THE FiT 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: ganguli@intracen.org
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 31March 2005
THE FiT in Action - Regional Workshop for South East Asia
3.
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
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
2nd Need: Know your competitors
•Quotas stifle competition
•Now competitors are everywhere
2nd Response: The « FiT »
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 FiT
THE FiT benchmarks performance
It is divided into 4 broad areas
 Management &
Organization
 Sales & Marketing
 Financial Planning
 Productions,
Sourcing &
Operations
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
THE FiT
HOW TO USE ‘THE FiT’
THE FiT
STEP 1- FILL CHECKLIST
THE FiT
STEP 1- FILL CHECKLIST
THE FiT
STEP 2 – INPUT DATA
THE FiT
STEP 3 - REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
REPORTS
THE FiT
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 FiT
WHAT THE BUYERS SAY
LEAD TIMES
DELAY
IN
SHIPMENT
POOR
QUALITY
THE FiT
WHAT THE BUYERS SAY
LOW PRICE
GOOD QUALITY
SERVICES
QUICK AND PRECISE
RESPONSE
THE FiT
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
1)
Quality and consistency of production
10
10
10
10
10
2)
Reliability of delivery times – JIT
10
10
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
10
10
5
THE FiT
HOW TO BENEFIT FROM USING
‘THE FiT’
A tool to help increase International Marketing
and Competitiveness
THE FiT
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
THE FiT
products and product groups
 Prepare and maintain a customer
database
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
THE FiT
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 FiT
for improvement
REGIONAL AND COUNTRY WID
IMPLEMENTATION
THE FiT
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
THE FiT
 Phase II – Country wide introduction in
partnership with the national partner
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
THE FiT
CONFIDENTIALITY
STRUCTURE
COUNTRY I
NATIONAL
PARTNER
ITC
COUNTRY III
NATIONAL
PARTNER
COUNTRY II
NATIONAL
PARTNER
THE FiT
CONFIDENTIALITY
NATIONAL STRUCTURE
ITC
NATIONAL
PARTNER
Company A
Company B
Company C
THE FiT
CONFIDENTIALITY
STRUCTURAL DUTIES
1.
2.
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 from
data ITC
sent from ITC
Receive
integrated
data
Disseminate reports to member companies
Maintain national database
Company B
Company A
1.
2.
Fill in data in
checklist
Send to National
counterpart
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 FiT
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
THE FiT
THANK YOU !
For more information
http://www.intracen.org