Fast React Asia Ltd (Cut & Sew October 2003)
Fast React Systems, a leading UK-based company which supplies Planning and Scheduling Solutions to worldwide apparel and footwear and textile companies, recently opened a new office in Thailand under the banner of Fast React Asia Limited. Cut & Sew had an opportunity to interview Mr. Simon Gibson, Managing Director, who heads the company's operations in Thailand.
Taken from Cut & Sew October 2003
Fast React Systems, a leading UK-based company which supplies Planning and Scheduling Solutions to worldwide apparel and footwear and textile companies, recently opened a new office in Thailand under the banner of Fast React Asia Limited. Cut & Sew had an opportunity to interview Mr. Simon Gibson, Managing Director, who heads the company's operations in Thailand.
What differentiates Fast React from its competitors?
Using traditional spreadsheets or even an ERP system, most organizations struggle with the constantly changing situation forced on them by customer reactions to retail sales and raw material supply problems. Managing each action for a high volume of garments becomes a complex process; due to the knock on effect, one small change multiplies into many changes to the plan. All these changes then have to be quickly and easily communicated to all relevant staff.
Fast React's very visual and graphical system is very easy to understand and use, colour codes identify problems and show order status. When an order comes in for 3,000 T-shirts for October delivery, the first thing we have to decide after agreeing on the style and price is: can we deliver on time? If we're going to make it during this period, do we have enough teams to make the shirts? If the shirt lines are full, can we move it to the trousers line and accept lower efficiency?
After confirming the delivery date, Fast React automatically sets the time and action plan for the critical pre-production process, i.e., ordering the fabric and trims, making samples and getting them approved etc. and also the production process, cut through to pack.
Since purchasing, production, engineer, sample and marker people now have the same target and goal, internal operations are smoother; less time is spent chasing orders.
Upon task completion, people input back into the system so we can track the progress of each order.
Fast React solutions enable businesses to carry out "what-if' scenario simulations to find the best solutions to new problems as they Mr. Simon Gibson. Managing Director arise. Linking Fast React to other business and shop floor systems is easily accomplished through the import/export facility thus eliminating the need for multiple data entry into several systems.
So Fast React helps users to cut costs in terms of the number of people controlling the process, late delivery penalties, airfreight costs and other mistakes and as a result serve their buyers better.
Customer base & network
Today, over 200 companies in 26 countries are using our system, about 25% of those in Asia. Customers include small buying and trading companies through to large manufacturers with 17,000 staff and factories in several countries, Fast React users make a wide range product for a broad range of customers both branded and FOB.
After two and half years, Fast React has around 11 users in Thailand, including, Nanyang Garment, VT Garment, Oriental Garment, Jintana Apparel, Thai Silp. Global customers include Burberry, Hong Kong's Top Form Group and Smart Shirts, and several of Sri Lanka's biggest garment companies. 50% of our customers worldwide have installed Fast React to supplement their business or ERP systems.
What's your marketing strategy?
With 11 customers in Thailand, the 2nd biggest user in Asia, Thailand serves as a good central point. As textiles are one of Thailand's Top-10 export industries, our goal is to increase the number of users in Thailand and elsewhere in Asia. While more local distributors will be appointed in some other countries. Thailand will remain the base for product development, training, testing new ideas, and installation for the time being.
We also work with strategic partners to link up Fast React with other IT business systems that don't provide a planning tool. Our goal is to become the international planning standard for the textile and garment industry.
What about the payback?
Without access to customers' accounts, we can't calculate actual ROI that varies from company to company. However, various case studies confirm that customers are satisfied with reduction in late deliveries and penalties, less airfreight costs, as well as generally improved communication and business coordination. Many customers go on to upgrade or expand their system based on the benefits they achieved.
On-the-job training and after-sales service
Normally Fast React systems can be set up and running in 1 month, we teach the customer to apply it to their own data at their own factory. As trainers have direct experience in the garment industry, our expertise from working in many garment companies in many different parts of the world helps people to learn to use the system more quickly and effectively. Support desks in Bangkok and the UK provide speedy after-sales service. We also visit customers' sites at least once a year to suggest how they can use the system better and get more benefit. If the customer has some new type of business or customer, Fast React system can accommodate their business expansion.
We typically release product upgrades 4 times a year so the system actually gets better instead of depreciating over the years.
Any comments on the local textile industry?
Based on 2 decades of personal experience in the UK textile industry as well as direct contacts with Asian manufacturers, I think textile companies can be a lot more efficient in terms of management techniques, staff training and investment in technology. Compared to one week's WIP and a 45 day lead time in the UK, most garment makers in Asia are still running on 4 weeks WIP and 90 day lead times.
Although costs are rising in Thailand, it's still a lot lower than the UK, I would estimate that a typical factory in Asia is about 50% efficient compared to one in the UK so there is still a huge opportunity for Thai companies to improve and compete with China - but you must work smart instead of work hard. Current brand building initiative will not only add value but also increase the pressure for planning, stock control and Quick Response due to requirements for daily or weekly deliveries. Fast React can help local companies to respond very quickly to changes in the international and local markets.
As lead times get shorter while retailers and manufacturers are pressured to cut costs, most buyers now prefer to work in a country where they can develop and design the raw materials and accessories, make it into garment then ship it. Completing the whole process in one country is quicker, easier to control and cheaper. So although many manufacturers moved from Indonesia and Korea to China due to labor cost – some companies and their buyers are starting to come back because Indonesia and Korea still have some good fabrics and they can do everything on the same location.
Despite outstanding advantage in terms of design and artistic skills, aside from productivity, about which much is written, the biggest challenge facing Thailand today is insufficient variety of locally produced fabrics and accessories.
