Stitching Together a Demand-driven Supply Chain

Intentia launches second phase of campaign to help apparel manufacturers, retailers keep close tabs on consumer demand

Intentia launches second phase of campaign to help apparel manufacturers, retailers keep close tabs on consumer demand

Schaumburg, IL — July 1, 2004 — Apparel industry solution provider Intentia has launched the second phase of its global campaign to focus on how to create a demand-led supply chain.

The first phase of Intentia's worldwide campaign, dubbed "Decisions Are Easier When You Have a Good Overview," centered around successful sourcing, fueled by a global sourcing market that is opening up with the relaxation of import quotas on textile and apparel products among World Trade Organization nations in 2005.

But while increased global sourcing can help fashion and apparel makers cut costs, global sourcing can also create more complexity unless they can see through their supply chains. For this reason, the next phase of Intentia's campaign will center on ensuring effective inventory management, which has stepped into the spotlight as a growing number of retailers are shifting goods replenishment responsibility to contract manufacturers.

As Intentia sees it, because leading fashion companies must never lose sight of what consumers want, in the current, increasingly cutthroat business environment, keeping close tabs on consumer demand can help to maximize sell-through and margins and minimize inventory risks.

"By starting with the consumer and working backward through the entire supply chain, fashion companies can create an open environment where everyone focuses on one objective: meeting consumer demand," said Vicky Hyde, Intentia's global fashion director. "A demand-led business model ensures that in-season products are in stock at the right place and at the right price."

Intentia said its flagship Movex Fashion collaborative solution synchronizes demand and production across the enterprise, allowing managers to have a real-time and complete overview of processes. Movex Fashion is also designed to allow companies to share data with their business partners with the goal of shortening sourcing and production lead-time.

Companies with successful brands know their customers and act on this knowledge using demand management and analytic tools. Delta Galil, a $600 million global manufacturer of private label apparel, is one such example.

According to Intentia, by using Movex, Delta Galil has been able to help its clients — including Marks & Spencer, DKNY, Hugo Boss, GAP, JC Penny, Wal-Mart and Victoria's Secret — meet consumer demand in a more timely way. "By uniting the entire supply chain and creating visibility between us and our suppliers, partners and customers, we can forecast and plan demand more effectively," says Avi Pinhas, Delta Galil's chief information officer.

Intentia also points to Wuxi Liutan Garment, one of the top 100 garment manufacturers in China, with annual sales of $50 million, as another company that understands the importance of creating a demand-led supply chain. The firm has implemented Movex to streamline key business processes, such as customer relationship management, financial management and supply chain management, in its China operations. "We required a collaborative solution that would seamlessly integrate our entire operation and facilitate our plans for growth," says Qian Borong, chairman of Wuxi Liutan Garment.