Apparel Manufacturers Thrive with Digital Transformation: Industry Leaders Share Their DX Journeys

"Digital Transformation is more than something nice to have," declared Michael Penchansky, VP of Manufacturing Solutions at CGS, "it's essential to meet the evolving needs of today's customers."

This assertion served as the backdrop for CGS's recent "Unlocking Success: How Innovative Manufacturers Thrive with Digital Manufacturing" webinar.

The event moderator continued, "Digital transformation (DX), sometimes called Smart Manufacturing, is rapidly evolving across all manufacturing industries. It results in continuous improvements across the entire business and supply chain while reducing costs and driving revenue to increase competitiveness. DX enables adept manufacturers to pivot when disturbances arise and capture new growth opportunities. That is why apparel and sewn products manufacturers are putting energy and investment into technologies in all aspects of their operations."

The session featured three industry leaders sharing their companies' DX journeys and results.

• Fernando Goya, Director of Engineering and Manufacturing Services for Workwear Outfitters (WO, formerly VF Workwear), spoke about his quarter-century of experience in implementation and continuous improvement with CGS' BlueCherry Shop Floor Control solution in Mexico and Central America. An early adopter of the digital manufacturing technology, WO is the world's leading manufacturer of innovative work apparel and footwear.
• Andres Bequillard, Director of Process Improvement at Confexsa, a 1300-employee Nicaraguan manufacturer of workwear, protective wear and other diverse apparel products (pants, shirts, jackets, knits, etc.). The company, primarily serving US brands, implemented its SFC system about one year ago.
• Fernando Galan, CEO of Comfetex, a leading denim apparel manufacturer in Mexico, discussed his reasons for investing in and the pending implementation of BlueCherry SFC.

Why Digital Manufacturing

From a 30-thousand-foot view, the reasons for going digital often appear similar. But, as the panelists explained, the specific drivers behind their journeys are as diverse as the businesses they represent.

Confexsa, for example, produces many flame-resistant (FR) protective garments, a fast-growing market. Bequillard says, "We are focusing on digitalization to help us capture that growth. An equally important driver for us was the desire to improve customer service levels. In the protective apparel space, it's critical to have transparency with customers and clear visibility across our internal operations. We also wanted to have complete transparency with our operators."

While Comfetex is the newest member of the CGS family, Galan says, "We started working to digitally transform our cut and sew and denim washing and finishing business some time ago. Key drivers for us were increasing productivity and having real-time visibility on our shop floor. We also knew we needed to work on ways to make our people happier and eager to work. We firmly believe that digital manufacturing is the future."

As a long-time user of BlueCherry SFC, Workwear Outfitters' original reason for adopting the technology was to simplify the complete operation by improving the core structure of its global manufacturing operations. Goya explained, "We originally invested in the system to track bundle (work in process) movement, streamline incentive payroll processes, better control quality, enhance management reporting and make other essential improvements."

3 Distinct Journeys

The DX journeys of each participant made for a dynamic discussion. Each provided unique insights to webinar attendees. This was partly due to their wide range of experiences and timelines, from Goya's 28-year DX journey to Galan's recent first steps with BlueCherry SFC, which has long been established as the leading DX technology for apparel and related manufacturing due to its proven track record of reducing costs and increasing efficiency and productivity.

While cost reduction and productivity improvements are always top of mind for sewn products manufacturers, the numerous massive challenges of recent years have driven producers to shift their reliance on historical data and instincts to real-time, data-driven decision-making.

Confexsa's Bequillard explained, "While interest in this type of technology existed even before I joined the business, you always wonder when the time is right to do it. We finally decided to take the next step about one year ago when we saw an excellent opportunity for growth in the industry and the (CAFTA-DR) region. We also asked how we were going to do this. Switching a facility of 1300 sewing operators over from a 15-year-old payroll and shop floor system creates many concerns and questions. Working hand in hand with CGS, we determined that a phased rollout would be our best strategy. We essentially divided our factory into quadrants and did four separate installations. The whole process took about nine months. We are now looking at evolving things like ERP and other technology projects.

The Technologies

Of course, SFC is not always the only technology involved in a company's DX journey. The ERP system was frequently mentioned as a natural next step and integration point for SFC.

Goya confirmed that Workwear Outfitters has invested a lot in equipment in recent years. Much of this effort has gone into updating cutting systems to more digital and networked technology capable of sharing more accurate information with the rest of the manufacturing operations.

Comfetex's Galan added, "We want to automate most of our systems. We started a couple of years ago with an ERP system that helps us better manage inventories and purchase orders. We've also been investing in digital equipment for our laundry. I think it will take some years to digitize the whole floor fully, but that's what we aim for."

Bequillard also spoke about investing in cutting room technologies to improve cutting and fabric spreading times. His company recently invested in new nesting software. He also noted that Confexsa expects to connect its ERP system fully to all facets of the business. It is already doing this with its SFC system. This integration allows the ERP to pull from the BlueCherry database to provide end-to-end tracking of purchase orders and improve planning for the entire operation.

The Benefits and ROI

Drawing from his vast experience with SFC, Goya stated, "As we progressed with the system, we began to use it to simplify the balancing of production lines by transferring operators to jobs causing bottlenecks. Now, we can analyze everything digitally and base production decisions on statistics. The SFC system simplifies every single step in the process.

Speaking about his expectations for his SFC implementation, Galan added, "One of the main reasons we are getting the system is to increase productivity. After careful consideration, we expect at least a 10% increase. In addition, the transparency that our workforce will have with this payroll system is amazing. They will know exactly what they are producing in real time and have confidence in how they are paid."

According to Bequillard, "The only way to really do these things is through digital transformation. Being at the forefront of technology puts Confexsa in a position to better service our clients. You can gain efficiency in many different ways with this technology. For example, provide production workers real-time information on what they produce and how much they earn. This can improve our internal environment, help us make better products more efficiently, and enable us to take on more orders.”

“In our case, operators have smoothly adapted to the system. There are a lot of positive vibes around now due to the real-time information they are receiving, the improved payroll process, and the fact that production and efficiency reporting are fully transparent. The benefits of real-time information extend to management as we can identify and address bottlenecks much quicker than before to keep production flowing. We can also share more information with our customers to improve customer service levels and relationships.”

"We've already experienced great efficiency gains for our production lines with constant workflow. From a management standpoint, we also see places where we can continue to improve on those gains. I absolutely think there is an ROI for this investment."

When asked what advice they can share with those considering SFC and embarking on their journeys, the panelists offer the following.

Goya suggested that companies have a good incentive pay plan, preferably with a system already in place, to optimize SFC's benefits fully.

Bequillard cited the need for a strong process leader with technical knowledge and background to shepherd the project. He also stressed the importance of knowing your business well and focusing on how to best marry the system's benefits with your unique business needs.

Perhaps most importantly, "Once you have your needs mapped out, just get started!"

We invite you to watch the on-demand version of the webinar to gain valuable insights into how DX can drive success in the apparel manufacturing industry. CLICK HERE to watch "Unlocking Success: How Innovative Manufacturers Thrive with Digital Manufacturing".