TW Special Report

“We only have one Planet Earth, and yet by 2050 we will be consuming as if we had three.”

Virginijus Sinkevičius, European Union (EU) Commissioner for the Environment, Oceans and Fisheries, states a problem that is facing all of us. Solving this problem means choosing more sustainable options, thereby creating opportunities for manufacturers.

On December 11, 2019, EU President Ursula von der Leyen outlined the European Green Deal. The EU aims to make Europe the first climate-neutral continent by 2050. To succeed in this goal, it must convert a linear economy into a circular economy, where consumers use, reuse, repair and recycle, rather than just use and discard.

On March 11, 2020, the European Commission adopted its Circular Economy Action Plan (CEAP). The plan focuses attention upon the industry sectors that use the most resources and which could benefit most from the circular economic model. Sectors include electronics and ICT, batteries and vehicles, packaging, plastics, construction and textiles.

Individual countries are also taking the initiative. France has recently introduced its ‘Anti-waste Law for a Circular Economy’. This creates a new challenge for brands, as the aim is to allow customers to be able to compare the environmental impact of their purchases with other similar items. Alongside provisions to phase out the use of disposable plastics are measures to fight waste, solitary use, and planned obsolescence.

The goal of a circular economy isn’t restricted to Europe, markets around the world are beginning to wake up to the need for greater sustainability in the clothing and textile industry.

Waste In The Textile Industry

When a consumer thinks about buying a new item of clothing, they want a garment that makes them feel and look good. It must also represent good value for money and that means high quality, durable products.

From the perspective of the consumer, durability has two meanings — physical and emotional. Physical durability means strong and well-made products that are built to last. A garment with emotional durability will continue to be worn by the consumer because it has a strong and positive association. Therefore, poorly made clothes that are designed in a way that will make them go out of fashion very quickly can be considered non-durable.

The scale of the problem is enormous. Globally, it is estimated the average consumer will discard 31.75 kilograms of clothing every year. This equates to 13 million tons of textile waste, of which around 95 percent could be reused or recycled. This is bad for:

• Environment — wasted resources, chemicals leaching into the environment, etc.;
• Consumers — constantly replacing products that do not satisfy them;
• Manufacturers and retailers — will be branded as poor quality if their products don’t last, which may ultimately lead to their brand being boycotted by consumers; and
• Holistic approach to durability.

The demands of a climate-neutral and/or circular economy provide textile manufacturers with an opportunity. Focusing on durability means they can continue to efficiently access markets while building brand loyalty, because they are focusing on meeting and exceeding the demands of consumers.

Proactive manufacturers are taking a holistic approach, looking at all aspects of production — from design and the selection of raw materials to the finished product. Design is key. According to the sustainable exchange charity WRAP, 80% of a garment’s environmental impact is decided during the design phase.

Taking a holistic approach to the problem means focusing on a variety of factors, including:

• Construction — from selecting the right raw materials, the right cut and fit, as well as the manufacturing process;
• Resistance to physical damage — abrasion, pilling, snagging, etc.;
• Colorfastness — the right dyes must be chosen to resist fading;
• Functionality — will an outdoor coat continue to repel water over the lifespan of the product?; and
• Design to fit — designers can increase longevity by creating clothes that can be adjusted to fit an individual’s shape.

Opportunity

Governments and consumers are realizing that some modern manufacturing practices are not sustainable. More durable clothing means a reduction in environmental impact through:

• Less need for clothing replacements;
• Reduced waste levels;
• Reductions in resources for manufacturing; and
• Enhance reusability, upgradability, and reparability.

For manufacturers and brands this is an opportunity. Durability means regulatory compliance, but it also means:

• Higher prices — consumers will pay more for high quality products with longer lifespans;
• Lower costs — proactive engagement means potential problems are identified and rectified at an earlier stage; and
• Brand loyalty — durable products are less lightly to fail, thereby securing psychological loyalty from consumers. Additionally, in a connected world, if a consumer likes a brand, they are likely to talk about it on review sites and social media.

The push towards a circular economy could be seen as a hindrance by some, but actually it is an opportunity.

SGS Solution

SGS has developed a comprehensive durability assessment service to help manufacturers develop garments and textiles with a longer lifespan. This service can be tailored to the individual requirements of the business, and can include testing protocols covering base materials, performance and longevity. It is proactive, augments best practice, and helps manufacturers to deliver value-added products to markets all over the world. After all, it’s only trusted because it’s tested.

August 13, 2021

When Trau & Loevner needed to increase order processing efficiency by automating the EDI information transfer to and from a Microsoft Dynamics SL system, the company implemented TrueCommerce EDI to seamlessly process orders and support its growing business.

TW Special Report

Started in 1897, Trau & Loevner is a true family-owned business operating out of the heart of Pittsburgh. The company specializes in creating screen-printed T-shirts, tanks, hoodies, and other apparel, producing between 12,000 and 16,000 dozen T-shirts per week on average. Trau & Loevner apparel can be found in many popular fashion retail stores, including Kohl’s, JC Penney, and Urban Outfitters, as well as specialty shops like Five Below.

However, the company doesn’t stop at retail stores. Trau & Loevner also produces top-quality screen-printed T-shirts for army air force and naval bases, as well as employee uniforms and merchandise for businesses like Pittsburgh’s famous Primanti Bros. You can also find Trau & Loevner products on Amazon.

According to Production Coordinator Ken Schnur, Trau & Loevner has been a longstanding Microsoft Dynamics SL customer. He explained, “Their customer service has always been wonderful. Anything I don’t know, I can reach out to them, and they’ll get back to me very quickly.”

So, when its customers began requiring electronic data interchange (EDI) in the early 2000s, finding a solution that would work with Microsoft was a top priority. “We had potential customers who would only send EDI orders,” Schnur recalled. “If we wanted their business, we had to do EDI.”

TrueCommerce’s EDI solution for Microsoft Dynamics was the perfect fit, Schnur noted. “TrueCommerce and Microsoft work very well together,” he said. “It makes sense for what we do.”

Steady Support for Customer Growth

From 2006 to 2021, the apparel industry has changed significantly, and EDI has only become more important as businesses transition from manual, paper-based processes to digital supply chain management. For Trau & Loevner, the partnership with TrueCommerce has been a huge benefit.

On the sales side, EDI experience can help build trust with potential customers. Schnur clarified. “We still have customers tell our salespeople they can only do EDI orders. Now, our Sales Reps can say we’ve been doing EDI for a long time, and it’s no problem.”

Adding new trading partners is also easy, thanks to TrueCommerce’s Fully Managed Service model. Schnur recalled being nervous when he took over customer onboarding at Trau & Loevner. He remembered, “I felt really intimidated, because it was something I was totally unfamiliar with.”

Having TrueCommerce at his side made all the difference. “The TrueCommerce customer service and implementations teams made onboarding customers a breeze,” he said. “For any question I had, they’d get back to me right away, usually within the hour.”

TrueCommerce also enabled Trau & Loevner to get new customers up and running quickly. “For one partner, TrueCommerce estimated that implementation would take three to four weeks. In the end, we went live in just one week,” Schnur noted.

Customer Service That’s a “Favorite Feature”

TrueCommerce’s support goes beyond customer onboarding for Trau & Loevner. In fact, Schnur said that TrueCommerce’s support teams are a top reason for the business’s success with EDI.

“My favorite feature of TrueCommerce is the customer service,” Schnur emphasized. “Anytime I have a question, I reach out and the team gets back to me right away. They work with me until we find a solution. I’ve never once felt like I got put to the side.”

Schnur remembered one instance where TrueCommerce’s support helped Trau & Loevner remedy a potentially costly issue. He remarked, “At one point, we were getting chargebacks from a customer who said there was a mistake in our ASNs. They were charging us $30 every time it happened, and we were up to $300 because it was happening consistently.”

TrueCommerce’s support teams worked closely with Schnur to determine the root of the problem. “TrueCommerce helped us figure out that there wasn’t an issue with our EDI system at all — the error was happening on the customer’s end,” Schnur said. “With TrueCommerce, we were able to show them the proof in our ASNs, and get the chargebacks reversed.”

Powerful Features For Smooth Order Processing

TrueCommerce’s top-tier support is matched by best-in-class EDI technology, designed to help companies like Trau & Loevner do business in every direction. For Schnur, the benefits have been numerous.

“One of my favorite features is the item cross reference table,” Schnur said. “I can go and tell the system what I need my label to say, and TrueCommerce pulls in all the information and saves it. So anytime I run a label for that customer, it’s going to have the right information, every time. I love that I only need to provide the information once, and then it’s there when I need it.”

Having a system that plays well with Microsoft Dynamics SL is also helpful, according to Schnur. “It’s really easy to export an order from TrueCommerce into my Microsoft Dynamics system, work on it, and then put it back into TrueCommerce to ship it,” he noted.

“Once we set up a cross reference table and link it to Microsoft Dynamics, it works seamlessly. As soon as I bring in an order, TrueCommerce transfers it over to my Dynamics environment, so I don’t have to manually type anything in.”

By automating data transfers from TrueCommerce to Microsoft Dynamics, Trau & Loevner is able to prevent mistakes that could damage their customer relationships. “If we were entering sales orders in manually every time, there’s a much bigger chance the information would get screwed up,” Schnur said. “Even a great employee is going to have a bad day and make mistakes. TrueCommerce EDI automatically transfers everything over correctly for every order. It saves us a lot of time and headaches.”

Processing orders quickly, without sacrificing accuracy, is crucial to Trau & Loevner’s success, and with EDI, getting things done fast is easy. “TrueCommerce lets me move as fast as I need to,” Schnur said. “I can run an EDI order through faster than our production shop can keep up. That makes me happy.”

Schnur also reflected on the impact EDI has had on the business as a whole. He asserted: “If we didn’t have EDI, we’d probably need to hire at least another full-time person to process the orders that come in and make sure they are entered correctly. TrueCommerce EDI makes it so simple.

“TrueCommerce definitely pays for itself, because it lets us do business so easily. We wouldn’t be able to deal with big customers like Five Below if we didn’t have an EDI solution. Kohl’s couldn’t work with us without EDI; neither would Walmart. It makes a huge difference.”

Crucial Functionality During 2020

The apparel industry was hit particularly hard with the onset of the Coronavirus pandemic in early 2020. For Trau & Loevner, the fallout of retail closures meant navigating a changing landscape. “When the pandemic hit, all the retail stores we sell to had to temporarily shut down,” Schnur recalled. “At the same time, our Amazon business started going way up.”

Pennsylvania’s strict measures to stop the spread prohibited Trau & Loevner from producing new products, but the company was still able to fulfill orders from their existing inventory.

TrueCommerce was a steadfast partner, ensuring the company could manage order changes. “We had a ton of order cancellations that came in. Retailers who had planned orders months ahead for their summer rollouts had to cancel. It was easier handling those cancellations because we had EDI, and we didn’t have to type the data into Microsoft Dynamics by hand,” Schnur noted.

Luckily, over the summer, businesses began reopening in Pittsburgh, and Trau & Loevner was able to begin producing new shirts once again. It was a good thing, too, because when retail doors reopened, the orders started pouring in.

“When things picked up, everyone was opening their stores at the same time, and they needed products to put on the shelves. We got absolutely slammed with orders. EDI made it possible to process them all,” Schnur said.

A Smooth Solution for Apparel Brands

As Production Coordinator for a growing fashion brand, Schnur doesn’t have time to focus on order processing issues. That’s one reason he loves the TrueCommerce EDI solution for Microsoft.

“TrueCommerce is one of those solutions that works so well, and so smooth. Sometimes I take it for granted, because it’s so easy to reach out for help when I need it. But most days, I don’t have to think about EDI at all,” he said.

TrueCommerce also ensures that Schnur and his team can approach EDI with confidence. He remarked: “TrueCommerce is an important part of my business, but it’s not my whole job. There’s lingo I might not understand when it comes to EDI, but the TrueCommerce team knows how to speak to me at my level. They never speak down to me, but they make sure I can understand, and I’ve always appreciated that.”

For other businesses, Schnur had this advice: “To everyone in the apparel industry, TrueCommerce EDI is going to save you so much time, especially compared to manually processing all your orders. I wish all my orders were EDI.”

August 13, 2021

TW Special Report

Counterfeiting and piracy cost the global economy around $4.2 trillion a year. This negatively impacts economies, brands and individuals. Fake products threaten businesses, and they can be dangerous for consumers.

The Economic Cost of Piracy

The International Chamber of Commerce (ICC) and International Trademark Association (INTA) published a joint report into counterfeiting and piracy in 2017. It estimated that by 2022 the global trade in fraudulent products would be worth $2.3 trillion. In addition, displaced economic activity, investment, public fiscal losses and expenditure on criminal enforcement would cost economies an extra $1.9 trillion.

Counterfeiting and piracy threaten legitimate jobs. The report estimates 5.4 million legitimate jobs are being put at risk across a wide variety of sectors. The European Union (EU) reckons 84 million people, 38.9 percent of all EU jobs, are in industries that rely on the protection of intellectual property rights (IPR). In total, they account for 45 percent of total GDP. If IPR are not protected on a global scale, the livelihoods of these people, and millions more around the world, are being put at risk.

The Domestic Cost Of Piracy

Consumers may think IPR is unimportant to them; that is does not impact them. This attitude is short-sighted.

A 2019 study found most fake goods were consumer products. The Organization for Economic Co-operation and Development (OECD) believes fake goods now make up 3.3 percent of world trade, and that figure is rising. Footwear is the most heavily bootlegged industry (22 percent), followed by clothing (16 percent), leather goods (13 percent) and electrical equipment (12 percent).

Counterfeit products are substandard. Legitimate manufacturers ensure products conform to market requirements on safety and performance. Counterfeiters do not. They are trading on a legitimate name but without the proper testing regimes and quality management systems in place to ensure products are safe and secure.

This is of particular concern when the product may cause harm to buildings or consumers. Examples include electrical products with substandard wiring that can give an electric shock or start fires and fake toys and jewelry that could contain harmful substances.

Another even more worrying trend is the rise in counterfeit pharmaceuticals. Counterfeiters work fast and they have very quickly found ways to hijack the COVID-19 vaccine rollout. In some countries unofficial, pay-for-a-jab services have been found to be administering a fake serum. In Mexico, 80 people paid $1,000 for a counterfeit vaccine and, in Poland, illegal jabs that had not yet reached the market were found to contain an anti-wrinkle treatment.

Where there is demand but a limited supply, there will always be an opportunity for criminals to introduce a counterfeit and substandard product.

Fighting Illicit Trade

To protect their IPR, legitimate brands spend a considerable percentage of their turnover every year on fighting illicit trade (FIT). Fraudulent products decrease their sales and, because they can potentially hurt the consumer, they can also damage their brand.

Companies have traditionally relied on retaining specialist lawyers in territories where they think they need to protect their IPR. This approach is expensive and isn’t always effective because it largely relies on reaction rather than proactive effort.

A more efficient method is to use Application for Action (AFA) and Memorandum of Understanding (MOU). These documents allow a brand to assert their IPR in a particular country. It places an obligation on local customs and law enforcement authorities (LEA) to enforce their IPR in cases of counterfeiting.

AFA and MOU are made in targeted countries. They are then supported by a global surveillance network utilizing AI (Artificial Intelligence) analytics, on-the-ground inspectors, and specialist training for LEA officers in new suspicious shipment profiling techniques. This new approach reduces costs, improves flexibility and optimizes brand protection.

SGS FIT IPR

SGS FIT IPR utilizes AFA and MOU to create an efficient protection strategy that builds on insights into fraudulent activity gained via AI analytics. The FIT IPR+ Platform allows rights holders to operate in real-time, integrating AFA/MOU and transmitting updates to relevant authorities.

This comprehensive IPR protection solution lets rights holders maintain control over their AFA/MOU, while giving them access to high level data analytics. In addition, SGS’s on-the-ground specialists will act as the intermediary between the rights holder and local enforcement authority, collecting samples, inspecting suspicious goods, and delivering decisions about authenticity.

For brands, the advantages are:

• Optimized IPR protection strategy targeting the right countries;
• Greater flexibility to react to new threats;
• Lower costs; and
• Local knowledge, global experience — SGS understands local customs and markets and acts as the rights holder’s intermediary.

For consumers, the advantages are that counterfeit and substandard products are seized at borders and do not end up in their homes.

August 13, 2021

Mexico-based garment manufacturer to utilize GSDCostV5 from Coats Digital, harnessing internationally recognized method-time benchmarks to drive costing optimization, manufacturing excellence and business profitability. 

TW Special Report

A long-time Coats Digital customer, Industrias MyR already utilizes FastReactPlan, Coats Digital’s production planning solution, and is continuing its digitization journey with Coats Digital by adopting the market leading time-cost benchmarking solution, GSDCostV5. The solution will help Industrias MyR to utilize accurate standard minute values (SMVs) and provide a strong foundation for increased efficiency through better planning, balanced production lines and optimized capacity predictions, while concurrently delivering on CSR commitments.

The team at Industrias MyR recognised that a lack of manufacturing method standardization was leading to subjective costing and inaccurate planning. As a result, it was difficult for the team to accurately calculate labor costs or gain complete visibility into the realistic manufacturing costs. Ultimately, this had a detrimental impact on profitability. Committed to innovation and continuous improvement on their digitization journey, Industrias MyR was looking for a fact-based approach to quantify and optimize manufacturing methods and costs.

With GSDCostV5 from Coats Digital, Industrias MyR will be able to use international standard motion codes and pre-determined times, to establish and communicate open, fact-based garment costs based on sustainable method standards.  This will allow MyR to eliminate over or under costing, and ensure that accurate, fair and sustainable labor costs are considered at an early stage of the product development cycle.

Edgar Peña, operations manager at Industrias Manufactureras MyR commented:
“As we continue to grow, we need to keep innovating and digitizing our business to improve our bottom line results, but also our employee well-being. Implementing GSDCostV5 will allow us to accurately calculate fair labor costs, standardize our working methods and further improve our productivity.”

SaaS Advantage

The latest version of GSDCost will allow the Industrias MyR team to leverage an intuitive SaaS based platform, incorporating the latest capabilities, to provide fast access and high performance from anywhere in the world. The cloud-based solution will facilitate easy upgrades, reduce upfront costs, and enable better scalability and data security.

Eva Rivadeneyra, sales director of Coats Digital for Latin America commented.
“We are delighted to continue our partnership with MyR with the implementation of GSDCostV5,” Rivadeneyra said. “Building on our market-leading heritage as the international time-cost benchmark, this new browser-based version of our solution delivers a highly intuitive experience that will facilitate rapid user adoption and accelerated business benefits.”

GSDCostV5 supports a more collaborative, transparent, efficient and sustainable apparel supply chain, taking time-cost benchmarking, costing optimization and method improvement to a new level and placing people and fair wages at the heart of the recovery from the global pandemic.

August 13, 2021