IT OUTSOURCING IN APPAREL INDUSTRY

Presented By:
Harshni Sundarraman- 10DM-061 Rahul Seshadri. G- 10DM-114 Vineeth Viswanath- 10DM-173 Vikas Nandal- 10IT-029

Indian Apparel Industry

Contributes 14% to India s industrial production Amounts to 4 % to the GDP and 17% to the country s export earnings. Second largest employment provider in the country Contributes approximately 4% to the global textile and apparel market.

Indian Apparel Market

Women s wear is growing at a higher rate of 12 % Women s wear is expected to reach 43 % by 2020. The Indian Domestic Apparel retail market was worth Rs 1,54,000 crores (US$33 Bn) in 2009

Indian Apparel Market Share

Kids 20% Men 43%

Women 37%

Main Growth Drivers

Increasing Population Increasing Income Levels Rapid Urbanization Improving Demographics Increased Competition Increasing penetration of retailers into smaller cities

Need for IT in Apparel Industry

For shorter Lead Time Tight delivery schedule and smaller margins Insistence on higher quality For order tracking, accounting, purchase, inventory management Co-ordination between various departments for smooth running of business

Classification of Apparel Industry

Small Scale Firms Medium Scale Firms Large Scale Firms

Challenges for IT Implementation

Scalability issues Heavily dependant on Exports Not easily customizable

Objectives
To create a centre of excellence for research in IT for textiles and apparel industries. To evolve a Data Bank on textiles and Apparel for benefit of Producers and Traders. To develop a Sample Bank of major varieties of fibres, yarns and fabrics produced in India as well as those imported into the country. To keep track of major national and international textile related policies and tariffs. To undertake IT based research and development projects having direct impact on the performance of the industries. To generate awareness and opportunities of IT in the textile sectors

Activities
Computerised MIS in mills. IT based Power looms. IT based DYE house management. Electronic Communication of Textile Design and Colour. Electronic Catwalk and Virtual Reality Systems for Depicting Apparel and Textile. Fashion Intelligent Navigation System. IT Integration in garment manufacturing. Awareness Generation of IT in Textiles.

Benefits
Improvement in Productivity and Quality. Reduction of Production and Quality Control Costs. Reduction of Inventory of Raw Material and Work-in-Progress. Reduction of Raw Material Waste and Finished Products Rejects. Effective New Product Presentation and Sampling to Clients.. Reduction of Overall Product Delivery Time. Rapid and Efficient Order Management. Useful in Rational Policy Formulation of Textiles. Increased Customer Satisfaction.

Organisation Structure
Council of Administration

Director

Research Advisory Committee Infrastructure/ Laboratories Dept.s

Advisory Committees

ATIRA
It is an autonomous non-profit association for textile research ATIRA was established on 13th December 1947, and started in 1949 after due recognition by the Council of Scientific and Industrial Research under the Ministry of Science and Technology Membership is voluntary Sources of finance Annual Subscription from member units. Income from services rendered. Sponsored research from Industry, Ministry of Textiles, Ministry of Information Technology and other agencies like Gujarat State Government. Grant-in-aid from Government of India.

Objectives of ATIRA
To help the Indian textile industry to become internationally competitive through Application oriented scientific studies. Promotion of professional approach and striving for highest standards of excellence in technology, engineering and management. Proactive initiatives to meet challenges and to prepare frontier area

Facilities & Infrastructure

ATIRA has well equipped testing facilities for fibres, yarn, fabric and association of spinning machines, testing of dyes Has full fledged technical library and other specialized activity centres such as National Information Centre for Textile and Allied Subjects (NICTAS), Information Technology Centre for Textile Industry (ITCTI), Centre for Environmental Counselling and Information (CECI), Power loom Service Centre (PSC), Computer-Aided Textile Design Centre (CATD).

PFL Lifestyles : Brief

India s fastest growing apparel company. Number of brands : 6 Number Stores across India : 900 ( exclusive and franchise ) Number of multi brand retail outlets : 2300 Going to introduce Two International Brands in India in early 2012 High investment in research and innovation.

Caters to every age group and both sexes Main Target : Males of 15 years and above

Brand Portfolio
Vinzoni

Premium range for businessmen

Formal and occasion wears

Southend

Vinzoni Woman

Premium range for businesswomen

Brands
Low end casual wears
SRT MSD

Premium Smart Casuals

PK

Classical garments with impeccable fits and style

IT in PFL Lifestyle
One of the best IT infrastructure in Apparel Industry. Replaced Legacy systems with newer solutions Few IT solutions implemented were: Enterprise Resource Planning(ERP) systems. Planning and Optimization tools Demand forecasting tools. RFID Business Intelligence Online solutions.

ERP implementation
Done by ADI Services- which had prior experience of implementation in apparel and footwear industry. Business Process re-engineering was made to suit the changes. ERP connected: manufacturing unit Dyeing unit Warehouse (Inventory management) Sales team Administrative teams (Accounts and HR)

Other tools
Planning and Optimization tool. To monitor and effectively use manufacturing capacity. Demand forecasting Idezign- Online solution Customers to design their own clothing. Collaborations with social networking sites. Planning to start a e-shopping portal.

ERP- Problems in Data Retrieval Process

Request Sales Team for Data Retrieve information Database Analysts

Send data

Sales Team

Database

Problems
Time consuming (2hrs to 1 day). Laborious process Misunderstanding between analysts and Sales teams Cancellation of orders was difficult- Manual review of information before changes. Could not connect to the retailer easily.

The Way out!

New ERP Vendor. RFP sent to ITS Technologies, Tech Unlimited, Redfire Services, Soft-Pro Technologies. Proposals Evaluated Based on Solution viability Cost Technical expertise and assistance Proposed Implementation time Past records of the companies

ReportPlus
ITS Technologies Creation of any report made easy Remote access for sales people 10 most commonly generated reports- at the click of a button. Automate report generation Frequency of generating can be customized. Automatic mailing to the sender of request. Transition period: 2months- both systems running properly.

Benefits
Reduce report generation times. Complex report- from hours to an hour. Commonly generated report- 10min. Call to analysts reduced by 50% Sales team can make quicker decisions avoiding waiting time.