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Ms. Rupa Ganguli - ITC Consultant on Textiles & Clothing

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Presentation on theme: "Ms. Rupa Ganguli - ITC Consultant on Textiles & Clothing"— Presentation transcript:

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

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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

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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


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