KHAADI (PAKISTAN)

BY

MUHAMMAD MUIZ
HAIDER ALI BAIG
SHER AFGHAN KHAN

Degree Program
BBA- BATCH (18-22)
 DECLARATION

It is to declare that this research work has not been submitted for obtaining a similar
degree from any other university/college.

Muhammad Muiz
Haider Ali Baig
Sher Afghan Khan
MAY 2021
 ACKNOWLEDGEMENT

The opportunity to do this dissertation is no doubt one of the ultimate blessings of Allah
and Muhammad WA AAL E Muhammad (S.A.W.W). It has been a very pleasant journey,
especially to be able to learn from many inspiring persons and continuously receive support,
advice, and friendship from many personalities.

Third, I would like to thank Ma’am Wajeeha Rauf, Director social sciences, The
University of Lahore, Lahore who has provided financial and moral support throughout my
thesis. The greatest support, however, inevitably came from family and friends.

ABSTRACT/SUMMARY

Khaadi is a Private organization and it is from the nation Pakistan. It is a garments brand
which offers hand tailored kurtas, ladies’ materials and so on when khaadi open his image the
climate of the market is smoky, implies numerous brands presented in the garments business.
They extend their business further and presented recent trends for garments like Khaas which
are restricted release pieces additionally for youngsters that age are 2 to 12 years of age. They
additionally presented extras for the two men and ladies just as kids. Due to that their deals
are developing and increment their name in the market. In this manner it increments their
image esteem and being mainstream in Karachi. At that point khaadi extend business and
start outlet in different spaces of Pakistan like Lahore Islamabad Multan Faisalabad and
Peshawar and so forth at that point khaadi extend their market further into worldwide level in
December 2014. The Shamoon ruler began the business in 1998 the thought was created and
he thought we need to begin an exceptional business, where we have the two advantages.
Khaadi dispatches so numerous items and some of them are even mainstream enough for the
entire nation Pakistan. Khadi Khaas is the top model materials of Khaadi brand. They are
over the top expensive and furthermore exceptionally wonderful plan of suits. They are over
eleven thousand rupees in cost. They have an excellent sharp color on them. In home
adornments Khaadi has a delightful style bed sheets, some of them are printed and some of
them are weaving. Khaadi additionally offers some delightful, exquisite plan warm cloaks.
These cloaks have social plan and they likewise come in printed plan and as well as weaving
plan. Khaadi has verity of good quality extravagant and easygoing purses. They likewise give
offers satchels for youthful school going, school going and furthermore college going young
ladies. Khaadi offers a colossal assortment of gems. They focus on all period of client like
school going young ladies, school going young ladies, college going young ladies, develop
women, hitched ladies and mature age ladies. In extras Khaadi offers little frill of ladies in
day-by-day use. In frill they have hair trimmers, hairs groups for ladies to tie their hairs.
Khaadi presented aromas for ladies in Hyderabad and Karachi. Like different organizations
or brands, the Brand Khaadi have likewise so numerous contenders. In this world at whatever
point there is a major business goes on that business faces a great deal of messengers as
contender who when to smash that business and needs to turn into the number one
organization. The brand Khaadi targets a large portion of the working-class family people and
a portion of the exclusive class moreover. In general, the brand khaadi is focusing the country
over in our country Pakistan. The greater part of the brand outlets is in where each sort of
individual can undoubtedly approach and that is the reason it is famous in each sort of family
particularly working-class families and a portion of the exclusive class families.
 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION
1.1 BRIEF INTRODUCTION OF EACH GROUP MEMBERS
1.2 BACKGROUND OF THE COMPANY
1.3 BRIEF HISTORY OF THE COMPANY
1.4 COMPANY GROWTH
1.5 SWOT ANALYSIS
1.5.1 Compare strengths with one competitor
15.2 Compare threaths with one competitors
1.6 PESTEL ANALYSIS
1.7 CHAPTER SUMMARY
CHAPTER 2: NATURE OF THE PRODUCTS AND SERVICES
2.5 PRODCUT LIFE CYCLE
CHAPTER 3: SUUPLY CHAIN MANAGEMENT
3.1 INTRODUCTION WITH COMPLETE SUPPLY CHAIN PICTURE
DECISION PHASES IN SUPPLY CHAIN AS PER YOUR SELECTED
3.2
COMPANY
3.3 PLANNING SUPPLY AND DEMAND IN A SUPPLY CHAIN
3.4 PRICING AND REVENUE MANAGEMENT IN SUPPLY CHAIN
3.5 DEMAND FORECASTING IN SUPPLY CHAIN
3.6 CO-ORDINATION IN A SUPPLY CHAIN
CHAPTER 4: DISCUSSION AND CONCLUSION
4.1 CONCLUION
4.2 BREIF COMPARISON WITH COMPETITOR
4.3 LIMITATION AND FUTURE SCOPE OF THE COMPNAY

REFERENCES
CHAPTER 1: INTRODUCTION

1.1 BRIEF INTRODUCTION OF EACH GROUP MEMBERS

Our group members are Sher Afghan, Haider Ali Baig and myself Muhammad Muiz.

We are all enrolled in LBS-BBA batch fall (18-22), Currently studying in 6th semester. And
our topic for project is KHAADI PAKISTAN, it Is an apparel industry and it is well known
and famous for its beautiful prints and vibrant colors.

1.2 BACKGROUND OF THE COMPANY

Khaadi is a Pakistan-based lifestyle and fashion brand that was established in DEC 1998.
Shamoon Sultan, the company’s CEO and founder opened the 1st Khaadi outlet in a small store
in Zamzama twenty years ago. It has fifty-two stores in seventeen cities throughout Pakistan.

Other than that, it has twenty-two stores in the United Kingdom and several other stores across
the world, including the flagship store outside Pakistan in city center Midriff in Dubai. The
brand has over forty outlets in the UAE and the UK. This article contains all the information
about the brand, including Khaadi History.

In 1999, the 1st store was launched in Zamzama Karachi. Within Two years of its establishment,
it grew to multi-stores and launched a diverse variety of products. Until 2017, ASA, a leading
architecture company, worked as the interior decorator for khaadi stores in the United
Kingdom, United Arab Emirates, and Pakistan.

The brand expanded globally in 2010 by opening outlets in the United Arab Emirates, 1st in
Dubai and then in Abu Dhabi. Store launches in the United Kingdom were scheduled in 2013.
It founded a 1630 square foot store in Birmingham’s Bull ring shopping center in 2014, and
other sites include Westfield Stratford city and Westfield London in Birmingham, United
Kingdom. In Sep 2015, the company also launched a branch in High cross, Leicester, United
Kingdom. In September 2015, a 22000 square feet store was opened in Dolmen Mall Clifton,
Karachi.
Nasir Mansoor, a known figure at labor rights forums and the deputy-general secretary of
PNFTU (Pakistan National Federation of Trade Union), dismissed a defensive claim made by
khaadi Headquarters in response to allegations by khaadi factory employees. According to
allegations, the garment company had violated many of the worker’s rights, ranging from
falling to provide workers with official written recruitment letters. To refuse to issue mandatory
Social Security Institution (SSI) deposits, risking employee job stability and well-being.

By 2002, it was manufacturing female’s wear, and by 2008, it had grown into female’s luxury
wear with the launch of khaadi khaas. Khaadi transformed into a huge retail brand in 2012,
when it planned to grow with the client and launch vibrant lawn prints. It launched furniture,
bags, bed sheets. Shoes, and accessories, quickly becoming an entire lifestyle brand.
Color, heritage, culture, and craft were always vital to the brand’s design philosophy. The brand
took inspiration from all around the world in order to establish itself as a multinational ethnic
brand. Craft and tradition are rooted and woven into the fabric of any item bearing the khaadi
name. The brand’s base is proudly Pakistani, respectful of tradition, and committed to making
fashion available to everyone. Khaadi provides the best quality for money and is a lovely mix
of tradition and modernity, with its vivid colors and imaginative designs.

Khaadi’s variations are what renders it unique, and it is vital to the brand that customers could
happily and proudly share every wonderful part of themselves with the universe. Khaadi was
built on the idea that the clothes you wear should allow you to express yourself. It is providing
an opportunity to women to wear vibrant and inspiring dresses at reasonable rates-while
celebrating their individuality with each and every design, stitch and weave. The brand’s
unparalleled range of ever-changing colors and patterns is constantly pushing the limits of the
Pakistani fashion community.
The brand strikes a balance between tradition and modernity. Modernity is expressed in the
uniqueness and wide variety of patterns and designs. It gives women the confidence to share a
new aspect of their personality via their fashion choices allowing them to select a style that
represents their individuality.

1.3: BRIEF HISTORY OF THE COMPANY(KHAADI)

Khaadi is basically a Pakistani fashion and lifestyle brand founded in December 1998. It
operates 52 stores in 17 cities across Pakistan, 22 stores across UK and various stores all over
the world including flagship largest store out of Pakistan in Midriff City Center in
Dubai. Khaadi is a private company which is own by Shamoon Sultan (Founder or
CEO). He is a Pakistani textile designer, textile businessmen and founder of khaadi, an
international retailing fashion house which produces “hand woven” clothing material for
men, women and children as well as home furnishings clothing line.

 In 1998 started by Shamoon sultan with offering customers Kurtas and loose fabric
made from hand woven fabric.
 Core ideology hand woven fabric with blend of both eastern and western touch.
 Multinational Pakistani clothing fashion brand.
 In house dyeing and stitching units and design studio.
 Awards and Nomination earned.
 Biggest selling shop ever in Pakistan at DOLMEN MALL CLIFTON, Karachi with
total of 22000 square feet.
This company serve in different areas around the world like
Asia, Europe, Australia, America, Northern America and Middle East etc. And its
headquarter is located in Pakistan.

Its first store was open in Karachi’s Zamzama in 1999, Khaadi then expands to multi-stores
within two years of its inception and introduced wide range of product lines, Leading
architecture firm ASA served as the interior designer for Khaadi stores at Pakistan, UK and
UAE, offering a wide range of products from apparel for women, men and kids to home-
textiles, in both printed and hand-woven fabrics.

In 2010 the khaadi decided to compete international market by opening of its stores in UAE
first in Dubai and then in Abu Dhabi. In 2013 the next plan was to open store in UK.

In 2014, Khaadi opened a 1,630 sq ft store in Bull Ring, Birmingham at Bull Ring shopping
Centre and other locations include Westfield London and Westfield Stratford
City, Birmingham, UK. Company also opened a store in High cross Leicester, UK in
September 2015. A Khaadi store was opened in September 2015 at Karachi’s Dolmen
Mall Clifton. And so, on khaadi become successful company of textile industry in Pakistan.
And here is some awards of khaadi in below table:

1.4 COMPANY GROWTH

The year 2017 is the first run through the Pakistani clothes market hit Rs1 trillion in shopper
spending (as indicated by an investigation led by Profit dependent on information from the
Household Integrated Economic Surveys, distributed by the Pakistan Bureau of Statistics). It
is likewise the year the greatest brand in the business – Khaadi – found out about both the
advantages and the expenses of being the market chief, with an extremely open work debate
and a line of negative stories distributed about it in the print media.

In the almost twenty years it has existed, Khaadi has gone from being a little store on the side
of a restricted road in Karachi's Zamzama business territory to turn into the business
characterizing brand in Pakistan's retail style area. In transit, it has made, extended, and
vanquished market that was practically nonexistent before Khadi’s dispatch in December
1999. However even as it remains as the unmistakable hero of a quickly developing business
sector, Khadi’s k has never been trickier. In the following little while, the activities of
Khadi’s administration, especially author and CEO Shamoon Sultan, will decide if it turns
into a genuine public (and conceivably worldwide) corporate symbol, or whether it will
shrink and disappear into indefinite quality.

While Khaadi unmistakably began as a meaningful venture zeroed in on selling khaddar

apparel, it didn't remain as such for long. Shamoon and Saira may have an imaginative
enthusiasm for the items they make, yet they are plainly economically engaged too,
dispatching ladies' apparel lines, pret, and grass. The organization sells both readymade
articles of clothing and unstitched texture.

The organization started growing its essence, first inside Karachi, at that point on to Lahore
and Islamabad, trailed by eight different urban communities across Pakistan. By 2010,
Khaadi felt certain enough to make its initial introduction to global retail, setting up in Dubai,
followed rapidly by a store in Abu Dhabi. In 2013, Khaadi started opening stores in the UK.
Khaadi at present has an aggregate of 54 stores, of which 42 are spread across metropolitan
Pakistan, eight stores in the United Arab Emirates, and four in the United Kingdom.

While the organization doesn't distribute its financials, sources acquainted with its financials
who addressed Profit on the state of secrecy expressed that it had incomes of near Rs16
billion in the monetary year 2016, of which Rs14 billion or so was in Pakistan and another
Rs2 billion was from its unfamiliar areas. That number makes it the biggest style brand in
Pakistan, having overwhelmed the fare arranged Gul Ahmed Textile Mills' homegrown
image, Ideas.

While the organization works across numerous business lines, more than 90% of its income
comes from only two of them: pret and unstitched fabric. In every one of the leftover
business lines, even individuals inside the organization recognize that they face hardened
rivalry. Specifically, their top-of-the-line ladies' attire line – Khaadi Khaas – is broadly seen
by customers as being outperformed by Sana Safinaz. What's more, in men's wear, Junaid
Jamshed stays the main brand. Nonetheless, what recognizes Khaadi from its rivals isn't only
the nature of its items, yet the purchasing experience itself. Khaadi right now works the
biggest design store in Pakistan, the 22,000 square-foot leader store in Dolmen City Mall
Clifton, in Karachi. What's more, it intends to get the lead space in basically each and every
new Class A shopping center that is being underlying Pakistan's new shopping center
structure blast. Its prosperity has propelled some not-so-unobtrusive copycats, including
Kapray and Beech tree, which spread out their stores precisely like Khaadi.

In any case, Khaadi is additionally not the sort of retail dinosaur that puts resources into
blocks and mortar without offering thought to its online presence. Through its site, Khaadi
brags one the biggest online business presence in the nation, beaten regarding on the web
income exclusively by particular web-based business organizations like Daraz.pk.

However even as it puts resources into the physical and innovation framework to sell its
items, Khadi’s administration stays perceptive of the way that it is above all else a design
organization, and henceforth dealing with its ability pipeline is basic. It helps that Shamoon
and Saira have remained effectively included at IVS, and have developed associations with
the staff at IVS – presently broadly perceived as one of the main two craftsmanship and
configuration schools in the country. Staff at the organization assist the couple with
distinguishing the most encouraging understudies before any of their rivals have gotten an
opportunity to see their work, giving Khaadi an inside edge at gaining admittance to the

absolute most generally sought-after ability in the country.

1.5 SWOT ANALYSIS

(Strength weaknesses Oppourtunities Threats)

As these apparel brands are almost the same, they have similar looks and stuff but all these
brands have different and unique set of qualities and branding strategies. One of the biggest
competitors of khaadi is Sapphire (and apparel brand for women). Both the brands use
unique set of strategies to advertise their brands as well as these brands are well recognized
all over Pakistan.
Now the challenge is both have almost similar but unique stuff and designs (prints) when it
comes to buying, they both use SWOT analysis at its extreme.

Strengths:

Khaadi, a brand established in 1988 by Shamoon Ismail, is a well-famous attire brand and
with the assistance of its excellent items has figured out how to fortify its image name
throughout the long term.

Khaadi likewise appreciates economies of scale because of its enormous objective market,
which assists the organization with delivering its new stock like clockwork.

The organization not exclusively is prestigious for its great items yet additionally for its
magnificent fitting administrations.

Weaknesses:

Khaadi, albeit on the lookout for over thirty years has not had the option to make a powerful
and effective site to improve its online deals. It has additionally not had the option to
appropriately work its men section and a high extent of its business income comes from the
women fragment.

Additionally, the organization ought to likewise hope to advertise its item viably. Khaadi has
been known to have a poor/wasteful advertising capacity division.
Opportunities:

Khaadi can investigate further freedoms to expand its deals and net gain. Khaadi can begin
investigating new business sectors in different nations where it doesn't work and it can
likewise expand its intended interest group with the assistance of item improvement, for
example, Khaadi for Children, which will clearly build their deals because of its generally
notable brand name.

Threats:
As Khaadi has been working for over thirty years, it as of now appreciates economies of
scale, yet, there are organizations in Pakistan that can demonstrate to danger as there are
numerous contenders particularly in a market like Pakistan.

Another danger that practically every one of the organizations are compromised by is the
monetary downturn. Khaadi will doubtlessly have a more prominent effect because of a
downturn as it's an extravagance item and has exorbitant costs so buyers will move to other
less expensive other options.
1.5.1 Compare strength with one competitor

Strengths

 Strong relationship with existing suppliers

 Strong Balance Sheet and Financial Statement of Sapphire-
 First Mover Advantage
 High Margins
 Strong Brand Equity and Brand Awareness
 . Superior product and services

1.5.2 Compare threats with one competitor

Threats
 US China Trade Relations
 Growing Protectionism
 Increasing bargaining power of buyers
 Government Regulations and Bureaucracy
 Threats of New Entrants because of Reducing Costs and Increasing Efficiencies

While the strength and threats of KHAADI are mentioned below:

A. Strengths:

• Khaadi claims an inventive culture in garments industry.

• They have the solid production network and dispersion systems.

• Khaadi consistently have fresh introductions in around fourteen days.

• They have the great client devotion and fulfillment level.

• Khaadi has a high worth of its image on the lookout.

• Khaadi has a decent wrap and incredible potential.

• Their special exercises is catching a tremendous measure of their objective market.

b. Weakness:

• Khaadi has need consciousness of unfamiliar brands.

• Khaadi's garments line for men is feeble similarly.

• Their cost structure is high.

• Khaadi needs number of craftsman’s and gives low wages to the current
craftsmen.

• They typically don't have assets for their image.

c. Opportunities:

• Only 4% of Khaadi is contributed in Pakistan's yearly texture creation, so it tends to

be expanded.
• They can have the new result of good quality.

• They can accomplish new business sectors to target.

• They can build their online presence more.

• They can perform great in men's market.

d. Threats:

• Khaadi has the colossal and serious rivalry.

• Its conventional technique for weaving fabric can make hurt for its image.

1.6. PEST ANALYSIS

Khaadi, as a brand, must follow the labor laws set by Pakistani law. The firing of labor,
disregarding the minimum wage laws, and exploiting the labor has impacted khaadi’s revenue
significantly and also led to increased pressure from government. The trade union and political
activists such as Jibran Nasir came together to ensure that the labor was given their rights.
Khaadi should ensure that they stay in line with all these policies and changes as violating these
can impact their profits and brand image significantly.

ECONOMICAL:
Khaadi, before facing the crisis and being called out publicly was committing a series of frauds
that was leading to their booming profits. As highlighted earlier in the report they refused to
register their workers with SESSI and did not provide them with EOBI rights. According to
these laws, for the employees to be able ensure a secure future after retirement they need to
provide Rs780 every month out of which Rs130 is to be given by the worker and the rest needs
to be submitted by the employer. But as khaadi did not abide by these laws they saved up to
Rs850 per employee, each month. Afterwards they agreed to register their workers in both of
these pacts which led to the decrease in profits and to compensate that they diversified their
brand. Khaadi has introduced many sub divisions under their main brand like khaadi home,
khaadi skin care, khaadi khaas etc. This led to the increase in audience and general public being
catered to. In addition to this they have also expanded their brand all across the world in
countries like USA, UK, UAE and CA which made them earn more than they ever lost.
SOCIAL:
Social factors greatly impact khaadi, as it’s a leading fashion retailing brand it has to remain
relevant with distinct and diverse cultures around the world, specifically Pakistan. Moreover,
Khaadi has to portray their image as a global brand so that the people can relate and connect
with it. Usually, the social implications such as protest against inhumane working conditions
by the civil society against khaadi not only dampens its brand image but as people especially
the working class are getting more aware of the basic labour rights along with trade union
gaining greater power, they should have promptly responded to their labour needs before the
protest thus creating a negative goodwill for khaadi, eventually resulting in lost sales and
market share.

TECHNOLOGICAL:
Although it is one of the largest fashions and clothing brands in Pakistan, Khaadi has not
utilized automation in its manufacturing operations as of yet. Large costs of initial investment
and the availability of cheap labor are some of the major factors that can prevent such major
players in the fashion industry from introducing mechanization in their garment manufacturing
factories. Keeping up with the latest trends and technological innovations may prove to be more
efficient for khaadi. The brand can also avoid such public relations disasters by employing
actual automatons without humanity needs as it would lead to a reduction in the labor force.
Working in a factory with less-than-ideal conditions for humans ensured that the workers will
suffer from mental and physical problems which eventually also took place. Technological
advancements in the manufacturing processes have eliminated this problem and khaadi could
have been better off by adopting such production mechanisms.

LEGAL:
These factors though seem to be of little or no importance compared to other factors that can
affect khaadi, but indeed they are integral to profit and trade generation as these factors affect
agri-businesses much more directly. One of the prominent issue that constituted the protest
against khaadi was environmental concerns such as hazardous and inhumane conditions
provided to the workers by khaadi. The most important accusations were providing unhygienic
conditions such as dirty washrooms, regulated washroom break, not providing clean waters to
drink thus violating the environmental safety as this could result in increased diseases, health
concerns that could be contagious to environment. Thus, khaadi lose a potential competitive
advantage of promoting corporate social responsibility (CSR), while the competitors
capitalized by being more environmentally friendly.

CONCLUSION:
The allegations against Khaadi’s inhumane working conditions and violation of worker’s rights
gathered many people and several protest demonstrations were held in Karachi and Lahore.
Khaadi tried to resolve this issue by calling it a “malicious and libelous content” and called it
a conspiracy against the company. This statement of khaadi further ignited the worker unions
(NTUF), which straight away rejected khaadi’s statement. As a result of which, khaadi and
NTUF signed an agreement in which NTUF had been successful in winning significant
concessions from khaadi on each of their demands and khaadi agreed to improve the
implementation of labor laws as its production unit.

Khaadi’s first press release proved to back fire and it further ignited the issue and the laborers,
as a result of which khaadi had to negotiate with the workers in order to resolve their issue and
regain their brand name and prestige which they were losing as a result of this crisis. It would
have been much better if khaadi’s management would have directly negotiated with the
employees rather than disregarding the allegations and calling it as a conspiracy against their
company.

1.7: CHAPTER SUMMARY:

In 1999, the 1st store was launched in Zamzama Karachi. Within Two years of its establishment,
it grew to multi-stores and launched a diverse variety of products. Until 2017, ASA, a leading
architecture company, worked as the interior decorator for khaadi stores in the United
Kingdom, United Arab Emirates, and Pakistan. Nasir Mansoor, a known figure at labor rights
forums and the deputy-general secretary of PNFTU (Pakistan National Federation of Trade
Union), dismissed a defensive claim made by khaadi Headquarters in response to allegations
by khaadi factory employees. According to allegations, the garment company had violated
many of the worker’s rights, ranging from falling to provide workers with official written
recruitment letters. To refuse to issue mandatory Social Security Institution (SSI) deposits,
risking employee job stability and well-being. By 2002, it was manufacturing female’s wear,
and by 2008, it had grown into female’s luxury wear with the launch of khaadi Khaas. Khaadi
transformed into a huge retail brand in 2012, when it planned to grow with the client and launch
vibrant lawn prints. It launched furniture, bags, bed sheets. Shoes, and accessories, quickly
becoming an entire lifestyle brand. The brand strikes a balance between tradition and
modernity. Modernity is expressed in the uniqueness and wide variety of patterns and designs.
It gives women the confidence to share a new aspect of their personality via their fashion
choices allowing them to select a style that represents their individuality.
The organization started growing its essence, first inside Karachi, at that point on to Lahore
and Islamabad, trailed by eight different urban communities across Pakistan. By 2010,
Khaadi felt certain enough to make its initial introduction to global retail, setting up in Dubai,
followed rapidly by a store in Abu Dhabi. In 2013, Khaadi started opening stores in the UK.
Khaadi at present has an aggregate of 54 stores, of which 42 are spread across metropolitan
Pakistan, eight stores in the United Arab Emirates, and four in the United Kingdom. While
the organization doesn't distribute its financials, sources acquainted with its financials who
addressed Profit on the state of secrecy expressed that it had incomes of near Rs16 billion in
the monetary year 2016, of which Rs14 billion or so was in Pakistan and another Rs2 billion
was from its unfamiliar areas. That number makes it the biggest style brand in Pakistan,
having overwhelmed the fare arranged Gul Ahmed Textile Mills' homegrown image, Ideas.
However even as it puts resources into the physical and innovation framework to sell its
items, Khadi’s administration stays perceptive of the way that it is above all else a design
organization, and henceforth dealing with its ability pipeline is basic. It helps that Shamoon
and Saira have remained effectively included at IVS, and have developed associations with
the staff at IVS – presently broadly perceived as one of the main two craftsmanship and
configuration schools in the country. Staff at the organization assist the couple with
distinguishing the most encouraging understudies before any of their rivals have gotten an
opportunity to see their work, giving Khaadi an inside edge at gaining admittance to the
absolute most generally sought-after ability in the country.
Khaadi is basically a Pakistani fashion and lifestyle brand founded in December 1998. It
operates 52 stores in 17 cities across Pakistan, 22 stores across UK and various stores all over
the world including flagship largest store out of Pakistan in Midriff City Center in
Dubai. Khaadi is a private company which is own by Shamoon Sultan (Founder or
CEO). He is a Pakistani textile designer, textile businessmen and founder of khaadi, an
international retailing fashion house which produces “hand woven” clothing material for
men, women and children as well as home furnishings clothing line.

 In 1998 started by Shamoon sultan with offering customers Kurtas and loose fabric
made from hand woven fabric.
 Core ideology hand woven fabric with blend of both eastern and western touch.
 Multinational Pakistani clothing fashion brand.
 In house dyeing and stitching units and design studio.
 Awards and Nomination earned.
 Biggest selling shop ever in Pakistan at DOLMEN MALL CLIFTON, Karachi with
total of 22000 square feet.
CHAPTER 2: NATURE OF THE PRODUCTS AND SERVICES

2.1 PRODCUT LIFE CYCLE

The product life cycle consists of usually 4 to 5 stages i.e.,

 Product development
 Introduction
 Growth
 Maturity
 Decline

These are all common in terms of any product that is consumed, as everything has a finite
life just like we do.

So, in the case of KHAADI the criteria are same. Each stage has its unique set of criteria and
some set of rules that are pre-defined for that stage respectively.
All the stages are explained below:

Introduction:
Khaadi is a Private organization. This organization is from Pakistan. The word khaadi implies
handwoven. The organizer of Khaadi is Shamoon Sultan. Shamoon Sultan open the brand
Khaadi on 1998 for clients in Karachi. It is an apparel brand which offers handcrafted kurtas,
ladies materials and so on when khaadi open his image the climate of the market is smoky,
implies numerous brands presented in the dress business. So Shamoon king fundamental
thought is to get a handle all in all market in couple of years. The thought is to get
extraordinary so they arranged hand woven materials in light of the fact that individuals live
in Pakistan resemble generally the customary wears that are carefully assembled. So they
began searching for carefully assembled proficient. They got these experts from the
retrogressive regions and begin making garments. They made sewed and unstitched garments
that are produced using unadulterated texture. At that point they increment the market into
people's wear where they presented PRET that are those garments which are prepared to
wear, the likewise presented sewed and un sewed for both people just as for children. They
grow their business further and presented new styles for garments like khaas which are
restricted release pieces , likewise for youngsters that age are 2 to 12 a long time old. They
likewise presented extras for the two people just as youngsters. They offer adornments stoles
sacks and shoes. They likewise presented hand crafted apparatuses, for example, furniture,
bedding things, and furthermore some washroom things. After that they are notable in
Pakistan. So they chose to extend their market at global level. So in 2010 they dispatched
their image in Dubai. After that they dispatched an online store for online clients. The on the
web store is dispatched in 2014. it additionally anticipate dispatched these online stores from
outside Pakistan. In light of that extend in the market they produce more income and benefit.
After this development of business in a decent way. The khaadi more like in Pakistan about
his unique khaas kurta that are high quality.

Growth:

The khaadi is the extraordinary compared to other brand in Pakistan material industry. The
proprietor Shamoon ruler is the solitary proprietor of the organization. The Shamoon ruler
began the business in 1998 the thought was created and he thought we need to begin an
exceptional business, where we have the two advantages. We produce the benefit just as
consumer loyalty. So they chose to begin an outlet of garments in Karachi, since he live in
Karachi, which is notable about the ventures 7what's more, one of the busiest market in
Pakistan. So the beginning their business from the Karachi. The beginning their business with
short capital and make sewed hand-distraught garments for men. The main cost of their suit is
1000 and the dispatched an outlet in Karachi close to Tariq street. The check the reaction of
the client, the client were not appearance distinct fascination for the item. At that point they
chose to add new plan in men kurta and nature of the item is likewise increment. In light of
that their deals are developing and increment their name on the lookout. In this manner it
increment their image esteem furthermore, being well known in Karachi. At that point khaadi
extend business and start outlet in different spaces of Pakistan like Lahore Islamabad Multan
Faisalabad and Peshawar and so on At that point khaadi grow their market further into
worldwide level in December 2014.

Items:

 Special Collection for Women wear

 Unstitched garments for both and Women

 Stitched Cloths

 Bottoms

 Khaadi Khaas

 Cloths for youngsters

 Footwear

 Perfumes

 Sunglasses

 Dupattas

 Tank tops

 Warm Shawls
 Fancy Handbags

 Fancy Jewelry

 Colorful Scarves

 Notebooks

 Bed sheets

 Cushion covers (Digital printed, Embroidery)

 Other Accessories

Extraordinary Collection for Women wear:

The khaadi classification of the lady’s wear garments are following

Kurtas, Sweaters, Stitched, unstitched, pret and khaas. In the sewed of ladies garments of
khaadi here are extravagance, winter assortment, summer assortment, mid-summer
assortment, and furthermore a exemplary adaptation of ladies garments of khaadi .

Stitched Cloths

Khaadi had the name Pret for stitched materials. They have Basic Printed Kurta which are the
design of Pakistan’s a portion of the biggest fashioners. Some of them have blossoms on it.
Some of them have imaginative plans on it. These kurtas are more affordable than different
kurtas, 'Weaved Kurta' have extremely rich plan of with a delightful embroidery on it. These
kurtas are a tad costly beginning from eleven thousand,' Kurta with Dupatta' has additionally
an exceptionally exquisite plan on it, these kurta with Dupatta is uniquely plan for some
senior ladies over the age of 35 a long time, 'Kurta with Pants' is a plan of craftsmanship on
it. Such a kind of workmanship which is plan by a few greatest creators of Pakistan.

Base

Bottoms are Shalwar, palazzo, trousers, leggings and so on Some of them have print and
some of them have painting on it and some of them have weaving on it. Some of them have
delightful design of blossoms on it. They have delightful plan of girl on them they are not all
that costly. Generally they are under thousand rupees.

Khaadi Khaas

Khadi khaas is the top model fabrics of Khaadi brand. They are extremely expensive and
furthermore very excellent plan of suits. They are over eleven thousand rupee in cost. They
suffer a heart attack wonderful sharp tones on them. Their embroidery is the top plan on the
off chance that we contrast them with other brands, nobody beats Khaadi khaas plan. The
fabric utilized in Khaadi Khaas is are the top quality materials. These materials has
exceptional sparkle in them. The khaas in khaadi has some conventional suits and 9 some are
easygoing and some are semi-formal. The costs for both are likewise extraordinary. The
value start from 2000 and goes on 3000 rupees.

Uncommon Footwear

Khaadi one of remarkable footwear for ladies. It incorporates all kind of shoes, for example,
embroided recuperates, boat, sleepers, embellished dark mends, extravagant wear shoes. The
cost of these shoes are start from 1500. The primary popular shoes of khaadi are its level
shoes. Every one of the shoes have remarkable plan. The planner invested a great deal of
energy in its plan. Since in market there are many brand who can sold these sort of shoes, for
example, metro shoes, stylo, ecs and so forth All these kind of brands have as it were quality
distinction between khaadi. That is the fundamental explanation the khaadi is the most well
known brand in Pakistan.

Ladies Perfumes
Khaadi presented aromas for ladies in Hyderabad and Karachi. The stores in the Hyderabad
what's more, Karachi sold scents items later on khaadi will presented more fragrances in the
industry so that will be opportunity for their client to get scents item, just as other items under
the single rooftop.

Garments for youngster’s wear

Khaadi additionally presented garments for youngsters. Since kids have additionally some
great market income. So khaadi presented kurta pajama, confined shirts, midriff coat for
youngsters, whose age is 10 to 14 years of age. Khaadi additionally presented weaving kurta
and cover. Client more like weaving kurta. In kurta the cost are start from 2400. Also, the
cost of cover are 2000. So which is reasonable. The rival in the children segment is Junaid
Jamshed which is additionally sold same sort of items. The have same sort of costs and same
quality that is the reason these both are more cutthroat. Children items for young ladies

Khaadi presented kurta, pajama, jeans, and formal suits for the little young ladies. Khaadi
likewise offer shirts, extravagant dresses, leggings, pants, denim. A few items are for ethnic
young ladies who lives inside Pakistan. Furthermore, brand likewise presented western young
lady items these items are extravagant dresses, leggings, pants, denim. The western ethnic
young ladies items are much costly than ethnic young ladies. Be that as it may the quality
they give are something similar

Home Accessories

In home extras Khaadi has a lovely style bed sheets, some of them are printed and a few of
them are weaving. These bed sheet are in various sizes for full twofold bed and furthermore
too concerning single bed size. Khaadi likewise offers cousins fronts of various social plans
they too accompanies printed configuration style just as weaving plan.

Warm wraps

Khaadi likewise offers some delightful, exquisite plan warm cloaks. These cloaks have social
plan and they comes in printed plan and just as weaving plan. Khaadi gives exceptionally
high assurance on quality. The nature of cloaks is very well the individual who is wearing
that cloak don't feel chilly climate. These cloaks are delicate and are comprised of extremely
excellent to fulfill the costumer's requirements and needs.
Extravagant Hand sacks

Khaadi has verity of good quality extravagant and easygoing satchels. They likewise gives
offers purses for youthful school going, school going and furthermore college going young
ladies. Khaadi likewise offers extravagant totes for party use. They likewise gives totes for
bridals on their wedding use. The hand packs for young people are in multicolor plan with
blossoms plan weaving on them which looks awesome. They have a few stones on them and
furthermore they are in such countless splendid shadings.

Extravagant Jewelry

Khaadi offers an immense assortment of adornments. They focus on all period of client like
school going young ladies, school going young ladies, college going young ladies, develop
women, hitched ladies and mature age ladies. These plans of adornments are plan by high
architects of Pakistan.

Adornments
In adornments Khaadi offers minuscule frill of ladies in every day use. In frill they

have hair trimmers, hairs groups for ladies to tie their hairs. These hair trimmers and hair
groups are in various shadings. They are made on three dimensional stage by huge specialists
that the blossoms on trimmers looks genuine. Khaadi additionally gives journals for
composing reason. These note books have a multi conceal cover with various social plans.
Some note pads got ricksha plan some of have brilliant Minar e Pakistan on it with an artiste
plan on them.

Maturity

The brand Khaadi targets the vast majority of the working class family people and a portion
of the exclusive class moreover. Generally the brand khaadi is focusing the country over in
our nation Pakistan. The vast majority of the brand outlets are in where each sort of
individual can without much of a stretch methodology and that is the reason it is extremely
famous in each sort of family particularly working class families and a portion of the tip top
class families. The brand khaadi is focusing on the fundamental business sectors to open their
outlets so that individuals can undoubtedly move into their outlets to purchase their #1
products. For the most part the power source of the brand khaadi are in extravagant and ideal
places and it reflects that the brand khaadi do think often about their costumers, shoppers and
just as buyers. The market is truly reasonable for khaadi, in light of the fact that when khaadi
start their business the vast majority of individuals where connected with to have great
quality items. The primary accomplishment behind the khaadi brand is the market area.
Khaadi for the most part draw in the general individuals in Pakistan. They zeroed in on most
of individuals who are more brand cognizant. So the offer these profoundly quality items and
have exceptionally costly. Generally their primary benefit come from that think, they
assemble their name in the market due to their great quality items and their system.

Competitors
In this world at whatever point there is a major business goes on that business faces a ton of
messengers in the type of contender who when to pulverize that business and needs to turn
into the main organization. Same as it is Khaadi additionally have numerous contenders who
need to smash khaadi and they need to be number one yet being so dynamic on style and
playing out the best yield result on dressing wear. Not a solitary organization could beat
Khaadi in design industry. Probably the greatest contenders of Khaadi are as follow

 Sana Safinaz

 Junaid Jasmshaid

 Satrangi

 Maria b

 Ideas by Gull Ahmed Etc.

These four brands are the greatest contenders of Khaadi yet they always lost on their thought.
A few of the brands attempted to duplicate Khaadi thought yet Khaadi is prevalent than every
one of them. Nobody drew close 12 to Khaadi's performance. The contenders of the brand
khaadi are making comparable items and additionally giving same garments however
shockingly the nature of khaadi brand is magnificent and individuals or costumers likewise
concede this thing that the brand khaadi is extremely exceptional in its own particular
manner.

Decline

The significant central questions of khaadi brand is that different brands took their printing
and planning, moreover some nearby organizations duplicates their image styles, marking
and planning and most exceedingly awful thing is that these nearby and phony brands sell
these sort of unpleasant material garments in very is am are modest cost as contrast with the
first item which is great in quality and material. These phony brand items are so awful in
quality and when we wash this stuff just a single time, its tone what's more, image planning
disappears rapidly. This is the most noticeably terrible issue ever the genuine brand khaadi is
confronting without fail Some other significant issues that khaadi and some other nearby
brand of our country Pakistan faces is that the assets in our nation are extremely less as
contrast with some other created country like US of America, United Kingdom and Canada
and so forth The brand Khaadi faces a few issues like in printing, khaadi meets energy
emergency and because of these energy emergency the marking of the brand khaadi impacts
and because of this impact Khaadi make less marked garments including kurta pajama, and
numerous other specific products.in Pakistan there are sure issues lies that has an unfriendly
impact on the business. Since Pakistan has assorted economy, Pakistan has parcel of crap
forthcoming their imports are high and fares are low. So Pakistan face monetary emergency.
in that circumstance the money managers have part of issue looked during that period.
Pakistan cash esteem likewise goes down step by step. So the nearby brands like khaadi feel
truly awkward in that specific sort of circumstance. The get less advantages, since they don't
have a lot of chances to develop their benefit, income, and less their costs. For the most part
in that circumstance no interests in the business. So the brand feel such a lot of pressure. The
Pakistan stock trade bites the dust for quite a while, less individuals intrigued to put resources
into Pakistan. The other significant issue is the public authority condition. Pakistan has not
the steady government. More often than not the finance managers have strained around there,
and some time the face misfortune. The explanation for that is Pakistan for the most part
governments change in under 3 or not exactly even some time 2 years. Each new government
has its own approaches which are at some point for the business and at some point, not
positive. So this additionally have a terrible impact on the financial backers and the investors
of the business. The other significant explanation is the costly items. Khaadi sold numerous
items that are not reasonable by the low level or center level individuals. A few costs are the
compensation of the everyday person that lives in Pakistan. So khaadi need to have more
affordable items with the goal that the catch more client s into their business. The other
serious issue is the topographical issue, khaadi grows its image 15 outlet more in the
significant areas of Pakistan. It needs to zero in on the town regions with the goal that they
have more clients. The other issue is the plan issue. The contender of khaadi likewise offer
same kind of plan that khaadi offered to its clients. So, it should be remarkable, more
affordable and have solid fascination toward the client of khaadi. For the most part in this
kind of garments industry brand configuration is generally significant, there some plan that
different brands duplicate them and dispatched before the khaadi dispatched, so this should
be private, or need the security

CHAPTER 3: SUPPLY CHAIN MANAGEMENT

3.1. INTRODUCTION WITH COMPLETE SUPPLY CHAIN PICTURE:
The first store was opened in Karachi’s Zamzama in 1999. Khaadi then expands to multi-stores
within two years of its inception and introduced wide range of products lines. Leading
architecture firm ASA served as the interior designer for khaadi stores at Pakistan, UK and
UAE until 2017. It currently operates 46 stores, in 17 cities across Pakistan and 17 stores across
UK and the GCC, offering a wide range of products from apparel for women, men and kids to
home-textiles, in both printed and hand-woven fabrics. In 2010, khaadi expanded
internationally by opening stores in the UAE first in Dubai and later in Abu Dhabi. In 2013
store launches were planned for the UK. In 2014, Khaadi opened a 1,630 sq ft store in Bull
ring, Birmingham at Bull Ring shopping center and other locations include westfield London
and westfield Strafford, City, Birmingham, Uk. Company also opened a store in high cross
Leicester, UK in September 2015. A 22000-square-feet of khaadi store was opened in
September 2015 at Karachi’s Dolmen mall Clifton. Khaadi have built more than 40 stores in
Pakistan as well as stores in United Arab Emirates and United Kingdom.

In 2017, Nasir Mansoor, a respected figure in labour rights circles and the deputy general
secretary at the National Trade Union Federation in Pakistan, rejected a defensive statement
issued by khaadi HQ in response to accusations by khaadi factory workers that the clothing
company had abused a multitude of workers’ rights ranging from not providing workers
Official written appointment letters to not issuing mandatory SSI ( Social Security Institution)
deposits, thereby compromising employee job security and well-being.
3.2. DECISION PHASE IN SUPPLY CHAIN AS PER KHAADI:
Khaadi is Pakistan’s Premier manufacturer and retailer of fashion clothing with 45 stores in
Pakistan and 15 international locations. The high-profile brand frequently runs highly
successful promotional campaigns, including 40-hour nonstop sales, with footfall exceeding
200,000 visitors on a typical weekend at their largest retail locations.
Khaadi had recently begun a major phase of expansion in both domestic and international
markets, but the platform they were using prevented them from achieving a clear, consolidated
view of their operations across regions and adversely affected active cross-channel decision
making.
Systems implemented Microsoft Dynamics 365 for finance and Operations as a single, unified
solution for supply chain, finance, and retail. The solution supported store operations 16 hours
a day, 7 days a week for both domestic and international markets. It facilitated on-time monthly
closing and helped khaadi meet KPIs for their IT department and other business groups. The
deployed solution was integrated with khaadi’s ware house management system, eCommerce
platform, and footfall and traffic counters to facilitate centralized management of all customers
and inventory information. The solution allowed effective decision making through its intuitive
and in-depth business intelligence dashboards. It sent transactions directly to the cloud and
freed khaadi’s ERP system from endless platform updates and other complexities.

Local Retail servers were now used as a failover in the event of a disruption of internet service.
This hybrid system gives all khaadi retail locations excellent uptime. Systems limited proposed
terminals with both offline store connected and online modes to support heavy sales traffic. All
phases of the 45-stores implementation were completed in under 6 months, including analysis,
design, development, POC, CRP, stress, testing, UAT, pilot testing, and rollout. Stress testing
revealed that the new POS system could handle a heavy workload in a 12-hour period. The
implementation won systems the accolade of Microsoft Pakistan Partner of the year 2018.
3.3. PLANNING SUPPLY AND DEMAND IN A SUPPLY CHAIN:
Demand Management determines requirement quantities and delivery dates for finished
products assemblies. To create a demand program, Demand Management uses Planned
Independent Requirements and Customer Requirements. Planned Independent Requirements
(PIRs) are used to determine the quantities of a material required in a particular time period.
The PIRs could be both manually maintained or determined using Sales and Operational
Planning. Customer Requirements represents the Sales Orders in the system. Once a sales order
arrives, the PIRs are reduced.

Supply Chain Strategy (khaadi)

In this phase, decision is taken by the management mostly. The decision to be made considers
the sections like long term prediction and involves price of goods that are very expensive if it
goes wrong. It is very important to study the market conditions at this stage.
These decisions consider the prevailing and future conditions of the market. They comprise
the structural layout of supply chain. After the layout is prepared, the tasks and duties of each
is laid out.
All the strategic decisions are taken by the higher authority or the senior management. These
decisions include deciding manufacturing the material, factory location, which should be easy
for transporters to load material and to dispatch at their mentioned location, location of
warehouses for storage of completed product or goods and many more.

Supply Chain Planning (khaadi)

Supply chain planning should be done according to the demand and supply view. In order to
understand customers’ demands, a market research should be done. The second thing to
consider is awareness and updated information about the competitors and strategies used by
them to satisfy their customer demands and requirements. As we know, different markets have
different demands and should be dealt with a different approach.
This phase includes it all, starting from predicting the market demand to which market will be
provided the finished goods to which plant is planned in this stage. All the participants or
employees involved with the company should make efforts to make the entire process as
flexible as they can. A supply chain design phase is considered successful if it performs well
in short-term planning.
Supply Chain Operations (khaadi)
The third and last decision phase consists of the various functional decisions that are to be
made instantly within minutes, hours or days. The objective behind this decisional phase is
minimizing uncertainty and performance optimization. Starting from handling the customer
order to supplying the customer with that product, everything is included in this phase.
For example, imagine a customer demanding an item manufactured by your company.
Initially, the marketing department is responsible for taking the order and forwarding it to
production department and inventory department. The production department then responds
to the customer demand by sending the demanded item to the warehouse through a proper
medium and the distributor sends it to the customer within a time frame. All the departments
engaged in this process need to work with an aim of improving the performance and
minimizing uncertainty.

In Khaadi, Make to Stock planning strategy is followed. Make-to-stock strategy is used when
stocks are produced independently without a direct reference to a sales order. The requirements
from the sales orders are met from those stocks. For this strategy production would be based
on the sales forecast. This means that make-to-stock strategies can support a very close
customer-vendor relationship because the objective is to provide customers with products from
stocks as quickly as possible. At Khaadi, Strategy Type “Planning with final assembly” is also
used for Make to Stock production. In this planning strategy, procurement and production of
all components and assemblies is triggered by the forecast. Procurement Proposal is generated
for the semi-finished materials, raw and packing materials based on the Forecast. Khaadi also
performs the embroidery on Lawn fabric for UNI-BRANDS. So separate orders will be created
with reference to embroidery of lawn prints style material in Khaadi Manufacturing
Plant/Plants and their independent demand is entered in SAP.

The planned independent requirements provide the information that which finished materials
are to be produced, when these should be produced and in what quantities. Planning of Lawn
fabric will be performed in system, planned requirements will be entered in the system style
wise for Unibrands as well.

3.4. PRICNG AND REVENUE MANAGEMENT IN SUPPLY CHAIN:

Involved in every step of Khaadi’s growth, Finance fuels our commercial success and
sustainability through the application of advanced methods in all areas ranging from accounting
and tax handling to budgeting and financial planning.
Each role in this department comes with great responsibility and is expected to engage with
cross-functional partners to deal with different situations ranging from something as small as
an accounting issue or as challenging as a foreign trade and tax matter. Members of this team
work contribute in the innovation of business processes to maximize efficiency with a goal to
ensure that Khaadi is financially equipped for international growth.
E-commerce is not just one of Khaadi’s key growth area, it’s one of our most exciting
opportunities. We want to be available to our consumers whenever and wherever they need us,
giving them multiple options to shop with us and stay updated with all that’s new at Khaadi.
From website and content developers to content writers, our online team works to develop new
features for online platforms and ensure a smooth browsing and shopping experience for our
online customers. With a keen eye for the latest trends being followed by our growing consumer
base, the E-commerce team makes fashion accessible to each one of them over the world.
Overview
Controlling (CO) offers information to decision makers for planning, measuring and
monitoring enterprise's operations and performance. It represents the internal accounting view
of an organization. All data relevant to cost and revenue flows from various sources such as
Financial Accounting (FI), Materials Management (MM), Production Planning (PP), Sales and
Distribution (SD), Human Capital Management (HCM) and Plant Maintenance (PM) modules.
The cost and revenue flows will update FI and simultaneously create equivalent postings into
CO. As part of this process, the system assigns the costs and revenues to different CO account
assignment objects like cost centers, orders, or profitability segments. The relevant accounts in
FI are managed in CO as cost elements or revenue elements.

3.5. DEMAND FORECASTING IN SUPPLY CHAIN:

The next step is to forecast HR needs for the future based on the strategic goals of the
organization. Realistic forecasting of human resources involves estimating both demand
Strategic Human Resource Planning 6 and supply. At Khaadi the strategic HR planning process
is based on two different types of hiring that are defined below:
Budgeted Hiring:
In budgeting hiring the company forecasts HR demand according to company’s strategic plans
and their defined organizational objectives. The HR department receives a budget that includes
costs such as hiring and recruiting, compensation and salaries and training and development.
For instance, if the company decides to open 5 new stores in Karachi then the demand for HR
will be determined accordingly, which should be within the provided budget of the company.
On average 4 to 5 employees are required for each store. However, the number may also vary
depending on the area, location and size of the store. Furthermore, HR requirements at the
company do not only include hiring at the store, but also other employees for back-end
operations and support employees. Thus, the HR conducts meetings with all the departments
to ascertain the requirements.
Non-Budgeted Hiring:
In contrast to budgeting hiring, Khaadi also conducts non-budgeted hiring. These demand for
employees include that are not expected as per the plans of the company. Moreover, this
becomes a part of the budgeted hiring of next year to ensure that it is aligned with the strategic
plans of the company.
Demand Management
Process Definition
Demand Management determines requirement quantities and delivery dates for finished
products assemblies. To create a demand program, Demand Management uses Planned
Independent Requirements and Customer Requirements. Planned Independent Requirements
(PIRs) are used to determine the quantities of a material required in a particular time period.
The PIRs could be both manually maintained or determined using Sales and Operational
Planning. Customer Requirements represents the Sales Orders in the system. Once a sales order
arrives, the PIRs are reduced.

Planning Strategy
In Khaadi, Make to Stock planning strategy is followed. Make-to-stock strategy is used when
stocks are produced independently without a direct reference to a sales order. The requirements
from the sales orders are met from those stocks. For this strategy production would be based
on the sales forecast. This means that make-to-stock strategies can support a very close
customer-vendor relationship because the objective is to provide customers with products from
stocks as quickly as possible.
At Khaadi, Strategy Type “Planning with final assembly” is also used for Make to Stock
production. In this planning strategy, procurement and production of all components and
assemblies is triggered by the forecast. Procurement Proposal is generated for the semi-finished
materials, raw and packing materials based on the Forecast. Khaadi also performs the
embroidery on Lawn fabric for UNI-BRANDS. So separate orders will be created with
reference to embroidery of lawn prints style material in Khaadi Manufacturing Plant/Plants and
their independent demand is entered in SAP.

Planned Independent Requirement (PIR)

The planned independent requirements provide the information that which finished materials
are to be produced, when these should be produced and in what quantities. Planning of Lawn
fabric will be performed in system, planned requirements will be entered in the system style
wise for Uni-Brands as well.
PP-DM-7.2.3 Planned Independent Requirements
Version: Draft

Start
Planning Manager

Marketing
Marketing
Marketing
Forecast
Forecast
Forecast

Upload RSF to
Market Forecast Copy to Active
Version Version
Demand Management

Trasfer to Demand
Management

Planned Independent
Requirements

3.6. CO-ORDINATION IN A SUPPLY CHAIN:

The Planning team spearheads the efforts to enhance profitability and sales through thorough
and rigorous planning and an in-depth analysis of retail performance and inventory
management. As a member of the planning team, you will have significant coordination with
multiple departments including merchandising, supply chain and retail.
In other words, the Planning department is a land full of opportunities – with an exciting hunt
for data points and insights that can be turned into actions for constantly improve performance.

CHAPTER 4: DISCUSSION AND CONCLUSION

The allegations against Khaadi’s inhumane working conditions and violation of

worker’s rights gathered many people and several protest demonstrations were held
in Karachi and Lahore. Khaadi tried to resolve this issue by calling it a “malicious
and libelous content” and called it a conspiracy against the company. This statement
of Khaadi further ignited the worker unions (NTUF), which straight away rejected
Khaadi’s statement. As a result of which, Khaadi and NTUF signed an agreement in
which NTUF had been successful in winning significant concessions from Khaadi
on each of their demands and Khaadi agreed to improve the implementation of labor
laws at its production unit. Khaadi’s first press release proved to back fire and it
further ignited the issue and the laborers, as a result of which Khaadi had to
negotiate with the workers in order to resolve their issue and regain their brand
name and prestige which they were losing as a result of this crisis. It would have
been much better if Khaadi’s management would have directly negotiated with the
employees rather than disregarding the allegations and calling it as a conspiracy
against their company.

4.1. CONCLUION

The ERP system which has been mostly adopted in the KHAADI is SAP. All of the
KHAADI have adopted different modules of SAP, as par their requirements. The
need of ERP is very important for the efficient management of data. Data is being
efficiently managed and controlled with the help of ERP. Efficient data management
has resulted in managing the operations and business processes. Plus efficient data
management has helped in flexibility, easy reporting and quick identification of the
problems.

ERP has enabled the KHAADI to integrate their global business operations. Their
global business operations are now managed from only one place. They have
managed to help in identification of the global problems inefficient manner and
quickly identification of the issues. Siemens has managed to gain the speed and
agility in the operations. Plus optimization is gained in the corporate resources and
assets. Lastly, it is become enabled to get high level of the services and enhanced
satisfaction of the customers.

The reporting system of the SAP has helped KHAADI in the numbers of ways. It
controls the operations in efficient manner, management and reporting in effective
manner, scheduling of the duties and the work for the rosters for the fluctuation,
staffing the employees for managing workloads, issuance of the receipt returns and
carrying out the performance reconciliation.
The record keeping system of the KHAADI has also improved due to the enterprise
resource planning. They have become more accurate in their management of
records. Reports can be easily generated from the system. In addition, flexible, fast
and integrated business processes have been obtained with the help of SAP
KHAADI has managed to get efficient data management. Efficiency has been
reported in operations and processes of business with oracle. Now marketing and
financial activities have become more effective. Financial controls, inventory
management and logistic operations are quite accurate due to oracle ERP. The
KHAADI Data has become more efficient in terms of accuracy, and flexibility.
Some of the major modules of SAP includes: Accounts Receivables, Purchases
Ordering Process, Accounts Payable, Inventory Management, Payments & Receipts
Process, Petty Cash System, Reconciliations, Sales Ordering Process, Claims
against schemes, Pricing with schemes, Calculation of Revenue / Detention /
Demurrage, Goods Return Procedures, Variant Analyses, Preparing Monthly Profit
& Loss Accounts, HRIS, Production and planning, Inventory, Cost and Budgeting,
Sales, Finance and Marketing, SAP logistics, SAP Exports, SAP Imports, SAP-FI
Module, Store Scheduling module, TimeTrax Attendance Management Module,
integrated modules, financial modules.

ERP system is too much important to be implemented in the company. Global

processing is now being possible with the new ERP system implemented in
KHAADI. KHAADI have also managed to have efficient monitoring of the stocks,
controlling of the operations in the efficient manner, management and reporting in
effective manner, scheduling of the duties and the work for the rosters for the
fluctuation, staffing the employees for managing workloads, issuance of the receipt
returns and carrying out the performance reconciliation.

It is being concluded that ERP system has helped KHAADI in many ways. They
have reaped out many benefits from their implemented system. By considering the
benefits they are also seeking improvements in their current system. This has
enabled the customers to have better services and products from the KHAADI.
More technology-oriented products are presented due to advance technological
implementation in the supply chain system.

4.2. BREIF COMPARISON WITH COMPETITORS

Competitors
In this world whenever there is a big business goes on that business faces a lot of
heralds in the form of competitor who when to crush that business and wants to
become the number one company. Same as it is Khaadi also have many competitors
who want to crush khaadi and they want to be number one but being so active on
fashion and performing the best output result on dressing wear. Not a single
company could beat Khaadi in fashion industry. Some of the biggest competitors of
Khaadi are as follow:

 Sana Safinaz
 Junaid Jasmshaid
 Satrangi
 Maria b
 Ideas by Gull Ahmed Etc.
These four brands are the biggest competitors of Khaadi but they never won on their
idea. Some
of the brands tried to copy Khaadi idea but Khaadi is superior than all of them. No
one came near to Khaadi’s performance. The competitors of the brand khaadi are
making similar products and also providing same clothes but unfortunately the
quality of khaadi brand is unbeatable and people or costumers also admit this thing
that the brand khaadi is very unique in its own way.

Sana Safinaz as a rival of Khaadi

Sana Safinaz being as a rival of Khaadi has so much common but Sana Safinaz
cannot beat Khaadi. Sana Safinaz are making similar products like Khaadi makes
but quality of Khaadi is very good and that is why people or costumer love to buy
Khaadi products. Khaadi knows the psyche of women that what they want and what
they need and they give the best on people demand.

Junaid Jasmshaid as a rival of Khaadi

Junaid Jasmshaid being as a rival of Khaadi has so much common but Junaid
Jasmshaid cannot beat Khaadi. Junaid Jasmshaid are making similar products like
Khaadi makes but quality of Khaadi is very good and that is why people or costumer
love to buy Khaadi products Khaadi knows the psyche of women that what they
want and what they need and they give the best on people demand. Junaid Jamshed
is a strong competitor of khaadi. Because they offer a same product in women wear
and shoes. Their style, handmade woven, their design is mostly similar. The only
difference between these two brand is; Junaid Jamshed offer men kurta that are
made from khaadi and the khaadi offer women kurta, and stitched and unstitched
that are unique from khaadi and one other main different products are their
accessories of home, which are some furniture items as well as bedsheets etc. khaadi
is well known for his beautiful and fancy shoes and glasses , and prêt khaas suits,
that are much more in better quality and have good fame in Pakistan
.
Satrangi as a rival of Khaadi
Satrangi being as a rival of Khaadi has so much common but Satrangi could not beat
Khaadi. Satrangi are making similar products like Khaadi makes but quality of
Khaadi is very good and that is why people or costumer love to buy Khaadi
products. Khaadi knows the psyche of women that what they want and what they
need and they give the best on people demand.

Maria b as a rival of Khaadi

Maria b being as a rival of Khaadi has so much common but Maria b could not beat
Khaadi. Maria b are making similar products like Khaadi makes but quality of
Khaadi is very good and that is why people or costumer love to buy Khaadi
products. Khaadi knows the psyche of women that what they want and what they
need and they give the best on people demand.

Ideas by Gull Ahmed as a rival of Khaadi

Gull Ahmed being as a rival of Khaadi has so much common but Gull Ahmed could
not beat Khaadi. Ideas by Gull Ahmed are making similar products like Khaadi
makes but quality of Khaadi is very good and that is why people or costumer love to
buy Khaadi products. Khaadi knows the psyche of women that what they want and
what they need and they give the best on people demand.

SWOT Analysis
Strengths:
 Experience and understanding of the fashion industry.
 Unique shopping experience with exceptional customer service.
 Great midtown location.
 Large and growing consumer base.
Weaknesses:
 Unapproved market in some of the outlets.
 While market is large, so this brand have high competition market.
Opportunities:
 Outstanding shopping experience will lead to repeat business.
 Growing online clothing store.
 Establish a Booming Business clothing line.
Threats:
 Cost and effectiveness of marketing of products.
 Design copy by other and sell it on cheaper price.

4.3. LIMITATION AND FUTURE SCOPE OF THE COMPNAY

Key Issues The major key issues of khaadi brand is that other brands stole their
printing and designing, also some local companies copies their brand styles,
branding and designing and worst thing is that these local and fake brands sell these
type of rough material clothes in very is am are cheap price as compare to the
original product which is very very good in quality and material. These fake brand
products are so bad in quality and when we wash this stuff only once, its color and
brand designing fades away very quickly. This is the worst issue ever the real brand
khaadi is facing every time Some other major issues that khaadi and any other local
brand of our country Pakistan faces is that the resources in our country are very less
as compare to any other developed country like United States of America, United
Kingdom and Canada etc. The brand Khaadi faces some issues like in printing,
khaadi meets energy crisis and due to these energy crisis the branding of the brand
khaadi effects and due to this effect Khaadi make less branded clothes including
kurta pajama, and many other particular products.in Pakistan there are certain issues
lies that has an adverse effect on the business. Because Pakistan has diverse
economy, Pakistan has lot of defecate pending their imports are high and exports are
low. So Pakistan face financial crisis. in that situation the businessmen have lot of
issue faced during that period. Pakistan currency value also goes down day by day.
So the local brands like khaadi feel really uncomfortable in that particular type of
situation. The get less benefits, because they do not have much of opportunities to
grow their profit, revenue, and less their expenses. Mostly in that situation no
investments in the business. So the brand feel so much tension. The Pakistan stock
exchange dies day after day, very less people interested to invest in Pakistan. The
other major issue is the government condition. Pakistan has not the stable
government. Most of the time the businessmen have tensed in that situation, and
some time the face loss. The reason behind that is Pakistan mostly governments
change in less than 3 or less than even some time 2 years. Every new government
has its own policies which are sometime in favor of the business and sometime not
favorable. So, this also have a bad impression on the investors and the shareholders
of the business. The other major reason is the expensive products. Khaadi sold many
products that are not affordable by the low level or middle level people. Some prices
are the salary of the common man that lives in Pakistan. So khaadi need to have less
expensive products so that the capture more customer s into their business. The
other major problem is the geographical issue, khaadi expands its brand 15 outlet
more in the major sectors of Pakistan. It has to focus on the village areas so that they
have more customers. The other issue is the design issue. The competitor of khaadi
also offer same type of design that khaadi sold to its customers. So, it needs to be
unique, less expensive and have strong attraction toward the customer of khaadi.
Mostly in this type of clothing industry brand design is most important, there some
design that other brands copy them and launched before the khaadi launched, so this
need to be very private, or need the privacy.
The current information technology system of the brand khaadi is basically the
Business Care Centre and Systems. In this type of information technology systems,
the brands or any other company treats their costumers online and buy using this
type of information system, the brand can take care of their customers. By using this
any brand including the brand khaadi can evaluate their best costumes and after the
the brand khaadi can take care of their best customers. This type of information
system includes all the brand product price taglines, they also add the discount
factor in this information system so that their costumer feels their selves comfortable
while buying or purchasing any of their products.
References:

1. "Khaadi's multinational ambitions-Shamoon Sultan, CEO, Khaadi, on his vision for

the brand and the future of prêt wear in Pakistan". Marylou Andrew. Dawn News. 1
September 2015. Retrieved 28 November 2015.
2. ^ "Khaadi the label". BestoStyle. Retrieved 5 December 2014.
3. ^ "Khaadi Retail Project-Interior design, coordination and top supervision". Arshad
Shahid Abdulla. Retrieved 28 November 2015.
4. ^ "Khaadi comes Home to Lahore". Mehek Saeed. The Express Tribune. 8 June 2015.
Retrieved 28 November 2015.
5. ^ "Khaadi to open six regional stores in 2015". Drapersonaline. Retrieved 28
November2015.
6. https://profit.pakistantoday.com.pk/2017/09/25/pakistans-first-fashion-billionaires/