Textiles and Garments
Companies in this domain are either export houses which produce for large retailers as per designs given to them, or fashion retailers who sell not only other brands but also design, source and sell their own brands in their retail chains. These two type of companies can have the constraint in any of the following areas.
Most garment and textile manufacturing plants in India are facing severe pressure to not just reduce costs but also reduce lead time of supply. The pressure of costs is emanating mostly from change in product mix – from few products in large volume to large variety in lower volumes. The pressure of lead times is emanating from retailers wanting to reduce the forecast horizon. The twin pressures of increased variety and low lead times is a huge paradigm shift for many textiles and garments manufacturing plants. Not many are able to cope up with this massive shift and are suffering from drop in output, poor delivery performance and month end skew in output. These in turn is causing costs to go up and further perpetuates issues in order booking.
Find out how to get near 100% On-Time-In-Full deliveries, with significant reduction in lead time, while increasing the plant output with significant reduction in working capital deployed in the business:Know More
- Reduction in overall lead time of manufacturing by around 50%
- Increase in output of plants by around 10-25%
- Reduction of WIP by about 30-40%
- Improvement in working capital cycle of the company
Significant time of sales team in textile and garment manufacturing is used up in order management. When every order has multiple co-ordination points for approvals with clients, the sales team bandwidth is mostly occupied in short term order execution. This takes away capacity to develop new customers or introduce new product categories.
Know more about how to increase bandwidth and effectiveness of the sales team, while improving the service levels of the orders in the shop floor.Know More
- More than 50% release in capacity of sales team
- Increase the rate of acquisition of new customers
- Increase in sales rate of new categories
Fashion houses having their own retail footprint, are typically constrained by shelf-space (or working capital). The speed of inventory rotation on shelf space limits the ability of retail stores to make more money. Their inability to fully exploit these arises from two sources. Firstly, about 15 to 20% of the items which are season hits gets stocked out in matter of few weeks. And companies are not able to react to these signals and restock due to the long lead time needed for development and supply. Secondly, about 30% of the stock turns out to be absolute duds. This not only blocks working capital and prevent future buying but also causes margin erosion due to the inevitable deep discounting.
Know more how fashion retail companies can drastically reduce the impact of stock outs and surpluses while releasing working capital for funding expansion plans.Know More
- Same store sales growth by around 15%-20%
- Improve inventory turns by more than 100%
- Increased gross contribution per unit of shelf space
- Improved display and freshness of stocks on shelf space
Once the supply chain is aligned for seamless flow, the next level of constraint for any organization is the ability to offer new variety based on the latest trends in the market. And even though low lead time is obviously of paramount importance, the sampling process in textile companies is fraught with frequent priority conflicts with requirement of bulk production and queuing delays. At same time designers are also caught in priority conflict of dealing with requirements of multiple sales channels. Consequently, sampling process can be a major bottleneck for bringing in new customers and converting enquiries into orders. Using flow principles of TOC, the sampling process in textile and garment companies can be transformed to ensure timely completion, while releasing substantial capacity to do more from same resources.
Know more how one can improve flow in sampling plants for textile companies.Know More
- Reduce sampling lead time by 33-50%
- Increase output by 30-50% from same resource base
- Reduced rework
- Improved quality of output
- Rapid bulk production
- Reduced stress on people and other resource
Discover how organizations 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.
Transforming textile and garment manufacturing using TOC at Pratibha Syntex Ltd.
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 Pratibha Syntex turned around from being a business struggling to survive to a profitable one that offers one of the shortest lead times and highest reliability to customers.
We have partnered with very large fully integrated textile manufacturing and retailing firms to create and implement radical solutions which has helped redefine industry benchmarks. These include:
SHREYASKAR CHAUDHARYManaging Director, Pratibha Syntex Limited
With the help of TOC we aimed to enhance performance and thereby profitability by building a competitive edge based on reliability with considerably lower lead times, whilst possibly getting more output from same capacity.Know More