Purchasing entails a great deal more than finding the right product from the right supplier.
It’s a game of balancing price, delivery, quality and more. In an information age, when
time and knowledge are among the most valuable commodities to profitable operation, exploring new
strategies and tactics for making efficient purchases can pay significant dividends.That, in
essence, is the whole reason for the annual
Textile Industries Buyers Guide issue. It is the goal of the editors of
TI to provide a comprehensive reference of resources to make purchasing easier.But
purchasing entails a great deal more than finding the right product from the right supplier. Price,
quality, delivery, availability, lead times and more have a significant impact on the ultimate
total cost of a product. As more than one textile manufacturer has learned in the past few years,
cost and price, while related, are not synonymous. Despite the seeming paradox, the issues facing
purchasers today are at once both more complex and more simple than ever before. In terms of
complexity, there are more ways to evaluate and implement purchases than at any time in history. In
days gone by, a purchasing agent, department head or other qualified specifier would call a trusted
salesperson at a well-known vendor or three, get prices and availability, select the lowest-priced
of comparable products, and the process would be finished. Today, however, just finding the right
medium through which to make the purchase can be a major undertaking. Purchasing agents are still
bombarded by telephone and in-person sales calls, but the emergence of the Internet and e-commerce
as major elements of the supply channel has added a new and sometimes confusing dimension to the
process. The time-honored product catalogs that used to occupy drawer after drawer of filing
cabinet space are almost a thing of the past. In their place is a collection of compact discs that
can be kept on a desktop and easily accessed by computers. Direct mail, automated telephone sales
systems and other avenues provide the purchaser with yet even more choices. High Technology
Offers Speed And ConvenienceIt is the very complexity of the process, however, that makes it simple
at least, once the buyer is initiated into the world of high technology and can learn to function
with only the barest minimum of human interaction. Today, one can order everything from paper clips
to multi-million dollar machinery with a few clicks of the mouse. Additionally, in many cases, all
the financial transactions can be handled electronically, reducing costs in both personnel and
handling. 

In the past several years, a number of websites dedicated to textile purchasing have sprung
from the ether with a fair number of them folding shortly thereafter. The Thomas Register, perhaps
the ultimate industrial buyers guide, can now be had in its entirety on compact disc, eliminating
the need for a dedicated bookshelf somewhere in the purchasing department. Product specs can be
e-mailed almost instantly, eliminating the sometimes-frustrating wait for information on
time-critical purchases.Internet sites such as Fiberbuys.com, eSASA.com and others that offer
e-commerce solutions have made a lot of headlines in recent months for the ease, convenience and
savings these companies offer their members. According to a recent survey of purchasing agents by
Purchasing Magazine, 84 percent of buyers say they use Internet technology as part of their
computer sourcing process. Those not currently using the medium report plans to do so within the
next three years.But like many areas in which leading-edge technology is applied, some potential
beneficiaries are hesitant to use a medium they do not fully understand. According to the
Purchasing survey, some respondents still have concerns, many of which center around the stability
of e-commerce sites. A number of sites have failed after a relatively short period of time.But the
real watchword in purchasing these days as it seems to be in just about every other field of
information technology is value-added. In selecting from among many different products, there is
often less difference in performance and price than in the intangibles that ultimately determine
customer satisfaction. While the process of ordering can be done without nearly as much
face-to-face contact as in previous years, that personal touch becomes critical in assuring
satisfaction after the sale and repeat business for the vendor. What you get after the sale is at
least as important as what you get during it. Purchasing ConsortiumsIn the past decade,
consumer buying consortiums have emerged in everything from groceries to do-it-yourself products
for the home. The thinking behind these buying clubs is that the sales volume generated by multiple
consumers will result in significant price breaks. Today, more and more companies even large ones
that generate significant savings on their own are joining buying groups in the effort to squeeze
even more savings from the supply channel.The quickest way to harvest cost savings is to reduce
prices paid for materials, said J.C. Rice, president of United Sourcing Alliance, a purchasing
group for the textile industry. Even very large companies like General Mills, Abbott Laboratories,
and 3M, which have huge individual purchasing power, join purchasing groups to aggregate volumes
and further reduce costs of raw material, supplies and services.United Sourcing counts among its
members such marquee names as Burlington, Guilford, CollinsandAikman, National Spinning and
Greenwood Mills.All sourcing efforts by the Sourcing Team are customer-driven, Rice said. Members
semi-annually develop a list of high-interest commodities. These interests direct [United
Sourcings] priorities for negotiations for the coming period. 

United Sourcings staff, headquartered in Charlotte, N.C., manages the process. When
priorities are established, the staff collects consumption data by commodity from member companies.
Based on these volumes, negotiations are initiated with quality suppliers for lowest costs without
sacrificing service or quality. Contracts are developed, and implementation with member companies
is overseen. Contracts to date have yielded savings from 7 to 19 percent, according to Rice.
Value-adding services yielding additional cost reductions are often negotiated along with price
improvements, he said.Current commodity agreements include: office products and paper, business
forms, process chemicals for dyeing and finishing, polyfilm, electrical supplies, corrugated, lift
trucks, janitorial supplies and general mill supplies.Benefits, according to Rice, include
increased sales, reduced selling costs, long-term stable customer relationships, and increased
profits. Large volumes typically give suppliers more influence with the manufacturers they
represent. A key to suppliers enthusiasm for contracts with United Sourcing is the assurance that
they will receive expected volumes in exchange for lower prices and enhanced service. United
Sourcing is working to develop a strategy for purchasing non-strategic products and services
through the Internet. The e-commerce strategy will automate clients processes, maximize ability to
analyze information, and develop a unique e-market/e-procurement system.Phase One involves
procedures that will allow individual clients to make leveraged buys from aggregated purchasing
data. Phase Two will provide a web-based purchasing interface for clients, allowing seamless
connection to suppliers and elimination of redundancies in information systems.Cooperatively,
companies can determine the best vendors that will meet requirements for speed and total cost
reductions, Rice said. Investment cost for e-commerce capabilities will be much lower for a group
than individually.Supply management through group purchasing combined with e-commerce will provide
clients with lowest total material costs, he said.  Managing The Supply ChainWhether
purchasing in the traditional fashion, through the Internet or as part of a larger buyers group,
there is no doubt that managing the supply chain is becoming an increasingly critical issue for
many companies. Textile companies in the United States are doing less and less commodity work and
more made-to-order products. As well, the customers of the textile companies are demanding
just-in-time shipments and customer service that taxes the capabilities of even the most modern and
well-organized business. For example, Valdese Weavers, Valdese, N.C., underwent a long and often
painful implementation of an Enterprise Resource Planning program in order to qualify for high-end
business that requires careful and strategic managing of resources
(See Valdese Weaves ERP Success Story, TI, May 2001).In a highly competitive marketplace,
many companies are learning the same lessons as Valdese. As both buying and selling become more
efficient, new markets are opened and profit potential increases.Every day, more companies are
reducing inventories and streamlining planning and distribution channels in order to increase
profit and efficiency. Product and manufacturing cycles are getting shorter and shorter. Following
the trends of recent times, processes that used to take weeks will take only days. What just a few
years ago was an acceptable time from order to delivery is now woefully unacceptable. So,
management of the supply chain, including the best and most efficient method of purchasing, can
have a huge impact on how well a company positions itself in a highly competitive marketplace.

July 2001

Promatech S.p.A., Italy, a member of the Itema Group, has agreed with Sulzer Ltd to acquire Sulzer
Textil, subject to approval by the regulatory authorities.The worldwide Sulzer Textile business
will be transferred to Promatech. All employment contracts will be taken over in their present
form.Given the ongoing consolidation process in the industry, this is an important step towards a
successful future with sustainable earnings for the combined companies. The new group will be able
to offer customers a comprehensive product line and a global service network. Sulzer Textil will
continue its business as an operationally independent group. This includes the right to use the
trade name “Sulzer Textil.” The parties agreed not to disclose the transaction price.The
divestiture of Sulzer Textil is part of the focusing strategy of the Sulzer Corporation.Fred
Kindle, CEO, Sulzer Ltd., commented, “I am pleased that Sulzer Textil is being acquired by a
strategically well positioned group. For Sulzer, this is an important step towards completion of
the divestiture program, which will generate CHF 400 million in net proceeds for Sulzer.”Ulrich
Bolleter, president, Sulzer Textil, said, “In view of our strengths in quality, product innovation
and services together with the environment of Promatech and the Itema group, I have full confidence
in the long-term success of Sulzer Textil.”Miro Radici, Chairman, Itema Group, declared, “With the
acquisition of Sulzer Textil, we will gain market leadership in the worldwide weaving machinery
business. The synergy between the main business areas allows the Itema Group to offer its customers
a comprehensive range of innovative products and services to the highest quality standards.”Sulzer
Textil offers the broadest range of weaving machines from rapier to projectile to mutil-phase
technology. Regarding air-jet weaving machines, Sulzer Textil has been collaborating for many years
with Toyoda Automatic Loom Works, Japan. The strengths of Sulzer Textil include its
well-established global sales and service network, innovative products and the high quality of its
customer support and services. Sulzer Textil, with sales of EUR 440 million (CHF 684 million) in
2000, employs around 1850 people in total.Promatech (sales in 2000: EUR million; 750 employees) is
part of the Itema Group, which is active in four market areas: weaving machines, winding machines,
accessories and high-technology electronics. The Itema Group controls the following companies:
Promatech (with the two weaving machine brands Somet and Vamatex), Savio, Fimtextile, Nuova OMV,
Cincla, Actex, Eutron and Saar.

FAST Forward
Verona, Italy, set the stage for hosiery-related seminars, meetings and workshops, as well as
integrated exhibition areas at FAST 2001 

FAST 2001, held earlier this spring in Verona, Italy, reinforced two popular views emerging
in the worlds textile industry. First, the industrys truly specialized exhibitions are destined to
enjoy increasing success in coming years. Second, the real developments in niche sectors will
derive increasingly from synergy established between the various partners: fiber producers;
machinery manufacturers; and those end-users convinced of the value of innovation.FAST 2001, the
Italian hosiery show, in its third incarnation, has once again demonstrated through the power of
concrete numbers the power of its attraction within the Italian hosiery market. FAST has also
consolidated its position within the international trade fair scene, according to Luis Ciocca,
chairman of the fairs organizing committee. Indeed, at the end of last year, an agreement was
reached with the American hosiery manufacturers association [The Hosiery Association], which
organizes the International Hosiery Exhibition (IHE) in Charlotte [N.C.]. According to the terms of
this agreement, the two fairs the Italian one and the American one will be staged alternately at
two-year intervals: IHE in 2003 and FAST in 2005, and so on. This is an excellent result, the fruit
of a collaboration that will continue in the years to come. The result, he said, will contribute to
the development and strengthening of both exhibitions. The third incarnation of FAST attracted
181 exhibitors, 110 of which were from outside Italy. More than 14,000 visitors from 93 countries
attended the fair. Additionally, according to FAST organizers, the caliber of visitors was
particularly encouraging, with 11,400 being either managers or highly qualified technicians. Of
this number, 5,200 were from Italy and 6,200 from other countries. A further breakdown of numbers
revealed there were 2,300 operators from Northern and Western Europe; 1,000 from Eastern Europe,
including Russia; 970 from the United States; and 950 from the Middle East.Visitors had access to a
number of carefully integrated exhibition areas: yarns and accessories; preparation machinery;
circular knitting machines; looping machines; finishing and packaging machines; accessories; and
services. Hosiery In The SpotlightIncluded within the fair was a convention entitled Hosiery
in the Spotlight, an event made up of an opening conference and several specialized workshops. As
part of the event, consumption trends in hosiery were analyzed by ACNielsen Sita, and the results
were presented at two well-attended lectures.Looking at the current market scenario, womens hosiery
is still characterized by a falling trend. Establishing 1997 consumption as the benchmark (equal to
100), consumption of tights, stockings and knee-high hosiery fell to 99 in 1998, 92 in 1999 and 85
in 2000. The market situation, however, seems to have stabilized in 2001, and improvement is
anticipated. For mens hosiery, consumption has increased an average of 2.5 percent annually. An
interesting element is that this increase in demand can be attributed mostly to women, who are
buying more and more mens hosiery made from natural fibers. Short mens socks, long rejected by
Italian customers, are beginning to gain ground on knee-highs.Figures released also show the
evolution of large retail shops. In the womens hosiery sector, chain stores are recording strong
growth levels, and specialist shops are increasing as well. In the mens sector, despite the
prominence of market stallholders (42 percent), modern distribution channels, particularly
hypermarkets, are gaining ground on others.Sid Smith, president of The Hosiery Association (THA),
discussed similarities and differences between the Italian and American markets.Hosiery in the
Spotlight closed with a roundtable meeting entitled Socks: Fetish or Fashion
Accessory First-Time ExhibitorsFashion and the hosiery market were not, however, the only
topics around which FAST 2001 evolved. This year, the Verona-based exhibition welcomed 12 hosiery
manufacturers for the first time: BBF Gambetti; Calzificio Milanese Luigi Ciocca; Calzificio FAP;
Calzificio REA; Calzedonia; CSP International; Franco Bombana; Golden Lady Group; Industria Bustese
Calze; Kayser Roth Corp.; Mura Collant; and VMC (Vignoni). For these companies, the secluded
Business Point area, specifically designed for the purpose, provided a place to meet customers and
established or prospective partners to discuss, compare notes, and develop new relationships and
initiatives. Technical Innovation

As well as providing confirmation of the numbers participating at the event, operators also
had high expectations for the technical developments anticipated to be unveiled at the show. In
particular, visitors were anxious to check out state-of-the-art machinery in seamless hosiery, the
area attracting the most international attention of late. But technological innovations were also
prevalent in other areas, with significant developments emerging in the area of fibers, yarns and
filaments. Among the most important initiatives in this area, have been collaborations between
machinery companies such as Santoni and Matex and fiber companies such as Bayer, Filartex, Filature
Miroglio, Franzoni Filati, Bonazzi Aquafil, Nylstar and others. But the development of fibers,
yarns and filaments was evident in non-Italian companies as well. Of particular note was the
innovative silver fiber, X-Static, of American design, for which successful applications have
recently been found in Italy. Apart from developments in this arena, however, it was the entire
Italian hosiery industry pipeline that dominated the FAST exhibition. This pipeline features raw
materials (polyamides, elastomers, latest-generation man-made polymer fibers, etc.), new yarns, the
exhaustive and sophisticated range of weaving machinery, and leading technologies for special
applications.

July 2001

WASHINGTON, D.C. — ATMI President Charles A. Hayes, Guilford Mills, Inc., expressed the textile
industry’s appreciation to the governors of Alabama, Georgia, North Carolina and South Carolina for
their letter to President George W. Bush urging the Administration to take immediate action to
alleviate the crisis facing the U.S. textile industry. “The governors of our country’s four largest
textile producing states have recognized the clear threat the current textile crisis poses not only
to their own states and constituencies, but to our nation’s economy as a whole,” Hayes said. “We
appreciate their call for President Bush to similarly recognize the urgency of this situation and
to make maximum use of his powers under existing law to confront the problems caused by foreign
unfair trade practices.” “As the governors have noted, President Bush has shown a commendable
willingness to take actions to provide a level playing field for the steel industry. It is now time
for him to similarly step up to the plate on behalf of the American textile industry, which if
anything is facing even more difficult times. Asian currency devaluations have produced a 40
percent average reduction in the cost of textile and apparel imports into the United States. U.S.
companies and workers are being devastated by this contrived advantage that has nothing to do with
Asia’s economic competitiveness.” Hayes said, “The hard-working textile employees in Alabama,
Georgia, North Carolina and South Carolina, as well as throughout the country, are looking to the
President and his Administration to show this same concern for U.S. textile jobs. Our industry
contributes over $70 billion to the national economy, and employs nearly one-half million people.
These individuals need their President to go to bat for them.” “We join the governors of these
states in urging President Bush to make immediate use of all the weapons in his arsenal to fight
unfair trade practices and to prohibit the importation of goods made with child labor. We further
support the governors’ call for the president to instruct his negotiators not to negotiate any new
trade pacts that will lead to more job losses in the U.S. textile industry.”
Click here to
view pdf file of letter

Unifi Inc., Greensboro, N.C., has reached an agreement with Glen Raven Inc., Glen Raven, N.C.,
under which Unifi will assume operating control of Glen Ravens air-jet texturing operations based
in Altamahaw, N.C.The agreement increases Unifis air-jet texturing volume from 2 million to 15
million pounds per year and signals Glen Ravens exit from air-jet textured polyester and nylon yarn
manufacturing.The added manufacturing capacity will allow Unifi to produce a more complete range of
regular and solution-dyed air-jet textured yarns. Unifi will target opportunities in flatwoven
automotive, contract and industrial upholstery, as well as high-end branded knit and woven apparel
markets. The deal also provides Unifi an entryway into the growing polypropylene segment.Its
consistent with our desire to leverage core manufacturing expertise, it enables us to diversify our
fiber range and end-use markets, and it provides immediate access to a broader mix of high-value
products were very excited, said Alf Webster, president, Unifis North American operations.Glen
Raven will continue to market and sell a broad range of spun and package-dyed yarns, including
filament.Unifis premium position as the worlds leading yarn texturer best enhances the opportunity
for this business to reach its full potential, said Bill Bardin, president, Glen Raven Yarn Co.
LLC. We will focus our investments on the development and production of differentiated yarns and
fabrics and the building of successful brands.
July 2001