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F. BORGA1, A. SAVOLDELLI2, A. VEZZOSO3, C. KATAPODI4 Abstract. Cutting Edge is a trial application project funded under the 5th Framework Programme of the European Commission, IST Programme (Information Society Technology). The European Consortium is composed by textile companies, consultancy companies and IT providers from Italy, Greece, Belgium and France. Cutting Edge main objective is to re-design the order management process within a textile supply chain, exploiting main advantages of digital printing technology. The digital printing allows to strongly reduce production costs (even for little stocks of product), improving the whole productive system efficiency. 1. Introduction In this context, the ability to circulate information in an efficient and quick way by the mean of integrated and homogeneous infrastructures, the possibility to easily extract required information from the system, and the necessity to efficiently manage the processes even remotely, are requirements ever more highlighted by business users. The so called e-chain is a value and supply chain along which information flows are circulated from the selling sites to the companies production departments, involving marketing functions logistics and planning, practically in real time, thanks to the possibilities offered by Information and Communication Technologies (ITC). The objective of the whole system is to extremely reduce the time to market, such to produce nearly on request. This imposes a new conception of the company, which becomes ever more structure integrated and intelligent. In the light of previous considerations, the e-chain is an e-business opportunity which companies willing to play a competitive role in nowadays markets can not postpone any more. This is particularly true for the European textile sector, which is usually considered a mature sector and which is facing strong attacks from lower costs countries competitors. European companies are thus called to a new challenge: to provide the markets with quality products alongside better services. Better services mean possibility to produce directly on market requirements, with high quality standards, but still maintaining low prices or even reducing them. In this perspective, the opportunity to strongly reduce time to market and fixed costs not strictly linked to the textile core business, gives the European textile sector a new competitive advantage in regard to new competitors, which are not able to produce items with high quality standards [1]. But another factor engraves on textile companies: the ever more reduction of average order. Clients prefer to order little lots of products and, if necessary, reorder them. This is mainly due to the floating of fashion markets. This trends implies for textile producer willing to keep high competitive standards, great abilities both in terms of just in time production and quick response to clients requirements. Cutting Edge has been specifically designed following the requirements of a textile supply chain, facing the above defined market threats. 2. Objectives Cutting Edge develops a set of e-business tools allowing to re-engineer process related to printed fabrics selling, reducing time to market and production costs. The processes involved will be: - sample collection sale process without modifications/with
variants modifications; The solution will allow to manage the orders in a computerised format, from the selling phase till the production. The Cutting Edge platform will be integrated with a software tool for images search and retrieve, developed in a previous EU funded project [3]. This software will allow to search and retrieve the closest image to client requirements in a database of over 25.000 images, by the use of different algorithms. This will further reduce the time required for the order process. 3. Method Within the Como textile district it is possible to identify all the key actors (converter, photoengraver, printer) involved in the textile supply chain, comprehending all needed steps to transform raw materials in finished products [2]. In this context Cutting Edge will develop an e-business solution for printed fabrics selling, involving both internal selling process of a textile producer (the converter), and external processes linking the converter with another relevant actor of the involved supply chain, the printer (i.e. the producer of the printed fabric). The converter is a particular actor of Como textile supply chain playing a key role in co-ordinating other actors role along the whole production cycle [4]. In doing that, supply chain relationships are characterised by strong trust, common business visions and long terms relationships. The importance to have trusted relationship with suppliers is due to the fact that managing many processing phases, converter can not be skilled in all the activities to be performed and it is absolutely necessary confidentiality of artisans working on new products. In such a context, where a partnership relation already exists, e-business solutions can contribute in creating a more efficient and fast information exchange allowing to obtain better final results and reducing the time to market for the overall sector. For doing this, it is necessary to note that the introduction of e-business solutions should be supported by proper organisational changes. From the analysis of competitive forces and of the evolution
of the market demand results that the most important competitive dimensions
in textile sector are: The improvement of this overall (external) performance dimensions can be achieved through the improvement of the performance levels of all the involved internal (both repetitive and lump) processes. This, in turn, can be achieved modifying the way in which single activities are performed (and their output), and through a re-design of the overall processes. For doing this, it will be necessary to act both on the procedures (formalisation), and on human resources and technological supports. The relevant processes to be analysed in the Cutting Edge project can be encompassed in the category of order management processes but, due to the peculiarities of the textile sector specifically concerning market relationships and new product development, it is quite difficult to distinguish between the classical product development process and the subsequent active cycle (or order generation and fulfilment) process. The overall result is a make to order production scheme, where the orders are often customised, if not designed completely ad hoc for a particular customer. In this context, three basic kinds of processes have been identified: - the exclusive new collection definition; All the processes have been analysed from the beginning till the production order release, thus the phase of production and delivering of the product are not included, since they do not appear as interesting as the previous ones, given the purposes of the analysis. In redesigning these processes, the trial application focuses firstly on the improvement of some of the above listed firm performances, namely time (both time-to-market for new collections and order fulfilment lead time), costs, and flexibility. 3.1 tThe Extranet solution The matrix reported in figure 1 shows as, considering the complexity level and strategic importance of relationships within Cutting Edge textile supply chain, the best e-business solution to be implemented will be the Extranet. Printed fabric production requires high standards of integration between the converter and the printer, at the same time the Extranet solution is more flexible and less binding that other collaboration solutions, offering near the same advantages.
Figure 1 The positioning matrix of e-business solutions Concerning the selling side, the more the products selling processes will be sped up, the more will be reduced time to market and production costs (i.e. warehousing costs). This implies an high level of integration among all the involved supply chain main actors (selling department; production department; administrative department). The Cutting Edge objective will be to provide the supply chain with a package of tools allowing to evolve a traditional textile supply chain in to a digital one. 4. Technology The system could be logically divided in to two parts: - e-Commerce Functionalities;
4.1 E-Commerce functionalities By submitting the order, the information will be send to the Back office that will analyse the order, correct it and complete it with all the technical data eventually missed or mistaken by the Sales. After this complex operation the order will be inserted in the information system and sent to the production. Also the Customers will have the possibility to directly order the products, but, due to the complexity of the process, the Customers will be able to re-order only products previously ordered.
Figure 2 Scheme of the Cutting Edge System functioning The Cutting Edge system will be also a secure system in order to protect the data from any external intrusion. The security will be mainly based on: - user name/password; 4.2 Image Search Tool - Image Code: it is the code identifying the image in
the database; The search and retrieve process is enabled by a set of searching algorithm (extraction algorithms), which transfer the data-rich pixel representation of an image into a compact representation of visual characteristics (features) that can be compared algorithmically in terms of their similarity. However, there is no feature that generically covers all visual aspects of a textile pattern image. This calls for the simultaneous usage of a number of different features, all of them representing different visual aspects. Therefore, features that describe the global colour distribution and the local colour distribution are quite popular for content-based image retrieval systems (the same applies to features that are closely related to colour such as hue, saturation, and luminance). The image features do not have a clear verbal description (like the images themselves) that enables users to immediately perceive the nature of the visual characteristics they represent. The only satisfactory way to describe an extracted feature is the mathematical equation for the generating algorithm. The other difficulty is that there is no method to evaluate the performance of a specific feature other than the subjective judgement of a specific user. This essentially leads to fuzzy criteria for the selection of appropriate features that depend heavily on the subjective view of each single user. The trial Image Search Tool application will include features that describe the most apparent visual characteristics of an image. This includes the following features: - global colour histogram; As a result, the user will be able to get a feeling about how the Image Search Tool works and how the specification of a query request are processed. The Image Search Tool contains a set of features covering a very broad bandwidth of visual and non-visual aspects. 5. Business benefits and future developments - reduction of the costs of the order management process:
reduction of the documents printing and distribution costs; reduction
of communication costs (telephone, fax, mailing, paper costs); reduction
of space needs to archive order documentation; reduction of transaction
costs; All these benefits result in an improvement of the overall quality of the output of the network of firms (in terms both of inherent quality characteristics of the product, and of compliance to customers specifications), a reduction in response time (both for new product codes and for simple re-ordering), and a reduction in overall costs along the value chain, both in production activities, and in support units. These results can be even higher, if the functionalities of the proposed technological solution will be enlarged to exploit all its potentialities. In particular, possible developments include the full integration of the supply chain, in order to enlarge the benefits of e-solution and processes integration to other steps of the production chain. This could allow to further reduce activities duplication and downtimes, improving the overall efficiency. Another possible development direction is the introduction of co-operative solutions with other firms operating in the textile district, in order to manage demand fluctuations and share common services, again starting from the Cutting Edge solution. References |