Are Your Suppliers Strong Enough?

Supply chain management optimization. Is your supplier strong enough?

Any one in supply chain management.

Not long ago, at the "2011 global textile and Apparel Supply Chain Conference" held in Keqiao, Zhejiang, many sensitive issues about the supply chain system were put forward: how to avoid the difficulties caused by the huge fluctuation of raw materials, the adjustment of internal policies caused by the influence of national policies on the industry, and the series of problems faced by the domestic market prosperity, and whether demand driven innovation can bring vitality?

At that time, textile and garment enterprises encountered too many adversities. At this time, we should learn from them and let the clouds run into the sky.

Interview guests

Paul Hulme, President of Huntsman textile dyeing and finishing Division

Li Kailuo, an expert on fashion industry economics

Ariela-Alpha International, vice president of manufacturing and purchasing, Ed Mendoza

Triangle Capital LLC partner Richard Kestenbaum

Supply chain management is a "noun", but with the acceleration of global economic integration, the supply chain management of Chinese textile and garment enterprises has become a sharp weapon to decide whether it can master key resources and shape core competitiveness.

About supplier qualification

Details are important.

Suppliers should have fixed funds for R & D each year.

Suppliers play an important role in the entire supply chain. The reason why international famous enterprises can make brands bigger and stronger is largely due to strict requirements and ratings for suppliers. They will score for their suppliers every year. If they fail, they will be eliminated, and suppliers will continue to improve their capabilities in order to meet the standards of enterprises.

This mechanism is urgently needed by many small and medium-sized textile and garment enterprises in China.

EdMendoza: our products are women's underwear.

If these are done well, we should check whether the other enterprises in the production process ensure the raw material testing, pigment processing before production, the quality control system is perfect, the garment size must be up to the standard, whether there are broken pin detection and other links are guaranteed.

You can see that many of them are details, but the perfection of details can guarantee the smooth cooperation. Therefore, our choice of suppliers is so strict.

PaulHulme: as a marketer of differentiated chemicals, it is not only a supplier of downstream enterprises, but also an upstream company as our supplier.

Therefore, we have our own opinions on the choice and optimization of suppliers.

Qualified suppliers must focus on innovation. They should embody knowledge and expertise through technical services and provide technical solutions for the entire business activities.

If a supplier only gives you a low price, but it does not help you solve the related problems, it is by no means a good supplier.

The development of textile enterprises must be closely related to science and technology, so an excellent supplier should invest in research and development every year with a fixed amount of money, so as to achieve a win-win situation.

On Coordinated Development

Creating the chain of desire is very important.

Reducing energy consumption is the key.

Under the new business market structure, specialization, specialization and service are becoming more and more obvious trends in the global textile and garment industry. The new economic structure of the new textile industry is increasingly clear with consumers as the core and integrating global resources.

Demand can create supply, but sometimes demand also needs creation.

Li Kailuo: I think that in today's economic globalization and information technology, enterprises should set up pre thinking, constantly tap new demands to expand the market, create a desire chain, so as to seize the initiative of the market.

This is the key to the development of the whole industry supply chain.

At present, intelligent technology is gradually integrated into the garment industry. The emergence of intelligent network and intelligent terminal also shows the arrival of the era of intelligent clothing. Therefore, how to forge this fast intelligent supply chain with demand will become the key to win the future of the garment industry.

PaulHulme: I think the reduction of energy consumption and environmental protection in the production of enterprises should be paid attention to in the supply chain of the whole industry.

Through the development and application of some new technologies, the consumption of various resources of enterprises is reduced. This is not only to protect the environment, but also economic and cost-effectiveness. At the same time, I think it can change the way of production of enterprises.

University of Cambridge once did a research on the use of energy saving clothing.

China's textile and garment industry should reduce energy consumption through technology.

Huntsman has a sustainable smart clothing project. We provide this technology to make the clothes smell clear, comfortable, lasting and easy to handle. I think this can be considered sustainable.

About competitive advantage

Intelligent equipment brings great profits to enterprises.

Mergers and acquisitions can make enterprises stronger.

With the increasing sophistication of technology, the pparency of supply chain will gradually increase. Because of the rising labor costs, it is becoming more and more difficult for Chinese enterprises to continue to rely on low cost to maintain their competitive edge.

In the future, Chinese textile and garment enterprises need to have their own advantages to survive and develop in competition, and such advantages will have different connotations in different people's eyes.

Li Kailuo: I think the era of intelligence has arrived. How to carry out scientific research and innovation and use intelligent equipment to win more profits will become a major competitive advantage.

For example, at present, an interesting product abroad is called electronic fitting mirror.

It looks like a mirror on the surface, but there is actually a multimedia software inside.

The research and development side puts a RFID card into the clothing, so long as the customer stands in front of the mirror, does not need to take clothes to try on, the finger gently displays, can display the effect which you put on this clothing in the mirror.

In fact, some ZARA stores abroad have introduced this electronic fitting mirror, and the result is an increase of 30% of sales.

It is not difficult to see that such high-tech products bring objective profits to enterprises, but also save customers' time to test clothes and the cost of shop assistants and fitting rooms.

At the same time, it makes buying clothes more interesting.

RichardKestenbaum: not long ago, we reached an agreement with a very famous clothing company in the United States to sell the shares of the company.

In fact, the company has a very successful brand in the United States, and its products are extremely luxurious.

But their main designer died, so this has caused great pressure on the enterprises until they affect the future development of the enterprise.

Now a new group is buying it to inject new vitality into him.

In 2010, the retail sales in the US apparel industry reached 193 billion US dollars, equivalent to 1 trillion and 300 billion yuan, which is an amazing number, and many of them are made in China.

There is a statistic in the US. By May this year, about 41.2% of the clothing came from China.

It can be said that the relationship between China and the United States is very close, and grows with the development of time.

In the close relationship, many companies reach cooperation through acquisitions or mergers and acquisitions.

If an enterprise wants to enter a certain market and can not predict the future trend of the market, it will be a matter of half if we buy a successful local brand and use their existing channels and brand effect to promote it.