Apparel Industry Trends, Challenges, Observations and Solutions

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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
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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
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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
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Customers
Customers
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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
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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 todays world
• Collaborating effectively in a 24/7 world

Specialists in PLM Global Sourcing
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Observations
Have most companies achieved Speed to Market?
Specialists in PLM Global Sourcing
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Typical Business Process
Specialists in PLM Global Sourcing
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Typical Business Process
Specialists in PLM Global Sourcing
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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
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Observations
How well integrated are most companies ERP,
Demand Management, PLM Sourcing Systems?
Specialists in PLM Global Sourcing
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Observations
Specialists at PLM and Global Sourcing
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Solutions Integrated End to End Systems
Financial Accounting
Product Lifecycle Management
Customer Order
Processing
Import Management
Sourcing
Inventory Control

Forecasting Planning
Warehouse Shipping
EDI
Reporting and Analysis
Workflow and Event Management
Collaboration
Exception Management
Apparel and Sewn Products Industry Specialists
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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
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Solutions Visibility Design to Source
Centralized Data
Workflow and Event Management
Collaboration
Exception Management
Specialists in PLM Global Sourcing
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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
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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