Smart, creative and fashion-forward designers are the most important asset for successful apparel and home businesses. Without attractive designs, a brand cannot grow and compete. But it takes more than great designs to send desirable products to market—brands must also source from reliable suppliers, contain production costs, manage schedules, and streamline product management.
Product Lifecycle Management (PLM), technology enables fashion and home décor brands to accelerate development cycles, reduce costs and overruns, track and manage calendars, and improve collaboration between designers, product managers, and supply chain partners.
Let’s examine five ways the right PLM system can ignite creativity within a design team, boost productivity and foster collaboration:
1. Free Designers to Dream and Design
A good PLM solution will make it easier for designers to work and create by supplying them with the interface and tools they like to use. Designers don’t want to feel bogged down in red tape and business process. They need a workspace that inspires them. To empower creativity, pay attention to the lighting, furnishings and ambience of the office.
PLM system workflows should always augment, and never inhibit, the creative process. Designers tend to gravitate toward Apple products for their interface and user experience, so a good PLM will offer that style of usability and that look. They want an easy-to-use, yet elegant looking technology tool to do their day-to-day work. They also want to be able to use the design tools they are most accustomed to within the PLM system. That’s why Exenta PLM REVO™ includes a Design Plugin for Adobe Illustrator.
2. Accelerate the Design Process
PLM delivers a more efficient path from concept to customer, accelerating the design process by making it easy for designers to access the information that they need to be able to reuse components and designs. When prior designs are organized and easy to search, designers can quickly create additional product designs by adjusting existing templates for different sizes and colors. Once the design concept is complete, PLM software makes it easy to create multiple BOMs and measurement pages.
3. Draw Inspiration from Anywhere and Everywhere
To the creative mind, inspiration for new designs can be found in many places, such as architecture, art and nature. The younger generation of digital natives see a myriad of ways to incorporate technology tools into their creative process. They mine social media for ideas, snap photos on their phones and sketch on their mobile tablets. The right PLM system to support creativity will help designers incorporate these ideas and inspirations into their design work with ease. For example, Exenta PLM REVO™ quickly imports smartphone photos into designers’ image boards.
4. Collaborate with Specialists and Suppliers
Designers need to work very closely with others, including specialists as they create new products. For example, within fashion design, new ideas like nanotechnology sensors embedded in fabrics will require strong collaboration with technical experts and engineers. Designers will also need to be able to review technical specifications. A good PLM system should incorporate collaboration tools that give designers easy access to the people and information they need to be able to produce new designs and get them created and manufactured.
5. Improve Communication Across the Organization
The design team needs to be able to communicate easily with other areas of the business, including sourcing and product management. PLM should the ability to use common messaging platforms for easy, real-time communication with colleagues. PLM also helps route assignments through the design process, automating handoffs between design milestones.
Design and sourcing data should not exist in a technology silo. An effective and integrated PLM process should integrate key technologies such as ERP, EDI, supply chain management, warehouse management and logistics so that information flows freely across the organization.
Ready to learn more about how Exenta PLM REVO™ accelerates the design process while also supporting designers in becoming more creative and collaborative? Schedule a demo and see for yourself how it frees designers to create their best work .
A good PLM system can allow companies in the fashion industry to increase innovation, collaboration, and productivity. Schedule a demonstration today to see how Extena’s PLM Revo can assist your company today!
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The fashion and home goods industries operate global supply chains that must move quickly to deliver on trend products at the speed of consumer demand. Electronic Data Interchange, or EDI, enables two companies to exchange information instantly about orders, payments, inventory, shipments, production orders, and more.
In today’s global business world, EDI has gone from a nice-to-have to a must-have tool for facilitating rapid commerce. The benefits of using EDI in your business are many, and include:
• Improved order accuracy
• Reduced order processing times
• Increased global supply chain visibility
• Greater operational efficiency
• Faster communication with vendors and customers
EDI Keeps Global Supply Chain Data Flowing
EDI enhances information exchange between apparel and home goods brands and their suppliers, wholesalers, retailers, third-party manufacturers (3PM) and third-party logistics providers (3PL). Brands gain excellent visibility into the status of Work in Progress (WIP) and order fulfillment as each new job or order works its way through the global supply chain.
EDI helps rapidly growing businesses scale more quickly, without becoming bogged down waiting for information. Everything can be automated and scheduled, so your employees no longer need to prepare information and transmit it manually to supply chain partners.
Only EDI can ensure that you are sending and receiving up-to-the-minute information about orders and fulfillment with your trading partners. Customers place orders and you receive the data instantly. Likewise, if you need to place new production orders to 3PMs halfway around the world, they will have the information needed to get to work ASAP. Your warehouse or 3PL will receive the information about shipments arriving from manufacturing or shipments that need to be picked and shipped to retailers.
EDI Increases Order Accuracy and Speeds Fulfillment
With EDI, it’s easy to receive thousands of purchase orders per day and process them in minutes. You can create a catalog with item numbers, price list, sizes and options that customers can receive instantly, at any time, and use to create accurate orders.
EDI can help reduce payment risk and improve cash flow. When an order comes in, EDI can automatically request confirmation of the customer’s credit line with their Factor [ex., Wells Fargo or other institutions]. When orders are filled and shipped, EDI can automatically send invoices to the Factor and the customer.
Manual data entry is prone to error. When your EDI is built into your ERP system, the information flows seamlessly without the possibility of typographical errors that arise when your employees have to rekey data into a separate system.
Improved Visibility Strengthens Customer Relationships
With EDI, brands enjoy unsurpassed visibility into the status of production, inventory, logistics, and order processing. No more having to send employees to Asia or South America to iron out the status of work in progress. No more wondering if you’ll be able to fulfill your biggest orders.
With EDI, you can stay on top of every production order, shipment and sale. And you can extend that enhanced visibility to your customers. Without hiring more employees or spending extra time creating reports, you will be able to deliver better informed customer service that strengthens long-term business relationships.
EDI Opens New Sales Opportunities
Strong relationships with smaller customers may still be built on relationships alone. But without the proper systems in place to provide efficiency and visibility, larger customers simply cannot do business with fashion and home goods brands. Brands that leverage EDI position themselves to do business with the world’s largest retailers and e-commerce platforms, many of whom require EDI as their standard for information exchange. Getting your products into a giant retailer like Walmart, Target or Macy’s can generate business-transforming sales volume and revenue potential.
Exenta ERP Delivers Built-in EDI
If modernizing your business with EDI sounds intimidating—you can relax with Exenta EDI. Part of our next-generation Exenta ERP, everything you need for flawless EDI is built in to the system. Our EDI was designed to be extremely easy use—once you set it up, it works every time. Our technology takes care of data file translation and transmission behind the scenes. No matter the complexity, Exenta EDI puts the information you need at your fingertips.
Every task is completed in once place—no need to go into multiple systems to set up new trading partners. There is no third-party translator to cause technical glitches. Our Customer Support team walks each customer through the process of setting up their first trading partner from start to finish.
Exenta EDI can be a game-changer for brands seeking greater visibility and more sophisticated trading partners. Exenta ERP also provides seamless data handling across multiple channels, including pre-built integration into e-commerce heavyweights such as Shopify, Magento, and Amazon. Schedule an Exenta ERP demo today and ask to see how easy it is to streamline your supply chain with EDI.
Having an advanced EDI system helps your company stay up to date with trends and keep up with customer demand. Learn more about how Exenta’s EDI system can benefit your supply chain.
Discover More About Exenta’s EDI Software
In the fashion and home goods industry, retailer chargebacks to wholesalers and manufacturers are disruptive to operations and negatively impact the bottom line. Generally, chargebacks are the result of mistakes—a failure to adhere to the retailers performance standards in terms of order accuracy, order timeliness, or product labeling. The result is a fine levied back against the manufacturer or wholesaler—a chargeback.
For decades, apparel and home goods manufacturers had to accept a high number of chargebacks from retailer customers as a cost of doing business. As Supply Chain Digest editor-in-chief Dan Gilmore once recalled, “in the 1990s, Kmart used to just take 2% off the invoice just on the assumption every supplier would have violations and the automatic deduction was just the easiest approach.” Today, fashion manufacturers would like their customers to be more precise than that when it comes to chargebacks. Fortunately, technology exists to avoid costly chargebacks and greatly reduce the total number that need to be processed.
The Cost of Chargebacks in the Fashion Industry
All major retailers have vendor compliance scorecards with the goal of encouraging their suppliers to improve order accuracy. When orders don’t arrive on time, retail shelves may go empty or the retailer has to overstock other inventory in order to avoid it. When orders are processed incorrectly, the wrong products or sizes may be received. Mislabeling or mistakes on Advanced Shipping Notices (ASN) can create havoc in Receiving.
Out-of-compliance shipments from manufacturers lower retailer productivity and sales revenue. Chargebacks are the mechanism by which retailers recover lost revenue and wasted time. According to Zipline Logistics, chargeback fines can equal up to 20% of an invoice. On a large order, chargebacks can potentially cost manufacturers thousands or even tens of thousands of dollars.
Chargebacks have another hidden cost; they often cause mistrust and resentment between vendors and retailers. Many fashion brands are convinced retailers run their chargeback department as a profit center—and some might. Usually retailers deduct the chargeback fees from the vendor’s invoice, so there is little the manufacturer can do to protest, since the money is on the retailer’s side of the table. From the retailer perspective, retailers—especially giants like Walmart, Target and Amazon, must shore up the reliability of their supply chain in a world of just-in-time inventory, fast fashion, and consumer expectations to receive any product within a matter of hours or days.
Even though chargebacks are one of the most negative aspects of vendor/retailer relationships, they don’t seem to be going away anytime soon. A 2017 Supply Chain Digest study found 43% of retailers and 58% of vendors expect increased chargeback activity over the next few years.
How Shop Floor Control and EDI Help Proactively Defend against Chargebacks
Because most retailers simply subtract chargebacks from the amount they pay on manufacturers’ invoices, the best defense is a good offense. Avoid mistakes using superior business processes and technology.
Shop Floor Control solutions allow a manufacturer, or even a vendor who works with manufacturers, to see every aspect of work in process, in real time. This can help you avoid the chargebacks associated with late delivery of orders to retailers. Not only can you see when each order should be ready for fulfillment, you can also monitor the quality of the products in real time and see the labor that’s being used to produce it.
If an important order is slipping behind on production deadlines, brands can monitor what’s happening on the production floor, even from thousands of miles away. In an instant, you could offer employees incentive pay to speed up production or choose a different shipping method to shave time off delivery. You could also reprioritize upcoming production orders ensure you’ll meet your deadlines for your most important customers.
Our customers typically experience between 20-30% improvement in productivity or cost savings using Exenta Shop Floor Control — all while enjoying real-time visibility and control needed to reduce costly chargebacks.
Sign up for a Shop Floor Control demo and learn what it could do to improve timely and accurate deliveries to your retail partners.
EDI mistakes can be a prominent source of chargebacks if you lack true automation, integration with critical supply chain systems like ERP, and key functionality to scan transactions for mistakes prior to delivery. Generally the mistakes for chargebacks come from an EDI transaction that goes out unchecked. In other words, you don’t have the ability to see that the transaction is missing key data such as a product size, weight, quantity, etc. As soon as you send out the ASN without all of the fields filled in properly, you’ve probably incurred an immediate chargeback from the retailer.
With the proper EDI automation in place, you’ll be notified that there’s something missing automatically and you will be able to proactively review the EDI transactions and correct mistakes before electronic paperwork goes to your customers. Exenta EDI is built into our next-generation Exenta ERP, and it was designed to be extremely easy to set up and to use. Every task is completed in one place without any need for third-party translators or other apps.
Schedule an Exenta ERP demo today and see how our EDI’s automatic checks and notifications can help your team produce flawless paperwork for your trading partners, including POs, ASNs, invoices and much more.
Without good EDI software in place, it is likely that mistakes are being missed and costing your company money. Contact us today to learn how Extena’s EDI software can help reduce chargebacks and lower costs for your company.
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