THE CHALLENGE
A well-established brand, having a buying office in Paris changed part of their manufacturing strategy from outsourcing their CMT (Cut, Make & Trim) activities to a true end-to-end outsourced manufacturing model. The brand’s strategy, for some years, was to retain the pattern making and prototyping of new styles and as well as sourcing of materials in house.
The client had a long history working with manufacturers based in Tunisia and outsourced the labor-intensive activities, ie. the cut, make/sew, trimming, final quality assurance and packing to sewing centres.
With an evolving apparel market place as well as greater investment by partners in providing process driven end-to-end manufacturing services, ASADA’s client wanted to optimise his team and resources’ time by focusing more on his core business – being brand development and marketing. At the same time, he wanted to invest less time in “factory” related aspects of the supply chain – whilst also ensuring quality and price specifications were always adhered to.
In the end, it was clear, the Client simply wanted a reliable, process and Quality Management System driven partner – with strong sourcing and technical capabilities to provide efficient quoting as well as developing parts of his collection as finished product.
As such, the Lead Buyer from the brand wanted to the pilot the end to end manufacturing process with ASADA, in effect outsourcing the CMT process with ASADA.
Information provided by Client:
- To manufacture 5000 Casual Female Jackets – for the upcoming Summer Season.
- Type of Fabric / Material sought: Crewel with green / yellow floral design.
- Accessories: Vintage-look Pearl buttons.
- A Target (approximate) price per garment including sourcing and manufacture, excluding delivery.
- Timeline for complete process, i.e. quotation to delivery: 10 weeks, plus 2 weeks into the to allow retail store distribution.
SOLUTION GENERATION
The first action taken by ASADA is the appointment of an internal ASADA Project Manager who was the Single Point of Contact for the Client’s own Buyer and designer.
A meeting was arranged at at the Client’s Paris offices for the kick off. Prior to the meeting the Buyer from the Client sent the ASADA Project Manager their trend books and collection plans.
Armed with this information, ASADA’s Design and Innovation Centre team prepared a range of fabric samples and accessories as set out in the Client’s trend book.
The meeting was held, and a success. We agree to proceed.
The key next step was the development and sign-off of the Project Initiation Document (PID). It contained:
- Project Schedule, with key milestones along the entire production process.
- Specifications and Approximate Volumes
- Materials / Accessories
- Information Gathered:
Upon sign-off of the PID, the ASADA PM started to source the materials required for the project. Two key suppliers were found with Crewel fabric. Both styles were confirmed as suitable for the Client.
Samples were provided to ASADA by both suppliers from which the ASADA team developed a number of samples for eventual agreement with Client.
At the same time, and due to ASADA’s processes and already existing agreements with the suppliers, a Request for Quotation was released to the two suppliers – with strict quality and delivery stipulations.
The Vintage-look Pearl buttons were easily sourced from a key ASADA accessory supplier – where ASADA have an ongoing commercial relationship, ensuring the best prices for accessories, based on the volume of business done.
Once the samples / prototypes were approved by the Buyer, and also confirmation of the initial number of units to be produced with a target price agreed. Concurrently, a number of negotiations involving the suppliers, and then confirmation with the Buyer, one of the suppliers were selected, in this case delivering 7,000 metres of fabric as part of the initial order.
The manufacturing process included some intricate embroidery as part of the design, as well as attachment of unique labels – readying the garments for immediate distribution for sale in retail stores.
The 5000 jackets were delivered to the Client, who was very happy with the expedited processes and clarity of roles and responsibilities of the ASADA / Client’s team. The units were delivered within the expected 10 weeks but importantly agreed to be delivered to nodes of the Retail network, further assisting the Client to meet its 12-week target.
BENEFITS ACHIEVED
The key benefit was ASADA’s PM ability to work closely with her equivalent in the Client’s organisation.
ASADA were able to prove that its processes would meet its Client’s expectations of a true end-to-end outsourcing model, whilst saving the company money on the cost of the price per unit. As the Buyer stated, “we can now focus on the things that we add greater value… ASADA’s internal processes and knowledge of the market and relationship model with suppliers combined to expedite the overall buying and delivery processes. A level of trust is achieved whereby prices requested are realistic and transparent”.
Another benefit to the Client is that they have a partner in ASADA with whom they can work openly and have confidence that what ASADA plans will be what will be delivered, at the right time, quality and prices.
For ASADA, they have continued business with a trusted customer, and a happy customer who is willing to act as a referee whenever required.
A win-win throughout!
For further information on this Case Study and in particular our Production and Purchasing methodologies, contact us on info@asadagroup.com.
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