TOCICO

The fashion clothing market is extremely dynamic and has many products with very short life cycles. This scenario makes many products have such low sales that fail to sell even the first production batch. Even when this batch is very small for the industry, they are generating large obsolete inventory accumulation in the fashion point of view. While items that sell more than the initial forecast will quickly stock out, causing significant loss of sales and lack of real demand for this product. Being able to identify which products would sell significantly more and being able to replenish them and ensure the availability, generates a perception of value by the customer and significant increases profitability. The TOC solution to meet this important customer need proposes putting these best sellers in a model replacement for MTA. However, the demand for this product may fall drastically in a short period of time, causing obsolescence in the MTA stock and generate more losses than gains. Due to this negative branch which is common to the MTA solution it is not used in the fashion clothing segment. I will present an implementation case study in a big retailer of fashion clothes in Brazil, which has more than 250 stores, three distribution centers and 7 factories. Through this case study, we avoid this negative branch creating a process that quickly identifies the items that sell much more than was expected, to verify the availability of raw materials and generating orders in MTO that take advantage of short lead time industrial segment and generated by the implementation of the DBR in an integrated supply chain. Along with the process were developed some S & T organizations to support the implementation as well as a simple and robust system of prioritization and management of industrial capacity, set a control panel that shows the operating and financial results generated by the replacement initiative of the best fashion sellers by MTO in lead time super-fast.