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THE Fi. T in Action Regional Workshop for South America “ A Benchmarking tool THE Fi. T in Action Regional Workshop for South America “ A Benchmarking tool for clothing manufacturers to increase competitiveness URUGUAY, 25 -26 MAY 2005 Ms. Rupa Ganguli - ITC Consultant on Textiles & Clothing email: [email protected] org

Private sector competitiveness • • • Price and quality Lead times – time to 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 Bangkok, Thailand 31 March 2005 THE Fi. T in Action - Regional Workshop for South East Asia 3.

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

To the 6 common needs, ITC’s 6 answers To the 6 common needs, ITC’s 6 answers

ITC’s TA to the Clothing Sector • Need 1: Sector Strategy Development Clothing Sector 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 « Fi. T » • 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 Trade Development Approach

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

2 nd Response: The « Fi. T » 2 nd Response: The « Fi. T »

BENCHMARKING WHAT IS BENCHMARKING ? A systematic and continuous measurement process; a process of 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. THE Fi. T

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

THE Fi. T - WHAT it does WHO it is for A. Checklist for THE Fi. T - 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 THE Fi. T

HOW TO USE ‘THE Fi. T’ THE Fi. T HOW TO USE ‘THE Fi. T’ THE Fi. T

STEP 1 - FILL CHECKLIST THE Fi. T STEP 1 - FILL CHECKLIST THE Fi. T

STEP 1 - FILL CHECKLIST THE Fi. T STEP 1 - FILL CHECKLIST THE Fi. T

STEP 2 – INPUT DATA THE Fi. T STEP 2 – INPUT DATA THE Fi. T

STEP 3 - REPORTS THE Fi. T STEP 3 - REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

REPORTS THE Fi. T REPORTS THE Fi. T

CRITERIA – SUPPLIED BY INTERNATIONAL BUYERS § Criteria supplied by significant international buyers across 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 THE Fi. T

WHAT THE BUYERS SAY LEAD TIMES DELAY IN SHIPMENT ULTIES DIFFIC POOR QUALITY THE WHAT THE BUYERS SAY LEAD TIMES DELAY IN SHIPMENT ULTIES DIFFIC POOR QUALITY THE Fi. T

WHAT THE BUYERS SAY R RIA FO CRITE R PPLIE U NEW S LOW WHAT THE BUYERS SAY R RIA FO CRITE R PPLIE U NEW S LOW PRICE GOOD QUALITY SERVICES QUICK AND PRECISE RESPONSE THE Fi. T

WHAT THE BUYERS SAY Sample taken from criteria given by various buyers (denoted as 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 Japan 00 A B C D E 1) Quality and consistency of production 10 10 10 2) Reliability of delivery times – JIT 10 10 10 3) Supplier’s presence online i. e. ability to receive designs though email and the existance of a CAD/CAM facility at the factory (notably more important for US buyers ) 8 8 7 10 3 4) Code of conduct relating to child labour, working conditions, health care for workers 10 10 5 THE Fi. T

HOW TO BENEFIT FROM USING ‘THE Fi. T’ A tool to help increase International HOW TO BENEFIT FROM USING ‘THE Fi. T’ A tool to help increase International Marketing and Competitiveness THE Fi. T

THE Fi. T generates reports that suggest priority areas such as: § Keep market THE Fi. T 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 THE products and product groups Fi. T § Prepare and maintain a customer database

THE Fi. T § § The reports also suggest concrete measures such as: Categorize THE Fi. T § § 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 THE Fi. T

IMPLEMENTING and REACHING THE COMPANIES § § - Trade support institutions partner with ITC 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 THE Fi. T for improvement

REGIONAL AND COUNTRY WIDE IMPLEMENTATION THE Fi. T REGIONAL AND COUNTRY WIDE IMPLEMENTATION THE Fi. T

INTRODUCTION OF THE Fi. T § Phase I - ITC samples THE Fi. T INTRODUCTION OF THE Fi. T § Phase I - ITC samples THE Fi. T 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 THE Fi. T partnership with the national partner

REGIONAL INTRODUCTION OF THE Fi. T § South Asia (primarily SAARC) – Dec 2004 REGIONAL INTRODUCTION OF THE Fi. T § 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 THE Fi. T

CONFIDENTIALITY STRUCTURE COUNTRY I NATIONAL PARTNER ITC COUNTRY III NATIONAL PARTNER COUNTRY II NATIONAL CONFIDENTIALITY STRUCTURE COUNTRY I NATIONAL PARTNER ITC COUNTRY III NATIONAL PARTNER COUNTRY II NATIONAL PARTNER THE Fi. T

CONFIDENTIALITY NATIONAL STRUCTURE ITC NATIONAL PARTNER Company A Company B Company C THE Fi. CONFIDENTIALITY NATIONAL STRUCTURE ITC NATIONAL PARTNER Company A Company B Company C THE Fi. T

CONFIDENTIALITY STRUCTURAL DUTIES 1. 2. 3. 4. 3. 5. 6. International database maintained by CONFIDENTIALITY STRUCTURAL DUTIES 1. 2. 3. 4. 3. 5. 6. 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 Receive integrated data from ITC Disseminate reports to member companies Maintain national database Company A 1. 2. Fill in data in checklist Send to National counterpart Company B 1. 2. Fill in data in checklist Send to National counterpart ITC NATIONAL PARTNER Company C 1. 2. Fill in data in checklist Send to National counterpart THE Fi. T

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

THANK YOU ! For more information http: //www. intracen. org THANK YOU ! For more information http: //www. intracen. org