Aishwarya Gupta | Ishi Shukla | Nayanika Dayal | Saumya Rautela

Supply Chain
Management

Study and Report on Supply Chain Networks of One Export and One Retail
Business Fashion Firm – Value Chain Analysis Approach
 To analyse the supply chain networks of a fashion export

business and a retail fashion firm using value chain analysis.

Objectives
This approach will map each firm's primary and support activities

to evaluate their roles in adding value.

Understanding importance of
Selecting
Supply Chain, Value Chain
companies
Research meaning and other terms

Methodology
Collecting Data
Organising data according to
(Case studies, Internship
understaning
reports, store visit)
 Fast-Paced Industry:
Effective supply chain management (SCM) helps businesses stay

Importance
competitive by responding quickly to market changes.

Global Sourcing and Distribution:

of Supply
SCM ensures smooth coordination between suppliers,
manufacturers, and distributors across different countries,
ensuring timely production and delivery.

Chain in Cost Efficiency:

Efficient supply chains reduce costs by optimising logistics,
minimising inventory holding, and ensuring quicker turnaround

Fashion times.

Customer Expectations:
SCM is the backbone of a fashion business, SCM ensures businesses meet these expectations by streamlining
directly impacting costs, product availability, operations from production to final delivery.
and customer satisfaction.
Sustainability and Ethical Sourcing:
SCM plays a key role in ensuring ethical sourcing, reducing carbon
footprints, and managing supplier compliance with environmental
standards.
 A value chain refers to the series of actions a business undertakes to

Value Chain
create a product or service and deliver it to customers.

Porter’s value chain divides business activities into five primary

activities and four support activities, all of which aim to create value
What Is a Value Chain?
that exceeds the costs involved, ultimately increasing profitability.

Primary Activities

Inbound logistics Operations Outbound logistics Marketing And Sales Services

Procurement Infrastructure
Secondary Activities
Human Resource Management Technological Development

Michael Porter in his 1985 book "Competitive Advantage: Creating and Sustaining Superior Performance."
Value Chain
Purpose of using value chain analysis
in studying supply chains?

The purpose of value chain analysis is to give

the company a clear path to greater profits

Identify Value Creation: By mapping each

firm's supply chain activities, we can pinpoint
where and how value is created for both the
export and retail businesses.

It reveals opportunities for improving value creation,

Value chain analysis helps us understand the
whether through better sourcing, logistics, or customer
strengths and weaknesses in each firm’s
service.
supply chain.
Manufacturing Company

Human Protection business manufactures a range of

specialised clothing and accessories that protect
personnel in Steel, Oil &Gas, Fire-Fighting, Rail & Road
Construction, Healthcare, Defence and Security sectors,
emanating from the harsh operating environments that
their jobs require.

Sources: https://www.arvind-amd.com
Retail Company

Raymonds offers diversified silhouettes and creative

lines of high fashion apparel through their power brands
like — Raymond Ready to Wear (RRTW), Park Avenue
(PA), ColorPlus (CP) and Parx.

Over the last few years, there has been a rapid

expansion – across all channels including 257 Exclusive
Brand Outlets (EBOs), 3,300 Multi Brand Outlets (MBOs)
(through distributor network), and 800 Large Format
Store (LFS) chains and leading online portals.

Sources: https://www.raymond.in/our-company/about-us
Primary
Activities
Inbound Logistics Outbound logistics

Operations Marketing and Sales

Inbound Logistics
Inbound logistic is the critical process of acquiring and moving raw material or finished products
into business. Effective inbound logistic ensures a smooth production process, reduce costs &
improve overall business efficiency. (Michael Porter in his 1985 book "Competitive Advantage:
Creating and Sustaining Superior Performance.")

Inbound Logistic activities :

Raw Material Sourcing

Inventory Management
Warehousing
Transportation
 Arvind Human Protection Raymond

Trims: Hongkong, China, USA, Nominated Indian

Geographical Raymond owns and operates mills in
Suppliers
Sourcing Thane, Mumbai, and Bhilwara (Sangam).
Fabric: Inhouse

Mostly Road or Sea Freight On Nhava sheva port

Transportation mode Tempo and Pickup
In emergency - Air Shipping

Material Type Technical textiles - Inherent and Treated Shirt, Suiting and Yardage of faabric

Through agents and dealers and directly

Flow of Information Through ERP, Mails, Meetings and documents
to the company

Trims store value was 2 to 3 crore .

70 to 75 % is Flame resistant. Warehouse stores only samples for
Warehouse
Fabric store value based capacity 10 to 14 crore franchises to review
10 to 15 to of which is knits and rest is woven

Inventory A 10% inspection rate is applied to fabrics upon

Management arrival.

Information collected from Apparel Internship and through Store visit

Operations
(Michael Porter in his 1985 book "Competitive Advantage: Creating and
Sustaining Superior Performance.")

Activities associated with transforming inputs into

the final product form, such as machining,
packaging, assembly, equipment maintenance,
testing, printing, and facility operations.
 ASPECT EXPORT FIRM (MANUFACTURING) RETAIL FIRM (MERCHANDISING)

Smaller-scale production tailored for consumer demands.

Production Large-scale production for industrial clients and international markets.
Stock adjusted for local customers with a focus on men's apparel
Scale (Average output 2500pcs)
and accessories.

Limited customization; follows strict industrial requirements. High customization for tailored suits and made-to-measure
Customization based on client-specific needs for technical textiles (i.e. options.
Customization
customization done for the chemical finishing depending on the Trend-driven product designs offering personalized clothing
buyers). choices.

Maintains bulk stock for large-scale shipments. Responsive stock management based on customer demands.
Stock
Inventory management focuses on minimizing waste and cost- Frequent restocking based on sales trends and market
Management
efficiency. preferences.

The inward inventory is stored in their respective fabric and trims store.
Post inspection the trims are sorted to their respective sub-store i.e. Regular replenishment of fast-moving items to meet retail demand
Inventory FR and Non FR. (Inventory is stocked on the basis of customer demand and on
The same is done for fabrics as well, here the classification is based going trends).
on knits and woven.

Longer lead times due to the bulk nature of industrial exports (average
Shorter lead times to quickly respond to fashion trends.
Lead Times lead time 60-120 days.).
Fast production cycles for ready-to-wear collections.
Fixed schedules with predetermined delivery timelines.

Stringent quality checks to comply with industrial and international Focus on garment finishing, fabric quality, and customer
standards (not more than 0.5% overall rejection by buyers). satisfaction.
Quality Control
Focus on technical performance and consistency across large Flexibility in quality control to match evolving customer preferences
volumes. and trends.
 Processing customer

Outbound Logistics
orders

Picking and packing

Outbound logistics is the process of storing, transporting, and

delivering goods to end customers. Put simply, it’s all about Shipping and delivering
items to their final
how your business moves finished inventory out of your
destination (typically the
supply chain – and fulfills customers’ orders.
customer)

These include optimising inventory management, order Overseeing efficient

management, packaging procedures, and distribution delivery through various
networks. distribution channels

This part of the supply chain differs for export-focused

fashion businesses and retail-based fashion firms. Returns processing

Key outbound logistics activities

 Arvind Human Protection Raymond

Uses bills of lading, export licenses, and purchase

orders for export compliance.
Internal, external, and final audits ensure regulatory
compliance.

Focuses on order processing, both online and offline.

Store/Inventory
Inventory tracking and shipping documents for courier and
Replenishment
in-store logistics.

Connects with buyers through industry expos or buyers’ Operates via offline and online retail channels.
Export/Distribution portals (e.g., Carhartt). Uses e-commerce for online orders with dedicated
Processes Buyers send stamping requests; final sales/purchase fulfillment centers for efficient order management and
orders are placed following international standards. deliveries.

(Source: Apparel Internship) (Source: Store visit)

 Arvind Human Protection Raymond

Domestic deliveries dispatched from factory

warehouse to buyer's warehouse.
International deliveries typically by sea routes.
Air transport for samples only.

Source: “Impact of change in Export- Import Documentation and Time- Cost saving
and In Arvind Limited”

Works with trusted courier partners (e.g., DHL) for home

deliveries of online orders.
Transportation Modes
Utilizes real-time tracking systems to enhance customer
satisfaction and post-purchase experience.

Implements a 7-point inspection for container security,

Delivery to International including hammer tests and ISO 17712-compliant seals.
-
Clients Manages lead times to avoid customs delays and
ensure timely delivery.

(Source: Apparel Internship) (Source: Store visit)

 Arvind Human Protection Raymond

Offline store replenishment based on real-time demand to

avoid overstocking.
Central warehouses supply premium fabrics and
readymade garments to retail stores across India.

Inventory flows from warehouse to port for exports.

Store/Inventory
Audited stock management ensures compliance and
Replenishment
proper documentation.

(Source: Apparel Internship) (Source: Store visit)

Marketing & Sales
Marketing and Sales refer to the activities a company engages in to make its products or services
available to customers and persuade them to purchase. These activities are crucial for generating
revenue and creating demand for the company’s offerings. (Michael Porter in his 1985 book
"Competitive Advantage: Creating and Sustaining Superior Performance.")
 Arvind Human Protection Raymond

Government
Arvind bids on relevant tenders, securing Seasonal
Portals and Raymond regularly runs seasonal promotions
Tenders
long-term contracts. Promotions
(e.g., festive sales, end-of-season discounts)
(GEM) Arvind participates in GEM tenders. and Sales

Long-term contracts with private companies Loyalty Customers earn bonus points based on their
and government institutions (e.g., 2-3 years Programs shopping value (e.g., 1000 points for Rs. 3000
Long-Term
with Reliance). and Point- purchase)
Contracts
Prices are negotiated annually based on Based Bonus points encourage repeat purchases to
market trends and sourcing costs. Offers use accumulated points.

Shirt and Trouser Bundle: Buy any trouser

Participates in international trade & Expos
Trade Targeted and get 20% off on a shirt, encouraging cross-
At an Africa mining exhibition, Arvind secured
Shows and Discount selling and higher sales.
new business by marketing uniforms to mining
Expos Vouchers High-Value Vouchers
companies.

The company developed a new product

Customer and
specifically for Carhartt.
Partnership -
Relations Special product development is reserved for
long-term and loyal customers.

Information collected from Apparel Internship and through Store visit

Services(After Sales Services)
01 02 03
Customer Support Return Policies Warranty and Repair
Arvind provides dedicated after- Arvind has established clear Services
sales support like Letters of return policies for international Arvind offers warranties or
Credit to international clients. buyers. These policies are in repair services to guarantee
This support includes handling line with global trade norms and product quality. This ensures
customer inquiries, addressing are designed to minimize that overseas clients receive
any product quality concerns, complications, especially for premium service standards,
and resolving issues that may customized orders. While further enhancing the brand's
arise after delivery. Arvind international returns can be reputation for excellence.
maintains open communication costly and logistically complex, Arvind manages repairs or
channels to promptly respond to Arvind ensures that their replacements of defective
and resolve customer queries, guidelines provide clarity and products efficiently to
ensuring high levels of efficiency to manage returns maintain trust and loyalty
satisfaction. with minimal disruptions. with their international client.
Services(After Sales Services)
01 02 03
Returns and Product Availability Product Warranty
Refunds and Order Cancellation
Raymond does not Raymond reserves the right to No explicit product warranty is
explicitly provide detailed refuse or cancel product mentioned, customers are
information about returns orders. If a product becomes provided products “with
and refunds in the terms, unavailable after the order is reasonable skill and care.” In case
but as a standard retail placed, Raymond might notify of any manufacturing defects or
practice, customers can the customer and cancel the quality issues, customers may
likely request a return or order, providing a refund if need to contact Raymond’s
refund for any defective payment has already been customer service to inquire about
or unsatisfactory made. possible warranty claims or
products.. replacements.
Supporting
Activities
Procurement Infrastructure

Human Resource Management Technological Development

 Recruitment:
Supports all departments by hiring the right talent needed for specific

Human
roles. Ensures every part of the value chain has a skilled workforce to
meet business objectives.

Resource
Training:
Develops employee skills to increase operational efficiency. Enhances
productivity by aligning workforce capabilities with company needs.

Management Employee Engagement:

Promotes a motivated and dedicated workforce, leading to higher
productivity and lower employee turnover.
HRM involves recruiting, training, and
retaining employees to support the Performance Management System (PMS):
company’s operations and ensure it has Regularly evaluates employee performance, aligning individual efforts
the necessary talent to meet its goals. with overall business goals. Provides feedback for continuous
improvement.

Payroll:
Ensures accurate and timely payment of employees, maintaining morale
and compliance with legal requirements.
 Recruitment:
Recruitment Through newspaper advertisements,
Management - Through interviews conducted by HR recommendations, on campus
placements.
Workers - group recruitment for training
(Source:Store visit)
Total Workforce: 523

Training Employee Engagement

Groups of at least 15 individuals trained over 15 days. Birthdays, employee events
Basics of machine operation, threading, and
maintenance.
Overview of Arvind and AMD.
Basic stitching techniques and use of SNSL
for straight lines, squares, triangles, and
pockets. Employee events Birthday celebrations
(Welcome to Raymond | Career, 2024) (Welcome to Raymond | Career, 2024)

Union management
RLA (Raymond Leadership
Employee Engagement
Academy)
Birthdays, CLAP,Best line trophy RLA is a group-level initiative where potential leaders
in different businesses are identified through a
vigorous and transparent process of selection. The
selected employees are then trained, mentored and
prepared to shoulder leadership responsibilities as
and when the opportunity is available.

Source : https://raymondrealty.in/hr-corner/

(Source: Apparel Internship)

Strategic Management: Developing long-term goals and
aligning departments with the company's vision. Overseeing
performance monitoring and corporate governance.

Finance & Accounting: Managing budgeting, financial

planning, and cost control.Ensuring cash flow and profitability,
Firm
Infrastructure
essential for smooth operations.

Legal & Compliance: Ensuring adherence to laws, regulations,

and contracts.Mitigating risks related to trade laws, contracts,
Firm infrastructure refers to the company’s
and regulations.
organisational structure, legal framework,
financial systems, and management
Quality Management: Maintaining standards and certifications
processes that allow it to function
across operations.Focusing on continuous improvement to
effectively.
enhance efficiency and product quality.

Information Systems & Technology: Managing data, IT

systems, and ensuring secure operations.Using ERP systems
to integrate procurement, operations, and sales.
 Technological Development
Legal & Compliance

Area: 8026 sqm One store (Where visit was made)

Area: 900 sqm
Number of Workforce: 7
(Source: Store Owner)
Lines: 8
Quality Management:
Machines: 748 They have also introduced lifetime warranties on
alterations for bespoke garments, reinforcing their
Workforce: 523
commitment to premium quality.
(Source: Apparel Internship)

As a company that worked with protective clothing all

necessary are certified (fabrics, trims, garments design)

Cutting, lay and bundle

Quality Management inspection
Inline inspection Traffic light system
Fabric and trims inspection Rework token system
 Automation & Process Technology: Using machinery and
robotics to streamline production, reduce costs, and
increase efficiency.

Technological Supply Chain Software: Implementing logistics and

Development
inventory tracking systems to improve supply chain
visibility.

E-commerce & Digital Platforms: Creating and managing

Technological development refers to the online stores, enhancing user experiences, and engaging
use of technology to improve efficiency in customers digitally.
operations, innovate new products, or
optimise supply chain processes. Enterprise Resource Planning (ERP): Integrating business
functions like procurement, operations, and sales into a
single platform for better management.
 Technological Development

E-commerce & Digital Platforms

Automation & Process Technology

Raymond’s strong digital presence includes a robust e-

commerce platform that supports both traditional retail and
customisation services like Made-to-Measure (MTM). Their
digital channels provide customers with personalised options,
from fabric selection to bespoke tailoring appointments.

Amazon
Flipkart
Myraymond.com
Myntra
Shoppers Stop
Nykaa Fashion
Enterprise Resource Planning (ERP)
Tata CLiQ
Ajio
Snapdeal

(Source: Apparel Internship)

(Source :Market research)
 Supplier Identification: Selecting suppliers that provide
quality raw materials or services.

Supplier Negotiations: Ensuring cost-effective deals while

Procurement maintaining quality.

Purchasing: Managing the acquisition of goods, materials,

or services.
Procurement is the process of acquiring
goods and services for an organization.
Inventory Management: Ensuring that materials are
Procurement can take place at any stage
available when needed without overstocking.
in the value chain, from buying raw
materials to fulfilling orders.
Supplier Relationship Management: Maintaining strong
relationships to ensure reliability and quality in the supply
chain
 Procurement

Nomex Fiber -
Manufacturer

Proban Finish -

Wholesaler
FR Viscose -

PVA Viscose -
Retailer
(Polyvinyl Alcohol)

Moda Acrylic -

Consumer
Meta Aramid -
(Source: Store visit)
(Source: Apparel Internship) (AMD- Human protection, 2024)
 Firm Area: 8026 sqm Machines: 748 All Fabrics, trims and garments are certified

A
Infrastructure Number of Lines: 8 Workforce: 523 Periodic inspections in every manufatureing department

Margin
Human Differnet recrutment for Groups of at least 15 Birthday celebrations
Resource workers and mangamnet individuals trained over Music is played for workers
management personal 15 days Appreciation through CLAP

r Technological
Development
14 Automatic machines to perform various operations.
This helped improve efficiency and reduce human error.
SAP ERP used

v
Nomex Fiber - Dupont PVA Viscose - Kuraray Moda Acrylic - protex Value based inventory
Procurement Proban Finish - solvay (Polyvinyl Alcohol) Meta Aramid - Kermel management
FR Viscose - lenzing

i
Inbound logistics Operations Outbound logistics Marketing and Sales

Margin
Government tenders
Sources fabric from Santej Standardised Production Export Compliance Audits
through GEM
Major International Process Buyer Portal Connections
International trade

n
supplier Bulk Manufacturing Output Sea Route Shipments
shows and Expos
10% Acceptance Quality Efficiency in Handling Container Security
Long-term
Level Cost-focused Inventory Inspections
relationships
Transport majorly through

d
Bids on relevant
trucks sea freight
tenders
 Firm One Area: 900 sqm They have also introduced lifetime warranties on alterations for bespoke

R
Infrastructure store Workforce: 7 garments, reinforcing their commitment to premium quality.

Margin
Human Through newspaper advertisements, Birthdays, employee events

a
Resource recommendations, on campus Raymonds Leadership Academy (RLA)
management placements.
Amazon Tata CLiQ Myntra
Technological

y
Flipkart Ajio Shoppers Stop Ecommerce Platforms
Development Myraymond.com Nykaa Fashion
Snapdeal

m
Procurement From the official warehouse

o Inbound logistics Operations Outbound logistics Marketing and Sales

Margin
Fabric Sourced from Tailored Production Order Processing Seasonal promotions

n
Mumbai & Bangalore Systems
High Customization Bonus points with
Lead 3 months E-commerce Fulfillment
Trend-driven Restocking limited-time validity
Distributed through

d
Fast Fashion Cycles Centers Shirt and trouser
wholesalers and Trusted Courier bundles
distributors Partnerships
High-value vouchers

s
Transport through tempo Real-time Store
and pickup Replenishment
Thank you!