Fashion & Manufacturing Toolkit: Efficient Production Management for UK Designers, Exercises of Business

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An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 1 Alliance Fashion and Manufacturing Toolkit Designers Edition Helping to make production management easier for fashion designers and manufacturers An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 2 Contents Alliance Fashion and Manufacturing Toolkit 3 Code of Practice 5 Production management 7 Job specification – Production Manager 14 Critical path management 17 Garment specification sheet 19 Factory assessment checklist 21 Workspace checklist 23 Production schedule 25 Womenswear fashion calendar opportunities 27 Quality control 30 Case studies Finding a production unit/manufacturer 34 Production volumes and costings 36 Trims – choice, procurement and timely delivery 38 Finance 40 Terms and Conditions 42 Reserving production space 44 Patterns 46 Fabric and yarn 47 Production samples 49 Quality control procedures 50 An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 5 Code of Practice The Alliance has developed a recommended Code of Practice. This provides a two-way assurance between the designer and production unit. This will assist both in adhering to a professional set of standards. Designers I, the designer, in the process of placing production orders with you, the factory, will ensure that: • All technical requirements will be notified to you at, or before, the time of issuing the docket. These requirements include: order details, special making requirements, trimmings required, specification sheets and measurement charts. • Fabric and trimmings will be supplied for this docket in good time for satisfactory completion by the due date. Any delays to components will be communicated to you by email at the earliest possible opportunity. • We will provide you with a pattern for the docket, on which we expect the garments to be based. If the pattern requires alteration prior to production we will rectify it in good time for your cutting date. If the pattern has to be altered by you it must be with our agreement and we understand there may be a negotiated charge for this. • We will pay the invoice for the docket within the agreed payment terms. Anything affecting our ability to pay will be communicated by email as soon as it is known. • We will take delivery of the finished garments on the agreed date unless a change has previously been agreed in writing. • The fabric and trimmings on the docket remain the property of the designer at all times. • All changes to orders, dockets, dates, prices, quantities etc. will be communicated in writing to you at the earliest opportunity but no later than three working days prior to cutting. • Any remedial work required will be notified in writing to you (the factory). You will be given first opportunity to rectify the problem, at your own expense, before costs are incurred with other contractors. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 6 Factories I, the factory, in agreeing to make the designer’s orders, will ensure that: • All technical issues arising that affect make, delivery date, sizing, price or quantity will be communicated in writing to you as soon as we become aware of them. • We may be required to alter a pattern on your behalf and will only do so with your agreement and once any extra charges have been agreed in writing. • All deliveries of fabric and components received directly from suppliers on your behalf will be recorded on the docket. The delivery note will be faxed or emailed to you the same day as it is received. • Shortages and damages to fabric and components will be notified to you, in writing, on the same day that they become apparent. • We will agree a delivery date for every docket and communicate any changes to you before cutting and at least one week prior to delivery. • The docket will only be accepted by us when we have agreed the delivery date and price. • We will invoice for the goods at the price agreed on the docket and will expect payment within the agreed payment terms. • Any extra costs, not previously agreed, will be notified to you in writing and production will only continue upon your written agreement. • We will preserve the confidentiality and intellectual property of your designs by not using your patterns without agreement or showing your designs to third parties. • All fabric and trimmings remain your property. Any un-used fabrics and trimmings will be returned to you in their entirety. • Upon notification of a quality problem we will rectify the goods at the earliest possible opportunity. This will be at no charge if it is our fault. • If the problem is caused by a third party we will notify, in writing, the cost of any remedial work required prior to it being carried out. Signed for the Designer: Name: Position: Company: Date: Signed for the Factory: Name: Position: Company: Date: An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 7 Production management Taking orders from retailers, while quite an achievement, is only part of the challenge of running a successful designer brand. How a designer manages the garment production cycle can be the difference between success and failure. Production management covers the entire cycle from production orders to the factory. Production management of your hard-won orders is a vital skill that applies to a fashion clothing business irrespective of the size. The same pressures, problems and delays will affect you, whether you are making 50 garments or 50,000 garments a season. The only differences between these two scenarios are the numbers. The skills required to manage the process efficiently are exactly the same. Many designers use a dedicated computer software system for the management of their orders and dockets (production orders to the factory). These software tools can be a huge benefit to your business and, as you grow, they become more and more vital. They can be sourced on the internet under ‘fashion production software systems’. However these systems do come at a cost and your business may not be ready to bear this administration expense just yet. If you are not ready for a software system, you will need to create your own modus operandi so that you, and your staff or helpers, have a clear sequence of actions to follow. The procedure for putting your sales orders ‘into work’ (i.e. into production) breaks down into these sections: • Collating Sales Orders • Collating Purchase Orders An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 10 their technical capabilities. If, when you visited them, they were making lined tweed skirts, are they going to be able to successfully deliver a docket of silk dresses? Despite what the factory tells you, your decision to work with them or not can only be based upon your own observations. The safest way to select the right factory for you, is on the basis of a sample that they make for you of the style in question – although cost is an obvious factor here. Points to consider • Can the factory give you the price for the quality you need? • Can they meet the delivery date? • Are they technically competent in that product category? Best practice • Get a sample made by your chosen manufacturer and agree the price. • Use the Code of Practice to outline both parties’ responsibilities. Production Bookings So at this stage you have your sales orders, your fabric and trim requirements and you know who is going to make the docket. Best practice is now to make a production booking with your factory so that they can ‘block out’ some production space for your orders. This production booking will be influenced by the delivery date of your fabric and trims. If your component dates are delayed then you need to alert the factory so that the production booking dates can be extended. Remember that production cannot commence until all fabrics and trims are in place. Best practice • Constantly review purchase orders and update your production bookings if suppliers are late with deliveries. • Keep the factory informed of delays so that they can ‘juggle’ their bookings and run at optimum efficiency. • Use the Production Schedule. Building a Docket In an ideal situation you should collect all fabric and components in one place so that once everything has been delivered to your studio you can pass it to the factory with the docket (their purchase order). This way you are giving the factory everything they need to make the order at the same time. If it is possible, this is undoubtedly the best process, as it dramatically increases the chances of the factory being able to keep to agreed delivery dates. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 11 However, it is not always practical and it is sometimes hard to avoid sending deliveries of fabric and trims direct from the supplier to the factory. If this direct delivery occurs, it is very important that you tell the factory and that they are able to take responsibility for recording the direct delivery and notifying you that it has come to them. Best practice • Build your docket fabrics and trims so that you can pass them over to the factory all at once. • Tell the factory when you have had something sent to them so that they can look out for it. • Get delivery notes from the factory of goods that were delivered direct to them on your behalf. • Remember to record the different components of the garment to ensure that you are aware of each fabric and trim. Keep the information for this garment along with the information for the other garments in the collection. Issuing a Docket The docket is the order to your factory that tells them exactly: • What style to make. • How many garments and the size breakdown. • What components they need to use. • What the delivery date is. • The price that was agreed when the style was sampled. It is very important that the details are correct. For example, it is too late to change the size breakdown when the cloth has been cut. Best practice • Make sure the factory owner/manager is aware that they have received the docket. • Get them to re-confirm that the delivery date is still realistic, as the production booking may have been made several weeks earlier. • Issue a docket that clearly references the Production Booking that you put on the Production Schedule earlier. • Ensure that changes to orders and dockets are communicated promptly to the factory and find out if the changes affect deliveries in any way. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 12 Monitoring Production Most professional production managers will use a variety of methods to maintain contact with their factories. Progress can be monitored by phone and email updates but there is absolutely no substitute for visiting the factory on a regular basis. By visiting their premise regularly you are more likely to develop a rapport with the factory and create a good working relationship. Best practice • Visit the factory at least once a week whilst they are in production. • Use the Quality Control Checklist. • Use the Production Schedule to monitor progress of your orders. Taking Delivery Once the garments are ready it is your responsibility to get them from the factory to your chosen location. The garments should be thoroughly checked for quality and quantity before they leave the factory. It can be difficult to rectify any problems once they leave the makers’ premises. Be very careful about sending interns or part-time staff to collect the finished garments. The factory will have spent a long time pressing and finishing the order and careless handling will negate much of their work. Best practice • Check the garments for quality and count them. • Make sure the garments are bagged and are not going to fall off the hanger. • Where possible, use a professional hanging garment delivery service to bring them to you. • Take delivery of the orders on the date you agreed on the docket. • Pay the factory on the agreed date as per the Code of Practice. Problem Solving Inevitably, despite everyone’s best endeavours, things sometimes go awry when using factories. The most common problems in dealing with manufacturers are: • Delays to your orders. • Quality issues. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 15 Production Orders • Agreeing and placing orders with factory. • Monitoring in-house technical team to ensure factory receives all patterns, specs etc in good time. • Negotiating and recording price and delivery dates with factories. Factory Management • Experience of using any relevant computer software. • Enter production orders on critical path. • Able to identify source of problems that result in production issues. • Communicating technical issues to factory and team. • Communicating timing issues to factory and team. • Able to build and maintain a constructive and positive relationship with factories. Technical Team • Communicating accurate and timely information to the technical team. • Advising line manager of delays affecting customer deliveries and any events that impact on target margin. Sourcing Trims • Technical knowledge of requirements and attributes of all trimmings – e.g. zips and buttons etc. • Colour matching of trimmings to designer’s requirements. • Knowing market price of components and negotiating to satisfy margin requirements. • Maintaining awareness of lead times of components. Stock Control • Recording receipt and usage of all fabric and trimmings. • Maintaining records of garment deliveries in and out. • Charging shortages and damages back to factories. Dispute Management • Understanding factory procedures in order to facilitate dispute resolution. • Being able to diplomatically manage technical issues with the in-house team. • Use own personality and experience to resolve production problems. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 16 Quality Requirements • Knowledge of garment construction and use of machinery. • Understanding attributes and technical requirements of different fabrics and trimmings. • Understanding and applying the company’s standards to finished goods. Logistic Requirements • Liaising with factories to ensure timely deliveries. • Booking of transport to effect collections and deliveries. Customer Deliveries • Checking and authorising factory invoices. • Creating customs documents where required. • Creating sales invoices or passing packing lists to accounts to invoice. Ascertaining and Maintaining Margins • Knowing all costs. • Negotiating purchase prices. • Updating systems with date/price changes. Software and Systems • Using procedures as laid down by the company. • Creating spreadsheets and Excel systems to monitor and notify production issues. • Totally responsible for accurate and timely information being recorded. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 17 Critical path management One of the key principles of best practice in production management is having control and knowledge of the critical path for your orders. A critical path is a timeline that reflects not only the anticipated delivery date of your purchase orders but what each of those orders is made up of, what each needs in order to be completed and for you to fulfil those deliveries. Once you have sold your collection, and calculated the requirements for your purchase orders of fabric and trims, you need to ensure that you keep track of each fabric and trim used in your collection so that they can be monitored. Don’t forget that it is not just these physical items that will affect the delivery date of your garments but also the services that are required to bring your orders to fruition, e.g. pattern-cutting, printing, embroidering etc. It is important to be aware of the impact that late deliveries will have on the final deliveries to your customers. Without a good understanding of the whereabouts of your fabric and trims in the production process, you risk disruption and delay to your production which could cause cancellation of your orders and non- payment from stores. Many designers use a dedicated computer software system for the management of their critical path process. If you are not ready for a software system, you should create your own method of critical path management – the Best Practice section below outlines how to get started. The first step is to know where everything for your orders is going to come from and how long it will take for them to be delivered once you have ordered them. You should have a rough idea of the lead times on fabric and trims before you take orders from your customers. It is quite common, and not very professional, for designers to take orders that need a particular fabric only to find that it is unavailable due to long lead times, or that there are large minimums that can’t be met by your order. For example, it is no good quoting an end-July delivery to your stockists, if the Italian fabric supplier cannot produce your order until after their August closure. Another common issue arises when designers assume that once the fabric has been delivered to the factory, the dockets will go straight into production. In fact, many An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 20 Designer Name Here Date Garment Description Style No. Fabric 1 e.g. Red Silk Satin Fabric 2 Fabric 3 Seam Type e.g. Open - satin bound Seam Allowance e.g. 4mm Zip e.g. 18cm invisible Fastenings e.g. 4 24l buttons Stitches per inch e.g. 15 Thread Type e.g. Gutermann 70 Thread Colour Interlining Pad Shoulder Roll Binding Key Measurement 1 Key Measurement 2 Key Measurement 3 Key Measurement 4 Key Measurement 5 Content Label Logo Label Swing Ticket Hanger Bag Sketch Fabric Swatch Garment specification sheet An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 21 Factory assessment checklist The Alliance has put together a factory assessment checklist. This checklist should be used when visiting a new production unit to ensure that they meet your requirements in terms of their production ability, physical conditions and working practices. Best practice • Fill out the checklist for each production unit before entering into an agreement with them. It will allow you to compare one factory to another and make an informed decision on which one is best to produce your garments. The next page shows the factory assessment checklist. It has been designed so that you can use it as many times as you like – simply make a photocopy of the checklist for every new factory that you go to visit. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 22 Designer Name Here Date Factory Location Production Capacity Lead Time Speciality: Rating out of 10 Cleanliness Office Cutting Machining Toilets Staff Canteen/Eating Area Needle Policy and Records General level of clutter Physical Security (alarms etc.) Fire Extinguishers Fire Exits (unlocked etc.) Health and Safety (protective clothing etc.) Age of Equipment Special Equipment Pressing Capability Technical Ability Pattern Knowledge (alterations etc.) Ease of Access (loading/unloading) Payment Terms Pricing Working Relationship Ability to Communicate Willingness to sign Code of Practice Other Other Total Rating Factory assessment checklist An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 25 Production schedule The Alliance has created an Excel spreadsheet to help you to keep track of your orders and where they are in the production cycle. This should be used as part of your overall production management. Despite the huge variety of garment types, when it comes to production management there are only three types of order: • Orders not in work (where the docket has not been raised). • Orders in work (where the docket has been raised and issued). • Completed orders. The Production schedule (Excel spreadsheet) is split into these three sections: 1. Orders not in Work This section is for those sales orders for which you have not yet issued a docket. Once you have your sales orders and details of your fabric and trims, make a production booking with your factory, get them to agree the date and give the booking a sequential reference number. Once the factory agrees the booking, put it on the schedule under the section ‘Not in Work’. 2. Orders in Work This section is for those sales orders where you have all the fabric, trims, labels, etc. and you have been able to raise a docket. You should have previously given these orders a production booking, so when the docket is ready simply cut and paste the order line from the top section and put it into the bottom ‘In Work’ section – don’t forget to fill in the docket number. 3. Completed Orders When the order has been delivered by, or collected from the factory, then you must invoice it to your customer (once the quality has been checked, of course). Take the relevant docket line from the ‘In Work’ section of the spreadsheet and cut and paste it into the ‘Completed Orders’ section. It will need editing because you do not need to show the production booking of this completed order. What you can show is the customer invoice number that you create when you send it to your customer. It is a great way of knowing that all your deliveries get invoiced and that no stock is sitting around your business costing you money. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 26 In this way the production schedule allows to you to have one spreadsheet that encapsulates your whole order situation. At a glance you can see what is still to be put into production and what is still in progress. This will enable you to plan and discuss your production needs when you are in the factories. Best practice • Make a production booking for every style you intend to give a factory. • Don’t forget to keep the details updated as the situation changes. • Move the orders from the top section to the bottom ‘In Work’ section as they become dockets. • Keep the fabric and trim delivery dates under constant monitoring and update the schedule as they get delivered. • Notify the factory of changes. Below is a copy of the production schedule. The Excel spreadsheet can be downloaded from: http://www.nesta.org.uk/fashion_toolkit An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 27 Womenswear fashion calendar opportunities This calendar has emerged as high-end designer fashion has followed the high street in acknowledging that the idea of people renewing their entire wardrobes between seasons is outdated. Much of the high street relies on more than eight drops of new merchandise a year. Larger high-end brands produce at least four collections each year. High-end fashion designers therefore have an opportunity to increase their sales as a result of the continuous loop of the fashion calendar. We have prepared this Toolkit to give you advice and guidance on making the most of this opportunity. Four-collections per year Launching four instead of the traditional two collections each year has become core business for many of the designer labels based in the UK. In June 2011, over 30 London based high-end designer companies launched Pre-Collections/Resort Collections in Paris. The introduction of more collections enables them to provide new, full-price merchandise in store at a time when the ‘past season’ mainline collection is discounted in the sales, and prior to the new season mainline deliveries which will start again after the sales in August and January. The four season high-end calendar includes: • Autumn/Winter Mainline, which continues to be delivered to stores in July to September. • Spring/Summer Mainline, which continues to be delivered January to March. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 30 Quality control Achieving a good quality standard is not just about having a good factory – although having good manufacturers is part of the battle. Your sales orders are won through hard work and are much too important to risk by being laissez-faire about quality and timeliness. Retailers frequently cancel orders if they do not meet their quality expectations. It is therefore the responsibility of the designer to take the initiative for the whole quality process. How you work with your factories will ultimately be the deciding factor in satisfying your customers’ quality requirements. In the first place much of the discipline and technique involved in achieving high quality standards stem from the designer – as how the requirements are formulated and communicated to the factory can have a direct impact on the quality of your production garments. The garments must be able to be manufactured and the product and quality requirement must be suitable for the selected factory. It’s no good expecting beautiful tailored trousers from a dress factory – no matter how good the factory is. Selecting the right factory is a crucial part of the quality process – the first step is to think and be very clear about what you want. To achieve a good quality standard, you need to: • Choose the right factory for the product. • Be clear and concise about your expectations. • Communicate regularly and constructively. • Develop a good working relationship. Applying a standard • Once production starts, visit the factory after cutting and when the first garments have just gone onto the machines. Get the factory to tell you when they are close to finishing the first one so that you can go and check the quality. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 31 • Visit the factory regularly while they are producing for you – even if you only have a cup of tea with the boss. It is so much easier to achieve what you want if you have a good working relationship with the factory. • If you don’t like something the factory is doing, tell them right away and then listen carefully to their response. They may have a really good reason for doing it or they may not even be aware that it is happening. They may also have ideas about how to overcome a difficulty or they may just not ‘get it’. • Nevertheless you need to keep up-to-date with what they are doing so that if necessary you can quickly make changes. • Use the combined Specification Sheet/Quality Control Checklist to tick off the making features that you specified to the factory earlier at the sample stage. If there are discrepancies, record them in the comments box and get the factory to acknowledge the discrepancy, ideally by initialling the comment, to signify their awareness of the situation. Troubleshooting Fabric issues: If the factory reports fabric issues, it is vital that they are dealt with promptly. If they are laying up the fabric and encounter problems (shading, flaws, shortages etc.) the first thing to do is find out whether the fabric is usable or not. • The factory may be anxious to continue cutting - they will not want their cutting table blocked while the issue is resolved - but be careful to personally check that the problem is marginal before you let them carry on. • Don’t forget that if the fabric is cut or laid up and then found to be unusable, the fabric supplier is highly unlikely to replace it or compensate you. It is usually too late to claim for fabric problems if the garment is already made. • There is no better way to see the problem than to visit the factory yourself. • If the factory is cutting out damages then ensure they keep the cut-out pieces safely, as the fabric producer will want to see them if you are claiming compensation. Unsatisfactory garments: • If the garments are not coming up to your expectations then how do you deal with it? If, despite your clear instructions, constant communication and frequent visits, the production is not going to meet the retailer’s standards, what do you do? • The first thing is to get the factory to acknowledge the issue. Unless you can both agree that the problem exists in the first place, you will not be able to solve it. • Ask the factory how to fix it. • Get more time from the customer so that you can give the factory a reasonable timeframe to work within. This is particularly important if the garments need major surgery. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 32 • Get the factory to rectify one sample so that there is a standard to work to. • Again, visit frequently to ensure consistency. Resolving a dispute In the eventuality that your troubleshooting efforts have failed then you are in the difficult position of having to resolve a dispute. You have bought and paid for the fabric and trims. You have incurred expenses producing patterns and visiting the factory and the order is still in danger of being cancelled because even if the issue can be rectified it might be too late for the customer. Obviously you need to avoid getting into this position in the first place, but now you’re in it what do you do? Your options are limited: 1. Negotiate with the factory and customer to achieve a mutually beneficial compromise. 2. Sue the factory for the costs you have incurred and lost gross profit. 3. Write off the garments, the situation and start again. It may well be a cliché but, when it comes to garment quality, it is definitely true that ‘prevention is better than cure’. The knack of having no, or few, quality issues comes down to the key points outlined below: • Work hard to build a relationship. • Be clear about letting the factory know what you expect in the way of quality and logistics. • Communicate frequently and in person at the factory. • Be up-front and prompt about voicing any concerns. • Give the factory feedback. The next page shows the quality control checklist. It has been designed so that you can use it as many times as you like – simply make a photocopy of the sheet for each time you want to use it. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 35 Unfortunately in most cases the manufacturer’s skill and proficiency is only really made clear once production has started. This can end in high costs for both the designer and the manufacturer if there are production problems and the garments need to be re-made. In addition there are sometimes discrepancies between designers and manufacturers in terms of what each considers a ‘luxury garment’, depending on the knowledge and experience of each party. It’s not just emerging designers that struggle with sourcing a manufacturer; many established designers also find it difficult to source a production unit in the UK that can meet an increase in demand or grow with them. For designers who are more established, producing larger order sizes can be a problem, as many of the UK’s high-end manufacturers are small operations. Designers don’t always know where to go to find a factory that can produce larger orders. Often they will end up continuing to get sampling done in the UK, but will send production overseas. Currently there is no single directory, either print or web-based, that has a comprehensive list of high-end manufacturers. Likewise, for those manufacturers that are actively seeking new designers, there is no obvious place to go to find them. The situation is made worse by the reluctance of designers to share contacts with each other. In reality the sharing of contacts is mutually beneficial to designers and manufacturers alike. If a manufacturer doesn’t have sufficient clients, they might be forced to close, which ultimately doesn’t help any of the designers. Top solutions: • Database of manufacturers, including details of specialist skills. • IT training for manufacturers to enable them to use database, search engines etc. and create their own webpages. • Cross-sector forums/events to bring designers and manufacturers together. • Cross-Industry Factory Assessment Criteria. • Cross-Industry Quality Requirement Criteria. Relevant sections from the Fashion Toolkit: • Code of Practice. • Factory Assessment Checklist. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 36 Case study “I have designers sending me their ‘production’ orders which can be as little as 10-12 pieces across five sizes – I have to cut all these individually and the machinists only ever make a couple each so they never get used to the style. They take just as long to make as the sample but the designers still expect me to give them a lower price for production and get upset when I tell them I can’t.” Manufacturer Manufacturers and designers have very different ideas about ideal order sizes. Most manufacturers would like to be making orders of 50+ pieces, but in reality designers often order much smaller numbers (often fewer than 20 pieces). It’s therefore useful for both manufacturers and designers to understand why order sizes are such an issue for each party. Generally, manufacturers calculate garment costings on the time spent producing the sample. Production costings are based on this calculation, adjusted on a sliding scale according to volumes (higher volumes, lower cost per garment). But many smaller designer businesses only ever have small orders, so never qualify for the lower production rates, and exclusivity of the product is part of the appeal of high-end clothing. Manufacturers aren’t always aware of the market position of young designers: they are placing small orders because they are just starting out, not because they are giving large orders to overseas manufacturers. Conversely, it’s helpful for designers to look carefully at their order numbers, and to get these to work with the costing system used by manufacturers. For instance, it could be worth making a few extra garments if that volume would mean they qualify for lower production costs. They also need to be aware that many manufacturers are already forced to produce a wide range of docket sizes and juggle small orders with larger ones just to keep the workflow constant through the unit. Designers with more industry experience are often able to give a guide price. In some instances, manufacturers will work to that price, adapting the make of the garment Production volumes and costings An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 37 accordingly. Established designers are also more likely to repeat styles (for instance, in a new colourway), which means that both designer and manufacturer know what the costs are likely to be for a given style. Top solutions: • Better understanding between designers and manufacturers of their business size, commercial pressures etc. • Clear price list presented to designer at start of sampling process which outlines production costs on sliding scale. • Better analysis by designers of styles in their range plans so that they can capitalise on sales on certain styles to achieve higher order numbers. • Reduction in sizing spread. • Designers could hold ‘friends and family’ sales (often known as Private Order events), at reasonable rates, of their collections to boost order numbers. Additional information can be found in: • Resource Guide http://www.nesta.org.uk/areas_of_work/creative_industries/ fashion/fashion_toolkit/assets/features/resource_guide An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 40 Case study “Buyers demand 30-day payment terms, my fabric mills are pro-forma payment and the manufacturing units are cash on delivery – sometimes I can be months in the red at the bank – I just don’t know how many seasons I have to sustain this for.” Designer Many designers find it difficult to obtain any sort of credit agreements with manufacturers, and this puts a massive strain on the financial part of their businesses. Cash-on-delivery is the normal arrangement with UK manufacturers, compared with Italy, for example, where it is usually 30 days, even if it is a new client. When credit is given in the UK, this is usually limited to 7-10 days and is almost entirely dependent upon an established relationship between the designer and the manufacturer, which usually takes several seasons to develop. But even this is no guarantee of credit – some larger design companies have ongoing relationships with manufacturers, and still don’t get credit. The current unstable economic climate has made many manufacturers very wary of giving credit to any companies. Manufacturers also feel that some young designers mismanage their finances – spending large sums of money on shows, but not paying for goods on time. For many designers, payment of production costs is way down their list of priorities, so they end up using credit cards, or expensive finance agreements, to pay for production at the last minute. Better planning could help prevent this. It’s also helpful for designers to understand why UK manufacturers can be reluctant to give credit. They usually pay their staff on a weekly basis, so need constant, steady payments rather than large sums at the end of a season. Manufacturers themselves often find it very hard to get credit from banks, and most have had the experience of getting ‘burned’ by designers who have collected goods and never paid for them as their companies have liquidated. For small manufacturing units, perhaps with fewer than ten machinists, a late payment can mean the difference between paying staff and having to Finance An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 41 let staff go. Obviously, this impacts negatively on the whole sector as it means there are even fewer places for designers to get their garments made. Top solutions: • Designers need to plan large, regular seasonal payments into their cashflows in order to be prepared for them. • Designers need to stick to agreed payment terms and if not possible then communicate this as soon as possible to the manufacturer. • Both Designers and Manufacturers need access to solid financial advice. Relevant sections from the Fashion Toolkit: • Code of Practice. • Factory Assessment Checklist. • Production Management. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 42 Case study “I have placed my production order, sent all my fabric and trims to the factory and haven’t heard anything from the manufacturer for the last week although I have been trying to call them – it’s like radio silence and I’m really worried. This is my whole season at stake and I feel like there is nothing I can do.” Designer Contracts are not widely used within the sector. Although many designers and manufacturers don’t feel that they are necessary, a written contract will become invaluable if a dispute does arise. For instance, if issues such as ownership of goods and terms of payment can be set out before the work starts, it is less likely for to be confusion and ill-feeling if a problem subsequently arises. Terms and Conditions can also agree delivery dates and agree discounts for late delivery, which helps ensure late delivery is less of a problem. Late delivery is a common problem, and this can damage a designer’s relationship with customers. Although there are sometimes clear reasons for a delay (e.g. changes to the pattern, late delivery of fabric or components), designers sometimes are not even sure why the delay has occurred. Many small designer businesses have had their order ‘bumped’ when a manufacturer gives priority to a designer with an order of a higher financial value. If both parties have already agreed the Terms and Conditions of their working arrangement then dispute resolution can be much more straightforward. However, it can sometimes be difficult for smaller designers to get manufacturers to sign written agreements. Companies that do make use of contracts say that they have rarely had reason to actually refer to them in a dispute, but it helps to keep the relationship professional and businesslike. If contracts are to be effective, there needs to be mutual agreement Terms and conditions An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 45 time for larger dockets. So it is in the interests of both parties to stay professional about booking space and for all designers to keep their factories informed of any changes as it affects the industry as a whole. Top solutions: • Better communication between designer and manufacturer on order timelines. • Buyers to understand importance of placing orders early enough to allow for production. • Booking/production online reservation system. Relevant sections from the Fashion Toolkit: • Code of Practice. • Production Schedule. • Critical Path Management. • Production Management. An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 46 Case study “ … we often get patterns with pieces missing, patterns that don’t correspond to the toiles, samples with labels all over them that we then have to amend on the pattern before we can start the production docket…” Manufacturer Both designers and manufacturers report that problems concerning patterns frequently disrupt the production process. One of the most common problems is that patterns sent do not correspond with samples or toiles. This tends to be the case when adjustments have been made to the sample but not carried through to the pattern. Confusion is most likely to arise when there are lots of notes given explaining the amendments, without the sample reflecting those changes. Pattern discrepancies often arise when too many different people work on them (freelance pattern cutters, interns etc.) with no one single person responsible for checking the patterns before they are sent to the factory. Many manufacturers feel that they are simply left to resolve these pattern issues – although most point out that they will charge designers for this additional work. In most instances designers are happy for trusted manufacturers to make these amendments. However, where there is no established working relationship, this can be more problematic. Other common issues with patterns include openings that are not large enough and incorrect patterns being sent for grading, resulting in all grades being incorrect. Problems like this cost time and money to rectify but are easy to avoid. Top solutions: • Rigorous checking of patterns prior to them being graded and sent to manufacturers. • Designer/production manager to look at pattern together with manufacturer prior to the start of production. • Inclusion of measurement specs for production. Relevant sections from the Fashion Toolkit: • Code of Practice. • Garment Specification. • Production Schedule. Patterns An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 47 Case study “I placed my fabric order with a mill over 60 days ago and got a confirmed delivery date from them and it’s now seven days after the delivery date and the mill is telling me that it’s going to be another seven days… my manufacturer has already given my production space to another designer as they can’t hold space for me any longer.” Designer Many high-end designers source their fabrics from specialist mills in Italy, but late deliveries from Italy are a very common experience. This has a knock-on effect on the whole production process and in many cases there is pressure from the manufacturer when it is not technically the designer’s fault. Designers need to be aware of working practices in Italy; when mills are closed, when there are public holidays, and so on, as this can have an impact on when orders can be shipped. Mills will tend to prioritise larger orders from international companies, so small orders can then be affected. Knitwear producers have similar experiences as designers often source their yarn from Italy. Digitally printed fabrics bring with them particular problems. Designers are finding that the first batch is often a write-off as the colours are incorrect. White marks on the fabric and off-register printing are also problems, rendering a fabric unusable. The fabric then has to be reordered, which costs both manufacturer and designer money and time. Fabric choice needs careful consideration as a fabric that is very delicate or requires a lot of manipulation (i.e. block fusing or sewing with tissue) can make production slow or raise unexpected problems. Manufacturers often misjudge the time it takes to work with more delicate types of fabric such as silk or fine jersey when they are not used to working with it. Designers need to be wary of placing fabrics with units who have little experience or the suitable machinery for producing particular fabrics, but this can be avoided by visiting the factory before placing the order. Fabrics often arrive direct to manufacturing units where the designer then relies on the manufacturer to check the fabric quality and colour. This is can be a problem as designers and manufacturers may have very different tolerances for fabric quality. Designers sometimes return to find that the whole docket has been made in a fabric that is faulty or Fabric and yarn An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 50 Case study “I know that we should be doing Quality Control checks on all the garments that come out of the unit but I don’t really know what I should be looking for… is there anywhere I can get a checklist that I can use together with my manufacturing unit to make sure we are both working to the same standard?” Designer Quality Control (QC) is incredibly important, but it needs to be applied rigorously throughout the industry by both designers and manufacturers in order for the standard of products to be maintained. Buyers are not happy about garments being delivered to stores that are faulty, and the reputation of a designer will be damaged if this happens. To make matters worse, at this point it will usually be too late to return the goods to the manufacturer, so the designer is left with faulty stock and a stockist who is short of garments. However, if QC checks have been carried out throughout the production process, such problems are usually avoidable. Good QC practice is when a designer or their production manager visits the factory frequently during production. Although some designers may be concerned that this is time-consuming, it means that any QC issues arising can be rectified during the production process rather than at the end when it may be more difficult to resolve. The question of where garments are QC-ed once they have been completed can also become important. Some manufacturers will take the approach that once the garments have left their premises, they are no longer their ‘problem’ and may be unwilling to do further work. Clarification of this may be necessary for dispute resolution and so it is useful for this to be discussed before production begins. Quality control procedures An Alliance of four key partners working together to support the UK’s high-end designer manufacturing sector 51 Top solutions: • Creation and application of a standard. • Clear discussion of responsibility for faulty goods if no Terms and Conditions have been signed. Relevant sections from the Fashion Toolkit: • Garment Specification. • Production Management. • Quality Control.