Maria.

Contents
Executive Summary.....................................................................................................................................2
Introduction of the company:......................................................................................................................4
Vision...........................................................................................................................................................4
Mission........................................................................................................................................................4
Maria. B. Brands..........................................................................................................................................5
1. MKids..............................................................................................................................................5
2. Maria. B. Evening Wear..................................................................................................................5
3. Maria. B. Lawn................................................................................................................................5
4. Mbroidered......................................................................................................................................5
5. Maria. B. Linen....................................................................................................................................5
6. Mgirl................................................................................................................................................5
7. Maria. B. Brides..............................................................................................................................6
8. Maria. B. Perfumes..............................................................................................................................6
Analysis of Supply Chain Process.................................................................................................................7
Step 1. Procurement of Raw Material.....................................................................................................7
Step 2. Storage of Raw Material..............................................................................................................7
Step 3. Sending Design to Machines........................................................................................................8
Step 4. Procurement of Raw Material for Embroidery............................................................................8
Step 5. Storage of Embroidery Raw Material...........................................................................................8
Step 6. Embroidery..................................................................................................................................8
Step 7. Quality Check...............................................................................................................................9
Step 8. Cutting.........................................................................................................................................9
Step 9. Packaging.....................................................................................................................................9
Transportation.......................................................................................................................................10
Inventory Management.........................................................................................................................10
Distribution:...........................................................................................................................................11
Imports..................................................................................................................................................11
Exports...................................................................................................................................................11
Global Reach..........................................................................................................................................11

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Role of Technology in Industry:.............................................................................................................11

Discuss the Distribution Management Environment of the company.......................................................12
Conventional Distribution Channel........................................................................................................12
Indirect Distribution Channels...............................................................................................................12
Gap Analysis..............................................................................................................................................14
Conclusion.................................................................................................................................................15

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Executive Summary
This report highlights all of the supply chain processes of Maria. B. which is a leading
fashion apparel brand in Pakistan. It is very popular among the women in Pakistan. It came into
existence in 1999. It was started by Maria Belal Butt who is a graduate of Pakistan Institute of
Fashion Designing. It has 25 outlets nationwide and more outlets in India, UK, USA,
Bangladesh, UAE and Qatar. After its inception in 1999 it has added 7 more brands to its
portfolio which offer different product lines but all deal in apparel. It has the highest market
share in fashion industry of Pakistan over the whole 20 years of its successful operations. There
is only one product line that is not related to apparel which is their most recent offering “Maria.
B. Perfumes”. It is also going very successful.
We visited the manufacturing facility of Maria. B. which is located on defence road 1 km away
from Bhoptian chowk towards Bahria Town. The whole company is divided into two parts. One
is the corporate office where all the designers work and the other is this manufacturing facility.
The factory has three buildings, one main building and two smaller buildings. The main building
has three floors all of which serve different purposes. Detailed analysis of the whole supply chain
process from procurement of raw materials to the packaging of individual suits has been
explained in the report. It is an extensive 9 step process.
It has outsourced nearly 60% of its production requirements as well as all of its logistics are also
handled by third party. An organization of this scale having this kind of market share should
invest in its own assets especially when it is working in the industry for almost around 20 years.
Moreover, the supply chain processes are not responsive enough which we suggest they should
have. They also face frequent stock outs which again points out to the fact that they are not a
responsive supply chain. All the problems we felt have been briefly explained in the project
report. We have identified these few problems and they have simple solutions. One of which is
investment in property, plant and equipment. Other solutions are also explained in the action plan
section of this report.

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Introduction of the company:

Maria B is a Pakistani clothing brand which was founded by Maria Butt. It is based in
Lahore, Pakistan. The clothing includes ready-to-wear, unstitched and haute couture. The
business was started by Maria Belal Butt who is graduate of Pakistan Institute of Fashion and
Design in 1999 in Lahore, Pakistan. A Fashion magazine called Maria Butt Coco Chanel of
Pakistan. In start, she only had one shop and few stitching machines. She started her business
with few thousands of investments.
When MARIA.B started in 1999 with one retail outlet and a small stitching unit where Maria’s
sole focus was to provide ready to wear fashion that reflected an elegant fusion of east and west.
Today MARIA.B. is Pakistan’s most diverse designer fashion brand with prêt a porter, couture,
formal wear, lawn, embroidered fabrics, linen and cottons all within one affordable label while
boasting an extensive retail network with 25 outlets comprising of both standalone outlets and
mall outlets in 12 different cities across the country, while Today MARIA.B. is Pakistan’s most
diverse designer fashion brand with prêt a porter, couture, formal wear, lawn, embroidered
fabrics, linen and cottons all within one affordable label
With a design philosophy rooted in constant change, improvement and originality, the designer
has already become a force to be reckoned with. One of the brightest fashion stars of the
industry, she remains committed to bringing the very best to her customers without fail. She
says, “I have been given tremendous love by everybody but my vision goes far beyond that. I
regard myself as an entrepreneur as someone who’s artistic ability can be portrayed in everything
that I do. Fashion is a medium that can speak volumes, bridge the gap between cultures, allows
human expression like nothing else can. I am lucky enough to be in love with my work, and I
intend to use that privilege to the fullest”.

Vision
Our retail industry needs to mature. We also need our exports to develop. In 10 years, we
have become one of the biggest designer brands in the country. We have five product lines, we
export too many countries in the world, and we have a very loyal customer base of women who
have preferred our brand for more than a decade now.

Mission
“Our mission is to become double our production and exports by enhancing our product
line and by maintaining international standards will be have more grasp in a market”

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Maria. B. Brands
Apart from the original Maria.B. brand, the company now has 7 more brands that are as
follows:

1. MKids
Mkids line was started to fill the gap in the market for good quality, trendy yet traditional
cotton/casual and formal clothes for girls (age 2-14 years). The collection incorporates a diverse
range of colours and cuts for little ones.

2. Maria. B. Evening Wear

MARIA.B was the first designer to launch a ready-to- wear evening/party wear line. The
collection comprises of a variety of color palettes and cuts- from traditional, to a chic fusion of
east and west, from demure to bright; prefect for a night out or even an acquaintance’s wedding.

3. Maria. B. Lawn
The first designer lawn in the market, MARIA.B Lawn started in 2006. MARIA.B lawn includes
a range of designs, colors, embroideries and fabrics. Each design detail is worked out intricately to
provide the perfect 3 piece suits to customers. Their partnership with Swarovski adds the additional value
for the customer.

4. Mbroidered
This is latest addition in the brands that has become the number ONE luxury embroidered
fabric brand in Pakistan. Launched just 3 years ago, this has become the most sought after brand
in the market. From intricate embroideries, to an array of diverse colors, from saris to lehngas,
each design offers a world of possibilities for all. Swarovski crystals add the final sparkle to this
collection.

5. Maria. B. Linen
The only designer Linen in the market that offers high quality shawls, a mix of fabrics,
colors and designs that are intended for winter brunches, lunches and nights out with friends and
family.

6. Mgirl
Mgirl offers one piece kurties and trousers perfect for every day wear.

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7. Maria. B. Brides
Exquisite made to order, customised bridals and formals. Their hallmark is detailed,
intricate embroideries that are different from the others in the market. This clothing line is
intended for engagement, nikah mehndi, mayoun, barat and valima functions.

8. Maria. B. Perfumes
Recently they have introduced a new product line that is perfumes. It is a trend in the
Pakistani market as every designer is launching its perfume line up. So, Maria B has carried on
with that trend and introduced some really good perfumes. Although there is not much variety
right now but the plan to expand it in the near future. The developments for new fragrances are
already in process as we were told on our factory tour but that is in a separate office.

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Analysis of Supply Chain Process

The company has a somewhat responsive supply chain rather than having an efficient
supply chain. This is a good strategy for businesses that deal in fashion industry. Because this is
a high-end brand in Pakistan so it has to be responsive. There was a time when people would
wait for stock replenishment but now with the introduction of so many brands like Asim Jofa,
Agha Noor, Sana Safinaz and many more, people have started to shift to other brands in case of
stock outs.
The factory we visited is the main factory which has 45 machines in it. They have a total of 110
machines in Lahore. The other 65 are outsourced to investors who have installed facilities just to
fulfil Maria B. orders. They range from 10-20 machines per facility. Maria. B. doesn’t own those
facilities. Moreover, all the processing till finished goods is done in Lahore. Other cities are
served from here. They have a centralized system. Although there are retail stores across the
country. All orders are fulfilled from Lahore.
It should be noted that there is a corporate office near the factory which deals in the whole
designing process. All the designers work there to develop new designs. The one visited solely
deals with manufacturing. The designs are sent to the factory. The main factory is located on
defence road 1 km away from Bhoptian chowk towards Bahria Town. The facility has a large
covered area. We were guided through all the supply chain processes of the company which it
undertakes in order to make a finished good. All of those steps are explained below in detail.

Step 1. Procurement of Raw Material

The first stage is the procurement of raw material. Maria. B’s design department finalizes
the designs and orders the raw material in the exact shade they want it to be. They get the raw
cloth from multiple factories which are all located in Faisalabad. The name of the supplying
factories was not revealed to us. Moreover, they get the dyed cloth and not the pure raw cloth.

Step 2. Storage of Raw Material

The second step is to store all the raw material that comes to the factory. The raw
material is delivered to Maria. B. by their suppliers and the logistics charges are paid by them.
They don’t have their own transport network.
The raw material is then stored onto the 2nd floor of the main building which is rather strange
because it takes effort to send them into the machinery. We will get back on this in the problem
analysis section.
The stock is counted and stored in a large hall. It is checked for any defects in that store room.

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Step 3. Sending Design to Machines

Third step is to send the design into the machine. Designing

is a different task that is done from the corporate office.
Sending or we can say translating that design for the machine
is a totally different task. In this step, the graphic design is
translated into mathematical elements for the machine’s
computer to read. It includes the stitching type or format, the
number of colours to be used, stops in the printing or
embroidery, the name of machine to which the command will
be sent, trims.
Furthermore, the print sequence and gaps are given in
millimetres for the machine to read and the colour codes are
also present which need to be used.

Step 4. Procurement of Raw Material for Embroidery

The machinery used for embroidery is from the most famous maker “Tajima”. It is the
world leader in large scale commercial machines. The company itself is Japan based but has
another corporate office in China which serves the Pakistani market. The machines were
imported from there.
The thread used for the embroidery is procured from Feiya Yarn which is a company that
specializes in embroidery thread. Their unit is located at 22-km Ferozpur Road, Lahore. The
thread is delivered to Maria. B. factory by Feiya Yarn and logistics are paid by them.

Step 5. Storage of Embroidery Raw Material

The storage of this kind of raw material is done on the ground floor in the 2nd building
which is a little separate from the main building. This building is relatively small. It only has the
raw material for embroidery and parts for the machines.
Because the wear and tear in these machines is quite a lot so all the machine parts (ranging from
very small nuts to bigger parts) are present in this store. Any replacement can be done as soon as
possible so the machine can be up and running in no time. They don’t have to wait for a part of
machinery to be delivered if it breaks down. All these parts are also imported from China.

Step 6. Embroidery
This is the main task of the whole process. Here all those machines come into power. The
commands have been given into the machine systems and raw cloth has been put in, embroidery
thread has been fitted. All the process from here is automated.

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There are two main halls in which this process is being done that are full of such machines.
There are a few workers present although the process is automated just in case if the machine
gives an error or a part breaks so they have to tackle that. Or if the problem is bigger then they
have to inform into the office.
In the video it can be clearly seen how beautifully all the parts connect in this process. The
thread, the cloth and the designing. It is just amazing how all the pieces fit in.

Step 7. Quality Check

The raw material is in the form of a huge roll. It is processed into the machine in the same
way. And then the same huge roll is transferred into the QC department. This is a separate small
building which has 2 floors. The workers there have large tables which are a little wider than the
width of the roll. It is thoroughly checked by the workers manually. If the roll has a single defect
it doesn’t pass the QC and it is discarded. Only if the whole roll is problem free then it is
transferred to the cutting and packaging department.

Step 8. Cutting
Now that the roll has passed all the quality checks it is moved to the first floor of the
main building i.e. above the machinery halls (Ground Floor) and below the raw material store
(2nd Floor). On this floor there are two halls. The first hall that you walk in is the packaging area
that comes first because it is moved outside easily.
The next connected hall after crossing the first hall is the cutting department where there are
workers who lay flat the rolls on the tables. Instructions for cutting are attached to each roll and
they cut it accordingly.

Step 9. Packaging
The packaging is provided from outsourced supplier. The design for the packing is
obviously given by the Maria. B. designers but it is printed and prepared from outsource
suppliers which is then supplied here in the factory and again the expense for the delivery is paid
by them. The workers here pack the individual parts of the suits into one box. Then it is labelled
and arranged by designs.

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Distribution Channel & Network of your selected organization global reach.

Transportation.
The Transportation is used for several purposes and we have the mix of the in-house and
outsourced transportation facilities. We used our own transportation for the delivering to our
retail outlets within the Lahore and for other cities and for fabric / yarn movement within the
different units we have the transport contractors for different locations. We don’t keep the single
contractor to discourage the monopoly.

Inventory Management
Inventory is the major component of our financial statements and we put more effort to
maintain the inventory for smooth flow of production. We have a full proof inventory movement
system “Inventory Management” system. We are using the weighted average inventory system
for calculating the rates of the individual item. But we prefer to use the FIFO for the issuance of
the inventory to different units. We are maintaining the minimum stock of every item that tell us
about the re-ordering of that item and we calculate this minimum inventory level by considering

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the maximum lead time and the safety stock. We keep the sufficient safety stock in our store for
Spears and tool and general items as the major item are imported that takes more time to import
and for Dyes and chemicals we maintaining the minimum stock as per our planning of the next
three months orders. As the dyes and chemicals are highly volatile items and they turn into the
dead stock after one year we use prudent approach for these items. They recommend the average
inventory turnover for the local dyes & chemicals for two weeks and for imported dyes &
chemicals for four months (based on future orders).
And for Stores & Spares we broken down the items in three categories such as “Insurance
Items”(That could be required any time in emergency and we keep them in stock to avoid any
longs top age of machines, they normally include the critical parts for the machine and that could
take more than 4 weeks to import. Second one is “Running Items” that are commonly use spare
parts and tool and we keep its inventory as per explain above and all the spare parts, Tolls and
general items are approved in the yearly budgets department wise.

Distribution:
Distribution channel are different for Local and Export orders, we have our own
transporation for the distribution to the retail outlets in Lahore but for the other cities we have the
contract with the transporting companies to deliver to all outlets outside the Lahore. For export
we do the direct shipment to the customer. The shipment dates and the destination provided by
the customer.

Imports
Quality and uniqueness is the first priority in maria’s products so for sake of better
quality fabric and precious stones and footwear items are being imported from united states,
Germany. Italy, Thailand, India.

Exports
Currently MARIA.B exports 3 product lines in various countries used in modeling, bride
wear, and casual dresses. The exports are being made to U.A.E, U.K, Manchester and INDIA to
their distributors.

Global Reach
It's promising, but there a lot of little steps that need to be taken before we truly become
global. We still have a long way to go.

Role of Technology in Industry:

The machinery used for embroidery is from the most famous maker “Tajima”. It is the
world leader in large scale commercial machines. The company itself is Japan based but has
another corporate office in China which serves the Pakistani market. The machines were
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imported from there. A Tajima embroidery machine for every possible need and function. From
single head embroidery machines to multi-head and specialty embroidery machines, Tajima has
you covered. Caps, shirts, jackets, bags, blankets, etc. are a cinch with Tajima. In fact, if you can
get a needle through it, a Tajima embroidery machine can embroider it and the thread used for
the embroidery is procured from Feiya Yarn which is a company that specializes in embroidery
thread. Their unit is located at 22-km Ferozpur Road, Lahore. The thread is delivered to Maria.
B. factory by Feiya Yarn.
Technology is used to maximise product quality and reduce production costs.
Technology was identified as the most important area of Manufacturing process decision
making, followed by quality assurance and control. ... Both of these were found to be directly
influenced by process technology.

Discuss the Distribution Management Environment of the company.

Conventional Distribution Channel

● In Conventional Distribution Channels it is assumed that each enterprise working in the
channel is separately owned and operated concern.
● In other words, these are the channels in which the participants operate on the basis of
self- interest, concerned only with the organization from where they buy and to whom
they sell.
● In this, there are four channel designs such as :- –
Direct: Zero level –
Indirect: one level, two level , multi level
● Maria.B is Using Indirect Level for their distribution Channel

Indirect Distribution Channels

Indirect channel is one which the manufacturer sells his products with the help of intermediaries.
The whole process of indirect channel of distribution looks like a chain.
One level Manufacturer ………………… Retailers …………….. Consumers
One – level Channel of Distribution
● Under this system, manufacturers sell their product to retailers and retailers sell them in
turn to ultimate consumers.
● The wholesalers and selling agents are totally eliminated.
● It is suitable when the products are perishable.
● Manufacturer to wholesaler is also preferred in distributing industrial goods.
● Manufacturer Retailers Consumers Manufacturer Wholesalers Consumers.

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Distribution network performance evaluated along two dimensions at the highest level:
● Customer needs that are met
● Cost of meeting customer needs
● Distribution network design options must therefore be compared according to their
impact on customer service and the cost to provide this level of service.

● Services towards Retailers

● • Quick delivery
● • Convenience in buying
● • Return of goods
● • Help of advertising
● • Provide information
● • Creates utilities
● • Transport facilities

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Gap Analysis
We have mentioned earlier in the Step. 2 of the supply chain process that the storage was
being done on the second floor of the main building. We found that strange because
usually the storage of raw materials is on the ground floor. It definitely takes time when
you put it 2 stories up and when needed you have to go and get it all the way down. But
when we inquired to this problem, they told us that yes, they face this problem but they
don’t have any other option. As the machines need to be on the ground floor, they cannot
be placed anywhere else because of the vibrations they cause in the ground. Plus, they are
very heavy so that’s not an option. First floor cannot be used because they said the
finished goods are stored there so it is easier to take them down.
● Another thing is the strange structure of facilities like all the outsourcing and everything
in Lahore. There is a lack of coordination between the manufacturing department and the
designers headquarter which is the corporate office.
● We studied in the rapid replenishment case study of Zara how they integrated designers
and factory workers. That was absent here which is really beneficial in any fashion
related brand. At the time of writing this report around 1/3 rd of the new articles of Maria.
B. were stocked out and all these customers are not going to wait because of so many
options present in the market today. Stock out is not a virtue for them. They are losing a
chunk of sales in all this process.

● Recommendation
Keeping in view all the problems that we’ve observed, there can be several action plans
to eliminate such problems. We think that the building is not properly designed for this size
of operation. The area is enough but it is not well thought out. It may have served them good
when the orders were not in such high quantity but now the place clearly seems mismanaged.
● Secondly, we think that if the outsourcing is being done then it should be in major cities
like Karachi and Islamabad because they have a sales share of about 50%. So, there must
be another warehouse who should receive the outsourced items. Otherwise they should
install a bigger plant themselves. It incurs a huge capital cost. But the market share such
as Maria. B’s they shouldn’t hesitate to do so. It always helps to get more control over
your whole supply chain process.
● Thirdly we think that they should become a more responsive supply chain as a whole. We
felt communication gap between the two offices that are the corporate office and the
manufacturing office. Retail outlets are all managed by themselves. None of them are
franchises and they have got POS systems which generate real time data. So, the problem
is not there. Still if they are facing stock outs then the problem is somewhere in not being
a responsive enough supply chain.

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Conclusion
Maria. B. has an excellent market share in the fashion industry of Pakistan. They can be
more responsive which we think they should be. After all the case studies we have studied in
our Supply Chain Management course specially the last one “Rapid Replenishment” of Zara
we can say this that in fashion apparel industry, your supply chain process needs to be very
responsive. They have further potential of capturing more market share which they are
unable to because of their supply chain processes.
● The finished goods are also moved to all the retail stores nationwide on an outsourced
logistics service. It is a good option for new comers in the market but keeping in view the
years Maria. B. has been in the market it should have invested something in its logistics
department. But every transport needed at any stage is outsourced till this date even after
almost 20 years of successful operations.
● They are very reluctant in investing capital into new machinery, plant and facilities. They
are working on what they have and even have no plans of expansion or capital investment
in the near future. Where as we think they should definitely invest in property, plant and
equipment and go to an extent where all of the processes are managed in house in order
to increase their profit margins significantly.

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