PRODUCT DEVELOPMENT QUIZ 1 Chapter 1 The Role of Product Development in the Apparel Supply Chain Product Development The strategic creative technical production and distribution planning of goods having a perceived value for a well defined user group Apparel Supply Chain 1 How groups of suppliers form a partnership to create a given product Traditional Linear Supply chain outdated 2 Fiber production yarn manufacturing textile production apparel manufacturing retailers final consumer it was distinct and separate process Retail product development supply chain 3 Price value 4 taking out the middle man because it seeks to bypass the profit center of wholesale brand apparel manufacturers and procure exclusive product at a competitive price 1 companies are all about bottom line profit 2 Ex Macy s private brand INC billion dollar business because started with products that customers wanted Product development manager 5 Very good communication skills 6 Works efficiently with suppliers 7 Strong negotiation skills know what you want and prepared to fight for it Apparel supply chain structure TODAY 8 More complex flexible than the traditional linear model 9 Builds on core competencies what we do best 10 Digital technologies make it possible for companies to coordinate their core competencies into a single effort speed to market Supply Chain Management SCM 11 Is a competitive customer enriching supply system 12 Deals with logistics supply chain strategy supply chain planning supply chain enterprise applications asset management procurement and product lifecycle management PLM make sure its doing well aka The analysis of the product while it s in stores Li and Fung 7 key principles to their SCM philosophy ONE OF BIGGEST GLOBAL SCM once you get your desired product and it s in stores need to 13 Product lifestyle management 14 1 Customer centric market demand driven 15 2 Focus on one s core competency and outsource noncore activities 16 3 Develop a close risk non profit sharing relationship with business partners 17 4 Continuously improve the work flow physical flow information flow and cash flow in the supply chain 18 5 Top technology to optimize operation of supply chain 19 6 Shorten production lead time and delivery cycles 20 7 Lower costs in sourcing warehousing and transportation PLM software 21 Seasonal concept business and marketing plans concept mood color palette and materials trims silhouettes 22 Line development merchandising plans line boards material usage market calendars and 23 Definition initial specification adopted specification production specification special size 24 Sourcing costs vendor collaborations vendor allocation multi sourcing estimate costing product tracking specification and quality Current Technology and Acronyms Table 1 1 page 11 25 3 D simulation 1 1 1 a system that provides a 2 d view of styles during product development often with manipulation of digital human avatar to simulate garment performance in response to lifelike body movements Use for consumer virtual try on or dressing room applications and to test pattern fit without or before making a sample 26 application service providers ASP 1 web based businesses hat offer individuals or businesses access to digital applications over the internet that would otherwise need to be purchased as specialty software 27 computer aided design CAD an integrated information system that embraces all aspects of dealing with prospects and customers including the call center sales force marketing technical support and field service to improve long term growth and profitability through a better understanding of customer behavior 28 Customer relationship manager CRM a wide range of computer based tools that assist design professional in rendering 2 D and 3 D concept sketches product models and finished artwork Applications for apparel product development include drawing flats for specification packages visualizing garment models on avatars as well as designing textiles 29 Enterprise resource planning ERP 1 a system that integrate activities and transactions across functional departments including production planning and scheduling materials purchasing inventory management logistics distribution and order tracking by serving as the base repository for cross functional data to improve the performance of an organizations resource planning management and operational control ERP systems were originally introduced as internal systems but today many have SCM modules that coordinate functionality and share information through the supply chain 30 Markdown optimization solutions MOS 1 digital tools that allow retailers to plan and model markdown scenarios to achieve financial and inventory objectives 31 Merchandise lifecycle management MLM 1 system for collecting storing or analyzing data from sales transactions 32 Point of sale POS 1 a system that builds on product lifecycle management functionality adapting it for the retail environment MLM is a holistic approach enabling product developers to balance four critical tasks 1 Design products in less time to take advantage of market trends and fickle customer demands 2 Source goods globally to meet price and delivery requirements 3 Manage the manufacturing quality and logistics milestones in productions and 4 Deliver high margin merchandise that sells through the initial markup 33 Product lifecycle management PLM a strategic business solution that supports the collaborative creation management visualization dissemination and use of product definition information from initial concept to a product s retirement throughout a company and its supply chain 34 Radio frequency automatic identification RFID a system that used radio frequency signals to locate and identify product with requiring a direct line of sight or contact RFID systems are most often used for inventory tracking in distribution facilities but are increasingly being adopted for inventory control at the store level 35 Request for proposal RFD request for quotation RFQ a document used to detail proposed gods or services requirements and invites responses and bids from prospective suppliers 36 Supply chain management SCM 1 1 1 1 software and web based application that help a company coordinate transactions regarding the flow of materials product information and finances as hey move throughout the global product supply chain It facilitates chain wide information sharing planning resource synchronization and global performance