ma215 change your supply chain to reap its huge dormant value v12 2015-06-30
TRANSCRIPT
Right from the start TM
Change Your Supply Chain to Reap Its Huge Dormant Value!
WHY CHANGE? PUSH HAS COLLAPSED AND PULL REIGNS
The 90’sWholesale
Habits Volume Driven
Gen XBrand
Awareness
E-ComThe Long
Tail
F-ComI want it
NOW!!
Next: Change or Die
Wholesale down
Class A retailers sell 30% off-price
Average retailers sell 50-55% off-price
Value Problem
Survivors will have fast, flexible and reactive supply chains
Wholesale > Retail
End of season sales clearances
Small retail networks
Volume Era
Big-data retail
E-Com up to 10% of market
Number of POs up,units per PO down
SKU Explosion
“Facebook” commerce takes off
New product every 8 weeks
Maturity of big-data combined w/ digital brick & mortar concept
New Competitors
MAKE YOUR SUPPLY CHAIN THE KEY SOURCE OF VALUE
Your Supply Chain has significant Value which can be uncovered with high ROI (100%-500%) and low risk investments (Pull Attitude) where marketing and PR requires huge investments with dubious ROI (Push Attitude)
ChallengeHow can you turn your supply chain into a competitive advantage by delivering with minimum inefficiencies (waste) the right product at the right time to your consumers thus becoming more eco-friendly?
SolutionImprove labor and capital efficiency while decreasing lead-times and material costs
Key Benefits• Increase the percentage of full price sales (current average below 50%)• Increase sales, brand attractiveness and consumer loyalty by delivering new
collections with accelerated frequency (Class A companies: 6-12 / year)• Reduce product costs by 10% or more by lowering waste and increasing efficiencies• Improve quality and consumer satisfaction thus losing < 0.1% of sales due to the
“cost-of-poor-quality”
Sustainable leading-edge supply chain optimization
QUALITY ASSURANCE /
QUALITY CONTROL
QUALITY MANAGEMENT
SYSTEMS
END-TO-END PROCESS
ENGINEERING
USE IMPACTIVA TO REAP THE HUGEDORMANT VALUE WITHIN YOUR SUPPLY CHAIN
Our services allow you to improve your ability to design and deliver the right product at the right time to your consumers with minimum waste
HOW WE HELP OUR CLIENTS UNCOVER VALUE
Asian Footwear Manufacturer• Improvement in pairs / operator / day: Lasting Line 109%, Upper Line 42%• Reduction in pairs rejected as un-shippable: 83%• Decrease in unit cost: $2.72 (10.6%)
US Western Boot Brand• 20 day reduction in production lead-time by optimizing leather supply chain• Product claims due to leather quality dropped by 99%
Asian Trading Company (35 million pairs)• Decrease in factory quality chargebacks by 90% generating millions in savings
OUR CLIENTS
ETHICS
• Ethics is the foundation of our Company• 6 processes exist to ensure our commitment to the highest level of
ethical behavior• We are proud to be corruption free, setting the standard for ethics
in the inspection industry
INTEGRITY
• We speak with honesty, courage and care• Philosophy of absolute transparency brings faster learning and
continuous improvement• Our motto: “What we know our clients will always know”
OUR VALUES
• Established in 2003 by:
- Jose R. Suarez: industry professional since 1991 with a Cornell University Operations Research and Industrial Engineering B.S. and a Masters in Engineering
- Stanley Motta: Panama’s most influential business leader and Chairman of Motta International and the Board of Copa Airlines (NYSE: CPA)
• +300 team members with offices in Dongguan (China), Chennai (India), Taipei (Taiwan)
• Our professionals are uncovering Supply Chain Value in more than 400 factories and material vendors in Africa, Asia, Europe and South America
IMPACTIVA FAST FACTS
Jose R. Suarez Stanley Motta
• Veteran of the purebred cattle breeding business
• Helped to develop the certified Angus Beef Program
• Founder and principal of Premier Beef, Premier Angus and Premier Corp.
The Team at Your Service
OUR BOARD OF ADVISORS
Robert Bohlen Marc Castagnet John Naughton Roberto Saco Regis Vogel
• Founded SgT Group, a quality control and supply chain outsourcing provider to the textile industry
• Pioneered the use of pick and pack logistic-distribution warehouses in Asia, Africa and Eastern Europe
• Sr. VP Quality, Health, Safety and Environmental at Keurig Green Mountain
• Former global leadership positions at Dell and Nokia in operations, supply chain, engineering and quality management
• Principal at Aporia Advisors, a business process consulting firm
• Past President of the American Society for Quality
• Served as VP of Quality and VP of Strategic Planning at the American Express Company
• Sr. Director of Development Services and Strategic Solutions at University of Michigan
• Served as CTO, Chief Architect and Head of Software Development at major global organizations
2003• Company founded based on an industrial
engineering philosophy of quality assurance (versus quality control) and producing Right from the start TM
• Leather QA service launched
2004• Founder Jose R. Suarez moves to Dongguan, China
to ramp up operations in Asia• Leather QA service commitment set at +98.0% of
leather problem-free
2005• Offices are established in Dongguan (China) and
Chennai (India)• Footwear QA service is launched with a service
commitment of +99.6% of pairs problem-free
2006• Leather Goods QA service is launched• Formal learning department is created
The Team at Your Service
COMPANY HISTORY
2008• A subsidiary in Europe is established
2009• Apparel QA service is launched
2010• Professional Advisory Board is established• Corporate finance office is opened in Taiwan
2011• Formal R&D Department is established
2013• Supply Chain Engineering and Quality Management
services launched
2014• Footwear QA Service achieves < 0.1% of client’s
wholesale revenue lost due to poor quality
PURPOSE
To empower industry with innovative, sustainable, hands-on solutions
that add value to the Clients we serve
MISSION
To revolutionize the lifestyle* industry by delivering sustainable
leading-edge supply chain practices
* Footwear, leather goods, leather, apparel, fabric, outdoor gear, etc.
OUR PURPOSE AND MISSION
www.impactiva.com
APPENDIX - SUPPLY CHAIN ENGINEERING
Challenge
Design multiple supply chains to meet the dual consumer demands of fast fashion and lower prices while eliminating waste and thus becoming more eco-friendly
Solution
Re-engineer the speed, flexibility and resources required to develop, commercialize and produce your products by doing more with less
Key Benefits• Increase sales, brand attractiveness and consumer loyalty by
delivering new collections with accelerated frequency versus industry norm of 2 to 4 turns per year
• Reduce percentage of product that gets marked down from industry average of 50% to 20%
• Reduce product costs by 10%, 15%....
• Improve consumer satisfaction by delivering 99.9% of sales with perfect quality
Risks Addressed
• Low productivity• Long lead-times• Excess labor• Excess work-in-
process inventory• Excess floor space• Delivery delays
APPENDIX - QUALITY MANAGEMENT SYSTEMS
Challenge
Increase your supply chain’s speed and decrease its costs by ensuring that your Team, factories and material vendors assume total ownership of quality from development through shipment
Solution
Build robust quality management systems and train your entire supply chain to manage them with defined targets for continuous improvement
Key Benefits• Reduce product costs by nominating and controlling the
performance of 100% of your material vendors
• Increase the speed at which new collections can be launched as wasteful time buffers are eliminated
• Gain transparency in your entire supply chain eliminating expensive final product lab testing by eradicating restricted substances
Risks Addressed
• Delays in product launches
• Shipment delays• Damage to brand
equity• Lost sales• Chargebacks• Dissatisfied
customers and consumers
APPENDIX - QUALITY ASSURANCE / QUALITY CONTROL
Challenge
Consistently deliver the right product with the right quality thus increasing consumer brand loyalty and sales
Solution
Permanently place Impactiva Technicians in your factories and material vendors anywhere in the world to ensure that your product and commercialization samples are produced Right from the start TM
Key Benefits• Improve consumer satisfaction by delivering 99.9% of sales
with perfect quality
• Eliminate the permanent draining loss of disappointed consumers and customers
• Drop ship to clients bypassing your distribution centers saving time and costs
• Eliminate corruption from your supply chain
Risks Addressed
• Damage to brand equity
• Lost sales• Chargebacks• Corruption• Factory waste• Leadership time
TO REQUEST A PROPOSAL AND LEARN HOW WE CAN IMPROVE YOUR BOTTOM LINE, CONTACT US AT [email protected]