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Apparel and textile in Hong Kong

Category: Supply Chain Management Paper Type: Report Writing Reference: HARVARD Words: 3100

            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 .

References of Apparel and textile in Hong Kong

Ari. H. M. M. & et al., 2017. Risks Management of Ready-Made Garments Industry in Bangladesh. International Research Journal of Business Studies, X(1).

Basak, A. & et al., 2014. Supply Chain Management in Garments Industry. Global Journal of Management and Business Research: A Administration and Management, 14(11).

Borade , A. B., 2007. DOMAIN OF SUPPLY CHAIN MANAGEMENT – A STATE OF ART”. JOURNAL OF TECHNOLOGY MANAGEMENT & INNOVATION, 2(4).

Choi, W. & et.al, 2005. New Product Development and Its Applications in Textiles. Journal of Textile and Apparel, Technology and Management, 4(4).

EL, M. & et al., 2016. ANALYSIS OF GARMENT AND TEXTILE INDUSTRY COMPETITIVENESS CAMBODIA. The 4th National and International Conference 2016 "Education Reform: Socio-Political Commitment",

Hall, B., 2005. Innovation and diffusion. In J. Fagerberg, D. Mowery & R.. s.l.:The Oxford handbook of innovation.

Hilletofth, P. & et al., 2008. Supply chain management in the fashion and textile industry. International Journal of Services Sciences, 1(2), p. 127.

Hines, T., 2004. Supply Chain Strategies: Customer Driven and Customer Focused. s.l.:Routledge.

HKTDC, 2018. Textiles Industry in Hong Kong, s.l.: Hong Kong trade development Council .

Hussain, D. & et al., 2012. Strategic Planning for the Textile and Clothing Supply Chain. Proceedings of the World Congress on Engineering, Volume III.

Jadhav, S. S. & et al., 2017. Improving the Productivity of Garment Industry with Time Study. International Journal on Textile Engineering and Processes, Volume 3.

Katunzi , T. M. & et al., 2011. Obstacles to Process Integration along the Supply Chain: Manufacturing Firms Perspective. International Journal of Business and Management, 6(5).

Koster, R. d. & Delfmann, W., 2007. Managing Supply Chains: Challenges and Opportunities. s.l.:Copenhagen Business School Press DK.

Lam, J. & et al., 2006. Textile and apparel supply chain management in Hong Kong. International Journal of Clothing Science and Technology, July, 18(4), pp. 265-277.

Lyons, A. C., Mondragon, A. E. C., Piller, F. & Poler, R., 2012. Customer-Driven Supply Chains: From Glass Pipelines to Open Innovation Networks. s.l.:Springer Science & Business Media.

Mahmood, S. & Kess, P., 2016. An Overview of Demand Management through Demand Supply Chain in the Fashion Industry. International Journal of Management Science and Business Administration, 2(12), pp. 7-19.

Pham, Q. T., 2017. Supply Chain Management of Apparel Industry in Vietnam: problems & opportunities. The 8th Asia Logistics Forum (KAU, Korea).

Rahman, M. M. & et.al, 2011.QUALITY IMPROVEMENT IN GARMENTS INDUSTRY THROUGH TQM APPROACH. Proceedings of the International Conference on Mechanical Engineering.

Sandin, G. & et al., 2018. Environmental impact of textile reuse and recycling. A review. Journal of Cleaner Production, p. 353–365.

Saricam, C. & et.al, 2012. Determination of the Priorities of Customer Requirements and Quality in the Apparel Retail Industry. International Journal of Business and Social Science, 13(16).

Wadho, W. & et al., 2016. Innovation in the Textiles Sector: A Firm-Level Analysis of Technological and Nontechnological Innovation. The Lahore Journal of Economics, p. 129–166.

 

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