Introduction
There are two different levels of the supply chain at Ready-Made Garments (RMG), which are, macro and micro levels. A macro-level supply chain involves activities conducted in foreign countries by other companies or within their borders. The processes at the macro-level can further be divided into pre and post-production. At the pre-production stage, in RMG, a marketer is hired to meet, negotiate and confirm orders on the behalf of the company (Nien-hê and Chaturvedi, 2017). They should take clear and detailed information about the required products such as color, style, fabric, price, and due date. After that, a prototype is made and sent back to the customer with all their specifications for their approval and comments (Nien-hê and Chaturvedi, 2017). A letter of credit which includes price and due date is requested from the customer for manufacturing to proceed. The company sends a letter of credit in favor of their chosen supplier also known as back-to-back. A pre-production meeting is conducted with all the stakeholders in attendance to plan a smooth production.
Moreover, the post-production supply chain activities include the ultimate inspection of the products. The company sends the goods using transportation, either by air or sea according to the agreed mode of transmission. The micro-level activities are also divided into two levels, service and production. The service level is where the company representative interacts with the supplier or customer, for example, during negotiations, documentation, and communications. The production supply chain involves those processes conducted during actual production such as cutting, sewing, and packaging.
Differentiation of Simco Industries
Simco industries possess some distinctive features that differentiate it from other manufacturers giving it a competitive advantage. To begin with, the company was able to acquire financial assistance from one of the movie’s stars, Sanmark Stardust, thus starting a huge manufacturing firm (Nien-hê and Chaturvedi, 2017). The industry mainly dealt with women’s garments and hence could make a more complicated design using softer fabrics. Their primary competitiveness is their ability to set up a firm in a location where they can benefit from low wages. They have an effective supply chain management that eliminates wastage, enables a short delivery period, and gains customer satisfaction. More so, the operation time frame and compliance are among the most essential features of the business.
The Focus of an Apparel Supply Chain
In the apparel industry, effective supply chain management is essential due to the versatile and dynamic nature of fashion, seasons, and trends. Hence, the industry should ensure a short period between when resources come in for manufacturing and out in the market. The supply chain involves contracting different suppliers, designing, distributing, and sale. The process should be transparent and organized. Simco observes the requirements of an apparel supply chain to the letter. The industry does not overstock goods or have shortages as they recognize the dynamic nature of the products. Their supply chain is also transparent and organized which ensures accountability and loss prevention.
Supply Chain Subcontracting
The prime or main contractor of business activity is responsible for monitoring sub-contracts. They should manage them by awarding the sub-contracts, evaluating financial and technical capacity, process monitoring, and playing sub-contractors for their finished work. Additionally, most sub-contractors possess a set of guidelines laid down by the brand in a code of conduct document (Nien-hê and Chaturvedi, 2017). Violating the code of conduct results in a penalty or cancellation of the contract. The code of conduct should be in line with the international set standards.
References
Nien-hê, H. & Chaturvedi. S. (2017). The ready-made garment industry: a Bangladeshi perspective (A). Harvard Business School Case (317)052, 2017.