ArticleIan Brimblecombe
Manufacturing Services Manager
Australian Country Spinners (Australia)
By 2010, Will Your Organisation Be Proactive, Reactive Or Obsolete?
Do you need capital to invest in survival and future profitability?
FACT: POOR PLANNING = EXCESSIVE 'FIREFIGHTING' = EXCESS COST
(loss of efficiency, poor on time delivery performance, air freight and late delivery penalties)
Recent studies of total manufacturing cost per machine shift in South Asia (Stitchworld Magazine, June 2007), have indicated a total cost of 18 US$ per machine shift, even excluding lease costs and depreciation.
On this basis a factory with 1,000 workers has operating costs P.A. of 1,000 x 18 USD x 48 weeks = 5,184,000 USD
A 2% increase in productivity can yield over 100,000 USD in savings.
A 3% increase in productivity can yield over 150,000 USD in savings.
Fastreact planning software can help you to achieve these savings and more NOW! Rapid implementation and available return on investment within weeks mean that you can be realising savings immediately.
The entire investment in Fastreact can be ZERO NET COST in only a few months and heavily cash positive in the first year. Attractive payment terms allow you to access these savings even before paying for the solution in full.
Most importantly, the 'Cost of Delay' of inaction, for a 1,000 worker factory is likely to be at least 10,000 USD per month, EVERY MONTH and probably much more!
Join over 40 factories in Sri Lanka, 50 factories in India and around 250 factories in Asia who have already realised benefits through Fastreact.
It is worth noting that more companies have accessed the benefits of Fastreact in India in the first 2 years since launch than in any other country in the last 10 years.
The race is on.... Make Fastreact THE compelling priority for your business!
For a white paper on this subject, more information on existing users or to discuss how Fastreact can help your business, please contact us.
In fact while the scale and complexity of our business have increased, thanks to Fastreact, we have been quite successful in execution of our orders. I think the planning board is perhaps the most useful invention for the apparel industry (and for the hapless souls who work in this industry) !!
Krishna Kumar
Chief Executive Officer
Integra Apparels (India)
Fast React typically quotes a ROI of under one year. However, considering our monthly wage bill, a 2% improvement of our monthly efficiency (by just improving our planning) can provide a ROI under 3-4 months
Gokal Chittaranjan
Chief Executive - Manufacturing
LT Karle (India)
Increased Sales
Reduced Lead Time (less waiting time/better efficiency) and improved product availability (less lost sales), should lead to an increase in sales revenue.
Expected Benefit: 0 - 7% increase in sales
Reduction In Late Delivery Penalties
More Reliable on time deliveries and better visibility of supply chain problems, should lead to a reduction in late delivery penalties and charge backs.
Expected Benefit: 5 - 20% reduction in late delivery penalty charges
Purchasing
Forward visibility of requirements should result in the ability to be able to negotiate better discounts with suppliers, the utilisation of multiple sources and timed deliveries will result in an overall reduction in purchasing costs.
Expected Benefit: 0 - 3% reduction in purchase costs
Reduction In Reprocessing Costs
By planning effectively, finished goods can be delivered in their planned condition, reducing the need for reprocessing i.e. re-packaging, attachment of new tags/labels.
Expected Benefit: 5 - 50% reduction in Excess Reprocessing costs
Better Decision Making
Due to the availability of accurate order information and the ability to analyse order status and item availability information quickly.
Expected Benefit: 0.5 - 5% improvement in overall efficiency
Finished Goods:
Manufacturing/ Sourcing according to effective plans and Just In Time deliveries of the required finished products, should lead to a reduction in finished goods stock levels.
Expected Benefit - Finished Goods: 0 - 5% reduction in Finished Goods stock levels
Raw Materials:
Sourcing according to effective plans and Just In Time deliveries of the required material, should lead to a reduction in raw material stock levels.
Expected Benefit - Raw Materials: 0 - 5% reduction in Raw Materials stock levels
work In Progress:
Manufacturing according to effective plans and reduced wait time and increased visibility, should lead to a reduction in Work in Progress stock levels.
Expected Benefit - Work in Progress: 0 - 5% reduction in Work In Progress stock levels
General:
The values above reflect a 1 time reduction, a benefit will also occur from the reduced funding costs of these lower stock levels.
Annual reduction in stockholding costs: 0 - 5%
Higher instance of Just-in-Time deliveries and more Visibility of the Supply Chain will reduce the risk of late deliveries and hence reduce any potential stock write down charges.
Expected Benefit: 5 - 15% reduction in markdown value.
Fast React are specialist providers of Planning, Sourcing and Critical Path Management solutions specifically developed for the Apparel, Textiles and Footwear sectors where tight margins and short lead-times are commonplace.
