January 2017 Entries

New Research Explores The “Zara Gap”

If you regularly follow NGC’s blog or our guest posts on The Sourcing Journal, you’ve heard us discuss what has been christened in the industry as the “Zara Gap.” The “Zara Gap” is the idea that retailers can increase profits and capitalize on market share by reducing lead times and delaying product completion to respond to changing consumer demands. Zara has achieved this while other fast-fashion retailers continue to lose profits and waste raw materials by ignoring consumer demand.

John Thorbeck, chairman of Chainge Capital LLC, and Warren H. Hausman, a professor at Stanford University, along with Citi Research, were the first to discuss the Zara Gap and are diving deeper and researching this phenomenon. According to Thorbeck and Hausman, “retailers can increase profits by as much as 28 percent and market capitalisation by as much as 43 percent if they reduce lead times and delay finished product commitments in order to respond quickly to changing consumer demand.”

In a recent article on Jan. 9, Business of Fashion further explored the “Zara Gap” based on Thorbeck and Hausman’s research. You can view the full article and learn more about the “Zara Gap,” here.

If you’re a retailer looking to close the gaps in your supply chain, contact NGC today.

Women on the Move: NGC Customers Receive Top Industry Honors

NGC customers Angela Chan of DXL Group, Janet Sherlock of Carter’s and Natalie Meurer of Legendary Whitetails recently received recognition for outstanding leadership in the retail and apparel industries. 

RIS News recognized Chan, Chief Sourcing Officer and SVP, DXL Group, in its Top Women in Retail Tech feature earlier this month. The article cites Chan’s implementation of NGC’s PLM software as one of her crowning achievements so far at DXL. 

“Before I came into my current role, DXL had previously implemented NGC Software’s PLM, but unfortunately the solution wasn’t adopted properly and we had to go back to square one,” Chan says. “I fought to re-implement the solution, retraining the team on the software and our sourcing practices. Not only was it a big tech project to undertake, but it really brought together the entire company as we worked together to overcome the challenges from the first implementation. Now that we have achieved implementation, we have become incredibly efficient.”

Sherlock, Carter’s CIO and chairman of the National Retail Federation’s CIO Council, was also recognized in the “Top Women in Retail Tech” article. Sherlock and her team were cited for their work in delivering on the retailer’s omnichannel promise. 

Apparel Magazine named Meurer, Product Development Supervisor at Legendary Whitetails, as one of its “Top 30 Under 30” in its December 2016 issue. The article notes that Meurer has taken a leading role as the company works to speed up production processes. According to Apparel, “She has taken the initiative…not only in pulling the technologies together [but] taking on the role of cheerleader
for the company’s relatively new PLM system from NGC, which Meurer says has been instrumental in giving multiple departments one set of data to work…”  Legendary Whitetails art director Tom Bennett said of Meuer, “Her leadership and determination are nearly remarkable for her age.”

Congratulations to each of these deserving winners!

NGC’s New Mobile Quality Solution Helps Improve Product Quality and Reduce Chargebacks

Where’s the best place to correct quality issues in apparel? On the factory floor, of course. But all too often, companies don’t discover critical quality problems until products have arrived at the distribution centers or stores. 

That’s why NGC recently announced our Advanced Quality Module. The new tablet-based software and application allows quality control managers to easily conduct quality audits and detect problems before the goods leave the factory floor. As a result, retailers and brands can identify problems sooner, fix them at the factory before products ship, and reduce the risk of cancellations or chargebacks by improving product quality.

Our Advanced Quality Module replaces the time-consuming, manual quality control processes still in use by many brands. It easily integrates with existing PLM and apparel supply chain management solutions from NGC and other vendors, and it features multilingual online and offline functionality for global collaboration. The Advanced Quality Module can be used with the NGC Interactive Quality Tablet, a fast, easy-to-use, mobile solution for quality auditing.

This complete solution allows auditors to conduct multiple audit types per purchase order, take photos of defects, and conduct master inspections. NGC’s Advanced Quality Module can provide comprehensive analytics by factory, vendor, country and style, assuring the most complete set of quality data, which can be analyzed in order to assist with sourcing decisions and identify where factories can make improvements. Corrective action plans bring the quality assurance process full circle.

For more information on our Advanced Quality Module, click here.

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