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Part 1

This case
study was written by Terry Hill and R. Lilly and is about Fabritex, a
subsidiary of Wardman group. Fabritex manufactures a variety of textiles for different fashion and industrial
applications alongside with some interest in engineering,
furniture and finishing. The major area of focus for Fabritex is knitting
fabrics mainly for lingeries and they are
selling these products as branded and non-branded. Currently,
they are supplying products of different segments to a lot of customers but they want to increase their share
of supplying products to Pearlwear business especially in the UK lingerie warp knit. The biggest threat for
Fabritex as a supplier of Pearlwear
business is not meeting actual delivery dates with promised delivery dates
which result in losing market share and customer loyalty
as well. There are several reasons for not delivering products on time i-e
Unpredictable pattern of orders, inconsistent demand and changeover
time losses. Furthermore, their plants are located in two different locations for knitting and dying which is truly a time-consuming process in terms of logistics.Moreover, Fabritex unable to provide
customer desired designs to remain competitive
in the industry.

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According to the data provided in the case
study, Fabritex managed only 16 orders out of 56 at 28.5 % (marked with blue
and yellow shade on the table) to delivered on promised delivery date whereas Pearlwear received only 6 orders out of
56 at 10.7% (marked with green and yellow shade on
the table) as per their required delivery date. This data depicts the clear
image of Fabritex promised date delivery problems.

 

 

 

 

 

 

 

 

 

Order #

Quality

Shade

Quantity
(meters)

Order
Value
(£s)

Date order received

Customer required delivery

Fabritex Promised delivery

Fabritex actual delivery

Item/order Type

Winner / Qualifier in terms of delivery

Winner/Qualifier in terms of share

Week
#

Day
#

Week
#

Day
#

Week
#

Day
#

Week
#

Day
#

44212

SA12

Black 1

300

1482

16

4

23

2

26

4

25

4

Regular

Qualifier

Winner

44214

SK24

Black 1

750

3555

22

2

31

2

35

3

35

1

Regular

Qualifier

Qualifier

44224

SA9

Black 1

300

1482

36

3

42

1

44

2

45

5

Irregular

Qualifier

Winner

44650

SK51

White 0

709

1900

23

2

30

1

30

1

29

4

Regular

Winner

Winner

44663

SK33

White 0

140

375

28

3

32

1

34

4

34

3

Irregular

Qualifier

Winner

44754

PN704

White 0

1200

4284

13

2

23

1

23

1

22

1

Regular

Winner

Winner

44755

PN704

Black 1

100

368

18

2

28

1

28

1

27

1

Regular

Winner

Winner

44827

SA9

Black 1

500

2470

30

4

34

2

38

3

37

1

Irregular

Qualifier

Winner

44832

SA12

Black 1

400

1976

34

3

38

1

42

2

40

5

Regular

Qualifier

Winner

44849

SK24

White 0

900

4140

14

4

20

2

24

3

24

1

Regular

Qualifier

Qualifier

44935

SA12

Champagne 73

500

2470

31

5

35

3

35

3

33

5

Regular

Winner

Winner

44976

SA12

Champagne 73

300

1482

32

5

40

1

42

4

40

3

Regular

Qualifier

Winner

45060

TD468

Black 1

150

1116

35

1

39

1

38

4

38

4

Regular

Winner

Qualifier

45175

SK24

White 0

400

1840

34

4

41

1

40

4

40

2

Regular

Winner

Qualifier

2669

SK33

White 0

1400

3752

15

2

19

4

25

2

23

1

Irregular

Qualifier

Winner

44784
/1

TD468

White 0

700

5054

28

3

35

1

36

5

35

5

Regular

Qualifier

Qualifier

 

 

 

 

 

 

 

 

 

 

 

Part 2

·      
Currently, Pearlwear business
have two manufacturing plants in Europe and Southeast Asia which means that
they are saving a lot of cost in terms of Labour, Transportation and taxes etc
because labour is much cheaper in Southeast Asia as compared to Europe so that
they don’t have to supply end-user
products from European plants to Southeast Asian consumers.

·      
Perlwear business order product from three or four suppliers and some
fabrics allocated to only one supplier for the life of the fabric which helps
them in the form of low prices, Consistent quality, lower purchasing workload,
managed supplier performance and quite a time-saving process.

·      
If Fabritex provide products
with good enough quality and according to the specification of the Perlwear business,
then Fabritex will get orders very
quickly otherwise Pearlwear will take its
business elsewhere.

·      
Customer-supplier relationship
plays a significant role to understand
the required demands of both parties, Cooperation in changes about the specification of the products or orders and
conflict management in between customer and supplier.  

·      
If Fabritex management uses proactive approaches to satisfy the needs
and demands of the Peralwear business whenever they mentioned some sort of
development changes then it could be helpful for Pearlwear to keep Fabritex as
their core supplier of a variety of
products.

·      
Short lead times for orders
could be beneficial for the Pearlwear business only in case if they order on
predictable demand pattern so that they can receive products from Fabritex on a
promised delivery date and at the same
time, Fabritex can save the expenses of
raw material inventory.

·      
If Pearlwear business predicts
its demand from final consumer and orders product from their suppliers in a
predictable demand pattern then they can get their products from suppliers on
current prices because, in this way, the supplier can stock raw material inventory
according to the requirements of the customers.

·      
Suppliers that deliver item to
Pearlwear business on promised delivery dates, according to the desired specification and provide new designs
as per market demand are getting lion’s share from Peralwear business which
increases productivity and efficiency of the outsourcing, better preparation for the market challenges and Peralwear business don’t have to invest much in
research and development department.

 

 

 

 

 

 

 

 

Apart from productivity and efficiency, indirectly customer is also
one of the major part to concern during operations performance because they are
the only reason behind the existence of the firms. Companies can’t afford new
customers every time since it’s an expensive task and requires more marketing
cost, time and effort that’s why companies focus more on customer retention (Ennew, 2003). Operations performance is the direct
determinant of the customer loyalty and satisfaction (Stank et al. 1999), However
waiting time has an influence on service satisfaction whereas unsatisfied
service may affect customer loyalty badly (Bielen and Demoulin, 2007). According
to Bielen and Demoulin (2007), The imbalance in between the demand of the
customer and capacity of the plant may increase waiting time which results in
lower customer retention.

 

 

 

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