<Topic Name>

Submitted
By

<Student
Name>

(SAP ID: )

Under the

Guidance of

<Name of Guide>

A DISSERTATION REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR FULFILLMENT OF THE REQUIREMENTS FOR
<Name of Program>

OF

CENTRE FOR CONTINUING EDUCATION

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN
1
 Acknowledgement

At the outset I would like to express my gratitude to the UNIVERSITY OF PETROLEUM

& ENERGY STUDIES, DEHRADUN for the opportunity to gain knowledge in the domain
of logistics and supply chain management.
I am deeply grateful to Name of guide for his assistance and guidance and for providing
me with continual support in my dissertation work

I would like to express my gratitude to the management of ____________for allowing

me to carry out research work in their facilities (to be used if required).

<Student Name>
<SAP-ID>
<Signature of Student>

2
 Declaration by Guide

This is to certify that Student Name___________a student of MBA in logistics and

supply chain management SAP ID ________of UPES has completed this dissertation
on “Factors affecting lead time and reasons of late shipments in Indian apparel export
industry” under my supervision

Further this is to certify that the work is based on the investigation made, data collected
and analyzed by her and it has not been submitted to any other university or institution
for award of any degree. In my opinion it is adequate in scope and utility, as a
dissertation towards partial fulfillment for the award of degree of <Name of Program>

<Guide Name & Details >

<Signature of Guide>

3
 Declaration by Student

I Student Name______ a student of MBA in logistics and supply chain management

SAP ID _______ of UPES, declare that dissertation titled “Factors affecting lead time
and reasons of late shipments in Indian apparel export industry” was carried out by
me in partial fulfillment of the requirements for fulfillment of the requirements for
MBA (logistics and supply chain management) of university of petroleum & energy
studies Dehradun
It is my original work and has not been submitted to any other organization for any
purpose.

<Student Name>
<Signature of Student>

4
 Table of contents

S. no. Title Page number

1 Acknowledgement 2

2 Declaration by guide 3

3 Declaration by student 4

4 Introduction 6

5 Literature review 8

6 Need of research 12

7 Research design 13

8 Results and discussion 16

9 Conclusion and recommendations 29

10 Bibliography 30

11 Questionnaire for survey 31

5
Chapter 1 Introduction

Indian apparel export industry is one of the largest industries in India providing direct
and indirect employment to over 3 million people. The apparels export accounts for 17%
of total exports. It contributes almost 2% to India’s GDP. It has been estimated that
India has approximately 30,000 apparel-manufacturing units and around three million
people are working in the industry. India has 4.3 per cent of the global textile market
share and approximately 3.3 per cent of the global apparel market share in 2006
(Business World 2004, WTO 2007). Indian apparel export sector comprises
approximately 7,500 firms registered with Apparel Export Promotion Council (AEPC).
However this sector is also one of the largest unorganized sectors in India. The intense
competition from other countries like Bangladesh and China, especially in the post WTO
regime has created a need for this industry to be more competitive in terms of cost,
quality and lead time. Apparel being a fashion item with small shelf life, a lot of stress is
being imposed by the buyers to cut the lead time of shipments. Lead time is the time
duration from receiving an order to shipping it to buyer. Normally ex-factory date is
considered as shipping date. Lead time is expressed in number of days.

The Indian exporters are therefore compelled to accept orders with short delivery
commitments. Inability to deliver the shipments in the committed time leads to high
costs to the exporter in terms of compensations and even to the extent of cancellation of
orders.

Timely shipment is one of the causes of concern for apparel exporter, there being a
number of factors affecting the timely shipment. The factors are internal as well as
external. The internal factors include high rejects, low productivity, excessive time for
pilot studies etc. The external factors include reasons like non fulfilment of commitments
by the vendors and even the frequent specification changes by the customers.

The inability to ship the goods in committed time not only causes a heavy financial loss
to the exporters but also impacts the customer confidence and eventually affects the
market share of Indian apparel export trade.

The supply chain of the apparel industry is depicted in the following diagram.

6
The apparel supply chain consists of a large number of processes usually carried out by
different elements and that makes the management of lead time even more complex.

This study is an attempt to identify the factors that affect the lead time and result in late
shipments of apparel export orders.

7
Chapter 2 Literature review

It has been estimated that India has approximately 30,000 apparel-manufacturing units
and around three million people are working in the industry. India has 4.3 per cent of the
global textile market share and approximately 3.3 per cent of the global apparel market
share in 2006 (Business World 2004, WTO 2007). Indian apparel export sector
comprises approximately 7,500 firms registered with Apparel Export Promotion Council
(AEPC).
With the phase-out of MFA quotas and termination of the same at the end of the ten-
year transition period on 31 December 2004, the apparel exporting countries are
competing intensely with each other for market share without the umbrella of bilateral
quota system. China, Bangladesh, Pakistan, Mexico, Vietnam, and Sri Lanka are posing
a tough competition to India in the international market. India has 3.3 per cent share in
world apparel trade in 2006 and is facing stiff competition from countries like China
(30.6 per cent), Turkey (3.8 per cent), Bangladesh (2.8 per cent), and Mexico (2.0 per
cent).
India has not been able to take much advantage of the opportunities coming its way due
to certain structural constraints, whereas China has set about altering the post-quota
scenario with latest technology, huge capacity building, and innovations to capture
larger chunk of the global trade. Huge industrial facilities in the form of apparel
complexes are being developed in China (Business World 2004). The analysis reveals
that countries like Turkey, Mexico, and Bangladesh have managed to increase their
share due to certain factors like market proximity or due to duty free access into the
importing country, whereas India did not have any such advantages. Still, India has
been registering a growth rate though not so impressive.
Apparel exporters need to make efforts to reduce the lead time in a planned manner,
from the stage of order placement to delivery. Exporters have to understand that
apparel in general and fashion apparel in particular are perishable products. Exporters
need to provide considerable attention towards quick sample development, fast
turnaround in production, and shorter lead times..

China has a 13 per cent cost advantage in shipping garments from Shanghai to the US

8
east coast. Also, only transportation time from India to the USA is twenty-four days as
compared to eighteen days from Thailand, fifteen days from China, twelve days from
Hong Kong. In the case of customs processing, India takes 10.3 days as compared to
seven days in Korea and Thailand (Winters and Mehta 2003 cited in Ananthakrishnan et
al. 2005). Another study conducted by World Bank highlights that Indian transaction
costs are 15 per cent higher than that of its competitors (Business World, 2003).
Apparel has to be, often, airlifted because of the delays associated with poor
infrastructure, which adds to the shipping cost and making apparel exports from India
less competitive. The Government of India should take immediate steps to improve the
existing road, rail, power, and port infrastructure. High cost of power, poor rail and road
system, and lack of adequate facilities at the ports increase the transaction cost of the
apparel exporters.

As per Amit Gugnani, senior vice president, Fashion (Textile and Apparel), major
strengths of Indian apparel industry are

1. A large raw material base

2. Design skills
3. Ability to handle small orders
4. Trained and skilled manpower

As per a study by C. K. Karekatti, garment exporters catering to high fashion markets

demand a responsive supply chain with a very short lead-time. CMT exporters in India
typically work with a lead-time of 75-90 days, vertically integrated plants are known to
work with even longer lead-time. With turnaround time becoming a prime factor in
attracting business, manufacturers are increasingly exploring options to reduce the
cycle times.
The reasons of shipment delays in the apparel export industry have been identified as
below

9
 Activity Specific causes for delays
Lack of clarity regarding exact customer requirement, in terms of
styling, fabric specifications, trims , constructional clarity and
consumption.(Between both sampling & merchandising)
Lack of technical understanding regarding exact
customer requirement wrt. Form and Fit of the Garment,
resulting in repeated communication and reworks.
Pre-
Poor flow of buyer communication between merchandising and
Production
sampling.
activity
Poor planning, especially in prioritizing the sample delivery
schedules.(FIFO etc)
Fixed pick up time by courier service providers often result in
failure in meeting the pickup deadline for ready samples arriving
a little late from sampling Dept.

Loss in production due to non-availability of work aids, like

attachments and folders, when the new style hit the bulk
Production.
IE No history record of the problem faced at Product development
stage is maintained to counter similar problem when the bulk
production is initiated.

Delays caused in receiving trims due to fixed delivery time lines

given by buyer nominated vendors.
Non availability of alternative /substitute vendor to counter
Purchase
contingency
Delays caused in approval of trims.

Delays caused due to manual tasks of generating hard copies

Administration for authorization

Delays caused due to high operator absenteeism

Production Delays caused due to Non-availability of required skill set etc.

Delays caused due to shipment clearance procedures. Delays

caused due to failure in meeting the shipment window.
Post Particularly for vessels leaving to destinations on a particular
production day of the week. Missing the cut off date at port causes the
activities consignment to be delayed at port .It also incurs additional cost
by way of dock charges.

When asked why Indian apparel export is increasing fast but not the same for
Bangladesh, Bangladesh Garments Manufacturing and Exporters Association (BGMEA)
10
President Siddiqur Rahman said, “Garments buyers are going to Indian market from
Bangladesh due to inefficient port facility and extra lead-time”. He also informed that the
value of taka against dollar, poor infrastructure and shortage of power and gas are the
key challenges for the export oriented RMG sector.

India recently is expecting to earn USD 20 billion in FY 2017-18 banked on the

competitive advantages the country has got recently. Bangladesh on the contrary is
fighting heard with the cost increase and infrastructure back logs. BGMEA asked for
immediate policy support from the government.

According to BGMEA, the government meanwhile has ordered all the ports including the
port of Chittagong to remain open for 24 hours for 7 days of the week to ease the export
activities. The government has also taken several positive steps at Hazrat Shahjalal
International Airport, which has reduced the lead-time.

Kathuria, Lalit Mohan Singh, Raghbir (2008) state that lead time in Apparel industry
plays a vital role, so every department has to focus on Lead time reduction to meet the
customer’s demand properly. Lead time can be measured on the total manufacturing
process it indicates how quickly raw material is converted into finished product. Lead
time will be the one of the most important factor which will help the organization to gain
competitive edge in global competitive environment of global business which is driven
by customer’s expectations.
Shahidul Kader, M.Sc., Maeen Md. Khairul Akter (Nov2014) in their study on “Factors
affecting the lead time for export of readymade Apparels”, states that An extended lead
time is one of the major problems that the apparel sourcing world is facing when
exporting readymade apparels from Bangladesh is concerned. Apparel sourcing bodies
are one of the major stake holders of the readymade apparel trade and they endow
their investment in improving the factors affecting the lengthened lead time issue.
Improvement of the backward linkage industry to a standard to be able to support the
readymade apparel industries with export quality fabrics is a continuous process and it
will take some time. But the development of the production and manufacturing system
can be implemented in a short while and it has a proven impact on the lead time.

11
Behrooz Asgari and Anyul Hogue in their study on “Leadtime management in garments
industry: A system dynamics exploration” states that, the demand driven apparel
industry is increasingly being marked by its players (brands, retailers and specialty
stores) competing for who can move faster their fashions to better respond to today’s
time sensitive customers. This competition of running against time has posed a great
deal of challenges which are ultimately to be kept pace with by the apparel
manufacturing firms. Therefore, time (lead time for garments delivery) has become a
crucial performance parameter among apparel manufacturing economies around the
world.

Need of research

The Indian apparel industry being one of the largest contributors to India’s exports and
also contributing significantly to the Indian GDP is significant for the counties economy.
It is therefore important that the industry enhances its competitiveness and secure its
place in the world trade. Lead time is one of the most important factors towards this
goal. So it is important to understand the factors that affect the lead time and the
reasons causing the shipments to be late. The understanding of these aspects will help
the industry to manage the export orders better and control the lead time of the
shipments.

12
Chapter 3 Research Design

3.1 Research problem

The research was aimed towards identifying the factors affecting the delay of the
apparel export orders and measures to reduce the same with an objective of minimizing
the problem of late shipments and subsequent tangible and intangible losses arising out
of same.

3.2 Research objectives

The proposed research has following objectives

1. To identify the stages in the apparel supply chain affecting the shipment delays
2. To determine the significance of identified factors in timely shipment of export
shipments
3. To establish reasons of late shipments in apparel export orders

3.3 Research Methodology

Research was carried out in following steps
• Literature review was carried out to identify the reasons of export order
delayed. Literature review was used to form a general understanding of
various factors responsible for delayed shipments.
• The managers of apparel export houses were interviewed to develop
understanding of the reasons of delay in shipments in apparel industry.
• A structured questionnaire was prepared for seeking feedback on the
significance of various factors identified.
• The questionnaire was administered to 15 senior managers
• The responses were analyzed to understand the manager’s perception of the
significance of significance of factors leading to shipment delays.

13
 • A sample of 10 apparel export orders was selected and the reasons for these
orders being late were identified.
• The analysis was done to identify the frequently affecting factors.
• The perceptions of managers were compared with the data of delayed export
orders.

3.3.1 Research flow

Literature Development
of

Identifying the Administering

factors the
affecting lead questionnaire

Collection of
data relating
Analysis of
to late

Recommendat
ions and

3.3.2 Type of research: The research is descriptive in nature. It describes the reasons
and factors affecting lead time and timely shipments of apparel export orders. A
combination of qualitative and quantitative techniques has been used for the research.

14
3.3.3 Sample: The data was collected from apparel export houses in NCR region. The
sample was four units of Radnik exports, located in NCR Region.

3.3.4 Sample size: Data of 10 delayed export shipments was analyzed. Senior
managers of the organizations were the respondents for the questionnaires relating to
factors affecting lead time. The total number of respondents was 15.

3.3.5 Research tool: A questionnaire was developed for collecting data on the factors
and reasons affecting lead time.

The questionnaire addresses the following

1. Stages in apparel supply chain

2. Factors affecting lead time
3. Relative importance of the factors
4. Causes of delayed shipments

3.3.6 Data Collection: Both qualitative and quantitative data was used for study.
Primary data was used for the purpose of study. The data relating to late shipments was
be collected from the apparel export houses. The qualitative data was collected from the
respondents of the questionnaire.

15
Chapter 4 Results and discussion

Fifteen senior managers of the export houses were interviewed to ascertain the reasons
of shipments being late. On the basis of literature survey and interviews, 14 reasons of
late shipments were identified

Lack of clarity regarding exact customer requirement

The buyers in the export business are from different countries and many a times there is
communication gap between what they want and what the exporter understands. There
is also a scope of unstated but intended requirements which surface at a later stage.
These miscommunications lead to lack of clarity and need repeated changes and
reprocessing causing the delay in delivery.

Lack of technical understanding

Many personnel in the export houses are not technically qualified and are unable to
interpret the technical specifications correctly. This leads to rejection at various stages
of production leading to excessive lead time.

Poor flow of information between sampling and merchandising

The formal communication systems in the apparel export industry are very weak. The
right information is not available at right time to the personnel, thereby causing the delay
in processes and eventually delays in the shipments.

Poor planning in sample delivery schedule

A considerable time is lost in sample approvals before the production process is

initiated. The delay in sample approval is from the exporter’s side and from buyer’s side
both. This lost time in sample approval causes delay in shipment because the
production process cannot start before the samples are approved by buyers or their
representatives

16
Failure in meeting pickup deadline by courier service

The courier services are responsible for delivering the samples to the buyers in
committed time. However failure to meet deadlines by courier service further adds to the
time required for sample approval and hence shipments get delayed.

Loss in production due to non-availability of work aids, like attachments and

folders

Inadequate inventory control systems for the consumables, causes a process to stop
because of absence of machine attachments and process aids. The stoppage of
processes causes the complete process to stop because the apparel industry works on
the assembly line system.

No history records of problem are made

The problems as they come are handled and closed on the spot. Efforts to record the
history of problems and to train the workers and staff to avoid those problems are not
evident. As a result the similar problems surface again and again, resulting in disruption
of production activities.

Delayed deliveries by vendors

The lead time of the exporters depends a lot on the supplies from vendors. The vendors
include fabric suppliers, accessory suppliers, dyers and printers, embroiders etc. The
vendors frequently miss their committed lead time leading to stoppage and disruption in
the production process.

Non-availability of substitute vendors

The vendors generally are working for more than one exporter at a time and during
peak business season, the vendors are not available for completing job work in the
required time frame. For specific services like computer embroidery and printing, the
number of available vendors is very small and it adds to the problem.

17
Delays in approvals for purchase

The procurement in most of the apparel export houses is centralized. As a result,

procurement cannot be effected unless approved by the authorized manager who very
frequently is CEO himself. The procurement cycle in the apparel export houses is large
generally involving 4 or more stages and it results in late purchase and thereby delay.

Delays due to high operator absenteeism

The apparel export process is highly labour intensive. It includes workmen with
specialized skills also. The total workforce employed in an apparel export house is very
high. The industry is facing a problem of high absenteeism especially during festive
seasons. It creates a lack of human resources and causes the production process to be
delayed.

Delays due to non-availability of required skill set

The selection process in the apparel export industry is not scientific. Also the HR
practices like skill evaluation and training is almost nonexistent. The result is high level
of rejections in the produced goods which cause a longer lead time for shipments.

Delays due to shipment clearance procedures

The regulatory framework for clearance of export shipments is quite stringent. The
shipment has to pass through various stages of inspections and approvals before it can
be cleared for sailing. This long and cumbersome process causes the ships to be
missed a number of times and result in drastically high lateness of shipment.

Delays due to failure in meeting shipment window

Non availability of space on specific ships because of poor planning also sometimes
adds to shipments being delayed.

18
A questionnaire was prepared on the basis of above discussions and was endorsed to
15 respondents. The respondents included merchandisers and export managers of the
apparel export houses.

The results of the questionnaire are summarized below

Rating
S. No. Activity
1 2 3 4 5
Lack of clarity regarding 4 3 8
1
exact customer requirement
Lack of technical 10 3 2
2
understanding
Poor flow of information 6 6 3
3 between sampling and
merchandising
Poor planning in sample 10 1 4
4
delivery schedule
Failure in meeting pickup 5 7 3
5
deadline by courier service
Loss in production due to 3 11 1
6 non-availability of work aids,
like attachments and folders
No history records of problem 3 12
7
are made
Delayed deliveries by 1 14
8
vendors
Non-availability of substitute 4 1 10
9
vendors
Delays in approvals for 1 1 1 12
10
purchase
Delays due to high operator 4 1 7 3
11
absenteeism
Delays due to non-availability 10 4
12
of required skill set
Delays due to shipment 4 2 9
13
clearance procedures
Delays due to failure in 5 5 5
14
meeting shipment window

19
 Lack of clarity regarding exact Lack of technical understanding
customer requirement

1 1
2
2
4 2
3 3
3
8 10 4
3 4
5 5

Poor flow of information between Poor planning in sample delivery

sampling and merchandising schedule

1 1
3 4 2
6 2
3 3
1
4 10 4
6
5 5

Failure in meeting pickup deadline Loss in production due to non-

by courier service availability of work aids, like
attachments and folders

1 1
3
5 2 1 3
2
3
3
4
4
7 5 11
5

20
No history records of problem are
made
Delayed deliveries by
vendors
1
3 1
2 1
2
3
3
4
12 4
5 14
5

Non-availability of substitute vendors Delays in approvals for purchase

1 1 1
4 1
2 1 2
3 3
1
10 4 4
12
5 5

Delays due to high operator Delays due to non-availability of

absenteeism required skill set

1 1
3 4 2 4 2
3 3
1
4 10 4
7
5 5

21
Delays due to shipment clearance Delays due to failure in meeting
procedures shipment window

1 1
4 2 5 5 2
3 3
9 2 4 4
5
5 5

22
 Rating
Reason of delayed
S. No. Average
shipment 1 2 3 4 5
rating
Lack of clarity regarding 4 3 8 3.8
1 exact customer
requirement
Lack of technical 10 3 2 3.5
2
understanding
Poor flow of information 6 6 3 3.4
3 between sampling and
merchandising
Poor planning in sample 10 1 4 1.9
4
delivery schedule
Failure in meeting pickup 5 7 3 2.1
5 deadline by courier
service
Loss in production due to 3 11 1 3.9
non-availability of work
6
aids, like attachments
and folders
No history records of 3 12 4.8
7
problem are made
Delayed deliveries by 1 14 4.9
8
vendors
Non-availability of 4 1 10 2.4
9
substitute vendors
Delays in approvals for 1 1 1 12 4.6
10
purchase
Delays due to high 4 1 7 3 2.6
11
operator absenteeism
Delays due to non- 10 4 3.1
12 availability of required
skill set
Delays due to shipment 4 2 9 4.3
13
clearance procedures
Delays due to failure in 5 5 5 2.0
14 meeting shipment
window

23
On the basis of above analysis, it is apparent that the major causes of delayed
shipments in apparel export industry are as follows in the order of their significance.

Priority Reason of delay Average

rating
1 Delayed deliveries by 4.9
vendors
2 No history records of 4.8
problem are made
3 Delays in approvals for 4.6
purchase
4 Delays due to shipment 4.3
clearance procedures
5 Loss in production due 3.9
to non-availability of
work aids, like
attachments and folders
6 Lack of clarity regarding 3.8
exact customer
requirement
7 Lack of technical 3.5
understanding
8 Poor flow of information 3.4
between sampling and
merchandising
9 Delays due to non- 3.1
availability of required
skill set
10 Delays due to high 2.6
operator absenteeism
11 Non-availability of 2.4
substitute vendors
12 Failure in meeting 2.1
pickup deadline by
courier service
13 Delays due to failure in 2.0
meeting shipment
window
14 Poor planning in sample 1.9
delivery schedule

24
To verify the above, 10 apparel export orders which were delayed by more than 15 days
were selected as sample. The reasons of those orders being delayed were discussed
with the concerned merchandisers. The results are as below.

S. No. Activity Applicable Not applicable

Lack of clarity regarding exact customer 2 8

1
requirement
2 Lack of technical understanding 1 9
Poor flow of information between sampling 6 4
3
and merchandising
4 Poor planning in sample delivery schedule 8 2
Failure in meeting pickup deadline by courier 1 9
5
service
Loss in production due to non-availability of 3 7
6
work aids, like attachments and folders
7 No history records of problem are made 2 8
8 Delayed deliveries by vendors 9 1
9 Non-availability of substitute vendors 7 3
10 Delays in approvals for purchase 9 1
11 Delays due to high operator absenteeism 3 7
Delays due to non-availability of required 2 8
12
skill set
Delays due to shipment clearance 4 6
13
procedures
Delays due to failure in meeting shipment 1 9
14
window

10
8
6
4
2
0

25
The analysis of above data shows the significance and frequency of reasons for
delayed shipments as below

Priority
Reason of delay Applicable

1 Delayed deliveries by vendors 9

2 Delays in approvals for purchase 9
3 Poor planning in sample delivery 8
schedule
4 Non-availability of substitute vendors 7
5 Poor flow of information between 6
sampling and merchandising
6 Delays due to shipment clearance 4
procedures
7 Loss in production due to non- 3
availability of work aids, like
attachments and folders
8 Delays due to high operator 3
absenteeism
9 Lack of clarity regarding exact 2
customer requirement
10 No history records of problem are 2
made
11 Delays due to non-availability of 2
required skill set
12 Lack of technical understanding 1
13 Failure in meeting pickup deadline 1
by courier service
14 Delays due to failure in meeting 1
shipment window

26
There is apparent difference between the significance of reasons leading to delayed
shipments as per historical data and as per the perception of managers. The
comparison between the two is as under.

Reason of delayed shipment as apparent Reason of delayed shipment as

from the data of delayed orders per perception of managers
Delayed deliveries by vendors Delayed deliveries by vendors
Delays in approvals for purchase No history records of problem are
made
Poor planning in sample delivery schedule Delays in approvals for purchase
Non-availability of substitute vendors Delays due to shipment clearance
procedures
Poor flow of information between sampling Loss in production due to non-
and merchandising availability of work aids, like
attachments and folders
Delays due to shipment clearance Lack of clarity regarding exact
procedures customer requirement
Loss in production due to non-availability of Lack of technical understanding
work aids, like attachments and folders
Delays due to high operator absenteeism Poor flow of information between
sampling and merchandising
Lack of clarity regarding exact customer Delays due to non-availability of
requirement required skill set
No history records of problem are made Delays due to high operator
absenteeism
Delays due to non-availability of required Non-availability of substitute
skill set vendors
Lack of technical understanding Failure in meeting pickup deadline
by courier service
Failure in meeting pickup deadline by courier Delays due to failure in meeting
service shipment window
Delays due to failure in meeting shipment Poor planning in sample delivery
window schedule

27
Comparison of manager’s perception with data of delayed shipments

Reason of delay Priority as Priority as

per per
manager’s delayed
perception shipment
data
Delayed deliveries by 1 1
vendors
No history records of 2 10
problem are made
Delays in approvals for 3 2
purchase
Delays due to shipment 4 6
clearance procedures
Loss in production due to 5 7
non-availability of work aids,
like attachments and folders
Lack of clarity regarding 6 9
exact customer requirement
Lack of technical 7 12
understanding
Poor flow of information 8 5
between sampling and
merchandising
Delays due to non-availability 9 11
of required skill set
Delays due to high operator 10 8
absenteeism
Non-availability of substitute 11 4
vendors
Failure in meeting pickup 12 13
deadline by courier service
Delays due to failure in 13 14
meeting shipment window
Poor planning in sample 14 3
delivery schedule

28
Conclusion and recommendations

The research focused on the measures that can be taken by the apparel export industry
to reduce late shipments as a step towards enhancing its competitiveness in the world
market. The research also highlights the major factors and reasons that have caused
the apparel export shipments to be late and will be useful to the industry in creating
better control measures to reduce the late shipments.

The major findings and conclusion of the research are as follows:

• Delayed deliveries by vendors, Delays due to shipment clearance procedures

and Delays in approvals for purchase remain to be the most significant causes of
shipment delays in the apparel industry.
• Historical records unavailability was identified as one of the significant factors but
the data of delayed shipments does not support it.
• Poor planning was identified as ranked 14 by managers perceptions but it has
been evidenced as one of the most frequent reasons of late shipments.

29
9 Bibliography

1. A Study on Manufacturing Lead Time in Apparel Industry With Special Reference

To Apparel Exporters in Tirupur City” Institute of Management Technology, 2008
2. Lead time management in garments industry: A system dynamics exploration”
Volume : 5, Issue : 4, April 2016 ISSN - 2250-1991, Indian Journal Of Research
3. Business World 2004, WTO 2007
4. Winters and Mehta 2003
5. Ananthakrishnan et al. 2005
6. “Factors affecting the lead time for export of readymade Apparels” by Shahidul
Kader, M.Sc., Maeen Md. Khairul Akter (Nov2014)
7. “Lead time management in garments industry” by Behrooz Asgari and Anyul
Hogue

30
 Questionnaire

Factors affecting lead time in apparel export

Name of respondent :

Designation of respondent :

Department of respondent :

Name of company :

Please rate the following parameters on the basis of significance in lead time of
export orders

Rating
S. No. Activity
1 2 3 4 5
Lack of clarity regarding exact
1 customer requirement
2 Lack of technical understanding
Poor flow of information
3 between sampling and
merchandising
Poor planning in sample delivery
4 schedule
Failure in meeting pickup
5 deadline by courier service
Loss in production due to non-
6 availability of work aids, like
attachments and folders
No history records of problem
7 are made
8 Delayed deliveries by vendors
Non-availability of substitute
9 vendors
Delays in approvals for
10 purchase
Delays due to high operator
11 absenteeism
Delays due to non-availability of
12 required skill set
Delays due to shipment
13 clearance procedures
Delays due to failure in meeting
14 shipment window

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 Reasons of late shipment in apparel export

Order number :

Quantity :

Actual shipment date :

Delayed by :

Please highlight the reasons of delayed delivery in this shipment

S. No. Activity Applicable Not applicable

Lack of clarity regarding exact customer

1
requirement
2 Lack of technical understanding
Poor flow of information between sampling
3
and merchandising
4 Poor planning in sample delivery schedule
Failure in meeting pickup deadline by courier
5
service
Loss in production due to non-availability of
6
work aids, like attachments and folders
7 No history records of problem are made
8 Delayed deliveries by vendors
9 Non-availability of substitute vendors
10 Delays in approvals for purchase
11 Delays due to high operator absenteeism
Delays due to non-availability of required
12
skill set
Delays due to shipment clearance
13
procedures
Delays due to failure in meeting shipment
14
window

32
Please specify if there are any other reasons which are not mentioned here

S.No. Activity Applicable Not

applicable

33