Presentation by:

Prachi Agrawal
  About PTC’s FlexPLM
 Need for FlexPLM
 Role of PLM in Typical Apparel/footwear
product development process
 How does Flex PLM works?
 PLM industry analysis
 FlexPLM – Cost benefit analysis
 Advantages of FlexPLM on apparel/Footwear
retail value chain

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 Most comprehensive apparel retail, footwear and
apparel product development solution in
following ways:

 Opitmize supply chain by focusing on product

development (key design & sourcing) which consumes
85% time in supply chain management .

 Serve as common platform for designers, merchandisers,

planners, suppliers and buyers for transparent
communication flow.

 Shorten product lifecycle time by 50%.

 User friendly , designed specifically to suit retail,

footwear & apparel and consumer products markets.
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 Every one wants to be fast fashion label.

 From 2-4 seasons per year, today an average fashion label has
transformed into 4-6 seasons per year

 At this pace, the day is not far when fashion cycle will get
squeezed to 8-12 seasons per year.

 Need for integrated responsive supply chain management to

over come stock piles and looses from stock-outs.

 In order to achieve above point, software should have

following features:
 Operational differences per track for stronger capabilities.
 Very strong dynmic communication platform
 Speedy tracking of product for shortening the lead time.
 Multiple sourcing for stronger execution of line and meeting
delivery deadlines
 Sustainable dedicated resources.
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 Role Of PLM in typical apparel/footwear product development
process
Individual product
Defines testing Tracking - faster
standards, Real
-time quality audit
on different levels Information
Hub

Generate
Expedite
RFQ, order
season
confirmation
planning and
s (export to
control once
ERPs etc),
financial &
Dynamic
assortment
costings
goals defined

supplier profiles,
Optimise
capabilities,
merchandise
capacity, social,
mix & product
technical, and
adoption
environmental
compliance
Product
Precision in briefs/automate
designs lab dips/
/colors/material/ material
complete tech packs consumption -
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Collaboration 5
cost & quality
 PLM applications work through a web-based interface that allows all parties
involved in a garment's design and development to work on the same platform and
communicate on a real-time basis. Everyone can see the latest version of a product,
know when it's been modified or if it's been dropped from the line, avoiding
manufacturing errors and improving product quality.

 It sports standards-based enterprise integration tools. The software collects a

product's 'spec' or DNA in a file that can be accessed by all product development
agents from designer to manufacturer across world. By using the real-time platform,
a designer can work on the details of a garment's spec while another department
explores different manufacturing options for the product, hedging time.

 Direct integration with design tools such as Adobe® Illustrator™ to increase design
efficiency and allow designers to work with familiar applications. The technology
saves time and money compared to sequential processes which involve heavy
paperwork

 PLM software also helps streamline sourcing. By using it, a manufacturer can
quickly and easily see a product's spec to draft with a cost estimate and send a
product sample to the retailer.

 The retailer can then review the sample and enter any modifications into the PLM
system for the manufacturer to sew a final sample.

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 In this environment, delivering fashion-right collections on time and on
budget is often becoming a logistical nightmare, prompting companies to
seek technological solutions to bolster enterprise efficiencies and cut costs.

 Consequently, the apparel and footwear industry is expected to invest

billions in product development and sales-forecasting software in the
coming years, according to industry observers.

 (PLM) software, which helps manufacturers shorten product lifecycle

times by at least half to boost efficiencies in the supply chain. Then there
are merchandise management systems (MMS) and markdown
optimization solutions (MOS) to help retailers manage over-bloated
inventories and minimize losses from stock-outs.

 The PLM market, worth some US$50m, could grow up to 40% annually by
2014, according to software vendors who say large- and medium-sized
apparel firms are rushing to implement the technology.

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  PTC, which claims to be the largest PLM supplier with a 55% global market
share, is also bullish about the future. Mitford says the company's sales could
leap 40-60% annually by 2014 to mirror a similar growth rate since 2005.

 PTC has 30 apparel and footwear customers spread mostly in Europe and
North America. The firm recently signed up French sports equipment firm
Decathlon and Germany's largest department store operator Karstadquelle. It
is making a big push into Europe where PLM "adoption is a little behind" the
US.

 According to Mitford, the North American PLM market (for apparel brands
with over US$2bn in sales) is maturing but she expects many sub-US$2bn
firms to purchase PLM applications in coming months. However, in common
with rivals, she says Asia is quickly becoming a hot expansion market for
PLM software vendors. "We are seeing a significant increase in the number of
Asian companies interested in PLM, specifically in China, which will be one of the
largest consumers of PLM in five years," .

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TARGET Benefits - quantifiable
Apparel /
Footwear & 1. Shortened lead times causing
retail a reduction in working capital
companies and increased service levels.
2. Increase Adoption rate – upto
50% (directions for designers)
3. Raw material aggregation
across styles and even
divisions, resulting in 3% to
5% reduction in materials
costs
4. Labor cost avoidance –
elimination of paper/clerical
work. 30% of design and
development labor is wasted
on clerical and other
redundant tasks related to
lack of information.
5. Reduction of finished goods
air freight to 10% to 20% of
shipments, resulting in 1% to
3% reduction in COGS (on
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Drawbacks
1. Roll out time - PTC's PLM
express suite (for
organisations with under
US$1bn in sales) takes three
months to set up while the
company's more
comprehensive PLM range
(for firms with sales over
US$10bn) can take nine
months to implement.
2. Limited connectivity with
other software.
3. Change management
4. Need for robust and
integrated solutions
5. Designers sometimes feel
sidetracked due to
constraints of working in
direction predicted by the
module.
9
TARGET Benefits - Non quantifiable Drawbacks
SEGMENT
Apparel / 6. Closer to market product NIL
Footwear & development for more
retail “fashion-right” assortment.
companies 7. Maxmising full price sell thru
via full collection hitting the
floor on time.
8. Disciplined handoffs –
elimination of repetitive
documenting work .
9. Reduce SKU proliferation and
over-development
10. Improves and expedite the
communication flow among
designers, merchandisers,
factories, suppliers.

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 Increase in Confidence and
satisfaction among employees due to Seamless functions on the
process automations and riddance pretext of speed tracking
from tedious documentations. Also Reduced Costs
transparent & instant communications – increases
boosts effectiveness & efficiencies . margins

HUMAN RESOURCES
M
PROCUREMENT
SECONDARY A
ACTIVITIES
R
CORPORATE FUNCTION
G
•Concept development
•Higher adoption rates INBOUND OUTBOUND MARKETING SERVICES
OPER-
•Quick material sourcing LOGISTICS
ATIONS
LOGISTICS & SALES
I
•Faster sample developments &
approvals (3D modeling) N
s

Not relevant

Faster Merchandise / line planning,

Quick feedback on
Costing, Material development &
PRIMARY ACTIVITIES collection
testing, product specification
performance
management, vendor management,
triggers instant
order management Quality management,
actions –
supply chain collaboration,
reasonable
timely deliveries & arrival
markdowns
to stores
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Source: Michael Porter, 1980
There are many vendors providing apparel and footwear-specific PLM solutions.

 Vendors that have always been apparel/footwear specific

• Freeborders
• GEAC Qwest Runtime
• Gerber WebPDM (FLM)
• Lectra
• NGC
 Vendors that have migrated from other industries to
apparel/footwear
• MatrixOne (now owned by Dassault)
• PTC Flex PLM
• UGS
 Other smaller startups to be aware of:
• MSC, Vertex, Yunique PLMon, zweave

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