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Project

Assign by:

Sir Sarmad Irfan

Assign to:

Mehreen Shah

MBA3Y02123058

Subject:

Supply Chain Management

LBS

Uni er!ity "f Lah"re

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Shoes Manufacturer Organization

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Executive summary:

A! a !tudent "f MBA I am !tudying the #"ur!e "f !upply #hain

management$ %"r the under!tanding "f thi! pr"&e#t Sir Sarmad Irfan a!!ign u! a pr"&e#t

in 'hi#h 'e ha e t" i!it a firm and "(!er e the 'h"le !upply #hain and re#"gni)e it!

pr"(lem!$ %"r thi! purp"!e I i!it a !h"e manufa#turing "rgani)ati"n$ I inter ie' the

"'ner and al!" the la("r!$ By analy)ing the data and pr"(lem! I made !"me

re#"mmendati"n! at the end "f thi! rep"rt$

*hi! i! a !mall "rgani)ati"n "f !h"e manufa#turer$ *he !upply #hain "f !h"e

manufa#turer "rgani)ati"n i! re!p"n!i e$ *hey are '"r+ing "n differentiating !trategy$

*hey ha e fe' di!tri(uti"n #hannel!$ *hey are !elling their pr"du#t! 'ithin the limit! "f

Lah"re and ,e!ha'ar$ *hey are d"ing !elf in e!tment$ *hey al!" #"nta#t 'ith the

!upplier! and pur#ha!e ra' material$ *heref"re the ri!+ "f l"!! i! greater$ %"r

manufa#turing pr"#e!!- there are 25 la("r! '"r+ing in the "rgani)ati"n$ *hey are n"t

u!ing any hea y ma#hinery$ *he "rgani)ati"n i! gi ing in#enti e! t" la("r! t" +eep them

l"yal and h"ne!t t"'ard '"r+$ *he demand "f !h"e i! n"t #"n!tant and it arie! e ery

day$ ."n a aila(ility "f ra' material #reate! diffi#ultie! in fulfilling the demand "f mar+et$

*hey ha e many #"mpetit"r!$ *hey are di!tri(uting !h"e! thr"ugh l"#al tran!p"rt$ *hey

di!tri(ute their pr"du#t! t" the !h"e mar+et e eryday$

*he "rgani)ati"n i! fa#ing many pr"(lem! (e#au!e "f le!! #""rdinati"n in !upply #hain$

*hi! i! al!" affe#ting the !upply #hain dri er!$ *he main pr"(lem! are regarding ra'

material and n"n a aila(ility "f ele#tri#ity$ Sh"rtage "f fa#ilitie! #au!e! 'a!tage "f time

and delay in deli ery "f pr"du#t$ %"r the !"luti"n "f all the!e pr"(lem! they ha e t" +eep

a g""d relati"n 'ith the !upplier! and al!" arrange !"me !"rt "f ele#tri# !upply t" a "id

'a!tage "f time$

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Introduction:

Objective of the project:

*hi! pr"&e#t i! a("ut t" i!it the manufa#turing #"mpany and t"analy)e pr"(lem! (y inter ie'!- /ue!ti"nnaire! and "(!er ati"n!$ *he main "(&e#ti e i!

that h"' thi! pr"&e#t 'ill pr" ide u! the "pp"rtunity t" dem"n!trate "ur under!tanding!

and ma!tery "f the #"ur!e material$ e ha e t" analy)e that h"' the pr"(lem! in

!upply #hain affe#t the mar+et #"nditi"n and al!" the pr"du#t

ompany Introduction:

It i! !h"e manufa#turing "rgani)ati"n$ It #"n!i!t! "f 25 empl"yee!$It i! l"#ated in Shei+hupura and '"r+ in a h"u!e$ *hi! "rgani)ati"n made a !h"e

appr" imately in h"ur!$ *hey ma+e 30 !h"e! in a day$ *hey #"nta#t 'ith the !upplier!

"f ra' material and they al!" d"ing !elf in e!ting f"r all the pr"#edure$ After fini!hing the

pr"du#t they are di!tri(uting the!e !h"e! t" the retailer! "f !h"e mar+et "f Lah"re and

,e!ha'ar$ *hey ha e many #"mpetit"r!$ *heir manufa#turing pr"#e!! !tart! a! f"ll"'!$

Cutting

Se'ing 4"f upper !e#ti"n a(" e the !"leSt"#+ fitting 4prepare! the !"leLa!ting 4prepare! atta#hment "f upper t" the !"le6eeling 4atta#he! and !hape! heel ("tt"m t" final f"rm%ini!hing*reeing 4atta#he! a##e!!"rie!

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After the manufa#turing pr"#e!!- the !h"e i! then di!tri(uted t" retailer! and !"ld

t" #"n!umer!$

Introduction of prob!em area:

In the !upply #hain "f !h"e manufa#turer "rgani)ati"n-

the pr"(lem! are related t" ra' material!$ *he pr"(lem i! in !upply #hain dri er!$

S"metime! n"n7a aila(ility "f fa(ri#- metalli#- f"am- pla!ti# and "ther a##e!!"rie! are

ma+ing the pr"#e!! ery !l"' and le!! effe#ti e$ S"metime! the #hemi#al !"luti"n

'hi#h i! u!ed t" !ti#+ all the material! i! n"t a aila(le "r the !"luti"n 'hi#h i! pr" ided

i! n"t '"r+ing pr"perly$ In thi! 'ay !"metime! they are una(le t" fulfill the demand "f

#"n!umer!$

Prob!em bac"ground:

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*he pr"(lem in !upply #hain dri er! "##ur due t" the le!!

#""rdinati"n in !upply #hain$ *he !upplier! are n"t fully #""perating 'ith the

manufa#turer!$ *hey are al!" !elling unfa "ra(le ra' material$ hen the fa#ility "f ra'

material i! p""r then the la("r! #an t '"r+ a##"rding t" the time$ All the!e pr"(lem!

affe#t the 'h"le manufa#turing pr"#e!!$ 9ue t" thi! delay- the demand "f mar+et

#"uldn t fill pr"perly$ *hat ! 'hy after getting the pr"du#t m"!t "f the retailer! refu!e t"

pay the full am"unt$ In thi! 'ay the !upply #hain ha e t" (ear l"!!$

Prob!em ana!ysis:

#ata:

I ha e #"lle#ted data (y inter ie'ing the manufa#turer "rgani)ati"n ! "'ner andal!" (y "(!er ing the 'h"le pr"#e!! "f ma+ing !h"e$ I a!+ed them different /ue!ti"n!

'ith re!pe#t t" the!e part! 'hi#h are a! f"ll"'!:

StrategyIn e!tmentSupply #hain dri er! 4%a#ilitie!- in ent"rie!- inf"rmati"n et#Supplier!;a' material!

La("r f"r#e9i!tri(uti"n,r"du#t a aila(ility,ayment meth"d!9emand influen#e in SCMS"ur#ingC"7"rdinati"n in !upply #hainSafety in ent"ryI*

Ana!ysis of data:

Analy!i! "f data "(tain fr"m an!'er! e plain the 'h"le !upply #hain

and it! pr"(lem!$ *hey are '"r+ing "n differentiating !trategy$ %"r thi! purp"!e they

ha e t" '"r+ effi#iently and effe#ti ely t" earn #"mpetiti e edge$ *hey are !elf in e!ting

"n ea#h and e ery pr"#e!!$ *hat ! 'hy the ri!+ "f l"!! i! greater than the pr"fit$ In

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ad antage "f the !ituati"n$ *hey d" n"t +eep !afety in ent"ry and that ! 'hy they are

una(le t" repla#e the #laim pr"du#t$

C"7"rdinati"n in !upply #hain i! la#+ing and due t" thi! the !upply #hain i! una(le t"

perf"rm 'ell in the mar+et$ *he 'h"le manufa#turing pr"#e!! i! effe#ting due t" thi!

pr"(lem$

%"r re!p"n!i e !upply #hain the!e i!!ue! #reate! large num(er "f diffi#ultie! and !""n

(e#"me a pr"(lem$

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Safety in ent"ry:

*hey !h"uld ha e t" +eep !afety in ent"ry !" they #an deal 'ith the

aria(ility in demand and al!" re!"l e the i!!ue "f #laim$ By d"ing thi! they #an

maintain the tru!t (et'een #u!t"mer! and the "rgani)ati"n$

=le#tri# !upply re#"mmendati"n:

*hey !h"uld ha e t" arrange a generat"r "r !mall !i)e

"f ele#tri# !upply t" deal 'ith the pr"(lem "f ele#tri#ity$ *hey #an !a e time in thi! 'ay$

*hey #an al!" a(le t" f"ll"'