About TFG FFC’s Supply Chain Development
The Fast Fashion Cluster II is aimed at improving the implementation of the QR model within participating retail divisions at TFG as well as their strategic local supply chain.
Average delivery conformance performance is 97%, up from 60% in 2014.
Key to the success of the QR model in TFG is the strategic alignment in the value chain from retail through to CMT suppliers. Operationally this requires the development of clear and aligned processes, standard operating procedures, measurement and communications. For example, improving the adherence to TFG delivery standards has been a key focus area for suppliers.
Given that each CMT supplier began with a different set of base capabilities, the experts needed to carefully manage their intervention strategies to ensure process and systems improvements at weaker suppliers caught up to those of the stronger performing CMTs, thus ensuring better balanced overall delivery conformance performance.
How the programme helped
In order to achieve improvements in delivery conformance each CMT received training to explain definitions and measurement standards of the delivery scorecard. This cleared up any misconceptions relating to misinterpretations of measurement definitions. The manufacturers were then provided with expert support to ensure internal systems and processes were improved. The focus areas here were visualised performance within despatch areas, 5S to prevent incorrect packing mistakes, clear counting procedures and implementation of AQL practices.
Results and future plans
At the beginning of the project in 2014 less than 60% of firms met their delivery conformance targets. Nine months later this had been improved to 80% and within 16 months average supplier performance averaged at 97%. With the stabilisation of delivery conformance, the supply chain is now able to speed up without constantly breaking down. Reduced lead times have been achieved along with on-time gains 88% to 99.45% over a 12-month period. Future plans will prioritise greater focus on stabilising key scorecard performance indicators.