INDIA TEXTILES LTD.: FULFILLING CUSTOMERS’ REQUIREMENt. Mahindra Parikh, Senior Manager-Commercial, India Textiles Ltd, felt doubtful about bringing down the delivery time from 60 days to 45 days, demanded by some international buyers of garments. The com- pany's manufacturing unit at Bangalore produced garments such as shirts, trousers, skirts, and blous- es for domestic as well as international customers, including Walmart, J.C. Penny, and Gap. The production process included various opera- tions such as dyeing of yarn, weaving, and process- ing. The production was organized on a three-shift basis. The company had outsourced some of the op- erations such as processing because it did not have the facility to do the processing, although it had ad. equate space. Mahindra asked the market research manager to get the information about the competitors’ delivery time for the garments. The market research manager informed him that only four out of about 100 garment (or apparel manufacturing units) were in a position {o fulfil the important purchasing criteria of 48 days delivery time and consistent product quality, company's sales and profitability goals, He leg | for a meeting of the purchasing executives ore | department to discuss how to persuade the Droces, ing units to advance the delivery so as to meet. needs of the company’s Key customers. One ot suggestions made was to offer a single iumpsin amount as an incentive for getting earlier delves The other suggestion was to give 5 percent increas in the prices as incentive, if the processing unis could deliver the material as per the company’s de. livery schedules, without any dilution in the qual However, the penalty of 5 percent would be appi. cable for any delays on delivery beyond the specified delivery dates. Mahindra also thought that some kind of incen- {We scheme should also be made applicable tothe company’s production employees, including work pan the shop floor. He thought of discussing the Production issues with the production ‘manager and inet taking UP these issues at the senior manage meeting as soon as possible, Questions 1. Do opt B0ree with the approach of Mahindra i Sting the customers’ requi 5? Explain Yor vione TS’ requirements? Exp! 2. What oth er alt fl jth the compan, alternatives are available wi