Inside the Garment Industry

Fashion is highly
Perishable
“ Clothes are a highly perishable
commodity like bread. Every
consignment is like freshly baked
clothes”
- Amancio Ortega Gaona
(founder of Inditex S.A) Zara
Short Lead Times
• As short as 30 days
• Fashion vs Staple
• Is it CMT or OEM business?
• Plan capacity & build flexibility
• IT & Planning are only Tools
• Manpower training &
orientation critical
Manufacturer’s Role
• Visualize the Macro picture
• One of the players
• Understand the play
• Know the role
• Play by rules
 Retail to Production
 The Supply Chain
 Value Addition
 I want it NOW!
 Is it my size?
 Show me other colors
 How?
Retail to Production
• Buyer has calendar
• Manufacturer adopts Buyer’s
• Make one for Vendor
Know Your Calendar
• Focus on Functions
• Time to think ahead
• Establish Process Flow
The Process Flow
• Consider garmenting as a
process
• Every process has a flow
• Identify the processes
• Prepare the process flow
• Define functions by Process
Calendar for Function
• List functions
• Calendar is events in a function
• Highlight Major Events
• Prepare Plan of Action
• Make the Calendar of Critical
Activities
 The Flow Chart
Production - Finishing

Production - Washing Production - Packing

Production- Cutting & Sewing Merchandising

Production Planning Finance

Material Inspection
Sourcing

I.E Sample Room

 Critical Path
• Develop Standard Operating Procedures
• Example – Merchandiser’s jobs - order
processing, make Bill of Materials, rise
indents for sample & bulk fabrics and
accessories, get approvals
DEPARTMENT ACTIVITY PLAN ACTUAL
Merchandising Receive PO 0 0
Sample
approvals 28 20

Fabric approval 22 22
Accessory
approval 22 23

Sourcing Fabric sourcing 11 15

Accessory
sourcing 6 12
Fabric order to
in-house 50 52
Accessory order
to in-house 50 52

Sampling Fit samples ready 20 21

Production Cut to finish 49 47

 Days Taken for Activities APPROVALS - BUYER

MERCHANDISING

8% 4% SAMPLING
7%
6%
6%
SOURCING

FINANCE
21%
EXPORT - IMPORT

MATERIAL INSPECTION
3% 39%
4% PRODUCTION
2%
COURIER -
MERCHANDISING
COURIER - SOURCING
 Establish Standard Operating
Procedures
• List Critical jobs
• Make SOP bulletin
• Highlights delays
• Analysis & course correction
 TnA (Time and Action)
• Each Buyer is unique
• Identify Critical Requirements
• List Critical Actions
• Set Time and Action plan
• Set-up online alerts
 Do It Now
• Time saved is profit gained
• Develop TEAM spirit
• Online appraisal can do a lot
• Avoid building BUFFERS in the TnA Plan
 Do Not Ask for Extensions
• Remember you are a service industry
• Your buyer is a RETAILER with one or many
stores in one country or many countries
• The buyer’s constraint is season and climate
• You will not buy woollens in summer or cottons
in winter
• A 2 day delay by you will result in a total delay of
nearly 60 days or 2 months. A season may end.
 Right R M on Time
• Develop pro-active plan for Raw Material
(RM) procurement
• Each RM is different
• Establish time lines
• Evaluate procurement concerns –
Domestic vs Imported
 Right RM on Time
• Evaluate concerns- price, time &
transport
• Set formulae to help in decision making
• Import - documentation is critical
• Customs formalities time consuming
 Other Critical Items
• Develop list of critical items by
PROCESS, TIME and QUALITY
• Example – zipper, interlining, special
threads and buttons, embroidery, wash,
packing
 Process Planning
• Plan Processes in Sequence
• Sourcing
• Sample making & approvals
• R M inspection & testing
• Pattern grading & marker planning
 Time Lines
• R M –domestic 60 days
& imported 25 days
• Transport 15 -28 days
• Customs 7 days
• Inspection & testing 7-15 days
• Pre-production 4 days
 PPP

• THE PRODUCTION PLANNING PROCESS

• WHERE IT STARTS
 PPP-THE BUSINESS PLAN
PRODUCTION PLANNING – PENULTIMATE RUNNER

BOOK CAPACITY – RECEIVE ENQUIRY

ESTIMATE / ANALYSE – TIME, DIFFICULTY, R M & COST

CONFIRM PRICE & ACCEPT ORDER

MAKE SAMPLE (S) RECEIVE APPROVAL

SOURCE R M, GET APPROVALS, PLACE ORDERS WITH

VENDORS

IN-HOUSE RAW MATERIALS, INSPECT & CHECK QUALITY /

QUANTITY

CONINUED ….
 THE PLAN - 2

PPP

PLAN MACHINE LAYOUT / CUTTING

START PRODUCTION

CHECK QUALITY
THE PLAN - 3
PPP

FINISH / WASH / PACK

FINAL INSPECTION

DOCUMENTATION &
DELIVERY
 Production Planning & TnA

Buyers time from order placement to

garment delivery

Normal time line – 90 to 120 days for staple

 Sample Making Activity
1) Receive Purchase Order
2) Make sample & courier
3) Comments for correction
4) Remake & courier
5) Receive approval
 Raw material Sourcing Activity
6) Source fabric – receive sample
7) Courier – swatch for approval
8) Receive approval from customer
9) Source accessories – receive samples
10) Courier trims/accessory samples
11) Place order with suppliers
– arrange for pilot yardage/sample qty
Raw material dispatch Activity
12) Fabric production – imported

13) Transit - warehouse to warehouse-by sea

14) Trims/accessory
production by suppliers
– domestic / imported

15) Transit -warehouse to -warehouse

from overseas by sea
Production unit Sample making
16) Identify production unit,
sample analysis and making
 Pilot yardage & Trims inspection
17) Pilot R M in-house

18) Check fabric – shrinkage, width,

color fastness, defects, shade
variation, bowing & skewing,
and wash standard
Sample garment for Wash care
19) Sample for garment test & wash care
instruction
20) Test report & wash care label

Size set samples

21) Size set in bulk RM
Bulk RM Inspection – Stores
22) Bulk R M check quantity & quality

23) Issue R M to production unit

 Production
24) Cutting Section Activities
25) Set the production line
26) Check quality, machine layout
27) Check product quality
28) Pilot production inspection
30) Mid-inspection by customer
31) Pack finished garments
32) Arrange final inspection
33) Arrange to truck-out to
 Total Production Cycle
• Time to establish bank limits & LC
• Time for sourcing & production
• Time for payment realization
• Total cycle not to exceed 120 days for
staple items
 The Key
• Flexible work culture
• Team work
• Commitment
• Strong sourcing
• Definite Job description &
responsibility
Thank You