TECHNOLOGIES

USED IN APPAREL INDUSTRY

Presented By:

ANSHUL MANISH NITIN SRIKANT POONAM RAVINDRA

MANUFACTURING TECHNOLOGIES

ERP
ENTERPRISE RESOURCE PLANNING

WHAT IS ERP?

ERP is a computer system ERP is for manufacturing organizations alone

A business management system that integrates all face of the business.

As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in business activities.

ERP PHASES

Adoption Decision, Acquisition, Implementation,

Use and Maintenance,

Evolution, and Retirement phase.

BENEFITS OF ERP

Reduction of lead time

On time shipment
Reduction in cycle time Better customer satisfaction

Improved resource utilization

Improved supplier performance Increased flexibility

Reduction in quality costs

Improved information accuracy and decision making capability

COST FACTOR

ERP is a very costly option.

Generally The ERP costs depends on:

No of divisions No of modules

Integration with the existing systems

Change in processes

Thumb rule: ERP costs around six times the total cost of

software.

According to a study done by the Meta Group, the avg. cost of ERP implementation was - $15,000,000.

HIDDEN COSTS

Training

Integration & Testing

Customization Data migration Increased staff competency Non-stop Implementation

Waiting for ROI (at-least a year till the benefits start

becoming visible)

Adaptation to new processes.

DISADVANTAGES OF ERP

ERP systems can be very expensive to install and maintain. Technical support personnel often give replies to callers that are inappropriate for the caller's corporate structure. Once a system is established, switching costs are very high for any one of the partners The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.

DISADVANTAGES OF ERP

Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software. There are frequent compatibility problems with the various legacy systems of the partners. The system may be over-engineered relative to the actual needs of the customer.

Systems can be difficult to use.

Personnel turnover.

FACTORS AFFECTING SUCCESSFUL IMPLEMENTATION OF ERP

Vendor should be good and his package should be best suited for the companys need. Change the job descriptions and functions of employees with management skills. Proper training is must.

EDI: ELECTRONIC DATA INTERCHANGE

What is EDI?

Exchange of electronic data between companies using precisely defined transactions Set of hardware, software, and standards that accommodate the EDI process

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ELECTRONIC DATA INTERCHANGE

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Benefits of EDI

ELECTRONIC DATA INTERCHANGE

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Suppliers, manufacturers, and retailers cooperate in some of the most successful applications of EDI.

ELECTRONIC DATA INTERCHANGE

How does EDI work? Suppliers proposal sent electronically to purchasing organization.

Electronic contract approved over network. Supplier manufactures and packages goods, attaching shipping data recorded on a bar code. Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization
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ELECTRONIC DATA INTERCHANGE

Manufacturer ships order. Shipment notice EDI transaction sent Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received.

Payment approval transferred electronically.

Bank transfers funds from purchaser to suppliers account using electronic fund transfer (EFT).
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ELECTRONIC DATA INTERCHANGE

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ELECTRONIC DATA INTERCHANGE

EDI Standards EDI requires companies to agree on standards

Compatible hardware and software Agreed upon electronic form format

Established EDI standards

Automotive Industry Action Group (AIAG) X.12 de facto umbrella standard in U.S. and Canada EDI for Administration, Commerce, and Trade (EDIFACT) umbrella of standards in Europe

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ELECTRONIC DATA INTERCHANGE

How to Subscribe to EDI

Larger

companies purchase hardware and software Medium and small companies seek third-party service
Value-added networking (VAN) Managed network services available for a fee

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ELECTRONIC DATA INTERCHANGE

EDI on the Web

Advantages

of Web EDI

Lower cost More familiar software Worldwide connectivity

Disadvantages
Low speed Poor security

of Web EDI

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ELECTRONIC DATA INTERCHANGE

The Importance of EDI Need for timely, reliable data exchange in response to rapidly changing markets Emergence of standards and guidelines Spread of information into many organizational units Greater reliability of information technology Globalization of organizations

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RFID IN INDUSTRY
In 2008, 38% of the investment in RFID retail applications was

specifically targeted for apparel tagging ($68M)

The amount spent on apparel RFID is projected to rise to $988M by 2013 Companies are reluctant to provide data on payback, given the

competitive advantage
Distribution of users of apparel RFID: US and Japan 23%, Germany 14%, Italy 7%, China 6%, France 5%, UK 4% II th E t n the East, manuff t i acturing applili ti th f cations are the focus - costt d ti d reductions and improved response time in their huge manufacturing base In the West, retailers lead the way - cost reduction and increased sales

CONSUMER BENEFITS OF RFID

Garment tracking within a store Real-time replenishment prevents stock outs Faster self-checkout due to multiple item scanning

RFID loyalty cards for customer specific shopping

reminders and promotions

Magic mirrors and RFID closets for detailed

information about the garment

CONSUMER RISKS/ISSUES

RFID tags can used as tracking devices Shopping information stored on RFID enabled loyalty cards invade privacy

RFID infrastructure and tags lead to increased item price

RFID SYSTEM

HOW RFID WORKS

Active

tags actively transmit data to a reader. passive tags draw power from the magnetic field generated between itself and a reader to power its microchips circuits, allowing it to reflect the RF signal transmitted to them from a reader, adding information by modulating the reflected signal For communication tag and reader must be tuned to same frequency.

ADVANTAGES
Collect,

manage, distribute And Store Information Inventory, business Process And Security Controls Verification Of Security And Authetication Of Shipped Items Improvements Over Bar-code Easy And Uninterrupted Access To Data On Tag Used In Adverse Condition

TECHNOLOGIES USED BY RETAILERS

POS SYSTEM

General computer hardware

General computer software

Checkout hardware Checkout software Miscellaneous store hardware

POINT OF SALE

A place where sales are made An electronic transfer of funds Sales and payment information are collected

electronically

The payment information is passed on to the financial institution

Sales and payments information are forwarded to the management information system

HOW?

Checkout hardware USB Card reader USB receipt printer Cash drawer Barcode reader Camera Plasma Screen Wireless microphones

WHY?

Easy payment Saves time Reduce errors

Inventory details Customer details Salesperson details

Customer relation
Reduce cost and work Improve customer satisfaction

Payment details
Reports (mainly sales) Cash counter balance

WHERE?

Widely used in developed countries Getting importance in India

Makes the business easy

BAR CODE TECHNOLOGY

It

is an automatic identification technology

Bar

code is a predefined format of dark bars and white spaces

to contain a specific piece of information allows real-time data to be collected accurately and rapidly

Structured

It

Combination

of barcode technology with computer and application software improves performance, productivity and profitability

SYMBOLOGY

BENEFITS OF BAR CODING

REPRESENT

UNIQUE IDENTITY OF A PRODUCT

ACCURACY
AID

OF DATA INPUT (ERROR FREE)

EFFECTIVE MANAGEMENT OF RESOURCES

AND INVENTORIES
LABOUR

SAVINGS BY AVOIDING MANUAL SYSTEM

BAR CODE TERMINOLOGY

o

BAR

- The darker, non reflective element of a Bar Code o BI-DIRECTIONAL SYMBOL - A Bar Code symbol format which permits reading in either direction across the bars and spaces o CHECK DIGIT - A calculated character included within the Bar Code for error detection o FIXED BEAM SCANNER - A stationary Bar Code Scanner. The symbol must be moved through the light beam to be read

BAR CODE SCANNERS

A device used to extract information optically from a Bar Code

Bar Code symbol consists of series of vertical dark bars separated by light spaces

When illuminated reflected light is detected by electro optical sensor

The intensity of reflected light from the dark bars is

less than that of spaces

BAR CODE APPLICATIONS

INVENTORY CONTROL

Portable readers

WORK-IN PROCESS TRACKING (WIP) COMPANY INVENTORY

Raw materials WIP (Components, Assemblies, Semi finished Products) Finished Products

ADVANTAGES OF BAR CODE

Quick and error free entry of access and membership codes Ensures total integrity of collected data No queuing up at check out/check in counters Avoids piling up of data entry work for counter staff Aids generation of suitable reminders to delinquent borrowers Stock verification made easy

RETAIL CONSUMER MOBILE PAYMENTS TECHNOLOGY

The 21st century gold rush in the U.S. is the consumer mobile payments market. The companies in every industry that are the first to create mobile payments technology or the ones to utilize it the best will capture new fertile markets that are ready to spend money using mobile technology that doesn't yet exist. Retail Chains Accepting Mobile Smartphone Gift Cards As Payment for Purchases: Retail Chains and Restaurants Accepting Gift Card Payment Purchases Directly From Mobile and Smartphones: Websites With Best Bad Weather Online Retail Shopping Options Capture More Sales:

Holiday shopping sales figures on Super Saturday were predicted to rival those of Black Friday this year, as procrastinating bargain shoppers running out of time were expected to make desperation purchases. But Super Saturday is not so super for either retailers or 50 million shoppers who are in the path of a major winter storm.

CONTD..

The Best, Fastest, and Most Efficient U.S. Retail Internet and Mobile Websites Efficient website performance is a major driver of satisfaction for the internet shopping experience. This is a list of the U.S. retail internet and mobile websites that were judged to have the best performance as measured by speed and performance. Mobile and Smart Cellphone Shopping Apps Many of the largest retail companies in the U.S. are responding to the growing use of cell phones by creating apps for mobile phones, cell phones, and smart phones which enable shoppers to do mobile shopping and make mobile purchases.

AWARD-WINNNG RETAIL INNOVATIONS FOR BETTER SHOPPING EXPERIENCES

Payments/Point of Sale (POS) Innovation Award Winner Xsilva Introduced LightSpeed Mobile, a point-of-sale system that enables retailers to conduct sales transactions on the sales floor, thereby eliminating lines, reducing customer wait times and streamlining inventory management. Social Media Innovation Award Winner Cisco Created the "SocialMiner" program which allows retailers to effectively monitor social media sites like Facebook, Twitter, and blogs and easily route customer service issues to customer service channels for appropriate followup. Store Intelligence Innovation Award Winner Tyco Retail Solutions Designed technology to capture customer data and correlate with sales transaction records, which increased profits, efficiency of data use and knowledge of shopper behavior.

RETAIL INNOVATIONS FOR BETTER SHOPPING EXPERIENCES

Store Operations Innovation Award Winner Opterus Premiered the Store Ops-Center which connects corporate offices with retail locations, allowing communication of objectives, assignment of tasks, issue resolution and more. Store Scheduling module provides the capability to create and edit schedules, making them viewable by any company member. "?RetailTouchPoints.com along with an explanation of the innovation that won them the recognition. Analytics Innovation Award Winner QlikTech Created QlikView which allows retailers and wholesalers to access data and trends, and quickly identify business solutions. Includes a mobile component to facilitate access from smart phones and iPad. Customer Engagement Innovation Award Winner NCR Corporation Created NCR Enterprise Preference Manager which allows customers to access a portal where they can manage a variety of personal options. This enables marketers to gather consumer preferences and create more personalized offerings and shopping experiences.

RETAIL INNOVATIONS FOR BETTER SHOPPING EXPERIENCES

In-Store Marketing Innovation Created the Connected Store concept which collects viewer demographics and allows retailers to gather comprehensive information about their target audience. The concept also provides consumers with interactive demonstrations and mobile device interactivity. Inventory Management Innovation Award Winner Best U.S. Retail Technology and Retail Innovations 2011 (continued): Inventory Management Innovation Implemented Apple-based technology for company inventory, including online and offline options, which adapts to bar code scanners, printers and other instore devices. This Apple-platform technology is one of the first of its kind. Inventory Management Innovation Debuted a mobile, in-store Wi-Fi solution for real-time customer messaging and mobile marketing campaigns. Enables retailers to register customers and personalize messages, enhancing shopper loyalty and engagement.

AWARD-WINNNG RETAIL INNOVATIONS FOR BETTER SHOPPING EXPERIENCES

Payments/Point of Sale (POS) Innovation Award Winner Xsilva Introduced LightSpeed Mobile, a point-of-sale system that enables retailers to conduct sales transactions on the sales floor, thereby eliminating lines, reducing customer wait times and streamlining inventory management. Social Media Innovation Award Winner Cisco Created the "SocialMiner" program which allows retailers to effectively monitor social media sites like Facebook, Twitter, and blogs and easily route customer service issues to customer service channels for appropriate follow-up. Store Intelligence Innovation Award Winner Tyco Retail Solutions Designed technology to capture customer data and correlate with sales transaction records, which increased profits, efficiency of data use and knowledge of shopper behavior.

Store Operations Innovation Award Winner Opterus Premiered the Store Ops-Center which connects corporate offices with retail locations, allowing communication of objectives, assignment of tasks, issue resolution and more. Store Scheduling module provides the capability to create and edit schedules, making them viewable by any company member.

BIBLIOGRAPHY
www.indiaretailing.com www.apparelresources.com www.stitchworld.com www.indianretailforum.com

THANK YOU