Table OF Content

Introduction (Lucky Textile Mills) ...................................................................................... 3

Introduction (Sarena Textile Industries) ............................................................................. 4
Literature Review: ............................................................................................................ 5
SWOT Analysis of LTML: .................................................................................................... 6
Strengths ................................................................................................................................. 6
Weaknesses............................................................................................................................. 6
Opportunities: ......................................................................................................................... 6
Threats: ................................................................................................................................... 7
Data Collection:................................................................................................................ 7
Methodology ................................................................................................................... 7
Question And Answers: ............................................................................................................ 7
Procurement: ................................................................................................................... 9
Inventory management: ................................................................................................. 11
Material Management ................................................................................................... 11
Storage & Warehouse .................................................................................................... 12
Current Framework ................................................................................................................ 12
Transport & distribution ................................................................................................. 13
Exports/Business Outbound Logistics .............................................................................. 14
Comparative Analysis: Serena Textile Mills vs. Lucky Textile Mills: ................................... 14
Recommendation ........................................................................................................... 16
Conclusion...................................................................................................................... 16
References: .................................................................................................................... 17
Introduction (Lucky Textile Mills)

Lucky Textile Mills started in 1983 and has stayed a top textile maker since then. They
focus on using the newest technology and making sure their workers have great
conditions. They've been really focused on making their customers happy for more
than 25 years. They have three advanced weaving mills with 750 high-tech looms.
These looms have computerized processes to make sure everything runs smoothly.
They can make 250,000 meters of fabric each day and a whopping 83 million meters
each year. Plus, their factories can make 6.20 megawatts of power all on their own.

VISION:
To be the undisputed leader in the textile industry whilst providing a socially
responsible commitment to the environments we invest in.

MISSION:
Provide unrivalled quality and assurance to all our customers and stakeholders by
employing techniques that serve both our internal and external environments with
respect and integrity

Background:
Lucky Textile is associated with YB Group (Yunus Brothers Group), which is one of the
largest business groups in the country. Based in Karachi, they have tremendously
increased their operations and capacity over the last 50 years. The YB Group is
engaged in diversified manufacturing activities including Textile Spinning, Weaving,
Processing, Finishing, Stitching, Trading, Cement Manufacturing, and Power
Generation. The Group consists of several industrial establishments.

Core Values:
• Legacy and Leadership
• Unity, Uniqueness, and Upholding Standards
• Customer Focus, Commitment, and Continuous Improvement
• Knowledge Sharing, Key Partnerships, and Keeping Promises
• Yielding Quality in Everything they do

Modern and high-quality products

• Home Textile (including Knits): This category includes a range of textile

products designed for home use. It includes items like bedding sets, curtains,
towels, and other fabric-based items used in the home. Knits refers to textiles
made from materials like cotton or wool that are knit together.
 • Soft Home Kitchen: These are textile products specifically designed for use in
the kitchen. This includes things like aprons, oven mitts, tablecloths, and
kitchen towels, all made from soft and durable materials suitable for kitchen
use.
• Garments (Fashion Apparel/Institutional Apparel): Lucky Textile Mills also
produces garments, including both fashion apparel and institutional apparel.
Fashion apparel is clothing items designed for everyday wear or special
occasions, while institutional apparel includes uniforms or clothing made for
specific industries or organizations.
• Fabric on Rolls & Bolts: Fabric is sold in rolls or bolts, which are large rolls of
fabric typically used by manufacturers to create various textile products.
These rolls and bolts come in different types of fabric, colors, and patterns,
catering to the diverse needs of their customers.

Introduction (Sarena Textile Industries)

Sarena Textile Industries, established in 2001, is a leading player in the textile
industry, known for its expertise in weaving, dyeing, printing, finishing, and stitching.
With a focus on producing specialized materials for uniforms and fire protection, the
company has made a mark both domestically and internationally. It has experienced
significant growth in recent years, showing resilience and a solid financial
foundation.

Background:
Sarena Textile Industries is part of the Sefam Pvt. Limited group, with headquarters
in Lahore, Pakistan. This group has a strong visibility in the textile industry and has
expanded its operations over time. With over 50 years of experience in textile retail,
manufacture, and export, they are fully committed to transparency and integrity in
all their operations. It operates with a customer-centric approach, aiming to build
long-term, trustworthy relationships based on honesty and the highest standards of
quality.

Vision:
At Sarena Textiles, we envision becoming a benchmark of sustainability, embodying the core
values of significance, excellence, and institutionalization. We strive to lead the way in
creating a green environment and promoting social responsibility.

Core Values:

• Transparency
• Integrity
• Customer Satisfaction
• Long-Term Partnerships
• Pursuit of Excellence
Fashion Textiles by Sarena
Sarena's textiles offer Innovative apparel and sustainable accessories, keeping pace
with the ever-changing fashion world.

Literature Review:
Purchasing and transportation are some of the major sub-processes of supply chain
management that cannot be undertaken independently but must be coordinated to
gain operational efficiency while at the same time creating competitiveness. This
literature review integrates findings from a completed work-embedded study visit to
Lucky Textile Mills Limited and situates its practices in the domain of procurement,
inventory, storage and distribution management. LTML pays special attention on
quality of its raw material, and it supplies cotton from the USA, Greece, Brazil and
West Africa. Its procurement division is clear, and SAP based, with conformity to
standards SOPs when valuing suppliers, orders and delivery as required for the
industry. LTML uses several methods of inventory such as weighted average valuation
and FIFO issuance, to help in the management of stock with the aim of minimizing
stock hold without stock and to support its production. Method of segregation is
labeling the inventory as insurance, running, and seasonal stock, Just in Time (JIT)
system of operating local purchase. While it is possible to reverse logistical operations
up to the point of production, operational control rarely can reverse downstream
logistics operations fully past the stock point. Semi-automated storage systems favor
accuracy and show improved efficiency. Problems like unrecorded materials raised
the issue of the management of returns leading to inefficiencies, and therefore called
for better tracking systems. Returning merchandise ensures that products which
customers did not purchase are returned to the manufacturer, suitable to the
concept of sustainability. Import transportation is conducted through third party,
multimodal transportation while local distribution employs both internal and external
modes. Outbound processes include first in, first out/first in, first served area picking
which enables timely and accurate orders shipment. Microsoft dynamics and Oracle
EBS 12.1 are perhaps some of the ERP solutions that facilitate real-time tracking for
decision making. LTML’s examination of local cotton investments as of 2009
represents the group as more conscious of sustainability and the near parity import
tendencies.
SWOT Analysis of LTML:

Strengths
1. High-Quality Standards: Because LTML primarily acquires its raw materials from outside
its domestic market to offer quality products, it’s a company that mainly exports its
products.
2. ERP Integration: modern technologies inclusive of Oracle EBS 12.1&Microsoft Dynamics
improves the procurement, inventory and Logistics.
3. Diversified Customer Base: Some of these distractions include the focus on export
markets, a move that assists in avoidance of over-reliance on the domestic market,
particularly exports to countries within the Scandinavia region.
4. Established Supply Chain: Good stock acquisition, good stocks control and multiple
transport systems help towards being effective in these companies.
5. Sustainability Focus: Implication of finances to the local cotton farming indicate
sustainable and Financial Corporation toward the environment.

Weaknesses
1. Dependence on Imported Cotton: Purchasing materials from foreign suppliers is thus
disadvantageous to business because it makes supply vulnerable to high volatility and risk.
2. Manual Processes: Certain functions, including return management and storage, are only
semi-automated in this sense regarding digitalization.
3. High Operational Costs: High costs result from the large inventory and imports of
material.
4. Inconsistent Local Raw Material Quality Lack of certain deficiencies in the local markets
offer some complications as far as the quality of the supplied cotton and the means for cost
effective procurement.

Opportunities:
1. Expansion of Local Sourcing; Several scholarly jobs in agricultural engineering can reduce
dependence on import and quality enhancement of local cotton.
2. Increased Automation: Optimality of storage and mechanism of logistics operation
increases depending on complete automation to decrease variations and human errors in
the procedures.
3. Sustainability Initiatives: The quantitative increase of environmentally friendly consumers
could be achieved by the company expanding its reverse logistics in recycling back the
unsold products.
4. Market Diversification: Consequently, market development outside the home country
may be useful to counter dependence on existing customers.
5. Technological Advancements: With the help of real AI and advanced use of analytics
tools. That is, in demand forecasting and inventory management, efficiency can
be achieved.
Threats:
Economic Instability: This is due to “general exchange rates and inflation in the
countries such as Pakistan can have an impact on the buying and functional expenses.
Global Competition: Threat posed by other textile exporting countries such as Bangladesh
By the same guiding principle, it can be stated that HAL and Vietnam can be viewed as a
threat.
Supply Chain Disruptions: These can be such factors as political or other environmental
incidences such as changes in the Supplier countries may lead to more types of delays and
costs.
Environmental Regulations: It is likely that even greater efforts will need to be exerted to
maintain ongoing practices that are sustainability due to the current global orientation
towards environmentally sustainable solutions.
Volatile Raw Material Prices: Quite often, changes in yarn and cotton costs influence the
planning and profitability.

Data Collection:

• Company Interview: On 4th of dec 2024, we conducted an in-person interview

at Lucky Textile Mills. We met with the General Manager, who provided valuable
insights into their supply chain management strategies with a focus on
procurement and logistics. The interview covered topics such as procurement,
logistics, warehousing, strengths and challenges, and future aspirations.
• Supplementary Information: To supplement the interview data, we reviewed
brochures and information available on the Lucky Textile Mills website and for
the company B “Sarena textile industries” we used their website and some other
articles and pdfs to gather information on it.

Methodology
Question And Answers:
Q1: What are the key challenges you've encountered when sourcing materials for
your company?
Ans: LTML has several issues in the materials procurement process. High dependence
on imported raw materials such as cotton and dyes are due to the higher quality
available in the international market, which raises costs by making the company
vulnerable to price fluctuations and long lead times. Inadequate cost control
fluctuates in price of inputs like yarn also increases the odds fighting for
competitive budgeting for procurement. When returns are not managed
effectively, this defeats the purpose and leads to many mismatches, especially
when inventory is being administered, When the rush is on during its busy
seasons, the logistical flow becomes a nightmare. Besides, other challenges
include constantly having to understand international trade regulations and
dealing with the unreliability of suppliers. The given factors affect operations; the
fluctuating economy of large states, local sustainability concerns, and a trend
 toward increasing the procurement of materials locally add up to the demands
and provide a scope for strategic management for optimal efficiency in the long
run.
Q2: Can you describe any challenges you ever had when negotiating with your
suppliers such as contract negotiations or prices?
Ans: In Procurement there is always a problem, such as the acquisition of goods like
raw material that are usually expensive and agreeing on price. Commonly it is
hard to strike a right friendly clause for negotiation of good contract terms, which
on the other hand would foster good suppliers’ relation more especially with
foreign suppliers who are faced with fluctuating exchange rates and trade
regulations. Important aspects such as delivery time, delivery quality and delivery
quantity are other areas of conflict between a supplier buyer relationship where
lack of agreement makes things worse.
Q3: How do supplier relationship management problems emerge, including
delayed delivery or quality variations?
Ans: Some common Supplier relationship management issues stem from delayed
delivery, which affects the production line and in turn means that there will be
delayed delivery of other products that depend on the material. Defects like this
led to rejection or inefficiency, and if raw material quality is not consistent, this
can be a problem. These problems are worsened by miscommunication, absence
of correct contracts, and limited supplier responsibility. Such factors would
include lack of economic stability or even the existence of logistical hurdles they
face from outside.
Q4: How do you approach managing supply chain risks including unscheduled
supplies interruption or scarcity?
Ans: Contingency measures are important tools for controlling the supply chain as
far as the unscheduled supply chain risks like scarcity or supply chain disruptions.
Others include disentanglement of suppliers to avoid reliance on a specific
supplier and the holding of safety stock for unexpected incidents. Preparedness
means periodic checks on the existing risks and supplier performance reviews.
Sophisticated demand planning technologies allow us to predict shortfalls and to
regain a greater advantage from them in the event of difficulties via the identified
exclusive supply chain partners.

Q5: Do you know if any difficulties can be faced when trying to install cost-reducing
measures or optimize processes of procurement?
Ans: It is of course possible to detect some difficulties in the implementation of cost-
saving measures or enhancing the contractual belt. The outline below provides
an inspection of how the current project will achieve these objectives through
the following sections: Employees or suppliers may be afraid that they will be
sacked, and their sales shall be reduced, hence change is expected. A capital
allocation for the rationalization of a process by adoption of a technology or
training may appear to contradict the cost cutting strategy. However, if it’s not
 easy to get supplier cooperation in renegotiating contracts or adapting to new
terms.
Q6: Have you ever experienced any problems with introducing such changes that
would enhance procurement effectiveness?
Ans: Employee resistance to new ways of doing things make adoption tortoise slow.
Likewise, suppliers may have trouble changing their own ways of working, to meet
the new requirements. A major challenge is balancing the ability to remain cost
efficient with quality, but with operational continuity during transition is an equally
challenging task which requires careful planning and stakeholders buy in.

Procurement:
Lucky Textile Mills has a gracefully proficient method to deal with their procedure of
procurement. It was here that procurement took its starting point making its journey
all the way to yarn. They don’t use locally produced cotton from Pakistan although
they operate from the country which is the sixth largest producer of cotton because
poor quality produces from local suppliers. Lack of development in Agriculture
engulfs poor quality production. Quality of cotton produced in Pakistan may be
suitable for those course accounts such as denim, and towels but those final
accounts in bed sheets, towels etc require long-staple cotton. Even though lucky
textiles have laid down some strategies to invest in the cotton fields. However, soil
quality needs energy to produce the powerful stem, but it would take time to apply
agriculture engineering. This can be achieved through Research and Development.
Therefore, just like the other textiles Locales, Lucky Textile has no other option than
to import textiles from other countries. Lucky Textile imports cotton selectively from
the USA, Greece, Brazil and some countries of west African. As a rule, yarn is a
specific uncooked material, and it is bought and varies from day to day. Therefore,
prior purchasing is made by the suppliers to eradicate any chance of coming up with
situations that entail stock out. In the case of yarn, the company ordered yarn
according to export or Local retail sales forecast that was received. The same goes
for the acquisition of cotton and gray products. Some of the dyes & Chemicals are
being bought by international suppliers. There are different quotations obtained
from the local suppliers for the chemicals, packing materials and other miscellaneous
items. The PROCUREMENT PROCESS The company follows the procurement
procedure as mentioned below:
1. First, the request comes from its respective departments.
2. Then preparing the requisition form is the next task done by the user.
3. Next, the requisition comes to the Storage, and if the item on the Requisition is in
stock, they can clear up the issue; otherwise, they tell the requester to raise indent
to start with the purchasing process.
4. On examination, the indent is forwarded to the purchasing department. Supply
sources and approved suppliers are then able to provide the department with the
rates.
5. Purchase orders are created and sent to the concerned supplier and supplier
delivers the articles as per agreed term and condition on the right time.
6. Taking the item in the receiving document, the Store adjusts for the quantity on
hand.
7. Finally the Store department then asked for the requisition from the concerned to
issue it from the stores from The Store department..

Purchase Order:
Purchase orders are sent to the vendor or supplier concerned with all required
parameters such as prices, quantity, quantity, etc. Lucky Textiles Mills has deployed
an integrated system for all procurements. This system has been integrated with the
main office to evaluate the daily purchasing activities of all departments and Units.
The Current Framework of Procurement Process
These are consequences, at Lucky Textile Mills, SOPs and pre-defined procedures are
being followed to maintain standards. It all begins with the order of the material from
the production department and from the warehouse department. When the
demand is received, the warehouse department tries to find out which raw material
has been demanded. For the products where Raw Material is available, or the
provided Material touches the buffer stock limit PR-Purchase Requisition is raised
after the inventory check. From here, the procurement department wakes up and
goes operational to get the procurement process going. Mostly this is not needed by
the RFQ and the negotiation according to the price is already in line and quotations
have been pre-evaluated as both the company and suppliers are under the
agreement of the same. Therefore, instead of going through that cycle, PO is made
for the supplier for the preparations of the ordered items and transportation. The
suppliers of Lucky Textile Mills are categorized into two main categories: local and
international. In most cases, the transportation is done by trucks from the local
suppliers while the international suppliers transport the products by docks and ships.
The procurement department is also responsible for the division of the raw material
into two groups, namely: The first class provides seasonal uncooked material. It
needs seasonal buying, so that it can purchase in large quantities and is then stocked
in the storage for a longer duration. These IIT- Just in Time techniques are applied
with local suppliers that are always and all year round. Therefore, there is no having
to arrive at further substances in the warehouse. The dies and chemicals are bought
in large quantities. When making the import, in relation to dealing with international
suppliers LTML was able to exercise economies of scale and economies of distance.

Inventory management:
Inventory is one of the most significant components of the company’s accounts
balance sheets and equities.
free flow of production Lucky Textile Mills have a complete proof that a powerful tool
“Inventory Management device, the usage of the weighted common stock device for
retaining the record. Nonetheless, they prefer to use the FIFO method for the
issuance of the inventory in different units. They are maintaining the least level of
every item, the changes regarding re-ordering the item and the least amount of item
level calculation related to maximum lead time and safety stock. For the sufficient
stock for safety in stock in store the major item is imported, which takes time to
import, and for Dyes and chemicals as per our plan for the next three months orders
we maintain minimum stock. Since the dyes and chemicals are among the most
volatile items, they turn into dead stock after one year of usage of prudent approach
for such items, the average recommended inventory holding period for local dye &
chemicals is two weeks and for imported dyes & chemicals is four months based
upon forecasting. And for stores and spares companies broke down the items in
three categories such as Insurance Items” (That could be required any time in
emergency and keep them in stock to avoid any long stoppage of machines, they
normally include the critical parts for the machine and could take more than 4 weeks
to import. Second one is “Running Items” They are commonly used spare parts and
tool and keep its inventory as per explain above All the spare parts, Tolls and general
items were approved in the yearly budgets department wise, agreed with the
supplier and the cheque is issued for the payment to the supplier.

Lead Time Management

Receiving dock is a main a part of the procurement system of Lucky Textile Mills and
its delivery. Lucky textile's lead time is 90 days after receiving order, if they have raw
material of that product so their lead time will short it will 45 days to complete their
orders.

Material Management
The buying center of Lucky Textile Mills is a part of the procurement system and
refers to the management of supply chains fulfilling an acquisition plan for the
materials of a company. These requirements are made up of managing and
coordinating the inputs to circulation within the production unit while also
evaluating factors such as demand, price, availability, quality, and delivery schedules.
As a result, LTML is pro efficiently managing the best practices in the procurement
and inventory management process. All products, namely fabrics or garments, go
through liaison with multiple suppliers in their supply chain. Receiving dock is one of
the major components of the procurement system of Lucky Textile Mills. There exists,
therefore, a synergy between modern equipment and quality cotton, and vice versa.
Produce acquisition ERP systems are Oracle EBS 12.1 software and Microsoft
Dynamics. These link the company’s business undertakings and help the
management to make decisions on time.

Storage & Warehouse

Once goods are stored after sorting them out in the warehouse, data entry starts.
Receiving dock is a main part of the procurement system of Lucky Textile Mills. The
department is responsible for maintaining the complete record by tallying the
issuance of any raw material to the production department. Receiving dock is a main
a part of the procurement system of Lucky Textile Mills. From main areas to focus on
equipment, layout, and storage policies, it is a huge task to be accomplished by
professionals. More demand is tenfold with each year of population growth. Order
picking is one of the most Important operations in a warehouse.

Order Picking
A warehouse activity can be categorized into 3 categories

Current Framework
Storage
Receiving dock is a main a part of the procurement system of Lucky Textile Mills.
Storage and tracking are partially automated phenomena in this regard. Data Entry
recording of effort, resources, and time. It is abo connected with every SKU that takes
a lot of reorder points. The department can give a green signal to issue the PO
analyzing the stock limit of goods that are available in the warehouse, in the same
way, the items are stored in their designated space with the batch in the warehouse,
those items will be recorded in the system and will become part of the production
process.
Return
The storage of the returned items is also the main case that required resolution.
There is the possibility of returning if the raw material that was issued in extra
quantity or issued wronged, it is not recorded in the system when it comes back to
the warehouse. Now there's the probability that this raw material was recorded at
the one of issuance, but it recorded when it was returners. Ultimately, based on the
statistics shown on was never the screen, more material can be ordered which will
result in decreasing the cost effectiveness and efficiency of the process.
Receiving Docks
Receiving dock is a main a part of the procurement system of Lucky Textile Mills. It is
a specifically relevant to managing at my time of receiving the big shipment including
season raw materials, import usually is in huge quantities which means the trucks
could be blocked. The gates for longer periods. But it's not the case here, thou these
are in big quantities and take more time and manpower to be unloaded and stored.

Transport & distribution

Distribution channels are awesome for each Local and Export order. Their Own
transportation for the distribution to the one plant to other we do the direct
shipment to the customer TRANSPORTATION INBOUND LOGISTICS For inbound
logistics, the piggyback multimodal transportation is outsourced daily via third- party
logistics for mostly yarn Lucky Textile Mills imports its uncooked fabric and is
predicated on imported cotton. The logistics are executed underneath the processes
Its also depends on the contract.
Purchasing and sourcing
Lucky Textile Mils recognizes the raw material needs of them and others, Products
subcategories are accessories such as buttons, apparels, and supplies. To create its
next fashion line in line with forecasted sales demand. The procurement team
collaborates with the designers to discover vendors for each component So that they
can fulfill Luckies prerequires for color, style, quantity, quality and delivery the
purchasing manager then communicates with its vendor.
Receiving
The receiving staff of Lucky Textile Mills record the supply documents, and sort the
materials according to Products, and try barcodes or RFID tags to count on an
experiment. They confirm the state and quantity with that of the purchase order. The
materials further go into a warehouse where they are prepared for manufacturing.
Exports/Business Outbound Logistics
The fishy back multimodal method is implemented for export logistics Scandinavian
countries including Denmark, Norway, and Sweden are the biggest customer
markets/however other markets are also the customer of Lucky Textile Mins Lucky
Textile Mills Mainly sales Apparel and Home to those international locations and the
method is described below.
Customer order
The customer orders an apparel and home text from a sales agent of Lucky Textile
Mills. Mills Lucky Textile Mills makes use of inner information approximately buyers
beyond income preferences, and fashion forecast to pick out the portions of every
product and purchase.
Order processing
LTML order processing tram checks orders by confirming the right garment types,
numbers, colors and sizes then they send the order confirmation to the inventory
management system to allocate these.
Picking
In the warehouses, the group of workers in the garment industry opt for a regional
approach in selecting out up apparels in multiple orders. Workers then take the
garment and hang them on the racks. They use barcodes to differentiate the orders
to send out based on LIFO or FIFO. .All the clothing items ordered arrive at the
packing station. A staff member then Scans the barcodes at the hangers to affirm the
order is correct. The Packers box the order with tissue to avoid wrinkles. They placed
containers on pallets, cut back and wrapped the pallets and fastened vacation spot
and appear labels. The packers split orders as per the requirement of the customer
then load the pallets on the outgoing trucks.
Shipping and documentation/BOL
Lastly, order moves in the direction it must go in. LTML system records the shipment
and provides status report data to the customers’ purchasing department with
information on arrival to the chain’s distribution centers. For this purpose, the BPL,
which has the best-offered services, is used.

Comparative Analysis: Serena Textile Mills vs. Lucky Textile Mills:

Raw Material Sourcing:

Lucky Textile Mills (LTML): The quality of locally produced cotton being low, the
country imports merely raw materials, such as cotton, yarn, dyes and chemicals. Both
local and international suppliers are worked with.
Serena Textile Mills: Serena uses local and imported raw materials and works from
the angle of local supplier relationships to limit reliance on imports. Instead, they
focus on sourcing high quality local cotton for a wider range of lines.
Procurement and Inventory Management:
LTML: It is structured in procurement process with integrated ERP to follow
procurement activities and stock. FIFO method is used for inventory management
and, respectively, it is given much value for critical items in stock — safety stock.
Serena Textile Mills: It also provides ERP for procurement, but with a much more
agile emphasis on inventory control. For different product categories, Serena makes
uses of JIT (Just-in-Time) and bulk procurement to find a balance between stock
levels and demand forecasts.

Supplier Relationship:
LTML: It oversees local suppliers and foreign suppliers, and among them it mainly
negotiates with contract supply for fixed price. However, LTML is experiencing
problems in the management of the fluctuating prices of the raw material and
handling the issue of the quality of the raw material provided by a supplier.
Serena Textile Mills: Lack of long-term supplier partnerships in the areas of cotton
and yarn particularity. For such partnership and development, it minimizes risks of
disruption. However, more importantly, Serena also targets to enhance robust local
chains, apart from countering the dilemma of international trade.

Logistics and Distribution:

LTML: Degrades in multimodal transportation both locally and internationally. They
use sea freight as well as road transportation for domestic deliveries for exports and
aim to minimize the cost for timely dispatch.
Serena Textile Mills: Serena uses both international and local logistics, just like LTML.
In doing so, they put more weight on getting there faster, through better local
partnerships, by cutting as many days off customers’ schedules as possible.

Technology and Innovation:

LTML: Uses modern technology like Oracle EBS, Microsoft Dynamics, that joins
procurement, inventory and logistics management. Storage and racking are also
automated as part of LTML’s effort to increase operational efficiency.
Serena Textile Mills: It does embrace technological innovation in product design and
production and thus ensure that their products meet international standards. Serena
is keen on digitizing procurement processes and building real time data sharing.

Challenges:
LTML: Raw material quality, dependency on imported materials, price, and long lead
times are challenges it faces. Moreover, it’s a difficult hill to tackle as the
management of large seasonal shipments and getting international suppliers’
customs clearance to run smooth are two hurdles.
Serena Textile Mills: The problem they face is managing local supply chains to buy at
the best prices, negotiating terms with the suppliers and maintaining a balance
between quality on the one hand and cost control on the other with rising raw
material prices.
Sustainability:
LTML: There is increasing focus to promote sustainability with initiatives to source
material ecofriendly and reduce waste in the materials management side. But the
issue with sourcing sustainable cotton is the lack of such raw materials locally.
Serena Textile Mills: It’s more dedicated to sustainability in the areas of product
design and sourcing materials. Serena closely works with farmers and suppliers to
achieve environmental practice and waste reduction.

Recommendation

In our perspective, LTML needs to increase attention and effort in developing local
materials. Supplier relationships thus pose a check on the import dependence of
expensive input, especially the cotton to increase product reliability and increase
production effectiveness. For instance, adopting more flexibility in the stock control
system such as increasing JIT practices will bring down the cost of storage and ease
on the acquisition. More capital investment in inventory tracking technology that is
automatic, and analytics related is also required to favorably predict demand and
eliminate supply chain risks. Lastly, LTML should incorporate sustainability policies on
how the company would obtain environmentally friendly raw materials and on how
the firm would minimize waste and this would make the company align with global
trends as well as making the firm more competitive.

Conclusion
Finally, Lucky Textile Mills (LTML) has a well-structured procurement and supply chain
system, local and international suppliers to be balanced to ensure steady flow of raw
materials. Even though they faced dependency on imports, fluctuating prices of raw
material and disruptions in the supply chain, challenges remain. LTML could reduce
operational costs by strengthening relationships with local suppliers, developing more
agile practices such as knowing how many certain items to order, when to order the
goods (Just in Time) and how to predict demand based on seasonality or outbreak
using better technology. Furthermore, sustainability initiatives will also be focused on
reducing the environmental impact of LTML, and a perfect situation for the company
to survive and be competitive in the lucrative industry for long in time to come.
References:
- https://luckytextilemills.biz
- https://heimtextil.messefrankfurt.com/frankfurt/en/exhibitorsearch.detail.html/luck
y-textile-mills-limited.html
- https://www.lucky-cement.com/about-us/group-companies/
- https://sarenapk.com
- https://www.pacra.com/summary_report/RR_1540_10474_29-Jul-22.pdf
- https://www.dnb.com/business-
directory/companyprofiles.sarena_textile_industries_(private)_limited.a919f70383f0
d3a8375d9ad2412 81aa9.html