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Almost every major softgoods retailer or brand has an initiative underway to reduce cycle time. Five years ago this was a luxury, and 10 years ago only the most progressive companies understood the benefits and concept behind speed-to-market excellence. Today, how-ever, speed to market is a prerequisite for success in some market segments and for survival in other markets.
Better, Faster, Cheaper
In the past, companies attempted to maximize their competitive advantage in two of these three areas with strong emphasis on cheaper. A few decades ago, the apparel industry had two seasons, fall/winter and spring/summer. Development cycles of 12 to 18 months were the norm and totally competitive. Consumers accepted this restriction because prior to World War II and in the years immediately following the war, the average consumer had little discretionary income. Furthermore, even if the consumer had the income, there was little choice in terms of retail stores and merchandise options.
However, today there is more discretionary income and there are major shopping centers in every metropolitan area, even in rural communities. Today’s consumer can walk door to door and select from a wide range of products in a plethora of styles.
Thirty years ago, companies were just beginning to outsource production. The motivating factor was to reduce costs by chasing lower-cost labor markets. Labor cost in manufacturing was the driving force for a stronger competitive position and speed to market was rarely addressed.
Today, almost every element of cost has been milked out of manufacturing. Companies finally are beginning to realize the futility of focusing on manufacturing, and appreciating that additional savings only can be achieved by looking at the total value chain.
Historically, companies could be competitive by addressing cost and quality, cost and speed, or speed and quality. To borrow a title from a popular Meat Loaf song, “Two Out of Three Ain’t Bad” was the accepted mode of operation. Today, two out of three isn’t bad, it’s a disaster. Successful companies must excel in all three elements —better, faster and cheaper.
Speed-To-Market Initiative Guidelines
Companies starting speed-to-market initiatives must address the total value chain, not just manufacturing or other specific elements. For example, raw material development and availability must be part of the analysis, and logistics (incoming and outgoing freight and distribution) are equally important.
It is essential to calculate and understand the absolute and cumulative time required for the various elements that make up the value chain.
Process mapping should be used to identify handoffs and to determine what steps currently performed in series might potentially be performed in parallel.
Consider the impact of proximity on the lifecycle. Making products in one geographic area rather than shipping them from country to country can speed up the cycle. In some cases, this is being accomplished by “clustering” key suppliers. Proximity is also one of the key reasons why so many companies are reconsidering Central American Free Trade Agreement-Dominican Republic countries today.
Remember that technology is anenabler, not a silver bullet. Technology will not correct a broken process, so make certain the process is streamlined first.
Technology such as Product Lifecycle Management (PLM) has advanced features for linking product information and provides a level of process visibility not previously available.
Case Studies
El Salvador-based sportswear manufacturer Partex Apparel Group has implemented a world-class lean manufacturing operation and focused on reducing cycle time in collaboration with both raw material suppliers and clients. The results have been so impressive that at least one major supplier is switching production from Asia to Partex.
Koramsa Corp., a denim producer based in Guatemala, has the most effective cluster operation in the Western Hemisphere. In a conscious and well-thought-out cluster program — called Virtual Vertical Kluster (VVK) —Koramsa has pulled together all its key suppliers into one complex so there virtually is no delay in securing raw materials to make its jeans. With 19,000 employees and flexible manufacturing lines that can be changed quickly, Koramsa is set up for quick turns.
Through a review of its operation, Ventura, Calif.-based Patagonia Inc. found its product development team was spending considerable time searching in many places for various pieces of product information. The company has embarked on a major program to install a PLM system to consolidate product information in one electronic filing cabinet. Phase one of the Patagonia operation was up and operational in five months from date of order.
Final Thoughts
A speed-to-market initiative will not work without executive endorsement. In a large organization, it is necessary to have an executive sponsor that can remove obstacles whenever “authority” is required. It is critical to begin a speed-to-market project by identifying a project team and freeing these individuals from other responsibilities.
Change management is extremely important and if it is ignored, there is a likelihood that the new process will fail. Employee “buy in” is important for any major process change or technology implementation to work. Pay as much attention to the resources required for implementation as the resources required to purchase and execute the new process.
Finally, there is the temptation to try to design and implement new process changes with internal staff to minimize the investment. However, this is rarely successful. The shortest and least costly solution engages an outside team that has a track record with successful speed-to-market process reduction. A A P N
ABOUT The Authors
Walter T. Wilhelm is president and CEO of Walter Wilhelm Associates LLC (WWA ) ;
and M. Jo Kallal is a professor of apparel design at the University of Delaware.
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