SUPPLY CHAIN

(FINNAL PROJECT)

AMTEX (TEXTILE MILLS)

 SUPPLY CHAIN (finnal project)

Submited by:

Munim Namdar

Abbas raza

Mishal gohar

Zain aslam

Hasseb Iftikhar

Syed.taimoor

Junaid qader

Submited to:

Sir. Zaya-ul-haq

Date:

31/jan/2019

Saction:

University of Lahore
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 SUPPLY CHAIN (finnal project)

Introduction:

Amtex is one of the leading textile manufacturing groups in Pakistan. It is a vertically

integrated group with operations in all sectors of the textile industry from Spinning to Stitching.
The annual turnover of the group is around 200 million US dollars. Amtex provides employment
opportunities to about 15,000 families. It has a diversified product and market portfolio. Amtex
holds a special position in the textile industry in the sense that it provides the largest variety and
combination of products to its customers under one roof.

Amtex is leading manufacturer of Home Textile and garments Products. The

manufacturing processes are certified on ISO 9001:2000 standards. Amtex is a quality conscious
company; it has a well define policy towards quality. This policy is the driving force behind
achieving the quality of the products produced in Amtex.

Amtex philosophy is to create a single channel for satisfying diverse and high class needs
of our valued partners. We are highly flexible in responding to dynamic needs of our customers.
We have a set of truly devoted professionals who focus on their areas of specialties to produce
highly valued products. We believe in partnership not only with our customers but also with our
employees who have proved to be a key in maintaining the highest level of excellence in our
outputs.

Amtex has sustained such massive growth levels on the back of strong outsourcing
capabilities (without incurring any additional CAPEX) and direct relationship with Leading
Global Retailing Giants, who purchase directly from Amtex (with no middleman involved). With
the retailers program running between minimum six month to over a year, Amtex is able to plan
and control its operations effectively, harnessing growth and stability in the business. Amtex has
strong focus on R&D and invulnerable Quality Assurance system in place that has enabled the
products to build a mark on the customers, cultivating stronger relationship with them. With
strong management, state of the art textile manufacturing facility, international display centers
and warehouses for facilitating procurement of orders and direct dealing with retailing giants,
Amtex is marching towards becoming a leader. All this coupled with other strengths of Amtex
(disclosed in the Investment Rationale section in Information Memorandum), the Company has

University of Lahore
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 SUPPLY CHAIN (finnal project)

distinctive edge that has enabled it to multiply the top-line of the Company and pose handsome
bottom-line over the years..

Vision:

Our vision is to provide our customers with just the one vanue to supply all their
requirements.

Mission:

Our mission is to become the buyer’s first choice all around the world and to achieve this
target we make sure that we stay true to the highest standards of excellence and customer’s
satisfaction

Objective:

Objective of Amtex is to creating a professional platform where colleagues from the

machine tool and engineering sector meet to display and exchange knowledge about the
technological innovation and investment opportunities of the sector.

Product and Process Strategies:

Amtex products are manufactured under the strictest quality standards (ISO 9001, Halal,
Kosher standards and others) and under the most stringent environmental safety measures. Our
production and distribution lines ensure a delivery on time and to your satisfaction. We provide
technical guidance and the possibility to develop customized products.
Amtex is a strategic partner, able to provide effective solutions to improve the
characteristics of their products and processes. In this position of product, Employees will play a
critical role in both developing and executing the Go-To-Market (GTM) strategy for all digital
products being created at Amtex - specifically in the area of analytics, artificial intelligence &
other emerging technologies. The ideal candidate will blend strategic thinking with tactical
execution and be hands on creating product positioning, messages, content, and programs. This
role will include sales training, competitive positioning, and cross-functional leadership across
marketing, sales, product management and product development reporting directly to the VP.

University of Lahore
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 SUPPLY CHAIN (finnal project)

Inventory Management:

Inventory management team ensures that the inventory level is kept at an optimal level to
prevent any stock outs and also avoid excessive stock for working capital management reasons.
After getting the update of sales in each store, replenishment of sold articles are being made on
weekly basis. These PO’s are received on Tuesday and shipment is made on Friday of the same
week. No additional lead time is available if a miscalculation is made by Amtex. That is why,
business analysts at Amtex are continuously conducting detailed analysis and ensuring that all
anomalies in demand are properly accommodated. For one program of Sheeting, there are in
minimum 8 styles/colors with 5 sizes. So in total 40 SKU’s in minimum are to be analyzed by
the Business Analyst. The team utilizes high end Decision Support System so therefore,
inventory levels are revised and amended as required. These are called “Replenishment
Shipments”.

Location and Layout Planning:

Appropriate layout planning is essential for efficient performance. In many plants

and warehouses, layout is the most important component of facility planning. Layout
affects space usage, materials handling cost and is highly influential on work flow times.
Layout determines the flexibility and adjustability of the facility in the reaction to changes
in product portfolio and business mission.

Layout must not be executed without considering its accuracy and

appropriateness, or must not be left as uncoordinated results of continuous improvement
efforts. Such an approach resembles playing “single move chess”. Often, you would regret
from your previous move shortly after! A good layout requires a comprehensive approach
that takes into account all factors with multiple alternatives reviewed and included.

Our (Amtex) layout and space planning course is based on Systematic Layout
Planning (SLP). Systematic Layout Planning focuses on manufacturing plant layout plans.

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 Add new equipment or capacity.

 Introduce new business activities or products.
 Arrange facilities for better materials flow and processes.
 Expand or combine facilities.
 Apply working cells and lean manufacturing systems.
 Apply new storage methods, processes and systems.
 Make new arrangements for working groups and more efficient communication
within the company.
Human Resource Planning:

At Amtex we believe our employees are our most valuable assets and have created an
environment for them to maximize their potential. We provide exciting career opportunities in
Application & Product Development and Testing, Mobile Technologies, Business Intelligence &
Consulting, Global IT Consulting, Civil & Architecture Technologies and ITES operations.
Human Resources in Amtex use different strategies and add value in overall company.
HR advises on personnel strategies, policies and practices, which support the achievement of the
company’s business objectives while fulfilling its obligations to employees. Demand and supply
forecast of people requirements in terms of numbers, skills and competences and plan for the
recruitment and retention of employees to meet business requirements.
Advice on reward management systems and the operation of the company’s pay structure and
performance pay scheme, which obtain, retain and motivate employees.
Advise on employee relations issue and coordinate the company’s involvement and
communication process in order to develop and maintain cooperative and peaceful climate of
employee relations in the company. Recruiting high caliber employees for each open position
from Afghan, USA, UK, UAE, Pakistan, India, Bangladesh, Sri Lanka, Nepal, Philippines,
Slovakia, South Africa, Croatia, Indonesian, Fiji, Macedonia, New Zealand, Romania etc. to help
achieve the business targets within budgeted staffing plans. Planning and conducting new
employee orientation to foster positive attitude toward organizational objectives. Developing
and maintaining employee handbook on policies and procedures. Managing and supervising
visas and work permits for all international staff. To ensure that all in-house rules and regulations
are adhered to company policies and procedures.
University of Lahore
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 SUPPLY CHAIN (finnal project)

Supply Chain Management:

As a Supply Chain management role is interdisciplinary, spanning logistics and

distribution, purchasing, manufacturing, inventory management, marketing and product
development. SC manager also review existing procedures and examine opportunities to
streamline production, purchasing, warehousing, distribution, and financial forecasting to meet
the company needs. SC manager is also involve in developing strategies to cut costs, improve
quality, and improve customer satisfaction.

In supply chain management SC manager expert in knowledge of distribution center

operations, transportation, supplier operations, operations management, cost-benefit analysis,
process improvement, and logistics strategy with excellent management and communications
skills & also good knowledge of implementing Lean Six Sigma methodology. As a in supply
chain & procurement expert with invaluable knowledge of managing projects, resources and
staff in an effective and efficient manner. SCM Highly focused with a comprehensive
understanding of logistics, inventory management, procurement and the supply chain.
Committed to identifying and implementing continuous improvements in the supply chain, now
looking for a new and challenging managerial position, one which will make best use of existing
skills and experience and also further my personal and professional development.

Amtex will transmit the following electronic documents to the Supplier.

 Planning Schedule with Release Capability, weekly.

 Shipping / Production schedule, daily (where applicable).
 Functional Acknowledgment will always be sent for ASN’s with X.12 syntactical errors.
This transaction set will be available within 30 minutes. For ASN's passing syntactical
validation, it will be up to the supplier to indicate to Amtex if they wish to receive a 997
upon syntactical acceptance of their ASN transmission. Application Advice Shall be sent
for each ASN received, and passing X.12 syntactical requirements. The will indicate
either the acceptance of the ASN, or the rejection, with appropriate reason(s) for the
rejection.

University of Lahore
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This transaction set will be available within 30 minutes . . . and will receive the following
electronic documents from the Supplier
 Ship notice / manifest (ASN) one for each shipment. This ASN transaction shall be
transmitted by the Supplier at the time the shipment leaves the ship-from facility, and not
before. The ASN must arrive within Amtex’s mailbox prior to delivery of product.
SPECIFIC information for each container must be included in the ASN, and generated by
scanning the AIAG bar coded container labels. Please note, Suppliers will eventually be
required to generate the ASN by scanning AIAG bar coded container labels.
 A Material Supplier EDI Profile sheet must be completed by each Supplier ship-from
location and faxed, or sent via EMAIL, to Amtex’ EDI conversion coordinator.

University of Lahore
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Order Flowchart:
Customer
Consult Service

Analyze
Demand

Design
Sample

Confirm Reject
With
Customer

Order Place

Payment

Work in
Process

Quality
Assurance

Deliver to
Customer

University of Lahore
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 SUPPLY CHAIN (finnal project)

Material Flowchart:

Procurement of
Raw items

Receive Items

Quality
Assurance Reject

Product Bar code

Label

Inventory

Work in process

Storage

Shipping to
Customer

University of Lahore
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 SUPPLY CHAIN (finnal project)

Manufacturing Flowchart:

Raw Material Yarn

(Filament and stale Preparation
fiber and wool
cotton

Fiber Knitting
Spinning Preparation

Warp and
Weaving
Weft

Grey Fabric

Singeing and
Desizing

Bleaching

Steam
Dying
Dying or
Printing
Printing

Finishing

University of Lahore
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 SUPPLY CHAIN (finnal project)

Pipeline Management:

Procurement of
Raw
items(supplier)

Spinning

Weaving

Work in process

Wholesaler

Retailer

Customer

Material pipeline

Order Information pipeline

University of Lahore
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Information Flowchart:

CEO

Vice President

General Manager

Manager

Supervisor

Employees

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Conclusion:

Amtex delivers the best product to its customers in Pakistan. The operational goal is
being achieved through creating the professional platform for technological innovation in textile
industry. In Amtex, the procurement, contract management and logistical, warehouse &
inventory procedures are handled by the Supply Chain Management Department. To procure any
products and/services, the Procurement Amtex Supply Chain Management department has to
carry out a systematic procedure consisting of various steps. During this process, the personnel
involved face various challenges and problems. The challenges could be general or specifically
related to different stages of the procurement process. The key general challenges identified are:
No definite ownership of the procurement system, lack of end user requirement planning,
inadequate specification of requirements, tradeoff between compliance and simplification, etc.
Key challenges specific to different stages are: Lack of knowledge and skill of user department
personnel about purchase requisition and procurement process, lack of coordination between
members, incomplete and untimely technical evaluation, high bargaining power of specific
vendors, disagreements with vendors about terms and conditions of the contract, lengthy process
of selecting vendors and awarding contracts, critical mistakes , delays in shipment and in
clearing of goods from ports. But overall performance of the supply chain management team in
Amtex is satisfactory and successful.

University of Lahore
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