3D Journey – Mind to Materials Logistics ...

Article image for  3D Journey – Mind to Materials Logistics  ...

The purpose of this writing is to continue the journey of how a company travels through the transformation from the world of disconnected "automation" to a digitally connected PLM Based SolutionScape that will enable it to experience Mind to Market.

This article continues the journey by identifying how to enable material buy aggregation, resulting in FOB/Landed Cost Savings through direct materials sourcing.

Prior readings suggested (in order):

- Day in the Life of ...

- There's Got to be a Better Way ...

- 3D Journey: Mind to Plan ..

- 3D Journey: Mind to Design ...

- ​3D Journey: Mind to Digital Testing ...

Author's Note - Any reference to specific commercial products referenced in this article is not intended to denote that other commercial products (or in-house developed modules) would not serve a similar role. It is merely used to represent an example of a product in market that is capable of achieving the integrated operations as noted.


Progress continues since the previous report (in [object Object]) at Good Products, Inc.

Image

As disclosed in the previous “Day in the Life of …” article “Mind to Digital Testing …”, Good Products’ management have been working to address the challenges of delivering competitively priced products to the new market created through their wholesaling opportunity with Retail, Inc. As Jonathan Wilson (Merchandiser of the Men’s Collection) noted (in the previous article) the product offering needs to meet “… the price points that will optimize initial market demand while meeting margin targets.

Jackie Nolan (VP, Product Sourcing) has devised a risk adverse strategy of dividing production between APAC and LATAM based manufacturers. With COVID mostly in the rear-view mirror, she never wants to have supply chain issues again, which is now protected by diversifying the regional sourcing of products. However, this causes material sourcing by factories less effective when looking to get a lower landed cost because each factory is limited in their buy quantities for their specific production run(s).

In the development of the Strategic / Tactical Plan, the Team at Good Products were consulted by Digital Solution Group that gaining a “buying position” on primary materials is a key value point enabled with a Mind to Market solution.

The way to achieve a buying position is to source materials directly for delivery to their sourcing factories; by leveraging their consolidated production / sales forecasts (as covered in the “Mind to Plan …” article) now being provided through a combination of VibeIQ (Assortment / Range Planning) and [object Object]’s product specification information.


With this focus Maggie Wilson (Lead Designer) and Barbara Goodwin (Materials Sourcing Manager) are applying the “Material First” approach to the design of new products with the intent of being able to aggregate their material buys to enable the necessary discounts with their strategic material suppliers.

Based on DSG’s recommendation, Good Products took the next tactical step in its strategic integration plan by implementing TradeBeyond’s suite of CBX modules to gain direct control over materials management. With DSG’s assistance Thomas Wilson (VP of Systems Technology) was able to implement the CBX modules and establish an intimate integration of FlexPLM and CBX.

As a reminder, FlexPLM is already integrated with [object Object] for Product Design; [object Object] for access to new and existing materials from strategic suppliers; and [object Object], where designs are continuously shared, and assortments are defined / refined. These integrations set the stage for this next phase of integration – Mind to Materials Logistics.

​By establishing this incrementally expansive SolutionScape profile Good Products’ organization is able to exploit the integration between FlexPLM and the CBX suite of modules to:

  • Iteratively transfer new product (+ colorway/sizes) profile information and initial factory assignments to [object Object];
  • Digitally push primary material’s / supplier’s profiles once confirmed by Design and Material Sourcing; and then
  • Pass full technical specification content, including Bill of Materials, Points of Measurement, and Grading to enable full material yield calculation based on size curve / production forecast. 

Maggie and her Team are able to work with Matthew Wright (VP of Merchandising) and his Team to not only obtain the favored pricing of the primary material orders, but they are also able to exploit the features of [object Object] and [object Object] to manage the first run and all replenishment orders to ensure Good Products’ product production / delivery are sufficient to support the on-line and in-store inventories, while also supporting Retail, Inc.’s supply of products. This was critical to support the execution of Good Product’s strategy to expand its market presence beyond its direct market channels.

By establishing digital fluidity from Merchandising to Design to Development and Sourcing (of both Materials and Finished Goods), Good Products is now able to leverage their growing buying position on materials instead of being forced to suffer the pricing limitations of the Finished Goods manufacturers / factories. However, this required that the full Team at Good Products take on the challenge of working in a collaborative manner; which was enabled through the digital fluidity of their evolving PLM Based SolutionScape.

Stay tuned for the next phase of Good Products’ Mind to Market digital transformation.

​To have a SolutionScape Assessment done (free of charge) today, either fill out the form below or contact brion@digitalsolutiongroup.net (also @ +1-603-566-5382) or mike@digitalsolutiongroup.net.

This article is also available as a downloadable PDF below.

3D Journey – Mind to Materials Logistics …

Download File

Let DSG assess your company's Day in the Life of ... profile @ no cost

* Indicates required field