1. Ms. Rupa Ganguli - ITC Consultant on Textiles & Clothing
THE FiT in Action
Regional Workshop for South America
“ A Benchmarking tool for clothing manufacturers to increase competitiveness
URUGUAY, MAY 2005
Ms. Rupa Ganguli - ITC Consultant on Textiles & Clothing

3. Private sector competitiveness
Price and quality
Lead times – time to buyer’s market
Ability to identify strengths and work on them
Promotion and marketing
Skills and global knowledge of markets
Working on high value goods – changing market conditions - fast cycle times
IPR and Design savy suppliers – full package

4. INTERNATIONAL COMPETITION ‘A supplier today…’
Where am I…?
Where do I want to reach….?
How do I reach my destination….?

5. To the 6 common needs, ITC’s 6 answers
Sector level...
The 'Shape'
Enterprise level...
ITC - web...
'THE FiT'
'E-applications'
'Source It'
Tailor made...
'Public-private-partnership'

6. ITC’s TA to the Clothing Sector
Need 1: Sector Strategy Development
Clothing Sector Strategy Development «the Shape»
Need 2: Know your competitors
Benchmarking tool The « FiT »
Need 3: Sourcing Information and SCM skills
Skills development & regional supply information
Need 4: Understanding changing markets
New website; workshops; tailor-made projects
Need 5: E-Applications in T&C
A Business Guide
Need 6: Intra-regional trade along the value chain
South South Trade Development Approach

7. 2nd Need: Know your competitors
Quotas stifle competition
Now competitors are everywhere

8. 2nd Response: The « FiT »

9. BENCHMARKING WHAT IS BENCHMARKING ?
A systematic and continuous measurement process; a process of continuously comparing and measuring an organization’s business processes against business leaders anywhere in the world to gain information which will help the organization take action to improve its performance.

10. THE FiT benchmarks performance
It is divided into 4 broad areas
Management & Organization
Sales & Marketing
Financial Planning
Productions, Sourcing & Operations

11. THE FiT - WHAT it does WHO it is for
A. Checklist for garment industry Suppliers to:
Evaluate themselves and see how they measure up against global standards
Understand the implications of the post 2004 era after quotas
Identify and maximise their competitive advantage in the garment industry.
Use this as an international marketing tool

12. HOW TO USE ‘THE FiT’

13. STEP 1- FILL CHECKLIST

14. STEP 1- FILL CHECKLIST

15. STEP 2 – INPUT DATA

16. STEP 3 - REPORTS

17. REPORTS

18. REPORTS

19. REPORTS

20. REPORTS

21. REPORTS

22. REPORTS

23. REPORTS

25. REPORTS

26. CRITERIA – SUPPLIED BY INTERNATIONAL BUYERS
Criteria supplied by significant international buyers across the EU, USA and Japan
Questions formulated based on international buyer needs
Usage of inhouse expertise in creating the final product

27. WHAT THE BUYERS SAY DIFFICULTIES LEAD TIMES POOR QUALITY DELAY IN
SHIPMENT

28. WHAT THE BUYERS SAY CRITERIA FOR NEW SUPPLIER LOW PRICE GOOD QUALITY
SERVICES
QUICK AND PRECISE
RESPONSE

29. WHAT THE BUYERS SAY
Sample taken from criteria given by various buyers -
(denoted as A, B, C, D, E ) and their importance on a scale of 1 to 10
Some important criteria given by significant international buyers from the US, EU and Japan00 A B C D E
Quality and consistency of production 10
Reliability of delivery times – JIT
Supplier’s presence online i.e. ability to receive designs though and the existance of a CAD/CAM facility at the factory (notably more important for US buyers ) 8 7 3
Code of conduct relating to child labour, working conditions, health care for workers 5

30. HOW TO BENEFIT FROM USING ‘THE FiT’
A tool to help increase International Marketing and Competitiveness

31. THE FiT THE FiT generates reports that suggest priority areas such as:
Keep market changes in report form and discuss these with your staff and customers
Take into consideration sales, volume targets, profit goals, and market diversification plans in drawing up business plans for individual products and product groups
Prepare and maintain a customer database

32. THE FiT The reports also suggest concrete measures such as:
Categorize and evaluate your suppliers
Structure yourself to deliver under JUST IN TIME arrangements
Exchange electronic data with customers
Improve the percentage of deliveries on time

33. IMPLEMENTING and REACHING THE COMPANIES
Trade support institutions partner with ITC
These institutions then:
house the tool in the country
conduct benchmarking surveys
makes available benchmarking reports to companies
provides/makes available consultancy services for improvement

34. REGIONAL AND COUNTRY WIDE IMPLEMENTATION

35. INTRODUCTION OF THE FiT
Phase I - ITC samples THE FiT in your country in partnership with a national partner association in the country
At least 50 companies across your country participates in this phase
Data baselined at ITC and sent back to your country
Phase II – Country wide introduction in partnership with the national partner

36. REGIONAL INTRODUCTION OF THE FiT
South Asia (primarily SAARC) – Dec 2004 in Mumbai, India
South East Asia, (ASEAN with AFTEX) – March 2005 in Bangkok, Thailand
South America (ALADI) – May 2005 in Montevideo, Uruguay

37. CONFIDENTIALITY STRUCTURE
COUNTRY I
ITC
COUNTRY III
NATIONAL
PARTNER
NATIONAL
PARTNER
COUNTRY II
NATIONAL
PARTNER

38. CONFIDENTIALITY NATIONAL STRUCTURE
ITC
NATIONAL
PARTNER
Company A
Company B
Company C

39. CONFIDENTIALITY STRUCTURAL DUTIES
Company A
Fill in data in checklist
Send to National counterpart
International database maintained by collecting data from associations across the world
Maintaining 10 digit company ids and passwords for all countries and national partner associations
Collection of data from member companies
Send collected data to ITC
Receive data integrated (baselined) from ITC
Create reports based on data sent from ITC
Disseminate reports to member companies
Maintain national database
Company B
Company C
ITC
NATIONAL
PARTNER
Receive integrated data from ITC

40. HOW YOU CAN PARTICIPATE
Participate in the programme offered by our national partner in your country
Follow THE FiT process step by step
Actively and accurately update your company information
Send it regularly to our national partner

41. THANK YOU !
For more information