Inventory Of Garment Factories Overturned In 2015

Story 1. Order process in garment factories

In 2012, Wang Gang first took the small order of the Internet brand "Han Du Yi house".

From the initial "dispensable, dry play" to "enterprise lifeline and full dependence", with the shift of foreign trade orders and electricity supplier orders, Wang Gang experienced a painful process from boycott to acceptance to adaptation.

In September 2015, Han Du Yi house set up 3 production bases that fully adapted to the operation mode of electric business in the whole country, and Wang Gang became the first batch of water testing people.

He changed from an ordinary supplier to the "production agent" of the electricity supplier in this area. After the unified purchase order, it was divided into several modules according to the production process and allocated to dozens of factory production, each factory from the original production garment to only part of the process.

Under the impact of the Internet wave, the production mode of traditional garment factories has been completely subverted from the drip to the impact adjustment.

At the moment, Wang Gang urgently needs to find enough clothing factories that can meet the demand of the electricity supplier, and persuade them to complete a disruptive change together.

It is not easy to find these factories and build production platforms.

Story two. Find resonance.

Ma Jie army was engaged in garment processing as early as 1986, and founded its own Gaomi Tong run Xiang Garments Co., Ltd. in June 2004.

In the past thirty years, the horse soldiers are producing foreign trade orders. He has witnessed the rise and fall of the external production mode of China's garment industry.

"The factory has been undertaking all along.

The biggest one is 400 thousand pieces and one paragraph, with a delivery period of nearly half a year.

When Ma Yijun founded the "Tong run Xiang", it was the most prosperous period of China's garment processing industry. The continuous output made the factory worth about twenty million yuan and hired more than 120 workers at its highest output value.

After 90 of last century, the global garment industry began to shift to China.

In order to pursue the lowest procurement cost, these tens of thousands or even hundreds of thousands of large foreign trade orders have a very strong planning - the lowest price group purchase materials, looking for the cheapest processing base, through the shipping freighter unified pportation.

However, after 2010, China's labor costs continued to grow, and the prices of raw materials surged.

Japan and South Korea merchants quotations drop and drop, orders can be less and less, the operating rate is insufficient to play the advantage of scale and reduce costs, which leads to more scarce orders, a vicious circle.

Ma Yijun sighed that factory workers had dropped from more than 120 to more than 30, and a large number of factories had also been left idle.

Knowing that the business is difficult to pick up, the original horse carrier army has sprouted the idea of abandoning the thirty year old bank and shutting down the factory. At that time, Wang Gang sent the electricity supplier's orders to the Korean home.

However, Ma Yijun is hesitant about completely different business models.

As the largest brand of Internet women's clothing in the country, the Korean business model, which is built by the Internet and built on the Internet, is not compatible with the large single production genes inherent in China's garment industry.

Whether the production of electricity supplier orders can be profitable has become the biggest concern of the Malaysia army.

As a matter of fact, Wang Gang and Ma Shai Jun had similar experiences. They all experienced the pain of being left alone, but they all wanted to go through the business.

In 2010, Dayu Garments Co., Ltd., founded by Wang Gang (hereinafter referred to as "Dayu clothing"), was the main supplier of children's clothing in Japan's fourth largest clothing company, island village company, at most 40 million yuan per year.

But now, he has never been able to receive a single order. All the orders come from.

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Wang Gang told us that an unexpected visitor broke into the factory in June 2012.

After introducing, he learned that this is a business manager from "Han Du Yi house" to seek cooperation and processing.

When the unexpected guest took the order, Wang Gang was surprised. The other party had only three orders, with only 300 pieces per unit, far below the minimum start-up capacity set by itself.

However, Wang Gang did not refuse, but held a "dry play" mentality and took the smallest order ever made.

When Wang Gang sent orders to workers, he was resisted by workers. Some workers even suspected that "these 300 samples are samples."

Because in the printing and dyeing process, it is a waste of nearly 10 meters to correct the color.

A piece of clothing, with a cloth of about 1.5 meters, is purchased for more than ten million meters on a single occasion, and the cloth that is used for coloring is negligible.

Electricity supplier small single mode, only 300 meters at a time, dyeable long car turn around 450 meters.

"At that time, the price of double profit was higher than that of the external one, but after the delivery, it was still lost."

Wang Gang said frankly, although the electricity supplier orders are many, but to earn money, it is not an easy task.

Story three, misgivings

In 2013, when foreign orders and orders for electricity suppliers of DYU clothing changed and each half took place, Wang Gang's worries were almost the same as Ma Yijun's worries today.

The production efficiency is greatly reduced as well as the size order process.

For example, the worker's production of 300 or 500 orders has just been finished, and the money will have to be adapted again. There are only tens of thousands of pieces, and only one time for plate making and proofing.

Generally speaking, it takes five days to produce two thousand pieces of clothing, but 300 to 3 days.

In the fast fashion industry, efficiency is profit.

At the same time, the order of electricity suppliers to workers is higher than foreign trade orders.

The products are strictly processed according to their requirements, "even if they are three legged trousers", and the Korean version of the global purchase should be reformed according to the Chinese figure, which requires the factory to conform to the overall style and design ability.

The single entry is the physical store, and the salesperson can make the final dressing for the clothes. After the storage, the products can be sold directly to the customers, and the products will be more strict with the final products.

As a result, factories have to pay higher wages for workers.

In 2013, Wang Gang originally intended to supplement the electricity supplier's orders with the profits of foreign trade orders, and maintain the operation of the factories. At the end of the year, foreign orders were not received yet.

At this time, he and his wife could only fight against the water, make a thorough adjustment of the technological process, and take the lead in undertaking the order of electricity suppliers.

Two people even had the decision to shut down factories in 2014.

Wang Gang gave up the list and divided the 20 components into two small production lines to adapt to the rhythm of the batch and batch of small batches of the Internet, and to train the staff's quick response ability to cope with the first delivery date of 30 days. To shorten the production cycle, the factory stocked itself with cotton yarn to meet the demand for quick return of 7 to 10 days.

"Before delivery, the delivery time is long, and the contact with foreign businessmen is all through email. Today we do not see the day after tomorrow, but we can learn from WeChat and QQ. We have to check at any time and place. Once there is a problem, we have to reply 5 minutes, and we have to solve it in half an hour."

The electricity supplier is running at a high speed, and Wang Gang is like a tightened winding wound. It is always on standby.

After a series of adjustments, in 2014, Dayu clothing began to adapt to the production mode of a small number of suppliers and a quick return form, and completed more than 1200 single orders of Han dresses. The output value of nearly forty million yuan was almost more than 100 yuan.

Speaking of right

The feelings of the production mode, Wang Gang described the horse soldiers, the number of large quantities outside, the competition is the size, orders can predict profits.

In order to achieve zero inventory, the electricity supplier first orders for a garment usually only 3500 pieces are used for trial sale, and the sales will be repeated orders many times, and the number of chasing a list will often be as many as thousands.

There are uncertainties in the electricity supplier's orders. When producing the first order, it's like sowing. Only catching up is the harvest. Usually, it takes 35 months to see profits.

Finally, Wang Gang persuaded the horse soldier to try to pform. After all, no order factory could shut down.

Story four, total subversion

The shift of the global garment industry is bad for traditional factories, but it is good for Internet brands.

"The future garment industry is an era of individuality and small beauty."

Zhao Yingguang, chairman of the Korean clothing house, said that this determines the order demand of the clothing industry will show a trend of small and micro.

"Before 2012, the electricity supplier is obviously in a weak position. It is seeking to do and coaxing. It also needs to pay 30% of the advance payment."

Wang Guang song, director of production planning department, said that with the rise of the electricity supplier, more and more scale enterprises began to change their ideas, willing to undertake the order of electricity suppliers, and adjust and pform according to the electricity supplier mode.

However, in Wang Guangsong's view, although the traditional factory has temporarily met the needs of the electricity supplier after its self renovation, it is essentially established and operated in accordance with the traditional industrial mode.

In September 2015, South Korea's clothing house in Shandong Gaomi, Guangdong Dongguan and Humen three textile towns tried to completely rebuild the supply chain according to the needs of the electricity supplier.

Previously, there were nearly 100 factories in South Korea's clothes shed, which were directly supplied for garments, and the management needed to run a lot of manpower and financial resources. Today, 1 houses are designated as "production agents", and they promise to allocate enough orders to them.

The "production agent" divides the order into several modules according to the production process, and each franchisee only takes part in some processes, and one garment is jointly completed by N factories.

Han Du Yi house only needs to set up the admittance standard of the cooperative factory in the early stage, give the promised order in the middle, and control the product quality later.

As a "production agent", Wang Gang is responsible for the allocation of orders and the construction and operation of the whole platform.

At present, Wang Gang has initially built up a supply chain platform consisting of 2 spinning mills, 6 weaving factories, 4 dyeing factories, 2 printing factories and more than 30 garment factories.

Wang Guang song, director of production planning department of Korea's clothing house, pointed out that a garment processing includes printing, cutting, sewing, and finishing.

In the past, a supplier should take into account all the processes, and the whole production line would be stagnant when a certain process was delayed. Now the factory only processes one or more processes, which is more efficient and faster.

And some factories responsible for tailoring have purchased valuable automatic cutting beds to improve automation level and production efficiency.

All these changes correspond to a small number of business models and quick return mode.

The manager of Deng Wen, who is in charge of the supply chain, believes that the number of E-Commerce orders is generally small. After the cutting process, the order of the same material, process and category can be classified and merged, and the scale effect can be obtained by a factory.

Gaomi Zhong and printing are the largest printing factories in Jiangbei. Zhao Sijiu, general manager, admitted that the small and micro order of the electricity suppliers made the large printing factories lose too much and could not be directly butted.

Through the integration and formation of a regional supply chain, unified procurement will be able to connect raw materials suppliers with larger scale and more stable quality.

Under the historical background of the traditional industrial age to the Internet age, Wang Gang and the Malaysia army must also make a painful pformation.

Ma Yijun is faced with abandoning part of the process, abandoning the original production mode, undertaking electricity supplier orders, and Wang Gang has changed from managing hundreds of workers to managing dozens of factories and thousands of workers.

In October 2015, Wang Gang managed the platform and began trial operation. At present, thousands of orders have been taken from the Korean home.

But Wang Gang said frankly, how to put orders in Korean market, how to organize the organic and efficient operation of the platform, and how to complete the production according to the quality requirements of several collaborative factories, it still needs half a year's running in period.

Among them, the collaboration factory must also continue to increase or decrease, replace and eliminate according to the order quantity. This is why Wang Gang persuaded the horse soldier to join.

Disruptive changes are bound to be accompanied by arduous challenges.

Wang Gang felt that the most urgent shortage of supply chain platforms currently testing water is industry managers.

With the huge platform, numerous orders and high-speed operation, once the loopholes in management and control will not only affect the entire supply chain system, it will also have an impact on the operation of the Korean home.