Clothing Industry: Cost Too High "Vow To Die" Decisive Battle Supply Chain

The "system competition" of factors such as product production, design, research and development, sales, logistics and distribution, information management and channel construction has been quietly in China.

Huang Derong, owner of Heyu clothing company in Pinghu, Zhejiang, has been somewhat helpless recently because his warehouse is worth about 50000000 of the goods.

The more than 2000 garment manufacturer has won by virtue of its highly qualified staff and advanced manufacturing technology.

For garment processing enterprises, the 3 and April are off-season, basically in the state of spending money to support workers.

But in March of this year, the old customer UNIQLO was out of the ordinary and moved down the large order in advance, which gave Huang Derong some sense of timely relief.

But when the list was ready, UNIQLO did not come to pick up the goods.

This product has been stacked for several months, occupying a large sum of money from Huang Derong.

"The warehouse on the other side of Japan is so expensive that he will not take delivery of it, and make us warehouse."

Asked why, Huang Derong replied.

Supply chain disputes

As a global garment enterprise, UNIQLO can optimize the allocation of resources and maximize profits by integrating its global supply chain.

In fact, from suppliers to manufacturers, to distributors, retailers, Internet of things and consumer terminal services, in this apparel industry supply chain, who can control resources strongly, who can get the right to speak and decide the trend of interest distribution.

ZARA's approach may be more telling.

Through the advanced IT system, ZARA sells the sales data and reports directly to the Spanish headquarters every night in the stores all over the world.

In addition, the store manager has the right to order directly to the headquarters, so as to ensure the timely updating of the goods.

The ZARA design team, based in Spanish headquarters, is designed based on data from stores around the world.

These firsthand data give the most accurate market information: the styles, colors and sizes of salable or unsalable products.

After the design is finalized, the order will be produced.

The clothes coming out from ZARA's OEM factories in various countries will be pported to the modern logistics center of ZARA headquarters in Spain for automatic sorting and loading, and eventually pported to stores by trucks, ships or aircraft.

This is ZARA's rapid supply chain system.

Strong control of supply chain links enables ZARA to complete product design, procurement, production and sales to stores around the world for only 15 days.

Nowadays, many factors related to the topic of supply chain management have attracted widespread attention in the domestic textile and garment industry.

The competition between individual and individual of Chinese clothing brand has already given way to the competition between industry chain and industrial chain.

The "system competition" of factors such as product production, design, R & D, sales, logistics and distribution, information management and channel construction has been quietly launched in domestic garment enterprises.

Chou Ying, Minister of Industry Department of Zhejiang Ya Ying Garment Co., Ltd., said that in order to strengthen the supply chain management, the company has extended its IT system to the supplier terminal. It has made some strategic cooperation partners including warehousing rate, product inspection pass rate, product sales and so on, so as to promote the development of suppliers with the relationship of partners.

At the same time, 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."

Chou Ying said.

Like ya Ying, Metersbonwe is also expanding its supply chain.

In the past, Smith Barney bought orders directly in garment factories, and ignored the purchase and management of fabrics. Now, the United States has incorporated fabric suppliers into its own management system, which only saved more than 40% of the cost of the supply chain.

Wang Quangeng, vice president of Metersbonwe, said: "fabric is the focus of competition in the clothing industry. To seize the fabric link is to control the key links of the supply chain 70-80%. These links include quality, cost, production and supply speed to get orders, so we must extend the value chain to the field of raw materials supply and enhance our competitiveness."

As early as 2001, YOUNGOR began to implement its own supply chain strategy.

Nowadays, the upstream and downstream industry chain, including fabric, production and sales terminals, has become the "foundation" that it is proud of.

In the collaborative network of the industry chain, YOUNGOR's own suppliers, manufacturers, distributors and customers can dynamically share information and work closely together to form flexible, continuous management and develop towards common goals, so as to maximize the value of the industrial chain.

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Reforming supply chain

For apparel enterprises, the integration of supply chain resources is not the end, but just the beginning.

In fact, the more integration of supply chains, the greater the pressure of supply chain management.

To give a simple example, the more the number of processing plants outside the brand enterprise is, the greater the probability of product problems, and the higher the risk of brand.

In August 23rd, Greenpeace released a report that the clothing of 14 well-known clothing brands including Lining and Adidas contained nonylphenol polyoxyethylene ether (NPE).

The substance, entering the environment, quickly decomposes into a more toxic environmental hormone, NP, nonylphenol, which can lead to a decrease in the number of men's sperm.

The Li Ning Co immediately stated that it would eliminate environmental chemicals in the supply chain in 2019 and achieve environment-friendly emissions. NP and NPE should be included in the chemical control list to push suppliers to strictly abide by this requirement in all links.

In fact, because one of the main uses of NP is to be used as textile auxiliaries, pollution is likely to occur in the printing and dyeing process of garment processing.

Although the responsibility is more from the printing and dyeing mill, the spearhead is directed at Lining, who is directly facing the consumer.

In Guangzhou, a 20 year old handbag factory reflects changes in brand management.

Zhou Ming, a factory master, worked in the factory for 8 years. He felt that the production process was refined every year.

The raw materials and tools are collected and handed out by the special person, and the finished handbags are changed to be taken away by the special person and sent to the next group.

In addition to lowering his head to zipper and accessories, he does not need to do other redundant actions.

The risk prevention is prudent in the 1000 factory area where handmade luxury handbags are made.

"If a sewing needle falls into the handbag and is sold together, it is a great thing."

Zhou Ming said.

The factory has gradually formulated a set of rules: if the worker needs a new sewing needle, he must apply directly to the factory director.

The factory director will be able to issue new sewing needles after he finds out what is wrong with the original needles and ensures that he has not dropped the finished products.

Efficiency management of every material, strict packaging and storage of goods, strengthening the concentration of workers' work and speeding up the flow of products. The harsh demands of brands reduce the potential risks of brands and enhance the strength of factories.

Insiders pointed out that while integrating and optimizing the supply chain, garment enterprises should also supervise and pform all aspects of the supply chain to ensure the sustainable development of brands and suppliers.

This is not only the inherent demand of enterprises in development, but also the embodiment of corporate social responsibility.