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production and business methods in the integral knitting supply chain

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AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXPRODUCTION AND BUSINESS METHODS IN THE INTEGRALKNITTING SUPPLY CHAINJoel Peterson 1 , Daniel Ekwall 21. School of Textiles, University College of Borås, S-50190 Borås, Sweden, Joel.Peterson@hb.se2. School of Eng<strong>in</strong>eer<strong>in</strong>g, University College of Borås, S-50190 Borås, Sweden, Daniel.Ekwall@hb.seAbstract:Over <strong>the</strong> last 20 years <strong>the</strong>re has been a dramatic technical development of mach<strong>in</strong>es <strong>and</strong>software <strong>in</strong> <strong>the</strong> <strong>production</strong> of knitted fashion garments. This development has made itpossible to rationalise design <strong>and</strong> <strong>production</strong> of knitted garments so that today it ispossible to make a knitted garment, almost ready made, directly <strong>in</strong> <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e,with a m<strong>in</strong>imum of processes, such as cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g. The objective of this paper isto expla<strong>in</strong> <strong>and</strong> give examples of how this new knitt<strong>in</strong>g <strong>production</strong> technology could beimplemented <strong>in</strong> a fast fashion logistic system. The method for this paper is an <strong>in</strong>ductiveapproach based on a literature survey. The new technical achievements have not meant<strong>the</strong> great breakthrough that was expected. Why? Many companies moved <strong>the</strong>ir<strong>production</strong> to development countries where <strong>the</strong> costs of<strong>production</strong>, ma<strong>in</strong>ly labour costsare lower than <strong>in</strong> western countries. Ano<strong>the</strong>r reason is that it is not enough to <strong>in</strong>vest <strong>in</strong>new mach<strong>in</strong>ery <strong>and</strong> <strong>the</strong>n use <strong>the</strong> mach<strong>in</strong>es <strong>in</strong> <strong>the</strong> same <strong>production</strong> system as before. Toga<strong>in</strong> <strong>the</strong> benefits of this technique <strong>the</strong> <strong>production</strong> processes <strong>in</strong> <strong>the</strong> company have to bechanged <strong>and</strong> adapted to <strong>the</strong>se new conditions. The lack of knowledge <strong>in</strong> <strong>supply</strong> cha<strong>in</strong>design <strong>and</strong> a one-sided perspective on <strong>production</strong> costs, <strong>in</strong>stead of a customer orientatedone, is one explanation. This, <strong>in</strong> a <strong>bus<strong>in</strong>ess</strong> (fashion) where <strong>the</strong> dem<strong>and</strong> is chang<strong>in</strong>g dayby-day<strong>and</strong> <strong>the</strong> short time to market is vital to a company’s ability to be competitive. Thisarticle describes <strong>the</strong> <strong>in</strong>tegral <strong>and</strong> complete garment knitt<strong>in</strong>g techniques <strong>and</strong> <strong>the</strong>advantages that <strong>the</strong>y open up, both from a logistics <strong>and</strong> a technical po<strong>in</strong>t of view. An<strong>in</strong>tegral knitted whole garment technology, implemented <strong>and</strong> adjusted to <strong>the</strong> <strong>production</strong><strong>and</strong> <strong>bus<strong>in</strong>ess</strong> system <strong>in</strong> a company, can reduce lead times dramatically <strong>and</strong> respondquickly to <strong>the</strong> rapidly chang<strong>in</strong>g fashion market.Key words:knitt<strong>in</strong>g technology, <strong>in</strong>tegral knitt<strong>in</strong>g, complete garment, <strong>supply</strong> cha<strong>in</strong> management,fashion logistics, mass customisation1. IntroductionThe technical development over <strong>the</strong> last 20 years has opened up new possibilities when it comes to<strong>the</strong> <strong>production</strong> of knitted fashion garments. Traditionally <strong>production</strong> systems for knitted garments didnot fit very well <strong>in</strong>to <strong>the</strong> rapidly chang<strong>in</strong>g fashion dem<strong>and</strong>s of retail<strong>in</strong>g <strong>bus<strong>in</strong>ess</strong> of today. The fashion<strong>and</strong> retail<strong>in</strong>g <strong>bus<strong>in</strong>ess</strong>, with its special dem<strong>and</strong> for respond<strong>in</strong>g to rapid fashion changes, toge<strong>the</strong>r with<strong>the</strong> fact that fashion products have <strong>the</strong>ir special Stock Keep<strong>in</strong>g Unit (SKU) issue, with both many sizes<strong>and</strong> colour comb<strong>in</strong>ations for one fashion model, was out of step with <strong>the</strong> end-user dem<strong>and</strong>s. Rapidfashion changes <strong>and</strong> customer dem<strong>and</strong>s <strong>in</strong>crease <strong>the</strong> need for <strong>production</strong> <strong>and</strong> logistics systems thatmanage to produce <strong>and</strong> deliver products to be put on <strong>the</strong> shelf <strong>in</strong> <strong>the</strong> shop to fulfil <strong>the</strong> customer’sneeds at exactly <strong>the</strong> right time.If <strong>the</strong> <strong>production</strong> <strong>and</strong> logistics system is too slow, especially for high fashion products, <strong>the</strong>re is animpend<strong>in</strong>g risk that when <strong>the</strong> customer wants to buy a specific high fashion garment, <strong>the</strong> shelf <strong>in</strong> <strong>the</strong>shop is empty. The fact that <strong>the</strong> design, <strong>production</strong> <strong>and</strong> logistics systems do not respond quicklyenough will result <strong>in</strong> lost sales <strong>and</strong> a low customer service level. If <strong>the</strong> system responds too slowly tofashion changes, <strong>the</strong>re is also a huge risk that a high level of unsold goods will have to be sold atreduced prices. On <strong>the</strong> o<strong>the</strong>r h<strong>and</strong>, a well organised <strong>and</strong> quick respond<strong>in</strong>g <strong>supply</strong> cha<strong>in</strong> will <strong>in</strong>crease<strong>the</strong> customer service level <strong>and</strong> make it possible to sell garments at full price, with a higher degree ofsell through for <strong>the</strong> retail<strong>in</strong>g company.http://www.autexrj.org/No4-2007/0219.pdf 264


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXThe above-described issues about <strong>the</strong> fast fashion <strong>supply</strong> cha<strong>in</strong> for knitted garments are discussed <strong>in</strong>this article. The technological development of <strong>the</strong> <strong>production</strong> of knitted garments has made it possibleto make complete garments ready made, directly <strong>in</strong> <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e, without any processes suchas cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g to follow. With this technique <strong>the</strong> producer can respond quickly to new orders<strong>and</strong> also produce garments of a higher quality [1].The ord<strong>in</strong>ary way to produce a coarse knitted garment is to knit rectangular panels, one for <strong>the</strong> front,one for <strong>the</strong> back <strong>and</strong> two panels for <strong>the</strong> sleeves. These panels are cut <strong>in</strong> <strong>the</strong> right form <strong>and</strong> sewedtoge<strong>the</strong>r with pockets, trims <strong>and</strong> o<strong>the</strong>r accessories <strong>in</strong> <strong>the</strong> post-knit processes. This traditional<strong>production</strong> system, with several post-knit operations <strong>and</strong> processes necessary to obta<strong>in</strong> a complete<strong>and</strong> ready made garment, makes it difficult to match <strong>the</strong> new complete garment concept when itcomes to short lead times <strong>and</strong> quick responses to <strong>the</strong> market.This paper focuses on how this new complete garment knitt<strong>in</strong>g <strong>production</strong> technology could beadjusted <strong>and</strong> implemented <strong>in</strong> a fast fashion logistics system <strong>and</strong> how <strong>the</strong> decoupl<strong>in</strong>g po<strong>in</strong>t could bemoved nearer to <strong>the</strong> customer us<strong>in</strong>g this logistics system.2. MethodologyThe method used <strong>in</strong> this paper is an <strong>in</strong>ductive approach based on a literature survey, visits to fashion<strong>production</strong> companies, <strong>and</strong> <strong>in</strong>formation from suppliers of knitt<strong>in</strong>g <strong>production</strong> equipment. The textiletechnology <strong>and</strong> <strong>production</strong> issues are taken <strong>in</strong>to consideration <strong>and</strong> implemented <strong>in</strong> a fast fashionlogistics system. This paper takes a top-down perspective on <strong>supply</strong> cha<strong>in</strong> design. Its purpose is tounderst<strong>and</strong> how <strong>the</strong> different parts of <strong>the</strong> systems affect each o<strong>the</strong>r. The system is viewed as a whole,with parts or functions that <strong>in</strong>teract with each o<strong>the</strong>r <strong>in</strong> ways that make <strong>the</strong>m more than just <strong>the</strong> sum of<strong>the</strong> parts. The most important element <strong>in</strong> a system is its boundaries <strong>and</strong> <strong>the</strong> context <strong>in</strong> which it ispresented [2].In this paper <strong>the</strong> context is <strong>the</strong> fast fashion <strong>supply</strong> cha<strong>in</strong> design <strong>and</strong> <strong>the</strong> boundaries are <strong>the</strong> <strong>in</strong>teractionbetween <strong>the</strong> two most important constra<strong>in</strong>ts: cost <strong>and</strong> time. Figure 1 shows a model of a generalsystem <strong>the</strong>ory with feedback. This Figure shows that <strong>the</strong> difference between <strong>in</strong>put-dem<strong>and</strong> <strong>and</strong>output-dem<strong>and</strong> fulfilment is lost sales. In o<strong>the</strong>r words, if <strong>the</strong> system can fulfil all dem<strong>and</strong>s of itscustomers it works perfectly. This leads to <strong>the</strong> knowledge that <strong>the</strong> system or transformations processmust be designed to reduce <strong>the</strong> difference between dem<strong>and</strong> <strong>and</strong> dem<strong>and</strong> fulfilment, with regard to itsconstra<strong>in</strong>ts.Constra<strong>in</strong>ts (Cost, time, quality,security, <strong>in</strong>formation…)Input (s)Transformation processOutput (s)Dem<strong>and</strong>Design, <strong>production</strong>, logisticsDem<strong>and</strong> fulfilmentGoal (Sales)Figure 1. General system <strong>the</strong>ory with feedback [2, 3].http://www.autexrj.org/No4-2007/0219.pdf 265


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEX3. Def<strong>in</strong>itions3.1. Production of flat knitted garmentsThe flat knitt<strong>in</strong>g mach<strong>in</strong>e is one type of knitt<strong>in</strong>g mach<strong>in</strong>ery. It has a l<strong>in</strong>ear needle bed that makes itpossible to produce flat knitted rectangular panels for products like sweaters, cardigans, skirts,scarves <strong>and</strong> o<strong>the</strong>r outer garment products. This mach<strong>in</strong>e type traditionally produces coarse structureknit panels, with a fixed edge <strong>and</strong> a welt at <strong>the</strong> bottom of <strong>the</strong> panel <strong>and</strong> <strong>the</strong>n structures or patterns asjacquard, stripes or cables across <strong>the</strong> panel. Thus <strong>the</strong> <strong>production</strong> of a product from yarn to garmentwith flat knitt<strong>in</strong>g technology could be done <strong>in</strong> several ways, depend<strong>in</strong>g on <strong>the</strong> mach<strong>in</strong>ery available <strong>and</strong><strong>the</strong> <strong>production</strong> <strong>methods</strong> that a company has adopted.Knitt<strong>in</strong>g made F<strong>in</strong>ish<strong>in</strong>g Cutt<strong>in</strong>g Sew<strong>in</strong>g F<strong>in</strong>ish<strong>in</strong>gReadymadegarmentFigure 2. Production process of flat knitted garments.The <strong>production</strong> from yarn to ready made garment consists of several processes, as shown <strong>in</strong> Figure 2.It starts with <strong>the</strong> knitt<strong>in</strong>g process, where yarn on yarn-cones is knitted to panels <strong>in</strong> <strong>the</strong> flat knitt<strong>in</strong>gmach<strong>in</strong>e. The panels are steamed <strong>in</strong> <strong>the</strong> f<strong>in</strong>ish<strong>in</strong>g process after knitt<strong>in</strong>g. In <strong>the</strong> cutt<strong>in</strong>g process <strong>the</strong>panels are cut to <strong>the</strong> right shape <strong>and</strong> size accord<strong>in</strong>g to design quality requirements. The panels arejo<strong>in</strong>ed toge<strong>the</strong>r to a garment <strong>in</strong> <strong>the</strong> sew<strong>in</strong>g process. To accomplish <strong>the</strong> right quality, <strong>the</strong> garment isoften passed through a f<strong>in</strong>ish<strong>in</strong>g process such as wash<strong>in</strong>g or steam<strong>in</strong>g. The traditional <strong>production</strong> ofcoarse flat knitted garment thus consists of several-time consum<strong>in</strong>g processes after knitt<strong>in</strong>g.Knitt<strong>in</strong>g Cut & sew F<strong>in</strong>ish<strong>in</strong>gReady made garmentFigure 3. Production process of complete garment concept.The <strong>production</strong> of complete garment due to <strong>the</strong> new complete garment technology is done as shown<strong>in</strong> Figure 3. Yarn on yarn-cones is knitted to complete garments directly <strong>in</strong> <strong>the</strong> flat knitt<strong>in</strong>g mach<strong>in</strong>e.After knitt<strong>in</strong>g, some cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g processes can be obta<strong>in</strong>ed, but not to <strong>the</strong> extent as <strong>in</strong> ord<strong>in</strong>aryflat knit <strong>production</strong>, shown <strong>in</strong> Figure 2, as <strong>the</strong> garment is here complete <strong>and</strong> almost ready made. Here<strong>the</strong> f<strong>in</strong>ish<strong>in</strong>g of <strong>the</strong> garment is done <strong>in</strong> only one process, after knitt<strong>in</strong>g, cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g. The factthat <strong>the</strong> garment is knitted complete <strong>and</strong> almost ready made, directly <strong>in</strong> <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e, with lessnumber of manufactur<strong>in</strong>g processes, makes it possible to reduce <strong>the</strong> start to f<strong>in</strong>ish time of <strong>production</strong>.The cha<strong>in</strong> of processes becomes shorter <strong>and</strong> especially non-value added time, such as wait<strong>in</strong>g timefor <strong>the</strong> garments between processes, is reduced.3.2. Production <strong>methods</strong> <strong>in</strong> flat knitt<strong>in</strong>g garment <strong>production</strong>The manufactur<strong>in</strong>g process of flat knitted garments can be divided <strong>in</strong> four different <strong>production</strong><strong>methods</strong>:• Cut & sew• Fully fashion• Integral knitt<strong>in</strong>g• Complete garment3.2.1 Cut & SewCut & sew is <strong>the</strong> conventional <strong>and</strong> most common method for <strong>production</strong> of flat knitted garments.Panels for front, back <strong>and</strong> sleeves are knitted <strong>in</strong> a rectangular form <strong>and</strong> <strong>the</strong>n cut <strong>in</strong> <strong>the</strong> right form <strong>in</strong> <strong>the</strong>cutt<strong>in</strong>g process. After <strong>the</strong> cutt<strong>in</strong>g process, <strong>the</strong> panels are sewn toge<strong>the</strong>r with separately knittedtrimm<strong>in</strong>gs <strong>and</strong> pockets to complete <strong>the</strong> garment. Both cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g are post-knit processes,separated from <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e. With cut & sew, up to 30% of <strong>the</strong> orig<strong>in</strong>al fabric may go to wasteas cut-loss. The advantage with this type of <strong>production</strong> is that it could be done on all flat knitt<strong>in</strong>gmach<strong>in</strong>es, <strong>in</strong>clud<strong>in</strong>g old models without computer process<strong>in</strong>g systems. The disadvantages is <strong>the</strong>http://www.autexrj.org/No4-2007/0219.pdf 266


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXlabour <strong>in</strong>tensive post-knitt<strong>in</strong>g processes such as cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g, which makes this <strong>production</strong>suitable <strong>in</strong> countries with low labour costs, such as eastern Europe <strong>and</strong> Ch<strong>in</strong>a. Ano<strong>the</strong>r disadvantageis material waste <strong>in</strong> <strong>the</strong> cutt<strong>in</strong>g process. A high degree of <strong>the</strong> knitted material is cut-loss, even when<strong>the</strong> right form of <strong>the</strong> panels is formed <strong>in</strong> <strong>the</strong> cutt<strong>in</strong>g mach<strong>in</strong>e.3.2.2 Fully fashionFigure 4. Cut & sew <strong>production</strong> method.Figure 5. Fully fashion <strong>production</strong> method.Fully fashion or shap<strong>in</strong>g is a method of knitt<strong>in</strong>g <strong>production</strong> where <strong>the</strong> front, back <strong>and</strong> sleeve pieces areknitted <strong>in</strong> <strong>the</strong> right shape directly <strong>in</strong> <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e. The cutt<strong>in</strong>g process is at a m<strong>in</strong>imum or totallyelim<strong>in</strong>ated, but some post-knit cutt<strong>in</strong>g can still be necessary. Trimm<strong>in</strong>gs <strong>and</strong> pockets are knittedseparately <strong>and</strong> sewn toge<strong>the</strong>r with <strong>the</strong> rest of <strong>the</strong> knitted pieces to complete <strong>the</strong> garment. The benefitof this <strong>production</strong> method compared with <strong>the</strong> cut & sew method is that cutt<strong>in</strong>g is elim<strong>in</strong>ated or at am<strong>in</strong>imum, <strong>and</strong> that <strong>the</strong> material consumption is much lower due to lower cut-loss. Both material <strong>and</strong>labour costs are saved <strong>in</strong> comparison to <strong>the</strong> cut & sew <strong>production</strong> method.3.2.3 Integral knitt<strong>in</strong>gFigure 6. Integral knitt<strong>in</strong>g <strong>production</strong> method.http://www.autexrj.org/No4-2007/0219.pdf 267


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXIntegral knitt<strong>in</strong>g means that trimm<strong>in</strong>gs, pockets, buttonholes <strong>and</strong> o<strong>the</strong>r accessories are directly knitted<strong>in</strong> <strong>the</strong> fully fashion produced panels. With this technique <strong>the</strong>re are fewer post-knit processes such ascutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g. Compared with cut & sew <strong>and</strong> fully fashion <strong>production</strong> <strong>methods</strong>, sav<strong>in</strong>gs can behad <strong>in</strong> both <strong>the</strong> cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g post-knit processes. In addition <strong>the</strong> quality <strong>and</strong> outlook of <strong>the</strong> readygarment can be improved by this method of <strong>in</strong>tegrat<strong>in</strong>g accessories <strong>in</strong> <strong>the</strong> panels directly <strong>in</strong> <strong>the</strong> knitt<strong>in</strong>gprocess. Also, this <strong>production</strong> method reduces <strong>the</strong> cut-loss to a m<strong>in</strong>imum.3.2.4 Complete garmentFigure 7. Complete garment <strong>production</strong> method.In complete garment <strong>production</strong> <strong>the</strong> entire garment is ready made directly <strong>in</strong> <strong>the</strong> flat knitt<strong>in</strong>g mach<strong>in</strong>ewith no post-knit processes such as cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g. The different parts of <strong>the</strong> garment are shaped<strong>and</strong> knitted toge<strong>the</strong>r with trimm<strong>in</strong>gs, pockets <strong>and</strong> o<strong>the</strong>r accessories. The advantages of this techniqueare many, <strong>in</strong>clud<strong>in</strong>g: no waste of material as cut-loss <strong>in</strong> <strong>the</strong> cutt<strong>in</strong>g process; <strong>and</strong> no sew<strong>in</strong>g or cutt<strong>in</strong>gas expensive post-knit processes. All yarn <strong>in</strong> <strong>the</strong> entire garment comes from <strong>the</strong> same yarn cones,which enables higher quality. Due to <strong>the</strong> seamless technology <strong>the</strong> garment could atta<strong>in</strong> a perfect fit<strong>and</strong> be comfortable to wear. This technology makes it possible to shorten <strong>the</strong> lead time <strong>and</strong> produce“on-dem<strong>and</strong> knitt<strong>in</strong>g”, which could shorten <strong>production</strong> lead time considerably.3.3. The <strong>supply</strong> cha<strong>in</strong> of <strong>the</strong> fashion <strong>bus<strong>in</strong>ess</strong>Figure 8 is a general model of <strong>the</strong> fashion <strong>bus<strong>in</strong>ess</strong>. The boxes conta<strong>in</strong><strong>in</strong>g merch<strong>and</strong>ise, market<strong>in</strong>g<strong>and</strong> design departments represent <strong>the</strong> basic functions <strong>in</strong> a fashion company. Production,transportation <strong>and</strong> store are most likely to be ano<strong>the</strong>r company. The key factor to a successfulenterprise, regardless of <strong>the</strong> nature of <strong>the</strong> <strong>bus<strong>in</strong>ess</strong>, is to produce products that end users want to buy,when <strong>the</strong>y want to buy <strong>the</strong>m. Therefore, precise <strong>in</strong>formation about dem<strong>and</strong> is important. The<strong>in</strong>formation is quantitative <strong>and</strong> represents actual sales. This dem<strong>and</strong> <strong>in</strong>formation, along with fashionknowledge, is what <strong>the</strong> merch<strong>and</strong>ise <strong>and</strong> design departments use, toge<strong>the</strong>r with pre-<strong>production</strong> tests,to decide what to produce <strong>and</strong> how much. Then <strong>the</strong> <strong>production</strong> starts <strong>and</strong> <strong>the</strong> market<strong>in</strong>g departmenttries to affect <strong>the</strong> end users’ dem<strong>and</strong> <strong>in</strong> such a way as to <strong>in</strong>crease <strong>the</strong> likelihood that <strong>the</strong>y will want tobuy <strong>the</strong> new product.In <strong>the</strong> cloth<strong>in</strong>g <strong>bus<strong>in</strong>ess</strong> it is common to po<strong>in</strong>t out two different types of markets, basic <strong>and</strong> fashiondesign cloth<strong>in</strong>g. In <strong>the</strong> basic market <strong>the</strong> variation <strong>in</strong> dem<strong>and</strong>, both volume <strong>and</strong> design, is fairlypredictable. The risk of hav<strong>in</strong>g undesired products is low. The ma<strong>in</strong> problems are volume <strong>and</strong> costfactors. In <strong>the</strong> fashion market, or fast fashion to be more precise, <strong>the</strong> risk of hav<strong>in</strong>g undesired productsis much higher. What is right <strong>in</strong> fashion one day is wrong <strong>the</strong> next day. This means that <strong>the</strong> time formarket<strong>in</strong>g a desired product is <strong>the</strong> s<strong>in</strong>gle most important factor to success. The <strong>supply</strong> cha<strong>in</strong> must bedesigned to be flexible <strong>and</strong> have as low a time to market as possible. The <strong>supply</strong> cha<strong>in</strong> needs to betime-based <strong>and</strong> customer orientated. It needs to be responsive to rapid changes <strong>in</strong> dem<strong>and</strong> [4]. A timecompetitor is a company that creates a competition advantage for itself based on its possibility todesign <strong>and</strong> deliver products faster than its competitors [5].Christopher lists three ma<strong>in</strong> dimensions of time-based consumption [6]:Time to market, i.e. how long it takes <strong>the</strong> <strong>bus<strong>in</strong>ess</strong> to recognize a market opportunity, to translate this<strong>in</strong>to a product or service, <strong>and</strong> to br<strong>in</strong>g it to <strong>the</strong> market.http://www.autexrj.org/No4-2007/0219.pdf 268


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXTime to serve, i.e. how long it takes to capture a customer’s order <strong>and</strong> to deliver or <strong>in</strong>stall <strong>the</strong> productto <strong>the</strong> customer’s satisfaction.Time to react, i.e. how long it takes to adjust <strong>the</strong> output of <strong>the</strong> <strong>bus<strong>in</strong>ess</strong> <strong>in</strong> response to volatiledem<strong>and</strong>, how quickly <strong>the</strong> tap can be turned on <strong>and</strong> off.Dem<strong>and</strong> <strong>in</strong>formationProduct flowDem<strong>and</strong> managementProduct <strong>in</strong>formationPre-ProductionDesign dep.Merch<strong>and</strong>ise dep.Market<strong>in</strong>gProduction Transportation Store End userFigure 8. General model of <strong>the</strong> fashion <strong>bus<strong>in</strong>ess</strong> (Authors, 2005).Time to market <strong>in</strong> Figure 8 is presented as formula 1:Time to market (TtM) = Design Time + Production Time + Transportation time (1)All <strong>the</strong> three parts of TtM could be divided <strong>in</strong> ei<strong>the</strong>r value added time or non-value added time. Valueadded time is time when some value is added to <strong>the</strong> product, for example knitt<strong>in</strong>g or sew<strong>in</strong>g of agarment. Non-value added time is, for example, wait<strong>in</strong>g time between value added processes. In both<strong>the</strong> basic <strong>and</strong> fashion <strong>bus<strong>in</strong>ess</strong>es it is common to divide <strong>the</strong> purchase of products <strong>in</strong>to up-front buy<strong>in</strong>g<strong>and</strong> replenishment buy<strong>in</strong>g. Up-front buy<strong>in</strong>g consists of orders <strong>in</strong> advance, predicted based onforecasts of market dem<strong>and</strong>s. Order of replenishment is made on Po<strong>in</strong>t Of Sales (POS) <strong>in</strong>formation<strong>and</strong> is more accurate with regard to customer dem<strong>and</strong> at an actual moment. By replenishment, <strong>the</strong><strong>supply</strong> cha<strong>in</strong> time is reduced s<strong>in</strong>ce <strong>the</strong> time of design is elim<strong>in</strong>ated. Design <strong>and</strong> product specificationsexist <strong>and</strong> <strong>the</strong> product has already been produced once. This means that <strong>the</strong> Design Time must havethree elements, namely value add<strong>in</strong>g, non-value add<strong>in</strong>g <strong>and</strong> order<strong>in</strong>g time. All toge<strong>the</strong>r TtM could be asum of seven different elements. Accord<strong>in</strong>g to <strong>the</strong> perspective of a particular system it is important tounderst<strong>and</strong> how <strong>the</strong> elements or parts <strong>in</strong>teract with each o<strong>the</strong>r <strong>in</strong> order to make <strong>the</strong> system more thanjust <strong>the</strong> sum of <strong>the</strong> parts [2]. When one or more of <strong>the</strong> seven elements <strong>in</strong> TtM is changed, <strong>the</strong>responsiveness of <strong>the</strong> entire <strong>supply</strong> cha<strong>in</strong> is changed.3.4. Underst<strong>and</strong><strong>in</strong>g <strong>the</strong> dem<strong>and</strong>The dem<strong>and</strong> is <strong>the</strong> <strong>in</strong>put <strong>in</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong>, <strong>and</strong> dem<strong>and</strong> fulfilment is how <strong>the</strong> <strong>supply</strong> cha<strong>in</strong> reacts ti to<strong>the</strong> <strong>in</strong>puts (see Figure 1). To design <strong>the</strong> <strong>supply</strong> cha<strong>in</strong> we need to underst<strong>and</strong> dem<strong>and</strong>, <strong>and</strong> moreimportantly, <strong>the</strong> actual change <strong>in</strong> dem<strong>and</strong>. First it is useful to separate actual sales from possiblesales. Actual sales are true numbers of what, where <strong>and</strong> when a given product was sold. Possiblesales are what customers want to buy, but which for some reasons do not exist. Underst<strong>and</strong><strong>in</strong>g <strong>the</strong>customer’s buy<strong>in</strong>g behaviour is crucial, because this tells what <strong>the</strong> customers want. It varies stronglywith culture, social, personal <strong>and</strong> psychological characteristics. Market<strong>in</strong>g cannot control <strong>the</strong>se factors,which <strong>in</strong>fluence <strong>the</strong> possibility of sell<strong>in</strong>g a product, but <strong>the</strong>y need to take <strong>the</strong>m <strong>in</strong> to account [7]. To dothis, <strong>the</strong> company needs to listen to its customers <strong>and</strong> try to be proactive <strong>in</strong> <strong>the</strong>ir product developmentprocess. The key factor <strong>in</strong> underst<strong>and</strong><strong>in</strong>g <strong>the</strong> change <strong>in</strong> dem<strong>and</strong> is <strong>in</strong>formation. This <strong>in</strong>formation needsto conta<strong>in</strong> both quantitative <strong>and</strong> qualitative elements that can provide <strong>the</strong> design department withhttp://www.autexrj.org/No4-2007/0219.pdf 269


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXessential <strong>in</strong>put regard<strong>in</strong>g how a product should be designed. The use of <strong>in</strong>formation technology hasmade it possible for a company to be more responsive to <strong>the</strong>ir customers' needs, ra<strong>the</strong>r than bl<strong>in</strong>dlyadher<strong>in</strong>g to an established strategy [8].4. Complete garment – A technology for fast fashionThe technology of today makes it possible to manufacture products from a wide variation of materials,models, structures <strong>and</strong> patterns <strong>in</strong> <strong>the</strong> complete garment technology. The cost sav<strong>in</strong>g benefits, with nomaterial cut-loss <strong>and</strong> a m<strong>in</strong>imum of post-knitt<strong>in</strong>g processes, make this technology one of <strong>the</strong> future<strong>production</strong> <strong>methods</strong> <strong>in</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong> for knitted garments. This technique, whereby flat knitt<strong>in</strong>gmach<strong>in</strong>es produce complete garments, has been on <strong>the</strong> market for almost 10 years, but <strong>the</strong> twolead<strong>in</strong>g producers of this technology, SHIMA SEIKI from Japan <strong>and</strong> <strong>the</strong> German company STOLL,have encountered some difficulties <strong>in</strong> conv<strong>in</strong>c<strong>in</strong>g companies to adapt this new technology. This isprobably due to <strong>the</strong> fact that <strong>the</strong> real benefits of this new <strong>production</strong> method are not only <strong>the</strong> sav<strong>in</strong>g ofmaterial as cut-loss or cost sav<strong>in</strong>g post knitt<strong>in</strong>g labour <strong>in</strong>tensive processes as cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g. Inorder to ga<strong>in</strong> all <strong>the</strong> benefits of this complete garment technology, it is necessary to adapt <strong>the</strong><strong>production</strong> system <strong>and</strong> <strong>the</strong> whole <strong>supply</strong> cha<strong>in</strong> to a new concept, from producer to customer. It is notenough to just buy a new knitt<strong>in</strong>g mach<strong>in</strong>e <strong>and</strong> place it <strong>in</strong> <strong>the</strong> same <strong>production</strong> <strong>and</strong> <strong>bus<strong>in</strong>ess</strong> systemas before. The complete garment technology opens up new <strong>production</strong> <strong>and</strong> logistics possibilities <strong>in</strong>logistics aspects such as:• Order fulfilment leadtimes• Manufactur<strong>in</strong>g leadtimes• Postponement• Mass customisation• Customer service level4.1. Order fulfilment lead timesOne of <strong>the</strong> key issues <strong>in</strong> <strong>the</strong> fashion <strong>bus<strong>in</strong>ess</strong> is to respond quickly to changes <strong>in</strong> fashion trends <strong>and</strong>respond to customer <strong>and</strong> market dem<strong>and</strong>s rapidly. In order to do this it is desirable to shorten <strong>the</strong> timefrom when <strong>the</strong> order is put until <strong>the</strong> time <strong>the</strong> garment is on <strong>the</strong> shelf <strong>in</strong> <strong>the</strong> shop. In <strong>the</strong> fashion<strong>bus<strong>in</strong>ess</strong> it is common to employ up-front buy<strong>in</strong>g, <strong>and</strong> <strong>in</strong> this strategy <strong>the</strong> orders have to be put to <strong>the</strong>supplier months ahead. This is <strong>the</strong> case especially for basic garments. The risk with this strategy isthat <strong>the</strong> customer dem<strong>and</strong>s, due to fashion trends, change dur<strong>in</strong>g <strong>the</strong> time when <strong>the</strong> product is be<strong>in</strong>gmanufactured <strong>in</strong> <strong>the</strong> <strong>production</strong> pipel<strong>in</strong>e. By outsourc<strong>in</strong>g fashion processes, for example to Ch<strong>in</strong>a <strong>and</strong>o<strong>the</strong>r countries off-shore, <strong>in</strong> many cases <strong>the</strong> lead times become even longer. On <strong>the</strong> o<strong>the</strong>r h<strong>and</strong>,manufactur<strong>in</strong>g costs <strong>in</strong> <strong>the</strong>se labour-<strong>in</strong>tensive countries are much lower than <strong>in</strong> European countries.Long delivery times <strong>and</strong> delays due to long distances, communication <strong>and</strong> o<strong>the</strong>r problems will make<strong>the</strong> <strong>supply</strong> cha<strong>in</strong> pipel<strong>in</strong>e longer. Time to market (TtM) consists of, as expla<strong>in</strong>ed earlier, Design Time,Production Time <strong>and</strong> Transportation time. ‘Fast-to-<strong>the</strong>-market’ products must pass through <strong>the</strong> <strong>supply</strong>cha<strong>in</strong> as quickly as possible to meet current dem<strong>and</strong> from <strong>the</strong> customers. The current trend <strong>in</strong> <strong>the</strong>fashion <strong>bus<strong>in</strong>ess</strong> is to speed up <strong>the</strong> cycle time <strong>in</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong>. Products should pass through <strong>the</strong><strong>supply</strong> cha<strong>in</strong>, from design to ready made garment, as quickly as possible <strong>in</strong> order to respond tocustomer dem<strong>and</strong>. Shorter lead times mean that purchase decisions can be made closer to <strong>the</strong>season <strong>and</strong> produced products are more <strong>in</strong> accordance with customer dem<strong>and</strong> at <strong>the</strong> actual moment.Forecast<strong>in</strong>g errors will be smaller <strong>and</strong> stock turns higher.Accord<strong>in</strong>g to Christopher, reduc<strong>in</strong>g <strong>the</strong> length of <strong>the</strong> pipel<strong>in</strong>e will br<strong>in</strong>g many benefits, for example [6]:• Release of capital• A cont<strong>in</strong>u<strong>in</strong>g benefit through <strong>the</strong> reduced cost of f<strong>in</strong>anc<strong>in</strong>g a shorter pipel<strong>in</strong>e• Shorter response time improves customer service levels• Less vulnerability to marketplace volatility• More flexibility <strong>in</strong> meet<strong>in</strong>g precise customer requirements like options, pack sizes, colours, etc.A shorter or faster <strong>supply</strong> cha<strong>in</strong> is one of <strong>the</strong> most important components if a retail<strong>in</strong>g company isgo<strong>in</strong>g to be successful <strong>in</strong> <strong>the</strong> fashion <strong>bus<strong>in</strong>ess</strong>. Accurate forecast<strong>in</strong>g, comb<strong>in</strong>ed with low <strong>in</strong>itial orders<strong>and</strong> replenishment <strong>in</strong> season, will m<strong>in</strong>imise <strong>the</strong> risk of stock-outs <strong>and</strong> unsold products. This strategycould have a direct f<strong>in</strong>ancial impact on a company.http://www.autexrj.org/No4-2007/0219.pdf 270


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXThe reduction of manufactur<strong>in</strong>g processes does not, by itself, improve <strong>the</strong> time from yarn to readymade garment delivered <strong>in</strong> <strong>the</strong> shop as much as would be desired.Mattilla states [9]: “The ma<strong>in</strong> reasons for long lead times are <strong>the</strong> several non-value-add<strong>in</strong>g activitiesthroughout <strong>the</strong> <strong>supply</strong> pipel<strong>in</strong>e. These are <strong>the</strong> k<strong>in</strong>d of activities that could be reduced or elim<strong>in</strong>atedtotally without reduc<strong>in</strong>g <strong>the</strong> total value added to <strong>the</strong> product.”The complete garment concept is implemented <strong>in</strong> a ‘fast-to-<strong>the</strong>-market’ <strong>supply</strong> cha<strong>in</strong>, where all parts of<strong>the</strong> pipel<strong>in</strong>e are focused on short lead times <strong>and</strong> quick response <strong>in</strong> order to fulfil customer dem<strong>and</strong> asquickly as possible. This could be done by respond<strong>in</strong>g directly when <strong>the</strong> garment is bought <strong>in</strong> <strong>the</strong>shop. The buy generates a new order for a replenishment that is communicated throughout <strong>the</strong> whole<strong>supply</strong> cha<strong>in</strong> <strong>in</strong> order to plan for all <strong>the</strong> <strong>production</strong> <strong>and</strong> transportation activities that need to be carriedout. A key issue is <strong>the</strong> raw material, <strong>in</strong> this case <strong>the</strong> yarn, for <strong>the</strong> garment to be knitted <strong>in</strong>. Longdelivery times for yarn must be avoided when it comes to <strong>the</strong> <strong>production</strong> of ‘fast-to-<strong>the</strong>-market’garments. Logistics systems such as postponement - where you knit all <strong>the</strong> garments <strong>in</strong> “greige” or“raw-white” <strong>and</strong> <strong>the</strong>n postpone dye<strong>in</strong>g of <strong>the</strong> garment as late as possible <strong>in</strong> <strong>the</strong> pipel<strong>in</strong>e - is onemethod available. Ano<strong>the</strong>r way is to work with a “st<strong>and</strong>ard set” of yarns, where <strong>the</strong> knitt<strong>in</strong>g company or<strong>the</strong> yarn supplier companies keep yarns <strong>in</strong> stock <strong>in</strong> order to be able to respond quickly.4.2. Manufactur<strong>in</strong>g lead times - reduction of processesThe complete garment technology makes it possible to reduce <strong>the</strong> number of manufactur<strong>in</strong>gprocesses <strong>in</strong> <strong>the</strong> <strong>production</strong> of a knitted garment. Cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g, as post-knitt<strong>in</strong>g processes <strong>in</strong> atraditional <strong>production</strong> l<strong>in</strong>e of knitted garments, are not needed <strong>in</strong> this complete garment technology.The garment comes ready made straight out of <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e. However, some post-knitt<strong>in</strong>gprocesses could be required. These processes consist of some complementary operations such ascutt<strong>in</strong>g loose thread ends, sew<strong>in</strong>g of labels <strong>and</strong> steam<strong>in</strong>g of <strong>the</strong> garment to atta<strong>in</strong> <strong>the</strong> right quality. Thisenables <strong>the</strong> time “from yarn to ready-made garment” to be shortened considerably, not only by <strong>the</strong> factthat <strong>the</strong> post-knitt<strong>in</strong>g processes are elim<strong>in</strong>ated to a large extent, but also because several non-valueaddedactivities are also elim<strong>in</strong>ated. These non-value-added activities are wait<strong>in</strong>g time or time fortransportation between <strong>the</strong> cutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g processes, which are elim<strong>in</strong>ated by <strong>the</strong> fact that <strong>the</strong>seprocesses are elim<strong>in</strong>ated.4.3. PostponementPostponement, or delayed configuration, is a method where common platforms, components ormodules are used <strong>and</strong> <strong>the</strong> f<strong>in</strong>al customisation is done as close to <strong>the</strong> po<strong>in</strong>t-of–sales as possible.Closer to <strong>the</strong> POS, customer dem<strong>and</strong>s are more known [10]. In a <strong>supply</strong> cha<strong>in</strong> for knitted fashionproducts postponement could be a solution to satisfy both <strong>the</strong> customers dem<strong>and</strong> for fast fashionchanges <strong>and</strong> <strong>the</strong> suppliers dem<strong>and</strong> for a cost effective <strong>supply</strong> cha<strong>in</strong>. The solution is to produce ast<strong>and</strong>ard product <strong>and</strong> <strong>the</strong>n add an identity to <strong>the</strong> garment as late as possible <strong>in</strong> terms of delivery to <strong>the</strong>customer <strong>and</strong> <strong>the</strong> po<strong>in</strong>t-of-sales. A key issue is <strong>the</strong> raw material; <strong>in</strong> this case <strong>the</strong> yarn for <strong>the</strong> garmentto be knitted <strong>in</strong>. Long delivery times for <strong>the</strong> yarn must be avoided when it comes to <strong>the</strong> <strong>production</strong> of‘fast-to-<strong>the</strong>-market’ garments. With postponement, you knit all <strong>the</strong> garments <strong>in</strong> greige or “raw-white”<strong>and</strong> <strong>the</strong>n postpone dye<strong>in</strong>g of <strong>the</strong> garment as late as possible, when you more exactly know whichcolours are most <strong>in</strong> dem<strong>and</strong> <strong>in</strong> a given market. This technique has been used by <strong>the</strong> Italian fashioncompany Benetton for many years, <strong>and</strong> has <strong>the</strong> advantage that you only produce garments <strong>in</strong> coloursthat <strong>the</strong> customers want to buy. Ano<strong>the</strong>r way is to work with a “st<strong>and</strong>ard set” of yarns, where <strong>the</strong>knitt<strong>in</strong>g company, or <strong>the</strong> yarn supplier company, keep yarns <strong>in</strong> stock <strong>in</strong> order to be able to respondquickly. Postponement will add ano<strong>the</strong>r l<strong>in</strong>k <strong>in</strong> <strong>the</strong> cha<strong>in</strong> to a successful <strong>bus<strong>in</strong>ess</strong> system for highfashion knitted products. Ow<strong>in</strong>g to <strong>the</strong> possibilities of <strong>the</strong> complete garment knitt<strong>in</strong>g technology <strong>the</strong><strong>production</strong> of <strong>the</strong> products starts as close as possible to <strong>the</strong> po<strong>in</strong>t-of sales,. If <strong>the</strong> products are knitted“raw-white” <strong>and</strong> dyed <strong>in</strong> <strong>the</strong> last m<strong>in</strong>ute before delivery, <strong>the</strong> complete garment technology is comb<strong>in</strong>edwith a postponement logistics effort to fulfil <strong>the</strong> retail dem<strong>and</strong> for fast fashion.4.4. Mass CustomisationToday it is well known that analogue technologies are largely replaced by digital technologies,<strong>in</strong>clud<strong>in</strong>g <strong>in</strong> <strong>the</strong> <strong>bus<strong>in</strong>ess</strong> <strong>and</strong> <strong>production</strong> of textiles. The flat knitt<strong>in</strong>g <strong>in</strong>dustry is no exception <strong>in</strong> thisregard. Both product development <strong>and</strong> <strong>production</strong> <strong>in</strong> <strong>the</strong> complete garment technology are made us<strong>in</strong>ghttp://www.autexrj.org/No4-2007/0219.pdf 271


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXdigital computer systems. Earlier <strong>production</strong> systems were built on large series of products with longruns. Today’s customers want immediate <strong>and</strong> personal service <strong>and</strong>, as Fralix states:“Just as <strong>the</strong> craft era was replaced by <strong>the</strong> era of mass <strong>production</strong>, mass <strong>production</strong> is be<strong>in</strong>g replacedby <strong>the</strong> era of Mass Customization” [11].Complete garment technology makes <strong>the</strong> garments seamless <strong>and</strong> enables mass customisation to beimplemented <strong>in</strong> <strong>the</strong> <strong>bus<strong>in</strong>ess</strong> of knitted high fashion products. Knitt<strong>in</strong>g technology, comb<strong>in</strong>ed withmodern computer technology <strong>and</strong> a new <strong>bus<strong>in</strong>ess</strong> system offers a concept whereby it is possible tocustomise each garment <strong>and</strong> make “batch-one” manufactur<strong>in</strong>g. The Japanese knitt<strong>in</strong>g mach<strong>in</strong>ecompany SHIMA SEIKI has a shop <strong>in</strong> Japan called “Factory Boutique” that works with a new conceptwhere <strong>the</strong> customers can look at samples <strong>and</strong> with <strong>the</strong> guidance of store staff design <strong>the</strong>ir ownproducts. The design CAD system enables <strong>the</strong> customer to get dressed <strong>in</strong> <strong>the</strong> garment virtually <strong>and</strong>also have a pr<strong>in</strong>tout before <strong>the</strong> garment is knitted. After this <strong>the</strong> garment can be knitted on <strong>the</strong> knitt<strong>in</strong>gmach<strong>in</strong>es <strong>in</strong> <strong>the</strong> same build<strong>in</strong>g. Us<strong>in</strong>g <strong>the</strong>se techniques <strong>the</strong> digital <strong>in</strong>formation kept as long as possible<strong>in</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong> <strong>and</strong>, <strong>in</strong> this case, <strong>the</strong> start of <strong>production</strong> after <strong>the</strong> po<strong>in</strong>t-of sales means that knitt<strong>in</strong>gmach<strong>in</strong>es could for example be placed <strong>in</strong> a retailers shop [12].Ano<strong>the</strong>r opportunity to customise a knitted garment is with <strong>the</strong> use of pr<strong>in</strong>t<strong>in</strong>g technology. Sweaterscould be complete garment knitted <strong>and</strong> pr<strong>in</strong>ted after knitt<strong>in</strong>g. An example of this is <strong>the</strong> Japanesedesign company Grace International, which designs knit garment collections where <strong>the</strong> garments areknitted <strong>and</strong> <strong>the</strong>n pr<strong>in</strong>ted after knitt<strong>in</strong>g [13]. This technology opens up <strong>the</strong> possibility to comb<strong>in</strong>epostponement with customisation by knitt<strong>in</strong>g complete garments <strong>in</strong> st<strong>and</strong>ard models <strong>and</strong> <strong>the</strong>n as lateto <strong>the</strong> po<strong>in</strong>t-of-sales as possible provide each garment with a pr<strong>in</strong>t. By comb<strong>in</strong><strong>in</strong>g <strong>the</strong>se twotechniques it is possible to, upon request of <strong>the</strong> customer, put an <strong>in</strong>dividual identity to <strong>the</strong> garment aslate as after <strong>the</strong> po<strong>in</strong>t-of-sale. The knitt<strong>in</strong>g <strong>and</strong> pr<strong>in</strong>t<strong>in</strong>g could also be done <strong>in</strong> <strong>the</strong> retailer’s shop.4.5. Customer service levelIn <strong>the</strong> fashion <strong>bus<strong>in</strong>ess</strong> it is of utmost importance to keep <strong>the</strong> customer satisfied <strong>and</strong> ensure that <strong>the</strong>customer f<strong>in</strong>ds what he or she are look<strong>in</strong>g for <strong>and</strong> that <strong>the</strong> dem<strong>and</strong> for a product is fulfilled. In <strong>the</strong>orythis could be achieved by keep<strong>in</strong>g all products <strong>in</strong> all sizes <strong>and</strong> colour comb<strong>in</strong>ations <strong>in</strong> stock at alltimes. However this is not realistic due to <strong>the</strong> fact that stock keep<strong>in</strong>g costs money <strong>and</strong> <strong>the</strong> retailerwants to m<strong>in</strong>imise <strong>the</strong> stock level to accomplish a higher stock-turnover <strong>in</strong> order to save money. Hereis where <strong>the</strong> <strong>bus<strong>in</strong>ess</strong> <strong>and</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong> system of a company is of highest importance. Thelogistics system’s ability to respond quickly when a garment is registered as a sale <strong>in</strong> <strong>the</strong> shopdeterm<strong>in</strong>es <strong>the</strong> quantity of SKU <strong>in</strong> stock. If time of replenishment is long, <strong>the</strong> chances are higher thatano<strong>the</strong>r customer wants to buy <strong>the</strong> same product or SKU <strong>and</strong> it is miss<strong>in</strong>g on <strong>the</strong> shelf. In order toavoid “lost sales” <strong>the</strong> retailer must keep more garments of <strong>the</strong> same SKU <strong>in</strong> stock to be sure that <strong>the</strong>customer f<strong>in</strong>ds <strong>the</strong> product he or she is search<strong>in</strong>g for. If <strong>the</strong> replenishment systems respond veryquickly, <strong>the</strong> number of SKUs <strong>in</strong> <strong>the</strong> shop can be lower with a higher value of <strong>in</strong>ventory turnover.Customer service level <strong>and</strong> Lost sales are listed by K<strong>in</strong>g <strong>and</strong> Hunter [14] as follows:Customer service level =Number of customers who f<strong>in</strong>d <strong>the</strong>ir first choice SKUTotal number of customer visits(2)which <strong>in</strong>dicates <strong>the</strong> percentage of times a customer f<strong>in</strong>ds his or her first-choice stock keep<strong>in</strong>g unitwhen shopp<strong>in</strong>g.Lost sales =Number of customer who f<strong>in</strong>d no SKU prefereceTotal number of customer visits(3)which <strong>in</strong>dicates <strong>the</strong> percentage of times a customer f<strong>in</strong>ds none of his SKU preferences, i.e. <strong>the</strong>ir firstchoice, second choice, etc.Complete garment <strong>production</strong> implemented <strong>in</strong> a <strong>bus<strong>in</strong>ess</strong> toge<strong>the</strong>r with a logistics quick responsesystem responds immediately when a buy is registered. This k<strong>in</strong>d of system could fulfil <strong>the</strong> retailershttp://www.autexrj.org/No4-2007/0219.pdf 272


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEXdem<strong>and</strong> to achieve a high customer service level <strong>and</strong> also keep stock at a desirable level. It oftentakes a long time from when <strong>the</strong> order is given to when <strong>the</strong> actual products are on <strong>the</strong> shelf <strong>in</strong> <strong>the</strong>store. There are many steps from <strong>the</strong> po<strong>in</strong>t at which a decision is taken to place an order to delivery. Ifit is a <strong>production</strong> that takes place <strong>in</strong> o<strong>the</strong>r countries, often quota approvals, letters of credits, <strong>and</strong> o<strong>the</strong>rdocumentation is necessary. Often <strong>the</strong> total time <strong>in</strong> <strong>the</strong> manufactur<strong>in</strong>g process is long because of <strong>the</strong>traditional, batch-based <strong>production</strong> <strong>methods</strong> [15].The batch-based <strong>production</strong> <strong>methods</strong> are based on <strong>the</strong> fact that manufactur<strong>in</strong>g processes have to bebased on relatively large batches <strong>in</strong> order to be economic. However, complete garment technologywith computer aided design (CAD) <strong>and</strong> computer aided manufactur<strong>in</strong>g (CAM) makes it possible tomake much smaller batches, even sometimes down to batches of one separate item. Digital sales<strong>in</strong>formation is collected <strong>and</strong> shared with yarn suppliers <strong>and</strong> <strong>the</strong> knitt<strong>in</strong>g <strong>production</strong> company <strong>in</strong> order toshorten <strong>the</strong> lead time <strong>and</strong> to m<strong>in</strong>imise time for replenishment to <strong>the</strong> shop. With shared digital<strong>in</strong>formation throughout <strong>the</strong> whole <strong>supply</strong> cha<strong>in</strong> it is possible to respond very quickly to customers'dem<strong>and</strong>s.5. ConclusionsThe ma<strong>in</strong> purpose of this paper has been to expla<strong>in</strong> <strong>and</strong> give examples of how <strong>the</strong> flat knitt<strong>in</strong>g <strong>in</strong>tegral<strong>and</strong> complete garment technology could be implemented <strong>in</strong> a fast fashion logistics system. Severalmanufactur<strong>in</strong>g <strong>methods</strong> <strong>in</strong> <strong>the</strong> <strong>production</strong> of flat knitted garments are described <strong>and</strong> discussed, suchas: cut & sew, fully fashion, <strong>in</strong>tegral knitt<strong>in</strong>g <strong>and</strong> complete garment. The advantages of completegarment <strong>production</strong> compared to traditional <strong>production</strong> <strong>methods</strong> such as cut & sew <strong>and</strong> fully fashionare, from a technical po<strong>in</strong>t of view, <strong>the</strong> sav<strong>in</strong>gs <strong>in</strong> <strong>the</strong> time-consum<strong>in</strong>g post-knit operations such ascutt<strong>in</strong>g <strong>and</strong> sew<strong>in</strong>g. The o<strong>the</strong>r advantage is sav<strong>in</strong>g of material because <strong>the</strong> garments are ready madedirectly <strong>in</strong> <strong>the</strong> knitt<strong>in</strong>g mach<strong>in</strong>e; thus no cut-loss is produced. The textile technology <strong>and</strong> <strong>production</strong>issues are taken <strong>in</strong>to consideration <strong>and</strong> implemented <strong>in</strong> a fast fashion logistics system. The <strong>in</strong>put <strong>in</strong><strong>the</strong> system is customer dem<strong>and</strong>s for fashion products. This dem<strong>and</strong> creates a range of constra<strong>in</strong>ts,such as quality, cost, time etc. In <strong>the</strong> transformation process dem<strong>and</strong> fulfilment is <strong>the</strong> key issue. Allparameters as quality, cost <strong>and</strong> time should all be <strong>in</strong> focus, but often factors such as delayed rawmaterial or wait<strong>in</strong>g time <strong>in</strong> transportation have a negative <strong>in</strong>fluence on <strong>the</strong> results of this process. kTheideal output from <strong>the</strong> system should be perfect products delivered at <strong>the</strong> right time <strong>in</strong> <strong>the</strong> right place,completely fulfill<strong>in</strong>g customer dem<strong>and</strong>, but this is not always <strong>the</strong> case due to <strong>the</strong> problems describedabove.This paper shows that <strong>the</strong> Time to Market is <strong>the</strong> sum of seven different elements;t Design time,Production time <strong>and</strong> Transportation time, each of which elements consist of value add<strong>in</strong>g time <strong>and</strong>non-value add<strong>in</strong>g time. Design Time has also order<strong>in</strong>g time, <strong>the</strong> time it takes to h<strong>and</strong>le a new modelthrough design <strong>and</strong> pre-<strong>production</strong>. This order<strong>in</strong>g time is excluded <strong>in</strong> <strong>the</strong> case of replenishment of anearlier designed <strong>and</strong> produced product. In that case <strong>the</strong> <strong>in</strong>formation could move directly to <strong>production</strong><strong>and</strong> <strong>the</strong>re is no need for design work or any pre-<strong>production</strong> of garments to see if <strong>the</strong> design <strong>and</strong> qualitycan be fulfilled.The real benefit of <strong>the</strong> complete garment technology, as discussed <strong>in</strong> this paper, comes when thistechnology is implemented <strong>in</strong> a fast fashion <strong>supply</strong> cha<strong>in</strong>. This because <strong>in</strong> a fast fashion <strong>supply</strong> cha<strong>in</strong>for knitted products, time to market for <strong>the</strong> products is essential. The complete garment technologymakes it possible to reduce time for <strong>production</strong> <strong>in</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong>. Processes are removed <strong>and</strong> nonvalueadded time between processes is elim<strong>in</strong>ated. If <strong>the</strong> whole <strong>bus<strong>in</strong>ess</strong> system <strong>and</strong> <strong>supply</strong> cha<strong>in</strong> isdesigned to respond quickly to customer dem<strong>and</strong> for new fashion products, <strong>the</strong> complete garmenttechnology becomes be an important part of <strong>the</strong> system.Complete garment technology implemented <strong>in</strong> an effective logistics system could make <strong>the</strong> orderfulfilment lead times shorter. This could be done by design<strong>in</strong>g <strong>the</strong> <strong>bus<strong>in</strong>ess</strong> system <strong>and</strong> <strong>the</strong> whole<strong>supply</strong> cha<strong>in</strong> to customer dem<strong>and</strong> for fashion products at <strong>the</strong> right time. Many l<strong>in</strong>ks have to beadjusted <strong>in</strong> <strong>the</strong> logistics cha<strong>in</strong>, from raw material to <strong>the</strong> when products are on <strong>the</strong> shelf <strong>in</strong> <strong>the</strong> shop,ready for <strong>the</strong> customers. Manufactur<strong>in</strong>g lead time could also be reduced employ<strong>in</strong>g complete garmenttechnology, <strong>and</strong> toge<strong>the</strong>r with a strategy of postponement <strong>the</strong> effect could be a higher customerservice level <strong>and</strong> reduced lost sales. Postponement, for example postpon<strong>in</strong>g <strong>the</strong> dye<strong>in</strong>g of garmentsas late as possible to <strong>the</strong> POS, means that <strong>the</strong> risk of unsold products due to wrong colour is lowered.Mass customisation could also be ga<strong>in</strong>ed us<strong>in</strong>g this technology, due to smaller batch sizes <strong>and</strong> evenhttp://www.autexrj.org/No4-2007/0219.pdf 273


AUTEX Research Journal, Vol. 8, No4, December 2007 © AUTEX<strong>the</strong> <strong>production</strong> of s<strong>in</strong>gle garments. The technique could also work toge<strong>the</strong>r with o<strong>the</strong>r techniques, suchas pr<strong>in</strong>t<strong>in</strong>g, to accomplish an effective <strong>supply</strong> cha<strong>in</strong> for knitted products.References:1. Mowbray J. A Quest for Ultimate Knitwear. Knitt<strong>in</strong>g International 2002;109 (1289):22-24.2. Wilson, B. Systems: concepts, methodologies <strong>and</strong> applications. 2 nd ed. New York: John Wiley& Sons; 1990 p.10-21.3. Skyttner, L. General systems <strong>the</strong>ory, Ideas & Applications. S<strong>in</strong>gapore: World ScientificPublish<strong>in</strong>g; 2001 p.75-82.4. Hoover, W. Eloranta, E. Holmström, J. Huttunen, K. Manag<strong>in</strong>g <strong>the</strong> dem<strong>and</strong>-<strong>supply</strong> cha<strong>in</strong>. NewYork: John Wiley & Sons; 2001 p.7-37.5. Björnl<strong>and</strong>, D. Persson, G. Virum, H. Logistik för konkurrenskraft (Swedish). Malmö: Liber-Hermods; 1996 p.7-37.6. Christopher, M <strong>and</strong> Peck, H. Market<strong>in</strong>g Logistics. 2 nd ed. Oxford: Butterworth-He<strong>in</strong>emann;1997 p.67-84.7. Armstrong, G. <strong>and</strong> Kotler, P. Pr<strong>in</strong>ciples of Market<strong>in</strong>g. 8:th edition. New Jersey: Prentice Hall;1999 p.151-157.8. Darnton, G. Darnton, M. Bus<strong>in</strong>ess process analysis. London: International ThomsonBus<strong>in</strong>essPress; 1997 p.178-195.9. Mattila H. Merch<strong>and</strong>is<strong>in</strong>g strategies <strong>and</strong> retail performance for seasonal fashion products. PhDDissertation. Lappeenranta University of Technology; 1999 p.48.10. Christopher, M. The Agile Supply Cha<strong>in</strong>: Compet<strong>in</strong>g <strong>in</strong> Volatile Markets. Industrial Market<strong>in</strong>gManagement 2000;29,(1):37-44.11. Fralix, M. T. From Mass Production to Mass Customization. Journal of Textile <strong>and</strong> ApparelTechnology <strong>and</strong> Management 2001;1 (2):1-7.12. Fralix, M. T. Explor<strong>in</strong>g <strong>the</strong> Digital Supply Cha<strong>in</strong>. Techexchange.com.http://www.techexchange.com/<strong>the</strong>library/explor<strong>in</strong>g.html; 2003.13. Graceful Design. Knitt<strong>in</strong>g International 2005;112 (1324):38-38.14. K<strong>in</strong>g, R. E. Hunter, N. A. Quick Response Beats Import<strong>in</strong>g <strong>in</strong> Retail Sourc<strong>in</strong>g Analysis. Bobb<strong>in</strong>1997;38 (7):22-30.15. Christopher, M. Lowson, R. Peck, H. Creat<strong>in</strong>g Agile Supply Cha<strong>in</strong>s In <strong>the</strong> Fashion Industry.International Journal of Retail <strong>and</strong> Distribution Management 2004;32 (8):367-376.Editorial noteThis paper has been presented at PLAN, Research <strong>and</strong> Applied logistics Conference <strong>in</strong> Borås,Sweden, 22 August 2005.∇Δhttp://www.autexrj.org/No4-2007/0219.pdf 274

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