Textile and Garments

Textiles and Garments

Companies in this domain are export houses which undertake garment manufacturing for large retailers as per fabric or garment designs given to them. They could also be fashion retailers who design, source and sell garments under their own brands in addition to selling other garment company brands. These two types of companies (textile manufacturers or fashion garment retailers) can develop a constraint in any of the following areas.

Operations

Most garment and textile manufacturers in India are facing severe pressure to reduce not just costs but also to reduce lead-time of supply of garment orders. The pressure on costs is emanating from the gradual change in product mix of garment orders being received. Over time, garmenting orders have shifted from being for few garments in large volumes to a large variety of garments in smaller volumes. The pressure of lead-times is emanating from retailers who want to reduce the fashion forecast horizon. The twin pressures of increased variety of garments and low lead-times are making it necessary for textile and garmenting units to make fundamental changes in the way they operate. Most manufacturers are not coping well with these demands; they are suffering from drop in output, poor delivery performance, and month-end skew in output of garments. These issues are further driving up costs of garmenting and jeopardising future order bookings.

With the help of Vector Consulting, textile and garment manufacturing plants can ensure near ~100% On-Time-In-Full deliveries with significant reduction in lead time. At the same time, they can increase the garment output and significantly reduce working capital deployed in the business. Find out how.

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Our Offer

  • Reduction in overall lead-time of garment manufacturing by around 50%
  • Increase in output of textile manufacturing plants by around 10-25%
  • Reduction of WIP (in yarn, fabric, and garmenting) by about 30-40%
  • Improvement in working capital cycle of the company

Sales Bandwidth

Significant time of sales teams in textile and garment manufacturing companies is used up in order management. When every garmenting order has multiple co-ordination points for approvals with clients, the sales team bandwidth is mostly occupied in short-term tasks required for execution of orders in hand. This consumes capacity that is needed to develop new customers or introduce new garment categories.

Textile and garment manufacturing companies can increase bandwidth and effectiveness of their sales teams, and, simultaneously, improve the service levels of orders on the shop floor. Know how this is possible with the help of Vector’s consulting expertise in this domain.

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Our Offer

  • Release more than 50% capacity of sales team
  • Increase the rate of acquisition of new customers
  • Increase in sales rate of new garment categories

Retail Operations

Fashion houses having their own retail footprint are typically constrained by store shelf-space (or working capital) for displaying garments. Slower the inventory ‘rotates’ on available shelf space, lesser is the money that the retail store makes. Fashion retail stores’ inability to fully exploit the limited shelf space in the store arises due to two reasons. Firstly, about 15 to 20% of the garments become bestsellers and gets stocked out within few weeks of season onset. Unfortunately, most fashion houses are not able to react to this by restocking (due to the long lead-time needed for development and supply of garments). Secondly, about 30% of the garments turns out to be duds. When this happens, immediate effect is of blocked working capital. This also eventually causes margin erosion due to the inevitable deep discounting necessary to shed these excess garments.

How can fashion retail companies drastically reduce the impact of garment stockouts and surpluses, and at the same time, release working capital for funding expansion plans? Find out

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Our Offer

  • Same-store sales growth by around 15% to 20%
  • Improve garment inventory turns by more than 100%
  • Increase gross contribution per unit of shelf space
  • Improve display and freshness of garments on shelf space

Sampling

Once the supply chain is aligned for seamless flow of orders, the next level of constraint for any textile or garment manufacturing organization is its ability to offer new garment variety based on the latest trends of fashion. In order to do so, the company has to have an agile garment sampling process. However, lead-time of garment sampling expands either due to queuing delays or priority conflicts with bulk garment production. Moreover, fabric and garment designers are also caught in priority conflicts as they try to fulfil requirements of multiple sales channels. Consequently, garment sampling process can be a major bottleneck for bringing in new customers and for converting enquiries into orders.Using flow principles of TOC, textile manufacturing and garmenting companies can transform the sampling process to align it with the goal of timely completion of orders. This would also help the companies to release substantial capacity to do more (garment sampling) from same resources.

With the help of Vector’s consulting expertise, companies can improve flow of garment sampling in textile manufacturing

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Our Offer

  • Reduce garment sampling lead-time by 33-50%
  • Increase output by 30-50% from same resource base
  • Reduced rework
  • Improved quality of output
  • Rapid bulk garment production
  • Reduced stress on people and other resource

Case Study

Discover how textile and garment manufacturing companies like Pratibha Syntex, Raymond Textiles, and many others are using “pull” systems of Theory of Constraints to dramatically reduce their ‘fabric to fashion’ lead-time and gain a competitive advantage in the markets.

  • Pratibha Syntex Ltd: Transforming textile and garment manufacturing using TOC

    Indicators Remark
    Profits Increased by 58%
    Production lead time Reduced by 50%
    Delivery OTIF (On Time In Full) Improved from 35% to 95%
    Garment turnover Increased by 120%
    Overall output Increased by 40%
    Working capital Reduced by 33%

Find out how textile manufacturer Pratibha journeyed from struggling to profitable. Learn how, with the help of Vector Consulting Group, it now offers one of the shortest lead-times in the market and assures high reliability of orders to customers.

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Clients

We have partnered with large, fully-integrated textile manufacturers and fashion retailers to create and implement radical solutions which have redefined industry benchmarks. These include:

Client Speak

SHREYASKAR CHAUDHARY

Managing Director, Pratibha Syntex Limited

With the help of TOC, we enhanced performance (and profitability) by improving reliability and lead times. Alongside this, we were able to extract more output from the same capacity. All these together have given us a competitive edge in the market.

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