| The next time you pop into the fashion
boutiques, take a moment to think about those jeans
from an IT perspective. Somebody in New York designed
them based on instructions from someone in Paris. The
design was sent to a factory in Shenzhen, where thousands
of pairs were made in a variety of sizes and colours.
If you look closely, you will see a variety of labels.
They’re in different languages and some will be
specific to individual markets. All of those labels
had to be printed, sorted and delivered at exactly the
right moment to enable the factory to ship the jeans
right on time. In addition, the cartons being shipped
would have had their own labels as well.
You might think that in today’s world putting
all these elements together would be fairly easy. The
answer to that is, well, yes and no. The company responsible
for most of this is Avery Dennison, and they have been
doing it for a long time. They understand the issues
extremely well and although they make it look easy,
it succeeds because, firstly, they have a firm grasp
of what needs to be done and, secondly, if they did
not they would be out of business.
Terry Hemmelgarn is the Vice President and General
Manager for the Retail Information Services Asia at
Avery Dennison and he believes they have a firm understanding
of the needs of their customers. “We provide brand
ID and data management services. We move data all over
the world. In Asia alone, we process over 10,000 orders
each day,” he said.
The business is tied to information technology in a
way that few others are. For many companies, IT is there
to “help” and many of the top managers secretly
wish it would go away. At Avery Dennison, nothing could
be further from the truth. Indeed, IT drives the business.
Everything the company does is done at speed and must
be extremely accurate.
“This business is about complexity, accuracy
of information, speed of delivery. The same garment
can be made in different parts of the world, so we must
be able to send the same data anywhere. This is a very
transaction-intensive business. Our value proposition
is to manage the complexity,” he said.
Brand management, for anybody who has seen what the
international giants are willing to do to protect it,
is not for wimps. Companies choose colours for products
and logos and want them to be exactly the same all over
the world. Get it wrong, and you will hear about it.
Mr Hemmelgarn said Avery Dennison has systems in place
to make certain nothing goes wrong here. They can now
send files all over the world safely and almost instantly.
Ricky KF Tang, the Director of Sales and Marketing
for Retail Information Services Asia, said the turn-around
from initial design to finished product is usually about
60 or 90 days. “We did once handle an order, from
initial design to shipping in 15 days. But that was
a very special and unusual case,” he said.
Obviously, Avery Dennison will be both keen and cautious
about new technologies. With RFID just around the corner,
and other business-transforming innovations like the
Digital Trade and Transportation Network (DTTN), the
company is always looking for what will make a difference,
what will give an edge. DTTN, the system devised by
industry leaders and the Hong Kong government, is especially
interesting. It is intended to make logistics and supply
chain management smoother and easier than it has ever
been before. The project is scheduled for pilot launch
by the end of this month and Mr Tang said they found
it quite helpful. “DTTN completes the link to
our customers. Some are sophisticated, some are not.
If something can help us, we’re happy,”
he said. Being a visionary leader in the industry, Avery
Dennison has committed to the DTTN Pilot Program.
Mr Hemmelgarn said that new technologies were always
something that would interest the company but only if
they see it as adding value to the business or making
life easier and better for their customers.
Unlike other businesses, where certain standards are
starting to become a fixture, Avery Dennison deals with
a lot of different technologies. Some of their customers
may have an elaborate ERP system, using all the latest
technology available; others may only have a simple
spreadsheet. The least technically aware may simply
use a flat file. Avery Dennison must be able to handle
all of these conditions, and the DTTN, which could be
able to support “any-to-any” transformation
of data format and communication protocols, is therefore
seen as the solution.
Besides the DTTN, there is no doubt that RFID will
eventually play a very important role in their technology.
They are investing in it now and doing some tests. Mr
Hemmelgarn believes the first deployment is likely to
be with the labels put on the outside of the cartons.
Right now, they use bar-codes and although that has
worked quite well for many years, there are certain
issues and constraints. It is necessary to put the labels
in a position where they can be clearly read by the
bar-code reader. With an RFID solution, this isn’t
necessary.
The problem at the moment is that there are not enough
global standards.
“Getting a uniform standard is important. I think
it will start to happen soon, but it will take time,”
he said.
One of the biggest challenges for a company like Avery
Dennison is that fashion changes so often. Then again,
that also means more labels to print.
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