Part to date to satisfy the need of the

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. Their designers
are not up to date to satisfy the need of
the customers even they are not close as per the requirements of the customer.

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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 which are the primary reason behind
minority supplier of the Pearlwear business.

 

 

 

 

 

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.

 

 

Part 3

In
this era of modernization and technology,
operations management plays a significant role in the business and corporate
world whereas operations performance is
used to define, apply and improve different
strategies that will be helpful to achieve goals of the business firms. Apart
from productivity and efficiency, indirectly customer is also one of the major parts of concern during operations performance
because they are the only reason for 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). A lot of researchers from their papers reveals
that if the  customer is satisfied from the
 product or service then it is highly
possible that they  will come back for repurchase which overall results
in increased market share and sales so that operations management can take
credit of this by improving operation performance (Cronin and Morris, 1989;
Innis and La Londe, 1994).However waiting time has an influence on service
satisfaction whereas unsatisfied service may affect customer loyalty badly (Bielen
and Demoulin, 2007).Likewise, Fabritex,
who is suffering from delivery time issues and 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. After Analyzing customer satisfaction level, Companies
can predict customer loyalty, future forecast sales, marketing through word of
mouth and whether the customer will come
again or not for same or any other products or services (Eggert and Ulaga,
2002). Since all these things are interrelated and revolve around operations
management and operations performance which could be profitable for the
companies in the short and long run. Different companies produce different
nature of the products from different nature of manufacturing plants which
requires a certain amount of time before starting manufacturing again which is
also known as changeover time losses and can cost the company time, labour and
delay in deliverable items. A practice known as SMED (Single Minute Exchange of
Die) is widely using nowadays to reduce the excess waste in the manufacturing process and this waste could be
anything ranges from time to raw material etc. Customer feedback plays a significant role in improving operations
performance and continuous improvement but it all depends on from which way
company is getting feedback from the customer whether directly or through third
parties. To communicate with customers in real time, some manufacturing firms
are shifting towards ‘Servitization’ refers to often
manufacturer firms that offer auxiliary
services to adjunct their conventional products and fundamental services.

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