Operational excellence in the apparel industry requires an effective supply chain, from conception, through sourcing to distribution.  Fast fashion, in particular, mandates four tight seasonal deadlines which require slick operations based on effective data and product life cycle management.

Latest research from Gartner, indicates that 60% of apparel businesses wishing to achieve high performance in these testing economic times, must consider bringing sourcing in-house as an integral part of their supply chain.

GreyStuff consultants can help your organisation by recommending ways in which you can achieve optimal product development and production routines, resulting in:

• significant profit optimisation;
• faster time to market.

In the UK, over one million tonnes of textile waste are discarded annually. Garment cutting waste is 10% - 20% of fabric consumption. (Source: Waste Watch.) This example of value lost in the supply chain, is just one of many areas of operational opportunity where savings can be made. Consider stock levels: poor service levels mean higher stock levels, leading to higher overheads, throttled cashflow and less profit.

If your organisation has recently acquired other businesses, GreyStuff can help you to quickly bring acquisitions on stream, by helping you to improve their performance or to help introduce enterprise systems, consistent with your own operating methods.

Take a fast growth above average profitable company from the apparel industry and you might assume that everything is OK.  The new chairman and key owner thought otherwise and engaged GreyStuff as an interim director to help find new systems and review other aspects of his business.  After a forensic review GreyStuff revealed many items requiring attention.  More than half of these could be addressed through better management practices, better processes, improved management structure and changes in staff.  The rest required new systems, new approach to supply chain management and outsourcing practices, as well as improved demand forecasting and product life cycle management.

GreyStuff was tasked with assisting the owner and senior management define requirements to support the business growth and its existing/future challenges.  GreyStuff identified the key metrics for project objectives including increase in turnover, profit and time to market.  The company had an average service level (quantity delivered versus quantity ordered) far below market expectations (minimum of 95%).  Time to market was between six and nine months depending on type of garment and available resources, whereas the industry best practice was closer to four months.  Air freight was used heavily to reduce delays and major clients imposed fines (industry norm) when goods arrived late.  The company had had two consecutive seasons of late deliveries and continuous quality and production difficulties either with materials or capacity.

The company chose a solution provider after searching the wider market under the guidance and leadership of GreyStuff.  Documentation and communication between potential suppliers and the company was managed by GreyStuff  ensuring the company had the best solution at the best price and terms.  Once agreed and contract ratified, GreyStuff set about leading the project to ensure the objectives were met and that the supplier delivered in the most efficient and appropriate manner for the company.  Like all IT projects there were issues and problems.  However because of our experience and leadership these were dealt with at the earliest time and as swiftly and efficiently as possible to everyone’s satisfaction.

We worked with managers and staff one-on-one where required to ensure focus and direction securing commitment for success. Detailed input for solutions largely came from key individuals within various parts of the business whilst Greystuff added value by either making suggestions or defining a more streamlined approach.  Consensus was achieved with staff and management, along with a commitment to implement the transformation.

We presented a project of objectives and benefits along with the changes required across each and every department for improved time to market.  This included product development (Design), merchandising, procurement, customer service, logistics and sales.  The ambitious plan called for a replacement of the ERP system but also the implementation of additional systems to help address the key areas of improvement.  The new solutions would include the following integrated software applications:

• Demand planning and forecasting
• Product Data Management & Product Lifecycle Management
• ERP (sales / inventory / finance / purchasing)
• Supply Chain Management
• Customer Relationship Management
• Warehouse Management
• e-Commerce self service for clients
• e-Fashion self service for suppliers
• Business Intelligence dashboard and exception reporting
• Design tools for plans, grading and marker optimisation
• Workflow tool for exception management and policy automation

GreyStuff produced a plan based upon changes in:

• Management Structure and Roles
• Internal Processes
• External Processes (outsourcing methods and technique)
• Technology
• Knowledge

The company chose a solution provider after searching the wider market under the guidance and leadership of GreyStuff.  Documentation and communication between potential suppliers and the company was managed by GreyStuff  ensuring the company had the best solution at the best price and terms.  Once agreed and contract ratified, GreyStuff set about leading the project to ensure the objectives were met and that the supplier delivered in the most efficient and appropriate manner for the company.  Like all IT projects there were issues and problems.  However because of our experience and leadership these were dealt with at the earliest time and as swiftly and efficiently as possible to everyone’s satisfaction.

We worked with managers and staff one-on-one where required to ensure focus and direction securing commitment for success. Detailed input for solutions largely came from key individuals within various parts of the business whilst Greystuff added value by either making suggestions or defining a more streamlined approach.  Consensus was achieved with staff and management, along with a commitment to implement the transformation.

Objectives and benefits:

• Increase service levels to a minimum of 95%
• Increase in turnover
• Reduction in inventory
• Reduction in material costs
• Reduction in time to market
• Reduction in airfreight
• Reduction in client fines
• ROI in under two years

Other benefits included:

• Improved visibility of processes and exceptions
• Improved management communication
• Less stress for staff and managers
• Improved customer satisfaction
• Improved supply chain management
• Introduction of formal Sales & Operational Planning (S&OP) practices
• Improved supplier relationships

The solution for the client company provides a solid platform for managing and supporting the current rate of growth and what it expects during the coming years.  The company will enjoy financial benefits as well as improvements in its market value, reputation and ability to expand into a wider global context.

This is an example of how GreyStuff works with you and your team.  We remain objective yet involved and we bear responsibility for success.

Contact GreyStuff to see what we can do for you.