Supply Chain Management

Supply Chain
Muhammad
Management Asad Faridi
Gul Ahmed Textile Mills

Limited
Table of Contents
Company Profile
History
Business Activities
Products
Supply Chain Management
Supply Chain Drivers
Transportation
Inventory Management
Pricing
Distribution
Company
 Profile
Gul Ahmed first began trading in textiles in the early 1900's, and
manufacturing started in 1953 with the establishment of Gul Ahmed Textile
manufacturing started in 1953 with the establishment of Gul Ahmed Textile
Mills Limited. Gul Ahmed was listed on the Karachi Stock Exchange in
1972. Fifty years since its inception, the name Gul Ahmed is still
synonymous with quality, innovation and reliability.
 Being vertically integrated Gul Ahmed is capable of producing different
varieties, starting from cotton yarn to finished product involving different
processing techniques. With an installed capacity of 120,000 spindles, the
spinning units are able to produce a wide variety of yarns from 100% cotton
yarn to poly-cotton, cotton-viscose and other blends in both coarse and fine
counts.
 The weaving units are equipped with high speed 250 air jet looms and can
produce high quality fabrics in sheeting, satins, percales, twills, drills,
dobbies, voiles and an array of other finely woven fabrics including yarn
dyed. Processing is equipped with sophisticated technology to ensure quality
printing, dyeing, different finishing treatments with facilities to add extra
value to products in terms of coating and flocking.
 With modern,state of the art stitching facilities Gul Ahmed is equipped with
regular and specialized machines which manufacture products in many
varieties and styles. Large embroidery and quilting units add versatility for
embellished products to cater to all sorts of customer needs and requirements.
All this is backed by systems that constantly check and control production to
achieve high standards
Bankers:
 Main bankers of the group are:

 Allied Bank Limited
 Bank Al Habib Limited
 Barclays Bank Plc, Pakistan
 Citi Bank, N.A.
 Faysal Bank Limited
 Habib Bank Limited
 Habib Metropolitan Bank Limited
 HSBC Bank Middle East Limited
 Meezan Bank Limited
 National Bank Of Pakistan
 Nib Bank Limited
 The Royal Bank Of Scotland Limited
 Standard Chartered Bank (Pakistan) Limited
 United Bank Limited
 List of Membership of Trade Bodies and Organization
 The Karachi Stock Exchange (Guarantee) Limited.
 Lahore Stock Exchange (Guarantee) Limited.
 All Pakistan Textile Mills Association.
 Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association.
 All Pakistan Bed sheets & Upholstery Manufacturers Association.
 Karachi Cotton Association.
 Chamber of Commerce & Industry, Karachi.
 Employees Federation of Pakistan.
 All Pakistan Textile Processing Mills Association
History of Gul Ahmed
 The story of textiles in the subcontinent is the story of Gul Ahmed. The group began
trading in textiles in the early 1900’s. With all it’s know-how and experience, the
group decided to enter the field of manufacturing and Gul Ahmed Textile Mills Ltd.
was incorporated as a private limited company, in the year 1953. In 1972 it was
subsequently listed on the Karachi Stock Exchange. Since then the company has
been making rapid progress and is one of the best composite textile houses in the
world. The mill is presently a composite unit with an installed capacity of 130,296
spindles, 223 wide width air jet looms, and a state of the art processing and finishing
unit.
Business Activities
 Textiles
In the textile field, activities start from the spinning of cotton as well as man made
fibers and extend to weaving, processing and finishing of all types of cotton and
blended fabrics, bed linen, home furnishings, garment manufacturing, etc.
 Management
Management of the group is professionally qualified and broadly experienced. The
directors have held top positions in various textile bodies, export committees and
have also assisted the Government of Pakistan in some of the major trade talks with
EC and USA authorities.
Business Activities
Products
1. Fashion Fabrics and Apparel
2. Home textiles, Embellished Beddings and Curtains
3. Singed Dyed and Mercerized Yarn
4. Combed and Carded Yarn for knitting and weaving
The apparel line consists of fabrics such as lawn, linen,

chiffon, latha, khaddar and polyester cotton, forth ladies
collection. Gents collections are chairman, texana, poplin
etc. The Home Textile range of bed linen, cushions, kitchen
items and curtains are in plain dyed, printed upto 21 colours
embroidered and embellished in different styles. Gul Ahmed
is proud to be the largest Home Fashion Exporter to the
European Union consistently for the last 25 years
Supply Chain Management
We have the very strong and effective supply chain management, we have
the number of items that are major component of the Textile Industry that
is Cotton, Yarn, Gray, Dyes & Chemicals, Spare parts, Packing Material,
Stitching Accessories, General Items etc.
There is the procurement procedure as follows:

 The request raise from the department or user.
 The user prepares the requisition.
 The requisition review by the Store and if the item is available in stock
they issue if not the asked to raise the indent for the item to purchase.
 The Indent after scrutiny sends to the purchase department to get the rates
from the approved suppliers.
 The purchase order is made and issued to the selected supplier and the
supplier send the items on the agreed time. The Store takes the item in the
store receiving document and update the stock level.
 The Store department then asked for the store requisition from the user to
issue the item from the store.
 After the delivery of the item from the supplier the payment summary is
made as per the payment terms agreed with the supplier and the cheque is
issued for the payment to the supplier.
Supply Chain
Drivers
Transportation
The Transportation is used for several purposes and we
have the mix of the in-house and outsourced
transportation facilities. We used our own
transportation for the delivering to our retail outlets
within the Karachi and for other cities and for fabric/
yarn movement within the different units we have the
transport contractors for different locations. We don’t
keep the single contractor to discourage the monopoly.
Inventory Management
 Inventory is the major component of our financial statements and we put
more effort to maintain the inventory for smooth flow of production. We
have a full proof inventory movement system “Inventory Management”
system. We are using the weighted average inventory system for
calculating the rates of the individual item. But we prefer to use the FIFO
for the issuance of the inventory to different units.
 We are maintaining the minimum stock of every item that tell us about the
re-ordering of that item and we calculate this minimum inventory level by
considering the maximum lead time and the safety stock. We keep the
sufficient safety stock in our store for Spears and tool and general items as
the major item are imported that takes more time to import and for Dyes
and chemicals we maintaining the minimum stock as per our planning of
the next three months orders. As the dyes and chemicals are highly volatile
items and they turn into the dead stock after one year we use prudent
approach for these items.
 They recommend the average inventory turnover for the local dyes &
chemicals for two weeks and for imported dyes & chemicals for four
months (based on future orders).
Pricing
 Our Pricing policy is some how mixed in connection with the Local and
export. We use Total cost Plus pricing for export orders that mean we do
pre order costing based on sample approved by the customer and send
them for the acceptance. And for Local we have pricing based on the
market. We have the competition in the Local market as well and many
brands are running so that we consider the market before pricing the
product.
Distribution
Distribution channel are different for Local and Export orders, we
have our own transpiration for the distribution to the retail outlets
in Karachi but for the other cities we have the contract with the
transporting companies to deliver to all outlets outside the
Karachi. For export we do the direct shipment to the customer.
The shipment dates and the destination provided by the customer.

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Supply Chain

Gul Ahmed Textile Mills

Supply Chain Drivers

 Main bankers of the group are:

The apparel line consists of fabrics such as lawn, linen,

There is the procurement procedure as follows:

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