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2015 TOCICO International Conference

Transforming Businesses Track


Silverio de Souza
SILVERIO DE SOUZA
Engagement Director
Goldratt Consulting, Brazil

Replenishing Fast Movers in MTO
September 9, 2015

The fashion clothing market is extremely dynamic and has many products with very short life cycle. This scenario makes many products have such low sales that fail to sell or the first production batch. Even when this batch is very small for the industry, thus generating large obsolete inventory accumulation in the fashion point of view. While items that sell more than the initial forecast will be quickly in stock out, causing significant loss of sales and lack of real demand for this product.

Identify which products sell significantly more to replenishing and ensure the availability, generates perception of value by the customer and significant increase profitability. The TOC solution to meet this important customer need passes to put 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 is common to MTA solution not be 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 viability of raw materials and generating orders in MTO that take advantage of short lead time industrial 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 team super-fast.


SILVERIO DE SOUZA is Engagement Director at Goldratt Consulting in Brazil. He has experience with industrial, project management and business consulting. Working over the last eight years with Theory of Constraints implementations in the areas of production, supply chain, retail, project management and finance and Viable Vision Projects in Brazil and other South American countries. Executive MBA COOPEAD and Master in Project Management – Federal University of Rio de Janeiro – UFRJ, Certified in Supply Chain Logistics – TOCICO, PMP – PMI, Graduated in Business Administration.

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