Design to Cost

Controlling Development CostsA holistic ApproAch to

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One of the biggest challenges for apparel companies is to pinpoint the exact costs when making

garments. Often this isn’t apparent until it’s too late: after fabric has been ordered, printed or cut. At this point, there’s little room for maneuver to compensate for wasted material or save a design that turns out to be too expensive or complex to produce. In order to control costs, companies need visibility into their development process at a level that some lack.

This lack of visibility is rooted in a fundamental disconnect between the creative and manufacturing stages of a garment’s development life cycle. Bridging this gap requires

that manufacturing concerns be brought into the picture earlier in development, as early as the conceptualization stage. The sooner companies are able to take manufac-turing constraints into account during collection design and development, the more successfully they will be able to develop solid designs that will appeal to consumers within controlled lead times and that meet the targeted price point and quality levels. With more accurate information about estimated fabric consumption and pre-production planning from the start, companies gain control over the entire development process, which means they can invest in materials, choose suppliers, and organize production in line with business objectives.

W h a t y o u D o n ’ t k n o W C a n C o s t y o u b i g

What ’s in a PR iCE tag?

Behind an ordinary price tag lurks a multitude of factors that influence garment cost. Direct and

indirect labor costs, overhead, equipment loans, purchase orders, production methods and retail promotions are just some of the things that eat away at margins. But the single most influential factor is fabric, which accounts for up to 50% or more of a garment’s cost. The cost of fabric itself is also subject to a variety of influences: the number of different fabrics used in a garment for shell, lining and other components; the number of colors, complexity of yarns, weave patterns or stitches; the sizes, colors and quantities of each garment needed in the retail space; composition of fabric, fluctuations in raw material prices; and the quality of the fabric itself.

Considering the impact of fabric choices on final garment cost, it’s obvious why apparel companies would be smart to find ways to exert better control over these factors and try to foresee as accurately as possible the impact of different choices surrounding material consumption.

Today’s fashion market demands that companies create more collections faster, but still maintain consistently

fresh, creative designs. Much of what makes a garment unique is in the style, fabric and fit—and it’s also where most of the cost lies. Many companies experiment with different textiles to craft compelling designs, and their choices have a strong impact on final garment price. Unfortunately, estimating fabric consumption for multiple fabric designs across size ranges can quickly become complicated. With speed to market weighing on design and development teams, estimating accurate material quantities can be a real nightmare and, without the right tools, nearly impossible.

With fabric easily accounting for up to 50% of garment cost and often more, it’s essential that companies get a handle on fabric consumption or they have no hope of staying within their target margins. The best way to do this is by anticipating factors that could influence fabric cost before orders are placed or fabric cut. A Design to Cost approach can provide this invaluable visibility into the true cost of collections, by combining smart technology and an efficient process to integrate production constraints at the conceptualization stage.

samPl ing: thE imPoRtanCE of Planning ahEaD

The sampling stage serves two main purposes: estimating cost, and verifying style and fit to

ensure quality. Fabric cost is subject to many variables, and sampling allows an estimation of this cost in the context of production. How manufacturing options are organized will have a direct impact on the time and cost associated with the final garment; the production sample stage allows fabric efficiencies to be analyzed according to different size combinations and spreading and cutting processes to be tested to optimize production workflows. Sampling is also the moment when the quality of garments in different sizes, variants and colors is evaluated. Revolutionary 3D virtual sampling now offers companies the possibility to view style and fit elements together and in all sizes, onscreen, without cutting a single yard of fabric.

Given the importance of sampling, it’s in a company’s best interest to optimize this process by leveraging design and technical information to evaluate production conditions as accurately as possible in order to understand their impact on price.

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So how exactly do companies bridge this gap? How do they foresee the final phase when things are still being

defined? The answer lies in connecting conceptualization, development and production by putting design, pattern design and silhouette development, and pre-costing to work together. Linking these crucial phases offers the possibility to “see” products under real production conditions before decisions are made, enabling more accurate cost estimates, wiser material usage, and faster time to market.

But until recently, it hasn’t been easy to make these connections. Traditionally, marker making and sampling were carried out manually after the design stage. Imagine: a marker maker bent over a cutting board with cardboard, scissors and a few yards of fabric was the norm until computer-assisted methods arrived to make pattern making, placement and material estimation faster and more accurate. But for some highly complex and visual patterns, like “engineered” prints, the old-school paper cut-outs and a table of fabric are still used. This time- and space-consuming method achieves a less-than-perfect estimation of material costs. With fabric contributing so much to the final cost of the garment, that’s a very big risk to take. Companies shouldn’t have to rely on inefficient methods to analyze such an important factor in their overall success.

C o n n E C t i n g t h E D o t s

Fortunately, advances in apparel development techno-logy have made available an altogether novel method for

accurately estimating material. A Design to Cost approach combines advanced technology with a smarter process to support more innovative designs and deliver more accurate material estimations from the design and development phases and, as a result, more decision-making power to apparel companies.

The Design to Cost approach puts technology like intelligent pattern making, 3D sampling and automatic marker placement at the service of design and development to ensure an optimum production scenario. Information about fabric

design—a repeat, for example—coupled with automatic marker processing generates more cost scenarios faster than is humanly possible, giving companies the ability to visualize the direct impact of their choices on fabric consumption before a single sample is cut or fabric printed. They can also test random factors or worst-case scenarios that could hinder productivity in order to anticipate and prepare for any potential slowdowns. This visibility contributes to more informed decision making, as companies can see a detailed cost breakdown of garments in development and use that specific information to inform their choice of materials, suppliers and process, instead of relying on past seasons or approximate estimations from suppliers.

D E s i g n t o C o s t

intEll igEnt Pat tERn mak ing

Pattern making has come a long way since the days of cardboard cuts out, tissue-thin paper and a pair of

scissors. Intelligent pattern making takes now-standard digital pattern creation to a new level by incorporating smart links between pattern pieces that reduce repetitive manual actions and provide more consistency throughout collection development and across seasons. The result is more consistent fit and final product quality, as the sloper or basic block is more closely respected.

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A Design to Cost approach will vary in the details to adapt to the needs of each individual company’s development

process, but the essential concepts of visibility and flexibility remain at the heart of any project.

A process “loop” is built into product development in which different scenarios are evaluated to determine how the style, silhouette and fabric design of each will impact production efficiency and ultimately, profit margins. Several

kinds of apparel technology and apparel expertise support this process, building in efficiency from the start: textile design software simplifies fabric development; intelligent pattern making and 3D prototyping cut down on pattern and sample development time and cost (digital samples don’t require any fabric); and automatic marker-making software accelerates and enhances material consumption calculation and provides a way to evaluate different “what if” production scenarios, which are impossible to perform manually.

h o W D o E s i t W o R k ?

The beauty of Design to Cost lies in the harmony it creates between design, development and production.

This is the result of process coupled with technology, not technology alone. For example, visualizing marker layouts on fabric directly on screen makes it easy to modify and experiment with fabric design to arrive at an affordable solution before anything has been ordered or printed. This potential to revolutionize certain steps of development and enable new ways of working can vastly improve day-to-day operations and confer immediate financial gains through optimized material consumption.

EnGInEERInG PROFITA company known for its engineered print dresses in simple styles decided to adopt a Design to Cost approach after too many years of inefficient marker layout. The company was growing and there wasn’t time to spread fabric out on the cutting table for marker placement (which is how they’d been doing things for 20 years) or room for error: margins had to be calculated down to the penny. The company had been designing their fabrics with fashion-specific software and

developing patterns and markers with dedicated programs as well. What they were missing was the link between design and production. They had no way to test their marker layout on fabric before it had been ordered and cut to evaluate different cost scenarios, which meant a lot of cros-sing fingers and hop-ing designs would be affordable.

E m b E D D E D i n t E l l i g E n C E

“The background feature in Diamino revealed that a simple change in the print design—in this case reducing the print width by 5cm—resulted in a marker placement with an efficiency twice that of the first placement.”

SEEInG IS SAvInGA well-known lingerie brand in Europe prides itself on using delicate lace and embroidery. It’s what defines them and sets them apart from the competition. It’s also where the majority of their costs lie. The biggest challenge is laying out intricate panty and bra bands on scalloped-edge lace in order to maximize use of these costly materials. Until they began using a Design to Cost approach, the company was essentially laying out pieces blindly: using reference lines and points alone in their marker-making program, they estimated where the pieces would lie on the fabric. This method was rife with human error and lost time. With Design to Cost, they scan a fabric into design software and then import it into marker making software where they can easily see the lace in all its fine detail and experiment with marker layouts to achieve the best material efficiency and even anticipate potential manufacturing issues.

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For companies that don’t design their own fabric, Design to Cost still offers significant advantages early

in development by enabling them to visualize layout on-screen and maximize material efficiency before production

is launched. For companies that have been doing this by hand, human error is a big risk that can have serious financial repercussions, especially when working with high-cost fabrics.

s o l v i n g P R o b l E m s b E f o R E t h E y C o s t m o n E y

“By trying out different placement scenarios in the marker space, it is possible to maximize efficiency and achieve a more aesthetic design. The lace lines up more evenly on the left-hand figure and the efficiency is better, which has a significant impact on price when dealing with expensive laces.”

Then they discovered Design to Cost. now they are able to import their fabric designs directly into their marker-making program and see markers laid out virtually, before ordering fabric. This allows them to test different layout scenarios and get design to tweak fabrics or product development to adjust patterns if needed before placing orders. The result is more control over cost thanks to more accurate material estimation made possible by enhanced communication between design, pattern making and the marker team from the very beginning of collection development. An added benefit is improved communication with suppliers, who now receive visual pattern layouts that correspond to the prints, which provide yet another measure of control over material consumption.

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“By testing different simulations, it’s clear that re-engineering the print (bottom image) results in a far more efficient placement than the original design (top image). With Design to Cost, this is possible onscreen, immediately, and delivers quick results for important decision making.”

vISUALIzInG BETTER SUPPLIER RELATIOnS A French casual wear company began using automatic marker placement in their design headquarters in Paris to evaluate material cost before sending orders to their supplier abroad. Until then, they’d relied on data from previous years and the supplier’s estimation for the current season. Without any visibility into cost details, the company had no way to evaluate their supplier’s proposal. With a Design to Cost method, they were able to do their own very precise material estimations and use them to negotiate better prices and reduce wasted material. They could even send visual layouts to make communication easier and reduce misunderstandings. It also held the supplier accountable for their actual material consumption.

Material estimations are not only important to control the cost of each garment; they can also be used to

estimate total fabric order quantities. Simulated production markers offer a way to validate the amount of fabric suppliers are consuming, which allows fashion brands and retailers to identify and address any discrepancies between their fabric estimate and what suppliers say is required for production. This gives companies clear, reliable information on which to base negotiations with suppliers. It can also

help in combating the uncomfortable problem of certain unscrupulous suppliers pinching fabric for their own use. On the other hand, the capacity to accurately estimate material usage can help suppliers stand up to hard-bargaining brands and retailers by enabling them to clearly show where costs come from. By presenting a detailed breakdown of costs, suppliers can justify their prices to brands who insist it can be done cheaper.

b R i n g i n g a C C o u n t a b i l i t y t o s u P P l i E R R E l a t i o n s

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A Design to Cost approach enables companies to maximize the value of design and development

operations by injecting different production constraints at important development milestones to test multiple scenarios and see their consequences on price. Design to Cost also allows companies to leverage accurate, real- time design and technical information. This relieves them from having to rely on past data or supplier estimations that could lead to over– or under–ordering fabric or

inaccurate garment price calculations that often result in last-minute style cancellations for budget reasons.

The result is a more efficient and informed development process that draws on production details early in design and development to empower companies in their choice of resource investment, both in terms of materials and supply-chain partners, so that they can meet business objectives and continue to deliver the products their customers expect.

C o n C l u s i o n

With 40 years’ experience in the fashion industry, Lectra understands the unique challenges faced

by fashion and apparel companies. Lectra’s Design to Cost approach combines advanced fabric and apparel design, pattern-making and prototyping technologies with enhanced marker-making solutions to provide companies with control and visibility when making design, development and production decisions.

Lectra’s design solution is an effective way to develop fabrics (knits, prints and wovens) and styles, while intelligent pattern-making technology makes it easier and faster than ever to create and maintain graded patterns to ensure accurate fit across entire collections. Silhouettes can then be visualized as virtual 3D prototypes to cut out unnecessary physical samples and more closely link design to development, thanks to an easy-to-share visual interface. Automatic marker-making technology combined with fabric visualization completes the design-to-production cycle by enabling fabrics to be imported directly into markers, where different material-choice scenarios can be tested to determine the best production conditions or troubleshoot potential issues before they arise.

By linking the different parts of a fashion or apparel development process, companies can not only build a product with more exciting designs, higher quality and more accu-rate fit, but they can also better control costs and reduce time to market. These are the minimum improvements necessary to be competitive in today’s fashion market. However, making them often requires stepping back and examining the overall development process, how information is exchanged and what resources are available.

Optimization can have a significant impact on business performance, but requires expertise to be carried out. Lectra Design to Cost projects include an initial scoping phase to understand objectives and define macro-level improvements to determine appropriate solutions. Our goals typically include streamlining development, improving information sharing and leveraging expertise across the organization. These objectives are met with a combination of industry expertise and advanced technology. Ensuring that benefits continue long after project implementation is a very important part of any Lectra project, which is why we develop long-term relationships with our customers to ensure continuous improvement.

W h y l E C t R a ?

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With 40 years’ experience in fashion and apparel, Lectra’s mission is to provide a complete spectrum of design, development, and production solu-tions to confront 21st-century challenges. From first creative spark to final product, our professional services address an end-to-end process. We support the day-to-day operations of our customers in over 100 countries for around-the-clock process optimization. From fast fashion to luxury to ready-to-wear, Lectra’s 23,000 customers in markets as diverse as casual, sports, outdoor, denim, and lingerie represent every development and sourcing model imaginable. Beyond suppliers and manufacturers, they are the brands you love and the stores where you shop.

Every Lectra Fashion Project benefits from Lectra’s 40 years of fashion expertise in the form of consulting, training, and ongoing support. Lectra’s consultants evaluate customer needs and process to propose appropriate solutions to support their unique business goals. Contact one of our global offices today to find out if a Lectra Design to Cost Project is right for your business.

About LectrA

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coNtAct LectrA

Lectra has offices worldwide. Please visit www.lectra.com for more information.