Why Planning Determines Apparel & Textile Business Success?
In an industry where demand can shift faster than production cycles, the real competitive advantage may not be capacity—it may be the ability to anticipate where the market is heading. For apparel and textile manufacturers, planning is often associated with production schedules, manpower and shipment deadlines. Moreover, Capacity without demand visibility can become a liability, while well-aligned planning can become a source of competitive advantage.
In this conversation with TEAM PERFECT SOURCING, Ram Suresh Kumar, COO, VTM Limited who has more than 31 years of experience in apparel and textile manufacturing highlights some important ways to sustain and manage business with profits.
EXCPERTS …
“Do not build capacity first and then search for the market. Understand the market first, project the demand, and then build the right capacity around it, argues Ram Suresh Kumar, COO, VTM Limited. With more than 31 years of experience in apparel and textile manufacturing, Suresh’s professional experience spans operations, production planning, quality, industrial engineering, factory management, automation, customer requirements and business growth.
His perspective brings together the shop-floor realities of manufacturing with the broader business questions of market demand, capacity, people, technology and profitability. His focus is on building efficient, people-centric and future-ready manufacturing organisations.
“A manufacturing business cannot grow sustainably by adding machines and manpower alone. Growth must begin with understanding where the market is going — and then building the right capacity, products, people and investments around that demand” he explains.
According to Suresh, the apparel and textile industry is one of the most dynamic and challenging manufacturing sectors in the world. Fashion changes rapidly, customer expectations evolve, sourcing markets shift, technology advances and global competition keeps increasing. “In this environment, one fundamental principle remains constant — a manufacturing company cannot build a sustainable business without planning for the market it intends to serve,” he averred.
Suresh strongly feels that even today in many factories, planning is still largely understood as production planning for instance, how many pieces to produce, how many operators are required and when the shipment has to be completed. “While production planning is important, it is only one part of a much bigger picture. True business planning must start much earlier — with market projection,” says Suresh. He further pens down the chart and explains how the planning flow look like.
The Planning Flow: From Market to Profitability
Market Projection → Product Strategy → Capacity Planning → Resource Planning → Execution → Sustainable Profitability
Suresh explains that that objective is simple: understand the demand and opportunities, choose the right products and markets, align capacity with projected demand, plan people, material, finance and technology, execute efficiently, and build long-term growth and competitiveness.
According to him Market Projection Should Always comes first…
“Market projection gives direction. It helps us understand which customers to target, what products will be in demand, what volumes are realistic, what price the market will accept and what investment is justified,” cautioned Suresh. He feels that without this, factories risk over-investment, under-utilization and financial stress.
- Connecting Sales with Manufacturing
Another aspect for successful apparel business is an integrated plan that connects market, sales, product, capacity, raw material, manpower, technology, working capital and delivery. “When all functions plan together, the organization can respond faster, reduce cost and improve profitability,” he added.
- Product-wise Planning is Critical
Suresh further decodes that not all products are same. “For instance, 100,000 pieces do not always represent the same business value. Product planning should consider SMV, complexity, fabric consumption, processing requirements and contribution margin,” he further elaborates. According to him the key question for any supplier or manufacturer should be, “What product mix can we produce profitably with our resources.”
- Capacity, Technology and Automation
Capacity is more than the number of machines. It includes manpower, efficiency, working hours, quality, material availability and management capability. Market projection helps identify where technology and automation will give the best return — whether in cutting, sewing, quilting, embroidery, RFID, material handling or warehouse systems.
- People and Working Capital
Suresh explains that generally more orders mean more material, more people and more cash. “Recruitment, training, skill development and retention must be part of the plan. Working capital planning is equally important to ensure smooth operations and financial stability,” he advises.
- Customer & Market Diversification
The biggest asset to anyone is customer, however, relying too much on one or two customers is risky. “A good plan should include existing customer growth, new customer acquisition, geographic diversification and value-added products. This builds stability and long-term business sustainability,” said Suresh.
- Regular Review and Flexibility
He also laid out instructions in terms of changing market conditions. “Market conditions can change quickly. A rolling plan with monthly reviews, supported by a simple dashboard, helps us track performance and take corrective action early. It is also useful to plan for three scenarios — conservative, base and growth,” he said.
- Planning Ends with Profitability
Ultimately, the purpose of planning is to produce the right product, for the right customer, at the right cost, at the right time and with the right margin. To conclude he said, “High production and full capacity utilization are meaningful only when they translate into sustainable profitability, without profit it really does not have any value.”
