Muhammad Khalid (26)

Jaipur Rugs supply chain strategy

Jaipur Rugs Company Private Ltd.

India's largest manufacturer and exporter of hand knotted rugs founded in 1978.

Founder N.K Chaudhary Produces an exclusive product range of rugs,

pillows and poufs Carry forward the rich heritage of India to more

than 40 countries in the world Has a network of around 40,300 skilled artisans in

rural India. 7500 looms connected through 300 direct, 40000 indirect employees.

Entities

JR company

JR incorporation

JR foundation

Bhoomika Wools

Manufacturing network

Production units are in Rajasthan, Gujarat, Uttar Pradesh, and Bihar

Annual production of approximately 5 thousand million square feet of Rugs

Connecting artisans to global Market through its global supply chain management.

Tayyab Ali

Supply chain of Jaipur Rugs Co.

Supply chain of Jaipur rugs is consists of four pats

Raw material acquisition and spinning Dying, production, planning,

designing and production weaving

Sales and marketing retailing

Cleaning andSorting Raw Wool

Brush Used forHand Carding

Hand Spinning RawWool into Hank

Umair Shaukat

Distribution Network

At present Jaipur rugs has businesses in more than 40 countries and touched a turnover of over 14 million $ in 2008-09.

USA is the major market of rugs where about 65% of the sales are done.

Followed by Turkey, Canada, Mexico, Italy, Germany, Australia, Russia, Spain, Romania etc.

Jaipur Rugs distribution network

product Sale

Jaipur Rugs sells its products through a variety of channels across the globe.

98% of 2007 sales, 90% of 2008 sales were direct exports to either Jaipur Rugs, Incorporated (JRI) in Atlanta or other U.S.

Omer Farooq

Strategies & its benefits

Jaipur rugs company used pull strategy because it take order from customer then perform further steps to complete orders.

Benefits Work is decentralized Investment is decentralized Management influence over key

functions is highly leveraged Gain Flexibility

Questions related to company

Q:How can small and medium scale industries can deliver better customer value through supply chain management & improve the living standards of society in developing countries?A:jaipur rugs co. is the best example of implementation of cost effective supply chain management in developing countries. But in developed countries like USA that company is using responsive strategy to respond the market demand.

Improve living stranded Promotion of Leadership and

Entrepreneurship Training Labor law Practices

Competitive wages.Access to healthcare and education.

Q:How can the involvement of middleman be minimized ?

Ans: Middleman can be minimized or removed to give more income to the weaver ,through direct relationship with weaver .

THANKS