What does it to take to reshore manufacturing successfully?

Online sales have exploded during the coronavirus pandemic, as consumers try to stay home more. Online sales at Walmart, Target, and Best Buy in the first quarter increased by 74%, 141%, and 155%, respectively. Meanwhile, the 800-pound gorilla that is Amazon (NASDAQ:AMZN) continued its steady march, growing global online sales by 24%.

The coronavirus pandemic has led to a massive fallout for the world economy. Just in the US alone, over 36 million people have filed initial claims for unemployment benefits over the last seven weeks. The restrictions that were instated to stop the spread of the virus have devastated in-store businesses of all sizes and exposed the vulnerabilities of our global supply chains.

The supply chain disruptions have created longer delivery times. This increased delivery time amid political uncertainties and complicated national trade policies has fostered a strong renaissance towards reshoring, local manufacturing and fulfillment.

In an effort to to blunt recessions many governments are pushing businesses to reevaluate long established supply chains. A lot of energy appears to be focused on stimulus programs aimed at reshoring and strengthening local production and supply networks.

Last month alone, Japan earmarked over $2 billion of its economic stimulus package to help its manufacturers reshore production out of China. French President Macron, a former champion of globalization, has said that their supply chain will need to be focused more locally, while his Minister of Economy, Bruno Le Maire, urged citizens to stock French products. German Chancellor Angela Merkel recently said that the pandemic required a level of sovereignty obtained through a “pillar of domestic production”.

The U.S. Government for some years has been strongly advocating corporations to bring offshored manufacturing back to the US. The COVID-19 pandemic has highlighted the importance of having access to not just essential goods, but even to seemingly simple products like masks and gloves locally.

Professor Beata Javorcik, chief economist at the European Bank for Reconstruction and Development, recently told BBC, “They will re-shore activities that can be automated, because re-shoring brings certainty. You do not have to worry about your national trade policy, and it also gives you an opportunity to diversify your supplier base.”

Jonty Blum of the BBC added, “Although, some factors such as 3D printing, automation, the demand for customization, quick delivery, as well as protectionism were already driving this trend, it seems that Covid-19 has only accelerated that process.”

Many economists are echoing this sentiment: Automation will likely accelerate as companies look to reduce their reliance on low-skill, low-cost labor in other countries while supporting less contact among employees and consolidating steps along the value chain. According to a report published by analyst company Forrester, automation could become the key for businesses to survive the looming recession brought on by COVID-19.

On-demand manufacturing is a key area that has seen unprecedented growth amid demand uncertainty and scarcer resources. The recent demand for face masks is one example: Due to the difficulty involved in anticipating how long the need for masks will continue, or at what rate, the traditional model of producing and keeping stock does not work. With on-demand manufacturing, the products are made after purchase and that ensures the materials and resources aren’t wasted on inventory. Since the product is made bespoke and on-demand, it is possible to add customization. Customization, in turn, increases what consumers are willing to pay and reduces returns, giving companies the ability to sell more products at a higher price. The catch is to do this while maintaining the same operating expense, which is where automation and on-demand manufacturing technology make all the difference between success or failure.

In times of uncertainty, it is only natural to speculate on the future. The one sliver of a silver lining that can be viewed amid this tragic crisis, outside of our reduced contribution to ongoing climate change, is the potential way in which we can recover from this. Hopefully, we will emerge with a stronger industrial strategy and more sustainable, resilient supply chains.

vPersonalize focuses on technologies for mass-customization and on-demand manufacturing at scale. Our technology helps apparel brands and their manufacturers bring designs to market significantly faster and make those products on demand.

Discover real-time commerce. To find out more, Contact Us.

 

Technology for mass personalisation and on-demand manufacturing

This article originally appeared on WTiN 17 April 2020 based on an interview by Joe Link. 

 

Technologies have emerged with the promise to streamline operations, but for a solution to be successful it must work at scale and be cost effective. To date, large swathes of the apparel industry accept that change is necessary but have been slow to adopt disruptive technologies. On-demand manufacturing is a term we hear a lot: the emerging business model is seen by many as the future of the apparel industry. Similarly, the print-on-demand and personalization trend has been gaining traction in the last decade as consumers show a weariness towards mass-produced, bulk fashion

 

vPersonalize duo Bala Selvarajan and Robert Johnson talk to Joseph Link about the importance of mass personalisation and on-demand manufacturing to the textile supply chain. Below are some excerpts.

vPersonalize’s Chief Revenue Officer (CRO), Robert Johnson, believes that transforming the supply chain is a collective effort that ties together the technology providers, brands, direct-to-garment (DTG) sector, textile printers and consumers.

“On the supply side, we see a growing migration to dye sublimation and print on demand because it offers better margins and the ability to create retail quality products on-demand,” says Johnson. “This in turn creates a new pool of suppliers that brands and retailers can tap into. The real power of this disruption is that this new supply chain is local.”

One outcome of this disruption, Johnson points out, is the re-shoring movement. It has become a viable prospect to use technology to manufacture locally, through which turnaround times can be slashed.

“The main driver of personalization is targeted small-batch manufacturing which allows a brand to create, and experiment with, thousands of designs and size variants. The benefits include lower inventory costs and the ability to only manufacture a product after it has been purchased. This is the real promise of personalisation and on-demand manufacturing: make what sells, when it sells and get it to the nearest store where it sells,” Johnson adds.

“Print-on-demand always held the promise of bespoke, made-to-order apparel,” Johnson says. “Large sections of the textile supply chain still rely on heavy manual labour and when you have a large workforce operating different machines, human error becomes an issue.

“With a purchase-to-production-line solution, a lot of these uncertainties go away and what is designed and visualised is exactly what gets made,” he continues. “This brings predictability and repeatability to what has largely been a manual and cumbersome process for decades.

“On-demand manufacturing reduces wastage. Our [vPersonalize] solution enables a design to be taken directly to a production line in minutes, which makes local manufacturing possible,” Johnson adds.” And with local manufacturing comes reduced reliance on international shipping and the resultant carbon emissions. We have just one planet to leave to future generations and we are getting to a point now where we need everything to be sustainable.”

Outlook

“As more customers start working remotely and with smaller teams, the move to virtual product development, sampling and small-batch production will accelerate. We are focusing on the existing pieces of our technology that can support our customers during a period of social distancing and beyond, using tools that reduce the need for in-person contact like virtual product development, design-to-manufacturing accuracy, automation and online commerce,” says Selvarajan.

“The impact of Covid-19 is unprecedented and there is little by way of data or experience that can help us navigate this. But, we are seeing significant changes to consumer purchasing behavior, perhaps permanently, accelerating towards e-commerce and abandoning physical spaces. While online commerce is recording historic numbers, brick and mortar companies are seeing unprecedented closure”

vPersonalize focuses on apparel brands and manufacturers, helping solve some of the key technical challenges that are specific to them, says Selvarajan. He continues: “In all of this, the common theme will be to help our customers bring designs to market considerably faster and to help them manufacture those products on-demand.”

Online commerce may now be a survival necessity

Brick & mortars across the country are amidst an unprecedented closure due to the coronavirus. With hundreds of thousands of employees furloughed, companies are facing vast decreases in revenues and are bracing for the impact that coronavirus will have on them. The harsh reality is that some might not make it to the other side. According to Coresight, an estimated 630,000 outlets have already been forced to close and the National Retail Federation estimates that $430 billion in revenues will disappear over the next three months.

During this time of mass social distancing, consumer purchasing behavior is changing rapidly, perhaps permanently, barreling towards e-commerce and abandoning physical spaces for fear of contagion. While Amazon and Nike are seeing historic numbers, other companies are seeing sharp drop in revenue and scrambling to pivot to digital commerce.

It is believed that covid-19 will have long lasting effects on consumer habits. “When a lot of people are self-quarantined or staying in their homes and being in a lot less public places, we’re going to see a shift in behavior,” says Shelley Kohan, founder of Shelmark Consulting. “We’ve talked about how e-commerce is supposed to grow over the next few years, but this is something that’s going to happen in our first quarter and that is going to change behavior in quarters two, three and four.”

Andrew Lipsman described this phenomenon in Kohan’s article for Forbes, calling it a “step-change,” a short-term change in reaction to a specific event that creates a new, higher plateau for a certain behavior. Lipsman continued, “during the holiday, a time with more concentrated buying activity, consumers spend more online, creating a step-change, meaning the consumer may not return to past behavior. We may see this type of similar behavior unfold over the future.”

Businesses big and small must act now to create a solid digital strategy and align their business models to this new normal.

 

Focus on online sales

If you don’t have a digital strategy, the time to act is now! Even if you already have a fairly sophisticated online presence, prepare to run a large part of your business digitally. Make it easy for customers to purchase your product and services online. Prepare for a low-touch future.

 

Foster good relationships with your customers

Make sure to communicate with your customers clearly and consistently. Let your customers know you are open for business online. Create rewards and incentives. Use your social media presence to keep your customers up to date and connected.

 

Retool key processes for virtualization and automation

As more companies start working remotely and with smaller teams, the move to virtual product development and small batch production will accelerate. Use this time effectively to retool your processes and make changes to facilitate remote communication and less on-site staff.

 

We are here to help

If you are in the apparel space, we can help. We continue to focus on technologies that can support our customers during a period of social distancing and beyond, using tools that reduce the need for in-person contact like virtual product development, design-to-manufacturing accuracy, automation and online commerce.

As you use this time to focus on making your business resilient, we’re here to serve you with technology for a digital future – mass customization, on-demand production and online commerce.

 

Connect with us to learn more: 

www.vPersonalize.com

hello@vpersonalize.com

 

 

Make custom products 60x faster!

We specialize in mass-personalization and on-demand manufacturing at scale. Leverage our decade long expertise and patented technology to ensure what is designed is exactly what gets made! Go from purchase to production line 60x faster. Bring predictability and repeatability to your made-to-order and small batch production process. Contact Us to know more.

vPersonalize Product Builder

Announcing the launch of a complete technology platform for print-on-demand

complete print on demand platform

We are happy to announce the launch of a full technology stack to turn any dye sublimation or direct to garment (DTG) operation into a complete print and fulfillment house in as little as six weeks!

Our integrated platform includes 3D visualization tools that let your sellers intuitively design, publish and manage their products in 3D, while our inbuilt commerce gateway allows your sellers to automatically create catalogs and publish them to Shopify, Magento or WooCommerce. Our process automation ensures that your factory floor receives production ready files of all end consumer orders with the designs graded to size and ready for manufacturing, minutes from purchase! Use our inbuilt Order Management System to manage and drop ship the orders or use our APIs to connect to your existing Netsuite ERP or Hybris CRM.

Allow as much or as little customization as you prefer. Add buyer personalization or team rosters and still go directly to manufacturing without any manual work. Better still, use your existing supply chain!

The integrated platform allows any DTG or Cut and Sew maker to connect and service as many seller accounts and storefronts as they prefer, support stock designs or full personalization, leverage the patented cross product designer, sell with ready plug-ins for e-commerce and then automatically create print ready files in minutes.

vPersonalize’s makes running thousands of team stores, influencer commerce, in-page artist merchandise or designer storefronts very simple, while leveraging vPersonalize’s industry tested 3D visualization and manufacturing automation technology to create hundreds of thousands of print ready files a day for on-demand manufacturing.

Leapfrog your competition in as little as six weeks, at a fraction of the cost of their in-house solution! We help you focus on your core competency, while leveraging our #1 PoD technology platform without the capital expenditure. Learn more at http://www.vpersonalize.com

Technology to turn any manufacturer into a print & fulfillment house!

Custom Gateway

Full technology stack to turn any Print On Demand (PoD), Dye Sub or Direct To Garment (DTG) apparel manufacturer into a complete print and fulfillment house in as little as 6 weeks! Save months of time and hundreds of thousands of dollars in cost. vPersonalize is the only platform you will ever need to service all your sellers and make on-demand.

  • Your sellers can design, manage and publish products
  • Catalog builder
  • Order Management System
  • Direct connect to Shopify, Magento, WooCommerce
  • Print production automation
  • Automated size-grading & nesting
  • Roster automation
  • Built-in commerce platform and custom APIs

Add additional modules for increased productivity:

  • Barcodes & mobile scanners
  • Kiosks
  • Color management
  • API integration to select printer hardware

Go from purchase to production line in minutes! Email hello@vpersonalize.com to know more.

Design Tools | Catalogs | Print Automation | Order Management

www.vpersonalize.com