PLM for Inventory Control – ‘Storing Cash’ from Footwear News

September 24, 2009 at 9:06 pm Leave a comment

I recently read an excellent article in Footwear News called Storing Cash by Jocelyn Anderson, which focused on inventory control as a means of improving cash flow in times of economic decline.

SVP of RMSA Retail Solutions Paul Erickson is quoted as saying, “Inventory is No. 1, and the faster you sell it, the better your cash flow.”

To achieve this delicate balance, Bob Schwartz, president of of Eneslow Pedorthic Enterprises says, “If you think of each shoe box as dollars, the most important thing to do is tighten your inventory. Never be out of your core and don’t worry about the fringe—there’s no room for B- and C-level product right now.”

As a member of the PLM industry, it got me to thinking about and appreciating PLM in terms of inventory control and economic soundness.

Anyone’s who’s looked into PLM knows the gist of what PLM achieves—it creates a more efficient business and saves appreciable money, materials and labor, all while generating outstanding ROI. But when you break down the big picture, just like Erickson says, inventory control really is at the heart of it all.

For example, one of the core ways PLM saves a company money is by allowing a user to determine not only how much of a material is needed to create a product, but to determine exactly how many passes of the needle are required to stitch it together. This allows for laser-precise inventory control, saving fabric, thread, labor and time—and money on all of the above. Once a product is created and sold, meticulous records are generated, logging how many pieces where sold and delivered to each store, making it easy to re-order materials and produce the correct amount to fill another order.

One could argue that during an afore mentioned period of economic decline may not be the time to invest in a PLM system. I would like to argue that PLM may be the one safe investment during times of economic hardship. In my experience at BMS (where our clients enjoy 100% successful implementation and customer satisfaction rates) it is the one investment statistically proven generate profits, and could be just what the doctor ordered in terms of inventory control and economic stimulation.

Has anyone else read the article? I’d appreciate any comments or thoughts you may have on this topic!

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Entry filed under: Fashion, PLM, technology, textiles. Tags: , , , , , , , , , , , , , , , .

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Business Management Systems (BMS) has been a leading provider of product lifecycle management software solutions to the apparel & textiles industry for 15 years, delivering VerTex Toolboxes--an easy-to-use modular system uniquely configured to meet every company's specific needs.

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