Case Study: Prato Wool Texitle Industry

Introduction

• Prato region accounted for more than 50% of Italian wool textile production.

• Supplied medium quality wool fabrics for women wear.• Skilled workforce with modern technology and short

production runs.• Most firms were supplier and buyers at the same time

without dominating each other.

Case Facts

• Localization of the industry facilitated JIT to each stage of production.

• Supply chain was linear as each batch of production passed through 5-6 Prato firms till finished product.

• Pull system enabled low inventory holdings in different stages.

Case Analysis

• Market controlled by impanattori’s who outsourced the entire production through sub-contracting the entire production, fabric design, material purchase & logistics.

• Matched & Coordinated Supply with the local & global demand.

• They gradually controlled the system and became market makers.

• Product variety, geographic concentration of buyers-suppliers & reduced production & logistics costs has attracted customer from across the globe.

Conclusion

• More emphasis was given through modern technology on quality, design, reliability, continuity of supplies and punctual delivery.

• The supply chain model is responsive to the trends and changes in the market.

• Trust and interpersonal ties gave an edge to rush orders and priority to them gave future deals and special contracts to firms.

• Perfect example of localized supply chain benefiting the wool industry to compete the global market.

• Key to Success was short production run, variety of fabrics,

making it ideal for fashion segment.