According to a 2004 research study by Aberdeen Group, more than half (58%) of the systems and solutions used in a company's sourcing initiatives are manual, fax or e-mail driven, which is hard to believe, considering all the technology that's available.
This briefing looks at the issues apparel companies face in terms of e-sourcing, challenges found in implementation, and highlights the e-sourcing features to look out for. It also outlines the companies best suited for e-sourcing and provides case studies of Saks, American Eagle, VF Corp, Wilsons, and Kellwood.
Underlying issues
There are several major issues that apparel companies face in terms of e-sourcing ranging from marketplace dynamics to economic constraints to changing consumer tastes, etc. Many of them are more than just hurdles or challenges and require changes to corporate culture, investment and strategy to effectively manage.
Case studies
Reducing admin costs by replacing paper with e-communication also offers big savings, not to mention the cost savings by eliminating excess inventory and the margin gains from fewer markdowns. This section outlines how Saks, American Eagle, VF Corp, Wilsons and Kellwood have used the solutions of Ariba, TradeStones and New Generation Computing.
Implementation challenges
The benefits of sourcing don't come without their challenges. Probably the most overriding and daunting of these is understanding and articulating your company's sourcing processes and procedures so that an appropriate solution can be implemented. Despite which type of solution is chosen, there will be some sort of change in the nature of how the business will operate.
Companies best suited
How do you know if your apparel company could benefit from an e-sourcing solution? Some would argue that just about any company, regardless of size or product manufactured, could improve their operations with better communication and management of the sourcing process. Others say that the more complicated the product being produced, the more appropriate a solution will be.
|
0 items
