Lean in Fashion Retail Industry

Lean is way to reduce or if possible, then to eliminate the waste. It can be applied in all sector, like from production to marketing to retail. As we know that there are basically 7 waste or muda.

1)      Transportation

2)      Inventory

3)      Motion

4)      Waiting

5)      Over-Production

6)      Over-Processing

7)      Defects

In short we can call them as “TIMWOOD”.

There are many techniques to find the waste. But before that we must know the product structure of the Industry.  The case study by Ulla Lehtinen and Margit Torkko was on the Food Manufacturing Company. Here is the comparison of the Food and Fashion Retail Industry at superficial level.

FOOD SUPPLY CHAIN INDUSTRY	FASHION RETAIL INDUSTRY
·         The products is perishable items.	·         The products is non-perishable.
·         Very less variation in design.	·         One of the most versatile industry in terms of design.
·         The plant Layout is mostly “Fixed position Layout” and process type layout.	·         Mostly follows the “product type layout”.
·         Less Innovative.	·         Very Innovative in terms of styles, designs.
·         Only has to forecast the demand by viewing previous sales data.	·         Forecast of consumer taste and demand and also keeping in mind about the trend change scenario or new penchant for the future product.
·         Manufacturing and Packaging is fast process.	·         Manufacturing and packaging is tedious job.

So, retail store has limited storing space. The Fashion forecaster can refer the previous data about past sales record to take some inspiration. But it is of not much help. The Fashion Industry is very capricious in nature. Forecasting is not an easy job. One has to really comprehend the mindset of the mobs and also their fickle-mindedness. We have to look into every matter not only from A-Z but beyond that too. It is a risky business and one really has to prepare for every contingencies.

We often listen the triumphant journey of Zara. The multi-billion industry rest in niche of Spain and becoming same old cliché for success story. The answer is very simple because the ZARA control all the steps of manufacturing, distribution and sales in order to cut costs and to make huge gains in speed and flexibility is the key to a retailer’s survival. The labor charge is high in Spain but still ZARA running the manufacturing unit over there. The Zara manufactures modicum amount product with many style variations at a time. By cutting the advertising cost and inventory costs and adjusting to fashion trend quickly.

Methodology of Value Stream Mapping:

   

• First and Foremost determine the demand.

• Calculate the available time from order of products to retail.

•  Calculating the Takt Time, colloquially know as pitch time in Manufacturing Industry. Takt is derived from the Deutsch language means ‘meter’.
•              Comparing the total cycle time against the Takt Time using any form of chart or graphs like Bargraphs and Histogram as used in the Food Supply chain case study.
•          Draw a VSM and there you can provide the Takt Time at each step.
   
  
  
  
  
  
  
   STAGES UNDER SCRUTINY:

• 1)      PRODUCT STRUCTURE (Garments)

Packaging

Brand

Size

Style

                                                                                                                                      

• 2)      Identifying the distribution channel:

Merchandiser

Merchandiser Warehouse

Retailer Warehouse

Retail Store

 

  

• 3)      Map Physical Location:

At this stage we should be ready to put physical location in value stream. After that, we should add material flow into the map. Production cycle time can be added to the map here.

1. 4)      Identify the Information Flow:

This helps in knowing the authenticity and accuracy of the data. This bring transparency in the information flow. This helps in realizing the hidden problems in the whole system. Nowadays, Electronic Interchangeable Data is more commonly used in order to track the status quo of the whole process. Thus it provides real data time, and so it helps in quickly responding to the matter.

1. 5)      Develop Alternatives:

At this point we should identify the one of the 7 wastes. The collective brainstorming is done by the team members after viewing the whole mapping and the data in all forms. The pictorial data give clearer image about the whole process.

CONCLUSION:

In Fashion Retail Industry the biggest challenge is completion of order in time. This can only be possible if the non-added value ingredients are permanently removed. The Fabric constitutes 75-80% of the whole garment cost. So, from the very beginning the CAD department should plan in such a way that it shall be able optimize the marker planning. This reduces the Fabric waste. The cutting department should be proficient in laying and cutting. If this stage is cleared then the opulence amount of money can be saved.

Another grave endeavor is Supply chain. The success is only possible if all the teams collectively coordinate and take action accordingly. The Inventory is common problem in retail. So generally speaking, the off season product are disposed at lower price, sometime reaching till 90% off. The new style product is never compromised with the old one in this industry. Albeit there is no such expiry or perishability of the product, it is just the abstraction ism in the mind which make them obscure for the sake of new trend.

Excessive transportation is another big concern as it creates chaos and waste time, gasoline and money. The proper conduit of information can bring stability. The Material Handling should be minimized in order to maintain the certain standard. Once the garment reaches to the retail store then material handling is not a so much concern. But still as a customer it is our candid duty to use the garment in trial room with delicate manner without exempting the essence of the Garment. “If Garment is our prerogative then its delicate trial is our duty.”

OTHERS TOOL:

There are some other method like Process activity mapping, Quality Filter Mapping etc. As far as Fashion Retail Industry is concerned Value stream mapping, Process activity mapping, Supply chain Response Matrix, Value-Analysis Time Profile can be used.

The Quality Filter mapping is unnecessary as the quality check is done at very stage in manufacturing unit itself.

The Demand Amplification Mapping can become obsolete because nowadays the lead time itself is around 45-60 days (Zara with only 15 days only!)