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THE APPAREL INDUSTRY: INVESTING FOR THE FUTURE

OCTOBER 01, 2002
Unlike many other industries, the apparel industry is well known for being slow and reactive when making operational investments. We dislike admitting it, but it's true. This is due in part to the fact that old ways of thinking are often passed from one generation to the next, each trying to maintain the traditions of its predecessors. Other reasons have to do with the consolidation of the industry and its relentless pursuit of cheaper manufacturing alternatives outside the United States. Apparel companies must take a fresh approach to their business operations. The need for unprecedented restructuring in organizational control, integration, efficiency and speed is not just a matter of competing; it is a matter of survival.

Yes, the industry has changed. However, a lot of companies have resisted altering their methodologies and systems to work around the basic requirements of these changes. In today's environment it has to be understood that there is only one constant, and that constant is change. The companies who embrace change will not only survive - they will thrive in a future industry that will have no room for second place.

The last few years have been tough, but there are indications that we are in an economic recovery. The apparel industry should sense the economic escalation and be prepared to capture the opportunity or face the unfortunate results of letting it slip away.

Some companies have sensed the next wave of opportunity and are preparing to lead in their respective segments. For instance, Moda America LLC, a manufacturer, importer and wholesale distributor of men's fashion tailored clothing, dress shirts and sportswear, has just finished modernizing its entire business infrastructure, with a focus on EDI, order processing and warehousing using the latest radio frequency devices.

Moda America realized that its business model was changing. It needed to communicate electronically with its customers, upgrade customer service and the speed and accuracy with which it could ship its goods. Improving individual stand-alone existing systems was an option so the company decided that in order to become the best supplier to its customers it needed an unparalleled technical infrastructure.

Take Wisney LLC, a growing full package contractor with twin plant operations in Alabama and Mexico, as another example. Its existing systems were adequate, but workarounds were required for various functions because its product lines changed and its manufacturing process required more accuracy. Wisney determined that workarounds would limit its efficiency as a full package contractor. The company completely replaced its infrastructure, interfacing all aspects of the bill of materials, purchasing, inventory and production. Wisney's goal has been to ensure that its operations flow seamlessly from one process to the next with no potential for a weak link.

At Jodee Bra, a completely vertical bra manufacturer, most operations were fairly automated and operating well. However, its existing solution was simply outdated and not easily maintainable. Jodee decided to be proactive and is implementing a new systems environment consistent with today's technologies that will also meet the company's needs far into the future.

All of these companies could have taken the traditional "status quo" approach. But they made the decision to advance themselves when others may have blamed the economy or other various trends as an excuse for not moving forward. Such excuses can only be considered valid if the companies espousing them are actually progressive when times are good.

The time has come for the next generation of apparel companies to step forward and become leaders in their respective segments. The efficient use of the Internet, wireless solutions and total systems integration are just a few ways in which to bring a company in sync with the current business economy, and are simply the foundation on which all industries will reside if they are to be successful.

Apparel companies should recognize where they are and where they are going. Some companies will remain in their existing operational position simply to survive, while others will take the necessary steps to become a leader in their industry. Where will you fit in?

Brian Javeline is the executive vice president of Accelerated Computer Technologies Inc. (ACT), a systems solutions provider with more than 15 years of experience in automating critical business functions for the apparel industry.