[Title of Research]

A Study on Supply Chain Management Practices and Lead-Time

Management of Karooni Knit Composite Limited

An Internship Report

Under the Supervision of

Ms. Nafia Sultana
Lecturer (Management)
Department of Business Administration- General
Faculty of Business Studies (FBS)
Bangladesh University of Professionals (BUP)

Submitted by
Shakil Ibnay Wahid
Student ID: M18232028
MBA-18, Supply Chain Management
Session: 2017-2018

[March 2020]

i
Letter of Transmittal

March 28, 2020

Ms. Nafia Sultana

Lecturer (Management),

Faculty of Business Studies, Business Administration- General

Bangladesh University of Professionals.

Subject: Internship report on “A Study on Supply Chain Management Practices and Lead-Time
Management of Karooni Knit Composite Limited”

Dear Madam,

Greetings. This is to inform you that I have completed my internship program at Karooni
Knit Composite Limited. I have also completed the internship report titled “A Study on Supply
Chain Management Practices and Lead-Time Management of Karooni Knit Composite Limited”
as a part of the completion of my internship according to the requirements of Bangladesh
University of Professionals.

In writing this paper, I have tried my best to imply the concepts that I have learned
throughout my academic life along with the actual experience gathered while working on the actual
environment. In this report, I have reflected what I have done throughout the internship period and
I expect this report will meet your expectations. I am always available for any further query and
clarifications about this report.

Sincerely,
Shakil Ibnay Wahid
ID: M18232028
MBA-18, Supply Chain Management
Bangladesh University of Professionals

ii
 I recommended that this report has been prepared under my supervision by

Shakil Ibnay Wahid

Student ID: M18232028
MBA-18, Supply Chain Management
Session: 2017-2018

Titled

A Study on Supply Chain Management Practices and Lead-Time

Management of Karooni Knit Composite Limited

be accepted in partial fulfillment of the requirements for the degree of Masters of Business
Administration under the Ms. Nafia Sultana, Lecturer (Management), Bangladesh University
of Professionals (BUP)

…………………………………….
Supervisor
Ms. Nafia Sultana
Lecturer (Management), Department of Business Administration- General,
Faculty of Business Studies, Bangladesh University of Professionals.

iii
 Acknowledgement

At the beginning I would like to convey my cordial gratitude to Almighty Allah for giving me the
strength to terminate the assigned. I would like to reimburse my profound respect to my
respected supervisor, Ms. Nafia Sultana, Lecturer (Management), Department of Business
Administration-General, Faculty of Business Studies, Bangladesh University of Professionals for
her generous and gracious guidance.

At the same time I also pay my heartily gratitude to the Human Resource, Compliance and
Planning department of Karooni Knit Composite Limited ;Who had extended their helping hands
by showing the right and effected path to me as well as given me a prospect to do an internship
in the organization. Furthermore I wish to thank all staffs and personnel’s due to their all
friendly supports for me Specially to Mr. Abraruzzaman Diamond, Executive Director (Plant)
for his continuous support and facilities he has given to me. I gratefully acknowledge those helpful
persons,.without them I cannot prepare this report effectively.

Sincerely,
Shakil Ibnay Wahid
M18232028
MBA-18, Supply Chain Management
Bangladesh University of Professionals (BUP)

iv
 Declaration

I hereby declare that except where specific reference is made to the work of others, the contents of
this dissertation are original and have not been submitted in whole or in part for consideration for
any other degree or qualification in this, or any other University. This dissertation is the result of
my own work and includes nothing which is the outcome of work done in collaboration, except
where specifically indicated in the text.

Shakil Ibnay Wahid

March 2020

v
 Executive Summary

In today's global marketplace, effective supply chain management is seen as a significant

competitive advantage for a business. The enterprise that conducts robust supply chain planning
activities, delivers increased efficiencies. Supply chain managers plan, schedule, and control that
flow of goods to help the company stay competitive and control costs. They build the
bridges among suppliers, companies, and consumers. Textile industry has a great impacts on our
economy. RMG sectors depend on textile industry directly or indirectly. For this reason, textile
products and supply chain management practices should be updated and systemized to smooth this
broaden industry. As an internship program, I have chosen Supply Chain Management Practices
of Karooni Knit Composite Limited and Their Lead-Time Management. Karooni Knit Composite
Limited is a 100% export oriented knit garments factory, situated at Ratanpur, Shafipur, Gazipur.
I have performed 10 weeks internship in this organization and observed productive procedure, its
supply chain management and lead-time management. From this observation, I have to realize not
only production but also a sound supply chain management meeting to achieve organizations goals
with proper lead-time management. To prepare this report, I have discussed with officials as well
as workers about the production and its supply chain management practices. Primary and
secondary data help me build up a concrete information. Some limitations were faced to prepare
this report. I have drawn a small picture of Karooni Knit Composite Limited. Then I have given a
short theoretical framework to understand supply chain management and its lead-time
management to sustain in competitive markets in our country.

vi
Table of Contents
Chapter- 1: Generalities to the Study ........................................................................................................... 1
1.1. Introduction: ...................................................................................................................................... 1
1.2. Origin of the Report: .......................................................................................................................... 1
1.3. Statement of the Problem: ................................................................................................................ 2
1.4. Objectives of the Study: ..................................................................................................................... 2
1.5. Significance of the Study: ................................................................................................................... 2
1.6. Limitations of the Study: .................................................................................................................... 3
Chapter- 2: Literature Review ....................................................................................................................... 4
Chapter-3: Research Methodology ............................................................................................................... 9
3.1. Data Collection: .................................................................................................................................. 9
3.2. Research Design and Philosophy: ...................................................................................................... 9
Chapter- 4: Company Overview .................................................................................................................. 10
4.1. About the Company: ........................................................................................................................ 10
4.2. Basic Information: ............................................................................................................................ 11
4.3. Mission and Vision: .......................................................................................................................... 13
4.4 Goal and Objective for Higg Index: ................................................................................................... 13
4.5. Eco Friend Responsibility: ................................................................................................................ 14
4.6. Welfare Policy: ................................................................................................................................. 14
4.7. Certifications: ................................................................................................................................... 15
4.8. Sister Concerns: ............................................................................................................................... 15
4.9. Clients of Karooni: ............................................................................................................................ 16
4.10. Product Range: ............................................................................................................................... 16
Chapter- 5: Production Process of a RMG Manufacturing Industry ........................................................... 18
5.1. Three Decision Level: ....................................................................................................................... 18
5.2. Production Process in Garment Manufacturing: ............................................................................. 19
Chapter- 6: Supply Chain Process of Karooni Knit Composite Limited ....................................................... 23
6.1. Input: ................................................................................................................................................ 23
6.2. Process: ............................................................................................................................................ 24
6.3. Output: ............................................................................................................................................. 27
Chapter- 7: Lead-Time Management of KKCL and Calculation ................................................................... 30
Chapter- 8: Analysis and Findings ............................................................................................................... 34
Chapter- 9: Recommendation and Conclusion ........................................................................................... 36

vii
 9.1. Recommendations: .......................................................................................................................... 36
9.2. Conclusion: ....................................................................................................................................... 37
References .................................................................................................................................................. 38

viii
 Chapter- 1: Generalities to the Study

1.1. Introduction:
In today’s world of globalization many apparel retailers are building strong supply chains to gain
advantage over their competitors by offering the best value to their customers. The supply-chain
management (SCM) has become very critical to manage risk, dynamism, and complexities of
global sourcing. A totally integrated supply chain is required for the company to get gain the
maximum benefits. The objectives of the supply chain and the performance measurements need to
be understood in order to build the most effective supply chain. Performance measurements
provide an approach to identify the success and potential of supply management strategies. One
major aspect of the SCM is to select the right sources of supply in the global business environment
that can support corporate strategy. Contrary to the conventional adversarial relationships,
effective SCM in the new competition suggests seeking close relationships in the long term with
less number of partners. Considering the rapidly changing market conditions and customer seeking
the best value, long-term relationships with the vendors became very critical in the apparel
industry. Therefore, the apparel retailers are looking for the vendors who can provide the best cost
in the fastest way. Such a relationship is regarded as partnership since it includes activities such as
information sharing, joint product design, or sharing storage spaces. The purpose of this report is
to emphasize the importance the vendor-selection problem and its relation to the supply-chain
strategy.

1.2. Origin of the Report:

This Industrial report on A Study on Supply Chain Management Practices and Lead-Time
Management of Karooni Knit Composite Limited is initiated as a part of Internship Program.
It is required as a student of Masters of Business Administration to conduct a practical orientation
in any organization. For fulfilling the requirements, I have done the 10 weeks internship Program
at the Karooni Knit Composite Limited, Ratanpur, Shafipur, Gazipur.

1|Page
1.3. Statement of the Problem:
In this report, I will try to bring out the working procedure of the Supply Chain Management
(SCM) procedures of Karooni Knit Composite Limited focusing on the points where are the
limitations and how they are managing their operations lead time.

1.4. Objectives of the Study:

The main objectives of the report is to examine, evaluate and analyze Supply Chain Management
(SCM) process and practices of Karooni Knit Composite Limited and observing their lead-time
management. Other objectives are-

 Observing and evaluating the importance of Supply Chain Management (SCM) Practices
from organization’s point of view.
 Analyzing the performance of production department and its sub related department.
 Comparing the Supply Chain Management (SCM) activities of STL with other renowned.
 Acquiring the practical knowledge of textile sectors, their environment and their
maintenance of Supply Chain procedures.
 Evaluating the performance of Supply Chain Management (SCM) and the procedure to
deals with their consumers.
 Find out the lackings and offer some recommendations to overcome the related problems
about Supply Chain Management.

1.5. Significance of the Study:

Bangladesh as a developing economy has a lot left to be desired and there are many scopes for
massive improvement. Garments industry is a biggest source of earning remittance. In an economy
like this, Industrial sector (especially Textiles industry) can play a vital role to improve the overall
economic and social condition of the country. Supply Chain Management (SCM) encompasses the
planning and management of all activities involved in sourcing and procurement, conversion, and
all logistics management activities. There is believed in our country that practices of Supply Chain
Management (SCM) is strictly followed in jargon or established industry. But small or new born

2|Page
industry does not follow Supply Chain Management (SCM) properly or scientifically as a result
those industry are not sustaining long time or not creating business gap. However, an industry can
create enough business space by practicing Supply Chain Management (SCM). Realizing the
importance of Supply Chain Management (SCM) practices in textile industry, I have chosen this
topic for my internship report. I believe this report will help to learn about Supply Chain
Management (SCM) and importance of Supply Chain Management (SCM) practices especially of
textiles industry in Bangladesh.

This study analyzes the meaning of Supply Chain Management (SCM) based on some theories
available in literature and from the secondary source. Supply Chain Management (SCM) is
evolving in its meaning and practice. The study discusses the role of Supply Chain Management
(SCM) in Industrial development. Supply Chain Management (SCM) is presently one of the most
discussed topics. The purpose of the study is to provide deep understanding about the benefit of
supply chain, accountability and show steps taken by the organization to sustain in global and
competitive business world. The study has been taken to observe different Supply Chain
Management (SCM) areas of other textile industry in Bangladesh and its contribution. This study
found Supply Chain Management (SCM) of Karooni Knit Composite Limited (KKCL) from which
we will try observe the current situation of the Supply Chain Management (SCM) procedures
performed in the textile sector of our country. From this report, the academics and the practitioners
will be able get to know about the scenarios of Supply Chain Department in the textile industries.
They will be able to imply them and can further add more efficiency in managing the Supply Chain
Procedure of this sector.

1.6. Limitations of the Study:

Many limitations and constraints restricted the study work several times, which caused some
lackings in the accuracy of the report. The limitations are as follows:

 Due to lack of time.

 Difficult to verify the accuracy of the collected data.
 It was so difficult to collect the adequate and real data from the assigned organization
due to their company policies and restrictions.
 Improper combination among various department.
 Lack of adequate books, journals and papers to conduct the research.

3|Page
 Chapter- 2: Literature Review

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer
request. The supply chain includes not only the manufacturer and suppliers, but also transporters,
warehouses, retailers and even customers themselves. According to Sunil Chopra, “A supply
chain is dynamic and involves the constant flow of information, product and funds among different
stages.” According to Nada N. Sanders, “Supply chain management (SCM) is the design and
management of flows of products, information, and funds throughout the supply chain. It involves
the coordination and management of all the activities of a supply chain.” A supply chain is the
network of all entities involved in producing and delivering a finished product to the final
customer. This includes sourcing raw materials and parts, manufacturing, producing, and
assembling the products, storing goods in warehouses, order entry and tracking, distribution, and
delivery to the final customer.

The Process of Supply Chain Management of manufacturing and service industries starts with
suppliers, manufacturers, distributors, retailers, customers and suppliers, service providers,
customers and end with customers respectively (Fabric2Fashion.com, 2014). The customers are
the most vital focal point of the supply chain, since the primary purpose of the existence of any
supply chain is to directly or indirectly satisfy the needs of the customers. In every manufacturing
organization, for their working purpose they follow the basic supply chain. The following diagram
is the basic supply chain for manufacturing organizations.

Figure: Basic Supply Chain (S. Chopra, P Meindl and D.V Karla; “Supply Chain Mnagement-
Strategy, Planning and Operation”)

4|Page
The basic supply chain of readymade garment industry in Bangladesh are involves supplier,
manufacturer, ultimate buyer and service provider.

Supplier:

Fabrics, Accessories, Packaging producers are defined as supplier in garments industry. All the
fabric items are sourced from around the world but most of the time accessories and packaging
item procure locally.

Manufacturer:

Garments manufacturer or factories are defined as company. If we think about in Bangladesh

perspective all the garments, factories are working as a company.

Customer Phase- 1: Merchandise organization or buying house. In fact, all the merchandise
organization and buying house working as an intermediary between buyer and garments factories
and for this service, they earn commission.

Customer Phase- 2: Retail Branding Owner (RBO)-H&M, Zara, New Yorker, O’stin etc. All the
garments brands are in this phase. They are the main buyer and acted as a customer and they
merchandise all the garments and distribute it through DC to available for consumers.

Ultimate Buyer:

Consumer (who buys the product for ultimate use) is the most vital point for value chain in
garments industry. All the works have been done for meeting the consumer needs. In this supply
chain, there is another part that provides the service & worked as helping hand for the
manufacturing organization.

Service Provider:

Bank, washing centers, printing centers are the service provider.. The entire service providers also
act as a vital part in the value chain. Because all the banks are related with LC, export-import
process, washing plants use for washing the garments, all the printing centers works for printing
design or logo label in the garments.

5|Page
Supply Chain Management in RMG sector of Bangladesh:

(Lam and Postle , 2006) have reviewed the concept of supply chain management in textile and
apparel supply chain management in Bangladesh. They discussed the strengths and problems faced
by the Bangladesh textile apparel supply chains. They argued that Bangladesh apparel industry is
generally not aware of the concept of supply chain management and industrial benchmark for both
manufacturing and retailing industries in Bangladesh (M.S Islam, 2012). (Nuruzzaman and
Rafiq , 2005) took an attempt to develop more effective supply chain for Bangladeshi RMG to
enjoy competitive advantage in the global apparel business through analyzing the current supply
chain and investigating the relationship among the players in the supply chain (Nuruzzaman, A.
Haque and R. Azad, 2010)

(Islam, 2013) analyzed that apparel supply chain matters such as new orders, raw materials supply,
production processes and logistics related to finished goods delivery by using efficient supply
chain process and also mentioned that Bangladesh garment industry improvement is desired in
reducing the supply time required to produce and fulfill the orders placed by foreign companies.
His findings is using modern fast and effective machinery can reduce time taken to deliver the
order. (Saiful and Noorul, 2013) analyzed the approach is to compile the supply chain
management of the Bangladesh garment industry seriously. In the RMG sector, the supply chain
management is more complex owing to characteristics of global supply chain (SC). In the global
supply chain, crossing borders nearby supply with a multiplicity of general obstructions to
intercontinental business: tariffs, nontariff obstructions, switch over rates and differences in
product necessities, consumer savors and business observes. Borders also present some
impediments in transportation services, which are very common for RMG sector in Bangladesh.
Manufacturers, suppliers, and buyers all stages of supply chain in the RMG sector are
decentralized. Different stages of supply chain have conflicting goals and objectives (S.I. Tanvir
and N. Muqqadim, 2012).

Asgari and Hoque (2013) examined the opportunity that lies in an integrated supply chain to
provide a competitive advantage to the Bangladesh RMG sector. A system dynamics approach has
been used to identify the dominant variables of supply chain performance such as enablers,
performance or results, and inhibitors in the RMG sector. Since the end consumers of the apparel

6|Page
fashion market are becoming increasingly time-sensitive, a decrease in lead-time, besides quality
and cost criteria, is needed to win more orders from buyers. (B. Asgari and M.A. Hoque, 2013)

Concept of Lead-Time in RMG Sector of Bangladesh:

Lead-time is the duration between the start and ending of a process. Within lead-time, every
necessary activity is carried out to fulfill a consumer demand and ultimately brings the product
within the consumers reach (Elsmar, 2013). It includes the elapsed time that starts at the moment
an order is placed and the moment when the goods are delivered to the final destination (Chopra,
2010; Nuruzzaman & Haque, 2009; Christopher, 1998). In the case of the Bangladesh RMG,
we have been informed by the respondents and experts’ opinions that lead-time is mentioned
nowhere in the order confirmation paper. Rather it is implied by two dates; 1. Order
issue/confirmation date and 2. The shipment date. The time gap between these two dates is treated
as lead-time in the Bangladesh RMG business. The lead-time in this case is somewhat different
from that, which is described by Chopra (p.317, 2010) and Christopher (p.157, 1998). Chopra and
Christopher included shipment time into the lead-time equation however, the Bangladesh RMG
does not account for that factor. This factor is considered and dealt with by the merchants from
Europe and the Americas rather than the garment manufacturers in Bangladesh.

Nuruzzaman & Haque (2009) and Antonin (2013) have divided lead-time into two parts such as
“information lead time” and “manufacturing lead time”. Information lead-time includes the time
when correspondence between buyers and the RMG factory merchandisers takes place to negotiate
about the garments quality, color break down, cost/price per unit, order quantity and required
delivery date. Order lead-time can be defined as starting immediately after the order issue date and
spanning up to the last shipment date, in general, at the Chittagong sea port. During manufacturing
lead-time, factories source/buy fabrics, the main raw material, either from local markets or
outsource from China, India, Pakistan, Sri Lanka, Indonesia or other countries. Sourcing fabrics is
a major consuming factor in the RMG business and it has included in order lead-time. Order lead-
time plus shipment time is the replenishment lead-time for the overseas merchants who procure
garments from Bangladesh. The less replenishment lead-time is allowed, the more pressure there
is on every supplier in the supply chain, which is a source of competition among manufacturers
(Nuruzzaman & Haque, 2009; Christopher, p.149, 1998). However, any company who can supply
with a shortened lead-time will increase sales as this gives rise to positive customer response.

7|Page
Another reason for shorter lead-time need is the safety inventory, which is an idle investment of
capital. If lead-time can be reduced by “X” percentage then the safety inventory will be reduced
by •X (Chopra p.326, 2010). Many merchants, including Wal-Mart (Chopra p.326, 2010) are
demanding the delivery of garments within a short lead-time to reduce their investment in safety
inventory in order to minimize idle capital in the business.

Considering expert opinions gathered through phone-discussions, we have identified the key
activities that are carried out during order lead-time by garment companies in Bangladesh. At first,
RMG companies import fabrics from overseas countries, mainly from China, India, Pakistan,
Indonesia, Sri Lanka, Thailand, or buy from local producers in Bangladesh, then manufacture the
garments according to the merchant requirements and, finally, ship out at the Chittagong seaport.
Therefore, Bangladesh factories mainly have the following components in lead-time:

For Bangladesh Garments in general:

Lead-time =Fabric manufacturing time+ time to import fabrics+ fabric inspection / other
processing + Garments Manufacturing (cutting, sewing, washing, finishing and packing) +
Garments Final Inspection and sending to Chittagong sea port + buffer time (woven garments)

Lead-time= 25+ 28 +7 + 20+5+5= 90 days

Lead-time = manufacturing time of fabrics+ manufacturing time of garments (knit garments).

8|Page
 Chapter-3: Research Methodology

3.1. Data Collection:

As this research was exploratory in nature, the report has been written based on both the primary
as well as from the secondary information. The details of these sources are highlighted below:

Primary Sources: Primary data were the collected data directly from the officials. I have
discussed the aspect of the relative supply chain activities to the related executive official
and used their responses as primary data. In addition, the author is having an internship in that
organization in supply chain department. This department controls all the supply chain activities.
The authors working experience is also a source of my primary data in this report.

Secondary Sources: The secondary data were, company’s yearly business review report,
marketing report, annual budget, in-house training material, company manual, internal
meeting minute, text book, journals and information from internet.

3.2. Research Design and Philosophy:

The research is designed in such a way that the reader of this can easily get an idea of the entire
message of the report very easily. Here the data that are used to complete the research are
collected from the both primary and secondary source. There only qualitative data is used to
climb the stair of the decision because of the nature of the subject itself. The research philosophy
followed here is pragmatism philosophy. Pragmatism is a rejection of the idea that the function of
thought is to describe, represent, or mirror reality. Instead, pragmatists develop their philosophy
around the idea that the function of thought is as an instrument or tool for prediction, action, and
problem solving. Pragmatists contend that most philosophical topics. Such as the nature of
knowledge, language, concepts, meaning, belief, and science are viewed in terms of their practical
uses and successes rather than in terms of representative accuracy. (Baert, P. 2004)

9|Page
 Chapter- 4: Company Overview

4.1. About the Company:

The company started their business with SSML (Shamsuddin Spinning Mills Limited) but they
could not sit contended with the impressive success of SSML alone. The urge was more for vertical
integration, that is, to convert our own quality yarn into magnificent end-products of knit garments.
This led to the birth of Karooni Knit Composite Limited (KKCL), which went into production in
2006 as a 100% Export Oriented Knit Composite unit.

KKCL virtually consists of five different units under one roof. These are knitting unit, Dyeing &
Finishing unit (both tubular & open width) and Cutting & Sewing unit which produces the ultimate
end products of knit garments. KKCL has its own printing and embroidery facilities. Besides,
logistics and utility sections render integrated support services while their own power generation
10 | P a g e
unit ensures uninterrupted supply of electricity. In KKCL, state-of-the-art brand new machinery
have been installed that enables to make diversified high quality and sophisticated knit wears. They
have also assembled capable managers, technical personnel and engaged skilled men & women
behind the machines. Expansion and modernization of the project with innovative technologies is
a continuous process that helps them to meet the growing demands of a fast changing fashion
world.

To them, making apparel is more of an art involving human touch and imagination rather than
merely few mechanical operations. Since the group has its own spinning mills, the KKCL has total
control over the entire manufacturing process, from spinning of yarn to apparel making and
packing. For them, making apparel is more of an art involving human touch and imagination rather
than merely few mechanical operations. Since the group has its own spinning mills, the KKCL has
total control over the entire manufacturing process, from spinning of yarn to apparel making and
packing.

4.2. Basic Information:

Name of the Company Karooni Knit Composite Ltd.
Year of Operation 2006
Manufacture 100% Export Oriented Knit Garments
Management Mr. Md. Kutubuddin Ahamed – (Managing
Director)
Mr. Mesbahur Rahaman Khan – (Deputy
Managing Director)
Mr. Mohammad Shamim Ahmed - Executive
Director (Finance and Commercial)
Contact Person Mr. Md Abraruzzaman Diamond - Executive
Director (Factory)
Product Fabrics:
Single Jersey, Lycra S/J, Pique / Lacoste,
Lycra PQ, Fleece (UN Brushed), Interlock,
Mesh Interlock, Drop Needles, Ribs, Flat
Back, Rib, Flat Knit Collar & Cuff

11 | P a g e
 Garments:
Kids´ Garments, T- shirt, Trouser,Polo-shirt,
Jacket, Tank Top, Ladies dress, Sweat shirt
etc.
Installed Production Capacity per month 25,00,000 Pcs
Bankers i) AB Bank Ltd.
Motijheel Branch, Dhaka-1000
ii) Shahjalal Islami Bank Ltd.
Gulshan Branch, Dhaka.
iii) National Credit and Commerce Bank Ltd.
Gulshan Branch, 51 Gulshan Avenue
Circle-01, Dhaka-1212
Head Office Symphony
West Block, 4th Floor, Plot – S.E (F)-9 Road
– 142 Gulshan-1, Dhaka-1212
Tel:+880 2 985980-83, Fax : +880 2 985980
Email: [email protected],
Web : www.karooni.com
Factory Ratanpur, Shafipur, P.S : Kaliakoir, Dist :
Gazipur
Postal code:1751, Bangladesh
Annual Turn Over US$ 55.00 million
Employees 4000 persons

KKCL virtually consists of five (5) different units under one roof. These are;

 Knitting unit, capacity-1,100 mt / month

 Dyeing & Finishing unit (both tubular & open width), capacity-1,100 mt / month
 Cutting & Sewing unit, capacity-2.20 million pcs / month
 Embroidery unit, spacification-20 head 9 color with sequin & cording device-3 nos.

12 | P a g e
  Printing unit, capacity-1.00 million pcs / month (LxW-90’ x 5’) – 6 nos.

These units ensure the ultimate end-products of knit garments as per customer’s requirements.
Besides, Logistics and utility sections render integrated support services while our own power
generation unit ensures un-interrupted supply of electricity.

In the KKCL, state-of-the-art brand new machineries have been installed that enables us to make
diversified high quality and sophisticated knit wears. We have also assembled capable managers,
technical personnel and engaged skilled men & women behind the machines. Expansion and
modernization of the project with innovative technologies is a continuous process that helps us
meets the growing demands of a fast changing fashion world. For us, making of apparel is more
of an art involving human touch and imagination rather than merely few mechanical operations.
Since the group has its own spinning mills, the KKCL has total control over the entire
manufacturing process, from spinning of yarn to apparel making and packing.

4.3. Mission and Vision:

Karooni’s Mission and Vision is- “We strive to attain our vision by practicing corporate
governance, empowering and inspiring our associates, being transparent in our work process,
continuously developing expertise, meeting & exceeding customer needs, demands &
expectations, maintaining quality & consistency of our products & services, engaging with
community, caring for environment and maintaining networks with our global partners.”

4.4 Goal and Objective for Higg Index:

Objectives: Karooni knit Composite limited is a 100% export oriented knit composite industry in
Bangladesh. To be strategic business partner of our customers, Karooni knit Composite Limited
always given preference to sustainable development and concern about customer satisfaction.
Karooni knit Composite limited also preferred on sprit of the ethical business behavior in the
industry. To comply all those things Karooni knit Composite limited has set the goal strategy to
ensure sustainable development in terms of compliance.

Commitment: To achieve highest customer, employee and others stakeholders satisfaction

Karooni knit Composite limited committed to confirm the social compliance & legal requirements
in its all business process. Also committed to provide adequate resources and trained workforce

13 | P a g e
for implementing the requirements of all customers as per applicable local law & buyer’s Code of
Conduct.

Goals: The management of Karooni knit Composite limited is dedicated to continuous

improvement of its social & environmental areas and will achieve targeted score by confirming
the requirements as per HIGG Index within the year of 2022, which are as following.

4.5. Eco Friend Responsibility:

While their all units are duly set & build on their own land, they preferred to keep space for
‘greener’. That surrounded all-around their units by lot of green tress and open space for air &
nature wind as well as they can say; it is completely various kind of birds living zone that secured
by our present structural design for spectacular lush green surroundings. For all units’ wastage
water including dyeing, there is a ETP (Effluent Treatment Plant) which is capable to flow water
around 6,000 M3 / day with standard equipment and accessories and disbursement into natural
land. In addition, another two (2) WTP project is under construction, which is consisting around
4,800 M3/day and 2,400 M3/day.

4.6. Welfare Policy:

Welfare activities remain a corner stone of our management policy. We ensure that a safe, healthy
& environment-friendly working condition prevails in the factory premises.

 Medical Centre: Full time medical center operates to cater to the needs of the workforce.
 Baby Care Facilities: Baby care facilities are provided to children of workers/staff who
need this service during work hours.
 Canteen: The canteen caters to the requirements of workers/staff.

14 | P a g e
  Life Insurance Group Policy: We ensure each of the executive-officials ‘Life-Insurance
Group Policy’ for safe, healthy & better life during their service prevails in this
organization.

4.7. Certifications:
KKCL possesses the following certification to maintain the high-class standards in regards of
compliance:

 OEKO-TEX standard 100

 ISO 9001:2008
 BSCI
 GOTS (CONTROL UNION CERTIFICATION-CUC-ORGANIC)
 SEDEX

4.8. Sister Concerns:

Sister concerns of Karooni are:

 Shamsuddin Spinning Mills Limited (SSML)

 KNS Rotor Mills Limited
 Karooni Fashion Limited (KFL).
 Karooni Yarn Dyeing Limited (KYDL).

15 | P a g e
4.9. Clients of Karooni:
Clients of Karooni are-

Among them Zara and H&M are the big clients of Karooni. Almost 70% of their orders come
from both of these clients.

4.10. Product Range:

 Basic T-Shirt: 20 million Pcs/Month
 Tank-Top: 50 million Pcs/Month
 Basic Sweat-Shirt: 20 million Pcs/Month
 T-Shirt with 3 Button Fasteners: 05 million Pcs/Month
 Women’s Fancy Top’s: 00 million Pcs/Month
 Polo Shirt: 00 million Pcs/Month
 Hoodie Jacket with Kangaroo Pocket: 00 million Pcs/Month
 Romper with Snap Button: 00 million Pcs/Month
 Women’s Night-Wear: 20 million Pcs/Month

16 | P a g e
 Basic Pajamas: 20 million – 1.00 million Pcs/Month (Without Pocket & With Pocket)
 Women’s Sleeping-Gown: 00 million Pcs/Month
 Basic 4/5 Pocket Knit Pant: 95 million Pcs/Month

17 | P a g e
Chapter- 5: Production Process of a RMG Manufacturing Industry

5.1. Three Decision Level:

Successful supply chain management requires many decisions relating to the flow of information,
product, and funds. These decisions fall into three categories or phases, depending on the
frequency of each decision and the time frame over which a decision phase has an impact.
(A.K.M.N. Huda, B.B Pathik and M.M. Habib, 2014)

Figure: Decision Phase in Supply Chain Management (Antonio and Ruben, 2018)

Strategic Level: Strategic level decisions are the highest level. Strategic level decision concerns
general direction, long-term goals, philosophies and values. These decisions are the least structured
and most imaginative; they are the most risky and of the most uncertain result, partly because they
attain so far into the future and partly because they are of such significance.

Planning Level: Planning level decisions support strategic decisions. They tend to be medium
range, medium importance, with moderate outcomes. These decisions are tactical planning, and
they have a shorter life than level-one decisions. Detailed information is available, and the data

18 | P a g e
probably are very reliable. Level-one decisions constrained these decisions with some flexibility
to account for sudden change in data. Quick response is nice to have, and occasionally a
requirement at this level. Example: One that needs to commit priority orders and obey
commitments made in level one. (M.S. Islam, 2012)

Operating Level: Operating level decisions are every day decisions, used to support planning level
decisions. They are often made with little thought and are structured. Their impact is immediate,
short term, short range, and usually low cost. The outcomes of a bad operating level decision will
be minimal, although a series of bad or sloppy operating level decisions can cause harm. These
decisions. can be pre-programmed, pre-defined, or setout clearly in policy manuals.

5.2. Production Process in Garment Manufacturing:

Garment manufacturing includes number of processes from order receiving to dispatching
shipment of the finished garments. A process flow chart helps to understand how raw materials
are moved from one process to another process until raw materials are transformed into the desired
product (garments). To be noted that a process flow chart made for the garment manufacturing
processes will vary based on manufacturing facility and product types. But here we tried at our
best to make a generalized process flow charting which most of the garments following and can
be easy to realize for reader of this report. Based on present apparel industry, garment-
manufacturing processes are categorized into three phases-

 Pre-production process
 Production process and
 Post production process.

5.2.1. Pre-Production Processes:

Pre- production process includes sampling, sourcing of raw materials, Approvals, PP meeting etc.
In pre-production process develop sample as per buyer requirement and also take approval from
buyer for bulk production. In this stage, garment factories also source the material from local or
international market. (Clothing Study, 2014)

Order Receive: Garments manufacturer received Purchase order (PO) from buyer like H&M, Zara
and other RBO’s. All the information is which are required for garment manufacturers are in PO
like size, barcode, department name etc.

19 | P a g e
Strategic Planning: In this stage management level working with planning for human labor,
building, machineries and material management to ensure the best use of it. In strategic planning
level, management team decide how many garments will produce in a certain time period, and how
many labor and machines will be used for production.

Sample Development: In sample development stage merchandising department working to prepare

sample as per artwork provided by the buyer. When sample development completed and
merchandising department send the sample to buyer for approval. Different steps i.e. sample
development; Pre-production sample, Pre-production sample etc. are related to sample
development process.

Material Sourcing: in this stage material should be source as per strategic plan from domestic or
international market and in-house in warehouse. In perspective of Bangladesh RMG sector most
of the procurement will be done from international market. It is one of the most important part for
a garments factory.

Material In-house: Fabric, Non fabric, trim and other accessories items are in-house or stored as
inventory. After material in-house, it will be checked as the physical quantities are matched with
booking quantity.

5.2.2. Production Process:

Production processes are cutting, sewing, finishing etc. Production process means all the raw
materials in your store and you can go for bulk production of garments. So material in-house is the
per requisite for starting production.

 Cutting: In this stage fabric items are cutting as per garments requirement. Top and bottom
part of the garments should be in different cutting process and different types of machines
are need for cut the fabric.
 Sewing/Weaving: All the cutting fabrics are sewing in this stage and fix up with each other
to produce a full garment. All the sewing process done in the different production line.
 Washing: Washing is one of the vital point for a garment because washing need to soften
and maintain the color quality of the products. But some garments do not need washing.
At most 80% percent garment need washing

20 | P a g e
  Finishing: It is the final stage of production process. In this process all the accessories are
sewing or attaching with the garments. In this stage garments are attached with swing item
and ready for packing.

5.2.3. Post Production Process:

Thread trimming, pressing, checking, folding and packing, shipment inspection on etc are the part
of post-production process. (Online Clothing Study, 2014). Mainly thread trimming, packing,
warehousing and shipment dispatch process have been done in this step.

 Packing: In packing stage, all the garments are packed and finally quality check for
shipment. Pressing, checking, folding and packing are the parts of this stage.
 Warehousing: Warehouses are generally used by manufacturers, importers, exporters,
wholesalers, transport businesses and customs for storage the goods/inventory. In the
warehouse, all types of raw material, finished goods and accessories items are stored in the
warehouse. All the ready garments are send to the central warehouse for shipment.
 Shipment Audit: Shipment audit is done by the third party quality checker or buyers direct
quality checker which appointed by buyers to check whether all the garments are ready
based on PO. This part is mostly crucial part for a garment factory because for shipping
the garments, a garment factory must be passed in shipment audit.
 Dispatch for Shipment: Inventories which in central warehouse are consecutive dispatched
for shipment. Goods can be dispatched by air, train or sea. But in Bangladesh perspective
goods shipped by most of time in by sea. In case of emergency goods can be shipped by
air to avoid any sort of claim by buyer.

21 | P a g e
Figure: Production flow chart of RMG
22 | P a g e
 Chapter- 6: Supply Chain Process of Karooni Knit Composite
Limited

In RMG Sector, all the Bangladeshi garment companies are working as subcontractor. Karooni
Knit Composite Limited (KKCL) is also same. Generally, they are performing cutting, making
and trimming (CMT) activities. The RMG industry is highly dependent on imported raw material.
Karooni imports yarn from the outside and make garments for export. Therefore, it takes maximum
lead-time to process an order. In Bangladesh, the lead-time for apparel export varies between 90-
120 days. The Supply Chain Process of Karooni can be divided into three phases for better
understanding. A figure will be also given bellow to show the phases. These phases are-

 Input
 Process and
 Output.

6.1. Input:
These are the raw materials for starting the supply chain process of a garments. They are-

Yarn Item: This is the first item, which is required by Karooni to start their process. Yarn of
different qualities and different counts are sourced according to the buyers requirements. Most of
their buyers have their recommended spinning mills. From there Karooni collects the yarns for
starting their knitting process.

Non-Fabric Item: There are many non-fabric items, which are need for production like Chemicals,
Auxiliaries, Dye stuffs, Re agents, Detergents, Salt, Acetic Acid, Soda, flash spun fabric, Trims,
Marker Paper, Pattern Papers etc. Non-fabric items are accessories and packaging material.

Human Resources: Human resources put into input system because it found that human capital
need for production of garments. Almost 4000 employees are working at Karooni.

Building & Machineries: Building and machineries are facilities for RMG sector and it works as
an input. Karooni is also indifferent to it. Most of the production process need building or
machineries and every production process building and machineries are depreciate. More then 140
machines are present in KKCL. The front side Knitting Building is seven storied, Knitting is

23 | P a g e
section in the ground floor. The upper flows are consists of cutting, sewing and finishing sections.
The dyeing unit is in another part which is divided into two portion Dyeing and Finishing.

6.2. Process:
Process is a continuous action, operation, or series of changes taking place in a definite manner.
In process system, it found that main mechanism is executed to produce a garment. There are some
steps in the process flow.

6.2.1. Knitting:

This is the first process where the yarns are turned into suitable fabrics according to the buyers
requirements. Except the Jacquard and Auto stripe all types of knit fabrics are produced in the
knitting section of Karooni. The fabrics which are mostly produced in Karooni are- Single Jersey,
Pique, Rib, Interlock, Fleece and KD. There are 24 Single Jersey Machines, 4 Rib/Interlock
Machines and 2 fleece machines. The production capacity of the knitting section is 12 ton per day

and actual production is 10 tons per day.

24 | P a g e
6.2.2. Dyeing and Finishing:

After the required fabric is produced then it is send to the grey storage section. When the grey
storage section receives the fabric they made a booking in the batch section and next the fabrics
goes to the batch section. From the batch section it goes to the dyeing section. In the dyeing section
the fabrics are dyed in batch wise. It depends on the color, amount and type of the fabric
constructions. When the dyeing Process is done it goes to the finishing section for the required
treatments asked by the buyer. When the finishing is done it goes to the storage section and from
there to the cutting and sewing section. The capacity of the Dyeing units are 20 tons each.

25 | P a g e
6.2.3. Cutting and Sewing:

According to the batch and plan wise the finished fabrics comes to the cutting section. In the cutting
sections finished fabrics are cut into the suitable shapes for the further steps. If there is no
additional requirements by the buyers then this cut fabrics are send to the sewing section to their
buyer wise. There are separate sewing sections for H&M and Zara and for the other clients. If
printing is required for an order. Then that batch is send to the printing section after

Cutting is done and then to the sewing section. Most of the printing task of the buyers are
performed in the outside of the plant due to the Buyers instruction although Karooni has an all
over printing section of its own.

6.2.4. Assembly and Final Assembly:

In this stage, all the parts of the garment assemble for making a final goods. There are different
types of works are associated in this steps. Every single department works are assembles in this
step to produce a garment. The assemble life is different for each of the buyers and Karooni strictly
follows the systems according to the buyers requirements.

26 | P a g e
6.2.5. Quality Checking:

After final assembly, quality inspectors check the garments. If goods are approved then it will pass
as finished goods or if it rejected then it will go for alteration/repair. This part is very important
for a garment factory because if the quality checking do not maintain the buyer standard then
definitely it will be rejected by buyer QC checking.

6.3. Output:
Output is the amount of goods produced by a garment factory. It is basically, the finished goods
with good quality or the goods, which are rejected.

6.3.1. Finished Goods:

After quality inspection if the goods are passed by quality inspector then all the goods converted
as finished goods like to add swing item and other accessories add with the garment.

6.3.2. Approved or Rejected Goods:

Approved finished goods ready for packing and reject goods again need alter or repair. Approved
or rejected goods depend on different types of criteria which are measures or determine by the
buyer.

6.3.3. Packing:

In this step, all the approved goods packed and ready for final buyer inspection. In this step all the
packaging materials can be used.

6.3.4. Quality Checking:

In this step, buyer QC team or third party QC team designated by buyer check all the packing
goods as per buyer guideline. This step is very crucial for a garment factory because if the garment
QC pass the quality but rejected by the buyer QC then need to do again alter/repair works. So
internal QC check the garments very carefully to pass the quality check of buyer QC.

27 | P a g e
6.3.5. Shipment Audit:

Shipment audit is done by the third party quality checker or buyers direct quality checker which
appointed by buyers to check whether all the garments are ready based on PO. This part is mostly
crucial part for a garment factory because for shipping the garments, a garment factory must be
passed in shipment audit.

6.3.6. Dispatch for Shipment:

If the goods approved by the buyer then all the goods are dispatched for shipment. Goods are
shipped to Chattogram port through covered van or cargo train. And then it is shipped to its
destination via ship. In emergency cases goods are shipped by air.

28 | P a g e
Input:

Yarn Non-Fabric
Items

Human Building/Ma
Resources chineries

Process:

Knitting and Dyeing (Make System 1)

Cutting and Sewing (Make System 2)

Assembly and Finishing

Output:

Finished Goods

Approved Goods Rejected Goods

Packing Repair

Warehouse

Shipment Audit

Shipment Dispatch

Figure: Supply Chain Management of KKCL

29 | P a g e
 Chapter- 7: Lead-Time Management of KKCL and Calculation

Lead-time is the time, which starts from the receiving of an order until the order is delivered to the
customer or to the shipment. It is like starting a stopwatch from the receiving of an order an stop
it when the product is delivered. Calculate the time within and we will have the lead time of that
product or service. For KKCL it is also the same. It starts when the merchandising department
receives the PO order from the buyer then they make a time and action plan or calendar for each
steps to complete the order and try to maintain it until the shipment of the order is done. Following
are some of the time and action calendar of two styles of O’STIN, one of the buyers of KKCL.

Picture: Time and Action Calendar of Style BT4X46 (Boys Tee) of O’STIN.

For this style, the lead-Time is 56 days from the calculation of order receive to order dispatch.

30 | P a g e
 Picture: Time and Action Calendar of Style BT7X22 (Boys Polo) of O’STIN

For this style, the lead-time is 53 days from the calculation of order receive to order dispatch.

31 | P a g e
Following will be the lead-time calculation for H&M.
Buyer Name: Order Number: 282433-6645 Style: (Elis) Fabric
H&M Construction:
Single Jersey, 150
GSM
Steps Start Date Finished Date Duration (Days)
Order Received 5-Feb-2020 12
Knitting 17-Feb-2020 19-Feb-2020 2
Grey store 19-Feb-2020 19-Feb-2020 0
Batch 19-Feb-2020 20-Feb-2020 1
Dyeing 20-Feb-2020 22-Feb-2020 2
Finishing 22-Feb-2020 26-Feb-2020 4
Garments Store 26-Feb-2020 27-Feb-2020 1
Cutting Section 27-Feb-2020 27-Feb-2020 0
Printing 27-Feb-2020 29-Feb-2020 2
Sewing 29-Feb-2020 1-March-2020 2
Finishing, 1-March-2020 3-March-2020 2
Inspection and
Dispatch

Here, Total days = (12+2+1+2+4+1+2+2+2) = 28 days

Weekends and Holidays = 4 days
Therefore, Lead-Time = (28-4) days = 24 days
So, the lead-time is 24 days for the order number: 282433-6545 style: Elis.

Buyer Name: Order Number: 283214- Style: Mike Tee Fabric

H&M 5848 Construction:
Single Jersey,
150GSM
Steps Start Date Finished Date Duration (Days)
Order Receive 11-Feb-2020 7
Knitting 18-Feb-2020 18-Feb-2020 0
Grey Store 18-Feb-2020 18-Feb-2020 0
Batch Section 18-Feb-2020 19-Feb-2020 1
Dyeing 19-Feb-2020 20-Feb-2020 1
Finishing 20-Feb-2020 23-Feb-2020 3
Garments Store 23-Feb-2020 24-Feb-2020 1
Cutting Section 24-Feb-2020 24-Feb-2020 0

32 | P a g e
 Printing 24-Feb-2020 26-Feb-2020 2
Sewing 26-Feb-2020 29-Feb-2020 3
Finishing, 29-Feb-2020 3-March-2020 3
Inspection and
Shipment

Here, Total days = (7+1+1+3+1+2+3+3) = 21 days

Weekends and Holidays = 3 days
Lead Time = (21-3) = 18 days.
Therefore, the lead-time for the order 283214-5858, style: Mike Tee is 18 days.

Buyer Name: H&M Order Number: Style: Miles SS Price Fabric Construction:
283143-8748 Single Jersey, 150
GSM
Steps Start Date Finished Date Duration Days
Order Received 12-Feb-2020 7
Knitting 19-Feb-2020 19-Feb-2020 0
Grey Store 19-Feb-2020 22-Feb-2020 3
Batch Section 22-Feb-2020 22-Feb-2020 0
Dyeing 22-Feb-2020 23-Feb-2020 1
Finishing 23-Feb-2020 24-Feb-2020 1
Garments Store 24-Feb-2020 25-Feb-2020 1
Cutting Section 25-Feb-2020 25-Feb-2020 0
Printing 25-Feb-2020 29-Feb-2020 4
Sewing 29-Feb-2020 1-Mar-2020 1
Finishing, Inspection 1-Mar-2020 3-Mar-2020 2
and Shipment

Here, Total Days = (7+3+1+1+1+4+1+2) = 20 days

Weekend and Holidays = 3 days
Lead-Time = (20-3) days = 17 days.
Therefore, the lead-time for the order number 283143- 8748 style: Miles SS Price is 17 days.

33 | P a g e
 Chapter- 8: Analysis and Findings

From the analysis of the data from the previous chapters, followings are some findings regarding
the supply chain management and lead-time management of KKCL.

1. For H&M, the lead-time is much shorter than the lead-time in cases for the O’STIN. It is because
the steps for the order received to dispatch of the orders for H&M consists of less number of steps
than the O’STIN.

2. Another Point is when the author talked with the merchandising department regarding the
shorter lead-time for H&M and comparatively longer for O’STIN; they told me that it varies
according to the buyer’s requirements and their responsiveness to their customers. In case of,
H&M, they are very responsive towards their customers and want to bring new styles as soon as
possible for their customers. Which leads them to pressurize more to their factories to make their
items as quickly as possible which results in a shorter lead-time. Generally, the lead-time for H&M
product is 21 days. Whereas for O’STIN they are not too much in a hurry and they are happy to
have their products within 60-75 days. The merchandising team also told me that it is possible for
them to make a product within 7 days if all the necessary raw materials are available.

3. For both the orders of O’STIN which are BT4X46 (Boys Tee) and BT7X22 (Boys Polo) have
been dispatched to their shipment on time. The lead-times were 56 days and 53 days respectively
which was usually shorter than their normal lead-time of 60-75 days. Mr. Firuz, a merchandiser
who is assigned for managing the orders form the O’STIN told me that in most of the cases, it
requires 90-120 days for completing an order for O’STIN but for these two orders it was quicker
due to the requirements of the buyer.

4. For H&M, Order Number: 283214- 5848 (Mike Tee) and Order Number: 283143-8748 (Miles
SS Price) were completed well ahead of their time. They took 18 days and 17 days of lead-time
respectively. The yarn they required to knit these products were made available quickly which lead
them a head start. For Mike Tee it required 3 days in the finishing section because it needed an
extra finishing section according to the buyer’s requirement. In case for Miles SS Price there was
delay in the printing section. The Printing task of the H&M buyers are done in the outside KKCL.
They took some time because that outbound printing section was having trouble to maintain their

34 | P a g e
order on time due to their busy schedule. Though it took some time, in the end the first lot of the
shipment was made on time.

5. For order number: 282433-6545 (Elis) it took 24 days of lead-time. It is longer than the lead-
time required for completing an order of H&M which is 21 days. The author try to find some
reasons why the order was delayed and witnessed some issues. The yarn, which was required to
make the bulk fabric, was not available on time. It took more time to outsource the yarn from the
spinning mills. The knitting machine was not made booked on time which is also a process of
delay. Elis needed to types of fabric to process the order. The colors were yellow and light yellow.
The yellow fabric was made on time but the second on the light-yellow fabric needed special type
of yarn, which took extra time to source the yarn and then made it. As a result, it took more time
and was not shipped on time. In fact, the second cut off was shipped first instead of the first cut
off due to the lack of yarn.

6. The factory is quite big and approximately 4000 workers have been working in this factory.
However, there is a lack of coordination among the team members, which lead them to cause some
delay of orders.

7. The supply chain department of the company works from the head- office. Therefore, some
lackings remain in this department.

8. KKCL has established a training facility for the new garments worker to learn their specific job
before joining. There is also an opportunity for a garments worker to learn about other machines
and can switch their current department.

9. The information passing from one department to another department requires time because there
is no database management system is working in this factory. The factory is still relied on the
notebook records made on hand which is time consuming for collecting data or for knowing about
the inventory.

35 | P a g e
 Chapter- 9: Recommendation and Conclusion

9.1. Recommendations:
Following are some recommendations, which the author like to recommend and suggest KKCL to
improve their supply chain and lead-time management.

1. Team work needs to be improved by following effective team work guidelines to get the
maximum benefit from supply chain activity.

2. Co-ordination among various functional area of supply chain department need to be upgraded
through proper planning and strong communication system.

3. Electronic Data Interchange (EDI) can be implemented to increase productivity, reduction of

lead-time, inventory reduction, increase accuracy and facilitation of JIT.

4. They need to establish a supply chain department also in the plan to monitor the supply chain
management practices at KKCL and to give training to others.

5. Implication of benchmarking tool for the improvement overall production and supply chain
management.

6. Using supply chain software for better inventory management and execution. There are two
types of supply chain software, planning software and execution software. This software is
available for renting by different organizations in Bangladesh. Karooni Knit Composite Limited
can easily rent the software from these organizations to improve their Supply Chain Management
effectiveness.

7. KKCL is planning to imply Total Quality Management in their factory, which is a very good
plan indeed. But they need to imply it as soon as possible.

8. The R&D department working in the factory is quite small. By establishing, a strong R&D
department will give the factory an advantage for developing prospective and better quality
products for the future.

9. Motivation among the employees need to be ensured through providing various incentives to
get the best output from the human resource pool.

36 | P a g e
10. Transportation facilities need to be developed to increase the required demand.

9.2. Conclusion:
Supply chain encompasses all the activities of various parties involved in value chain activity that
is all required function to make a product/rendering service. A chain is as strong as all its rings
are. A chain is as weak as one of its ring is weak i.e.one single ring is more than enough to make
the whole chain system dysfunctional. With the development of the service sector and
enhancement of industrial wage, cutting and stitching operation was shifted to more profitable
destinations. In the value chain of the textiles business, production lies at the bottom, whereas this
is the most critical and complex part of the business. Services like research and development,
design, purchasing all these pre-production intangible functions and marketing, distribution, sales,
etc. postproduction intangible activities in textiles business carry a higher value than production -
only tangible activity in the business chain. In the global value chain as a manufacturer,
Bangladesh performs the lowest value retention functions. Textile industry in our country so far
has been enjoying very clear price competitiveness. The rate of minimum wage in our country is
still lowest among our competitors. But we have huge pressure on lead time. Without proper
management, in supply chain, only wage competitiveness can’t ensure a sustainable business. So
in present day’s situation, undisrupted supply chain and proper planning can enhance our market
share undoubtedly It is very demanding and pressing issue in the dynamic business world. It is a
distinguishing factor for national and multinational company for outstripping the other company
and for retaining leading edge in the extreme competitive business era as well as dominating the
world market. To get the toughing edge in the world textile/garment market and meet the vision,
KKCL must escalate and sustain the supply chain activities through sustaining effective and
efficient supply chain management system that covers proper planning, coordination and
collaboration among the various parties.

Through strong database and communication, system involved in supply chain process, which is
maintained to meet customer satisfaction, KKCL need to think about it and imply it as soon as
possible.

37 | P a g e
 References
1. “Export of RMG from Bangladesh”, Internet: www.bgmea.com.bd, [Access: 10 July, 2014]

2. M.S. Islam., “Supply Chain Management on Apparel Order Process: A Case Study in
Bangladesh Garment Industry”, Asian Journal of Business and Management Sciences,Vol. 2, No.
8, pp. 62-72, 2012.

3. S. Chopra, P. Meindl, and D.V. Kalra “Supply Chain Management-Strategy, Planning and
Operation”, Pearson, India, 4th Edition, pp-3-578. ISBN: 978-81-317-3071-3

4. Nada. N. Sanders, “Supply Chain Management A Global Perspective”, 2nd Edition.

5. Nuruzzaman, A. Haque and R. Azad, “Is Bangladeshi RMG Sector Fit in the Global Apparel
Business? Analyses the Supply Chain Management”, the South East Asian Journal of
Management, Vol. IV, No.1, April 2010, Indonesia.

6. S. I. Tanvir and N. Muqaddim, “Supply Chain Management Offering the New Paradigm for
Bangladesh Garment Industry”, Journal of Economics and Sustainable Development, Vol. 4, No.
20, 2013. ISSN: 2222-1700 (Paper) ISSN: 2222-2855 (Online).

7. B. Asgari and M. A. Hoque “A system dynamics approach to supply chain performance

analysis of the ready-made-garment industry in Bangladesh”, Ritsumeikan Journal of Asia
Pacific Studies, Volume 32, 2013, Japan.

8. N. Md., "Developing Export of RMG products in Bangladesh: Analyzing the Lead time”,
Management Trends, Vol.4, No.1, P- 1

9. A. K. M. N. Huda, B. B. Pathik, A. A. Mohib and M. M. Habib, “Structuring Supply Chain

Model for JMI Group: A Case Study”, in Proceedings of the International Conference on
Innovation Driven Supply Chain 2014, Malaysia, 26-28 March 2014. ISBN: 978-983-43522- 2-
6.

10. P. Habib, “A Research Framework of Supply Chain Management of RMG industry”,

International Journal of Business and Economics Research, 2014.

38 | P a g e
11. Md Aynul Hoque and Behrooz Asgari “Lead-time management in Bangladesh garments
industry: A system dynamics exploration”, 2013

12. http://karooni.com/karooni-knit-composite-ltd/

13. “Pre-Production Process”, Internet: www.onlineclothingstudy.com, [Access: 15 June 2017]

14. “Post-Production Process”, Internet: www.onlineclothingstudy.com, [Access: 23 September

2017]

15. Internet:www.fabric2fashion.com, [Access: 22 September 2017]

16. “Bangladeshi RMG Sector:”, Internet:www.wikipedia.org, [Access: 23 September 2014]

39 | P a g e