apparel industry trends, challenges, observations and solutions presented by fred isenberg, vp sales...
TRANSCRIPT
Apparel Industry Trends, Challenges, Observations and Solutions
Presented by Fred Isenberg, VP Sales New Generation Computing, Inc.
New Generation Computing
Leading Product Lifecycle Management, Global Sourcing and ERP Solutions for Fashion, Apparel and Lifestyle Products
The Company
Specialists at PLM and Global Sourcing
Incorporated 1982
1998 – division of American Software (AMSWA)
Apparel, Footwear and Accessory Specific Software
350+ Customers Worldwide
Active Member NRF, AAFA, AAPN
Microsoft Certified Partner
Product Suites
Specialists in PLM & Global Sourcing
e-SPS – Internet Sourcing & Production System
e-PLM – Internet Product Lifecycle Management
RED HORSE – Enterprise Management System (ERP)
DMI – Forecasting / Replenishment
TPM – The Production Manager (Shop Floor Control)
DCCS – Warehouse Management System
Customers:Customers
Trends
Specialists in PLM & Global Sourcing
• Blurring of Retailers and Brands
• Rapidly changing supply chains and methods
• Compressing Product Life Cycle (Speed to Market)
• Globalization of Everything (A Flatter World)
• Margin Challenges
• Need for Brand Differentiation
Challenges
Specialists in PLM & Global Sourcing
• Effectively dealing with Speed, Distance, Complexity and SKU Proliferation
• Deploying and Integrating IT systems to meet new requirements
• Eliminating old silos, streamlining business processes, realignment to today’s world
• Collaborating effectively in a 24/7 world
Observations
Specialists in PLM & Global Sourcing
Have most companies achieved
Speed to Market?
Typical Business Process
Specialists in PLM & Global Sourcing
Design, sketch, review samples
Meet on Leather Development, Sample and Sqft Needs, ETAs,etc
Set up Development Spreadsheet: skin,tannery, skin#, ETAs,etc
Review samples with merchants refine or approve
Tanneries create leather samples, sqft, status with Hubs
Email spreadsheet to WHK/Hubs: Hubs communicate to Tanneries
Email/phone on status and issues around leather development
High level capacity review by maker, by tannery. Negotiate w/merchants
Sample factory receives leather and creates samples
Tannery ships leather to Sample Factory
Email of needs, ETAs, clarifications
Product line reviewed, refined, finalized(styleout)
Assortment Plan is finalized, unit projections by month - completed for Mall, Outlet, Ecomm, Holiday
Maker receives SR, style list, and patterns
Email final style list to WHK; PDM sends ptype SR; WHK converts SR to pdf file; fax info to maker & sample factory
Prototype SR created
Add data from leather development spreadsheet to leather production spreadsheet by cut/paste - set leather production needs
Email final style list to sample factory. Sample factory creates patterns - net consumption data
MPS creates costing spreadsheet by cut/paste style information
Merchants generate cost targets - MPS enters into costing spreadsheet WHK
generates cost targets - updates spreadsheet
WHK creates costing spreadsheet by cut/paste style information, talking with vendors, net consumption data
Maker creates samples for costing meetings
Costing meetings held with makers, final FOBs, commitments established
Phase I. Product Development Phase II. Costing Phase IV. Order PlacementPhase V. Order Fulfillment
MPS compares assortment plan to cap plan - updating cap plan to match assortment plan.
Leather production matches production spreadsheet to prenote spreadsheet
MPS hides all columns other than those for the month the prenote is for…. Saves spreadsheet as prenote
MPS emails prenote spreadsheet to WHK, sort sheet by maker, breakout capacity by week
WHK confirms with maker - units, FOBs, skin source - updates prenote spreadsheet with FOB, skin source
Email spreadsheet to MP S - MPS provides paper copy to Allocator
Technical Designer reviews prenote to identify new SRs. Sets SR production due date
Technical Designer conducts fit session and updates SR
Technical Designer follows up with designers on any open SR issues
PDM transmits SR to WHK - WHK converts to pdf file
WHK compares new SR to old SR to understand changes
WHK faxes new SR to maker
MPS creates PO s in Endeavor by keying off prenote. PO s released by Planning Director
Allocator generates size split and provides print outs to MPS - size split by style
Download PO data into RPM database
Confirm leather, lining, label by PO
WHK, hubs - email PO s to makers
Email PO files to WHK (daily) and to Hubs (weekly)
Wilsons meets with maker and reviews ordering timelines
Maker cuts at five weeks from consolidation - sews product
Maker receives leather and submaterials
Maker begins production - order leather from leather source, order submaterials
Wilsons meets with maker and reviews leather and submaterials - reviews production timelines
Wilsons meets with maker and reviews product - works with maker QA
Maker packs and ships product
Work to resolve customs issues and LC issues. PO tracking begins (if ocean)
PO balance data is keyed from RPM report into excel spreadsheet
Letter of credit needs analyzed. LCs opened or adjusted
Product Received at DC
Email/phone is mechanism to resolve issues: - Ship early, late- FOB changes- Supplier issues - Ticket issues
Update leather production spreadsheet with revised/ new needs and ETAs based on prenote
Email updated leather production spreadsheet to WHK, hubs. Hubs communicate changes/ needs to Tanneries
Setup/Update Leather Production Spreadsheet by cut/paste style data
Phase III. Capacity Plan, Projections
MPS for mall, create cap plan spreadsheet by cut/paste style information
MPS rolls up unit projections by style for all channels
WHK sorts sheets by maker, breakout capacity by week, share with maker qrtly
Assortment Plan is finalized, unit projections by month - updated for Mall, Outlet, Ecomm, Holiday
Email production spreadsheet to hubs, hubs communicate needs, timing to tanneries, submaterial suppliers
Tanneries begin creating leather
Email, phone status’ begin - tanneries, hubs, WHK, home office
Update Leather Production Spreadsheet by cut/paste style data
Set leather production needs/ timing
Update cap plan spreadsheet with leather detail (skin type, #, price, etc)
Email spreadsheet to WHK
set leather production needs
Typical Business Process
Specialists in PLM & Global Sourcing
Design, sketch, review samples
Meet on Leather Development, Sample and Sqft Needs, ETAs,etc
Set up Development Spreadsheet: skin,tannery, skin#, ETAs,etc
Review samples with merchants refine or approve
Tanneries create leather samples, sqft, status with Hubs
Email spreadsheet to WHK/Hubs: Hubs communicate to Tanneries
Email/phone on status and issues around leather development
High level capacity review by maker, by tannery. Negotiate w/merchants
Sample factory receives leather and creates samples
Tannery ships leather to Sample Factory
Email of needs, ETAs, clarifications
Product line reviewed, refined, finalized(styleout)
Assortment Plan is finalized, unit projections by month - completed for Mall, Outlet, Ecomm, Holiday
Maker receives SR, style list, and patterns
Email final style list to WHK; PDM sends ptype SR; WHK converts SR to pdf file; fax info to maker & sample factory
Prototype SR created
Add data from leather development spreadsheet to leather production spreadsheet by cut/paste - set leather production needs
Email final style list to sample factory. Sample factory creates patterns - net consumption data
MPS creates costing spreadsheet by cut/paste style information
Merchants generate cost targets - MPS enters into costing spreadsheet WHK
generates cost targets - updates spreadsheet
WHK creates costing spreadsheet by cut/paste style information, talking with vendors, net consumption data
Maker creates samples for costing meetings
Costing meetings held with makers, final FOBs, commitments established
Phase I. Product Development Phase II. Costing Phase IV. Order PlacementPhase V. Order Fulfillment
MPS compares assortment plan to cap plan - updating cap plan to match assortment plan.
Leather production matches production spreadsheet to prenote spreadsheet
MPS hides all columns other than those for the month the prenote is for…. Saves spreadsheet as prenote
MPS emails prenote spreadsheet to WHK, sort sheet by maker, breakout capacity by week
WHK confirms with maker - units, FOBs, skin source - updates prenote spreadsheet with FOB, skin source
Email spreadsheet to MP S - MPS provides paper copy to Allocator
Technical Designer reviews prenote to identify new SRs. Sets SR production due date
Technical Designer conducts fit session and updates SR
Technical Designer follows up with designers on any open SR issues
PDM transmits SR to WHK - WHK converts to pdf file
WHK compares new SR to old SR to understand changes
WHK faxes new SR to maker
MPS creates PO s in Endeavor by keying off prenote. PO s released by Planning Director
Allocator generates size split and provides print outs to MPS - size split by style
Download PO data into RPM database
Confirm leather, lining, label by PO
WHK, hubs - email PO s to makers
Email PO files to WHK (daily) and to Hubs (weekly)
Wilsons meets with maker and reviews ordering timelines
Maker cuts at five weeks from consolidation - sews product
Maker receives leather and submaterials
Maker begins production - order leather from leather source, order submaterials
Wilsons meets with maker and reviews leather and submaterials - reviews production timelines
Wilsons meets with maker and reviews product - works with maker QA
Maker packs and ships product
Work to resolve customs issues and LC issues. PO tracking begins (if ocean)
PO balance data is keyed from RPM report into excel spreadsheet
Letter of credit needs analyzed. LCs opened or adjusted
Product Received at DC
Email/phone is mechanism to resolve issues: - Ship early, late- FOB changes- Supplier issues - Ticket issues
Update leather production spreadsheet with revised/ new needs and ETAs based on prenote
Email updated leather production spreadsheet to WHK, hubs. Hubs communicate changes/ needs to Tanneries
Setup/Update Leather Production Spreadsheet by cut/paste style data
Phase III. Capacity Plan, Projections
MPS for mall, create cap plan spreadsheet by cut/paste style information
MPS rolls up unit projections by style for all channels
WHK sorts sheets by maker, breakout capacity by week, share with maker qrtly
Assortment Plan is finalized, unit projections by month - updated for Mall, Outlet, Ecomm, Holiday
Email production spreadsheet to hubs, hubs communicate needs, timing to tanneries, submaterial suppliers
Tanneries begin creating leather
Email, phone status’ begin - tanneries, hubs, WHK, home office
Update Leather Production Spreadsheet by cut/paste style data
Set leather production needs/ timing
Update cap plan spreadsheet with leather detail (skin type, #, price, etc)
Email spreadsheet to WHK
set leather production needs
Raw Material Development
Style Development
Pre-production
Production Shipping
Analysis of Typical Operations
Specialists in PLM & Global Sourcing
52% of the activities were non-value added, such as non-integrated fax, phone calls, spreadsheets, databases
and emails
Significant opportunity for improved efficiencySignificant opportunity for improved efficiency
Many Activities Require Supply Chain Partner Participation
Observations
Specialists in PLM & Global Sourcing
How well integrated are most companies ERP, Demand Management, PLM & Sourcing Systems?
Observations
Specialists at PLM and Global Sourcing
Apparel and Sewn Products Industry Specialists
Reporting and Analysis
Workflow and Event Management
Collaboration
Exception Management
Financial Accounting
Product Lifecycle Management
Customer Order Processing
Import Management & Sourcing
Inventory Control
EDI Forecasting & Planning
Warehouse & Shipping
Solutions – Integrated End to End Systems
Design to Sourcing - Key Business Needs
Specialists in PLM & Global Sourcing
1. Visibility
2. Collaboration
3. Timely Information
4. Breaking down organizational and cultural barriers
5. Information gap between departments
6. Managing event milestones
7. Performance metrics
8. Improve responsiveness
9. Factory Compliance Monitoring
Solutions – Visibility Design to Source
Specialists in PLM & Global Sourcing
Product Development
RFQs and Bids
Pre- Production
P.O. Management
Production Tracking
Quality Control
Shipment Packing
Inbound Tracking
Merc
han
dis
ing
DC
Receip
t
Centralized Data
Workflow and Event Management
Collaboration
Exception Management
Solutions: Metrics achieved
Specialists in PLM & Global Sourcing
Cycle time reduction – 20 -50%
G & A reduction – 5 – 20%
Margin improvement – 5 – 20%
Reduction of Finished Goods air freight – 1 – 3%
Raw Material aggregation and reduction in cost – 3 – 5%
Solutions: Metrics Achieved
Specialists in PLM & Global Sourcing
Cycle time reduction – 10 -15%
P.O. lead time reduction – 10 – 15%
Efficiency improvement – 20 – 50%
Quality improvement – 5 – 20%
99.5% Carton Accuracy at Receipt
Shipment lead time reduction of 2 days.
Improved WIP and Inbound (NDC) Accuracy - 35 - 50%