Friday, May 17, 2019
A Case Study of Arvind Mills
A case study on Arvind mill Ltd Supply Chain A very distinct feature of Arvind Mills Ltd is the fact that its brands work across multiple channels, price points and guest segments. These are brands that are distinctive and relevant across diverse customer segments. Some of the brands under Arvind Mills are Wrangler, Excalibur, Flying Machine, Newport, Ruf & Tuf, Arrow, Izod etc and its customers include Levis, Lee, Tommy Hilfiger etc.The supply network finally reaches the customer touch points through over 275 stand alone brand stores across the country and more than 975 counters marketing multi brand retail outlets an key accounts across India. Arvind Mills Ltd is one of the largest denim manufacturers in the world and has tack its supply chain ground on push system. Under normal operating conditions, Arvind manufactures denim sorts based on monthly forecast to tired at various warehouses.As Arvind Mills pushes its products (sorts) to ware-houses, actual selling takes draw a bead on on an ongoing basis with the sold sorts are being replaced subsequently. The Push system ope place under the make-to-stock environment. magic spell the system has worked efficiently at Arvind for years it becomes difficult for a company to follow the same where a high demand fluctuation exists. A Push-based supply chain accumulates excessive inventory (cycle stock and work-in-process) by the time it responds to the changing demand.In addition, since yen-term forecast plays an important role, it is difficult to match supply with variable demand. Push supply chain also entails larger production batches, incompatible for catering demand of presently quantity. Another interesting feature of the supply chain is the intense reach Arvind Mills is targeting. With increasing disposable income available in the rural areas as well, the company is trying to make shirts at affordable rates available at grocery stores and petrol pumps. It has also started selling shirt bits instead o f multi meter long rolls which once dominated the retail shelves.