Taking shoes as an example, in addition to HIMAX's own production plant, HIMAX will use at least three production lines for subcontractors. This creates flexibility in production planning. Manufacturers and material suppliers are located in southern China, which is probably the largest shoe material and production region in the world. This caters to the flexibility to increase or decrease order capacity. Different common fabric / leather qualities can be stocked during declining orders for future use. These qualities are always in demand, so the risk of temporary storage in the warehouse is minimal. This will lead to an agreement between the material supplier (shoe manufacturer) and project leader HIMAX.

 

Some shoe factories produce up to 200,000 pairs of shoes per month, but it is not wise to calculate at the highest output. In order to maintain flexibility as orders rise or fall, a certain amount of capacity must always be reserved for unknowns. This will allow for small or infrequent orders. Good partnerships are built on the ability of manufacturing partners to produce high and low volumes. Many global brands of Himalayas have been in low-volume production in terms of marketing or promotion projects. These small orders have not affected normal production. Then there are the high and low season factors that every manufacturer will experience. HIMAX and its shoe supplier network are accustomed to fluctuating quantities, and when customers require them to complete special tasks and tasks involving a lower number, they also use these networks. If the order suddenly becomes unexpectedly large, rather than at a pre-recommended quantity, a subcontractor qualified to support production and fulfill the order will be deployed. Can be used for sewing uppers or printing labels. Quality control is not adversely affected because subcontractors are at arm's distance and this situation is not uncommon. HIMAX and its subcontractors have extensive experience with this.

 

Preparation for commissioning

 

Since China will be a large manufacturing country, there is only one major problem that affects delivery time. CLNY (Chinese New Year) customers need to understand what happened before and after this holiday.

 

Before the founding of the People's Republic of China, large-scale movements of travellers across China. Workers leave the factory 10-14 days before the new year to avoid being trapped in an overcrowded transportation system. From a planning perspective, it is wise to ensure that production and order deadlines for delivery should be about three weeks before the actual CLNY date.

 

There is a less chaotic trend during this period after CLNY, because people who travel will leave home and work on different occasions. However, from a planning perspective, it is wise to use a 3-week standstill after CLNY day. In short, this means that China's production facilities will be in semi-operational state for two weeks before and two weeks after CLNY. They will be fully operational 3 weeks before and 3 weeks after CLNY Day. They will also be completely closed for at least a week, in the middle of CLNY. CLNY times vary, but usually between mid-January and the first week of February. This is easily found on Google or similar platforms.

 

As for the order, it is recommended to place the order before CLNY. The production materials can then be ordered, stored in a warehouse, and worked three weeks after CLNY. If there are no orders before the holidays, there will be a waiting period of up to one month before the materials arrive.

 

With the exception of CLNY, the control and monitoring of delivery time is secure. HIMAX and its subcontractors have a production capacity of appx 120,000 prs / day, producing technical footwear such as safety shoes and waterproof outdoor hiking boots. This sets HIMAX apart because 90% of other single manufacturers cannot provide such capacity.

 

From the day the order is issued to the day the container can be loaded, the normal delivery time is 90-100 days.

 

The lead time for raw materials is 20-25 days. (Of course it depends on the material)

 

5-7 days of cutting

 

7 days printing, labeling, etc.

 

30-day stitching also depends on the complexity and quantity of the first half

 

Assembly 10-15 days (cold cementing process)

 

Internationally accepted environmental agreements between shipping companies have reduced the speed of container ships from 4 weeks to 6 weeks (while some shipping companies are trying to reach 5 weeks of transportation).

 

Together with 3 days of customs clearance and another 7 days Leidos Supply Ltd door for inland transportation, we have about 7½ weeks of shipping.

 

When planning for unknowns, it is always recommended to add extra space. If the manufacturer has an order on hand and confirms that the sample is clear, the clock will start ticking according to the schedule above. If the order is unclear, uncertain, or changed after placement, it will of course affect the time schedule. A pre-planned order, the correct quantity is of course the best order, and will enjoy all the benefits of all production plans that have happened before the order.

 

If the order is much larger than expected, a subcontractor will be deployed to address this issue as described in the risk management section.