Why tailors keep your dresses for so long
By MUNGAI KIHANYA
The Sunday Nation
Nairobi,
25 February 2018
Several
years ago, I had an interesting discussion with a tailor. I was trying
to understand why tailors delay finishing customers’ clothes. He
explained that it was because they usually have very many orders to
fill. The average backlog ran to several weeks.
So,
I asked him how many dresses he can finish in a day; he said two. Why
then does he accept so many orders knowing very well that he cannot
finish them in good time? He gave me two reasons: first, he doesn’t want
to risk losing a customer and, second, that he wants to maximise his
income.
Are these reasons
justified? To find out, suppose the tailor makes a profit of Sh300 from
each dress. Thus, if he got two orders each day, his daily income would
be Sh600. In a such a case the customers would only need to wait one day
to get their dresses.
With such efficiency,
there is likelihood that word will go round and soon enough the tailor
will start getting three orders daily. Since he can only finish two, one
dress will need to be carried forward to the following day. A backlog
begins to pile up.
By the end of, say,
five days, he will have received 15 orders but finished only 10. So
there is a balance of 5 unfished dresses. These 5 will take two and a
half days to complete.
Unfortunately, the
end of the third day, another six orders will come in and the backlog
grows longer and longer. The larger the number of customer waiting, the
longer it will take to fulfil their orders.
The tailor is now at
risk of becoming a victim of his own success. The waiting is likely to
grow so long that his reputation is ruined – he becomes “the one who
never finishes his work on time”!
Unfortunately, even
though his orderbook is so long, his daily income does not change at
all! He still takes home the same Sh600 each day.
Clearly then, his two
reasons for keeping a larger order book are not justified. His income
doesn’t improve and he is not able to retain customers since his
reputation is dented.
This simple logic
escapes even some highly trained sales professionals working in
well-established manufacturing companies. They will continue booking
more and more orders even when they know that there are production
backlogs running into several weeks.
This
does not in any way increase their sales turnover
of the company
since, in most cases, customer only pay after delivery of product.
Furthermore, even the sales commissions are paid after the customer
pays. So, in the end, no one gains anything – not the customer, not the
manufacturer and not the sales executive!
Fortunately, a
manufacturing company can increase it production capacity. Doing so is
the only way
to increase the income
and reduce the backlog.
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