Development of standard operating procedure for improving

the supply chain management process of Ha-Meem Group

Submitted by:

Md. Tahidur Rahman

Roll: 11316, Batch: 3, Sction: 2

Internship report submission to the Institute of Business Administration to fulfill the degree
of Postgraduate Diploma in Garments Business (PGD-GB)

Academic Supervisor:

Tanisha Bukth
Lecturer
Institute of Business Administration,
University of Dhaka

Industry Supervisor:

Mahfuzur Rahman
Deputy Manager,
Procurement & Supply Chain
Management ,
Ha-Meem Group
 Acknowledgement

First and foremost, praise is to ALLAH, the almighty, the greatest of all, for continuous grace
and mercy throughout my life. My deepest gratitude to Allah for giving me the strength and
the patience to complete the internship for PGD-GB. I’m grateful to my academic supervisor,
Tanisha Bukht, Assistant Professor, Institute of Business Administration. Without her constant
guidance, encouragement, and suggestions, it’s impossible to complete the report within the
scheduled time. I want to mention the name of my Industrial Supervisor, Mr. Mafuzur
Rahman, Deputy Manager, Procurement & Supply Chain Management department who gave
me the permission for the internship and guided me throughout the whole time of my
internship. Having such a supportive academic & industrial supervisor is really a matter of
luck.

Last but not least, thanks go to my precious family for their never-ending support and love in
every stage of my life which has motivated me to do such work. We would like to thank my
entire course mate in IBA, who took part in this discussion while completing the course work.
Finally, I must acknowledge with due respect for the constant support and patience of my
parents.
 Executive Summary

In Bangladesh ready-made garments (RMG) is huge prospect especially in exporting. Almost

80% of total export covers from this ready-made garment sector. Garments sector also is a
great empowerment for the women as 80% of the garments worker are women. From early
1990 inwards the RMG industry has become the largest foreign exchange earning sector in the
economy of our country. In 2013-14, Bangladesh earned nearly $ 20 billion by exporting
garment products and RMG cover 75 percent of the total export of the country, having the lion
's share of the country's exchange. Ha-Meem Group, a leading garment manufacturer, is going
for massive expansion to double its export receipts to $1 billion in the next five years, said its
chief. At present, Ha-Meem Group's annual exports stand at around $600 million, and it
counts retail giants like Gap, American Eagle Outfitters, H&M, Kohl's, Tommy Hilfiger, JC
Penney, Zara, Next, Kontoor, Levis, PVH-CK, Centric, Rainbow, Carrefour, Justice and
Oshkosh as its major buyers. Currently, the group produces 3 million yards of denim fabric in
a month, so with the two new units the total production capacity would reach 6 million yards.
Ha-Meem chose to boost its denim production as the demand for the fabric is rising fast
around the world. The group employed 60,000 workers in its different units and is looking for
more workers for the expanded units.

I’ve joined at Ha-Meem group as an officer from 16th August, 2021 and I’ve joined in the
procurement and supply chain management department & looking after the accessories part.
This report is ultimately very informative which heavily an overview on the supply chain
management of Ha-Meem group. Apart from the report’s main topic, there is also opportunity
for knowledge about the entire process of supply chain management of this company.

I have conducted a survey on a topic “Survey on Ha-meem Groups Procurement and supply
chain management” and showed the problems and results with the justifications.

Lastly there is detail explanation and result of the survey and based on that I have mentioned
the major problems and also given its solutions in the recommendation parts.
 Table of Contents

Organization
Overview……………………………………………………………………….
My Job
Responsibilities…………………………………………………………….
Area that I want to look
for………………………………………………………………
Objectives…………………………………………………………………………
……....
Methodology of the study
i. Group Discussion……………………………………………………………...
ii. Different Business fields of Ha-Meem Group……………………………………
Findings
a) Organogram of Supply Chain Management
Department…………………………
b) Working Procedure (Machineries, Dyes, Chemicals and
Accessories): ..........................
c) Working Procedure (Cotton, yarn and
thread): .................................................................
d) Total Employees working
here: .............................................................................................
Analysis on Supply Chain Management of Ha-Meem Group
Recommendations…………………………………………………………………
……..
Conclusion…………………………………………………………………………
……...
Bibliography………………………………
 Organization Overview

Bangladeshi clothing manufacturer Ha-Meem Group is one of the world's leading suppliers of ready-
made garments and denim. We are one of Bangladesh's leading clothing companies. It started with
Garments Company in 1984 and two enterprising men Mr. A. K. Azad & Mr. Delwar’s vision to
break through in the textile industry and making Ha-Meem Group a leading wholesale clothing
manufacture in Bangladesh. The company manufactures some of the most fashionable denim fabrics
and apparel products and owns one of Bangladesh's most extensive and witty manufacturing facilities.
Ha-Meem Group has gained fame both at home and abroad as one of Bangladesh's leading apparel
companies. The continued growth of this group is closely linked to the industrialization of its native
Bangladesh. Also, as a Bangladeshi clothing manufacturer, it has made a great contribution to the
country's economic growth. Ha-Meem Group, one of Bangladesh's leading apparel companies, has
long exported to the United States and Europe.

It has grown into one of the fastest growing business groups in the country. With a history of success
with world-leading customers and buyers, we are Bangladesh's most valuable and reputed clothing
manufacturer. The Company produces 7 million textiles a month, from infants to adults, male and
female. Today, the Ha-Meem Group employs approximately 50,000 people and has 26 sewing
factories, unique denim factories, sweater factories, embroidery printing factories, corrugated board
factories, polybag industry, label factories and jute factories, chemical product factories and tea
gardens, shipping companies, news channels, daily newspapers nationwide.
The company's overseas offices in Hong Kong and China provide the fastest support for sourcing
fabrics and accessories. Dedicated C & F offices at each Bangladesh port provide the privilege of fast
payment and forwarding support. The Ha-Meem Knit will be available within a year. It has a capacity
of 10 tons of compound rope and gradually increases to 50 tons. We manufacture all kinds of knit
products, including tops and bottoms for men, women and children.

My Job Responsibilities

I am working in Ha-Meem Group as an Officer in Procurement & Supply Chain Management

department. I mainly oversee foreign portion of trims & accessories as well as local part occasionally.
Here are my major responsibilities:

 To prepare procurement plan & the estimated budget of requisition for approval and contact
with suppliers for required materials.
 Receiving purchase request from merchant, collecting quotation from different vendors,
checking the commercial terms & conditions, negotiating with the vendors and finalization of
contracts.
 Verifying background of vendors & on-boarding new vendors to ensure uninterrupted supply
and maintain quality of the supplies.
 Making comparison statement by analyzing market as per buyer quotations & arrange to get
approval from higher management.
 Arranging for issuance of PI/work orders and follow up for on time delivery.
 Monitoring the procurement budget and promoting a culture of long terms savings on
procurement cost
 Building and maintaining long-term relationship with suppliers.
 Prepare & check all export/import document required at different level (e.g., Commercial
Invoice. Packing List, Country of Origin, Bill of Exchange, Bill of Lading, test report etc.,
Challan, Bill) and then submit to accounts section.
 Maintain proper liaison with concerned departments for smooth supply chain process.
 Contacting factory person, Store and regular in-house factory inspection to maintain product
quality for export.

Area That I want to look for

1. Methodology of the study:

Both primary and secondary data has been used in this report. For conducting
survey google form was used and the survey was only among the people who
are working in the procurement and supply chain management department so
the no of respondents was very few.

2. Analysis and Interpretation of the data

3.1 Ha-meem Groups Different business fields includes:

Sweater Factory
Chemical formulation plant
Label Factory
Polybag Factory
Sourcing office in
Hong Kong & China
Tea Garden
Transport Company
Own CnF office in
every Bangladeshi
port News Channel
Widely circulated national daily newspaper
3.2 Company Address 407, Phoenix Tower (4th
Floor), Tejgaon Industrial Area, Dhaka-1208,
Bangladesh
Business Type: Apparel Exporter & Manufacturer
Legal Status: Private Limited Company
 Nature of Production: Woven, Denim, Washing Plant
Export Percentage 100%
Land Area 200000 Sft.
Total Covered Area 180000 Sft.
Year of Establishment 1991
Year of Commercial 1992

3.3 Production

No of Production Line Knit 28, Woven 26

Minimum Age of Worker 18 Years (Certified by a Medical Officer)
Minimum Wages BDT 5600
Working Hour 8 Hours a Day
Memberships BGMEA, BKMEA
Trade Banks Shahjalal Islami Bank Ltd.
Annual Turnover

Mission of Ha-Meem Group

o To Provide Quality Products
o Delivery the products on time.
o Remove unemployment.
o Remove poverty.
o Industrialization.

Vision of Ha-Meem Group

Attain market leadership with top notch and unique product quality through honest, efficient

& empowerment employees.

 3.4 Units of HA-MEEM GROUP

Woven:
26 woven factories are equipped with 250 production lines in six different locations.
Approximately 30000 strong work forces are putting their combined effort in achieving their
goal. All the lines are balanced with auto trimmers and sophisticated machine to switch
production between complicated tops and bottoms like trouser, jeans, cargoes, skirts, shirts,
jackets, ladies dresses etc. Auto cutting capability brings great efficiency in cutting. Ha-meem
produces 70% bottoms and 30% tops across 60% denim and 40% non-denim fabric. All the lines
are maintaining
2.5 AQL at factory level.

Denim Mills:
Denim mills, a dream project of Ha-meem group located in a serene surrounding of 100 acres of
greenery is just one and half an hour drive from the city. It is equipped with all state-of-art
machinery like sucker muller slasher dye from Germany, picanol Omni plus loom from Belgium
and finishing line from Morison USA. It produces all type of premier Denim including stretch
like Ring slub corss hatch, Dark denim, Sulphur dye, coated fabric, colored Denim etc. Presently
Ha- meem is using their own denim fabric for Gap, JC Penny, KOHL’S , PVH, NEXT in their
different product.
Washing Plant:
Ha-meem has 6 big washing plants and can wash 1, 50,000 pcs of garments per day. All the
washing plants have dry process capability with required equipment and can perform all kinds of
fashion wash like hand brushing, sand blasting. Whisker including 3 dimensional and Laser
whisker, PP Spray tearing, Grinding, Oven curing, over dying, Tinting etc. The entire washing
unit has ETP plant to purify chemically polluted water for taking care of environment.
 Major Products
There are some Major Products of Ha-Meem Group. They are given below:

 All Types of Bottom and Tops

 Critical Cargos
 Hi-Fashion Denim Jeans
 Basic and Hi-fashion Washes
 Wrinkle Free
 Laser Finish / 3dWhisker
 Men’s Shirts
 Dress Pants
 Outwear / Jackets Facility

Buyers

Ha-Meem group works for a lot of prominent buyers of USA and Europe. Those are:

 American Eagle
 Gap / Old Navy
 Levi’s
 JC Penny
 PVH
 KOHL’S
 H&M
 Zara
 Next
 Characteristics of Ha-Meem Group

Several characteristics segregate this organization from others. They are given

below:

 They deliver their product on time.

 They maintain their product quality rigorously.
 They have modern technologies to meet their target.
 They have skilled manpower.

 The corporate culture of Ha-Meem Group is really commendable.

 They train up their employees & workers well to adapt with new technologies.
 Experiments New technology to maximize output.
Organogram of Accessories Procurement Department

AGM

Ass Manager

Officer Officer Officer Officer

Officer Officer Officer Officer

Ass Officer Ass Officer

Ass Officer Ass Officer

 Organogram of Machineries & Spare parts Procurement Department
DGM

Ass Manager Sr Officer

Manager/Ass Manager

Officer Officer Officer Officer

Officer Officer Officer

Officer Officer Officer Officer

Ass Officer Ass Officer

Ass Officer
Ass Officer

Ass Officer Ass Officer

 Organogram of Local Purchase Department

ED

GM

Manager (Construction Asst Manager

Asst Manager
Incharge) (Production Incharge)

Officer Officer Officer Officer

Officer Officer Officer

Officer Officer Officer Officer

Ass Officer Ass Officer

Ass Officer
Ass Officer

Ass Officer Ass Officer

Areas of Responsibility (Machineries, spare parts and heavy power utilities):

 Garments Sewing Machineries and spare parts

 Knitting machineries and spare parts
 New machineries for any new project
 Dyeing machineries
 Washing Machineries and spare parts etc.
 Proper co-ordination with management for implementing new projects.
 Spare parts for spinning factory.
 Ensuring on-time supply of machineries.
 Areas of Responsibility (Dyes, Chemicals, Accessories):

 Sourcing Dyes and Chemicals.

 Dyes and chemical development
 Sourcing Raw materials for accessories factories
 Sourcing and developing accessories for Garments
 Ensuring raw material supply within the lead time.
 Check quality of raw material for smooth production.
 Proper co-ordination with management for implementing new projects.
 Check Delivery Challan, Commercial Invoice for smooth payment of supplier.

Areas of Responsibility (Local Purchase):

 Sourcing Construction items, Electronics, Hardware items as per requirement.

 Check quality of item for future use.
 New supplier development.
 Delivery follow up.
 Ensuring on time supply of raw material.
 Proper co-ordination with management for implementing new projects.
 Check Delivery Challan, Commercial Invoice for smooth payment of supplier
Total Employees working at Supply Chain Management Department:

Designation Manpower
ED
AGM/DGM
Manager/Ass. Manager
Officer
Asst. Officer
Total
 1. Survey On supply Chain Management of Ha-Meem Group:

Duration of people working at SCM Department

More than 1 Year 15%

Less than 1 Year 31%

More than 2 Years 54%

Percentage of Employees

Supply Chain Management is newly formed department of Ha-Meem Group. Supply

chain was established 2-3 years ago. As a result, I wanted to find out for how long
employees have been working at SCM department. My findings are given below:
16% working here for less than 1 year
30% working for more than 1 year
54% working here for 2-3 years

The bar chart illustrates that most of the employees here are actually new. They used to work

at different department before and switched to the new department for another experience.
Satisfaction of Employees regarding Salary, Working
Environment and Others:

Satisfaction Rate
55%

30% Percentage

15%

Yes No Neutral

The contentment of employees is significant for a company’s growth. If employees are

not satisfied then their work won’t create much value. So in the subsequent stage I
wanted to know how much employees are satisfied with the environment, salary structure
and other facilities of Ha-Meem Group. I get to know that sharply 55% employees are
satisfied while almost 30% employees are disappointed about their working place. The
main reason for dissatisfaction might be the salary structure.
Modern Technologies and Machineries used here

No 35%

Yes 65%

Percentage

In this portion, I figured out if the employees are satisfied with the technologies and
machineries used at Ha-Meem Group. According to the Bar chart, 65% people are
pleased while 35% people reckon that there are numerous areas for improve. Most of the
people said that the Enterprise Resource of Planning (ERP) software is not user friendly.
The current manpower is enough to support Ha-Meem’s capacity?

35%

Yes
No

65%

Man power is an integral part of any organization especially for a huge conglomerate like Ha-Meem group.
Therefore, I made this survey to know if the employees think that the current manpower is substantial to meet
Ha-Meem’s Capacity. Though, most of the people think that the current manpower is enough a lot of people
still think there is a shortage of manpower. I think the management needs to oversee this issue.
 How long do you want to work at Ha-Meem Group?

28%

24%

20%

15%
13% Series1

Till Retirement Leaving in 1 Year Leaving Soon Leaving in 5 Years Less than 10 Years

I was inquisitive for this survey as I wanted to know for how long people want to work in this
department. The result was amusing as I found out that 56% people want to leave the company
within 5 years while 44% people want to continue for a long time. The situation is alarming as
the employee turnover rate of seems a bit high. HR should look after this issue.
 Findings of the survey:

People may think that Ha-Meem group’s Procurement and Supply chain management department is well
established but after diving inside I found out that the management needs to work on a lot of issues. The survey
depicts many confidential things that the management is not cautious of. Nevertheless, the larger portion of
employees are satisfied with overall environment of Ha-Meem Group. According to my findings, I will try to
recommend few things in the later part.