Business Guide on Electronic Applications in Textiles & Clothing (T&C) Trade

How will new technologies used by apparel buyers and retailers affect suppliers in developing countries?

Objective: The International Trade Centre (ITC) UNCTAD/WTO plans to publish a comprehensive Guide on technologies used by apparel buyers and retailers in the EU and US to facilitate their sourcing from developing country (DC) clothing manufacturers. The Guide’s objective is to assist DC exporters to adopt computer-based applications to promote long-term relationships with major buyers. This is increasingly important with the phase-out of the quota system, as buying and distribution patterns are likely to change. The Guide will describe how apparel buyers use electronic systems to facilitate trade, shorten lead-times, and reduce inventory costs with improvements throughout the supply chain. We believe that major economic gains are being achieved with the adoption of these new technologies. The Guide will also describe success stories of progressive exporters in developing countries.

Benefit for retailers/apparel buyers: Your business requirements will be explained to DC manufacturers so that they can better comply with your needs. Suppliers in developing countries are eager to gain a thorough understanding on the changing way apparel distributors in major markets are operating, especially by applying new technologies. Our goal, through the suppliers’ adoption of the technologies that you use, is to create a larger group of suppliers to meet your needs.

Benefit for developing country clothing manufacturers: You will get a clear understanding of what buyers want in terms of i) applying modern technologies, and ii) providing additional value along the supply chain e.g. inventories, own sourcing, etc. You will get an overview of new technologies and their use by major buyers and learn, through case studies, what your customers are expecting. In addition, case studies will explore how other DC manufacturers have already successfully applied these new technologies, thus providing what their buyers want. By adopting recommendations outlined in the Guide, your overall competitiveness will be improved.

How to contribute: To collect the necessary information, the ITC is requesting information on how you, as a major garment buyer or successful DC garment exporter, plan your future sourcing and what electronic systems you are already using or plan to use. Ideally, you will agree to be interviewed, and the ITC will then write up the interview for your review and comments. This will be done either directly by ITC or through one of its consultants working with you. You can also send the information directly to ITC. Ideally, case studies will detail your requirements, answering the following questions:

1. What applications are you using? What applications would you like your suppliers to adopt?

2. What business problems are being addressed by these applications (both current and future)?

3. What business processes are being facilitated/improved by utilising the application? What part of the supply chain is being improved (e.g. marketing/sales, sourcing, manufacturing, the overall value chain, etc.)? How does workflow change as compared to “traditional” methods?

4. What are necessary inputs from your side and from outside (people and technology, cooperation with other garment/fabric manufacturers, etc.)?

5. What are the functions, in simple terms, step by step?

6. What are your application requirements from DC suppliers in the future?

7. What are the most important steps a DC supplier can take that would cause your organization to increase your purchases from them?

ITC assures contributors that no sources of information will be disclosed if so wished by the contributor. We will be pleased to send you a copy of the Guide upon its completion.

About ITC: The International Trade Centre (ITC) is the technical cooperation agency of the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD) for operational, enterprise-oriented aspects of trade development. ITC supports developing and transition economies, and particularly their business sector, in their efforts to realize their full potential for developing exports and improving import operations.

Contact: Matthias Knappe, Senior Market Development Officer, Email, Palais des Nations, 1211 Geneva, Switzerland ,Tel.: +41-22-7300321, Fax: +41-22-7300 446; URL: http://www.intracen.org