This case study is about the
supply chain management of the textile and apparel in Hong Kong; whereas the apparel
and textile face many problems related to the supply chain management, and have
the short product cycle of the fashion article, forecasting errors. But the
apparel and textile of Hong Kong face the different problems related to the distance
from the customers, in the European and the US markets. The findings of the
case study include the differentiation of the product demands into the
innovative as well as the functional product which helps in the company in the
supply chain management to employed the various strategies of the supply chain management.
The concept of supply chain management is very significant for the Hong Kong
garment and textile industry (Lam & et.al, 2006). There is the following
question which is discussed in this case study, as shown in the below discussion.
In the present work, the strategic fit of the garment industry is discussed in
detail, along with the key theories related to the increase of efficiency in
the integration of the supply chain.
Question 1
a). Customer
Needs of Apparel and textile in Hong Kong
The selected customer need which is
related to the garment industry is given below;
Range of
Quality increase of Apparel and textile in Hong Kong
The aim of this case study in the
customer needs is that elaborate the range of the quality increases which is
very significant quality in the apparel and the textile industry, which
presents the usability of the Analytical Hierarchy process for the ranking requirements
(Saricam & et.al, 2012). To improve and
increase the range of quality, and reduce the manufacturing cost the Total
quality management is an important tool. The improvement of quality in the garments
and the textile industry is to play an important role in improving the economic
and the productivity of the development of the country (Rahman & et.al, 2011).
Rate of
innovation increase of Apparel and textile in Hong Kong
The term “Rate of innovation” is defined
as the implementation of the important or new marketing methods, process, products or managerial methods in
the business practice of textile and garments industry with external relations.
One thing that also must be concerned about the supply chain is that there is
always be an opportunity for more uncertain demands of products from the
customers (Hall, 2005).
The reason is that, with the extension of more channels, definitely supply
chain will get more customers to be handles. These customers come with
different interest. Thus, there is a need for innovations that will get
increased along with the increased numbers of customers who demand new products (Lyons, et
al., 2012).
Moreover, the rate of the innovation is increases in the textile and the
garment industry with the firm size, whereas the large firms have the 83%
innovation rate which is followed through the small firms (39%) and the medium firms
(68%).The new products which have the tendency for the uncertain demand, that
why the rate of the innovation is an increase of the textile and the garment
industry in the Hong Kong (Wadho & et.al, 2016).
Variety of
products required an increase of Apparel and textile in Hong Kong
Variety of the various products development
in the apparel as well as textile increase and it exist by the different
companies along with the diverse of the textile end and uses. Variety of the
new products is the riskiest and the critical strategies in the several competitive
industries (Choi & et.al, 2005) . The variety of the
products is increasing, and it related to the textile industry whereas the method of the new development
products would contribute and improved innovative products of the marketing. The need for a variety of products required
increases which caused by the demand per product becomes more disaggregated.
As we know, the textile industry is always changing and following the trend in
the market. This influences the need for various products to get increased due
to the customer’s demand for every single product has become more disaggregated.
Whereas the textile industry is capable of creating the great range of the
quality of the products in bulk with the specialized items in the short time of
with the various applications. The superb quality lies in the competitive edge
along with the response of the market demand s as well as the garments industry
in Hong Kong. For the unique quality, flexibility, workmanship, and the skills the
garments industry and textile is earned a worldwide reputation. So, that why Hong
Kong is one of the ideal shopping centres for the buyers that are looking for
the new products of the materials (HKTDC, 2018).
Therefore in the garments industry; they always trying to improve the quality
of garments which sustain the enormous for the competitive markets. From an
innovation strategy, the new ideas are come out which help in the range of
quality increments through the use of the knowledge’s which bring the necessary
information related to the technology, of the supply chain management (Jadhav & et al, 2017).
b). Uncertainty
Spectrum of Apparel and textile in Hong Kong
According to the given requirements
in the below diagram which present the uncertainty spectrum of the garment
industry elaborate that , which factors are related to the garment industry
The Apparel and the garment industry,
which is characterized through the unpredictable demand, within the short
product of life cycles with the product variety. In supply chain management,
the environment of the competitive markets of the garments and the textile
industry is based on the efficiency and the effectiveness (Pham, 2017).
We can conclude that the supply chains
in the garment industry are included under the highly uncertain supply &
demand. The reason is that we cannot predict the trend in the fashion industry.
Thus, if the supply chain could provide the products that up-to-date with the
trend, then definitely there will be a high demand arrive from the customers,
which will also influence for the need of supply as well. In the other hand, if
the supply chain is unable to produce its innovative products which meet the
requirement of customers, then the possible situation that will appear is, the
supply chain will be under the category of predictable supply and demand or
somewhat uncertain supply and demand (Mahmood & Kess, 2016).The demand of the
supply chain, which is the aggregation of the supply chain and it interact at
the various points in the order of the penetrations , and the value offering
points.
c). Supply
Chain Efficiency & SC responsiveness of Apparel and textile in Hong
Kong
According to the given
requirements in the below diagram which present the Supply Chain Efficiency
& SC responsiveness of the garment industry elaborate that , which one most
suits with the garment industry. And
Supply Chain Efficiency is mostly suited to the garments industry
The core of the standard performance
of the organization is the Supply Chain efficiency, whereas the efficiency measures
the ratio of a work which is performed in the process along with the process
which is using the best practice and making the most available resources. To
improve the efficiency of the reverse supply chain management, which is
particular involves in the competitive environment like the apparel and the
textile industry (Basak & et al, 2014). The Supply chain responsiveness
explains as s capability of a supply chain to react persistently as well as
within a proper time-scale to demands of customer or a modification in the
market. The supply chain efficiency is related to the garments industry is
considered to be efficient if the main focus is in reducing the cost, and there
are non-value added business activities on the supply chain. The manicure could
also reduced the order of the time lead, along with the inventory levels,
whereas the spinning mills also receive the transfer of the production to improve
the production of the efficiency One thing that needs to be noted here is that
the main goal for any supply chain to exist is to give the satisfaction of
customer needs along with the business profits. By the supply chain management improve
the competition, and around about the 68% of respondents is agreed to enhance the
efficiency. Because the supply chain efficiency minimize the cost of the
functional products (Arif & et al, 2017)
d). Obstacles
to Achieving Strategic Fit of Apparel and textile in Hong Kong
To find the balance among the efficiency
as well a responsive, which is matched with a target of the customer needs is
included in achieving the strategic fits. There are various obstacles to achieving
the strategic fits. In the increments of the variety of products, the customers
are demanding the ever more for the customized products. Decreasing the product
of the life cycles, it means that today there are products whose life cycles
could be measured in the specific month then relates to the old standards of the
previous years. The demand of the customer is increasing day by day which is a great
obstacle in the garment industry like customers wants an improvement in the
delivery of the leads time, performance of the products along with the cost.
Supply chain ownership for the fragmentation in most of the firms is become
very less vertically which is integrated , and the garments industry has the
shed of the noncore functions , that is able to take the various advantages for
the customers and the supplier's competitiveness. In the Globalization
obstacles. Put the stress in the chain due to the facilities in the chain for farther
apart, creating the coordination which is more difficult. There is sometimes difficulty
in executing the new strategies, which is a good strategy, and it is formulated
the excitation of the strategy that is more difficult (Katunzi & et al, 2011).
Question 2
Collaborative Planning,
Forecasting, and Replenishment (CPFR)
According to the given
requirements in the below diagram which four elements of the garment industry
elaborate that, which one is applied with the garment industry (Sandin & et al, 2018).
In the strategy & planning which are being designed to enhance the competitiveness
along with the responsiveness of the chain through increasing the product
diversification along with the value addition. The study of the strategic
planning in the garments industry which is based on the understanding and the developing
of the various parts where the problem is required the detail level, along with
it is also creating the view that is holistic by combining parts. The supply
chain needs to form the basic principles for the collaborative correlation. The
supply chain also needs to define the product combination and settlement and
build event strategies for the period. The strategic planning is the process to
establish the relationship among the chain entitles for the development of a garments
industry (Hussain & et al, 2012). The demand and the
supply chain management is the timely manner which is true challenges in the
present business of the garments industry, especially for the fashion products,
whereas on-demand is got on the different variety in the short time. Managing
the demand, along with the supply chain, is not native, and the supply chain
complicated by the outsourcing trends. In the fashion industry, the demand for
supply chain management (Hilletofth & et al, 2008). In the apparel industry,
which reduced the operational cost in the manufacturing by eliminating the
process of waste, then it also increases the higher productivity of executions
process. The supply chain needs to
prepare and deliver all the shipments, receive and stock the product on the
store. The impact of the analysis on the garments industry for the post removal
of textile along with garments. And in the apparel industry which deals with the
two scenarios, which is based on the size, type of the firms where working and policy
of the companies is defined (EL & et al, 2016).
Question 3
Improvement
Strategies to Reduce Uncertainty of Apparel and textile in Hong Kong
According to the given
requirements, there is three recommendation which is shown in the below
diagram, elaborate each with the proper feasible approach to managing the supply chain management towards
developing a logistics excellence.
The supply chain also has to make
sure for the consistency of its products. It means that the supply chain needs
to assure the customers that the company will not produce and distribute the
products with less quality to the market. For this reason, the supply chain
must always pay attention to the manufacturing processes to make sure the
consistency of the product quality will remain the same or will be better if
the quality will get improved. The feasible approach which supposed and
developing the supply chain analysis involves the information, integration,
collaboration, technology for the supplier relationship as the global issue.
Supply chain requires the practical setting which assesses the agile capabilities.
In supply chain management, the partnership of the supply chain could deliver
significant advantages to its partners. Plus, the partnering scheme in the
supply chain will also be able to create mutual benefits for both the supply
chain and its partners as well. Thus, with the help of a partnering scheme, the
supply chain will be able to reduce the uncertainty within its business
progress (Borade , 2007). In the garment
industry, the supply chain since there is always a possibility for uncertain
demand from the customers, then the company should create proper strategies to
handle it.
Conclusion on Apparel and textile in Hong Kong
Summing up all the discussion, the case study refers to
the Apparel and the textile industry. And it involves strategic fit between
competitive strategy and supply chain management is possible through
appropriate management of capabilities and strengths of internal resources.
First of all, apply the customer need in the garments industry in Hong Kong,
whereas three factors are discussed in this study. The supply chain also
always have to notice the customers’ need and make proper strategies and
management to fulfil them. To improve and increase the range of quality, and
reduce the manufacturing cost the Total quality management is an important
tool. Thus, there is a need for
innovations that will get increased along with the increased numbers of
customers who demand new products. The
need for a variety of products required increases which caused by the demand
per product becomes more disaggregated. In the uncertainty spectrum, the
predictable supply and demand are related to the garments industry. For
this reason, the supply chain has to focus on its efficiency and responsiveness
to achieve the strategic fit. To reduce
the uncertainty which the supply chain could put in practice of the
manufacturing processes, the supply side, and also demand side as well. Textile
and the apparel industry for the supply chain of the garment industry is the
short period of the cycle , for the fashion article , and also have the long
production of time lead .
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