Rising Cost’s, Lower Profits? Time to find another way!
The current markets are in the grip of rising raw material cost’s and reduced demand due to consumer credit crunch. Today’s Retailers are putting more pressure on Manufacturers to hold down price increases by employing ever more wider Sourcing of raw material supply and better more efficient production processes.

Never has there been so much pressure to change the way Manufacturer’s operate, and never have the challenges  to reduce cost been so keenly looked for. Retailers are looking for Manufacturers who can show they can consistently reduce cost, whilst maintaining the highest standards in Quality, Process and Delivery.

Many Manufacturers do not realize how much excess cost they have in their Material Usages. Raw Materials contribute to over 60% of the overall cost of any product and as such require very close control, yet most factories have developed an attitude of having ‘safety nets’ of additional usage allowances to compensate for their lack of material control. The Fabric suppliers know this and consequently have no reason to help in the control of the costs. The extra sums required for raw materials have to be absorbed by the Manufacturer, with the Suppliers blaming increases in price of oil, cotton etc.

In my many years of working in the UK and Asian factories I have developed systems, tools and training modules to reduce the waste of fabrics in most types of garments.  Improvements at the development stage in Pattern and CAD to reduce the allowances added as the safety is vital as this is the stage where we decide what quantity of raw material we should purchase. I then would link this to improved marker utilizations, through better training and tighter controls, with improvements in fabric controls through by understanding different relaxation and spreading methods in warehouse and cutting rooms all contribute to fabric savings. I can improve fabric utilization by up to 30% in some instances which at this time can offset Suppliers increases and so deliver actual bottom line profits to a business.
The Key to Profit:

1. Development of the garments in CAD & Pattern to include accurate material usage at costing stage
2. Accurate purchasing of Raw Materials to BOM – No added allowances!
3. Tight control of bulk markers to get best usage of available fabric
4. Good fabric handling during warehouse and cutting process to maximize quantity achieved.
5. Well trained, focused staff to work within the process to achieve the profit

This all can be delivered by the fixing from the front of the business and working to the End.