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