Finished Leathersfor Fashion, Automobile and Home Décor Industry
For one finished leather supplier, success and sales growth came with a cost: close follow up production with supplier, extra effort before shipment.
The effort vastly improved the company’s planning and execution functions, they knew that in order to succeed in this era of technology their accounting systems needed to be much more robust than what they are.
challenge
The biggest challenge is to keep the standard at the same level.
Finished leathers are very sensitive raw materials because they will be just about to turn to final product such as shoes, dress, car seat, sofa, etc. So, any disqualification and low quality product, the manufacturers of the final products will be in trouble.
Each industry which uses finished leathers has different criteria; some of them thickness, some of them elasticity, some of them size and some of them surface.
So tanneries must be very careful and meet the standards which are coming from costumers
- Production planning:
As we all know, each batch of raw hides may result in different outcome. So, selections and chemicals used must be arranged and determined accordngly
- Determine the right inventory level:
We need to meet the order quantity; not more nor less. So, batches much be calculated very well since the raw hides are calculated by weight but selling the finished leather is in SQM.
- Optimize the supply chain for perfect order planning:
Each and every step must be carefully calculated, planned and must be applied accordingly. Any significant mistake may ruin production or profitability.
solution
As every production, we need to control the main raw materials and substances. Out biggest advantage is we our self supply the raw hides and chemicals used in tanning. So, we select the suitable raw hides according to the costumer specs and we with our engineers determine the chemicals to be used.
Even though we have control over the raw materials, we still have to deal with production site; with tanneries. With help of our controlling and inspection teams, we overcome with this obstacle as well.
For each batch, our teams and tannery employees work together to minimize the mistakes. By this way, we save effort and investment as well as time of both parties.
results
As results of precautions we take, the faulty rate is very low; of course it is impossible to make 0% as raw hides are absolute natural substance.
We have been suppling finished leather according to the costumer specs successfully. And our reputation amount our costumers really grow.
By the numbers, the effort:
- Reduced lead time by 43%
- Decreased variability by 50%
- Lowered the risk of back-order by 95%
- Increased stock for finished goods by 10%