Push to Pull Sales
ABCD Industries Ltd (Texturizing Unit)
ABCD industry is a pioneer in the manufacturing of texturized filament from POY yarn purchased locally and imported from Taiwan & China.
ABCD exports products to around 50 countries. One hundred different qualities are produced. Stored and sold based on the availability of products in the warehouse with a TAT of 1 to 6 months. Once loaded on the machine, the material is produced in a period of 24 hrs. Two realities in this environment posed the major challenge for the company:
1. When the customer needs the order delivered, the actual timing is subject to uncertainties (at customer end), cyclic demand like marriage & festivals and rates of the international market.
2. Information on customer infrastructure not available.
This co-existence of uncertainties at both ends, coupled with the pressure to meet monthly targets, led to a stressed working environment and undesirable effects. Increase in inventory (RM/WIP/FG), high investment in raw material & finished product stocks, loss of output because of unplanned quality changeovers are few of them.
Migrating from ‘PUSH’ to ‘pull’ by implementing production planning and predictive sales, reduced the uncertainties in production. Further, to maximize profit, real-time analysis, and phase-wise implementation were made.
Critical benefits experienced post-implementation are as follows: