

Main Logistics Targets

Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization.

Logistics Fields
The main fields of it as it follows: Procurement Logistics Production Logistics Distribution Logistics After sales Logistics Disposal Logistics

Production Logistics
The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right time. The concern is not the transportation itself, but to streamline and control the flow through value-adding processes and eliminate nonvalue-adding ones.

Logistics Management
Logistics is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information.

Logistics management is known by many names, the most common are as follows:
Materials Management Channel Management Distribution (or Physical Distribution) Business or Logistics Management or Supply Chain Management

Emergency Logistics & as a Professional

Emergency logistics is a term used by the logistics, supply chain and manufacturing industries to denote specific time critical modes of transport used to move goods or objects rapidly in the event of an emergency. The reason for enlisting emergency logistics services could be a production delay or anticipated production delay. A logistician is a professional logistics practitioner. Professional logisticians are often certified by professional associations. One can either work in a pure logistics company such as shipping line, airport or freight forwarder or within the logistics department of a company.

SUPPLY CHAIN MANAGEMENT

Before of that time Supply Chain Management was used as different terms like- logistics and operations management in the business fields.

A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves (Chopra S., & Meindl P., 2003)

The Structure of Supply Chain

Producers Distributors Retailers Customers Service providers

Drivers of Supply Chain

Production Inventory Location Transportation

Global Dimension of Supply Chain Management

Cultural and Language Barriers Import/Export Compliance Standards and Testing Practices Advanced Technology Information Management

The Supply Chain management handle in a co.

Hennes & Mauritz, familiar as H&M started its operation in 1947 in Sweden with the concept of offering the fashion and quality at the best price. Today this company sells clothes, ownbrand cosmetics, accessories and footwear in around 2000 stores in 37 countries (H&Ms Annual Report, 2009).

SUPPLY CHAIN PROCESS OF H&M IN BANGLADESH

H&Ms buying office is based in Stockholm, Sweden, where the designer and buyers, together with pattern makers and the merchandisers in different production offices, create, plan for purchase H&M process the order in order to perform the productions by Bangladeshi supplier. The local production office is responsible to monitor local suppliers, corresponding with buyer and other actors involved in the supply chain

Supply Chain Process of H&M

A proto type sample for a particular designed item Finally forward it to merchandisers in H&M local production office in Bangladesh Ask for price quotation Sample collected, evaluated and selected by the merchandiser H&M Bangladesh. Finally approved by corporate office in Stockholm, Sweden. This sample is called Green Tag sample.

Tag Sample
Green Tag Sample made in the correct weight of material. H&M Buying Office require this sample when an order is placed. Please note green seals will not be approved without the completed test request form. Red Tag Sample Full size set quality fabric and trims with colors areperformed by the supplier according to the correct base and critical Path, before production depending on this Red Tag Sample. Gold Tag Samples Gold Tag sample must be approved by quality assurance team of H&M in accordance with each color in each size just three days before for as prior approval which term as OK to ship for cargo shipment/dispatch from supplier factory.

Order Processing, Price setting and Selection of Suppliers

Supply Chain for evaluating the suitable suppliers -Price - Quality and - Lead time

Materials Sourcing by Suppliers

Manufacturing Process at Suppliers Production Plant

Manufacturing Process at Suppliers Production Plant

Monitoring Suppliers Compliance through Code of Conduct

Monitoring Product Quality through Quality Inspection Audit

Process Flow
H&M Export Process Flow Physical Flow of Goods Shipment Booking Cargo Delivery H&M Cargo Delivery Consolidation of Goods

Documents and Information Flow

1. Documentation and information exchange through H&M local production Office in Bangladesh. 2. Shipper submits booking to forwarders web system through MPS. 3. Supplier received the booking confirmation provided by buyers nominated forwarder 4. Supplier prepares export docs -Invoice, Packing List, Export Permit, and etc 5. Document Submit to CFS 6. Forwarder provides Cargo receipt to supplier. 7. Shipper submits FCR to forwarders web system as per PO. 8. CFS report and loading plan forwarded to Supplier and H&M local office 9. FCR confirmation, update stuffing as per stuffing advice transmitted to the client. 10. Shipper submits the original document and sailing the vessel from the port of loading.

Identifying the Factors Affecting Supply Chain Efficiency

Time-consuming sampling process Lengthy process of order issuance Unavailability of raw materials Lack of utilities supply Inadequacy of transportation facility Bureaucracy Port congestion Political unrest Labor cohesion

Time involving Quality check/re-check Individual Compliance check Insufficient technological infrastructure Lack of proper technical knowledge Cultural difference

CONCLUSION
Analyzing our empirical findings, we found that, Bangladesh is a significant outsourcing destination of H&M all over the world. H&M sources about 35% of its total outsourcing from Bangladesh. But Bangladesh has still some limitations in different areas. Despite of having huge opportunity of low labor cost, Bangladesh is facing a lot of problems to decrease the longer lead time due to the lack of proper technological development.