The profit paradox: Saving money with a production tracking system

  • Written by Peter Needle
  • Published on 1 March 2018
  • Our Voice

Suppliers, manufacturers and retailers within the garment industry can all reap financial and functional rewards by optimising their backroom processes. However, a recent report by Forbes Insights, Retail's New Imperative: Supply Chain Optimization as a Growth Strategy, refers to attitudes towards the supply chain as the ‘profit paradox’.

Surveyed CEOs reported that addressing supply chain capabilities ranked as their lowest business priority, while investments in people and technology were instead expected to achieve their growth aspirations. However, business growth and business efficiency are inextricably linked, and diligent supply chain management can be achieved with minimal time and effort if production tracking systems are deployed. Yet only 17% of retail CEOs admitted to having technology-enabled solutions that support a collaborative supply chain strategy! So, are production tracking solutions really worth the investment?

Retailers gain transparency over supply chain activities and costs

In order to delight customers and compete with rival high street brands, fashion retailers need this season’s items to be delivered to stores on time, in good condition, complete with tags and packaging - and production tracking solutions can aid in this race to market. Supply chain management software provides retailers with visibility over all orders placed with manufacturers, allowing them to trace production activities and address any supply chain disruptions as they occur, minimising delays.

Forbes found that margin erosion and cost reduction represented a top risk keeping CEOs awake at night, and production tracking systems also enable retailers to see exactly where their money is being spent, with full transparency over manufacturer and supplier orders. Systems can also calculate all rebates due to you, removing motivation for suppliers to subcontract at low prices and making sure that end products match expected pricing and quality standards.

Manufacturers need more than muscle power

Garment manufacturers will naturally invest in their factories and machinery to improve the efficiency and capacity of their production lines, but investment in production tracking solutions should be considered equally vital. Supply chain management tools can transform manufacturing businesses by providing them with the visibility to streamline operations and promote business growth.

By keeping track of retailer orders as soon as they come in, the correct supplies can be ordered immediately with no wastage of time, labour or resources. Production tracking systems can also trace garment manufacturing activities from start to finish, keeping retailers informed of expected delivery times throughout the process. This avoids any miscommunications and potential fallout from unhappy clients.

Suppliers gain insight with order specifications

Production tracking solutions can help to make suppliers’ lives easier too. With the entire supply chain mapped out, suppliers will be provided with an accurate order with full specifications, leaving no room for disputes over any nasty supply chain surprises caused by bad communications.

Up in the clouds with Segura

The benefit of a web-based production tracking solution is that you can access the system from absolutely anywhere with an internet connection. Cloud-based systems are incredibly practical for companies that operate within a number of factories and from offices spread around the globe. Real-time data can be accessed at the touch of a button by multiple departments, allowing teams to work in a more collaborative and responsive manner, while directors can easily drill down from ‘the big picture’ to individual processes and supply chain links.

We’ve shown you how all the pieces of supply chain management fit together like a jigsaw with the help of production tracking solutions, and in an ideal world all garment suppliers, manufacturers and retailers would work together using this kind of framework. Segura production tracking systems can provide a window into your supply chain processes – contact us today to find out more.

Originally published 30/06/2014

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