|Supply Chain Management in textiles | | | | | | | | | | |To keep all the systems in textile industry in order, it is ideal to have a proper supply chain management, emphasis B Basu and Aarti | |Sharma, who highlight the mode of supply chain, the pros & cons of each system and present the fact as to how the Supply Chain | |Management has become an integral part of business in textiles. | |Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to | |manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both | |within and among companies. It is said that the ultimate goal of any effective supply chain management system is to make products | |available when needed. | |Supply chain management flows can be divided into three main flows: | |• The product flow | |• The information flow | |• The finances flow | |The product flow includes the movement of textiles from a supplier to a customer, as well as any customer returns or service needs. The | |information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment | |schedules, and consignment arrangements. | |Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this | |includes key suppliers, manufacturers, and customers of a textile manufacturing company). By sharing this data “upstream” (with a | |company's suppliers) and “downstream” (with a company's clients), SCM applications have the potential to improve the time-to-market of | |products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs. | |Supply chain management is typically viewed to lie between fully vertically integrated firms such as Reliance who produce the raw | |material – polyester yarn and also the finished product - Vimal a single firm and those where each channel member operates | |independently. Coordination between the various players in the chain is a key in its effective management. | |Supply chain decisions | |The decisions for supply chain management can be classified into two broad categories -- strategic and operational. As the term implies,| |strategic decisions are made typically over a longer time horizon. These are closely linked to the...
References: |6. Breitman R L and J M Lucas (1987): PLANETS: A Modeling System for Business Planning. Interfaces, 17, Jan-Feb, 94-106. |
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