The Research on the Supply Chain Management of Chinese Textile and Clothing Industry

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1 The Research on the Supply Chain Management of Chinese Textile and Clothing Industry LI Chuang School of Economics and Management, Henan Polytechnic University, Jiaozuo , China Abstract: Nowadays, network information technique is changing every fields of enterprise, such as the increase of product variety, the curtailment of produce cycle, the optimization of the design and process of produce, and the advance of product quality etc. Thereinto, supply chain management based on network technique provides a new kind of way for the enterprises to find out the market information and integrate suppliers, and it will be more and more applied to the enterprise information-based construction. At the same time, after joining into WTO, Chinese textile and clothing industry faces new challenge and opportunity, and need to improve production technique and bring into new managing style urgently. According to this actuality, the paper concretely introduced the development status of supply chain management at aboard and domestic, and analyzed the demand of textile and clothing industry, then brought forward the related design principle of supply chain management system of textile and clothing industry. Keywords: China, WTO, Textile and clothing industry, Supply chain management 1 Introduction Human society is gradually walking from industry economy age to knowledge-based economy age. The valid management of knowledge and information is urgent day by day for an enterprise. It can be said that enterprise is coming into a period of new management principle. Combining with the textile and clothing industry, after adjustment in recent years, and our country entering into WTO successfully, textile and clothing industry meets the uncommonly opportunity. At the same time, it also faces the competition and challenge of internationalization. Abroad multinational inbursts, the consume level of customers continuously increases, market competition continuously turns severe, and enterprise inner management turns low, especially the lag of information flow inside enterprises and from one enterprise to anther cause Chinese textile and clothing industry continuously reveal flaw. In this condition, the enterprise must realize that only depending on price, quality, product and service, can t enterprise win the competitive advantage, only put effort on the enterprise management and bring into new advanced management style, then there is the hope to stand on the indefectible position for enterprise. Implementing supply chain management is an inevitable historic trend that Chinese enterprises go into world market. Supply chain management mainly emphasize that enterprise can t participate in the market competition only depend on the inner resource of enterprises, they must bring the exterior resources (such as supplier and manufacturing of upriver, sales agency and customer of downriver) into a whole structure, integrating the inner resources and exterior resources together. It is possible to effectively arrange the activity of production and sale, satisfy the demand of producing that utilizing all of the resources of society, then realize the dynamic control and integration of resources and improve the operation efficiency and gain the competitive advantage from the market. 2 The Summary of Supply Chain Management Supply chain management is a compositive management way and idea, it makes each enterprise in the chain form an indivisible whole, each enterprise takes on the function of purchase, production and sale together, consequently it forms an organism of concerted development. Although the time that the supply chain management is put forward is not long, it gets great achievement and develops many applied systems. For example Banba system of BOAN company, Fourth Shift MSS for Object ERP system of Syban company, SyteLine software of American Symix 25

2 corporation, the optimization and real-time expand system of supply chain put forward by J.D. Edwards, SAP software, SUM compositive system of company. These systems have been gotten many outcomes in empoldering resources. In addition, many famous multinational enterprises, such as HP Company, IBM Company, DELL Company etc, have walked the key step in supply chain management system. In our country, the research of supply chain management is just a beginning, the research contents mainly limit at the problem of choice of supplier and fixed position, decline the cost, control quality, but they never consider the problem how to correspond supplier, manufacturer, seller and end user. So from now on, our country didn t have real supply chain network. Especially our textile and clothing industry management system is rare, and most of them adopt abroad system, the adaptability of enterprise is not strong, which cause the complexion of low whole economy benefit and low application success rate. The practice of abroad enterprise has been certified that supply chain management can bring huge benefit. If our country wants to stand on the world economy stage, there is no reason to refuse it. Knowledge-based age and information society develop at a high speed, which makes us quicken the step of information construction, and the supply chain is the outcome which is fit for the demand. We believe that supply chain management will bring huge market opportunity for China in the future. 3 The Demand Analysis of Textile and Clothing Industry The key problems of textile and clothing industry need to be resolved as follows: (1) Textile and clothing industry generally sells products through branch company all over the country, market shop and special shop. So it is very important that the logistic management from production base to commercial networks. Enterprises hope to match goods, supply goods, reject goods and allocate goods according to the state of sale and stock. It is difficult for an enterprise that has ten and hundreds of sell places to do this work quick and exactly. (2) Information system can t follow the demand of enterprise development, data processing technique is fall behind, didn t use the advanced communication and network technique. Although some enterprises have a few management software, they are unattached and can t share the date, can t reach the request of information integration. Enterprise information exchange is not fluent, the leader can t decide the right desision for the management, related department can t originize producing in time, can t send goods on time, delay the business opporunity. Enterprise can t quickly and exactly get the sale date, so it is hard for the branch company to do the sell forecast and analyse. (3) The stock management system of enterprise can t satisfy the request of supply chain management, enterprise can t real-time track the stock data, it affects the benefit of enterprise. (4) The production and management of enterprise didn t consider the influence of supply chain. Enterprise only considers the produce process, they didn t consider the influence beside the production system. Because of no systemic and scientific production plan, the order can t be disposed and can t ensure the time of deliver goods, then it influence the reputation of enterprise. (5) The exploitation of product is an important tache for the textile and clothing enterprise, and it depend on the level of forecast and analyses for the market sale. Because enterprise generally only calculate the name and goods number, they didn t notice the colour, style, specs, it can t realize single product management, so there exists some eyeless activity in the exploitation of product. (6) As a traditional industry, the inner management of textile and clothing industry is fall behind, lacking innovation. There is no advanced management tool to limit the people resource flow at main post, which badly influence the operation of enterprise. The thinking of big and whole small and whole has serious influence, the feodal thinking every thing didn t find other s help make enterprise bacome a closed system, it has so huge distant with the open and global manufacture and supply chain management, all these can t fit for the request of supply chain management. The produce, supply and sale tache can t harmonize, especially textile and clothing industry didn t realize the operative activity from whole angle, which cause the situation that the whole industry economy benefit is not very good. All above-mentioned problems directly or indirectly cause enterprise s operation efficiency low, resulting in the status that the competitiveness of domestic textile and clothing enterprise is not strong. Along with the intermationlization competition turns serious day by day, especially after our country 26

3 joining into WTO, domestic textile and clothing enterprise should strenghten the crisis feeling, begin with management and development, with cooperation and mutual benefit standpoint, optimize inner management system and the whole operation style, advance the operation efficiency, actively expand the business activity, establish morden enterprise mode which is fit for domestic and international competiton. The advanced supply chain management is an important tool that fit for the characteristic of enterprise to realize the above goal. Internet applications system is the key of the whole system, and it can analyze all kinds of problems of enterprise, and optimize the production, management, sell, service, purchase, stock ect by reasonable adjustment, and give the important basis of making decision. It also can help enterprises to take part in the international competition and improve the international competition of the textile and clothing enterprise by estabilishing scientific supply chain management system. Morever, the president of Chinese textile and clothing industry association, DuYuzhou pointed that we should quicken the speed of Chinese textile and clothing industry information system instruction, improve the level of management, use information network to expand business and trade service, on the meeting of whole country textile and clothing enteriprise information-based construction last year. Now China has been make the textile and clothing as the experimental unit of using information technique to imorove the level of automation, intelligentized and network. Textile and clothing industry, as the advantage industry of our country participating in the international competition, is facing the new opportunity and challenge of high and new-technology updating the traditional industry and world economic integration. As the important part of the digital textile and clothing technique, implementing the supply chain management of textile and clothing industry is urgent, and the research of related theory has the important meaning for our country to realize two changes, absolutely break big and whole small and whole, quickly going into the market and improve the survival ability and competition ability on the international market. From now on our government will big push and construct calculator and network system, try the best to have break in establishing ERP system, after 5 years efforts, we will generalize the ERP system in 200 main enterprises, settle an microcosmic system for establishing unitive information system. Moreover, we will follow the operation principle of IT industry to increase the investment on textile and clothing information network and local area network, realizing the transformation from special information network to industrial integrative network, making it become famous network in domestic and abroad. 4 The Design Principle of Supply Chain Management System of Textile and Clothing Enterprise Because the supply chain management involves in the whole activities of enterprise management, the construction of the system not only needs the professional theory but also demands comprehensive application of management, system engineering, calculator science, communication network, database and software engineering etc. So it must accord with the request of standardization and systematization, and it should concretely follow the following principles: (1) Practicability principle: this principle means that the system can satisfy the demands, and it is convenient to maintain and simply to operate. Because it is based on the need of now and future to construct the system, it decides that the system must have high practicability, and can be constantly enlarged and perfected based on user requirements. (2) Dependability principle: after each sub system puts into practice, it will become the indispensable assistant tool. So the system must continuously and reliably operate. System software must choose the international and popular operating system which has comprehensive application base. (3) Safety principle: the safety is related to the fund and information resource safety, so the system should have multi-level protection. System need to adopt internet firewall technique, the share of information should have the strict security classification and authority of a user. In order to prevent the system collapse that is caused by paroxysmal affair, the backup server should be adopted. (4) Advancement principle: this principle is that the technique level of the whole system should 27

4 achieve the advanced level of the similar domestic system under the condition of ensuring the practicability. The network architecture, hardware and software environment, software structure and function that used in the process of system design should stay advanced level in a considerable period of time. (5) Openness principle: the supply chain system is a web-based open system, so the system must be expanded and improved continuously after building. With the development of computer technique and application technique, some latest technologies and successful experience will constantly emerge, so the system development should adopt the standard COM, DCOM, CORBA norms, which facilitates the procedures developed by the different platforms, different manufacturers to be compatible at the level of executive program and to integrate the software made by third-party developers. The system can be used in the internal local area network, also support remote access, long-distance transmission and exchange of information and remote business processing. 5 The Meaning of Chinese Textile and Clothing Enterprises Implementing Supply Chain Management As for Chinese textile and clothing enterprise, implementing supply chain management will make the enterprise have huge development and bring infinite business opportunities for enterprise. (1) Decline the purchase cost, improve the odditional value of product Under the traditional trade mode, the purchase of original material of textile and clothing enterprise is a complicated and multistage process, and the consumed cost of financial and material resources is big. But it can be finished easily by using the EDI, net system platform, electronic technique. At the same time, it can save the payout of the labor force, printing and mailing. (2) Reduce physical storage, improve the operational efficiency For the textile and clothing enterprise, the correct stock amount not only can decline the cost of operation but also can provide better service. The reduction of stock means that the productivity gets effective usage. Textile and clothing enterprise implementing supply chain management can realize the modern logistic management, make the clothing retail, wholesale and manufacturing together, then form the system of timely supplying goods of textile and clothing enterprise and achieve zero stock. (3) Predigest the trade process, help the enterprise to get the competitive advantage Supply chain management can make enterprise easily control and supervise the trade process, then escape the risk of management, predigest the trade procedure. There is no difference of big and small enterprise on the internet, so it is convenient to get competitive advantage for the middle and small enterprise. (4) Enrich network resource, provide follow-up service for the customer As everyone known, clothing industry is one of the most fashionable and popular industries. The competition force of clothing products depends on the ability of catching the first hand market information, and make rapid response according to the demand information. How to improve the information efficiency on the industry chain of information catching -- product designing -- product manufacturing is the key of enterprise success. In addition, it is possible to subdivide the high specialization market by implementing supply chain management, then enterprise can carry through sales promotion with pertinence, finally it will form steady customer colony. 6 Conclusion When we go into 21th century, it means that we arrive at a numeric, network, information-based age. When the electronic business develop qucikly, every walk of life is developing the electronic business platform and doing the practise of network, textile and clothing must face the self-problem and the difficulty, hold the opportunity, accept the challenge, establish fitting supply chain management style. Only using new and high scientific technique to arm themself, can our enterprises grasp the market, meet the requirements of modern circulation domain and stand on the indefectible place in the 28

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