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Enhancing Supply Chain Efficiency: The VICS/CMSS Initiative Overview

The VICS/CMSS Initiative aims to streamline material specifications in the supply chain, focusing on enhancing collaboration among retailers and suppliers. Established in 2005, it seeks to standardize the specification for raw materials such as fabrics and components. With members like Nike and PTC, the initiative is developing a comprehensive proof of concept, set to launch in December 2008. By reducing communication inefficiencies and cycle times, the initiative expects to cut operating costs by 50%, material costs by 30%, and markdowns by up to 80%, ultimately improving global sourcing and material traceability.

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Enhancing Supply Chain Efficiency: The VICS/CMSS Initiative Overview

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  1. Supply Chain Enabling - Subcommittee AAFA/ISC Fall 2008 Committee Meeting Members: Brion Carroll/PTC <need updated list>

  2. IndustryUpdate Topics • VICS/CMSS Initiative • Topic 2 • Topic 3

  3. VICS/CMSS Initiative“Background Overview” • CMSS – Collaborative Material Specification Standard • Material Specification Standard - based on • GS1/HK AppTex Standard • Committee has been in operation since 2005 • Members include PTC, Fountain Set, eBizPrise, Nike, KSA, Dillards, Liz Claiborne • Proof of Concept in development (Starts Dec/08 for 6-8 months) • Nike (Retailer), Fountain Set (Fabric Supplier) • PTC (PLM-Retailer), eBizPrise (Supply Mgmt – Supplier) • Validate fitness of AppTex standard • Validate the Use Case applicability • Validate Multi-system integration • Additional Retailers/Suppliers to be added in months 4-6

  4. VICS/CMSS Initiative“AppTex Standard”

  5. VICS/CMSS Initiative“AppTex Standard” Standardize the specification for 7 Raw Materials: Button Interlining Knitted fabrics Labels & tags Thread Woven fabrics Yarn

  6. Fabric Supplier System Retailer’s Product Development System VICS/CMSS Initiative“Collaborative Environment” The systems are able to exchange the detailed Material Specification using the CMSS (AppTex) format, ensuring clarity of the material’s definition without requiring either system to “know” the other system’s detailed data model definition.

  7. 50% of the Material identification process not value added > back and forth textual/phone communications 50-60% of daily work hours on phone calls, emails…. Average cycle time – 37 days** (max-60 days) Potential missing information – 18% Potential Errors – 20% Restrict capabilities in global sourcing VICS/CMSS Initiative“Current Problems”

  8. Reduce phone/email communications to 10% Reduce cycle time to approx 7 days Increase material (product) offering-e.g. from 20 materials to 30-40 materials. Eliminate missing info and errors Re-align staff to other value added jobs – e.g. innovative material development Increase operation efficiency Facilitate Global Material sourcing Enhance material source traceability VICS/CMSS Initiative“Perceived Operational Benefits”

  9. Reduce operating cost by approx 50% Reduce Material cost by approx 30% Increase sales by approx- 30% Reduce Markdown by approx 60-80% VICS/CMSS Initiative“Perceived Cost Benefits”

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