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In the fast-paced, ever-evolving world of fashion, apparel, and textiles, efficiency and agility are paramount. The Theory of Constraints (TOC), a transformative management philosophy, offers a focused approach to identifying and eliminating critical chokepoints, leading to enhanced throughput, reduced lead times, and a more agile response to market demands. A look at the core principles of TOC, its evolution, and its applications in the fashion and textile industry, illustrated through real-world case studies and compelling data.
The Theory of Constraints, developed by Dr Eliyahu M. Goldratt in the early 1980s and first introduced in his seminal business novel, The Goal, puts forward a simple yet profound idea: every complex system, including a manufacturing plant or a supply chain, has at least one constraint (or very few) that limits its ability to achieve more of its goal. For most businesses, the ultimate goal is to make more money, now and in the future. TOC provides a structured methodology to systematically improve that constraint until it is no longer the limiting factor, thereby increasing the system's overall performance.
At its core, TOC is about focus. Instead of diluting improvement efforts across an entire organization, it directs attention and resources to the part of the system that is holding back progress – the weakest link in the chain
Understanding the Theory of Constraints (TOC)
Theory of Constraints (TOC) is a systematic approach to identify and address the biggest limiting factor in a system, with the goal of enhancing overall performance and profitability.
Defining the goal
At the heart of TOC lies a fundamental question: What is the goal? For most for-profit organizations, including fashion brands and manufacturers, the ultimate goal is sustainable profit generation. TOC provides the lens to evaluate every decision, process, and investment based on how directly it contributes to achieving this goal. It drives organizations to focus their efforts not just on doing more, but on doing what matters most to achieve measurable outcomes.
The constrains
A constraint in TOC is anything that prevents a system from performing better relative to its goal. These constraints are not always visible and can take various forms:
• Physical constraints: These are tangible limitations such as machinery with low throughput, insufficient skilled labor, material shortages, or a particular process that consistently causes delays.
• Policy constraints: These are rules—formal or informal—that restrict performance. It could be outdated standard operating procedures, flawed scheduling systems, or business models that discourage flexibility.
• Market constraints: Even if a company can produce at scale, limited demand can act as a ceiling to growth.
• Paradigm constraints: These are mental models and ingrained beliefs that organizations or leaders hold onto, often without question. For example, resistance to adopting automation or fear of changing supplier relationships may hinder progress.
Understanding which type of constraint is present is essential for applying TOC effectively.
The five focusing steps
The cornerstone of TOC is its five-step process, known as the Five Focusing Steps. This cyclical method enables organizations to continuously identify and resolve constraints, allowing them to optimize performance and adapt over time.
1. Identify the system’s constraint(s)
The journey begins by pinpointing the weakest link—the bottleneck that limits the system’s overall output. Whether it's a specific process, resource, or market limitation, recognizing this constraint is key to driving meaningful change.
2. Exploit the constraint
Once the constraint is known, the next step is to get the most out of it with existing resources. This might mean ensuring the bottleneck operation is always supplied with the right inputs, never sits idle, and is focused on priority tasks.
3. Subordinate everything else
All other operations should align with the needs of the constraint. Non-bottleneck processes may need to reduce output or adjust their pace to avoid overwhelming the constraint with unnecessary inventory or work-in-progress (WIP).
4. Elevate the constraint
If the constraint still limits the system, it's time to consider investments—be it in new machinery, hiring more personnel, re-engineering a workflow, or even rethinking how the business operates. This step typically involves costs but is essential for unlocking growth.
5. Return to Step 1, avoiding inertia
Once the current constraint is resolved, another part of the system will likely emerge as the new bottleneck. The process starts again, reinforcing TOC as a tool for continuous improvement. A crucial warning here is to avoid inertia—the tendency to rest after progress, which itself becomes a constraint. Vigilance and adaptability are key.
Weaving TOC into fashion’s fabric
For fashion businesses—whether a manufacturing unit facing production bottlenecks or a brand navigating slow demand—TOC offers a powerful way to align resources, drive operational clarity, and ensure every action contributes to sustainable profitability. In an industry marked by rapid change, complex supply chains, and evolving consumer preferences, TOC equips leaders with a mindset of ongoing refinement, always focused on what’s holding us back—and what can we do next to move forward.
Objectives of TOC in the fashion apparel and textile sector include:
• Increase throughput: Maximize sales and production output.
• Reduce lead times: Drastically cut the time from design to retail.
• Improve on-time delivery performance (OTDP): Reliably meet customer and retailer deadlines.
• Minimize work-in-process (WIP) and finished goods inventory: Align production with actual demand to reduce tied-up capital and obsolescence risk.
• Reduce Operational Expenses: Achieve cost efficiencies as a byproduct of improved flow and reduced waste.
• Enhance Flexibility and Responsiveness: Quickly adapt to changing market trends.
The impact
Implementing TOC can lead to a paradigm shift from a "cost-world" perspective (focusing on local efficiencies and cost per unit) to a "throughput-world" perspective (focusing on system-wide flow and generating more sales). This is particularly relevant for fashion companies struggling to balance cost pressures with the need for agility. The quantitative impacts across the industry can be substantial:
|
Metric |
Before TOC Principles (Illustrative) |
After Implementing TOC-aligned Principles |
|
Design to Shelf Lead Time |
~6 months |
As low as 15 days |
|
Inventory Turnover Ratio |
~4x/year |
~12x/year |
|
Lost Sales Due to Stockouts |
~18% |
~7% |
TOC stitching success in the industry
The practical application of TOC principles has yielded significant results for various players in the fashion, apparel, and textile sectors.
Zara (Inditex): The global fast-fashion giant has famously implemented TOC principles to optimize its highly responsive supply chain. A key constraint identified was the design-to-retail cycle time. By subordinating production and logistics to a streamlined design process and elevating response times, Zara has turned this potential constraint into a formidable competitive advantage.
|
Metric |
Before TOC Principles (Illustrative) |
After Implementing TOC-aligned Principles |
|
Design to Shelf Lead Time |
~6 months |
As low as 15 days |
|
Inventory Turnover Ratio |
~4x/year |
~12x/year |
|
Lost Sales Due to Stockouts |
~18% |
~7% |
While Zara's model is a complex blend of strategies, its rapid replenishment and demand-chasing capabilities align strongly with TOC's emphasis on identifying and exploiting constraints to improve flow and throughput.
Indian textile manufacturer: An Indian textile mill producing dyed fabrics faced significant delays in its dyeing and finishing processes, which were identified as critical bottlenecks. Implementing TOC involved a focused effort to improve scheduling and maintenance for these constraint areas.
|
Production KPI |
Before TOC Implementation |
After TOC Implementation |
|
Order Fulfillment Time |
25 days |
14 days |
|
Machine Downtime (Constraint Area) |
22% |
8% |
|
Throughput (meters/day) |
12,000 |
20,000 |
The targeted improvements in exploiting and elevating the dyeing and finishing constraints led to an increase in throughput, faster order fulfillment, and enhanced customer satisfaction.
Challenges in implementation
Despite its proven benefits, implementing TOC is not without its hurdles. Common challenges include:
• Identifying the true constraint: It can sometimes be hidden or misidentified, especially if it’s a policy or paradigm.
• Resistance to change: Shifting mindsets from local efficiencies (e.g., keeping all machines busy) to system-wide optimization (e.g., non-constraints being paced by the constraint) can be culturally difficult.
• Data collection and analysis: Accurately measuring throughput, inventory, and operating expense, and tracking constraint performance requires robust data systems and analytical capabilities.
• Management commitment: Sustained focus, understanding, and unwavering support from top management are crucial for navigating the changes TOC entails.
• Overcoming inertia: Once an initial constraint is broken, the system can easily fall back into old habits if the continuous improvement cycle (Step 5) is not diligently pursued.
The future stitch
In an industry as dynamic and demanding as fashion, apparel, and textiles, the ability to quickly adapt, reduce waste, and improve flow is paramount. The Theory of Constraints offers a logical, focused, and high-impact methodology to achieve these goals. By relentlessly identifying and addressing the weakest links in their value chains, FAT companies can significantly enhance their competitiveness, profitability, and responsiveness.
As consumer expectations continue to evolve towards greater speed, personalization, and sustainability, TOC stands as a powerful ally. Its principles of optimizing resource use, minimizing unnecessary inventory, and improving overall system efficiency align well with the broader goals of a more responsible and resilient fashion future, enabling companies to not just keep up with trends, but to set them with newfound operational agility.
Kering’s Board of Directors, chaired by François-Henri Pinault, has approved the appointment of Luca de Meo as Chief Executive Officer of the Group, marking a major governance shift for the French luxury conglomerate.
The decision, recommended by the Appointments and Governance Committee, represents a strategic evolution for Kering as it enters a new phase of leadership and growth. In a significant structural change, the roles of Chairman and CEO will be separated aligning the Group with global best practices for major listed companies.
The transition will take effect following a Shareholder Meeting scheduled for September 9, 2025, where shareholders will vote on de Meo’s appointment as Director and the new compensation policy. Pending approval, de Meo will officially assume the CEO role on September 15, 2025.
François-Henri Pinault, who has led Kering for two decades, described the appointment as a carefully considered next step. “After twenty years of transforming Kering into a major global luxury player, the Group is ready for a new stage in its development,” he said. “Luca’s experience at the helm of an international listed group, his sharp understanding of brands, and his sense of a strong and respectful corporate culture convinced me he is the leader I was looking for.”
Luca de Meo, currently CEO of Renault Group, brings extensive international leadership and brand expertise. Commenting on his appointment, he said: “I am approaching this new professional challenge with enthusiasm, eagerness, and confidence, inspired by the strength of the Group’s brands and the expertise of its people.”
As Chairman, Pinault will continue to guide Kering’s long-term vision while de Meo steers operational leadership.
Failure to abolish sales tax may lead to widespread factory closures, warn Pakistan’s cotton ginners
Failure of the federal budget to abolish sales tax on cotton and its by-products may lead to widespread factory closures and rise in undocumented economy, warned cotton ginning and oil mill sector leaders in Pakistan.
Business leaders in the country urged Prime Minister Shehbaz Sharif to redirect over Rs 700 billion annually allocated to the Benazir Income Support Program (BISP). These funds should instead be used to revitalize businesses struggling under excessive taxation, they said, adding, strengthening industries, rather than providing aid, is key to national economic stability, they argue.
Senior cotton ginners revealed, formed at the Prime Minister's behest, a pre-budget committee had fully endorsed their plea to either eliminate sales tax or implement the Export Facilitation Scheme (EFS) domestically. Despite this, the budget maintained sales tax on raw cotton, cottonseed, oilcake, and cottonseed oil, and notably, did not impose it on imported cotton. This oversight intensifies fears that many more of Pakistan's already non-operational over 800 ginning factories and over 1,000 oil mills are now at risk.
Stakeholders attributed Pakistan's fall from the world's fourth-largest cotton producer to seventh to the sales tax on ginning and oil mills exceeding 70 per cent, lax crop zoning enforcement, increased sugarcane cultivation, and the sales tax exemption on imported cotton. Consequently, the state spends a significant portion of Pakistan’s foreign exchange reserves on importing cotton, yarn, and edible oil. Critics argue, diverting over Rs 700 billion to charity, or alleged misuse, is counterproductive when industries are collapsing.
Allocate these funds to revive the industry, experts appealed to Sharif. Despite increase in cotton arrivals, ongoing sales tax limits factories’ operations, leading to a fall in cotton prices. This not only harms farmers but also weakens the national economy, and raises fears of a sharp increase in undocumented business activity, they argued.
USDA’s June 2025 World Agricultural Supply and Demand Estimates (WASDE) report reveals notable adjustments for the 2025/26 cotton season, highlighting tighter supply conditions in the US domestic market and downward revisions globally.
According to this report, in June 2025, US cotton production is forecast to decline by 500,000 bales to 14.0 million bales from last month and below 2024/25’s 14.4 million bales. This marks the second-smallest crop in a decade.
The total area under cotton cultivation is projected to decline by 2 per cent to 8.19 million acre primarily due to heavy rains and delayed planting in the Delta region.
National average yield is estimated to decline by over 1 per cent to 820 pounds/acre, largely linked to Delta weather challenges.
Beginning stocks are estimated to reduce by 400,000 bales, reflecting higher 2024/25 exports. Estimates for ending stocks have been lowered by 900,000 bales to 4.3 million bales, with a stocks-to-use ratio of 30.3 per cent.
However, despite tighter supplies, the 2025/26 season-average price remains steady at 62 cents/pound.
Meanwhile, global cotton production is likely to decline by over 800,000 bales. Though China’s crop is estimated to rise by 1 million bales, this would be offset by production cuts in India, the US, and Pakistan.
Estimates for global cotton consumption have been lowered by over 300,000 bales, with Egypt seeing gains but offset by declines in India, Turkey, and Bangladesh.
The estimates for global exports have been revised down slightly by 40,000 bales, as country-level changes mostly offset one another.
Global beginning stocks have been cut by 1.1 million bales, mainly due to a smaller India 2024/25 crop while global ending stocks for 2025/26 have been reduced nearly 1.6 million bales, reflecting tighter starting inventories and production falling more than consumption.
The June 2025 WASDE underscores ongoing supply pressures and uncertain global dynamics shaping the cotton market heading into 2025/26.
Gartex Texprocess India 2025 concluded with a record-breaking turnout, reaffirming its importance as a key sourcing and technology platform for the Indian textile and apparel industry. Held in Mumbai from 13-15 June, the show attracted 10,283 visitors from 230 Indian cities and five countries. With 125 exhibitors showcasing across the entire textile value chain, the event featured co-located segments including The Denim Show, Screen Print India - Textiles, and the Fabrics & Trims Show, creating a unified space for knowledge exchange, innovation, and direct business networking. Organised by Messe Frankfurt Trade Fairs India Pvt Ltd and MEX Exhibitions Pvt Ltd, this edition highlighted the growing momentum in India’s textile transformation, with sustainability, automation, and product innovation leading the conversation.
States and global participation strengthen industry collaboration
The show was inaugurated by Sanjay Savkare, Hon’ble Minister of Textiles, Government of Maharashtra, who underscored the state's push to strengthen domestic manufacturing of globally sourced components and machinery. Uttar Pradesh, the State Partner for this edition, was represented by Shashank Chaudhary (IAS), Additional CEO, Invest UP. He highlighted the state’s textile-focused policies and conducted a special session for stakeholders .
Adding international depth, the Taiwan Sewing Machinery Association (TSMA) featured a dedicated pavilion with eight companies. TSMA Chairman Steven Fang noted, “We saw a good visitor turnout from across India. This is a strong market, and we’re keen to return for future editions.”
Denim industry moves toward sustainability and innovation
The Denim Show segment saw the participation of over 30 denim mills, who presented eco-friendly dyes, next-gen fabrics, and functional accessories. Buyers from leading fashion firms like Levi’s Strauss India Pvt Ltd, Aditya Birla Digital Fashion Venture Ltd, Walmart, and The Souled Store actively explored sourcing options.
Vasudev Tipre, GM - Exports, Suryalakshmi Cotton Mills, said, “Automation has significantly boosted efficiency. We cater to global brands and export 50 per cent to Asia and South America. The mix of fabric and machinery here makes this a very meaningful platform.”
Sourav Jalan, Director and Promoter, Syama Denims, remarked, “This show is ideal for engaging with direct-to-consumer brands who rarely meet mills directly. Gartex consistently delivers on connecting suppliers and customers.”
Aamir Akhtar, Group President and CEO, Jindal Worldwide Ltd, highlighted: “We are using water-saving technologies in our new premium denim line, ‘Formula 1’, supported by a zero-liquid discharge system. The event was seamlessly organised and is becoming a benchmark for Indian trade expos.”
Adding perspective from the chemicals segment, Harish Agarwal, Owner, Bhagwati Chemicals, said, “The event delivered strong leads, even beyond denim. We've been in the dyes and chemicals business for 40 years, and the kind of technical inquiries we received were very encouraging.”
B Vinod Kumar, General Manager - Denim & Casual Bottoms, Arvind Fashions, noted, “Massive machinery displays that are usually seen only inside factories were showcased here. Bringing that into an accessible platform is a commendable effort.”
Sreehari Krishnan, Director - Plant Operations & Quality, Bewakoof Brands Pvt Ltd, added, “We explored exciting innovations like HD stickers, embroidery, and lightweight dobby denim great for summer wear.”
Automation and smart machines in spotlight
Exhibitors across the show praised the industry’s growing interest in automation and smart manufacturing. Nitin Mathur, Regional Sales Manager, IIGM Private Limited, shared, “Footfall was excellent, and small businesses especially showed interest in automation due to rising labour costs.”
Sai Navneethan, Regional Head – Sustainable Products, Ramsons Garment Finishing Equipment Pvt Ltd, commented, “High-volume garment finishing requires automation. PLC-controlled systems not only drive efficiency but also support greater participation of women in operations.”
Ujjwala Upadhyay, Brand Manager, Insight Print Communications Pvt Ltd, showcasing Mimaki's dye sublimation machines, stated, “Sustainability is a strong driver. Visitors from sportswear, furnishings, and signage sectors connected with us. Footfall exceeded expectations.”
S Eswaran, Product Head - Duerkopp Adler & PFAFF, Mehala Machines, observed: “We had excellent engagement and the interest in automation solutions was strong. The Mumbai edition was well managed and our booth received consistent visitor traffic.”
A future-ready platform for India’s textile sector
Backed by leading industry bodies like the Denim Manufacturers Association, the show drew top sourcing teams and decision-makers from organisations including Aditya Birla Group, Brands and Sourcing Leaders Association, Coreco, Recyclr, Technopak Advisors, TMRW – House of Brands, Walmart Sourcing, and Wrogn Pvt Ltd. With its focus on sustainable practices, digital solutions, and international partnerships, Gartex Texprocess India continues to evolve as a future-ready platform for the Indian textile sector.
The next edition is set to take place from 21–23 August 2025 at Pragati Maidan, New Delhi, followed by the Mumbai edition from 09–11 April 2026 at the Bombay Exhibition Centre.
Source Fashion, the UK’s leading responsible sourcing platform, has released an innovative report addressing one of fashion’s most damaging issues: overproduction. Titled “Do We Really Need to Produce So Much?”, the 2025 report, developed in collaboration with retail futures consultancy Insider Trends, sheds light on the staggering scale of fashion’s waste problem and offers solutions.
The report reveals that the global fashion industry produces between 80 and 150 billion garments annually, with up to 40 per cent remaining unsold and often ending up in landfill or incineration. Despite this, only 1 per cent of brands are actively working to reduce production volumes.
Rather than simply outlining the problem, the report offers a blueprint for change, highlighting four innovative business models: on-demand production, circular design, retail-as-a-service, and collaborative creation with consumers. These models are already being tested by forward-thinking brands and, according to the report, can not only reduce environmental impact but also improve margins and build consumer trust.
“This report highlights the uncomfortable truth behind retail’s success volume,” said Suzanne Ellingham, Sourcing Director at Source. “The fashion industry must now ask not just how it produces, but how much and why.”
The report arrives amid tightening regulations, shifting consumer values, and economic pressure. It positions overproduction as not just an environmental issue, but a commercial risk and an opportunity for brands ready to evolve.
To deepen the conversation, Source will host a live webinar, “Rethinking Volume - Fashion’s Shift from Overproduction to On-Demand”, on 20th June in partnership with Insider Trends.
Organisers of ITMA ASIA + CITME, Singapore 2025 have launched a dedicated mobile app for Android and iOS users, offering early access to the official exhibitor list for the upcoming textile machinery exhibition.
Despite the closure of the sales application window, exhibitor interest remains high, with fresh applications continuing to pour in underscoring strong confidence in the event’s debut edition in Southeast Asia.
The four-day showcase, set to take place at Singapore Expo, will feature over 770 exhibitors representing 31 countries and regions. Occupying a gross exhibition area of 70,000 square metres, the exhibition spans 19 product sectors, covering the entire textile manufacturing value chain from spinning and weaving to finishing, digital solutions, and sustainability technologies.
The newly introduced mobile app is designed to enhance the visitor experience by offering itinerary planning and navigation features. Users can bookmark exhibitors, plan visits efficiently using the integrated wayfinder system, and access tools for scheduling meetings and identifying potential partners.
Currently, the exhibitor listing is exclusive to the mobile app, with a web version expected to be released by the end of June on the official ITMA ASIA + CITME Singapore 2025 website.
The event is jointly owned by CEMATEX (the European Committee of Textile Machinery Manufacturers) and Chinese partners the China Textile Machinery Association (CTMA) and the Sub-Council of Textile Industry, CCPIT (CCPIT TEX). It is organised by ITMA Services Pte Ltd and co-organised by Beijing Textile Machinery International Exhibition Co, Ltd (BJITME), with the Japan Textile Machinery Association (JTMA) as special partner.
The Uttar Pradesh Government plans to develop an Apparel City or Apparel Park in Gautam Budh Nagar district, Noida.
To be spread across 175 acre, the park will help the government consolidate all the garment factories and exporters in the state in one location with all the facilities.
Known as the ‘City of Apparel’ of India, Noida has evolved as a prominent hub for the garment and apparel sector in India. The city houses numerous garment factories and exporters. It currently approximately 1,500 apparel units that are engaged in manufacturing ready-to-wear apparel for domestic and overseas markets.
The upcoming apparel park will make land and facilities available for garment manufacturing units. It will generate tens of thousands of employment opportunities besides attracting investments worth approximately Rs 2,500 to Rs 3,000 crore. Besides, the park will enhance export of ready-made garments from the area. It also aims to train villagers near the location to work in the garment sector and earn a living.
A significant contributor to India's exports, the textile and apparel sector in Noida employs a a significant number of individuals, primarily females (approximately 70 per cent of the jobs at the park will be given to females). The sector also aids the development of the economy in Uttar Pradesh and the surrounding regions.
Besides Noida, India boasts of numerous other cities that are renowned for textiles and fabrics such as Karur, Tamil Nadu; Surat, Gujarat; Pochampally, Telangana; Kota, Rajasthan; Chanderi, Madhya Pradesh and Mumbai, Maharashtra.
At a virtual program organized under the Prime Minister’s Employment Generation Program (PMEGP), the Khadi and Village Industries Commission (KVIC) disbursed a margin money subsidy of Rs 300 crore (approximately $34.8 million) to 8,794 beneficiaries nationwide.
The disbursement program was attended by participants from all six zones across India. The South Zone received approval for 2,445 projects, followed by the Central Zone with 2,366 projects. Eastern India and the Northeast accounted for 2,167 projects, while the Northern Zone had 1,320 projects, and the Western Zone saw 496 projects approved.
Highlighting the impact of the program, Manoj Kumar, Chairman, KVIC, stated, the PMEGP scheme has currently established a strong and effective foundation for self-employment in India. Khadi and Village Industries is not just a product today, but it embodies the vision of Aatmanirbhar Bharat (Self-Reliant India), he emphasized.
The scheme has not only provided employment to millions of youth but has also connected them with the power of entrepreneurship, Kumar added.
Since its inception through the FY24-25, the PMEGP has supported 1,018,185 micro-enterprises, sanctioning a total of Rs 73,348 crore in loans. This ongoing initiative continues to play a crucial role in empowering individuals and stimulating economic growth at the grassroots level across India.
In a significant boost to the textile industry, two Indian textile companies plan to set up their facilities in the Budhi Barlai village in Indore with a combined investment of Rs 584 crore. Both these facilities will help create 12,000 new jobs in the regions.
The first of these facilities will be set up by the Arvind Group on 12 hectare allocated by the Madhya Pradesh Industrial Development Corporation (MPIDC). The facility will produce 60 lakh garments annually in the first phase of its operation.
On the other hand, another prominent garment manufacturer, Noize Jeans plans to set up its own textile and apparel manufacturing unit on 12.5 hectare.
The facility to be developed by the Arvind Group would be a garment park, while Noize Jeans Ltd will focus on nine different manufacturing activities, including the production of sweaters, denim, and footwear.
Himanshu Prajapati, Executive Director, MPIDC-Indore region, says, extending beyond mere production facilities, the development will include creation of essential infrastructure such as plug-and-play units for auxiliary businesses, residential areas for employees, medical facilities, a police station, a fire station, and a commercial complex, all designed to support the burgeoning workforce.
Additionally, located about 25 km from Indore, along with surrounding vacant land totalling around 33 hectare, the closed Barlai sugar mill has been converted into an industrial area dedicated to the textile sector.
