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Apparel Industry Trends, Challenges, Observations and Solutions Presented by Fred Isenberg, VP Sales New Generation Com PowerPoint Presentation
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New Generation Computing Apparel Industry Trends, Challenges, Observations and Solutions Presented by Fred Isenberg, VP Sales New Generation Computing, Inc. Leading Product Lifecycle Management, Global Sourcing and ERP Solutions for Fashion, Apparel and Lifestyle Products The Company

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New Generation Computing

Apparel Industry Trends, Challenges, Observations and Solutions

Presented by Fred Isenberg, VP Sales

New Generation Computing, Inc.

Leading Product Lifecycle Management, Global Sourcing and

ERP Solutions for Fashion, Apparel and Lifestyle Products

the company
The Company
  • 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

Specialists at PLM and Global Sourcing

product suites
Product Suites
  • 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

Specialists in PLM & Global Sourcing

trends
Trends
  • 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

Specialists in PLM & Global Sourcing

challenges
Challenges
  • 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

Specialists in PLM & Global Sourcing

observations
Observations

Have most companies achieved

Speed to Market?

Specialists in PLM & Global Sourcing

typical business process

Phase I. Product Development

Phase IV. Order Placement

Phase II. Costing

Phase III. Capacity Plan, Projections

Phase V. Order Fulfillment

Design, sketch, review samples

Maker receives SR, style list, and patterns

Maker creates samples for costing meetings

Technical Designer conducts fit session and updates SR

Prototype SR created

PDM transmits SR to WHK - WHK converts to pdf file

Technical Designer follows up with designers on any open SR issues

Product Received at DC

Email of needs, ETAs, clarifications

WHK faxes new SR to maker

Technical Designer reviews prenote to identify new SRs. Sets SR production due date

WHK compares new SR to old SR to understand changes

Email final style list to WHK; PDM sends ptype SR; WHK converts SR to pdf file; fax info to maker & sample factory

Email final style list to sample factory. Sample factory creates patterns - net consumption data

Work to resolve customs issues and LC issues. PO tracking begins (if ocean)

MPS creates PO s in Endeavor by keying off prenote. PO s released by Planning Director

Download PO data into RPM database

MPS compares assortment plan to cap plan - updating cap plan to match assortment plan.

Sample factory receives leather and creates samples

Product line reviewed, refined, finalized(styleout)

Costing meetings held with makers, final FOBs, commitments established

Assortment Plan is finalized, unit projections by month - updated for Mall, Outlet, Ecomm, Holiday

Assortment Plan is finalized, unit projections by month - completed for Mall, Outlet, Ecomm, Holiday

Maker begins production - order leather from leather source, order submaterials

Maker packs and ships product

MPS hides all columns other than those for the month the prenote is for…. Saves spreadsheet as prenote

Allocator generates size split and provides print outs to MPS - size split by style

Wilsons meets with maker and reviews ordering timelines

MPS for mall, create cap plan spreadsheet by cut/paste style information

Wilsons meets with maker and reviews product - works with maker QA

WHK sorts sheets by maker, breakout capacity by week, share with maker qrtly

Setup/Update Leather Production Spreadsheet by cut/paste style data

MPS creates costing spreadsheet by cut/paste style information

WHK creates costing spreadsheet by cut/paste style information, talking with vendors, net consumption data

Tannery ships leather to Sample Factory

Confirm leather, lining, label by PO

WHK, hubs - email PO s to makers

Leather production matches production spreadsheet to prenote spreadsheet

Email spreadsheet to MP S - MPS provides paper copy to Allocator

Email spreadsheet to WHK

MPS rolls up unit projections by style for all channels

Maker receives leather and submaterials

Maker cuts at five weeks from consolidation - sews product

Merchants generate cost targets - MPS enters into costing spreadsheet

Email PO files to WHK (daily) and to Hubs (weekly)

Review samples with merchants refine or approve

Wilsons meets with maker and reviews leather and submaterials - reviews production timelines

WHK generates cost targets - updates spreadsheet

Update cap plan spreadsheet with leather detail (skin type, #, price, etc)

WHK confirms with maker - units, FOBs, skin source - updates prenote spreadsheet with FOB, skin source

Add data from leather development spreadsheet to leather production spreadsheet by cut/paste - set leather production needs

Update leather production spreadsheet with revised/ new needs and ETAs based on prenote

Email/phone on status and issues around leather development

Update Leather Production Spreadsheet by cut/paste style data

Email, phone status’ begin - tanneries, hubs, WHK, home office

Meet on Leather Development, Sample and Sqft Needs, ETAs,etc

PO balance data is keyed from RPM report into excel spreadsheet

Email/phone is mechanism to resolve issues:

- Ship early, late

- FOB changes

- Supplier issues

- Ticket issues

Set up Development Spreadsheet: skin,tannery, skin#, ETAs,etc

set leather production needs

Email updated leather production spreadsheet to WHK, hubs. Hubs communicate changes/ needs to Tanneries

MPS emails prenote spreadsheet to WHK, sort sheet by maker, breakout capacity by week

Tanneries create leather samples, sqft, status with Hubs

Set leather production needs/ timing

Tanneries begin creating leather

Letter of credit needs analyzed. LCs opened or adjusted

Email spreadsheet to WHK/Hubs: Hubs communicate to Tanneries

High level capacity review by maker, by tannery. Negotiate w/merchants

Email production spreadsheet to hubs, hubs communicate needs, timing to tanneries, submaterial suppliers

Typical Business Process

Specialists in PLM & Global Sourcing

typical business process9

Phase I. Product Development

Phase IV. Order Placement

Phase II. Costing

Phase III. Capacity Plan, Projections

Phase V. Order Fulfillment

Raw Material Development

Design, sketch, review samples

Maker receives SR, style list, and patterns

Maker creates samples for costing meetings

Technical Designer conducts fit session and updates SR

Prototype SR created

PDM transmits SR to WHK - WHK converts to pdf file

Technical Designer follows up with designers on any open SR issues

Product Received at DC

Email of needs, ETAs, clarifications

WHK faxes new SR to maker

Technical Designer reviews prenote to identify new SRs. Sets SR production due date

WHK compares new SR to old SR to understand changes

Email final style list to WHK; PDM sends ptype SR; WHK converts SR to pdf file; fax info to maker & sample factory

Email final style list to sample factory. Sample factory creates patterns - net consumption data

Work to resolve customs issues and LC issues. PO tracking begins (if ocean)

MPS creates PO s in Endeavor by keying off prenote. PO s released by Planning Director

Pre-production

Download PO data into RPM database

MPS compares assortment plan to cap plan - updating cap plan to match assortment plan.

Sample factory receives leather and creates samples

Product line reviewed, refined, finalized(styleout)

Costing meetings held with makers, final FOBs, commitments established

Assortment Plan is finalized, unit projections by month - updated for Mall, Outlet, Ecomm, Holiday

Assortment Plan is finalized, unit projections by month - completed for Mall, Outlet, Ecomm, Holiday

Maker begins production - order leather from leather source, order submaterials

Maker packs and ships product

Shipping

Production

MPS hides all columns other than those for the month the prenote is for…. Saves spreadsheet as prenote

Allocator generates size split and provides print outs to MPS - size split by style

Wilsons meets with maker and reviews ordering timelines

MPS for mall, create cap plan spreadsheet by cut/paste style information

Wilsons meets with maker and reviews product - works with maker QA

WHK sorts sheets by maker, breakout capacity by week, share with maker qrtly

Setup/Update Leather Production Spreadsheet by cut/paste style data

MPS creates costing spreadsheet by cut/paste style information

WHK creates costing spreadsheet by cut/paste style information, talking with vendors, net consumption data

Tannery ships leather to Sample Factory

Confirm leather, lining, label by PO

WHK, hubs - email PO s to makers

Leather production matches production spreadsheet to prenote spreadsheet

Email spreadsheet to MP S - MPS provides paper copy to Allocator

Email spreadsheet to WHK

MPS rolls up unit projections by style for all channels

Maker receives leather and submaterials

Maker cuts at five weeks from consolidation - sews product

Merchants generate cost targets - MPS enters into costing spreadsheet

Email PO files to WHK (daily) and to Hubs (weekly)

Review samples with merchants refine or approve

Wilsons meets with maker and reviews leather and submaterials - reviews production timelines

WHK generates cost targets - updates spreadsheet

Update cap plan spreadsheet with leather detail (skin type, #, price, etc)

WHK confirms with maker - units, FOBs, skin source - updates prenote spreadsheet with FOB, skin source

Add data from leather development spreadsheet to leather production spreadsheet by cut/paste - set leather production needs

Update leather production spreadsheet with revised/ new needs and ETAs based on prenote

Email/phone on status and issues around leather development

Update Leather Production Spreadsheet by cut/paste style data

Email, phone status’ begin - tanneries, hubs, WHK, home office

Meet on Leather Development, Sample and Sqft Needs, ETAs,etc

PO balance data is keyed from RPM report into excel spreadsheet

Email/phone is mechanism to resolve issues:

- Ship early, late

- FOB changes

- Supplier issues

- Ticket issues

Set up Development Spreadsheet: skin,tannery, skin#, ETAs,etc

Style Development

set leather production needs

Email updated leather production spreadsheet to WHK, hubs. Hubs communicate changes/ needs to Tanneries

MPS emails prenote spreadsheet to WHK, sort sheet by maker, breakout capacity by week

Tanneries create leather samples, sqft, status with Hubs

Set leather production needs/ timing

Tanneries begin creating leather

Letter of credit needs analyzed. LCs opened or adjusted

Email spreadsheet to WHK/Hubs: Hubs communicate to Tanneries

High level capacity review by maker, by tannery. Negotiate w/merchants

Email production spreadsheet to hubs, hubs communicate needs, timing to tanneries, submaterial suppliers

Typical Business Process

Specialists in PLM & Global Sourcing

analysis of typical operations
Analysis of Typical Operations

52% of the activities were non-value added, such as non-integrated fax, phone calls, spreadsheets, databases and emails

Significant opportunity for improved efficiency

Many Activities Require Supply Chain Partner Participation

Specialists in PLM & Global Sourcing

observations11
Observations

How well integrated are most companies ERP, Demand Management, PLM & Sourcing Systems?

Specialists in PLM & Global Sourcing

observations12
Observations

Specialists at PLM and Global Sourcing

solutions integrated end to end systems
Solutions – Integrated End to End Systems

Product

Lifecycle

Management

Customer

Order

Processing

Import

Management

& Sourcing

Inventory

Control

Financial

Accounting

Forecasting

&

Planning

Warehouse & Shipping

EDI

Reporting and Analysis

Workflow and Event Management

Collaboration

Exception Management

Apparel and Sewn Products Industry Specialists

design to sourcing key business needs
Design to Sourcing - Key Business Needs

Visibility

Collaboration

Timely Information

Breaking down organizational and cultural barriers

Information gap between departments

Managing event milestones

Performance metrics

Improve responsiveness

Factory Compliance Monitoring

Specialists in PLM & Global Sourcing

solutions visibility design to source

Product

Development

RFQs

and Bids

Pre-

Production

P.O.

Management

Production

Tracking

Quality

Control

Shipment

Packing

Inbound

Tracking

DC Receipt

Merchandising

Solutions – Visibility Design to Source

Centralized Data

Workflow and Event Management

Collaboration

Exception Management

Specialists in PLM & Global Sourcing

solutions metrics achieved
Solutions: Metrics achieved
  • 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%

Specialists in PLM & Global Sourcing

solutions metrics achieved17
Solutions: Metrics Achieved
  • 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%

Specialists in PLM & Global Sourcing