Ch. 11 Apparel Production Business Strategy, Sales and Distribution

Inventory Management Inventory Goods held on hand for the production process or for sale to customers Raw materials Work-in-process Finished goods Inventory Control Process of maintaining inventories at a level that prevents stockouts and minimizes holding costs Materials Handling Includes all activities of the goods not involved in actual production processes (moving, storing, packing, etc.)

Benchmarking for Quality Products Benchmarking Continuous process of measuring a company’s goods, services, and practices against world-class firms that are renowned as leaders. Company’s performance is changed to meet or beat those methods. Proactive – To do everything right the first time (BETTER!) Reactive – To fix problems after they occur Quality Programs Emphasize high standards of product quality for top customer satisfaction Total Quality Management (TQM) Internal requirements needed to deliver the right products in the very best way Increases company profits

Trademark Protection Trademark Any word, name, logo, device, or combination of these that is used to identify and distinguish goods and one company from others Companies legally protect trademarks by registering with Patent and Trademark Office of federal government

Technological Advances in Apparel Manufacturing High-tech computer technology and equipment is revolutionizing the entire apparel production industry. Integrate companies, good, and services into comprehensive systems that continuously communication and interact. See 11-8 and 11-9 in textbook Robotics Machines programmed automatically to do mechanical tasks Piecework like pick up garment, align it, sew it, trim it, and move it to next station

Computer-Integrated Manufacturing CIM allows maximum coordination and centralized control of production operations Example: Achieves “hands-off” production, a pillowcase is totally made and packaged by machine. See Figure in textbook.

Selling the Finished Apparel When, Where, How to profitably sell lines to retailers? Market Weeks (or Fashion Weeks) Retail store buyers from all over the country go to fashion market cities Look at new collections in fashion shows and/or manufacturers’ showrooms New York City is major U.S. fashion city, L.A. on West Coast

Selling the Finished Apparel Sales Presentations Formal, well-prepared showings of goods to potential customers Answer questions and take orders Showrooms Company-owned sales areas where merchandise is displayed and sales presentations are given Apparel Marts Large buildings or complexes that house permanent showrooms Enable many apparel manufacturers to be in one convenient location Chicago Apparel Center, Dallas, Atlanta, Los Angeles, Seattle, San Francisco, Denver, Minneapolis, Miami, Charlotte, Kansas City

Selling the Finished Apparel Traveling Sales Representatives Show and sell lines around country Contract Written agreement between buyer and seller detailing all conditions of the sale When sales transactions are finalized Trunk Show Complete collection of samples is brought into a retail store or exhibition hall by a manufacturer for a limited amount of time Heavy local advertising, orders are taken directly from customers for later delivery