| Significance of Supply Chain Management for Brand | | | | Daimler-Benz undertake almost all of their production |
| DevelopmentThere is a pressing need of inspiring | | | | at home, and they are distinguished by very exclusive |
| thinking amid the industry managers and policy drafters | | | | management techniques and capabilities. Daimler-Benz |
| so as to facilitate them to produce a well-calculated | | | | displays the natural German forte in production |
| all-embracing strategy and an action plan for their | | | | engineering. Chrysler demonstrates standard American |
| sustainable development and gainful operations. The | | | | talents in dealing with new product promotion. There is |
| concept of creating a powerful "Made in India" brand | | | | no cause why the united companies fail to carry on |
| has been suggested as one of the important strategic | | | | business on large national lines and reap benefit of |
| initiative by several stakeholders.The present article | | | | each partner's potential.In the same fashion, with the |
| aims to underline key sources of problems for the | | | | intention of sourcing and production, creative design |
| industry and explains all the challenges the industry is | | | | houses of Paris, New York and Italy joined hands with |
| facing and likely to face. It also brings up significant | | | | Indian apparel production companies having competitive |
| matters for competent supply chain management in | | | | benefit; this could prove profitable for both.Output |
| the textile-apparel-retail network and the function it can | | | | EnhancementWhen productivity is over-stressed, the |
| perform to overcome all the major barriers to make | | | | eagerness to make huge investments in thoroughly |
| them competitive worldwide and add largely to | | | | new process technology gets lost. Performance in |
| develop a high brand impression for the country.What | | | | customer care, distribution, lead times, quality, and |
| is happening in the Industry?The Indian textile and | | | | assets turns become less important. The |
| apparel sectors have not only contributed to the | | | | perseverance for productivity is paradoxical. The more |
| national economy regarding direct and indirect | | | | it is chased, the more puzzling it would become. A |
| employment creation but also raised net foreign | | | | craving for cost reduction may result into a confined |
| exchange earnings. The textile and apparel industry | | | | vision.The productivity method of manufacturing |
| makes up 18 per cent of employment in the industrial | | | | management is not just sufficient to bring competitive |
| sector, 20 per cent of industrial production, 9 per cent | | | | climate back (companies cannot reduce expenses |
| of excise duty collections and more than 30 per cent | | | | acutely enough to restore competitive strength), it |
| of Indian's total exports.Because of ample stock of | | | | actually harms as much as it helps. Manager is |
| cotton, low-cost labour and flourishing mill sector, India | | | | engrossed by a natural reply and it averts his/her |
| had few competitors in the expanding international | | | | attention from more competent manufacturing |
| textile business during the post-independence decades | | | | method.In today's competitive atmosphere, most |
| of the 50s and 60s. But our trade failed to resist the | | | | important operational sources benefits include quality, |
| rising competition from some new industrialist nations in | | | | committed supply chain, short lead times, customer |
| a widening world economy and consequently lost | | | | care, and fast product launch, flexible capability and |
| market share during 1970s. The 1980s proved a | | | | effective capital deployment. These are obviously |
| colourful decade in terms of fast evolution for Indian | | | | recognised as the important forces of the Indian textile |
| apparel exports, which were assessed at Rs 6500 | | | | industry for its competitiveness in the global |
| million in 1981 and Rs 8500 million in 1985. Since | | | | perspective. An efficient harmonised delivery chain |
| exchange value of rupee decreased in 1991 and | | | | management is expected to react positively to most |
| export-oriented plans were enacted, value of apparel | | | | of these drivers.Contemporary issues of putting the |
| exports escalated to Rs 62823 million in 1991-92, Rs | | | | production unit into a more striking place to function are |
| 183896 million in 1998-99 and Rs 254799 million in | | | | not new. They are the direct results of the 150-year |
| 2000-01.OpportunitiesIndian apparels made up a small | | | | history of an institution based on productivity. Since |
| part of less than 3 per cent of total world export of | | | | cost and competence are the basic criteria of factory |
| apparel; this indicates ample growth opportunity. India is | | | | success, the manufacturing unit would carry on to |
| able to offer a vast local market to its apparel | | | | keep many talented and innovative people |
| producers. The study of McKinsey reveals that the | | | | away.Strategic AlternativesIIt is crystal clear that the |
| market size is of Rs 20,000 crores, but only Rs 4,000 | | | | textile industry in India is heading for fierce competition. |
| crores is dealt with by branded apparel. Therefore, | | | | The market is expected to be over-peopled with |
| Indian apparel manufacturers have Rs 16,000 crores | | | | distributors and price pressures will escalate. It is likely |
| market, which has been dealt with by the disorganized | | | | that only those who are receptive to change will |
| small size units. The developed nations, which are the | | | | subsist.Since the last two or three years India has |
| landing places for Indian textile products, use textiles in | | | | failed to make its mark in textile and apparel exports. It |
| the form of apparel. If Indian apparel manufacturers | | | | seems that the textile industry has not been |
| wish to consolidate their position in markets and | | | | successful in utilising its competitive benefits altogether. |
| capture larger values of the chain, they must move | | | | Decisively, it can continue as a distributor of quantity of |
| their target to the efficient performance of | | | | products, competing basically on prices, to large local |
| textile-apparel supply chain system and not look at | | | | market having lower level demand on quality, creativity |
| textile industry separately.Risk FactorsIndian textile | | | | and pliability. But all they need is change if they wish to |
| industry was supposed to be influenced by several | | | | seize a sizeable portion of large and rising international |
| regulatory, technological and marketing modifications | | | | market of textile products. To gain the lion's share of |
| over the next few years. Under the WTO, the export | | | | the international market, each company has to choose |
| quotas would be discontinued from January 1, 2005. | | | | which part of the value chain it should compete. Their |
| This will launch a fierce competition in this industry from | | | | choice will essentially be influenced by the capacities |
| countries like China, Sri Lanka, Thailand, Indonesia, | | | | and confidence of the relevant organisation and what |
| Bangladesh and Vietnam.For a product line described | | | | policy it takes on to be a winner, with regards to the |
| by fluctuating demand system and seasonality on one | | | | brand image our nation possesses in the minds of |
| hand and highly labours demanding on other, it is | | | | target customers.The industry players require to outline |
| essential to have complaisance to maintain stability of | | | | their future competitive policies on the ground of their |
| the labour force employment from time to time.Though | | | | competitive benefits, merits and demerits and also on |
| India has advantages of more than enough low-priced | | | | the global developments in the market situation. A |
| workers, reduced production cost, accessible raw | | | | magnified picture for the country of origin can perform |
| material and a huge domestic market, there are some | | | | a significant function in influencing the consumers |
| aspects like infrastructure and government plans that | | | | positively and that in turn can affect the global brands, |
| have brought about a wide divide in the economic | | | | suppliers, retailers and bulk buyers.Organisations with |
| progress between India and other nations for textile | | | | efficient policies would adopt one or a combination of |
| industry in particular.Strong PointsIn proportion to other | | | | the following strategic choices: |
| industries of India, the textile sector is more competitive | | | | . Sell to the most genuine and demanding buyers and |
| worldwide. Most of the inputs needed for this sector | | | | channels. |
| are available from domestic supplies and necessity of | | | | . Look for the buyers with the most complex |
| imports and valuable foreign exchange is little.The | | | | requirements. |
| Indian apparel-production industry was broadly broken | | | | . Set standards surpassing the most challenging |
| up as knitted hosiery and yarn-dyed, woven apparel. | | | | regulatory obstacles or product criteria. |
| Only 6 percent units out of total firms have more than | | | | . Source from the most leading and international native |
| 50 machines, while 80 percent units are working with | | | | suppliers. |
| 20 machines. The acute decentralisation helped | | | | An analytical study of these choices reveals that if an |
| manufacturers keep away from labour issues and the | | | | organization wants to put one or more of these |
| labour associated laws, as well as seasonal variations | | | | alternatives into practice and bring about sustainable |
| in business. Even operations became flexible and it | | | | development and profitability, it has to make its supply |
| gave competence in production.From the middle of | | | | chain highly unified and well-managed. A country with a |
| 1990s, production units of larger strength with | | | | large number of such well functioning networks in a |
| advanced technology, mainly in association with a joint | | | | specific industry can ultimately develop a great brand |
| venture partner were set up. During the same phase, | | | | out of these unbeaten networks. Communication with |
| Indian customers could notice easy access of | | | | well-coordinated action can only do it.Questions that |
| international brands in domestic market, which were | | | | come to our mind are as follows:Would the genuine |
| produced by Indian garment manufacturers. This | | | | requirement for garments also generate genuine |
| aroused the expectancy of intelligent clients and | | | | requirement for the Textile industry? Would the Indian |
| apparel industry did not have any option but to better | | | | textile industry be asking for genuine buyers to be |
| its functioning for this group of demanding customers. | | | | catered by them?Made in India brand imageIt has been |
| Importers of Indian apparels were by and large happy | | | | experienced that luxurious products (for example |
| with price and passionate about the knack to source | | | | Perfume, wine, etc) fare better when they are |
| small production amounts. International garment | | | | produced by French companies. In the same way, |
| companies introduce new designs, new craftsmanship, | | | | customers prefer cars, cameras, VCR's etc |
| ultra-modern scientific management and also the | | | | manufactured by Japanese companies. German |
| marketing policies in India. These all can make the | | | | products are favoured in particular slot of engineering |
| competition machinery stronger in order that the | | | | machinery goods.For example, nationalistic advertising |
| industry might obtain more capital for developing new | | | | can influence the image of a brand and may fetch |
| products, new brand names, technology enhancement | | | | some genuine customers. On the whole, research |
| and human resource training so that market | | | | appears to mention that the tag of native-made has |
| competitiveness can be increased.Weak PointsThe | | | | an effect on the brand image. The image can be |
| small production units were not fortified with high-level | | | | tarnished (as it occurred to the image of US-made |
| strategy and information structure and did not succeed | | | | products in Japanese perceptions) or enhanced (as in |
| to offer economy of scale. The present-day labour | | | | Japanese image in the eyes of the consumers all |
| policy in some respects enfeebles Indian apparel units | | | | through the world) over a period of time. Therefore, |
| to establish large manufacturing units and to realize | | | | Indian textile companies should recognise the |
| economies of scale. According to Indian criteria, a | | | | distinguishing capability, which, with an attempt, can |
| large-scale unit could be the minute in size in the rival | | | | possibly make a place for India in the minds of global |
| countries like China, Indonesia, Thailand, Bangladesh, and | | | | buyers and consumers of textile products, over a |
| Sri Lanka.The challenge Indian apparel exports have to | | | | period of time, if not instantly. But it is feasible to |
| face is the decreasing average unit value realisation, | | | | establish a positive image for 'made in India' products |
| which has reduced to $ 3.70 in 2000 from $ 4.44 in | | | | or services with a strategy for the next decade.Brand |
| 1994. This openly indicates the Indian exporters' | | | | personality is the total of all the major tangible and |
| incapability to accelerate the value chain and the | | | | intangible property that a brand owns. Brand Image is |
| hazards of being branded as supplier of low end | | | | the consumer's perception of the brand. If brand |
| products in the international apparel market. This | | | | personality is the reason, brand image is the effect.In |
| creates the question of whether it is sensible to | | | | order to improve the international market image of the |
| endorse the brand image that exists presently or | | | | Indian textile and apparel manufacturers, it is essential |
| overcome all the shortcomings significantly before we | | | | to exert earnest attempts both in the market place as |
| consider extra promotion.Buyers were disappointed by | | | | well as within the industry to assure & supply value to |
| distribution and production lead times, the lack of large | | | | international consumers and then raise our country |
| sized garment producers, and problems linked with | | | | image through a promotion campaign, accordingly |
| freight managing. The buyers of finished textile goods | | | | assisted by sufficient fund. An effort was made by |
| and apparels face what appears the most critical | | | | Indian apparel industry in this direction in 1998/99 |
| problem of long and indeterminate lead times. Some | | | | without much progress.Supply Chain Management: |
| times products are not delivered on time, losing a | | | | Challenges and ImpactsKeeping delivery dates and |
| season completely. In such circumstances, buyers | | | | long lead times appear to be key factors hampering |
| generally expect discounts, meting out airfreight | | | | Indian textile and apparel industry from setting up a |
| expense or full payment of the airfreight, and in worst | | | | positive image of 'Made in India' brand.The industry |
| case cancel the order.The lack of concerns of | | | | must work in cooperation with all those ambitious |
| garment manufacturers to mill made fabrics was due | | | | suppliers and distribution outlets/small traders in the |
| to rigid attitude, absence of product range, long lead | | | | downstream in well-synchronised methods to better |
| times, bureaucratic organisation, snail-paced initial | | | | the general performance of the network.The future will |
| product evolution and sampling. Thus the | | | | show the competition among the organisations' |
| well-structured mill industry has failed to grab the | | | | networks. Knowledge of the idea of integrated supply |
| chance of a large potential market. The two sectors | | | | chain management can help these industries to obtain |
| namely power loom and handloom are prepared to | | | | much advanced level of performance in cutting down |
| provide broad range of design and texture in smaller | | | | and meeting the lead time promise, customer choices |
| lot size. But they are deficient in giving the promise of | | | | through quick new product expansion, decreasing their |
| excellence and reliability.Vital Ingredients for | | | | level of inventory at different levels in the supply chain |
| SuccessThe world market for apparel has volatile | | | | network. When consumers are changing the course |
| demand and short-lived products as its trademarks. | | | | from apparels made of one type of fibre to another, |
| Since demand of fashion apparel is dominated more | | | | with such integrated network the message can get to |
| by taste than impartial consumer requirements, future | | | | the fibre producers, spinning factories to bypass |
| predictions are likely to be extremely unreliable. Fashion | | | | clogging of valuable working capital in the products |
| garments, shoes, sportswear are the products whose | | | | which are expected to more slower than earlier.In the |
| demand is remarkably seasonal, variable and often | | | | same way, when customers change their minds and |
| difficult to foretell. Thus resultant scarcities (stock outs) | | | | prefer trousers of denim to khaki twill fabric, the |
| stand for lost sales opportunities and excesses result | | | | weaving factories have to think of slow shifting |
| in lost revenues consequent to succeeding decreases | | | | towards newly required fabrics and stop the |
| (price reductions), often to a point below the cost of | | | | production of denim fabric with a view to avoiding |
| production. Thus, the major success elements for any | | | | overstock of non-moving/slow moving inventory.The |
| supplier country are "first time right quality", timely and | | | | significance of bunches in global competition is due to |
| continual distribution of small lot sizes with a short | | | | the competitive benefit in local hinges such as |
| lead-time.Globalisation and CompetitivenessMichael E | | | | knowledge, relations, inspiration, which are not for the |
| Porter (1990) discovered a new theory that | | | | distant competitors to correspond. In India, such |
| recommended going above comparative benefit to the | | | | bunches could be developed in and around Bombay, |
| competitive gain of a nation. It expressed a productive | | | | Bangalore, Delhi and Ahmedbad for the textile industry. |
| idea of competition that embraced compartmentalised | | | | These cities already enjoy competitive benefits. For |
| markets, distinguished products/services, technology | | | | the success of these bunches, they need advanced |
| variations, and economics of scale. This new idea had | | | | retail channel, which consequently can generate |
| gone past cost and justifies why companies from | | | | demand for sophisticated garments and also high-class |
| some nations are better than others at creating | | | | co-operation and co-ordination among the supply chain |
| benefits based on quality, features, market reaction, | | | | associates, through well-integrated information sharing |
| speed and product improvement.Because some of the | | | | structure.Having demanding clientele of various |
| factors of cost benefits, the Indian apparel sector | | | | products as per their preferences and quality |
| provided relative gain for the low-end price point | | | | requirements enable the industry to cope with altering |
| products. But it could not realise those benefits that | | | | demands from customers and learn to be receptive. |
| could have supplied this sector the necessary | | | | As a result, demand for sophisticated products |
| competitive lead. A nation can maintain her successful | | | | requires improvement of technical expertise in textile |
| high-income status only by racing with unique, | | | | and apparel industry. The development is wanted not |
| discriminated products or services and that is what | | | | only for producing quality of superior standard but also |
| helps in creating the image for nation. It is the growing | | | | for output and customer responsiveness.It appears |
| impact of the performance of organizations that | | | | that supply chains are truly about aptitude of people, |
| promotes the brand image for a country. Moreover, | | | | not technology, to a greater extent when the intricacy |
| distinguished, contemporary products are less | | | | of market is ever growing. Most challenging job is to |
| responsive to price rises. Indian textile and apparel | | | | get people work in union and utilise their skills as a |
| sectors were found to expand diversely when it could | | | | team. Establishing efficient partnerships among |
| move its pricing southwards, either due to rise in | | | | companies is difficult. Internal relations can be even |
| government financial aids or driven by currency | | | | more complex to deal with. Though it's long proven |
| devaluation, which are neither extraordinary nor | | | | that working silos hamper communication and |
| sustainable.As far as the international economy | | | | competence, but many companies still fight to demolish |
| remains comparatively open, countries will | | | | the walls.Fibre2fashion has emerged as a distinctive |
| progressively involve highly focused performance in a | | | | B2B platform for global Textile, Apparel, Fashion and |
| worldwide production chain. With a view to choosing | | | | Retail and allied industries. offers business solutions, |
| specific kinds of products and techniques of doing | | | | news, articles and information that help to survive and |
| things, nations are inclined to promote capability in their | | | | sustain in the most hostile and competitive business |
| companies and public institutions.Chrysler and | | | | environment. |