Chinese Textile And Garment Enterprises: Win In Supply Chain Management

At the "2011 global textile and garment supply chain conference media briefing" held in June 13th,

It is understood that the "global textile and Apparel Supply Chain Conference" has been successfully held for three sessions since 2008.

Each year, the conference will focus on the key words of the supply chain and discuss the problems involved in the supply chain of textile and apparel, playing a role as a booster in enhancing the competitiveness of the supply chain.

The relaxation and gradual development of supply chain management will be China's textile and apparel industry.

In fact, supply chain management has formed an orderly flow of logistics, information flow and capital flow, so that all stakeholders in the entire supply chain can achieve maximum value and share resources.

The development of international supply chain, from initial outsourcing to outsourcing, and outsourcing, is actually a process of responsibility and risk outsourcing.

Domestic supply chain management will also follow this road.

In the process of development, the party with strong resource control capability in the supply chain will dominate the right to speak.

The upstream and downstream of supply chain: the contradiction between "slow cycle and fast fashion"

China's textile and garment industry is the longest industry with single industry chain. It involves many links, such as spinning, weaving, dyeing and finishing, batch production, brand marketing management, channel management, logistics distribution, after sale management of retail terminal.

Therefore, from the point of view of supply chain, the most ideal mode is to "sell in production", that is, production and sales.

"However, this can only be achieved in the context of a shortage economy.

For textile and garment industry, which is fully competitive in the market, it cannot be realized by fixed sales.

Sun Ruizhe reminded.

In the industry chain, the more the downstream of the chain goes, the more obvious the market demand will affect the release of its capacity and the order. Enterprises must organize production according to their downstream needs, and form a quick response according to orders. This is the so-called "order production mode", which requires direct response to terminal consumer demand, and requires quick response to orders, and there are also many uncertainties.

However, the upstream direction of the industrial chain has the opposite situation - the longer the upturn, the longer the production cycle that enterprises need to organize. (a typical example is that the fashion trend is released 6 months ahead of time, the fabric trend is released 12 months ahead of time, the yarn is 18 months ahead), and the accuracy of the market judgement and control will be quite tested. This requires a company to make a prediction for a relatively long future and supply the downstream through the production inventory mode. This is a "planned production mode". It has a relatively long cycle in production, that is, "slow cycle".

The opposite result of the upstream and downstream industry chain is that, for the whole industrial chain, from the perspective of production organization, the contradiction between "slow cycle and fast fashion" is finally formed.

How to solve such a contradiction? Sun Ruizhe said that making effective predictions through effective demand in the market is feasible in theory, but the reality is not so.

According to his investigation, it is found that market demand may not be truly reflected in the operation of the entire supply chain, and there is no strict one-to-one correspondence between raw material price trend and supply and demand relationship.

"In fact, sometimes the market demand has a illogical influence on the order of the upstream enterprises and the trend of raw material prices. The influencing factors will involve social economic situation, policy effect, and the alteration of capital market, all of which will cause severe challenges to the industrial chain.

Therefore, supply chain management is not only a technical problem. "

Sun Ruizhe said.

It is worth mentioning that when it comes to fast fashion, Fu Guang Wei said that the quality of some international fast fashion brands is not too good now. We must rationally realize that the quality of clothing brands at home and abroad reflects the management level of the entire supply chain.

Therefore, effective quality management is still the most important part of supply chain management. No matter the speed of fashion, we should not lose the bottom line of "quality".

Sun Ruizhe also believes that fast fashion should not be based on the premise of sacrificing the quality of products. It should not become synonymous with low quality and short fashion.

Optimizing supply chain management: four pformations under the general trend of Industrial Development

The development of various parts of China's textile and clothing is unbalanced, the advantages of the intermediate production and processing links are more obvious, and the capabilities of R & D and brand marketing at both ends are relatively weak.

In an interview with reporters, Sun Ruizhe pointed out that, in view of how to optimize the supply chain of textile and clothing in China and make it relatively healthy and stable, supply chain management should solve four problems --

First of all, brand competition from the past point to point (individual to individual) is pformed into the competition between system and system (industry chain to industry chain).

That is to say, with professional division of labor, Chinese clothing brands should enter the stage of "system competition", including product production, design, research and development, sales, logistics, information management, and channel construction.

This will be a more competitive and more complicated competition.

For example, the domestic sportswear giant, Mts. Bang Wei, is an excellent practitioner of the supply chain system competition.

Although the United States has implemented the "virtual operation" light asset operation mode, it has never loosened its grasp of some key links in the supply chain. Besides building self owned stores in some key cities, the United States has also built a logistics center, invested a lot of capital and resources, and introduced information management tools in the supply chain, such as installing chain information system for the terminal of the joining channel, introducing ERP management system to the generation plant, etc.

Secondly, we should form a relatively open platform from the relatively closed and simple cooperation between buying and selling in the past, so that the interests of the whole supply chain can participate in product development, price formulation, integration and innovation.

For example, Apple's advantage lies not only in its technological advantages, but also in its ability to open its software development platform and allow the whole society to participate.

It breaks through the closed self research and development team and forms a technological development platform that is open to the whole society.

Thirdly, supply chain management should pay attention to the pformation from tangible innovation to invisible innovation.

In the past, the industry paid more attention to some functional innovations, such as quality, technology and so on.

But with the development of the industry, the product should make more efforts in the aspects of energy saving, emission reduction, emission reduction, sustainable consumption, and business mode innovation.

Finally, we should change from disorderly competition to orderly competition.

In the past, the industry emphasized too much competition on price competition, and there would be vicious competition. This not only disrupted the market order, but also affected the development of the industry.

Therefore, orderly competition is imperative, including the protection of intellectual property rights, the construction of harmonious people oriented labor relations, the harmony of environment and the harmony of supply chain.

Extended reading

"2011 global textile and Apparel Supply Chain Conference" held in July

On July 22nd -23, the fourth "2011 global textile and Garment Supply Chain Conference" will be held in Keqiao, Shaoxing, Zhejiang.

This conference takes "supplier selection and optimization" as the theme, will explore how to strengthen supplier management, choose the right suppliers, ensure the quality of procurement and reduce procurement costs; how to strengthen supplier management, so as to establish a partnership between buyers and suppliers, enhance the agility of suppliers' response to customer needs, establish a rapid reaction system between upstream and downstream enterprises, shorten the procurement cycle, make production agility and lean, enhance the competitive advantage of enterprises in the same industry, and create the core competitiveness of enterprises.