Choice Or Choice Of Two-Way Relationship In Textile And Apparel Supply Chain

In fact, textile and apparel supply chain management involves suppliers, manufacturers, distributors, retailers, Internet of things and consumers.

Challenge of supply chain

Supply chain management has both advantages and disadvantages.

From a good point of view, supply chain management enables orderly flow of logistics, information flow and capital flow. This not only brings specialization division to enterprises, but also concentrates the resources of enterprises in the field of advantage, reduces the input of unnecessary costs, and maximizes the value of all the stakeholders involved in the entire supply chain.

From the initial outsourcing process to the outsourcing of design, to the outsourcing of procurement, who can control the resources in the chain effectively, who will be able to get the right to speak and decide the trend of interest distribution and pfer risks to others.

The production enterprises should take more responsibilities, and the brands are in a strong position, leading the whole supply chain.

Developed countries such as Europe and the United States have now formed a very perfect supply chain management system.

In contrast, China's textile and apparel supply chain has yet to be improved to further optimize supply chain management.

With the increase of uncertainty in textile and apparel market demand, the parties should try to minimize the impact and risk of demand uncertainty. Supply chain partners should not only consider the paction price itself, but also deserve attention from many sides.

Chou Ying, Minister of Industry Department of Zhejiang Ya Ying Garment Co., Ltd. said that as a growing brand of women's clothing, Ying Ying is rather confused by the development of the supply chain.

First of all, the product of Ya Ying is more. It is nearly 4000 to 5000 SKU per year (stock unit, namely the unit of inventory entry and exit measurement). The product is divided into four lines.

The products of Ya Ying are characterized by small quantities and varieties, and they require fast speed, especially for filling sheets.

This leads to such a problem in its supply chain: the amount of fabric needed by Ya Ying is small, and the quantity required is about 1000 to 2000 meters per time, and 3000 to 4000 meters are considered a large number. This causes its position in the supplier to be "slight and slight".

Secondly,

Third, Ya Ying is a more fashionable brand, the fabric used to have a considerable popularity, some fabrics may not yet mature development will be used for production.

This brings a certain test to the quality of products.

In this regard, Qiu Ying believes that to make the brand sustainable development, the win-win cooperation in the supply chain is very important.

The parties in the supply chain are not simply trading relationships, but interdependent and common development relationships.

As Du Yuzhou, President of the China Textile Industry Association, said, "buyers, retailers and service providers are not isolated. They have both the right to choose and the risk to be chosen."

Chou Ying introduced Ya Ying to do a lot of work in order to strengthen the supply chain management.

Ya Ying has extended his IT to the supplier terminal, opening some strategic cooperation suppliers including warehousing rate, product inspection pass rate, product sales and other aspects, and really promoting the development of suppliers with the relationship of partners.

At the same time, Ya Ying put the advanced performance management mode into the supplier, and set up a balanced scorecard to the supplier every year (according to their respective conditions, according to the six or seven indicators of product qualification, product development, quality problem solving and so on, making different scorecards), if the supplier had abnormal situation in delivery a week or a month, in order to make timely feedback, communication, tracking, guidance, and form a benign interaction.

In addition, Ya Ying in the choice of suppliers, attaches great importance to the unity of values.

"We don't care about the price, but we must love this industry and work together for the fashion industry.

For long-term joint development, values must be unified.

Chou Ying said.

Miguel, executive manager of Xu Rong Group, said that Xu Rong would first let employees understand the importance of supply chain management, and provide some direct ways for employees to have a direct sense of supply chain in their work, while training employees in the supply chain related links.

Miguel also introduced that Xu Rong also learned from the international advanced supply chain management system and made changes according to the specific circumstances to adapt to its own reality.

It is worth mentioning that Huang Guanhua, executive director of Xu Rong Group, told reporters that in order to change the manufacturer's passive acceptance of brand requirements, Xu Rong actively changed from passive acceptance specification to collaborative designer of specifications.

According to Huang Guanhua, Xu Rong has created a "custom-made collaborative development" system to subvert the operation mode of previous brands.

"The advantage of this collaborative development mode is that when the designer of the brand is making what he wants, the downstream manufacturers of Xu Rong have stepped into his development, instead of waiting until the brand discussion is over, and Xu Rong passively accepts their specifications.

Next, all of our development is synchronized. For example, Xu Rong can participate in the planning meeting of the brand, and offer advice to the other side.

This product development mode allows Xu Rong to have the initiative.

Xu Rong calls this mode VFM, namely Value (value), Fashion (Fashion), Manufacture (Manufacturing), and is a popular marketing service of value.

Xu Rong's action is in line with this phenomenon: the leading supply chain is not necessarily the terminal brand business, but who has the ability to control resources and has the technical strength to gain more voice.

At the same time, a good phenomenon has emerged in the operation of the domestic textile and apparel supply chain: that is, a group of domestic processing manufacturers began to reverse the selection of foreign brands, and the upstream fiber and raw material enterprises also began to actively choose downstream enterprises.

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Social responsibility in the supply chain

Sun Ruizhe, vice president of China Textile Industry Association, said that social responsibility management includes harmony in labor relations, environmental harmony and harmony among stakeholders in the supply chain.

He once said that the social responsibility of China's textile and garment industry is an important manifestation of its responsibility and stability and optimization of the international supply chain and value chain.

It seems that supply chain management and social responsibility are not two isolated events.

Hu Kehua, deputy director of the office of social responsibility of the China Textile Industry Association, said that the supply chain management driven by social responsibility can effectively reduce the systemic risk of the supply chain.

"Management of employees determines their productivity.

Through analysis of supply chain, such as process analysis, production process analysis and improvement, enterprises can effectively shorten work hours, improve production efficiency and reduce costs, and solve some social responsibility problems in the supply chain.

Up to now, 44 enterprises have released the corporate social responsibility report, involving 10 sub sectors, including textile machinery, clothing, knitting, printing and dyeing, industrial use, silk, cotton spinning, chemical fiber, wool and accessories, among which 8 clothing categories.

Hu Kehua believes that for the core enterprises in the supply chain, social responsibility can be extended to product quality, style and even price.

"At present, the homogenization of all kinds of textile and clothing products is serious in China's textile and garment industry.

How do we become differentiated?

How can we improve our brand value?

Social responsibility can be a direction.

Social responsibility analysis can be clearly incorporated into the analysis of supply chain.

Supply chain is actually more value management.

From the product point of view, we can find many "managed and promoted" spaces in the product's life cycle from its procurement, R & D, design and manufacture.

For example, in textiles, from basic fiber to printing and dyeing, to manufacturing and sewing, the whole process has much room for improvement.

In this process, the improvement of the technological process, such as how to reduce the frequency of washing, save water and reduce the damage to the environment, should also shorten the work hours and improve the welfare benefits of the employees.

In the supply chain, enterprises are not only required to take social responsibility, but also to increase the added value of products.

Such an example is well documented.

Zhejiang's Limited by Share Ltd has its own set of ideas in developing supply chain and seeking differentiation.

In 2007, Fu Li Da and Xinjiang Yu cotton company cooperate to form Xinjiang Fu Li Da fiber Limited company, total investment 1 billion 500 million yuan, has formed the annual production viscose staple fiber 100 thousand tons, as well as the matching thermoelectric project and so on circulation industry chain.

In 2010, Xinjiang made a total of 118 thousand tons of viscose staple fiber, realized sales revenue of 2 billion yuan, and the total profit after tax was 123 million yuan.

In the face of raw material crisis in recent years, the company actively seeks other resources instead of traditional raw materials.

According to the rich pulp resources of the world, the first successful pulp and paper processing and dissolving pulp was used in production.

At present, the company of Xinjiang has reached the ratio of 45% to 60%, which not only solves the problem of shortage of pulp raw materials, but also greatly reduces the cost of production. The price of paper pulp is reduced by nearly 1/3 compared with that of dissolving pulp, and the economic benefit is significantly improved.

After approval by the national development and Reform Commission and the Ministry of Commerce, the company has successfully acquired the shares of the upstream resource enterprise of the industrial chain, Canada's new special cellulose Co., Ltd. for $250 million, and has become a successful example of cross-border "resource based acquisition".

The company is one of the suppliers of the company. It is a professional manufacturer of wood dissolving pulp (commonly known as wood pulp) and one of the 3 companies in Canada to produce special dissolving pulp.

Through this acquisition, the company fully owned and controlled the company's assets and raw material procurement channels, and all production, operation and distribution networks, effectively solving the bottleneck constraints of raw materials.

The company has successfully entered the upstream raw material industry of viscose fiber, gained stable supply of raw materials for viscose staple fiber production, and enhanced its "right to speak" in the viscose staple fiber market.

Jiangsu Dan Mao textile Limited by Share Ltd in 2010 to carry out technological pformation of production capacity equipment, the company has reduced COD emissions by 20 tons, reduced ammonia nitrogen emissions by 7.5 tons, reduced emissions of suspended solids and other emissions by 21 tons, saved about 200000 tons of water, saved about 300000 yuan of water charges, and reduced pollutant discharge fees by 100 thousand yuan.

At the same time, the production of worsted fabrics in 2010 was 81.04 tons / km, 4.58% lower than that of 84.93 tons / km in 2009, 2315 kilowatt hours / kilometre of electricity, 5.32% lower than that of 2445.2 kwh / km in 2009, and 1.546 tons / km of coal, 4.45% lower than that of 2009 1.618 tons / km.

From this point of view, from the perspective of social responsibility, it is also a good choice to seek the optimization and upgrading of the supply chain, increase the added value of products, and practice the energy conservation and environmental protection.

More importantly, the era of low cost competitive advantage formed by China's textile and garment relying on cheap labor force has been fading away, and environmental protection, resources and land constraints will become more prominent.

In particular, at present, more than 90% of raw materials for chemical fiber production come from oil. China's dependence on imports of crude oil and chemical fiber monomer is difficult to change in the short term.

Therefore, the circular economy development mode of "reduction, reuse and resource utilization" is imperative.

Association voice:

Every link in the supply chain has its own way of success.

In recent years, the research on supply chain has become more and more professional and systematic in China's textile and apparel industry.

How to optimize supply chain management and choose the right suppliers becomes the key and difficult problem to improve the competitiveness of the industry.

In the current situation of raw material price fluctuations, labor costs and domestic inflation in China's domestic market, what is the situation facing China's textile and apparel industry?

Where is the breakthrough of its development?

On the related issues, after the "2011 global textile and Apparel Supply Chain Conference" ended, our reporter interviewed Sun Ruizhe, vice president of China Textile Industry Association.

Reporter: in May this year, macroeconomic data showed that China's textile and clothing exports have slowed down.

This year's domestic demand, according to the current economic situation, the textile and clothing domestic market may also be affected.

Then, what kind of development situation will our industry face in the latter half of the year?

Sun Ruizhe: from the whole industry, the era of high cost will become an irresistible "new normal", which contains determinate and uncertain factors.

Among them, the outstanding performance of uncertain factors is the uncertainty of policy orientation.

Most of the textile and garment industries are small and medium-sized enterprises. Their ability to analyze market expectations is weak. Therefore, the industry should help enterprises to carry out policy assurance.

In particular, the export tax rebate rate, the industry has repeatedly communicated with the relevant departments of the state, it is recommended not to introduce a downward adjustment policy, because this will cause great impact on the development of the industry.

The policy environment of ups and downs will bring uncertainty to the development of the industry, and the panic caused by this uncertainty will destroy the development of the industry.

Policy stability is the most important factor for the steady development of an industry.

In view of the financing difficulties of SMEs, the industry is also actively working.

Judging from the overall credit rating of the industry, it is much lower than last year.

So in the second half of the year, you may be concerned about whether the policy orientation will be loosely oriented.

At present, some banks are already in active contact with us. They hope to cooperate with the industry, and in the light of small and medium enterprises, let the industry recommend some enterprises with better qualifications and better development potential to strengthen their loan support.

In addition, the determinate factor is the continuous rise of costs and the arrival of the era of high cost.

Enterprises must be able to control their costs and maintain their competitiveness through measures such as raw material selection, technological development, and the use of financial instruments.

If product development and technology can not solve the problem, enterprises should make breakthroughs in the choice and innovation of business mode as far as possible.

"Have the strength to move up, walk patiently down, have the courage to go across the border, do not see clearly follow."

No matter what links the enterprise is in the supply chain, there are opportunities for success.

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Reporter: you mentioned the business model.

Will the business mode affect the supply chain of textile and apparel?

Sun Ruizhe: at present, there is a strange phenomenon in the industry: the price of Chinese made goods in Chinese department stores is probably higher than that of foreign department stores.

This is a phenomenon of high price. Consumers are not benefiting from it, which inhibits consumers' desire for consumption, and enterprises are also attached to many unnecessary business costs.

The business model of China's department stores actually has a big room for improvement.

However, there are actually some new business models.

For example, the wholesale market of the central city has shifted sharply to retail. Its representatives include Dahongmen, Guanyuan and zoos in Beijing.

They used to do B2B, and now they are actually doing B2C mode. Directly facing the vast number of consumers, will this new business model turn into a specialized shopping center similar to foreign countries? We will wait and see.

In addition, online shopping is also a new business mode. Textile and apparel are ranked first in online shopping in China.

These new business models will bring new opportunities to the development of the industry, while attacking the unhealthy aspects of the original business models and forcing them to improve.

Reporter: now the domestic network is more and more developed, and the manufacturing level is higher and higher.

Under such circumstances, how will the future supply chain affect the textile and garment industry?

Sun Ruizhe: this should be discussed from the perspective of rapid information sharing in supply chain management.

In the supply chain management, a more realistic problem is the pmission and sharing of information.

In the past foreign trade links, we know more about the electronic data interchange system (EDI).

With this system, products can be processed to a certain stage and can be grasped in this process. If there is a problem in any link, it can react quickly and quickly.

However, there are still many imperfections in the supply chain management in China.

Supply chain management has just started. We aim at four aspects: quality management, social responsibility management, information management and integrated innovation.

Reporter: you mentioned integrated innovation.

What is the current situation of integrated innovation in the industry?

Sun Ruizhe: from the industry level, since the beginning of 2000, the industry has not only started the research on the trend of popularity, but has begun to assemble a number of excellent enterprises. Now, our industry has already had 108 excellent base enterprises for product development.

At the same time, the industry in the quality system, social responsibility management system construction, are actively establishing a trade platform that can link up and integrate innovation.

From the enterprise level, such as Tianzhu fiber alliance, it is the production of Tianzhu fiber enterprises and fabric enterprises, the next step will include some clothing brand enterprises, we gather together, around bamboo fiber, to develop to meet the market demand, also for the market favored products.

Its products are not only limited to traditional towels, bath towels, etc., but now this field has been further extended to home textiles, clothing and other fields.

This is a relatively successful integrated innovation mode.

The industry is also actively working with the Ministry of science and technology to declare some technological alliances for industrial innovation.

At present, the field of fiber material and chemical fiber has been launched, but the next step will be extended to the fields of industrial textiles, fabrics and other related industries, and form related industrial innovation and technology alliance in the industry.

Reporter: for "industry development is downstream demand driven upstream innovation", how to understand this sentence?

Sun Ruizhe: we can not simply say that the downstream demand driven upstream innovation.

Any demand will drive innovation, but it is not a simple and downstream problem.

Problems such as substitution of raw materials and innovation in the use of financial instruments are actually the contents of innovation.

During the "12th Five-Year" period, the total fiber processing volume is expected to reach 51 million 500 thousand tons, and the per capita fiber consumption will reach 22 kg.

This increase in consumption demand will bring huge demand for raw materials, but it is impossible for us to convert arable land into cotton fibers and other natural fibers.

Therefore, we should develop and innovate in high imitation cotton and super Imitation cotton.

In addition, the use of financial instruments should be popularized in the industry.

But in fact, many enterprises do not combine effective financial instruments with production operations.

In terms of foreign trade, enterprises use more financial instruments in order to avoid risks, such as forward foreign exchange and export credit guarantee.

Therefore, in the future, the industry will generate many innovations not only at the technical level but also at the operational level and financial management level.

Reporter: please talk about green management from the perspective of supply chain.

Sun Ruizhe: on the one hand, we should carry out a more systematic implementation from the relevant national laws and regulations, that is, we should strengthen supervision.

More importantly, our industry itself.

The industry itself has to do two things, one from the industrial chain, which is the upstream of the terminal brand to force the industrial chain, and we all abide by the standards and rules of green supply chain management.

Second, voluntarily and voluntarily. Corporate social responsibility should be self disciplined, and enterprises should carry out social responsibility management.

Because social responsibility management includes harmony in labor relations, environmental harmony and harmony among stakeholders in the supply chain.

Smart message board

Social responsibility is the character of the supply chain.

The competition in the supply chain comes first from the power of science, followed by the combined forces in the supply chain, and finally to the productivity techniques pferred to the machine.

The process of supply chain embodies the modern people's understanding and pursuit of beauty, and the supply chain also embodies the true, the good and the beautiful.

Supply chain can create beauty and convey love, which is also the people-oriented principle embodied in supply chain.

Du Yuzhou, President of China Textile Industry Association

Under the "new normal" of high cost, two phenomena need special attention.

First, the advantage of factor cost is gradually diluted, which means that the concentration of existing advantages is decreasing. Two, the trend of industrial polarization is gradually intensifying, which indicates that the density of high-quality resources is improving.

We must adjust our excessive reliance on the original advantages and create a new core competitiveness, that is, effective supply chain management capabilities, including timely discovery of resources, effective integration, openness and sharing, and the ability to continuously increase resources.

Sun Ruizhe, vice president of China Textile Industry Association

To be a supplier is to make a good brand.

It's not just a product brand sold by a department store, but also a service that a company must manage, how to treat employees, give back to society and promise its guests.

Suppliers must have corporate culture and social responsibilities, and eventually they will be willing to be your partners.

- Dr. Che Ketao, vice chairman and CEO of Hongkong Yida group.

We choose suppliers with their own set of standards.

For example, we will see if the other party has its own laboratory, so that we can immediately check their cloth situation and the actual cost.

We should look at the management situation of the other side to see if they have continuous research and development in management, whether there are advanced management methods, whether they are financially stable or not.

At the same time, we attach great importance to the environmental protection concept and environmental management, while product quality is important, but a responsible company is more important.

Zhu Dexiong, senior vice president of Hongkong joint garment sales and marketing

The supply chain has extensibility and efficient output.

And efficient production comes from professionalism.

The company's headquarters moved from Fujian to Shanghai because Shanghai has a larger business platform and can gather more industry elites to do more professional things.

Professional will involve business management, procurement management, production management, quality management and technological innovation.