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New Asia Group: Fibre to Fabric

CASE STUDY, SUPPLY CHAIN MANAGEMENT
ET Cases, 31 Pages

Case Preview

New Asia Group: Fibre to Fabric

 

It was the Ramzan month in July 2014. Mr. Ambarish Chaudhary, the Managing Director of New Asia Group was attending the ‘Milab’ at one of his factories in Dhaka, Bangladesh. ‘Milab’ is a grand feast held during the holy month of fasting to break the fast after sunset. The company had done well in the past but with China and Vietnam picking up, the margin in the textiles business was under pressure and that was worrying Mr. Chaudhary. And with the image of Bangladesh going nosedive, there was cause of worry.

New Asia Group

The New Asia Group is comprised of six individual entities that form a vertically integrated apparel manufacturing organization, headquartered in Dhaka, Bangladesh. Established in 1987, the Group started out with Rahim Textile Mills, a dyeing and printing mill for both knit and woven fabrics. Since then, they have expanded into the production of greige yarn (for both knitted and denim garments), denim fabric, knitted garments, sweater garments and denim garments, which supply some of the world’s most wellrecognized retail brands and are distributed to stores across the world. With over $200m in Sales and almost 15,000 employees in just 30 years, the New Asia Group is one Bangladesh’s leading private organizations and is poised for further growth under the guidance of its dynamic leadership team. Exhibit I gives an overview of the evolution of New Asia Group.............

Teaching Note Preview

New Asia Group: Fibre to Fabric

 

Synopsis

This case study is a classic example of how to move up the value chain from a contract manufacturer to a design house and focus on sales and marketing. The very dynamic nature of the apparel industry poses further challenge to the margins in the supply chain. The case gives an overall perspective of the apparel value chain, its drivers and the vagaries of the shop floor.

The case has a number of exhibits which details out the costing methodology and appreciates the fact how each penny matters. The time and action calendar along with the line loading plan reemphasizes the importance of each activity in the timeline.

Prerequisite Conceptual Understanding

Prerequisite Conceptual Understanding (PCU) material is the background material that would aid immensely in mapping the decision areas of this case study and bring a synthesis amongst the relevant concepts. The participants/students should be encouraged to read this material to benefit from the perspectives outlined in the case study.

This case study presupposes conceptual understanding of the following. A working knowledge along with the business implications of the following concepts would enable an effective discussion leading to more practical solutions than a mere intellectual exercise.

  • • An understanding of end to end Supply Chain
  • • An understanding of the apparel value chain
  • • An understanding of time and motion study

 

Expected Learning Outcomes

  • • Understand the stakeholders and the drivers in the supply chain for an integrated apparel manufacturer
  • • Appreciate the intricacies of each activity in the supply chain
  • • Understand the nuances of the costing methodology
  • • Appreciate the line loading plan for the apparel industry

 

Case Positioning and Setting

This case study can be used in either MBA or Executive MBA or Executive Development Programs, for the following modules/topics in the Supply Chain Management course:

  • • Supply Chain Value drivers
  • • Cost Management
  • • Project Management
  • • Production Scheduling

 

Assignment Questions

The case seeks answers to the following questions:

  • I. What should be done for higher margins in the apparel industry?
  • II. How can Bangladesh retain its competitive advantage in textiles?

 

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Product code: SCM-1-0004, SCM-1-0004A

Abstract

New Asia Group (NAG) is a powerhouse in textiles in Bangladesh. From a humble beginning of a printing and dyeing unit, the company went through a series of forward and backward integration and is the only integrated textile manufacturing company in Bangladesh (spinning, fabric and readymade garments). Presently, NAG has six  group companies, with an expanded product portfolio from woolens to denim. The next step in the journey is to move from being a contract manufacturer to a design house and subsequently have its own retail brand. This case study looks at this transformation journey.



Pedagogical Objectives

  • To understand the stakeholders and the drivers in the supply chain for an integrated apparel manufacturer
  • To appreciate the intricacies of each activity in the supply chain
  • To understand the nuances of the costing methodology
  • To appreciate the line loading plan for the apparel industry

Case Positioning and Setting
This case study can be used in either MBA or Executive MBA or Executive Development Programs, for the following modules/topics in the Supply Chain Management course:

  • Supply Chain Value drivers
  • Cost Management
  • Project Management
  • Production Scheduling



This Case Pack Includes:
- Abstract
- Case Study
- Teaching Note (**ONLY for Academicians)
$4.57
Rs 0

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