So you have a scenario where as after completing your orders you have balance fabrics left over. This could seriously damage your company in monetary value.
The above picture shows us the look of a well maintained warehouse, now most factories will have a warehouse that looks like this, everything neat and tidy, fabrics can be pin pointed, batched by width, lot and shade, this also looks great for when factory visits take place.
However, the below picture will show you what nobody wants to see, "The balance fabrics" the orders that were purchased using wrong calculations (BOM) or where merchandisers/purchasers add on extra percentages for safety nets. (this is a true reality).
So the question "how important is fabric reconciliation"? I think you will agree very important. Fabric Utilization Ltd is a consultancy that can help you in this area, One of the first things I do is to evaluate all the SOP's that you currently work on, secondly is to look at the actual way the fabric are 1) handled, 2) calculated, 3) used. this will then give me the chance to work on how much process loss should be added to orders.
Take a look at this below image that shows you how Fabric Utilization Ltd can show you your exact process losses for each of your orders.
Now that i have an exact report that i can work on, i know the exact amount of process loss i need to add to your orders going forward, this is based on style and fabrication. I have a report that can be used to monitor my fabric suppliers performance and most of all a report that tells me my fabric savings, initially can be used in repeat orders, or orders that use the same fabric
The ultimate goal is not to purchase this fabric in the very beginning.
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