Term

TERM Project
PROJECT
Report
REPORT
Artistic Milliners Pvt Ltd.

Group Members:
M. Waseem Siddiqui (20211-2910) Sarfaraz Ali 20171-23269
M. Hammad Kothari 20211-29698 Marium jawed 20171-22430

Aisha Yaqoob 20201-28314 Arsalan khan 20171-22136

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CONTENTS
Company introduction ___________________________________________________________ 3
History of artistic milliners __________________________________________________________ 4
SWOT ANALYSIS __________________________________________________________________ 5
Supply chain map ________________________________________________________________ 7
Overall process flow ______________________________________________________________ 8
Value chain model ______________________________________________________________ 17
1o Critical areas and 3 flows of supply chain – Warehousing _______________________ 19
1o Critical areas of supply chain – Artistic Milliners _________________________________ 23
Problems in supply chain ________________________________________________________ 27
Solutions for supply chain issues __________________________________________________ 28
Conclusion _____________________________________________________________________ 29
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COMPANY INTRODUCTION
Artistic Milliners is a top denim manufacturing company based in Karachi, Pakistan. It was founded in
1949 and has since grown to become one of the leading denim manufacturers in the world. The
company specializes in the production of high-quality denim fabric and has a vertically integrated
supply chain that spans from cotton farming to finished garments.

Artistic Milliners is known for its commitment to sustainability and ethical manufacturing practices. The
company has implemented various initiatives to reduce its environmental impact, including the use of
recycled and organic materials, water conservation measures, and renewable energy sources.

The company has also established partnerships with several leading fashion brands, providing them
with high-quality denim fabric for their products. Artistic Milliners' customers include major global
brands such as Levi's, Gap, H&M, Zara, Target.

Artistic Milliners is also involved in social welfare activities, such as supporting local schools and
providing health care facilities to its employees and their families. The company has won numerous
awards for its sustainability efforts and ethical practices, and continues to be a leader in the global
denim industry.
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HISTORY OF ARTISTIC MILLINERS

Artistic Milliners was founded in 1949 in Karachi, Pakistan by Abdul Wahid. Initially, the company started
as a small tailoring business, but gradually expanded into the textile industry. In the 1980s, Artistic
Milliners started manufacturing denim fabric, which eventually became its core business.

Some of the key milestones in Artistic Milliners' history include:

In the 1990s, Artistic Milliners established its first denim garment manufacturing facility in Karachi. This
helped the company to expand its offerings and become a one-stop-shop for denim products.

In 2005, Artistic Milliners established a state-of-the-art washing and finishing plant in Karachi, which
allowed the company to provide high-quality finishes and treatments to its denim products.

In 2009, Artistic Milliners became the first denim manufacturer in Pakistan to launch a sustainable
denim collection, using organic cotton and eco-friendly production processes.

In 2011, the company established its first overseas facility in Vietnam, Mexico and many distribution
warehouses in UAE, which helped to expand its global reach and diversify its supply chain.

In 2019, Artistic Milliners opened a new production facility in Pakistan AM4C (Digital Factory), which is
one of the largest and most modern denim manufacturing plants in the world. The facility is equipped
with advanced technology and automation, and has a strong focus on sustainability and social
responsibility.

Today, Artistic Milliners is a vertically integrated denim manufacturer, with a global presence and a
commitment to sustainability and social responsibility. The company supplies denim products to some
of the world's leading fashion brands, and continues to innovate and invest in its operations to
maintain its position as a leader in the denim industry.
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SWOT ANALYSIS
Strengths

Vertically integrated supply chain - Artistic Milliners has a complete supply chain that covers
everything from cotton farming to finished garments. This allows the company to control quality and
costs at every stage of production.

Sustainability Efforts - The Company is committed to sustainable and ethical manufacturing practices,
which is becoming increasingly important to consumers and retailers. Artistic Milliners has implemented
initiatives such as the use of organic and recycled materials, water conservation, and renewable
energy sources.

Strong customer base - Artistic Milliners has established partnerships with several leading global fashion
brands, including Levi's, Gap, H&M, and Zara, Target. These partnerships provide a steady stream of
business and help to establish the company's reputation as a trusted supplier of high-quality denim
fabric.

Strong Washing R&D - Artistic Milliners has strong washing R&D capabilities which enables the
organization to develop high quality washes and achieve garment shade quality and improved
customer satisfaction.

Innovative Technology & Digitalization - Artistic Milliners digitalization derives helps in providing the
digital visibility of the operations and reducing waste at each stage and improving operational
excellence through the use of technology.

Market Leader in terms of Market Share and Volume- Artistic Milliners is the top denim exporter with
$ 401 Million Export Value in the year 2022 and achieved 4th position.

Weakness
Limited brand recognition - While Artistic Milliners is a well-respected supplier in the denim industry, it
has limited brand recognition among consumers.

Reliance on exports - Artistic Milliners primarily exports its products, which exposes the company to risks
such as currency fluctuations and changes in trade policies.

Dependence on key customers - While Artistic Milliners has a strong customer base, it is heavily
dependent on a few key customers majority of the business is covered by Target, Zara, Gap and
Levies that is 90% of its revenue. This dependence could leave the company vulnerable to changes in
the market or the loss of a major customer.
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Limited geographic reach - While the company has a strong presence in Pakistan, it has limited reach
in other regions. This could limit its growth potential.

Opportunities
Growing demand for sustainable products- The increasing demand for sustainable and ethical fashion
presents an opportunity for Artistic Milliners to expand its customer base and increase sales.

New Emerging Markets - Pakistan has access to several emerging markets, such as Africa and the
Middle East, which are experiencing rapid economic growth and increasing demand for textiles.

Preferential Trade Agreements - Pakistan has signed several trade agreements with other countries,
including the EU, China, and the US, which provide preferential access to these markets.

Competitive Labor Expenses - Pakistan has a large and skilled workforce, with relatively low labor costs
compared to other textile manufacturing countries.

Threats
Competition - The denim industry is highly competitive, and Artistic Milliners faces competition from
both established players such as Soorty, Lucky Textiles Liberty Mills and Interloop.

Economic instability - Current Economic instability and Bans on LCs in Pakistan affect the company's
operations and financial performance.

Political instability - Political instability, such as changes in government policies or social unrest, is
creating an effect on the company's operations.

Fluctuations in raw material prices - Fluctuations in cotton prices or other raw materials could impact
the company's costs and profitability.
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SUPPLY CHAIN MAP

Product: Basic 5 Pocket Jeans
Product Operational Layout

Value Chain Map

Artistic Milliners is a denim manufacturer that produces a range of denim products, including jeans.
The company offers a variety of jeans styles, including skinny, straight, wide-leg, in various washes and
colors. Artistic Milliners uses a combination of traditional and modern manufacturing techniques to

produce its jeans products.

Raw Material: Raw Material:

Cotton , Fibre,Polyester , lycra ,Spandex Fabric, Lining, Fusing, Threads, Sewing
lyocel , Dyeing & Processing Chemicals Accessories, Finishing Accessories ,
Washing Chemicals ,Cartons
1st Tier Internal Target
Suppliers Supplier
(Mill)
Local
Distribution
Supplier External Artistic Milliners Customers
2nd Tier (Shipment/ Gap
Supplier (Garments) Export)
Suppliers
(local)
Intern.
Supplier
System Levise
External
Supplier
Inputs Process Output
(INT).
HR = 20,000 People Planning Denim Jeans
Capacity = 3.5 Million Pcs Sourcing Satisfaction
Facility = 20+ Warehousing Delivery = 98% Retailers
Quality = < 10% DHU Production Rejection = 5% (Customer for Artistic)
Machines = 10,000 + (Cut - Pack) Quality = 95%
Maintenance=TPM/MTTF Quality / Audit Claims = none
Scheduling = Fast React Sales & Return Audits = 100%
Inventory = 7 Days wip R&D

UPSTREAM & IN BOUND LOGISTICS DOWNSTREAM DOWNSTREAM

PROCUREMENT CYCLE DOWNSTREAM
MANUFACTURING CYCLE REPLINISHMENT CYCLE ORDERING CYCLE
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OVERALL PROCESS FLOW

Garment Manufacturing Process Flow
This flow diagram represent the activities of Artistic Milliners Garment Division from order receiving to
shipment of its products.
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Denim Manufacturing Process Flow

This flow diagram represent the activities of Artistic Milliners Fabric Division which acts as a 1st tier
supplier to garment by providing fabric as raw material this diagram consist of basic overview of fabric
manufacturing process.
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Procurement Cycle
The procurement cycle is the process of acquiring goods and services from external suppliers. Process
Flow completely defines every step of Artistic Procurement Cycle.
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Manufacturing Cycle
The manufacturing cycle is the process of transforming raw materials into finished goods.

Planning Department Process Flow

The first step in the manufacturing cycle is planning. This involves determining what products will be
manufactured and what equipment’s and material is needed .
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Production Department Process Flow

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Sewing Quality Process Flow

The quality process flow is a set of procedures and steps that a company follows to ensure that its
products meet certain quality standards. Basic steps involved in a quality process flow defined above.
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Finishing Quality Process Flow

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Replenishment Cycle
This cycle include all the activities between the distributor and the retailer and in this case Artistic is
acting as logistic distributor for its containers and warehousing process flow is defined for the activity.

Warehousing Process Flow

The warehousing process flow refers to the steps involved in the movement and storage of goods
within a warehouse facility. Here are the basic steps involved in a warehousing process flow of Artistic
Milliners:

Before
In this case Manual operations were performed in Artistic Milliners before digitalization of Warehousing
activities.

After
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Ordering Cycle
This cycle include all the activities between the retailers and customers and in this case Retail brands
such as TARGET is our customer and complete ordering process is defined below;
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VALUE CHAIN MODEL

Primary Activities
Inbound logistics: The first aspect of Artistic Milliners' value chain is inbound logistics, which involves the
sourcing and transportation of raw materials and other inputs. The company sources cotton from
farmers in Pakistan and other countries, and this cotton is transported to textile mills for ginning and
spinning into yarn. The yarn is then transported to Artistic Milliners' own denim mills for fabric production
and then fabric is transferred to Garment division for Jeans products development. The company has
established strong relationships with its suppliers and uses advanced logistics systems VMI to ensure
that raw materials are delivered on time and in good condition.

Operations: The next aspect of the value chain is operations, which involves the transformation of
inputs into finished products. Artistic Milliners has invested heavily in state-of-the-art machinery and
equipment for denim fabric production, dyeing, cutting (Auto spreaders) Sewing (hanger smart line)
Washing (Spray Robotic Arms) and finishing (Smart lines) for, garment production. The company has its
own denim mills, garment factories, and washing and finishing facilities, which enables it to control
quality and costs at every stage of production. The company also has a strong focus on sustainability,
using eco-friendly processes and materials wherever possible.
Company has strong traceability mechanism for Claim materials.
Digitalization has become the norm in the company with top projects enhancing customer
satisfaction reducing product cost and process waste. Some include (Smart Quality Management,
Warehouse Management, Garment Tracking, Machine Learning and smart line, Digital Planning,
Digital Risk Management)

Outbound logistics: The third aspect of the value chain is outbound logistics, which involves the
transportation and distribution of finished products to customers. Artistic Milliners has its own logistics
and distribution network, which ensures that finished denim jeans are delivered to port for shipment on
time and in good condition. The company works closely with its customers to ensure that products are
delivered to the right location and in the right quantities.

Marketing and sales: The next aspect of the value chain is marketing and sales, which involves
promoting and selling products to customers. Artistic Milliners has established itself as a leading supplier
of denim fabric and denim jeans to major global brands such as Levi's, Gap, H&M, and Zara. The
company has a strong reputation for quality and innovation, and uses a range of marketing and sales
channels to promote its products, including trade shows, online platforms, and social media.
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Service: The final aspect of the value chain is service, which involves providing after-sales service and
support to customers. Artistic Milliners has a strong focus on customer satisfaction and provides after-
sales service and support to its customers, including product warranties and repairs. The company also
works closely with its customers to develop new products and improve existing ones, helping them to
stay ahead of the competition.

Secondary Activities
Secondary activities in the value chain model refer to the support activities that enable the primary
activities to function effectively. These secondary activities include:
Procurement: This activity involves the acquisition of raw materials, equipment, and other resources
required for production.
Human resource management: This activity involves the recruitment, training, and development of
employees.
Technology development: This activity involves the development of new technologies to improve
production processes and products.
Infrastructure: This activity includes the provision of support services such as transportation,
communication, and utilities.

Secondary activities contribute to the effectiveness and efficiency of the primary activities, which in
turn affect the overall value that a company can create for its customers. By improving these
secondary activities, a company can improve its competitive advantage and enhance its ability to
create value for its customers.
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1O CRITICAL AREAS AND 3 FLOWS OF

SUPPLY CHAIN – WAREHOUSING
A complete framework is applied on warehousing department and defining each critical area with
respect to the warehouse operations and also the 3 flows of supply chain in warehouse.

10 critical and
strategic Warehouse Department
decision areas
Overall warehousing operations is the service product of
warehouse department.

 The warehousing department is responsible for managing the

physical goods or items that are stored in a warehouse
facility. This can include a wide variety of products, such as
raw materials, finished goods, spare parts, and packaging
materials, among others.
1 Product

 Warehouse Operations activity plays a critical role in the

supply chain and logistics management of businesses, as it
ensures that products are stored in a safe and efficient
manner and are readily accessible when needed and the
company obtains the best possible value for its expenditures.

Warehousing process is the series of steps involved in acquiring

and storing the goods that a company needs to produce. The
process typically includes the following steps:

1 - Receiving :
In this gate pass and packing list of the incoming goods are
received to the warehouse both in physical and on ERP system.
2- Truck unloading: In this physical unloading activity of rolls from
Process
2 the truck is performed.
3- Digital Pallet Building:
In this process each individual roll barcode is scanned through
scanner and loaded into designated pallets.
4- 10% Inspection:
In this process 10% criteria is applied on the delivery and rolls are
inspected on the machine to identify the quality of material
received.
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5- Digital Put Away:

In this process put away plan is prepared on the system and
physical activity is performed to put the pallet into bins and
confirm the transaction through scanning bin barcodes.
6- Move Order Receiving:
Receive the move order from the cutting department for initiating
the pick and issuance process.
7- Digital Pick Up:
In this process rolls are selected in WMS Pick List window according
to the move order plan receive and physical activity is performed
to retrieve those pallets and rolls from bins and transaction is
confirmed through Pick confirm scan.
8- Digital Restocking:
After pick process the remaining rolls are again scanned and
mapped with the pallets and restocked to the bins.
9- GRN Preparation
In this process the goods receiving note is prepared and updated
the inventory receiving and issuance quantity on ERP.

The responsibilities of a warehouse manager can vary depending

on the organization and industry, but include the following:

1. Responsible to manage complete Digital issuance and receiving

and restocking operations of the warehouse.
2. Responsible to sustain the complete WMS Digital System and
resolve the major issues and troubleshooting related to it.
3. Responsible to provide training of the system to warehouse
resources.
HR or Staff 4. Responsible to manage and lead warehousing team to achieve
business KPIs.
what are the 5. Responsible to maintain Stock and aging reports.
responsibilities of 6. Responsible to conduct Customers audits internal and external
3 according to the defined customer standards.
a warehouse 7. Responsible to manage the reconciliation of the physical and
manager system inventory.
8. Responsible to Manage Fabric issuance management as per main
store / cutting requirements.
9. Responsible to control the consumption of Fusing and pocketing.
10. Responsible to manage the Roll wise receiving and issuance in a
controlled manner.
11. Perform Data Analysis of different warehouse reports to derive
meaning results for continuous improvement opportunities and
manage WMS Dashboard.
12. Strategically manage warehouse in compliance with company’s
policies and vision
13. Managing daily warehouse operational task and communications
with internal and external fabric suppliers.
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Facilities and location: The location of warehouse facilities impact

the ability of artistic milliners to carry out its production activities
Facilities and effectively. Factors such as proximity to suppliers, transportation
4
location: infrastructure, and local regulations can all influence facility
location decisions.
Currently there are 1 Central warehouse and 06 Main warehouses.
Warehouse Capacity refers to the ability of the warehouse to store
material to meet the company's demand for goods and services.
Capacity considerations may include factors such as staffing
5 Capacity: levels, technology infrastructure, holding and ordering cost.

Currently Main Store has capacity of 1.5 Million Mtrs. and central
warehouse has the capacity of 3.5 Million Mtrs of fabric.
Maintenance refers to the ongoing upkeep and repair of
warehouse related equipment and facilities, such as digital
6 Maintenance equipment, warehouses, and systems. Effective maintenance can
help ensure that the procurement process runs smoothly and that
disruptions are minimized
The supply chain refers to the network of suppliers, manufacturers,
distributors, and other organizations involved in the production
and delivery of goods and services. Effective supply chain
management is critical to ensuring that the warehouse process
runs smoothly and that the company has access to the resources it
Supply chain
7 needs to operate effectively.
S-P-C

Warehouse Suppliers : Fabric Mill ( Artistic)

Producer = Warehousing Activity
Distributor = Logistics Functions of Warehousing team
Warehouse Customer = Production

Quality Management: Ensuring that the products or services being

Quality procured meet the required quality standards. This may involve
9
Management setting quality criteria, inspecting incoming goods, and monitoring
on 4 point inspection system.
Risk management: Risk management involves identifying and
Risk management mitigating potential risks to the warehouse process, such as supply
chain disruptions, quality issues, and financial risks.
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Scheduling in Warehousing: This involves planning and coordinating

procurement activities to ensure that goods and services are
obtained in a timely manner. Warehousing team creating purchase
10 Scheduling
orders after tracking supplier lead times and production
requirements and then it coordinates with internal stakeholders to
ensure that goods and services are received when needed.

Information flow: This involves the exchange of information

The 3 flows of the between the warehouse department and suppliers, internal
procurement stakeholders, and other functions within the organization. For
department are: example, the warehouse department shares information about
inventory levels, demand forecasts, and delivery schedules with
1- Information
flow: Fabric Mill and they receive information about Packing list pricing
and product availability in return.

Material flow: This involves the physical movement of goods and

2- Material materials from suppliers to the warehouse, as well as the
flow:
movement of finished products from the warehouse to customers.

Financial flow: This involves the flow of money between the

company and its suppliers, as well as the management of
warehouse-related financial processes such as invoicing,
3- Financial payment, and budgeting. For example, the warehouse
flow:
department may negotiate payment terms with Fabric Suppliers
and Logistics drivers, manage invoices and purchase orders, and
track procurement-related expenses against budgetary targets.
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1O CRITICAL AREAS OF SUPPLY CHAIN –

ARTISTIC MILLINERS
These 10 critical Areas are defined with respect to the Artistic Milliners overall company’s perspective.

1- Design of Goods and Services

Denim Fabric: Artistic Milliners produces high-quality denim fabric, which is used by a variety of
customers in the apparel industry. The company produces a wide range of garments, including jeans,
jackets, shirts, and more.
Artistic Milliners is known for its innovative designs and use of sustainable materials.
Artistic is also providing design and development 3D studio and sustainable production services to its
customers

2- Quality Management System

it involves ensuring the quality principles and customer requirements are followed and regular gap
analysis audits are conducted to identify any deviation in the process. Risk Management teams has
been formulated to identify any possible occurrence of risk to its products and employee. ISO
standards are implemented and regular ISO and customer technical Audits from Intertek/ Sgs is
conducted to improve quality and customer satisfaction.

3- Process & Capacity design

Artistic Milliners has currently fixed its operating capacity 2.8 million due to decrease in orders and
demand from the US based markets, the design capacity of Artistic milliners is 8 million of fabric
production and 3.5 million of garment production.
Artistic Milliners has designed its process effectively and normally the process health varies from 90-
95%.

4- Location Strategy
AM operations are based in Karachi due to the presence of shipping port which makes the
transportation of materials easy and less costly also there are other factors such as :

 Proximity to Raw Materials: Karachi is located close to the cotton-growing regions of Pakistan,
which provides Artistic Milliners with easy access to high-quality cotton for its denim fabric.

 Access to Skilled Labour: Karachi is home to a large pool of skilled workers, including designers,
technicians, and production workers. Artistic Milliners has been able to tap into this talent pool
to build a highly skilled workforce.
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 Infrastructure: Karachi has a well-developed infrastructure, including modern highways,

airports, and seaports. This allows Artistic Milliners to easily transport its products to customers

5- Layout and Flow

 Cellular Manufacturing: Artistic Milliners has adopted a cellular manufacturing approach,
where each cell is responsible for a specific operation or process. This allows for more efficient
production and reduces the time and cost associated with material handling and setup.
 Flexible Production Lines: The Company has designed its production lines to be flexible and
adaptable to changes in customer demand. This allows Artistic Milliners to quickly switch
between product lines or make changes to the production process as needed.
 Lean Manufacturing: Artistic Milliners has implemented lean manufacturing principles to
eliminate waste and improve efficiency in its operations. This includes continuous improvement
efforts, such as identifying and eliminating bottlenecks in the production process.

6- Supply chain Management

 Supplier Management: The company has established strong relationships with suppliers of raw
materials, including cotton, chemicals, and other inputs. Artistic Milliners works closely with
these suppliers to ensure high-quality inputs and timely delivery.
 Procurement - Also an important department for sourcing process.
 Warehousing - Looks after distribution and storage of raw materials.
 Vertical Integration: Artistic Milliners has vertically integrated its operations, which means that
the company manufactures denim fabrics and garments in-house. This allows for greater
control over the production process and ensures consistent quality
 Logistics: The Company has established a strong logistics network, including partnerships with
shipping companies, freight forwarders, and logistics providers. This allows Artistic Milliners to
efficiently transport finished products to customers around the world.

7- Hu ma n r es o ur ce Mana ge m ent

 Recruitment and Selection: The company has a rigorous recruitment and selection process to
attract and retain the best talent. Artistic Milliners uses a combination of internal referrals, online
job postings, and recruitment agencies to find suitable candidates for open positions.
 Training and Development: Artistic Milliners places a strong emphasis on training and
development for its employees. The company offers a range of training programs and
opportunities for employees.
 Performance Management: Artistic Milliners uses a performance management system to assess
employee performance and provide feedback. The company sets clear performance
expectations and goals for employees.
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 Compensation and Benefits: Artistic Milliners offers competitive compensation and benefits
packages to attract and retain top talent.
 Workplace Culture: Artistic Milliners places a strong emphasis on creating a positive workplace
culture. The company promotes teamwork, collaboration, and open

8- Sc he dul ing
 Capacity Planning: Artistic Milliners uses a range of tools and techniques to plan its production
capacity. The company analyses historical data and market trends to forecast demand, and
uses this information to determine the appropriate level of capacity needed to meet customer
needs.
 Production Planning and Control: Artistic Milliners uses a variety of methods to plan and control
its production processes. The company uses software applications to create production
schedules, monitor progress, and track inventory levels.
 Just-In-Time (JIT) Manufacturing: Artistic Milliners uses JIT manufacturing techniques to reduce
inventory and improve production efficiency. The company uses a pull-based system, where
production is initiated only when there is a demand for the product.

9- In v ent or y Man ag e me nt
 Inventory Planning: Artistic Milliners uses a range of tools and techniques to plan its inventory
levels. The company analyses historical data and market trends to forecast demand, and uses
this information to determine the appropriate level of inventory.
 Inventory Tracking: Artistic Milliners uses software applications to track inventory levels and
monitor stock movements. The company uses barcode scanning to accurately track inventory
levels in real-time.
 Safety Stock: Artistic Milliners maintains safety stock levels to ensure that it can meet
unexpected demand or supply disruptions. The company determines safety stock levels based
on factors such as lead time, demand variability, and supplier reliability
 Just-In-Time (JIT) Inventory Management: Artistic Milliners uses JIT inventory management
techniques to reduce inventory levels and improve efficiency. The company uses a pull-based
system, where inventory is replenished only when it is needed.
 Inventory Optimization: Artistic Milliners continuously evaluates and optimizes its inventory levels
to ensure that it has the right amount of inventory at the right time.

1 0- M ain te nan c e & R eli abi lit y

 Preventive Maintenance: Artistic Milliners conducts regular preventive maintenance on its
equipment and facilities to prevent breakdowns and extend the life of its assets. The company
follows a planned maintenance schedule that includes tasks such as lubrication, inspections,
and cleaning.
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 Predictive Maintenance: Artistic Milliners also uses predictive maintenance techniques to

identify potential issues before they occur. The company uses sensors and other monitoring
tools to track equipment performance and identify potential problems.
 Reliability Engineering: Artistic Milliners employs reliability engineering techniques to design and
operate its equipment and facilities in a way that maximizes reliability and minimizes downtime.
The company uses techniques such as root cause analysis, failure mode and effects analysis
(FMEA), and reliability-cantered maintenance (RCM) to improve reliability.
 Asset Management: Artistic Milliners uses asset management techniques to optimize the
performance of its equipment and facilities. The company tracks asset performance metrics
such as mean time between failures (MTBF) and mean time to repair (MTTR), and uses this
information to identify opportunities for improvement.
 Continuous Improvement: Artistic Milliners is committed to continuous improvement in its
maintenance and reliability processes. The company regularly reviews its maintenance and
reliability strategies to identify areas for improvement and implements changes to optimize
performance.

3 Flows of Supply chain

Material flow: This refers to the movement of raw materials, work-in-progress, and finished
products through the supply chain. For Artistic Milliners, this includes the movement of cotton from
farms to textile mills, yarn from textile mills to denim mills, and finished denim products from the mills to
customers.

Information flow: This refers to the sharing of information and data between suppliers,
manufacturers, customers, and other stakeholders in the supply chain. For Artistic Milliners, this includes
the sharing of production plans, inventory levels, demand forecasts, and quality control data.

Financial flow: This refers to the movement of money through the supply chain, including
payments for raw materials, manufacturing costs, transportation costs, and other expenses. For Artistic
Milliners, this includes payments to suppliers, manufacturing costs, and payment processing for
customers.
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PROBLEMS IN SUPPLY CHAIN

1- Raw Material Sourcing

Due to current economic conditions Inflations dollar value and ban on imports LCS, it is very difficult to
procure raw materials for products. Currently the major raw material is Fabric 20% outsourced and
imported. Other small import materials such as accessories threads burton tags, machine parts contain
3% of the total Procurement bill, any Disruptions can create a delay in meeting productions deadline.

2- Sustainable Sourcing

The customer demands for Environmentally friendly and sustainable products such as Claim Material
organic materials or to support the good cotton initiative and black cotton initiative is increasing and it
getting difficult to meet the compliance and supply chain and traceability requirements for this
product. (Claim material Assessment)
Consumers are increasingly demanding sustainable and socially responsible products, putting pressure
on textile companies

3- Logistics and Tra nsportation

Due to recent hike in fuel prices the transportation cost has increased significantly and it affects the
overall profitability of the supply chain operations.

4 - Supplier Manag ement

Artistic Milliners has a strong commitment to social responsibility and sustainability, which is reflected in
its certifications and accreditations. However, the company may face challenges in ensuring that its
suppliers and partners also meet these standards, which could impact the company's reputation and
relationships with customers.

5- High Inventory

Currently Artistic is carrying large inventories in its warehouses which increases the holding cost and
also covers the space. The current work in process inventory between the warehouses to cutting is
about 4 days.

6- Obsolete Technology

Artistic is still using ERP based operations but many of the operations are still performed manually which
reduces the efficiency and effectiveness of supply chain management. All the operations in the
warehousing are manual and paper-based working, which provides no visibility of the inventory and
wip in process.
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SOLUTIONS FOR SUPPLY CHAIN ISSUES

1- Digitalization (Warehouse Management System)
Artistic Milliners is currently working on warehouse digitalization project to transform the existing manual
operations of warehouse management to digital inventory management. Which provide greater
inventory roll wise visibility and traceability of social and claimable materials in warehouse racks / bins
/ pallets. Digital scanned based system is implemented to track and trace each roll with its Lot no. and
process flows already covered.

2- Reducing import dependencies

Artistic Milliners is currently focused on improving its production capacity of fabric to reduce import
dependencies from 20% to 5%. Also, can work on supplier integration by collaborating with its
international suppliers. To reduce cotton import dependencies, enhance their vertical integration by
investing on cotton farm purchasing.

3- Sustainable sourcing
Artistic is currently working on Claim material assessment supply chain issues by developing a cross
functional team to improve the traceability of these raw materials both in system and through physical
colour coding-based mechanisms.
Colour families of different raw materials and categories were developed.
Segregation of these claim materials were also done in system dashboards.
Standards and sops are also developed to educate the employee of these social standards.

4- Supplier Excellence Elevation Program

Artistic can work on developing its suppliers to improve the quality of their raw material improve their
production capacity and reduce lead times of delivery by sharing information with suppliers and
developing their skills and capacity.

5- Logistics Issue
To improve logistics and transportation, Artistic Milliners could invest in advanced supply chain
management technology to track and optimize shipments. The company could also consider building
stronger relationships with its logistics partners to ensure reliable and efficient delivery of products.
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CONCLUSION
In this report a complete detailed study of the Artistic Supply chain is analyzed with
respect to the different principle of value chain model and complete supply chain
map of the activities developed which covers all the departments of Artistic Milliners
from the upstream to downstream and individual process flows are developed for
each department highlighting their detailed set of activities and flows. It also covers
the complete SWOT analysis of the company and defines the current position of
artistic milliner’s w.r.t. to its competition. This report also highlights the critical factors of
warehousing department also overall company’s factors which play important role in
Artistic Milliners success and achieving excellence in its operations. Problems
highlighted with their solution strategies through innovative technology and other
important decisions that can help the organization achieve better competitive
position in the market.