Apparel Industry Trends, Challenges, Observations and Solutions Presented by Fred Isenberg, VP Sales New Generation Computing, Inc. New Generation Computing Leading Product Lifecycle Management, Global Sourcing and ERP Solutions for Fashion, Apparel and Lifestyle Products

The Company Specialists at PLM and Global Sourcing  Incorporated 1982  1998 – division of American Software (AMSWA)  Apparel, Footwear and Accessory Specific Software  350+ Customers Worldwide  Active Member NRF, AAFA, AAPN  Microsoft Certified Partner

Product Suites Specialists in PLM & Global Sourcing  e-SPS – Internet Sourcing & Production System  e-PLM – Internet Product Lifecycle Management  RED HORSE – Enterprise Management System (ERP)  DMI – Forecasting / Replenishment  TPM – The Production Manager (Shop Floor Control)  DCCS – Warehouse Management System

Customers: Customers

Trends Specialists in PLM & Global Sourcing Blurring of Retailers and Brands Rapidly changing supply chains and methods Compressing Product Life Cycle (Speed to Market) Globalization of Everything (A Flatter World) Margin Challenges Need for Brand Differentiation

Challenges Specialists in PLM & Global Sourcing Effectively dealing with Speed, Distance, Complexity and SKU Proliferation Deploying and Integrating IT systems to meet new requirements Eliminating old silos, streamlining business processes, realignment to today’s world Collaborating effectively in a 24/7 world

Observations Specialists in PLM & Global Sourcing Have most companies achieved Speed to Market?

Typical Business Process Specialists in PLM & Global Sourcing

Typical Business Process Specialists in PLM & Global Sourcing Raw Material Development Style Development Pre-production Production Shipping

Analysis of Typical Operations Specialists in PLM & Global Sourcing 52% of the activities were non-value added, such as non-integrated fax, phone calls, spreadsheets, databases and s Significant opportunity for improved efficiency Many Activities Require Supply Chain Partner Participation

Observations Specialists in PLM & Global Sourcing How well integrated are most companies ERP, Demand Management, PLM & Sourcing Systems?

Observations Specialists at PLM and Global Sourcing

Apparel and Sewn Products Industry Specialists Reporting and Analysis Workflow and Event Management Collaboration Exception Management Financial Accounting Product Lifecycle Management Customer Order Processing Import Management & Sourcing Inventory Control EDI Forecasting & Planning Warehouse & Shipping Solutions – Integrated End to End Systems

Design to Sourcing - Key Business Needs Specialists in PLM & Global Sourcing 1. Visibility 2. Collaboration 3. Timely Information 4. Breaking down organizational and cultural barriers 5. Information gap between departments 6. Managing event milestones 7. Performance metrics 8. Improve responsiveness 9. Factory Compliance Monitoring

Solutions – Visibility Design to Source Specialists in PLM & Global Sourcing Product Development RFQs and Bids Pre- Production P.O. Management Production Tracking Quality Control Shipment Packing Inbound Tracking Merchandising DC Receipt Centralized Data Workflow and Event Management Collaboration Exception Management

Solutions: Metrics achieved Specialists in PLM & Global Sourcing  Cycle time reduction – %  G & A reduction – 5 – 20%  Margin improvement – 5 – 20%  Reduction of Finished Goods air freight – 1 – 3%  Raw Material aggregation and reduction in cost – 3 – 5%

Solutions: Metrics Achieved Specialists in PLM & Global Sourcing  Cycle time reduction – %  P.O. lead time reduction – 10 – 15%  Efficiency improvement – 20 – 50%  Quality improvement – 5 – 20%  99.5% Carton Accuracy at Receipt  Shipment lead time reduction of 2 days.  Improved WIP and Inbound (NDC) Accuracy %