Tirupur (India)-based CBC Fashions has consolidated its client base to work only with nine buyers. The company was earlier working with nearly 15 buyers.
The apparel supplier has undergone this strategic transformation to deliver production timely and focus on individual buyer’s priorities.
Elaborating on the reasons behind this change of operations, T. R. Vijaya Kumar, MD of the company told Apparel Resources, “Through this consolidation, we have reduced the overheads. We now have six merchandising teams while earlier we had 12 such teams for follow-ups with buyers. Post this change, we are targeting an additional annual order of Rs. 30 crores from each of our key buyers. We are also ensuring that every buyer of our places orders of at least Rs. 10 crores every year with us. To have fewer buyers with more orders is definitely a good strategy.”
Out of nine buyers that CBC Fashions is now working with, around five are medium-level buyers. On the other hand, Primark, OVS, and Women’secret are large volume buyers.
CBC Fashions has four different manufacturing facilities with a centralised cutting section. It plans to dedicate a factory to each of its prime buyers to deliver better results and higher output.
The company’s quest for improvement and hunger to fetch better profit margins does not end here. It is implementing principles such as Lean, 5S and Six Sigma to enhance manufacturing processes.
Automation and skill development of workers are also on cards. The apparel supplier has hired Sri Lankan technical experts for faster progress.
The result of these initiatives is that the company’s shipping rate has improved to 100 per cent from earlier 97-98 per cent.
Currently doing an annual business of nearly Rs. 120 crore, CBC Fashions now targets to reach Rs. 150 crore in the current fiscal through its new trade approach and technology advancements.
