With subsidies for investment, access to raw material below international prices, free access to international markets, low labor costs and strong domestic demand, the opportunities for textile and garment business in India ostensibly looks attractive.
However, even as speed to market continues to grow in importance, many textile and garment manufacturing plants suffer from problems of long and highly variable lead times. As a result many of them end up paying late delivery charges or for emergency air shipments, escalating manufacturing costs. When organizations attempt to manage this problem by under loading plants this inevitably threatens their ROI.
One of main reasons for the long and variable lead times for textile manufacturing and the poor on time performance is this ubiquitous conflict between the need to utilize expensive investments made in discrete processing units like dyeing, knitting, spinning etc. while ensuring the least possible lead times. Unavoidably, the considerations for utilization of one work center tends to be in conflict with that of another. For example dyeing would prefer to load ‘color wise’ while spinning may like to load ‘count wise’ but garmenting or weaving needs a full kit of all ingredients to assemble.
Organizations have tried to invest in sophisticated scheduling software to handle this complexity but still have been unable to solve this problem. Many companies continue to struggle with low flow predictability wherein dispatch plans are not known for even next few days and many end up paying heavy detention charges for dispatch vehicles.
Vector helps organizations resolve this conflict between the necessity to reduce lead times and the need to ensure work center utilization by implementing flow principles of Theory of Constraints. The resultant capability can be capitalized to make unique reduced lead time offers to retailers (in India and abroad) which in turn will enable these retailers to reduce their inventory. Further, this integration of buying practices of fashion retailers with short and reliable delivery capability of suppliers will also help retail points reduce mark downs and stock outs giving these suppliers an unbeatable competitive edge. This then presents companies with the opportunity to get more lucrative orders from these fashion houses and retailers where margins are usually high.
Thus with, improved speed to market, responsive supply chain, sustainable production and excellent vendor compliance, companies can open the door wider for both domestic and global business.
Increase the output of plants by at least 40%
Reduce lead time by around 25%
Ensure near perfect (>95%) on time performance.
Make drastic reduction in expediting costs (late delivery charges, emergency shipping costs, detention charges etc.)
Increase sales by creating service and delivery capabilities that substantially outperform competition