For food and beverage manufacturers, the failure to meet demand peaks can result in poor customer service, lost revenue, stockouts, brand erosion, and—in extreme cases—being delisted by a major customer. However, with stock build optimization, manufacturers can minimize the time and total value of the stock being held, and realize higher profits and working capital.
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Lean supply chain management and lean sourcing strategies are relatively new to the apparel industry, generating more talk than broad implementation to date. In this the final paper of our “Lean Is Fashionable” thought leadership series, we define a lean supply chain action plan with five concrete steps for building a collaborative infrastructure between your company and other members of your supply network. These represent an eleven year culmination of our and our customers’ real world experiences in implementing lean supply chain strategies that are designed as a road map to achieving a more collaborative and profitable future.
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As apparel and textile companies move to outsourcing production—relinquishing direct control in favor of a more cost-effective manufacturing model—a lean supply chain may appear to be the next logical step for further implementing cost and operational improvement. Not so, however. You can’t have a lean supply chain without lean manufacturing. Regardless of whether you or your partners engage in production, lean manufacturing is the lean engine that drives lean supply chain efficiencies. Accordingly, the business requirement for stability in a constantly changing demand environment motivates the fashion industry’s search for lean supply chain management principles and practices.
Intentia, in cooperation with industry experts, have written a series of thought leadership white papers on the concept of implementing lean supply chain in the fashion industry. The second of this series, From Lean Manufacturing to Lean Supply Chain explains how lean manufacturing relates to lean supply chain management and where it differs and sometimes conflicts.
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Fashion companies need to respond quickly and strategically to major changes occurring in today’s global supply chains.
Implementing a lean supply chain management strategy can enable cost savings and more efficient operations by realigning process according to a demand-driven model.
Lean supply chain management uses Web-based technologies to create and maintain dynamic supplier networks. Such networks are able to deliver the highest customer value at the lowest cost. It also lays the groundwork for the next level of hands-free, wireless radio frequency identification-enabled processes.
Intentia, in cooperation with industry experts, have written a series of thought leadership white papers on the concept of implementing lean supply chain in the fashion industry. The first of this series, “Lean Is Fashionable”, explores the impact of lean practices in the fashion and apparel industry during a period of momentous change.
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Production based on the principles of lean manufacturing combined with Movex APP has been the key to significant improvements since the end of the 1990s at pump manufacturer APV Products in Horsens, Denmark. “By streamlining the many workflows, we have been able to cut out all the redundant processes. Thus we have seen an amazing reduction of delivery time, from twenty-five days to only a couple of days. At the same time our inventory turnover has increased, which means that our inventory has been reduced to a third. And last but not least, our productivity is higher.” Bjorn Sommer, Product Line Manager, APV Products.
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Manufacturers everywhere are turning to “lean manufacturing” to help them combat competition from low-cost countries and meet the increasing demands from customers for shorter lead times, more product variety and smaller orders. Lean manufacturing is a philosophy that focuses on customer value-adding activities, elimination of waste and continuous improvement in order to meet pull-driven customer demand.
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US companies spend approximately $300 billion (USD) annually on asset maintenance and operations, with 80 percent going to fixing asset failures. This situation can now be drastically improved with the advent of enterprise asset management (EAM) solutions that incorporate closed-loop diagnostics. This best-of-breed maintenance functionality extends the boundaries of traditional software by providing specialized failure analysis features that are fully integrated with core business processes. This paper examines how EAM solutions can support closed-loop diagnostics to provide a number of significant benefits.
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