Garment Industry Must Increase Production Efficiency To Offset The Impact Of Rising Clothing Prices.

Procurement

At present, wage rises, labor shortages, high freight rates, rising currencies, and soaring prices of cotton and synthetic fiber have long been the reason for the long-term decline in ready-made clothing prices in the past more than 10 years.

However, according to the Prime Source Forum, which was held by the senior executives of the clothing industry in Hongkong on March 30th (~4), on the 1 day of March 2011, although the bad news is that the production cost seems to keep rising, the good news is that the garment supply chain still has a large gap, which can be offset by the adoption of a new way to enhance efficiency.

Kevin Burke, President and executive director of the AAFA, said that "it can be a good thing to challenge enterprises to think from different aspects".

Qu pointed out that although the cost of goods and labor rose, these production factors accounted for only a small part of the cost of the product.

The canal said, "think about all aspects of design, product development, administration, retail and marketing costs".

Ed Gribbin, President of Alvanon Consulting group, global shape and size expert, agrees that inflation may be an opportunity for companies to change their way of doing things.

"In terms of product development, sales and procurement, our efficiency is so low that we have to make changes."

"Some sales practices or bad procurement results are inefficient," he added. "If you can reduce the products and put the product into the market faster, you can solve some problems effectively, which is one of the successful reasons for Inditex, a clothing retailer in Spain."

Stephen Forte, managing director of the global sales department of sewing line manufacturer Coats, said, "buyers must be more efficient in purchasing, because they can no longer get profits from clearing merchandise discounts".

Christophe Degoix, chairman of the purchasing Committee of the French Chamber of Commerce, said: "as a buyer, we have a strong sense of responsibility and there is still much room for improvement in saving our factories.

We must examine the efficiency of our internal work, the number of samples, the design changes, the delivery of materials in the plateau, etc. "

Production efficiency is becoming more and more important. Veit Geise, vice president of Asia Group, VF group, said, "we are constantly trying to encourage our suppliers to invest in efficiency and internal engineering".

As a retail companies with manufacturing background, VF group produces two of its jeans, which are still produced in 25 factories in Mexico.

"When you produce 95 million jeans a year, they become a commodity. You don't want to lose because they are small."

The canal added that VF moved the 3 production lines built by the company to a supplier factory in Bangladesh.

6 months later, the productivity was the same, but the number of employees employed decreased by 40%.

The canal sighed: "therefore, through ideological and engineering changes, we can significantly increase efficiency and reduce costs. Our company employs 157 engineers worldwide, but I see that many factories employ even one engineer, even if they hire engineers, and they are not allowed to really change."

Stephen Forte added, "not only is the efficiency of the supply chain very low, but also the production line and production process.

Many factory managers and managers have thought about speeding up the production speed of machines 20-30%, so that the output can be increased.

"Since we have not seen inflation since 70s, we are concerned about a new economic world order and re engineer the new production efficiency to improve the production process and quality of the products and increase production efficiency by an average of about 20%".

"In the past, factories might not have changed the needle of textile machinery to improve productivity, because factories could put more manpower into production, but now they can no longer do that."