Textile : Purchasing and Supply Chain organisation

Adapt the purchasing and supply chain organization to support strong international growth
Case study
07/17/2015

Context and challenges

Faced with strong growth of its activity on all five continents, this leading player in the textile and fashion industries must meet a more diversified demand (active in more than 70 countries), improve its reactivity (shorter cycles from design to delivery) and optimize its global sourcing.

It called on Argon Consulting for help in the definition of its 3-year purchasing and supply chain master plan, which would allow for a new organization, processes and logistics resources that are adapted to its opportunities for international growth.

Approach and methodology

Argon Consulting proceeded in three steps :

  • Review of purchasing and supply chain performance and diagnostic of the organization in view of the company’s 3-year strategic objectives
  • Four-dimensional design of the target :
    • Organization of sourcing and purchasing
    • Management of geographical market specificities (ranges, assortments, roll-out schedules, re-assortment rules)
    • Optimization of the international logistics and transport patterns
    • Organization of the international supply chain function
  • Implementation plan

The target was built by combining :

  • A quantitative approach: importance of the sourcing and sales zones, modeling of flows, analysis of cycle times, prototyping of the target organizations
  • A participative approach: business process re-engineering workshops with the collection, purchasing and logistics teams to compress design-to-delivery cycles and develop a short cycle
  • Driving the management committee with regards to organizational problems : role of the purchasing offices, role of the brand’s central teams, rules of delegation, governance of the supply chain (stocks, service rate)

Results

The transformation plan allowed us to build a realistic, detailed target that was adopted by management and to define the implementation phase (strategy, preliminary action plan, definition of the target organization, etc.) applying to all the components of the change process:

  • Sourcing, logistics circuits and distribution network
  • Detailed processes
  • Information systems
  • Change management