The critical importance of manufacturing excellence

Unprecedented volatility, increasingly fragmented order books and a move to on-demand production, is driving greater complexity and margin pressure in the fashion supply chain. As brands and manufacturers respond to these challenges, driving successful manufacturing excellence programs will depend on the digital transformation of business critical processes to drive data insights that are essential to sustainable supply chain partner performance and the achievement of brand strategic objectives.

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Why change?

Digital transformation, a catalyst for sustainable supply chain partner performance

Despite investing in some form of ERP, most manufacturers still rely on largely manual methods, disconnected systems and excel spreadsheets to manage business critical manufacturing processes which have a disproportionate impact on operational and financial performance. This approach is inefficient, time consuming and unsustainable.

In order to respond to unprecedented industry challenges, and build the resilience, agility, speed, efficiency and sustainability that is critical to meeting brand strategic objectives, brand manufacturing excellence teams are working with key supply chain partners to optimise and digitize business critical processes.

Typical business benefits

The optimisation, automation and digitization of business critical manufacturing processes, drives significant, measurable and sustainable improvements in manufacturer performance, supporting supply visibility and security, and the achievement of brand supply chain objectives. Typical business benefits include:

10 − 30 %

Improvement in OTDP

2 − 5 %

Reduction in fabric cost

10 − 30 %

Increase in speed

Frequently Asked Questions

 

  • What is manufacturing excellence in the fashion supply chain?

    Manufacturing excellence is the optimisation, automation and digitisation of business-critical manufacturing processes, from design and development through method-time-cost optimisation, production planning and control, and fabric optimisation, so that manufacturers can operate with greater speed, efficiency and sustainability. It is achieved when brands and their supply chain partners work together to digitally transform these processes, replacing the manual, disconnected methods that hold performance back. Rather than treating each process in isolation, manufacturing excellence connects them into a single, data-driven way of working that improves operational and financial performance across the chain. 

  • How does digital transformation support manufacturing excellence?

    Digital transformation acts as a catalyst for sustainable supply chain partner performance. It replaces manual methods, disconnected systems and spreadsheets with digitised, business-critical processes that generate the data insights needed to drive performance improvements and meet brand strategic objectives.

  • What business benefits can manufacturers expect from digitising critical processes?

    Optimising, automating and digitising business-critical manufacturing processes typically delivers a 10–30% improvement in On-Time Delivery Performance (OTDP), a 2–5% reduction in fabric cost, and a 10–30% increase in speed, alongside stronger supply visibility and security across the chain.

  • Why choose Coats Digital for manufacturing excellence?

    Coats Digital is the software business of Coats Group plc and the dedicated digital transformation partner for the fashion supply chain. What sets it apart is the combination of purpose-built apparel software with deep, hands-on industry expertise: its solutions are designed specifically for fashion, textile and footwear manufacturing rather than adapted from generic tools. The portfolio covers business-critical processes end to end, from design and development with VisionPLM, to method-time-cost optimisation with GSDCost, production planning and control with FastReactPlan, and fabric optimisation with FastReactFabric. Because these solutions are connected, manufacturers can join up costing, planning and materials into a single way of working rather than running disconnected systems. The software is used in more than 3,000 factories worldwide, is fast to implement, intuitive to use, and is proven to deliver measurable improvements with a typical return on investment in under twelve months. For brands and manufacturers, this means a single partner that understands the realities of production and can support a complete manufacturing excellence programme, backed by training, local support and a track record of results across every major sourcing region.

  • What are the biggest barriers to achieving manufacturing excellence in the apparel industry?

    The biggest barriers are usually structural rather than technical. Most manufacturers still run critical processes on manual methods, disconnected point systems and spreadsheets, which creates data silos, version conflicts and a constant cycle of firefighting that leaves little room for improvement. A heavy reliance on ERP systems that were never designed to plan detailed factory operations widens this gap. Other common obstacles include a shortage of skilled industrial engineers, resistance to changing long-established ways of working, and fragmented order books with smaller, more frequent style changes that overwhelm manual planning. Underpinning all of these is a lack of reliable, real-time data, without which managers cannot see the true state of production or make confident decisions. Overcoming these barriers requires connected, purpose-built digital tools alongside the right skills and a clear approach to change management.

  • How can manufacturers continuously improve operational performance?

    Continuous improvement depends on having accurate, consistent data and a standardised way of working to measure against. By digitising business-critical processes, manufacturers create a reliable baseline of method standards, Standard Minute Values, capacity plans and delivery performance that can be monitored over time. Method analysis tools such as GSDCost let industrial engineers investigate each operation in detail, identify opportunities for improvement, and save approved changes as new standards, so gains are captured and repeatable rather than one-off. Planning tools provide live visibility of performance to plan, factory efficiency and on-time delivery, highlighting where bottlenecks recur. With this combination of standardised methods and real-time feedback, manufacturers can set realistic targets, track progress against them, and steadily raise efficiency, productivity and delivery reliability as a continuous discipline rather than a periodic project.

  • Which KPIs are most important when measuring manufacturing excellence?

    The most important KPIs reflect the core goals of speed, efficiency, cost control and reliability. On-Time Delivery Performance (OTDP) measures how dependably orders ship to schedule and is one of the most closely watched indicators. Factory efficiency and performance to plan show how well actual output matches planned output, while productivity tracks the volume produced for the labour invested. Standard Minute Value (SMV) accuracy underpins reliable costing and planning, and metrics such as cut-to-ship time and planning lead time reveal how quickly the operation can respond. On the materials side, fabric utilisation and fabric cost as a share of total outlay are critical, given that fabric can account for 50 to 60% of total manufacturing cost. Tracked together through digitised processes, these KPIs give a rounded, real-time view of manufacturing performance.

  • How does real-time operational visibility support manufacturing excellence?

    Real-time visibility is the foundation of manufacturing excellence because it replaces assumptions with accurate, current information. When planning, costing and materials data sit in a single digitised source rather than scattered across spreadsheets and emails, managers can see the true state of every order, capacity position and potential bottleneck as it develops. This allows teams to act before problems reach the customer, rebalancing lines, rescheduling activities and re-prioritising orders within minutes rather than days. It also supports faster, more confident order confirmation, because commitments are based on real capacity availability. Sri Lanka’s South Asia Textiles, for example, used this visibility to cut plan finalisation time from eight hours to two and reduce machine idle time from 380 hours to 100. In short, real-time visibility turns reactive firefighting into proactive, data-driven control.

  • How does manufacturing excellence help apparel brands build a more resilient supply chain?

    Manufacturing excellence builds resilience by giving brands and their suppliers the visibility, agility and accuracy needed to absorb shocks and adapt quickly. Volatile demand, fragmented order books and the shift to on-demand production all place strain on supply chains that still rely on manual planning. Digitised, connected processes allow manufacturers to re-plan capacity in real time, respond to sudden changes in demand, and keep deliveries on track even as order sizes shrink and style changes increase. Accurate costing and planning data also help brands make informed sourcing decisions and identify risks early. By strengthening on-time delivery, supply visibility and the ability to recalibrate continuously, manufacturing excellence helps brands move from reacting to disruption to anticipating it, creating a supply chain that is more dependable, more flexible and better able to withstand future uncertainty.

  • Can manufacturing excellence initiatives scale across multiple factories and regions?

    Yes. Because manufacturing excellence is built on standardised methods and connected, cloud-based software, it is designed to scale across multiple sites, countries and time zones. Standardised method standards and Standard Minute Values create a common language that holds true regardless of where a garment is made, so a method improvement proven in one factory can be rolled out consistently across others. Cloud-based delivery ensures that every site works with the same up-to-date tools and data, while central visibility lets head office compare and benchmark performance across the network. Coats Digital’s solutions are used in more than 3,000 factories worldwide, and manufacturers such as Delta Textile, with operations across several continents, have extended the same planning approach from one division to another. This makes manufacturing excellence a programme that grows with the business rather than a single-site project.

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