A new DTC shoe brand is dealing with delays in production and we need to ensure on-time delivery by discovering what the issue is.
This analysis was conducted in four parts to uncover insights with consideration to time needed on the component, product level, season, and overall levels as well as based on product line type (A, B, C, D). Based on a review of the data:
- It is clear that there were process challenges at the factory that caused delays on more complicated tasks such as altering the standard rubber composition (D). It is suggested to consider segmenting product style D to a separate planning/demand timeline given the low quantity and the high lead times required that will likely affect the efficient and timely deployment of inventory to customers.
- It is also suggested to conduct financial modeling to determine at what rate of comparative quantity between A-C and D keep/ return to 1 shipping drop.
- Additionally, the average lead time remains relatively stable across several seasons, which suggests that other than the processing time required for complex products, additional delays are likely to be due, in part, to internal causes. There is a potential to dive deeper on the internal size to observe our processes and look for opportunities to streamline.
- Finally, the small size of the shipments combined with the high delay impact creates concern. The increasing sku count could create greater risk to delivery times if waiting for the completion of the special edition footwear.
Consider splitting the current shipment timeline from one large batch monthly to one batch monthly of core and seasonal styles, while offloading special edition drops to once every two months to align with development time. This will reduce risk of these products affecting the delivery of the entire batch. In addition, if financially feasible, it could make production more agile.
