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SUBJECT: Export Merchandising ASSIGNMENT NO: 4

CASE STUDY ANALYSIS OF LEAD TIME MANAGEMENT PRACTISES IN VT GARMENT CO.

SUBMITTED TO: Ms Nithya SUBMITTED BY: Aishwarya Purandare Kalita Lamba Semester II Masters of Fashion Management NIFT Bangalore

ACKNOWLEDGEMENT
We take this opportunity to express our gratitude to Ms Nithya for her valuable inputs and guidance during the completion of the project. The project allowed us to study the inventory management practises in detail and understand all the facets thereof. I have gained immense knowledge and experience while working on the project. Aishwarya Purandare Kalita Lamba Semester II, FMS department NIFT Bangalore

CONTENTS
Company Profile Case study-Fast React technology for VT Garments Co. Analysis of case study Bibliography

COMPANY PROFILE

Company name: VT Garments Co. Country of origin: Thailand Product categories: Outerwear and Casual wear Buyers: Nike, Puma, Columbia, Abercrombie & Fitch, Ansons, Decathlon, Peek & Cloppenburg, Kaufhof, Metro Countries of export: Europe, USA and Japan Case studies are analyses of persons, events, decisions, periods, projects, policies, institutions, or other systems that are studied holistically by one or more methods. The case that is the subject of the inquiry will be an instance of a class of phenomena that provides an analytical frame within which the study is conducted and which the case illuminates and explicates. The below case study aims at understanding the problems faced by VT Garments Co due to the use of manual systems and ERP business systems. It also aims to provide solution for the above problems by improving its on-time delivery performance and reducing the airfreight cost caused by delays.

CASE STUDY ANALYSIS


VT Garments Co was lacking severely in the key areas of factory capacity and critical path. Incorrect factory capacities led to assumptions of higher production capacities and greater order volumes. Incorrect planning of the critical path provided unrealistic key dates in terms of development, sourcing, production. These planning procedures were not integrated in the ERP system used by the company and ran parallel to the ERP software, this further increased the handling time and order processing time as employees had to shuffle between the various mediums for information. To overcome these problems and meet the higher demand, VT Garments Co implemented the Evolve planning and management tool developed by FastReact Enterprises specifically for garment manufacturing plants. Evolve is a highly visual capacity planning and management tool, developed specifically to enable manufacturer of garments, footwear and accessories which allows fast and accurate planning of manufacturing lines, machines, and supporting processes, including subcontractors. Key features of Evolve FastReact System

Reducing lead time and delivery problems. Prioritizing material requirements to meet the latest plan. Improving "on time start" and reducing line stoppages. Improving control of "work in progress". Providing rapid re-planning options to find effective solutions. Fast access to information and the flexibility to respond quickly when requirements change. Cost-effective

Use of FastReact system by VT Garments Co enabled the company to reduce its delivery problems and by ensuring the production process was carried out within the pre-set time frame of the company. Proper management of the production process trim down the work in progress and the inventory levels are reduced significantly in the organisation. Moreover the integration of systems like ERP, critical path and factory capacity brought about a smooth workflow and provided a central point of reference for all users within the organisation. With future expansion multi-site collaboration within companies of several locations will also be possible.

CONCLUSION
Excess lead times and work in progress are among the two major hindrances faced by apparel exporters today. Use of systems like FastReact enables exporters to improve on-time delivery schedules and reduce the work in progress inventory within the company. This leads to effective utilization and management of resources like raw material, finished goods, spares and consumables. This enables to subsequent reduction of the cost of operation and increases profitability on the part of the exporter. In todays times where competition among exporters is intense and resources are scarce, increase profits of the organisation can be achieved by merely changing the companys information systems without having to incur any additional expenditure on physical resources or production capacities to the company. The move taken by VT Garments Co to upgrade their information systems was a smart move and has shown substantial results in the company. Adapting new information systems is one of the most effective practises followed by apparel manufacturers today to improve supply chain and lead times of the company.

BIBLIOGRAPHY

ONLINE REFERENCE: http://www.fastreact.com/case_studies.php?id=130

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