Up Close is Sourcing Journal’s regular check-in with industry executives to get their take on topics ranging from their company’s latest moves to personal style. In this Q&A, David Kalman, CEO of Trillora Packaging Solutions, discusses what Toyota can teach the fashion industry about averting disruption and how his company is building a more customer-centric culture.
Which other industry has the best handle on the supply chain? What can apparel learn?
The automotive industry, particularly Toyota with the Toyota Production System, has the most well-run supply chain of all the industries I have encountered. Toyota’s focus on eliminating waste, maintaining minimal inventory while ensuring smooth production flow and building long-term collaborative relationships with suppliers rather than simply seeking the lowest cost ensures they maintain vehicle quality and availability despite global disruptions — save for the tsunami several years back.
There are several aspects from the Toyota Production System that could be beneficial within the apparel industry: Find ways to enhance demand-driven production, implement supplier development programs, create and foster cultures of continuous improvement, use value stream mapping to reduce product development cycles and drive for quality at the source versus at final inspection.
What should be the apparel industry’s top priority right now?
The apparel industry faces a fundamental tension between speed, quality and sustainability, but if we stick with the Toyota example and lean principles, these don’t have to be mutually exclusive when approached systemically. I would encourage the industry to be thinking holistically about how it balances the needs of shareholders, consumers, retailers and the planet.
What innovation or development holds the greatest potential to improve operations in the apparel and textile industries?
At the risk of being overly cliché, artificial intelligence-powered demand forecasting and trend prediction that analyze social media signals, weather patterns, economic indicators and real-time sales data could enable much more accurate demand sensing. This would allow companies to produce closer to actual demand rather than relying on seasonal forecasts made months in advance.
