How Should Apparel Industry Make Better Use Of Supply Chain To Produce Value?

Entering the twenty-first Century, design and products have become the basic elements of the success of enterprises. How to stand out among many brands, supply chain management has become an important factor. Supply chain management has become the core value of many enterprises. Let's listen to the experience of industry elites on the management of supply chain management.

Special guest

Otsuka Takeji, chairman of Itochu fiber Trading (China) Co., Ltd.

Wang Luyin, general manager of Limited by Share Ltd, textile and Limited by Share Ltd, general manager of Quan Wei International Holdings Limited

Chairman Xia Guoxin

Topic 1: how to use supply chain management to enhance brand value in the process of brand operation?

Wang Luyin: supply chain management has its complexity and its pertinence.

In terms of our company's operation, for example, a client gives me an offer. I will look for prices in the vicinity of Hongkong, South China, Taiwan, Vietnam, Bangladesh and Pakistan.

Many manufacturers offer the same thing at the same time. We choose the most suitable one, not the cheapest one.

This is a great value market. I find the most competitive place for customers to do the production, and we do the total quality control and management.

Xia Guoxin: for single brand, product line diversified supply chain management is a challenge.

How can we guarantee the quality of products in different fields? This is a very important topic. If we are to produce in our own field, purchase it ourselves, and then guarantee the high quality, obviously, the difficulty is very, very large, so this is a challenge.

The second challenge is that today's consumers are changing very rapidly, and the demand is diversified. How to ensure accurate prediction is very difficult.

If we want to accurately predict the production, this risk is very great.

Therefore, enterprises should shift from prediction to rapid response.

Faced with so many product lines, so many varieties and so many, how can we quickly satisfy customers? Mass production can not satisfy customers. It is a new challenge to satisfy customers through rapid production.

Our company's supply chain management idea is from the ordering mode to the buffet mode.

Through the early stage of small batch production, and then do a lot of late production preparation, but not to produce it.

In this way, it can replenish goods quickly, and at the same time, it can not cause a large number of stocks. This needs to be re designed from product design to the management of the entire supply chain.

If a company can truly manage the buffet management, it must integrate the entire supplier and the supply chain from top to bottom, and this integration is not entirely made for itself. It is more important to establish a strategic cooperative relationship with the supplier and have a global vision.

Which company and which supplier do the best quality and speed at the same time, establish a strategic partnership with him.

He can help to store raw materials, lock in time, and promise to supply.

This is a two-way cooperation, risk sharing and benefit sharing strategic partnership.

Otsuka Takeji: as a trading company, we used to engage in simple pactions from left hand to right hand. Besides the added value of goods themselves, they also need additional value generated by business activities, such as brand business. Its background, quality and marketing determine its added value.

As long as the era of good products can be sold well, we need to accurately perceive the needs of consumers and build them into a business mode.

The source of added value is the company's new marketing mode. We first take marketing as the basis, and then we will return them to the manufacturer.

Combine raw materials, fabrics and other links to increase the commodity strength with professional characteristics and stimulate the market.

The concept of marketing is the added value of business activities, from product orientation to market orientation.

Wang Luyin: scale is not the best thing. What we pursue is efficiency.

Because, in fact, there are many, many problems that emerge in an endless stream of clothing.

Supply chain management, we also hope that his size is the most appropriate.

But the most appropriate scale is to get the global sourcing chain, which is conflict, but it can also be coordinated.

We have a worldwide procurement network, and have a strong design team. There are many foreign designers in our team, a supply chain management, from product provision to service delivery, from procurement to garments, fashion accessories, and related furniture supplies.

Liu Zibin: Lu Tai Group has a complete textile and garment industry chain from cotton breeding, cotton cultivation to spinning, dyeing, weaving, finishing and clothing production until the two line brand marketing.

From a long-term perspective, the company will explore the development mode of low carbon economy together with the whole industry chain, including the front-end suppliers, the middle pport providers and the terminal customers.

For example, the company has established the "Rutai Colin textile dyeing and finishing technology research center", one of the world's three largest dye producers, and is committed to the research and development of new dyeing processes and environmentally friendly dyes and chemicals.

It has played a leading role in the development of new energy saving, environmental protection and environmental protection dyes, auxiliaries and new functional fabrics.

Finally, the company adopted low carbon logistics.

A series of measures, such as low carbon products, make low carbon business develop into a system, covering all aspects of enterprise production and operation.

The low carbon control of the whole industrial chain has been completed, and the low carbon competitiveness of the whole industrial chain has been realized, so as to effectively guarantee the sustainable development of the company.

From 2008 to 2010, the company gradually launched ten new technologies for energy saving and consumption reduction, notable achievements in energy saving and consumption reduction, and annual savings of 37 million yuan. During the "11th Five-Year" period, Lu Tai saved 28 thousand tons of coal and 3 million cubic meters of water, effectively reducing carbon emissions by about 72 thousand and 800 tons, ahead of schedule, exceeding the target of energy conservation, and achieved good economic and environmental benefits.

Through the optimization of the industrial chain and the improvement of the organization, the leading industries of the company are more prominent, the resources allocation is more reasonable, and the operation of various industries is more flexible. The company has formed a cluster of industries dominated by combed yarn, high-grade dyed fabric, high-grade dyed fabrics and high-grade shirts.

And become a high-end supplier of famous international brands such as Armani, all of which are inseparable from the perfect industrial chain structure of the company.

Otsuka Takeji: when production is very prone to waste and loss, in order to solve this problem, the supply chain must optimize and improve efficiency, and the process of convergence and communication requires professional teams to achieve integrated management.

From 2000 to 2005, it is an important period for free brand clothing producers and production retailers to quickly adapt to the changing trend. The biggest feature is the sales mode from commodity design, commodity planning to sales.

In Japan, since the abolition of the large-scale retail law in 2005, many large suburban customer centers have been developed throughout the country.

In order to attract guests, we need to enrich the related products of free brand women's clothing. For this reason, chain corporation constantly open shop, which leads to more and more shop operators.

In the upstream and downstream of the whole business process, such as brand design, fabric proposal, style, proofing, production management, sales cycle, price proposal and so on, we provide a wide range of functional control.

In the aspect of fabric proposal and the choice of producing area, we have made full use of our skills.

From the fabric suppliers in China, we can find out the most advantageous production bases in terms of quality, price and so on. If we find attractive fabrics, we can also make a reverse proposal, which is very innovative.

In fact, with various departments, the way of collaboration with high value-added fabrics and other overseas production is coming into being.

Topic three: how will future enterprises use supply chain management to generate new value?

Wang Luyin: there are many garment industries in China that will thrive in the future. When you go out, you should make use of the resource areas around the country to make production.

In the future, when the enterprise expands, we must take account of the global supply chain.

Because in the future, in the apparel industry, China is signing tax exemption for FTA with many countries, we can make use of the global supply chain resources to serve the enterprises.

For example, send very basic things to Vietnam and Bangladesh.

Of course, it can not be a very fashionable thing, because very fashionable things are fast and time is short, but very basic things can make use of the global supply chain and procurement chain, which can save costs and bring more benefits to enterprises.

Xia Guoxin: we are talking about product design and industrialization.

After ten years of walking down to the department store today, the differentiation of products is getting smaller and smaller.

The new competitiveness should come from the new supply chain. The rapid upgrading of the supply chain is a new competitive power. When the speed is up, new value can be generated.

Otsuka Takeji: the theory of supply chain management established in the 80s of last century has also been changing with time, and has been promoted accordingly.

From the perspective of reducing waste, improving production efficiency, management, logistics, waiting for the realization of consumers, consumers' expectation of environment, consumers' active participation, providing consumers with satisfactory products, creating a space for consumers' satisfaction, that is, the responsibility of building an affluent society has become the mission of enterprises.

We believe that creating value chain and deepening it on the basis of supply chain management is the comprehensive force of today's business mode.