Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 2, Issue 13; July-September, 2015 pp. 1301-1305
© Krishi Sanskriti Publications
[Link]

A Study on Logistic and Supply Chain Management

System of Hosiery Textile Industry in
Tiruppur City- India
S. Gokilavani1, R. Rajasekaran2 and M. Esther Krupa3
1,2,3
Department of Commerce PSG College of Arts and Science
E-mail: vaniphd3@[Link], 2majordrrrajasekaran@[Link], 3estherkrupa@[Link]
1

Abstract—In Today’s business scenario, the success of business

depends upon various factors and one of the important factors is
logistic and supply chain management system. In order to improve
the performance of the organisation, reduce cost and to achieve
consumer satisfaction the businesses have started realising and
giving importance to logistic and supply chain management.
Objective of this particular study is to identify the factors which are
motivating the logistic and supply chain concept and also to identify
the drawbacks. For the purpose of the study a systematic
methodology has been adopted and through a well structured
questionnaire, primary data has been collected from respective
hosiery textile units in Tiruppur city and required secondary data has
also been collected from the published journal, magazines, articles,
research report etc. The study reveals that the hosiery textile
industries at Tiruppur city are showing continuous progress in
logistic and supply chain because of emerging e-commerce
technology and Global positioning system (GPS). It also shows the
drawbacks such as inadequate infrastructure, inefficient and
unskilled human resource. This study also creates an opportunity for
future research projects and programmes.
Fig. 1: Sub-linkages in each of the above functional areas.
Keywords: Logistic, Supply chain, Methodology, E-commerce,
Infrastructure. World’s growing population has been a key driver of textile
consumption growth in business, because changing lifestyle,
1. INTRODUCTION rising incomes and increasing demand for quality products are
The effective and efficient supply chain has become critically set to fuel demand for hosiery textile industry’s product. The
important for the growth of industry and survival of any Indian textile industry counts among the leading textile
business. Supply chain management (SCM) is a new way of industries in the world. Textile is one of the oldest, largest and
thinking that takes a total view of the business process starting significant industrial sectors in India. All the segments of the
from the source of supply to the point of consumption or textiles value chain are doing well at present both in the
usage. Hence, SCM is the integrated management of all the domestics and global markets.
linkages and value added services from the supplier’s supplier Due to emerging competition in the dynamic markets of
to the customer’s customer. Integrating the supply chain to globalised economics of countries across the world, business
improve logistics efficiency is the key challenge. It should organizations the world over have realised that the business
integrate the three individual business processes of process of satisfying the demand of the customer is of critical
procurement, asset management, supply chain enterprise importance to them. It was clear to these business firms today
application, supply chain planning, supply chain strategy, having taken logistics and supply chain initiatives more
logistics and product lifecycle management. seriously than ever to maximise the profit and help the
organisation to succeed in the competitive market.
1302 S. Gokilavani, R. Rajasekaran and M. Esther Krupa

1.1. Statement of the problem from the total population. Period of study restricted to 12
months (From 1st April 2013 to 31st March 2014). For the
The consumer market consists of so many products that are purpose of the analysis descriptive and rank analysis tool have
produced all over the world and put together at one location. been adopted and the same interpreted in the form of tables
There is a global journey from producing cotton to and charts.
transforming it into textile garment and then selling it. The
management of such chains, its design, process execution, 1.5 Limitations of the study
transport and control is logistics and supply chain
management. In this process the Tiruppur hosiery textile • It Confined only to Tiruppur city of Tamilnadu state,
industries are carrying out the logistic and supply chain India.
activity in a systematic manner with certain constraints. Some • It deals only with hosiery textile industries
of the key issues of logistics and Supply chain practices create • Data related only to the period from 1st April 2013 to 31st
impacts on the performance of hosiery textile industries. In March 2014.
order to identify the factors which are influencing the above • It deals only about Logistics and Supply chain system
industry and also to understand the real supply chain adopted by the hosiery textile industries.
drawbacks in this particular study have conducted by the
researcher. 2. REVIEW OF LITERATURE

1.2. Objectives of the study Textile World1, Dec2002, Focuses on the importance of
investing in supply chain management for the textile industry
• To study the performance of logistic and supply chain in the U.S. Reduction of processing time; Automation and
system in hosiery industry. integration of global supply chain; Reduction of production
costs.
• To identify the factors which are influencing the logistic
and supply chain system. Apparel Magazine2, Aug2003, This article
presents information about developments in the apparel
• To analyse the drawbacks which affects the logistics and
industry of the U.S. Apparel Search Co. introduced a new
supply chain system
division, Apparel Search Logistics, to provide supply chain
• To offer suggestions based on the study. management consultation services to the clothing and textile
industries. Gerber Technology announced profits of $13.4
1.3 Scope of the study million and revenues of $154.1 million for its fiscal year
The purpose of this study is to investigate the performance, ended April 30, 2003, compared with profits of $10.5 million
current scenario and future prospects of logistics and SCM and revenues of $158.1 million in the prior year. Nester
practices of Tiruppur hosiery textile industry. Based on the Software Technologies Inc. and Albrecht Bäumer GmbH&
finding, the hosiery textile industry would be able to initiate Co. KG have formed an agreement in which Albrecht Bäumer
new technology and motivate for suitable logistic and supply will become the exclusive worldwide distributor of the
chain management system. The study will be useful to the NESTERfoam™ automatic foam nesting software solution.
hosiery textile industry to understand the real scenario and NESTERfoam™ has been fully integrated with Albrecht
maximise their profits. It also provides a theoretical Bäumer's WINCAP CAD/CAM system.
framework to understand the logistic and supply chain system Wallace, Stein W. Tsan-Ming Choi3 2011, The article
and the performance of selected industries in the city and presents an introduction to the journal offering information on
argues in the favour of Logistic and SCM system to meet the various topics dealt in it including challenges for the British
largest challenges. apparel supply chain management, adapting lean
1.4. Research Methodology manufacturing principles to the textile industry, and mass
customisation in the Hong Kong apparel industry.
The research has been carried out by adopting the following
Maurer, Bettina5, 2013, The article reports on a panel
research methods along with statistical tools and techniques.
discussion on the subject of corporate social responsibility in
Sources of data have been used both primary and secondary.
the clothing industry, held in Mönchengladbach, Germany.
Primary data have been collected from hosiery textile units in
Topics of discussion included unfair labor practices and
Tiruppur through well defined questionnaire. The
unsafe working conditions in the global textile industries, the
Questionnaire has prepared in simple and understandable way
problem of transparency in supply chain management sytem,
so as to enable the respondents to express their views of
and consumer education.
opinion freely and frankly. Secondary data was collected
through journals, magazines, articles, research report, 3. DATA ANALYSIS AND FINDINGS
newspapers and from internet. Area of the study is confined to
Tirupur city only. Random sampling method has been This part reveals that the analysis and findings of the study on
adopted. There are only ten hosiery textiles units have selected logistic and supply chain management system of hosiery

Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 2, Issue 13; July-September, 2015
A Study on Logistic and Supply Chain Management System of Hosiery Textile Industry in Tiruppur City- India 1303

textile industry in Tiruppur city. The data collected from the Table 2: Average growth rate of logistic operation (Quantity
hosiery textile industry were systematically analyzed and handled) of leading textile hosiery units.
presented in the form of tables and charts. And also arranged S. No. Name of Company in Tiruppur Average Growth
in such a way that a detailed analysis can be made so as to city Rate %
present suitable interpretations for the same along with chart. 1. Eastman Exports Global Clothing 17%
P Ltd
Table 1: Annual turnover of leading textile hosiery units.
2. Aviram Knitters 13%
3. SCM Garments Pvt LTd 15%
S. Name of Company in Annual Turnover 4. Best Corporation Pvt Ltd 14%
No Tiruppur city in US Dollar. 5. Poppys Group of companies 13%
1 Eastman Exports Global US $ 250 Million 6. K M Knitwear 09%
Clothing P Ltd 7. Armstrong Knitting Mills 13%
2. Aviram Knitters US $ 220 Million 8. Graffiti Exports 09%
3. SCM Garments Pvt LTd US $ 110 Million 9. Dollars Apparel 11%
4. Best Corporation Pvt Ltd US $ 100 Million 10. Sudhama Hosieries 12%
5. Poppys Group of companies US$70 million
6. K M Knitwear US $ 35 Million Interpretation
7. Armstrong Knitting Mills US $ 25 Million
8. Graffiti Exports US $ 6 Million
From the above table, it is clearly understood that the Logistic
9. Dollars Apparel US $ 6.9 Million
and supply chain system of organisation helps to increase their
10. Sudhama Hosieries US $ 4.5 Million
business turnover. According to the above information’s
Eastman Exports Global Clothing Private Ltd shows 17%
growth rate in logistic operation among hosiery exporters in
Tiruppur and followed by SCM Garments Private LTd, and
Best Corporation Pvt Ltd 15% and 14% respectively.
Table 3: Motivating factors of Logistics and SCM in
Hosiery Textile industry
[Link] Factors Rank
1. Government schemes I
2. Information and intelligence II
3. Technology and network system III
4. Human resources IV
5. Adequate infrastructure V
6. Maximisation of profit VI
7. Market condition VII
8. Cost in operation VIII
9. Speed in operation IX
10. Geographical Features X

Chart 1 showing the annual turnover of textile hosiery

industry.
Interpretation
From the above table, it is clearly understood that the Logistic
and supply chain system of organisation helps to increase their
business turnover. According to the above information’s
Eastman Exports Global Clothing Private Ltd as got number 1
financial status among hosiery exporters in Tiruppur and
followed by Aviram Knitters and SCM Garments Private LTd,
US $ 250 Million, US $ 220 Million, US $ 110 million
respectively.
Chart 3: Showing the motivating factor for logistics and
supply chain management

Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 2, Issue 13; July-September, 2015
1304 S. Gokilavani, R. Rajasekaran and M. Esther Krupa

Interpretation
Percentage 2%
The above table reveals that the motivating factors for 12% 20%
logistics and supply chain operation of hosiery units in
3%
Tiruppur city based on ranking analysis. The researcher has
identified ten different motivating factors according to the
discussion made with hosiery units. Out of 10 different 12%
motivating factors the most influential motivating factors is 8%
government schemes, policies and programmes because that
2%
only provides the complete infrastructural facilities to support 1%
the smooth and free flow of goods and services from the origin 9% 4%
to the respective destinations. Hence it stands number one.
They also accepted that adequate information and intelligence 11% 16%
for logistics and supply chain as rank number 2 and followed
by innovative technology and logistic network system.
Hence it is concluded that the government schemes, policies
and programmes are the most influential motivating factor for 4. SUGGESTIONS
successful logistics and SCM for hosiery textile industry in
Tiruppur city. Based on the collection of data, analysis and findings were
Table 3: Logistics and SCM problems in Hosiery Textile industry made the researcher has given certain suggestions which are
pertaining to logistics and supply chain management system of
Tiruppur textile hosiery industry. The following are the
S. No Particulars Percentage
suggestions of the study.
a) Poor Infrastructure 20%
b) Lack of warehouse and storage facilities 8% • The textile hosiery exports are expecting more support
c) Lack of Adequate transport facility 2% from government departments. Hence the related
d) Lack of Adequate equipments 1% governments departments are expected to create more
e) Environmental drawback 4% opportunities and motivate the logistics and SCM system.
f) More cost 16%
• Infrastructure for logistic and supply chain operation
g) Lengthy Government procedures 11%
needs to be improved with the help of local bodies and
h) Lack of technical knowledge. 9%
Communication network problem 12%
also from recognised trade associations of the industries.
i)
j) Lack of co-operation from LSP 3% • There is a need to improve efficiency and performance of
k) Lack of support from skilled labour 12% skilled labour through training and development.
l) Lack of support from Agencies / 2% • The units are also expected to upgrade and modernise
Authorities with latest technology, so that the logistics and supply
Total 100 chain management system can meet domestic as well as
global competition.
Interpretation • The satellite communication network system (SCNS),
The above table reveals that the problems of logistics and Global Positioning system (GPS), Information and
supply chain operation of hosiery units in Tiruppur city based communication technology (ICT) and mobile tracking
on percentage analysis. The researcher has identified ten system need to be upgraded and it should be adopted for
different problems which are affecting the exporters, the smooth functioning of the logistic and supply chain
according to the discussion made with hosiery units. Out of 10 management system.
different problems the most influential factors is poor
5. CONCLUSIONS
Infrastructure, More cost for transportation, lack of support
from skilled labour and communication network problem. The latest trend of textile field in India reported as 29.7%
Therefore these are the problems which are highlighted by the growth in the current financial year 2014-2015 i.e., Rs.
tirupur exporters. 8,646.52 croces compared to Rs. 6,665.93 croces in the
Hence it is concluded that the poor Infrastructure, More cost previous year. Growth in terms of foreign currency 16.91% it
for transportation, lack of support from skilled labour and is only because of smooth and active logistics and supply
communication network problem are the affecting problems chain operations. Hence it is concluded that the hosiery textile
for successful logistics and SCM for hosiery textile industry in industry situated in Tiruppur showing better performance in
Tiruppur city. terms of turnover as well as revenue. Based on the study it is
clearly understood that among all factors, the most influential

Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 2, Issue 13; July-September, 2015
A Study on Logistic and Supply Chain Management System of Hosiery Textile Industry in Tiruppur City- India 1305

factors in logistics and supply chain management are

government schemes, policies and programmes and followed
by information and intelligence and also innovative
technology with proper communication network system.
Though the concept logistics and supply chain introduced in
our country a decade back, the industries are started following
and applying for comfortable business environment. This
particular research has not only highlights logistics and supply
chain concepts it also provides a room for future research
opportunity.
REFERENCES

Books
[1] Amit Sinha, Herbert Kotzab , Supply chain management- A
managerial approach, Tata Mcgraw Hill Education Private
Limited, New Delhi.
[2] Anurag Saxena, [Link] Siecar, Logistics and Supply
chain management, Jaico Publishing House.
[3] Shoshanah Cohen and Joseph Roussel’s new edition of book
“Strategic Supply Chain Management"
[4] Janat Shah, Supply Chain Management, Author: Publisher:
Pearson (2009)
[5] Donald R. Cooper Pomela S. Schinder, Business Research
Methods, McGraw Hill Publishing, New Delhi.
[6] Gupta, S.P. & Gupta, M.P. (2002), ‘Business statistics’ published
by Sultan Chand & Sons, 12th revised and enlarged Ed.,
[7] Dr. Sharma D.D. (2001), ‘Marketing Research’,Principle
applications and cases, New Delhi, Sultan Chand & Sons,
reprint.
[8] Donald j Bowersox, David J Closs, M Bixby Cooper, Supply
chain logistics management, McGraw Hill Publishing, New
Delhi.
7.2 Articles / Journals
[1] The UTI journal of supply chain management, Vol.X, No.4
[2] The Indian Textile Journal, January 2014, pg no 19 and 20
[3] Indian Garments Exports (1995) – Implications of the MFA
Phase-Out, Export-Import Bank of India, Occasional Paper 34,
Bombay.
[4] [Link]. 6/6/2013, Issue 23, p038-038. 1p.
[5] [Link] Planning & Control. Apr2011, Vol. 22 Issue 3,
p209-209. 1p.
[6] Human Systems Management. 2012, Vol. 31 Issue 2, p111-121.
11p. 2 Diagrams, 8 Charts.
7.3 Website
[1] [Link]
[2] [Link]
[3] [Link]
[4] [Link]
[5] [Link]
[6] [Link]

Advances in Economics and Business Management (AEBM)

p-ISSN: 2394-1545; e-ISSN: 2394-1553; Volume 2, Issue 13; July-September, 2015