Technologies Used by Manufacturers & Retailers

Submitted By: Aditya Kumar Parijat Gupta Ranjeet Singh Ridhi Nahata Samiksha Joshi

Index S. No. Particulars

1 Technology Used by Manufacturers 2 Introduction Evolution in Pre sewing Technology Computer Aided Design Evolution in Sewing Technology Microchips in Machinery Post Sewing Technology Outlook 10

Page No
3

Technologies Used by Retailers Introduction Bar Coding RFID CAD/CAM Electronic Data Interchange Fit Customization 3D Body Scanning E-Commerce M-Commerce

Applications of IT Supply Chain Management Purchasing Management Forecasting Demand Performance Management

18

Case Studies Case 1: Hyper City Case 2: Gucci

20

References

26

Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 2

Technology used by Manufacturers

Introduction The apparel manufacturing industry has migrated to the southern hemisphere, the apparel machinery manufacturing industry has not. Traditionally, Germany, Italy and the USA were the leaders in apparel machinery technology development until Japan and Taiwan joined the bandwagon in the late 70s. A look at the worldwide market for apparel technology shows that the 'big five' controlled a 75-80 per cent share during last decade. World markets for clothing and industrial textile processing technology Country Japan Germany Taiwan USA Italy Others
Source: Juststyle.com, article: Trends in apparel manufacturing technology

% share in 1995 36.1 19.0 18.5 7.8 6.6 20.0

% share in 2001 30.2 18.0 19.1 7.7 3.4 25.6

Technology exhibitions during this period have also shown a change. Innovation, the driver behind new technology development until the 80s, has given way to solutions. But although innovative fundamental developments have not taken place in the rich countries, numerous microchip applications have continued to transform the machinery. Flexibility and user-friendliness are now driving its development. It is also likely that apparel machinery technology will proliferate to Asian and East European countries in the future, with China playing a major role. The technology for apparel manufacturing can be divided into three categories: pre-sewing, sewing/joining and post sewing. Let's take a close look at the technology evolution. Evolution in pre-sewing technology Fabric inspection has traditionally been a manual process, since the ability to define defects in fabrics is very subjective and one of the most difficult processes to automate. Equipment primarily consisted of a slant table with a translucent/opaque surface with edge sensor and length counter, but scanning for defects was still carried out by the human eye. Current automated fabric inspection systems are based on adaptive, neural networks that have the ability to learn. The latest are equipped with specialised computer processors, CCD (charged couple device) camera, scan the fabric using advanced fractal scanning techniques, and use Fuzzy Wavelet Analysis (Dorothy et al). Users simply scan a short length of good Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 3

quality fabric to show the inspection system what to expect. The machines are designed to find, catalogue and analyse defects for a wide variety of fabrics. Fabric spreading technology almost unchanged since it was first introduced in the 60s, except for computerised tension control, CCD camera-based plaid matching etc. It can be best summarised as: "What the operator used to push during the 60s, he/she merely rides today."

Automated Fabric Inspection Machine The expensive CNC cutting technology used today is also similar to the CAMSCO invented during the late 60s, except that the mechanical controls have been replaced by microchips. Seamless integration of data and interconnectivity between equipment has also taken precedence. Other advanced cutting technologies like water-jet cutting (Drkopp developed and displayed a prototype in 1997), plasma and laser cutting have either remained at the prototype stage or are mainly used for non-apparel (technical, automotive) applications. The only notable commercially feasible development in automated cutting technology is the single or low ply cutter with fixed (drag cut) or rotating blade (chop cut).

Automated Spreading Machine Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 4

Computer Aided Design The technology that has given a real facelift to the pre-sewing category is CAD (computer aided design). It all started with 2D CAD where patterns were drafted on computer using PDS software, graded and then laid out (marker making) for optimum fabric utilisation. Numerous research initiatives were undertaken to automate the marker making process and AMGT (Automatic Marker Generation Test-bed) and Nest++ are some of the results that have been adopted commercially. Then came 3D CAD to virtually test the fit of the garments as well as simulate fabric drape using actual fabric objective measurement (FOM) values like FAST and Kawabata. This reduces product development time, the cost of sample garment production, and provides a graphical collaboration tool for all involved in the product development process. Optitex Runway and V-Stitcher from Browzwear are some of the commercial offerings in this area. Using dynamic simulation to put on a virtual catwalk is also a reality now.

Digital textile printing has also created a niche and promises a dramatic time reduction in prototype development and test marketing of new clothing lines. Evolution in sewing technology Sewing, once considered the only means of joining components, is losing market share to technologies like heat sealing and ultrasonic welding. Ultrasonic welding has a special niche since its bonds, unlike those depending on heat, can be adjusted according to the application. Since welded joints can be airtight, watertight and dust-tight, they are highly sought after for biomedical applications, air conditioning and environmental engineering. Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 5

In the past, increasing sewing machine speed was considered to be directly related to higher production and was a challenge for machinery manufacturers. From a moderate speed of 2000 spm (stitches per minute), developments have included 10,000 spm overlock sewing machines.

Macpi Multi Stitch Machine & Automated Waist band Machine But however fast the stitch formation is, productivity will still be restricted by the two human hands aligning and adjusting the fabric parts being sewn together. The R&D focus therefore shifted to reducing non-sewing elements such as loading and unloading, aligning and adjusting. Though the basic sewing kinematics have remained the same over the years, there have been minor differences between Japanese and German technology. The Japanese preferred gear drive and pump lubrication whereas the Germans banked on toothed belt drive and sealed forced lubrication. With the current convergence in technology, direct drive and dry head technology may be accepted as the worldwide standard. The main shaft-driven synchronised motion between the needles, take-up lever, feed dog and hook/looper is a worldwide standard. The only radically different technology to have emerged in recent years was from Tice Engineering which de-linked the sewing machine head and bed function. The Tice technology has freed the mechanical linkage to the bobbin, opening the doors for unprecedented versatility in sewing. Tice introduced the industry's first double needle belt loop tacker and multiple head buttonhole sewer. Currently Brother uses this technology in several of its models. The use of the lockstitch in automated workstations and cycle machines was limited due to the problem of continuity (such as frequent bobbin changes). Automatic bobbin changers from Juki, Philip Moll and Kinoshita were a revolutionary development in sewing machine history. Since Juki first exhibited the technology at the 1995 Bobbin Show International, this development (with a little modification) is now becoming a regular feature of many cycle sewing automats. Macpi's Multistitch was revolutionary in the sense that for the first time it was possible to join two plies (by overlocking) and top-stitch (double-needle chain stitch) in a single operation. Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 6

Take-up of this development was restricted by the fact that its use was limited (inseam operation on jeans, leg closing in knitwear) and does not offer any notable aesthetic or functional benefit over the conventional lapseam method.

Automatic Fully Control Stitching Machine The need for versatility and flexibility is breaking a long-standing taboo in sewing technology. Machines are now available with drop feed and needle feed interchangeable in the same head and even parallel chainstitch/overlock and lockstitch at the same head features never previously dreamed of! The 'automatic Levi's type waistband attach' from Vi Be Mac 3022LV is another example of how brand power is influencing (or should that be dictating?) technology development. A notable trend in sewing motors has been the move towards more versatile and compact options. These motors are not conventional configurations mounted under the table; they're smaller and can be mounted behind the sewing head or in a direct drive fashion. The development of near-end-contour manufacturing - three dimensional manufacturing in connection with robot technology and single arm stitching systems - is already well advanced and a definitive step towards 3D Sewing Technology.

Microchips in machinery The application of microchips in machinery technology is extensive and helps to control and diagnose sewing machine functions better than would be manually possible. Electronics are applied everywhere as the following list shows:

Programming stitch profiles (cross tack, crescent tack etc) in pattern tacking machines Control the speed of the machine Program the number of stitches in different sewing bursts Control the feed dog movements. Diagnose the machine malfunction area Voice activated start-stop of machine

Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 7

Step motor for driving puller Computerised thread tension monitoring (active tension control from Juki and Yamato) Thread break/exhaust indicator for needle, bobbin and lopper Online seam quality inspection Speed responsive presser foot pressure Elastic/tape metering device Fabric ply sensor Computer controlled needle throw in zigzag machines.

The impact of microchips in sewing technology is best realised in button sewing machines. With the archaic mechanical CAM-follower technology, changing from "C" stitch to "X" stitch would require manual CAM replacement - a minimum one hour machine downtime. In the new generation of systems no part replacement is needed; just a press of a button. Post sewing technology Finishing is always preferred (because it can be a continuous process, and thus more productive) over ironing and pressing, which are batch processes. Technology developments have remained stable over the years except electronic digital controls have replaced analogue mechanical controls, resulting in better accuracy of parameters like temperature and pressure. With the development of soft handle fabrics hard pressing has given way to non-contact finishing. Laser lights help increase the accuracy of alignment and also simultaneous measurement of the garment.

Automatic Pressing The steady decline of formal clothing and the proliferation of casual clothing have led to developments in laundry technology for fully computer-controlled and networked laundry equipment where dye recipe, liquor ratio, and wash cycle are all programmable. The latest fad for sandblasted effects in denim is achieved by laser, with excellent consistency and reproducibility. Outlook With mechanical engineering developments at a cross roads the question now is whether information technology (IT) is going to sweep the board? If we reflect on recent Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 8

developments a clear picture emerges: mechanical controls are being replaced by microchipbased controls, and thus IT is gradually but inevitably taking over technology development. Sewing machines, once considered a simple mechanical device, are now intelligent enough to be responsive, self-adjusting, communicative and even net-savvy. Transferring software programmes (pattern tacking, button holing, embroidery etc) from one unit to another or upgrading the software via the Internet web is already possible (Daras from Durkopp Adler). Also, technology is likely to get more flexible, with one machine capable of sewing different stitch types, light to heavy fabrics, and even different types of operation. Networking sewing machines for real time data collection on actual production and error status (Efka Ethernet, Juki-Net) is poised to be the next 'big thing' in sewing technology. The time is near when a sewing machine in a remote offshore factory can be switched on or off by typing a command from a computer located at central control office, or a mechanic will diagnose and even repair a machine from a remote location.

Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 9

Technology Used by Retailers

Introduction The rapidly changing culture, politics, and economics of modern life deeply affect the industrial environment, especially consumer industries such as textiles and clothing. As early as the mid-1980s, imports were estimated to account for close to 50% of consumption. As most imported textiles are produced with very low labour expense, huge amounts of inexpensive products can be supplied in the domestic market. Considering this situation, competitiveness in cost and quality continue to be key issues for textile manufacturers. In order to significantly reduce time and cost in the supply chain, the industry needed to become more focused on consumers by developing a supply chain management process that would be demand driven and production that would be synchronized to replenish product at the consumer's pull rate (Lovejoy 2001). Today, consumers desire to personalize the style, fit and colour of the clothes they buy, and require high-quality customized products at low prices with faster delivery (Lee & Chen 1999). New manufacturing technologies such as 3D body scanners, CAD/CAM systems, and digital textile printers have played a key role in increasing the effectiveness, flexibility, agility, and precision of production.

New Technologies Bar Coding For a global, consumer -driven, Point of Sale (POS) system, standards for bar coding have been developed in the U.S. and Canada by the Voluntary Industry Communication Committee, and published by the Uniform Code Council as the Data Communication Guidelines for Retail and General Merchandise. A bar code is one unique 12-digit number represented by a Universal Product Code (UPC), a symbology which includes the style number, the national retail federation (NRF) colour number, and the NRF size number. POS data acquired by scanning bar coding, allows comparison of buyer forecasts and pre-season orders with the actual consumer preferences as reflected in their purchases. Accurate data acquisition is important, and analyses of POS data must occur frequently. Use of POS data can help retailers and manufacturers through building more accurate item inventory and sales records, reducing or eliminating out- of-stocks through improved order planning, reducing forced markdowns via better reorder management, reducing the need for stock counts, and helping assure that the right goods can be provided to the customer in the right place.

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One problem with using UPC coding is that global standards do not comply with the NRF size and colour standard. Data compatibility standards among countries need to be established to create a Quick Response environment that supports co-ordinated global demand-activated manufacturing response.

RFID Radio frequency identification (RFID) is a generic term that is used to describe a system that transmits the identity (in the form of a unique serial number) of an object or person wirelessly, using radio waves. It's grouped under the broad category of automatic identification technologies. RFID is in use all around us. If you have ever chipped your pet with an ID tag, used EZPass through a toll booth, or paid for gas using SpeedPass, you've used RFID. In addition, RFID is increasingly used with biometric technologies for security. Unlike ubiquitous UPC bar-code technology, RFID technology does not require contact or line of sight for communication. RFID data can be read through the human body, clothing and non-metallic materials.

RFID Tags RFID has been used in manufacturing plants for more than a decade. It's used to track parts and work in process and to reduce defects, increase throughput and manage the production of different versions of the same product. RFID technology has been used in closed loop supply chains or to automate parts of the Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 11

supply chain within a company's control for years. As standards emerge, companies are increasingly turning to RFID to track shipments among supply chain partners. Retailers such as Best Buy, Metro, Target, Tesco and Wal-Mart are in the forefront of RFID adoption. These retailers are currently focused on improving supply chain efficiency and making sure product is on the shelf when customers want to buy it. RFID is all the rage in the supply chain world, but the technology is also catching on as a convenient payment mechanism. One of the most popular uses of RFID today is to pay for road tolls without stopping. These active systems have caught on in many countries, and quick service restaurants are experimenting with using the same active RFID tags to pay for meals at drive-through windows. Computer Aided Design (CAD)/Computer Aided Manufacturing (CAM) Computer Aided Design(CAD) involves the use of computer hardware and graphics software to generate design drawings. Modern CAD equipment enables the designer to quickly produce very accurate and realistic images of products to be manufactured. Computer Aided Manufacturing(CAM) is a system of automatically producing finished products by using computer controlled production machines. CAD and CAM work together in that the digital model generated in CAD is inputted to the CAM software package. The CAM software needs to know the physical shape of the product (CAD model) before it can compose a proper set of fabrication instructions to a production machine. CAD operators are in demand in virtually every area of design. A CAD operator with a background in architectural design, for example, would find employment in a firm that is involved in either residential or commercial construction. The operator would generate construction drawings on CAD from sketches and specifications from the architect. All modifications, schedules and 3D presentation models would also be created in CAD and plotted for the office and the client. The CAM operator works with the production engineer to develop a process plan or plan to manufacture a part. The operator then utilizes CAM software to generate a set of instructions to the computer controlled manufacturing machines. The operator takes care the process plan is adhered to when generating the instructions. The CAM operator and production engineer select the machine(s) and cutting tool(s) to be used in production.

Electronic Data Interchange (EDI) For several hundred years, commerce has been based upon the movement of written documents. These documents contained the information that one company needed to convey to another company in order to do business. Over a period of time the documents started to take on standard names such as Invoice, Credit Note and Order. However, the documents were certainly not of any standard layout. They did not need to be because the recipient was always a human being and humans have the ability to read, interpret and rationalise. About all that could be said of an invoice document, for example, was that it would contain header information about the parties involved, detail lines about the products, quantities and prices, Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 12

and finally some totalling information. In the early 1950s, computers started to be used by large companies for their accounting and payroll needs. Throughout the following decades, computers rapidly took over task after task until they were involved not only in accounting, but in production, administration and all other areas of commerce. But one thing did not change. The computers still produced printed documents in various non-standard formats. This situation was not too bad for those sending a document but was much worse for the receiver. Many documents must be sent from one companys computer to their trading partners computer. Computers cannot easily read written documents, and getting them to understand what they have just read is an almost impossible task, so the receiving company would have to employ personnel to re-key the information from the received documents into the companys computer system.

There are three logical levels or layers of standards required to achieve EDI information transfer, each layer having its own controlling standards organisations (although some organisations may define more than one layer). This structured approach to EDI allows for the maximum flexibility Electronic Data Interchange 7 and also enables future developments in technology and standards to be easily incorporated. From the lowest layer upward, these three layers are: The Communications Standards - Defining just how the data is to be transferred from the sender to the receiver. The Syntax Standards - Defining what overall standards format the EDI file will be in. The Message Standards - Defining exactly what the message is and what information is to be placed where within this message. These standards are going to be further described in the following sections but it is important to remember that whatever standards are used within each layer, the layering process is required to allow flexibility. For example not all users will wish to use a specific communication protocol; some may even wish to copy the data onto a floppy disk and send it in the post! So the communications level is now a floppy disk but the higher levels still remain. This principle of multiple methods of achieving the same goal is found over and over again within the EDI regime. It is not an attempt at duplication but is designed to give users the best possible solution and flexibility in all cases. Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 13

The Communications Standards are described in a section of their own.

Fit Customization-3D body scanning Technology 3D body scanning systems provided several approaches to achieving better customized fit attributes. One of the applications of 3-D body scanning systems in the apparel industry is the refinement of standard size systems. Most systems for sizing ready-to-wear garments have been based on very limited information. The 3-D body scanning data obtained from different countries or regions can be used as a bank of information about current customer sizes. The Textile and Clothing Technology Corporation, collected scans of men and women around the United States to create a database, called Size USA that gives a better understanding of the current human sizes and shapes in order to develop sizing systems that fit most of the population. Also, 3-D scanning technology can be applied to develop apparel industry advanced ready-to wear processes. At the retail store, body measurements of the

Customer could be taken by a 3-D computerized body- imaging system, then and a customer could choose from the available styles and materials. Garments could be then made to order. This integrated process would allow for the communication of subjective fit preferences by the customer to augment objective fit data from the scanner. As its most extended purpose, 3D body scanning technology can facilitate the achievement of full customized garment manufacturing. In this scenario, a customer is scanned and then either designs a custom garment from simple template designs or chooses a variety of prototype collections as a starting point for the development of their own garments. 3-D scanning systems and computer used in a virtual fitting process application makes it possible to demonstrate the virtual try-on concept. Before body scan data was available, this system was useful only for style selection, but body scan data merged with scans of garments can show how a garment fits. An early version of the virtual try-on concept is being offered by Lands End, Levi Strauss, Lane Bryant and the Wedding Channel via My Virtual Model at www.MVM.com. When body scan data are introduced into this process, more realistic and accurate virtual images will be possible. Researchers at Cornell have demonstrated how body scan data and 3D virtual representations of garments can be used in virtual fitting process. E-Commerce E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, eDepartment of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 14

business, are often used interchangeably. For online retail selling, the term e-tailing is sometimes used. E-commerce can be divided into:

E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall" The gathering and use of demographic data through Web contacts Electronic Data Interchange (EDI), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions

E-tailing or The Virtual Storefront and the Virtual Mall As a place for direct retail shopping, with its 24-hour availability, a global reach, the ability to interact and provide custom information and ordering, and multimedia prospects, the Web is rapidly becoming a multibillion dollar source of revenue for the world's businesses. A number of businesses already report considerable success. As early as the middle of 1997, Dell Computers reported orders of a million dollars a day. By early 1999, projected ecommerce revenues for business were in the billions of dollars and the stocks of companies deemed most adept at e-commerce were skyrocketing. Although many socalled dotcom retailers disappeared in the economic shakeout of 2000, Web retailing at sites such as Amazon.com, CDNow.com, and CompudataOnline.com continues to grow. E-Mail, Fax, and Internet Telephony E-commerce is also conducted through the more limited electronic forms of communication called e-mail, facsimile or fax, and the emerging use of telephone calls over the Internet. Most of this is business-to-business, with some companies attempting to use e-mail and fax for unsolicited ads (usually viewed as online junk mail or spam) to consumers and other business prospects. An increasing number of business Web sites offer e-mail newsletters for subscribers. A new trend is opt-in e-mail in which Web users voluntarily sign up to receive email, usually sponsored or containing ads, about product categories or other subjects they are interested in.

Mobile Commerce Mobile Commerce, also known as M-Commerce or MCommerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal Digital Assistant (PDA), a smartphone, or other emerging mobile equipment such as dashtop mobile devices. Mobile Commerce has been defined as follows: Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 15

"Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computermediated networks with the help of an electronic device." Product Service Available Mobile ticketing Mobile ticketing Tickets can be sent to mobile phones using a variety of technologies. Users are then able to use their tickets immediately, by presenting their phones at the venue. Tickets can be booked and cancelled on the mobile device with the help of simple application downloads, or by accessing the WAP portals of various travel agents or direct service providers. Mobile vouchers, coupons and loyalty cards Mobile ticketing technology can also be used for the distribution of vouchers, coupons, and loyalty cards. These items are represented by a virtual token that is sent to the mobile phone. A customer presenting a mobile phone with one of these tokens at the point of sale receives the same benefits as if they had the traditional token. Stores may send coupons to customers using location-based services to determine when the customer is nearby. Content purchase and delivery Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones, wallpapers, and games for mobile phones. The convergence of mobile phones, portable audio players, and video players into a single device is increasing the purchase and delivery of fulllength music tracks and video. The download speeds available with 4G networks make it possible to buy a movie on a mobile device in a couple of seconds. Mobile Purchase Catalog merchants can accept orders from customers electronically, via the customer's mobile device. In some cases, the merchant may even deliver the catalog electronically, rather than mailing a paper catalog to the customer. Some merchants provide mobile websites that are customized for the smaller screen and limited user interface of a mobile device. Mobile marketing and advertising In the context of mobile commerce, mobile marketing refers to marketing sent to mobile devices. Companies have reported that they see better response from mobile marketing campaigns than from traditional campaigns. Mobile campaigns must be based on the global Content Generation or what is called Generation C and four other 'C's: Creativity, Casual Collapse, Control, and Celebrity. A brief introduction... Creativity: let's face it, we're all creatives, if not artists! (Notice we didn't mean talented artists ;-). And as creativity normally leads to content, the link with GENERATION C is obvious. Which then brings us to Casual Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 16

Collapse: the ongoing demise of many beliefs, rituals, formal requirements and laws modern societies have held dear, which continue to 'collapse' without causing the apocalyptic aftermath often predicted by conservative minds.

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Applications of IT
Supply Chain Management Supply Chain may be defined as the series of companies that eventually make products and services available to consumers, including all of the functions enabling the production, delivery, and recycling of materials, components, end products and services. Supply Chain Management may be defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across business within supply chain for the purpose of improving the long term performance of the individual companies and the supply chain as a whole.SCM gives a valueenhancing and long-term benefit for the organisation. Firms with large inventories, many suppliers, complex product assemblies, and highly valued customers have a lot to gain by good practices in SCM. The cost of inventories was over $2.2 trillion in U.S in 2000. Transportation and inventory carrying cost in U.S totalled $434 billion in 2000 (U.S Central Bureaus Annual Survey of Manufacturers). The best way to leverage the potential of SCM is by the efficient use of IT in this area. The importance of IT in SCM has long been acknowledged but little work has been done in this area. But with growing competition and greater emphasis to keep price as low as possible the companies are looking towards strengthening their supply chain. IT can be used in SCM in various areas such as: Purchasing Management Demand Forecasting Performance Evaluation Inventory Management Implementation of JIT ERP Systems Purchasing Management Electronic data interchange was developed in 1970 to improve the purchasing process. The rapid advent of internet technology in the 1990s spurred the growth of non-proprietary and more flexible internet based e-Procurement systems. Earlier critics argued that E-commerce have been over inflated and it results in larger expenses than its savings. Today though many well managed e-commerce firms are beginning to thrive as users realize the benefits of their services. The material user initiates the e-procurement process by entering a material request and other relevant information. This is then submitted to the purchasing department. After verification of this the buyer transfers this data to the e-procurement system and assigns qualified suppliers to bid for it. Suppliers connected to this system receive the bid instantaneously. The purchasing department maintains a list of preferred suppliers for each category of material. Thus the buyer is able to submit the bid request to numerous suppliers within seconds. The traditional manual purchasing system is a tedious and labour intensive task. The new eprocurement system is a time saving system. It also results in a lot of cost saving as manual tasks are reduced. This system is much more accurate than the manual system. It allows Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 18

mobility to the system. Audit trails can be maintained for all transactions in electronic form thus increasing the traceability. This system results in overall better management. This also results in various benefits for buyers. Forecasting Demand Forecasting provides an estimate of future demand and the basis for planning and sound business decisions. The goal of a good forecasting technique is to minimize the gap between actual and forecast demand. All the factors that influence demand, the impact of these factors and there time frame must be considered in developing an accurate forecast. Also buyers and sellers should share all the relevant information about the forecasting so that a correct decision can be made. Various forecasting techniques are as follows: Jury of executive method Delphi method Sales force opinion Consumer survey Simple average forecasting Moving average Weighted moving average Exponential smoothening Regression analysis

Some of the forecasting software used are: Forecast Pro Software: It is used by over 15,000 companies in 84 countries. The software is easy to use and has a built in expert selection system that analyzes the data, selects the appropriate technique for forecasting, builds the model and calculates the forecast. Smart Software: This software is used by companies such as HP, Mead Corporations etc. This is designed to run on Windows 95, 98, 2000, XP. Performance Measurement It is said that You cant improve what you cant measure. Performance measurement is the use of statistical evidence to determine progress toward specific defined organizational objectives. The daunting task of measuring performance for organizations across industries and eras, declaring the top performers, and finding the common drivers of their success did not occur to anyone until around 1982, when Tom Peters and Bob Waterman got down to work researching and writing. In Search of Excellence. This publishing sensation challenged industrial managers actions and attitudes, and inspired researchers and scholars to further pursue the theory of high performance. This task becomes more complex as corporations diversify into multiple industries. A researcher must take this into consideration when conducting a comparative analysis of companies.

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CASE STUDY
Case 1: Hyper City
HyperCITY- Overview HyperCITY was incepted in the year 2005 and it provides a truly international shopping experience, is large and modern and houses both national and international brands. Business Mission HyperCITYs business mission is to sustain profitable growth by encouraging customers to discover an authoritative assortment of quality products with exciting promotions in a globally competitive retail environment where our associates grow within the business. What HyperCITY is: Hypermarket Model- 1,20,000 Sq. ft. best priced full supermarket within. Widest general merchandise range. Dominant assortments in chosen categories. Shopping experience. Leisuretainment. 9 Stores Across India Malad, Thane, Vashi, Amritsar, Bangalore 1, Bangalore 2, Jaipur, Cyberabad, Bhopal Use of ERP & SCM at HyperCITY ERP HyperCITY was the first few retailers to use scanners and barcodes and completely computerize its operations. Today it is one of the few stores in India to have retail ERP (Enterprise resource planning) in place, which is the best retail planning system in the world. With the help of the ERP, they are able to open new stores faster and get information about merchandise and customers online, which reduces the time in taking quick decision. SCM Understanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors has led HyperCITY to streamline its supply chain. The company has developed process manuals for each part of the logistics chain. These modules include vendor management, purchase order management, stock receiving systems, purchase verification and inventory buildup, fixing of price and store tags, dispatch of stocks to the retail floor and forwarding of bills for payment. If we talk about various brands then the answer is that they have a direct tie ups with different companies and companies deliver all the needed products to their door-step means deliver all the goods to every HyperCITY. But Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 20

there are some companies which do not provide them these services so for those they have their own carrier. Softwares Used at HyperCITY Merchandise Management and POS Operations HyperCITY has deployed ERP solutions from JDA-MMS (JD Armstrong- Merchandise Management System). JDA's innovative software and services enable retailers to:

Improve forecast accuracy by leveraging one synchronized view of demand. Retailers can select from multiple forecasting models and optimal tuning parameters to develop forecasts from multiple demand streams that address the entire product lifecycle. Synchronize planning for more informed decision making across your enterprise. By aligning common financial objectives with merchandise planning, retailers can support and optimize enterprise-wide strategic, financial, assortment and operational planning activities. Enhance visibility into assortment plans with optimized processes. Retailers can combine planning and product selection with enhanced assortment management to produce plans that meet consumer needs and fulfill financial objectives. Increase margins through more profitable, targeted assortments. Enable retailers to execute precision merchandising with comprehensive clustering, space planning and assortment management capabilities. Leverage best-in-class merchandise management processes. Retailers can take advantage of sophisticated transaction and purchase order management, as well as accurate, real-time inventory management and the ability to track all inventory movements. Drive more effective promotions for increased sales and profits. Retailers can combine advanced demand forecasting and optimization with comprehensive price and promotion execution to meet financial goals.

Demand Management: Predicting customer demand is complicated by shorter product lifecycles, expanding product assortments, multiple channels, frequent promotions and more. By leveraging an integrated planning framework with multiple forecasting methods, JDAs Demand Management solutions help companies accurately prepare for future demand. JDA's unmatched, economical scalability to handle hundreds of millions of stock-keeping units without compromising critical functionality enables organizations of all types to predict demand down to the lowest-level demand signals in their supply chains.

Increase demand visibility across the entire trading network

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Create one synchronized view of consumer demand Improve forecasting performance and accuracy
Optimize inventory levels and increase inventory turns

Inventory Management To maximize supply chain performance, companies are faced with the challenge of maintaining a profitable balance among speed, service levels, and the risk and cost of inventory deployment. JDAs Inventory Optimization solution provides companies with endto-end capabilities for managing inventory strategy, planning and execution, enabling them to achieve superior service levels, gain market share and reduce costs. By leveraging multi-echelon inventory optimization, companies can improve the accuracy and performance of daily replenishment and inventory planning. JDAs inventory management solution incorporates scenario management, enabling companies to make strategic, informed decisions that further enhance their inventory control.

Quickly adapt inventory policies and stocking strategies to address changing market conditions, business objectives, supply chain constraints, customer segmentation and buying behaviour Eliminate excess inventory and reduce obsolescence costs while maintaining customer service levels Develop inventory strategies that maximize the profitability and volume of key materials, components and products Reduce stock-outs and excess exceptions through early warning and performance analysis

Merchandise Planning and Assortment Management To improve performance and competitive advantage, retailers need to synchronize their strategic, financial and operating planning activities across their retail operations. With JDAs Merchandise Planning & Assortment Management solutions, companies can develop comprehensive, enterprise-wide plans that more accurately reflect consumer demand and drive margins.

Provide enterprise visibility into strategic, financial and operational planning activities Allocate optimized assortments based on localized consumer demand Pinpoint consumer preferences to decrease carrying costs, lost sales and markdowns Improve global merchandising decisions and reduce unproductive inventory

Sales and Operations Planning Retailers must bring together the best people, processes and technologies in order to execute corporate strategies at the store level and provide a superior customer experience. JDAs Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 22

Store Operations solutions enable retail stores to serve as a true extension of headquarters while maintaining the customer connection. Transform your business by using JDA solutions to: Accelerate sales and customer throughput, while offering a better customer experience Manage inventory more effectively and efficiently Improve cash management with secure transactions and adherence to compliance standards Gain better scheduling control and visibility of your labour investment E3 The mathematical software helps HyperCITY analyze inventory trends, helping the enterprise refill its shelves faster at lower costs, forecast better, and address the critical element of product availability. I-Scan this handheld barcode scanning device lets customers scan their merchandize as they take them off shelves. When they are ready for checkout, customers dont need to stand in a queue as their merchandize is scanned and billed - saving time and improving customer experience. This is only used at HyperCITY Malad. INtactix This has been developed by JDA and HyperCITY. INtactix helps the store managers visualize how to stock shelves using optimal sales and margin expectations. Communication The stores are all connected to the data center using the VPN network of SIFY. We also have leased line connections as backup from the stores to the data center wherever possible. Other Devices Used Hand Held Scanners: These are used for stock take, price checking, receiving and code management. These are connected to the main server of the store through Wi-Fi. POS Computer Systems These are custom made PCs for HyperCITY by Hp(Hewlett Packard). These are used with the POS scanners and POS Card Swipe machine and Printers as an integrated unit. POS Scanners These are used to bill the items to the customer and are attached to the POS computer. These are small printers that are used with a large paper roll having a width of 3. POS Card Swipe Machine These machines are used for money transfer from the customers bank account or credity card to HyperCITYs bank account. These swipe machines are the standard machines that were provided by ICICI bank. CCTV Cameras (Close Circuit Television Cameras) These are used to control the shop lifting and reduce pilferage at the store. The entire area of 120000 SFT (square feet) is covered with these cameras. Department of Fashion Management Studies, National Institute of Fashion Technology, Jodhpur Page 23

GPS Trackers All the trucks and loading vehicles are fitted with a Global Positioning System. The trucks can be tracked and optimally used with least free time.

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Case 2: GUCCI

Gucci Launches Interactive Fashion Show Technology Gucci is taking fashion show live streaming to a new level of tech geekiness, starting today with their Spring 2011 show in Milan. After an 18-month long renovation, Gucci recently introduced its redesigned digital flagship at Gucci.com, with creative direction by the brands designer, Frida Giannini. Gucci Connects E-venta livestream of the Milan show launched today at 8am EST as part of the celebration of the e-commerce sites redesign. On Gucci Connect users were invited as virtual guests, given a virtual seat assignment, and according to the company, given the same guest benefits as Milan event guests attending the live runway presentation. (No mention of whether that includes the right to give the stink eye to show crashers in your virtual seat or snagging a goody bag.) Essentially, the company integrated multiple digital platforms on which people interacted during the runway show: via webcam, Facebook, Twitter, and a live chat on the site. Gucci says that virtual guests mixed with the worlds buyers and press. After signing up for an e-ticket on GucciConnect.com (which over 10,000 people did) and signing-in, guests were connected via webcam or photo to the site. Then they chatted and tweeted with the other virtual guests for a frenzied ten minutes during the show. There was even a Facebook challenge. If you downloaded a special Facebook application and created the largest group, you got VIP seating and your webcam was projected at the show. Indeed, there was no eating Cheetos in your PJs while watching. Whether this initiative is successful or not, Gucci is raising the bar for consumer involvement in what is clearly no longer an experience for industry insiders only.

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References
Dorothy, L. J., Vachtsevanos, G., Jasper W., 1994, "Real Time Fabric Defect Detection and Control in Weaving Processes". Project No. G94-2. National Textile Centre, USA Shanley, L.A., Anderson, L.J., Milenkovic, V.J., Kaliman, I., 1994, "Part Layout and Optimisation of Part Shape for Marker Layout in Apparel manufacturing". Project No. A94-13, National Textile Centre, USA. Clapp, T.G., Titus, K.J., Olson, L.H., Dorrity, J.L., 1994, "The On Line Inspection of Sewn Seams". Project No. S94-4, National Textile Centre, USA. Jana Prabir, 2000, Technology Trends in Apparel Manufacturing: An IT take-over? Millennium Document, NIFT, New Delhi. www.hypercityindia.com www.jda.com http://www.cxotoday.com/story/hypercitys-it-path-for-retail-growth/
http://fashionista.com/2010/09/gucci-launches-interactive-fashion-show-technology/

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