Short Shipments Reasons & Solutions
Most of the time we fail to earn L/C value due to short shipment. Some factories could make 3% to 5% plus shipment because most of the L/C terms allow this.
- What is short Shipment ?
- Shipping less than the expected or decided quantity is called short shipment.
Loss of Short Shipment :
Due to high market competition tight prices factories profit margin is going down day by day. We get profit when we reach a certain efficiency level. Cost of the manufacturing is increasing over the year. On the other hand Order quantity is decreasing & number of PO is increasing. It locks the companies growth secretly.
- Reason & Solution of short Shipment :
- W=Wrong cutting in size ratio.
- W=Wrong cutting in shade variation.
- W=Wrong marks in garments.
- W=Wrong Measurement.
- W=Wrong Target.
- W=Weak Security
1. W=Wrong cutting in size ratio : If size wise cutting ratio is not maintain according to order qty it creates problem on packing & shipment time. Its one of the main reason for short shipment. For this type of ready goods can't ship.
Cutting Manager & Factory Head should follow up strongly.
2. W=Wrong cutting in shade variation : Shade wise cutting is a general requirement but most of the time factory suffer for this. Cutting manager should aware of this.
Cutting Manager, Quality Concern & Factory should monitor this one.
- 3. W=Wrong marks in garments : Needle mark & cut is one of the most common reason for rejection. Needle Mark only appears after wash. Due to careless handling in ( cutting, sewing & finish) unexpected spot & stains are visible in garments which is reason for short shipment.
- Establish SOP (Standard Operating Procedure) for needle usage. Needles sharpness need to check & change routine wise.
- 4. W=Wrong Measurement : Wrong Measurement happens due to lack of proper shrinkage test.
Before go to bulk cutting fabric shrinkage need to check & pattern should be adjust accordingly.
- 5. W=Wrong Target : Lack of raw material & time sometimes plus shipment not possible from production site. Wrong target also creates short shipments.
Target Qty should be calculated based on materials nature & wastage percentage & Order Qty's ratio.
- 6. W=Weak Security :Raw materials Short in-house from booking, Missing from factory/ outside in that case not possible to produce expected quantity. Some times Complete goods even finish goods missing from factory/shipping car.
To ignore this type of problem security system need strict.
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