Cariaggi success case

eBIZ in Cariaggi, interoperability solves planning 

 

CARIAGGI plant

 The Italian top quality yarn producer Lanificio Cariaggi Spa struggled with production planning because of lack of interoperability with its suppliers and subcontractors. 

In 2013, Cariaggi and partners upgraded their software with an eBIZ compatible solution and achieved interoperability along the supply chain.

This enabled flexible and continuous production monitoring and rescheduling.

As result the company cut down of 95% on missed deliveries and gain 25% in the efficiency of the production planning and control.

 

 the Cariaggi success case in 1 page  

Cariaggi case overview

 

 

 

 

 

 

 

 

 

 

 The companies involved 

The Lanificio Cariaggi Spa is a top quality yarn producer in Cagli (Italy), with a turnover of about 100M€ and 260 employees (2012 figures). Its specialities are yarns made of worsted and woollen cashmere yarns, mainly for knitwear productions supplied to international top level brands. 

Ferrini S.r.l is an industrial dying company located in Torgiano (Italy) with a turnover of about 3M€ and 34 employees (2012 figures),it is a subcontractor of Cariaggi.

Lanificio Cariaggi is a key member of the IPSA Consortium jointly with Tintoria Ferrini (yarn dyeing) , Gruppo Colle (fiber dyeing in Prato) and Filatura Lama (spinning mill in Biella) aiming at innovating the supply chain with a common IT solution for eSupply Chain Execution.

caraiggi Marini 2

Computer House srl is a software house providing eBIZ compatible solution specialized in integrated solutions for the textile industry which has developed the ERP of Cariaggi.

WebScience is a company specialized in innovative projects in IT with headquarter in Milano and offices in Lecce and Treviso (Italy). It develops a supply chain integration platform for Cariaggi and IPSA Consortium in close collaboration with Fondazione Politecnico di Milano.

 

 

 

The problem to solve

Yarn production in Cariaggi features a seasonal pattern with periods in which the plant capacity is saturated and any new short-term order requires a production planning, even for outsourced operations. Delivery dates are often renegotiated depending on the needs and priorities of the market and on company's policies.

Further requirements are:

  • very small spinning lots, which result in a splitting of the production orders
  • yarn processing times which can take up to 4/5 weeks
  • rate of performance for the client over 99% (i.e.: strict compliance with delivery dates or fairly anticipated renegotiation)
  • dyeing process fully subcontracted
  • orders to subcontractors can be split in several lots for technical reasons, hence re-scheduling needs to take into account the actual status of different lots of yarn and raw material.

 

The project

A strategic collaboration was set up with subcontractors based on the following points:

  • a quota of the subcontractor plant capacity was reserved for Carriaggi 
  • management of orders-rescheduling through direct link between the invovled parties' (independent) schedulers, without human intervention
  • orders are managed through electronic data delivered directly to the right operators
  • use of standard electronic documents for data exchange between the ERPs (Enterprise Resource Plannig) of the concerned companies
  • configuration of a B2B platform for digital data exchange and supply-chain integration, with a web interface to complement machine-to-machine data flow and reporting any process mistakes to the right operators 

 

This allows Cariaggi to see the status of orders both in its plant and in the subcontractors' premises, with the following benefits:

  • by knowing which production lots are already in process, the Cariaggi supervisor is able to reschedule an operation 
  • such decision generates an automatic request sent to the system of the subcontractor which check the feasibility of request within 2 minutes 
  • if feasible, the subcontractor accept the request and send a confirmation message which automatically updates the information system of Cariaggi
  • the Cariaggi supervisor can re-allocate resources to optimize the production plan and send the new orders updating the subcontractor system 
The use of a B2B edi platform and XML/EDI standard messages (ebXML) has allowed Cariaggi to manage the data communication and transport independently from different companies' ERPs,while assuring security and reliability.

[...]

 

The benefits

The optimised scheduling system is in place and has enabled Cariaggi to comply with 99% success rate to its clients requests. Major benefits include:
 
  • 95% reduction of phone calls/ emails to arrange rescheduling 
  • 100% reduction of fax messages used for production orders and order changes 
  • 30% redcution of personnel costs for production planning and scheduling
  • Cut off of all transcription errors in manual data input across different partners systems
  • 95% reduction of missed or unnotified delivery dates 
  • 25% efficiency gain in production planning and control (2812 production orders managed Jan-Oct 2011 against 3569 managed Jan-Oct 2012 with the new system)
  • An information system constantly and consistently updated and accessible to the right operators 
 
Additional indirect benefits can hardly be quantified, however an increase of customer satisfaction has been observed as well as growth in customer loyalty and turnover.
 
The reaction time to requests processed with eBIZ messages is 2 minutes (time lag recorded at the Cariaggi scheduling system) 
 
The B2B platform has smoothly supported the interchange of 20.000 business documents yearly.
 
The optimised scheduling system has enabled Cariaggi to manage part of the subcontractor plant capacity as if it were its own. The subcontractor allocates quotas of its plant capacity while keeping its information systems independent from its client's software.
 
 
                                                                                                                     data in the text updated until 2013