1 Supply Chain

The textile industry has a complex production network which spans across many businesses and
also crosses International boundaries[ CITATION Bib11 \l 1033 ]. A supply chain generally
links many businesses/ companies together, like suppliers, intermediaries, production facilities,
logistic providers, vendors and customers. Within the supply chain there is exchange of
information, physical product and finances. The supply chain components and decisions of
NoorTex are as follows:
1.1 Forecasting Demand
Forecasting for the demand of Yarn product is based on seasons. Hence the yarn type that is
expected to have a high demand in summer is produced before summer approaches same is the
case with the yarn demanded in winter. Coarser yarn is used for warm cloths hence its raw
material is prepared before winter season actually starts. Fine yarn is used for summer cloths
hence it is prepared in February and March (a season before the actual season).
Hence the forecast of yarn demand is directly linked to the type of clothes that will be in high
demand in the coming season.
1.2 Raw material
Raw material is the basic component for any manufacturing business. When it comes to NoorTex
as it is a spinning and doubling company, its raw materials are as follows:
 Cotton fiber
 Paper cones (that carry the produced yarn)
 Poly poperine bags (for packaging)
 Cartons
Cotton fiber is obtained both from local suppliers as well as imported from foreign suppliers.
NoorTex imports fiber mainly from Bahrain, a textile company named ‘Manama Textile Mills
Company’ is the main supplier from Bahrain for NoorTex. The local supplier for fiber to
NoorTex is ‘Ibrahim Fiber Company’ based in Lahore. The Paper cones are obtained from
various local suppliers in the market. PP bags and Cartons are also purchased locally.
The orders for raw material are placed according to the estimated forecast of volumes needed for
the demand of yarn to be fulfilled. The order is placed via e-mail as well as call. If the raw
material is ordered from Bahrain it takes 30 days, after the order has been placed for the raw
material to reach NoorTex, and it takes One day if the raw material is ordered from within
Pakistan.
Production and lead time
The raw material is converted into the product which is yarn thread. NoorTex currently has the
capacity to produce 18 bags per day, each bag weighs a 100 pounds. That means an average
order of 100 bags takes 5 and a half day to complete. However if the order is of customized yarn,
it can take longer. For example yarn on ‘baby cones’ instead of standard cones can take upto 8
days to complete an order of 100 bags. Recently a towel company has placed an order of 800
bags and it will take 45 days for NoorTex to complete that order.
1.3 Warehousing and storage
NoorTex has warehouses that have the capacity to store 2000 bags weighing 100 pounds each, of
finished product that is yarn. The yarn thread can be stored for as long as a year before it loses its
quality. NoorTex also has a capacity to store up to ten thousand kilos of fiber that is the primary
raw material.
A buffer stock of minimum 2000 kg of fiber (raw material) is maintained and at least 200 bags of
the finished product is kept as the buffer stock, which can go up depending on the foreseen
demand.
NoorTex closely monitors changing government policies on cotton and other trends that affect
the supply and in turn affect the prices for raw material. If the price is expected to rise in the
coming days, NoorTex purchases cotton and keeps it in storage.
1.4 Marketing channel partners
The main channel partners or primary customers of NoorTex are retailers and wholesalers, who
buy yarn products from NoorTex and sell it to weaving factories. Hence NoorTex does not
directly deal with weaving industry, however some cloth producing companies also purchase
yarn from NoorTex, such as towel company.
1.5 Logistics
NoorTex has outsourced its logistics needs to a company i.e., ‘Malik Mushtaq Goods and
Transport Company’ the logistics partner is responsible for the transport of incoming raw
material and other goods that include equipment, packaging, cones. However NoorTex does not
offer transport or delivery to its customers, the customers send their own trucks or arrange for the
transport of their bought products.