Coping with the High Cost of Raw MaterialsSeptember 15, 2011
The escalating cost of raw materials such as cotton, leather, polyester, wool and other textiles, has left apparel and fashion companies in a precarious position. Companies that don't properly manage their raw materials commitments can get caught in the spiral of escalating prices and end up losing money on the merchandise they sell.
This is exactly where PLM comes into play as a strategic technology to help companies combat escalating costs by improving design and production efficiency, optimizing lead times, and injecting new discipline and cost controls into materials management. Today’s web-based PLM systems help companies control their raw materials with sophisticated materials management capabilities that allow instant visibility into materials requirements, purchases and inventory at remote locations.
While many companies think of PLM primarily for design, materials management is a prime example of the benefits of extending PLM into the supply chain part of the business as well. Helping companies handle the details of materials management is part of NGC's overall approach to PLM, which we call Extended PLM – combining both PLM and SCM.
Contact us to learn more.