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Index Material World [TC]² Activity - Material World Sourcing Strategies Member Profile - New Generation Computing, Inc. Important Dates A Look Ahead

Material World

 The spring Material World/Technology Solutions conference was held at the Miami Beach Convention Center from March 16-18. Attendees came from all over the world with a large proportion from Latin America. There was an increasing presence from Asian and Indian companies. The exhibits were lively with contractors, manufacturers, and fabric, findings and fiber producers displaying their products and services.

[TC]² participated in the Technology Solutions area with a booth containing demonstrations of lean manufacturing, SizeUSA, Techexchange and Tru Quick Cost. Pictured here in the [TC]² booth are Jud Early and Jim Lovejoy with two marketing alliance partners, Greg Rowland of Mindworks Multimedia on the left and John Stern of Methods Workshop on the right.

Other exhibitors were showing solutions for Product Lifecycle Management (PLM), supply chain management, Enterprise Resource Planning (ERP), and new body forms. The first issue of the SEAMS Association “Made in USA Apparel Product Catalog” was released with products available in small minimum quantities and quick deliveries.

In the Technology Solutions Theater, David Bruner presided over a series of presentations on “3D Coming of Age”. [TC]² presented the NX-12 3D Body Scanner and where it was being deployed as well as the 3D to 2D pattern making technology. Other 3D technologies were presented by Lectra, Browzwear and Optitex. Jim Lovejoy moderated a panel on supply chain management called “A Check-up on the Health of Global Supply Chains” sponsored by the AAFA Supply Chain Leadership Committee. A brief history of the Committee preceded the presentation of three critical supply chain challenges. Alan Brooks, President of New Generation Computing, presented an informative and humorous overview of supply chain management with an emphasis on supply chain visibility. Ed Eskew, Vice President of Information Technology at Bernard Chauss, outlined the three different supply chain apparel models used for mass market, mid-market and luxury fashion retailers. Kurt Cavano, Chairman and CEO of Tradecard Inc., explained the advantages of supporting the product and information flow in the supply chain with a financial supply chain solution.

The AAFA sponsored two breakfast sessions called the “Executive Sourcing Summit” and “Regional Sourcing: The Producers Perspective” which are covered in another article in this issue of the newsletter.

There were several evening social events, notably the AAPN sourcing executive reception at the elegant Versace mansion in South Beach and the AAFA, New Generation Computing and Foxfire Technologies cocktail reception in the convention center.

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[TC]² Activity

Sourcing Strategies at Material World

Miami was the location, and Material World was the site of two executive roundtable discussions. Urban Expositions, producer of Material World, partnered with AAFA on the Wednesday session, while AAPN was the co-sponsor on Thursday. Both were well attended, and with multiple viewpoints, attendees were left with various scenarios to consider.

Kevin Burke of AAFA served as moderator of the Wednesday Executive Sourcing Summit. Asking seven questions, executives from Jones Apparel Group, Perry Ellis International and Phillips Van Heusen shared insights and anecdotes. The stage was set by the topic “Operating in a non-quota environment”. Questions such as “What kind of anti-surge protection do you expect?” were answered in differing ways. One said that he expected some sort of safeguard action by the U.S. , while another stated that he believed that we will not see as much as some had hoped for. Another felt that currency devaluation by China was needed, that they need to rebalance with other world currencies, and as a result, pressure on the U.S. to reduce balance of trade deficits will occur. Another expects to see anti-dumping action, while another executive feels that safeguards will not be immediate. It is felt that although China has 20% of the U.S. textile market, the surge in products will not be enough to cause our government to enact safeguards.

In response to a question of direct shipment to stores, two companies stated that they were doing some, and accepting the accompanying problems that occur with overloaded ports and logistic problems that occur without warning. The third company executive stated that they need to replenish from their own distribution centers, since it is not as effective to do replenishment using direct shipment. A lot of retailers seem to be interested in taking delivery further upstream in the supply chain. Private label and private managed brands provide opportunities to collaborate in shipping, and may lead the way to consolidation of shipments to stores or distribution centers where individual suppliers do not have a full container load of goods, but others in the region can co-ship within the same container. This obviously presents some interesting documentation and customs situations, and will need to have a high degree of cooperation among the shipping parties.

“How do you feel about selling your products in China?” To this question, two companies said they already do so, and that their products can be seen in major stores along shopping streets in Shanghai. Some goods are also on display that are not authentic, and brand owners are working to identify and obtain cooperation from the authorities to seize counterfeit goods. There is a growing middle class in China, and even among the working class, some sewing operators who sew branded products for the U.S. market are buying the same brands for personal wear. This is a marked shift from days of low-paid workers who toiled producing goods for the foreign markets, but could not participate personally.

A general comment was made that branded producers need to make product to fit the size and shape of the demographics of customers in foreign countries. It is obvious that clothing made for Americans is not well suited for certain Asian people.

“Counterfeiting is a problem. How is it impacting your company?” asked Kevin Burke. While one brand owner stated that he doesn't get involved in this problem, others said it is a big problem, and that they spend large amounts of money with hit teams, lawyers, and the U.S. government fighting the fakes. It is felt that a high level awareness of intellectual property exists among the executives of foreign manufacturers, but that in the lower ranks there is much disdain and a disregard for ethical operations.

To the question of “CAFTA, if enacted, will your company place or keep more work in Central America?”, there seemed a consensus on the value of Central America for logistic preference, where cost becomes less of a concern, and speed to market is seen as highly important. A difference of opinion between two executives was manifest by one taking the position that fashion products with high needle time will still be done in Asia, while another executive voiced the opinion that not only staple goods, but fashion will flow from Central America if CAFTA is enacted. The most important issue for the industry is if the bill is not passed, it will accelerate erosion of Central America. Opinion is that the bill is not perfect, but factories in Central America must remain in operation. There should be a tremendous opportunity for investment in Central America if the bill is passed. No new development in textiles is being done today.

The question “What does Central America have to do if the bill is passed?” was met with “great opportunity in replenishment if textiles are made locally.” Fashion items in synthetic fabrics are a big opportunity, as is seen in Guatemala today. The “pull-system” is also seen as a benefit to work produced in Central America. Inefficiencies must be taken out of the supply chain.

Much discussion around trade preference and the impact on companies had no central theme, and responses from executives varied widely. These comments will not be included here, as conclusions will not be easily drawn.

The following day, co-sponsor AAPN fielded four executives from countries that supply the U.S. market with roundtable moderation by Joseph P. McConnell of Kellwood. Represented were China, Columbia, El Salvador and Morocco. Due to the conversational mode of this roundtable, the following are comments and generalities that were gleaned from fast moving exchanges.

Fiber from local sources is important. There has been significant conversion to full package in the region. Far East manufacturers have driven this movement. In a recent tour of Central American plants, a lot of Asian equipment was seen. This, in contrast to a few years ago where German equipment was more common. This speaks well for Asian technology developers.

The challenge for Morocco will be whether they can take 12 to 24 months to develop markets. Obstacles are cultural differences. All synthetic comes from Asia and Turkey. Morocco is installing denim plants and denim washes.

One executive from Central America stated, “we are in a deeper darker place right now- why not say it?” He was met with laughter, but the levity of the situation was not overlooked. In the past twelve months, his company has invested in integrating all of their companies under one corporate umbrella, built product development center in El Salvador, and another in Miami to be closer to the customer. Both are linked electronically, to facilitate collaboration and load sharing. There is a severe mandate to grow at what is seen as a risky speed. Each survivor will have to grow by 90% if customer reduces vendors to 10%. Have had to cut some corners against our will. Systems require a large investment. Companies must move into more modern equipment in both textile and apparel. This company has added human resources from banking sector, as this sector is usually more technologically advanced than any manufacturing business.

Another commented that “the strength of our industry today is due to China pushing the envelope.”

The comment, “China is facing inflation like it has never seen before” was made by yet another panelist. In the past five to ten years, the Chinese government has privatized a large number of companies. This executive doesn't think that trade figures that we are seeing here are accurate, that some of the surge in imports may be coming from inventory, and should subside after decimating pricing here. Operators of lower segment of industry are not using sophisticated systems and equipment. Numerous factories of 50 to 300 people are springing up all over China.

With the wide ranging topics and free flow of conversation, the above represent the feelings of participating executives, and should be considered carefully when formulating strategies for your companies. Both headliner events served well to bring such opinions to a public forum. The organizers and co-sponsors are to be complimented.

Comments and observations by Jud Early, [TC]²'s Corporate Vice President and Chief Technology Officer

[TC]² Celebrates 25 Year Anniversary

On March 29th, [TC]² held its Annual Meeting of Members and the Board of Directors, which was followed by a 25th Anniversary Open House and Reception. The event was sponsored by: American & Efird, Asheboro Elastics, Cognis Corporation, Cotton Incorporated, Eton Systems, Gerber Technology, Lectra Systems, Methods Workshop, New Generation Computing, Paxar, and SPESA. Over 150 people, including members and industry colleagues, student interns, faculty fellows, and former and current staff were on hand to enjoy reminiscences presented by Dr. Fred Abernathy of Harvard University, Dr. Roger Gilbertson from the U. S. Dept. of Commerce, and [TC]²'s Jud Early. Photos and a more in-depth coverage of the events will follow in a future newsletter.

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Member Profile

New Generation Computing, Inc.

Established in 1982, New Generation Computing, Inc. has earned a reputation for excellence in specialized software solutions for the sewn products industry. Even with the increased pace of computer technology over the past few years, NGC has stayed in stride with the evolving technology with its large development staff. As members of the American Apparel and Footwear Association (AAFA), [TC]², National Retail Federation (NRF) and the American Apparel Producers Network (AAPN), NGC is connected to the pulse of the apparel industry. [TC]²‘s Tim Curran remarks that the relationship with NGC is nothing less than invaluable. Headquartered in Miami, NGC has sales offices worldwide. Its customers include VF Corporation, Dick's Sporting Goods Inc., Wilson 's Leather, Jos.A. Bank Clothiers Inc., and Russell Corporation.

With a wide range of applications for the sewn products industry, NGC always has the latest software solutions. From the factory to the internet to the office, NGC has an application that can work for any part of a company's business. A wholly owned subsidiary of American Software Inc., and Foxfire Technologies Corporation, NGC introduced a warehouse management system on March 17, 2005 called DCCS. This Distribution Center Control System provides users with “stem to stern” operational control of all logistics functions. Enhancing users' capabilities to ship customers' orders on-time with near accuracy and with all required advanced electronic shipment notifications makes this an exciting release for NGC. Alan Brooks, NGC's president said, “We developed the system in collaboration with Foxfire to provide companies in the sewn products industry with a seamlessly integrated warehouse solution.”

Manufacturers, brand managers, retailers and importers use NGC's business applications to manage the design, sourcing and production of finished products. NGC's business applications include the NGC SQL Series, the only integrated product development, global sourcing and ERP system that is available today to sewn products enterprises. The NGC SQL Series consists of e-SPS, a global sourcing and production system; e-PDM, a product lifecycle management tool; and RedHorse, a comprehensive ERP system. NGC's other products are EZ-Ship, a labeling, scan/pack and shipping system; e-RMM, a raw-material management system; TPM, a shop-floor control and manufacturing execution system; AMAS, a specialized apparel business control, accounting, import management and MRP system; and Full Package.

For more information call NGC at (305)556-9122, or visit www.ngcsoftware.com .

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Important Dates

April

May

June

For detailed information about industry events, visit www.techexchange.com

Thanks to the techexchange site sponsors Blinco Systems Inc., Gerber Technology and Methods Workshop.

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A Look Ahead

May 24-25, 2005

AATCC/[TC]² Symposium

Printing 2005: A Digital Reality

View previous editions of this newsletter

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