Supply Chain Enabling - Subcommittee

AAFA/ISC Fall 2008 Committee Meeting

Members:Brion Carroll/PTC<need updated list>

Industry Update Topics

VICS/CMSS Initiative Topic 2 Topic 3

VICS/CMSS Initiative“Background Overview”

CMSS – Collaborative Material Specification Standard Material Specification Standard - based on

GS1/HK AppTex Standard Committee has been in operation since 2005 Members include PTC, Fountain Set, eBizPrise, Nike, KSA, Dillards,

Liz Claiborne Proof of Concept in development (Starts Dec/08 for 6-8 months)

Nike (Retailer), Fountain Set (Fabric Supplier) PTC (PLM-Retailer), eBizPrise (Supply Mgmt – Supplier) Validate fitness of AppTex standard Validate the Use Case applicability Validate Multi-system integration Additional Retailers/Suppliers to be added in months 4-6

VICS/CMSS Initiative“AppTex Standard”

Standardize the specification for 7 Raw Materials:

1. Button

2. Interlining

3. Knitted fabrics

4. Labels & tags

5. Thread

6. Woven fabrics

7. Yarn

VICS/CMSS Initiative“AppTex Standard”

Retailer’s Product Development System

Fabric Supplier System

The systems are able to exchange the detailedMaterial Specification using the CMSS (AppTex)format, ensuring clarity of the material’s definitionwithout requiring either system to “know” theother system’s detailed data model definition.

The systems are able to exchange the detailedMaterial Specification using the CMSS (AppTex)format, ensuring clarity of the material’s definitionwithout requiring either system to “know” theother system’s detailed data model definition.

VICS/CMSS Initiative“Collaborative Environment”

50% of the Material identification process not value added > back and forth textual/phone communications

50-60% of daily work hours on phone calls, emails….

Average cycle time – 37 days** (max-60 days) Potential missing information – 18% Potential Errors – 20% Restrict capabilities in global sourcing

VICS/CMSS Initiative“Current Problems”

Reduce phone/email communications to 10% Reduce cycle time to approx 7 days Increase material (product) offering-e.g. from 20

materials to 30-40 materials. Eliminate missing info and errors Re-align staff to other value added jobs – e.g.

innovative material development Increase operation efficiency Facilitate Global Material sourcing Enhance material source traceability

VICS/CMSS Initiative“Perceived Operational Benefits”

Reduce operating cost by approx 50% Reduce Material cost by approx 30% Increase sales by approx- 30% Reduce Markdown by approx 60-80%

VICS/CMSS Initiative“Perceived Cost Benefits”