About this Presentation
The fashion clothing market is extremely dynamic and has many products with very short life cycles. This scenario makes many products have such low sales that fail to sell even the first production batch. Even when this batch is very small for the industry, they are generating large obsolete inventory accumulation in the fashion point of view. While items that sell more than the initial forecast will quickly stock out, causing significant loss of sales and lack of real demand for this product. Being able to identify which products would sell significantly more and being able to replenish them and ensure the availability, generates a perception of value by the customer and significant increases profitability. The TOC solution to meet this important customer need proposes putting these best sellers in a model replacement for MTA. However, the demand for this product may fall drastically in a short period of time, causing obsolescence in the MTA stock and generate more losses than gains. Due to this negative branch which is common to the MTA solution it is not used in the fashion clothing segment. I will present an implementation case study in a big retailer of fashion clothes in Brazil, which has more than 250 stores, three distribution centers and 7 factories. Through this case study, we avoid this negative branch creating a process that quickly identifies the items that sell much more than was expected, to verify the availability of raw materials and generating orders in MTO that take advantage of short lead time industrial segment and generated by the implementation of the DBR in an integrated supply chain. Along with the process were developed some S & T organizations to support the implementation as well as a simple and robust system of prioritization and management of industrial capacity, set a control panel that shows the operating and financial results generated by the replacement initiative of the best fashion sellers by MTO in lead time super-fast.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The fashion clothes market is extremely dynamic, and even big giants have a small fraction of the business. The company discussed is a major Brazilian retail chain with a fully integrated supply chain.
There is a large accumulation of inventory obsolescence and significant sales are lost for certain items. The company launches over 3,000 new products every month.
The company has implemented a process to identify fast movers and decide the most appropriate way to replenish them, either make-to-order (MTO) or make-to-availability (MTA).
Instructor(s)
Jennifer Eckman
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.