By most definitions, PLM starts where the product development and design phase ends. However, by involving sourcing teams and the supplier network in the design and development phase of the product lifecycle can result in cost reductions of nearly 18% compared to organizations that lack such collaboration (Kurt Salmon Associates, 2007 Study). This level of collaboration can also yield up to a 20% improvement in time-to-market speed.

Best-in-class retailers use an automated solution, like the Reserve module in XpressCommerce, to make hard or soft commitments to purchase a given number of goods from their suppliers, and in turn allocate capacity to produce these items at agreed times throughout the production season. This “reservation” can be to pre-position raw materials or finished goods and gives all parties involved the ability to forecast supply and demand cycles. The benefit for the retailer is reduced on-hand inventory and guaranteed production capacity ensuring a “lean” process.

The complexities of the retail and apparel industries make product development and planning the most frustrating process for these organizations. With overall lead time from concept to in-store typically taking 10 to 16 months, it is no wonder executives and employees are frustrated. With the introduction of technology, cycle time reduction can also be in the cross hairs. Never a one-way conversation, trading partner collaboration is needed to enable secure access to data by external suppliers that participate in the development process – defining, building and maintaining the relationship between each organization. This provides more efficient communication while maintaining tight access control throughout the system.