A case study of Partex Denim

Topic of the Dissertation:
“An analysis on how effective and efficient supply chain
management can provide competitive advantage in the
textile industry in Bangladesh”.
A case study of Partex Denim.
Prepared By:
Kazi Iffrite Hossain (Dinggi)
ID: 0002MSMS0212
Semester: 6

DECLARATION
I Kazi Iffrite Hossain (Dinggi), confirms that this research which is submitted for
assessment is completely my own and I have used my own words for completion
of this research. Any means of uses which is made in this study is works of others
authors in forms of (e.g. equation, text, idea, figures and diagrams) are accurately
acknowledged while using them. A complete list of references that has been used
is included.
Signature Date:
Kazi Iffrite Hossain (Dinggi) 19 September 2014
LSC Dhaka, ID: 0002MSMS0212

ACKNOWLEDGEMENT
Firstly I would like to Almighty Allah.
I am extremely thankful to the supervisor, Mr. Zoeb Rahman, who has supervised,
encouraged and supported me from the beginning. He has helped to develop a
knowledge regarding this subject. His patience, friendship and guidance was a
paramount has provided me a versatile experience during my undergraduate
program at London School of Commerce.
I am also thankful to all the faculty members of London School of Commerce and
special thanks to the CEO Mr. Muktadir Rahman who has given me an opportunity
to attain a world class Honors Degree
I would also like to give my thanks to the senior executives of Partex Denim who
has given me their precious time inorder to complete this research.
Finally most importantly, I would thank my parents and my little sister for
supporting me, for being patience, giving me their blessings and unconditional
love. I am also grateful to all my family members and friends who has encouraged
me and supported me till the day I submit my thesis.

1.0 Chapter One: Introduction
1.1 Background of the Research:
Over the last few decades people tend to emphasis on the concept of supply chain management which
is a vehicle for organisation to achieve growth and competitive advantage (Collin, 2003). As the world is
getting globalised thus the motive of organisations is to achieve as much as share as possible of the
market they are operating in. There are many example which shows that there a large number of
companies that had made investment to modernize their supply chains to improve themselves and
develop the contentment of their customers, moreover to enlarge the internal efficiency of the
company. It is said that nowadays it’s not only the individual companies which is competing with one
another but the antagonism is held among the supply chains of the competitors (Christopher, 1998). The
supply chain which is able to add in the most value for its consumers is said to be the winner for
individual companies.
Even though the concept of supply chain management is new but it is given importance by every
successful organisations. Nowadays organisation focus has shifted from manufacturing to the value of
customers. Firms are not much apprehension about the cost of manufacturing or making the high
quality goods rather their most important challenge is to distribute the right product, at the right time,
at the exact location, with the proper quantity and at the stumpy cost as possible. To meet this
challenge firms tend to focus on the concept of supply chain management (SCM) (Towill and Christopher
2002).
In today’s highly competitive atmosphere where the manufacturing companies operate in characterised
by the increasing demand of customers and the growing world’s competition (Rich and Hines, 1997).
This sort of dynamic is mostly examined in the fashion and clothing industry (Storey et. al, 2005).

Moreover the intense competition in the market made organisations more technology oriented and
customer driven, as the product life cycle gets shorter day by day. Therefore firms had to introduce new
goods more often (D’ Souza and Williams, 2002). The study of supply chain management is highly
conceptual and normative (Holweg, 2005). As the significance of this management is present in today’s
business world it is now an interest for organisation to understand what sort of practice are require to
carried out between the organisations to achieve the responsiveness of supply chain. There are many
studies which emphasize on the importance of manufacturer, integrating suppliers and customers
(Frohlich and Werbrook, 2001).
1.2 Theoretical Background:
1.2.1 Supply Chain Management:
According to Bolumole (2000) supply chain management proposes an integrated thinking to manage the
organizations’ purchasing and distribution processes depending on the perspective of the market.
Furthermore it is said that the term supply chain management is a management which held up a
homogeneous concept. The contribution made by the management of supply chain in an organization to
improve the profitability. The main purpose of this system is to reduce cost by reducing the level of
inventory and increase the revenue by improving the service provided to the customers by integration
and coordination along the win-win relationship, material flow and focus on the end customer. Hence to
attain the objectives of the supply chain management, every firm should integrate as well as coordinates
their actions along with additional firms down the surge of material in win-win relationship plus give
center of attention on the combined effort to their end users (Persson, 1997).
This has been further defines as supply chain management is the administration and integration of
supply chain activities as well as organization by supportive organizational relations, an effectual
business method and a high level information sharing to generate performance value methods that
gives competitive advantage to the members of the organisation (Handfield and Nichols, 2002).

1.2.2 Types of Supply Chain Management:
There different types of supply chain but there are four types of supply chain which
has been suggested by Harland (2001) (Jespersen and Skjottarsen, 2005).
● Type 1: Low and Dynamic level of influence on company in focus: In this
type of supply chain the company operates in dynamic condition, and has
partial influence by other participants which are involved in the supply chain.
The dynamic conditions could be described by frequent change in the
internal processes as there are multiple number of products which are being

created and as well as to meet the competition in the market new products are being launched.
The low level influence could be explained by the fact the company is including the degree of
innovation less in their business process compared to the other supply chain participants. For
example this sort of supply chain is found in smaller sub- vendors in an industry (Jespersen and
Skjottarsen, 2005).
● Type 2: High and Dynamic degree of influenced believed by the firms in focus: The firms which
follows this type of supply chain has an advantage over the companies. The focus firms that
competitive advantage over other companies because they have included innovation and
creativity in their supply chain process (Jespersen and Skjottarsen, 2005).
● Type 3: Static firms which had high level of influence: The companies which focus on this sort of
supply chain have a high extent of influence over the other firms that are involved. In this
situation it is said that the dominant companies could choose the cooperation partners could
make the essential decisions concerning the firms involved in the supply chain and making their
process more effective(Jespersen and Skjottarsen, 2005).
● Type 4: Static firms which has low level of influence: the firms which focus on this type of supply
chain they tend to work under steady condition both externally and internally. They tend to be
more cost effective as it is the primary feature of competition. They focus on the effectiveness
surrounded by logistic processes which also involve the improvement of processes, reduction of
inventory, integrating the information system and making the full use of their capacity. These
types of suppliers are found in the textile industry (Jespersen and Skjottarsen, 2005).
1.3 Overview of the Company (Partex Group)
1.3.1 History of Partex Group:
The Partex Group has started their journey in the year 1959. It was founded by Mr M.A Hashem who
was the chairman of the group. He is the living legend who has steered up this organisation and gave it
an incomparable skills and dynamics. The organisation has obtained remarkable productive growth over
these fifty years and has conglomerate with sixty companies which belong in diverse manufacturing unit.
They have achieve enormous growth over the years and had fulfilled of likely achievements ultimately a
natural migration from patrimonial management system by using Partex as a catalyst which is given high
respect both at home and overseas because of their devotion towards quality of product, business
ethics and values. The main Partex Group manufacturing units are Amber Cotton Mills Limited, Partex