SUPPLY CHAIN DESIGN FOR SUPERIOR

UNIFORMS BERLIN, GERMANY

Students: Traian, Hamid, Sohail, Roxana

 CONTENTS

Background of Superior Uniforms

Definition of supply chain design and
types of supply chain ?
Recommended Supply Chain of
Superior Uniforms
Factors Influencing Supply chain
design decision of Superior Uniforms
Conclusion
References
 BACKGROUND OF SUPERIOR UNIFORMS

o Superior Uniforms is a formal workwear

and uniforms company .
o It takes pride in selling high quality
uniforms for men, women and children
at lower cost.
o Based in Berlin, Germany Strategy aims and objectives
o Direct Customers across Germany o Identifying suitable potential
o Supplying Uniforms to Wholesalers all suppliers who are able to meet the
over the World (DHL HUB) defined requirements and
o Outsourcing their products from a pool specifications.
of suppliers in Eastern part of China o Transformation of supplying chain
Current supply chain design: to leagile through increasing the
o Suppliers based in East China responsiveness of suppliers.
o Using shipping containers: o Reducing transportation time and
o Current way of supply chain: lean type cost.
o Improvement in managing demand.
Current issues: o Reducing the inventory level and
o JIT issues, inventory issues, cost efficiency, improving supplier relationship.
suppliers responsiveness issues, flexibility,
dependability, difficulty in managing demand
 SUPPLY CHAIN DESIGN AND TYPES OF
SUPPLY CHAIN
It is an integrative approach to managing and designing supply and distribution networks (Chopra & Meindl,
2007)
Supply chains should not "just happen," they should be deliberately designed and developed the same as
individual supplier members of supply chains are selected and developed (Chopra & Meindl, 2007).
Types of supply chain
Lean: Lean supply chain is a pull based value stream of activities that eliminate waste (Chopra & Meindl,
2007).
Agile: it is s demand-pull chain which is designed to cope with a volatile demand. The design of agile supply
chain is flexible and will often incorporate postponed production (Chopra & Meindl, 2007).
Leagile: Leagile, also known as hybrid strategy, is applied in situations where replenishment lead times are
still long, but now to add the complexity demand is unpredictable (Chopra & Meindl, 2007)
 Supply Chain of Superior Uniforms Gmbh
Second Tier Suppliers

First Tier Supplier

Headquarter
Berlin,
Germany DC Leipzig Germany Superior Uniforms
Europe Direct
Customers
Consolidation Centre
Rail
FOB Horgos Dry Port

Road

Processing Centre- FEZ Brest,

Belarus
First Tier Supplier

Recycling
Centre

Physical Goods Flow( Forward and Reverse Worldwide Wholesalers

Logistics)
Information Flow (Orders, Customer Service) ,
Primary and Secondary Cash Flow)
 o Western part of china
o Xinjiang textiles industry
enjoys export boom (GT
Review, 2016)
o 60% of Chinese cotton
produced in Xinjiang

o Capacity of suppliers :High

o Responsiveness of suppliers = up
to 2 weeks ( depending on the order
specifications)
o Flexibility: High
o Buyers bargaining power: high

http://www.gtreview.com/news/asia/xianjiang-textiles-industry-enjoys-export-boom/
 New Silk Road Highway Sea Container
Average cost: $2200-2500 Trailer Volume: up120m3 Average cost: $3000/40 container Volume:67m3
Risk Factors: High Transit Time: 14-20days Risks Factors: Low Transit Time: 40-50 days

Accelerated trains between Horgos

China and Brest Belarus

Average cost $4000/40 Volume: 67m3

Risk Factors: Low Transit Times: 14 days

http://www.rw.by/en/freight/container_transportation/
 www.dsv.com
Global Transport Company

www.della-kz.com
Road transportation marketplace in Asia
Cost of Transportation Example:
Men Corporate Clothing
30 suits per cbm (bulk packaging)
2,5 kg/uniform
Container maximum volume : up to 67 cbm
Truck Trailer volume: up to 120 cbm
Maximum weight allowed: - 20,185kg container
sea/rail
- 25,000kg semi-trailer
Average cost per item(estimation):
$1.44 per item by road
$1.99 per item by rail http://www.cbmcalculator.com/
$1.49 per item by sea

http://www.fez.brest.by/en/conditions/lgoty/index.html
Distribution and Processing Centre
FEZ Brest, Belarus
Low cost labour minimum wage 100 euro
Embroideries and Personalisation, Alterations,
Buffering Stock and Quick Response.
Lease low cost $ 1,5-2,5/ SQM
Brest Free Economic Zone a territory of a free
customs zone
Low cost packaging, labelling, printing and dying,
remarketing and recycling.
Close to Germany- 10 hours away from DC
Linked with the main motorway M1
Linked with main railway network to Asia- good
connected with Western China Borders
 Leipzig National
FEZ Brest Distribution Centre
Distribution and
Processing Centre
Located in centre of Europe
near the junction major
routes(North/South, East
West)
Closed to Berlin(less than 2
hours) and cheaper cost of
lease.
Wholesalers
Wholesalers
Leipzig Distribution Centre
Closed to DHL International
HUB (Leipzig Airport)
Low distribution costs and
faster,
Linked with DC by motorway
(10 hours journey)

https://pl.goodman.com/en/property/properties-for-lease/lodz-logistics-centre
 FACTORS INFLUENCING SUPPLY CHAIN DESIGN
DECISION OF SUPERIOR UNIFORMS GMBH
Strategic factors
Low cost location but high responsiveness
Technological factors
New modern production facilities developed in West
China
New technologies of printing and dying for clothes
Macro economical
taxation, tariffs, exchange rate, shipping cost
Political factors
China joined TIR agreement in July 2016
Belarus, Russian, Kazakhstan part of Euro-Asian
economic area ( Good relations amongst themselves)
Stability in the Region, developing economies
Infrastructure factors
New Silk Road, building new road infrastructure
direct freight trains to Brest, Belarus
Horgos Dry Port
FEZ Brest ( free economic zone> no customs, tariffs
while the products are in the zone)
Competitive factors
Location of suppliers> Western China, Better
Bargaining Power, More flexibility
Global Distribution and Processing Centre => low
labour cost, reducing taxation,
One DC in Lodz, Poland > strategically located to
access the market fast
Availability of next day delivery- click and collect from
a local store
 CONCLUSION

Supply Chain long term Profits depending on the a good network design
Good network design depending on the identifying all the factors which are influencing
Network optimisation models can help in the design decision in terms of production
facility locations, market allocation, warehouses etc.
 REFERENCES

Chopra, S., & Meindl, P. (2007). Supply chain management. Strategy, planning & operation. In Das Summa Summarum des
Management (pp. 265-275). Gabler.
(2016, November 18). Retrieved from www.dsv.com: www.dsv.com
Asia. (2016, November 18). Retrieved from Global Trade Review: http://www.gtreview.com/news/asia/xianjiang-textiles-industry-
enjoys-export-boom/
Belarusian Railways. (2016, November 18). Retrieved from http://www.rw.by/en/freight/container_transportation/
Frez Best. (2016, November 17). Retrieved from Frez Best : http://www.fez.brest.by/en/conditions/lgoty/index.html
(2016, November 18). Retrieved from Dela Trucking: www.della-kz.com
http://www.cbmcalculator.com/