“The future competition of the apparel industry will be the competition of the entire supply chain. Good suppliers will never lack customers, and money may not be able to find good suppliers!”
Every year, the industry supplier conferences that participated in the industry have become more and more important. Apparel brand companies are aware that whoever has a quality supplier will be able to make a living in the market.
However, as a foreign trade clothing supplier and foundry, the profits obtained are not high. According to statistics, in the current international apparel supply chain, the profit distribution ratio of processing, ordering, branding, marketing and other four major links is roughly 10:20:30:40. China’s garment processing model developed since the 1990s has made China a world clothing factory and has supported the entire supply chain* profit with a 10% processing link for a long time.
Then, as an important part of the supply chain, how can the garment factory become more profitable through supply chain management + rapid response? The research object of this paper is nearly 1,000 garment enterprises, of which 69.57% belong to private enterprises and 17.39% belong to Sino-foreign joint ventures/cooperative enterprises.
First, the system management “small procurement”, the mechanism promotes “big procurement”
1, small purchases
Every enterprise or every garment supply chain management practitioner hopes that the procurement cost will be lower and lower, the production speed will be faster and faster, and the quality will be better and better. So we have a lot of quality inspectors, a lot of planners, staring at each order. But the result turned out to be counterproductive. Not only did our goal not be realized, but the process became longer and longer, and more and more. It is not surprising that this happens because all the above practices are typical “small purchases.”
In the actual business, we often see that all brand companies evaluate the procurement deadline, quality qualification rate and cost achievement rate of the procurement personnel all day, and impose various fines and penalties on suppliers, and even combine several departments to suppliers. “Compatibility” scores, but often forgets the mistake of giving a shirt to a supplier of the coat for development and production.
This happens mainly because we are turning around the order all day, not managing the supplier. Our work is supply-oriented, not managing demand; we are basically doing administrative work, but we leave the strategy behind us. This is the behavior of “small procurement.”
2, large purchases
“Large procurement” focuses on managing supplier relationships and improving supplier performance. Total procurement management is the total cost and chain efficiency. They promote suppliers to participate in product development as early as possible, integrate supplier advantages and achieve win-win situation. Big procurement mechanism. This mechanism is to establish a set of community systems that evaluates supplier capabilities, taps supplier potential, optimizes supplier performance, and mobilizes supplier participation. Practitioners must work in a service and empowerment manner, rather than supervise and play. .
Second, how to do a “fast reverse” supply chain?
I haven’t figured out the exact meaning of fast fashion, fast reverse, and turning over the single concept. Probably fast fashion is about brand positioning. Fast reverse is about the operation mode. Adding a single order is about the supply chain production and procurement model.
In any case, the concept of fast-reverse in recent years is probably an “opportunity” and a “nightmare” for the employees in the apparel supply chain.
“Clothing fast” – I always think that it came from the wholesale market, especially in recent years, several wholesale markets (Wuhan, Hangzhou, Guangzhou) have experienced business, but many apparel brands have encountered bottlenecks in development. . The bosses of the clothing brands learned from each other until one day a boss of the wholesale market told him the story of “the former shop and the factory”. This concept is deeply imprinted in the hearts of the bosses.
Industry insiders generally believe that Uniqlo and ZARA are doing a good job. It is said that UNIQLO’s doubling ratio is 60% to 70%, and ZARA’s new listing period is ten days. We have also conducted a lot of research and found that the fast-reverse production of these two brands may not be the same as most of us understand.
Uniqlo has strong research and development capabilities and planning capabilities for face and accessories. The fabrics are developed, tested and even prepared in advance one year ahead of schedule. The styles are mostly basic, the volume is large, and the sales model is direct. Under these premise backgrounds, Uniqlo will usually arrange 30-40% of the production for the first time, and the rest will be adjusted according to the production capacity balance and retail performance arrangement, which can flexibly adjust the color, size and even the new style. The two brands that seem completely different from each other actually have many similarities in actual operation. ZARA will also prepare materials in advance, especially for the basic models of domestic production (the amount of these basic models is not small). .
The difference is that ZARA style development is much more than Uniqlo. The addition of billing depends mainly on its powerful factor development capability, and it is continuously input into the supplier to achieve conversion. This powerful conversion capability ensures that the new model is continuously launched and that the supplier’s production capacity is balanced. At the very least, the core supplier does not need to worry about the order.
Summarize the operating experience of these two brands and find the commonalities of the following three aspects:
The first side of the auxiliary material (prepared blank) is the prerequisite for its quick addition and billing.
2 Strong planning capabilities to ensure both retail demand and supply chain balance.
3 brand core competence (uniforms fabric research and development and ZARA’s factor development) is the breakthrough to achieve fast reverse plus billing, but also the guarantee of efficient operation of the supply chain.
In contrast to our actual operations, we often think that suppliers are not capable enough to try to find suppliers with better quality, lower prices and faster speeds. The result is that bad money drives out good money, and suppliers are getting worse and worse. Even if the speed is getting faster, the quality is falling, and the cost is multiplied.
This phenomenon is particularly well understood, because the fact is that the equipment of Uniqlo and ZARA suppliers will not be faster than our suppliers. Another fact is that even if Uniqlo and ZARA suppliers come to serve us, we can’t achieve it. Effectively add the order, and finally return to the time is not too late, or the supplier is leaving us because of the order is interrupted, or the cost of quality declines.
Therefore, whether it is possible to achieve quick reversal and overturning, most of them are not suppliers’ problems, but the ability of the clothing brand itself. The core of these problems is the ability of surface materials and planning and coordination. The ability of the supply chain to operate efficiently.
Third, the breakthrough of China’s garment supply chain management
1. The current breakthrough in domestic apparel supply chain management lies in the importance of business owners, demand management, standardization, program management, informationization and mechanism establishment, rather than procurement and production execution;
2. In the future, brand companies must take the initiative to promote and support suppliers to do production management. This point, domestic HM, zara and other companies do a better job, they will regularly organize suppliers to train system content such as quality improvement, lean production.
3. The domestic apparel supply chain practitioners must establish a “big purchase” thinking, from the original game and supervision to service and empowerment, and enhance the supply chain attachment value through synergy and resource integration. This will be a long time. Our goal of struggle