Supply Chain Enabling Subcommittee

1
Supply Chain Enabling - Subcommittee

• AAFA/ISC Fall 2008 Committee Meeting

Members Brion Carroll/PTC
2
Industry Update Topics

• VICS/CMSS Initiative
• Topic 2
• Topic 3

3
VICS/CMSS InitiativeBackground Overview

• CMSS Collaborative Material Specification
  Standard
  
• Material Specification Standard - based on
• GS1/HK AppTex Standard
• Committee has been in operation since 2005
• Members include PTC, Fountain Set, eBizPrise,
  Nike, KSA, Dillards, Liz Claiborne
  
• Proof of Concept in development (Starts Dec/08
  for 6-8 months)
  
• Nike (Retailer), Fountain Set (Fabric Supplier)
• PTC (PLM-Retailer), eBizPrise (Supply Mgmt
  Supplier)
  
• Validate fitness of AppTex standard
• Validate the Use Case applicability
• Validate Multi-system integration
• Additional Retailers/Suppliers to be added in
  months 4-6

4
VICS/CMSS InitiativeAppTex Standard
5
VICS/CMSS InitiativeAppTex Standard

• Standardize the specification for 7 Raw
  Materials
  
• Button
• Interlining
• Knitted fabrics
• Labels tags
• Thread
• Woven fabrics
• Yarn

6
VICS/CMSS InitiativeCollaborative Environment
The systems are able to exchange the detailed
Material Specification using the CMSS (AppTex)
format, ensuring clarity of the materials
definition without requiring either system to kn
ow the other systems detailed data model defini
tion.
7
VICS/CMSS InitiativeCurrent Problems

• 50 of the Material identification process not
  value added back and forth textual/phone
  communications
  
• 50-60 of daily work hours on phone calls,
  emails.
  
• Average cycle time 37 days (max-60 days)
• Potential missing information 18
• Potential Errors 20
• Restrict capabilities in global sourcing

8
VICS/CMSS InitiativePerceived Operational
Benefits

• Reduce phone/email communications to 10
• Reduce cycle time to approx 7 days
• Increase material (product) offering-e.g. from 20
  materials to 30-40 materials.
  
• Eliminate missing info and errors
• Re-align staff to other value added jobs e.g.
  innovative material development
  
• Increase operation efficiency
• Facilitate Global Material sourcing
• Enhance material source traceability

9
VICS/CMSS InitiativePerceived Cost Benefits

• Reduce operating cost by approx 50
• Reduce Material cost by approx 30
• Increase sales by approx- 30
• Reduce Markdown by approx 60-80