Application of Information Engineering to model the complex supply chain relationship for a textile and clothing industry in Hong Kong/China Jimmy K.C. Lam Institute of Textiles & Clothing The Hong Kong Polytechnic University
Hong Kong is one of the leaders in the world of textile and clothing and the industry accounts for one-third of local output and employed over 324,000 people in about 30,000 industry in 1997.
However, the global market has become more competitive and with the relocation of many manufacturing establishment to other regions, activities like sourcing, quality assurance and development of textile products are becoming more and more important.
The application of an interlocking set of formal techniques for the planning, analysis, design and construction of information systems on an enterprise-wide basis or across major sector of the enterprise.
Unlike software engineering, which applies structured techniques to one project, information engineering, applies structured techniques to the enterprises as a whole, normally with automatically tools.
The IE model was used to firstly strategic overview the current business operation and secondly a detail business analysis on current problems and improvement areas. (The first and second layers of pyramid)
Business Systems Planning (BSP) and Critical Success Factors are used as a portfolio of information for data analysis.
Business Systems Planning is a structured interview technique developed by IBM on identifying the problems and decisions associated with an organization process and determine what information is needed to address them.
Critical Success Factors focus on key performance areas that must be function effectively for the organization to be successful and associated information requirement
Based on the above information strategy planning and business area analysis, it became obvious to reduce inventory turnover time so that unnecessary financial “wastage” can be recovered.
At present, the inventory turnover for the Company is 90 days while the benchmarked best practice in the industry is about 45-50 days.
The reasons are due to inability to use existing sales and market information about current consumers’ buying behaviors, buyers’ preferences, fashion trend and feedback on the effectiveness of marketing strategy.
This paper discusses the methodology, characteristics and implementation stages of IE and a textile/clothing/trading/retailing complex organization was selected for studies.
The current business practice and trend, critical success factors were identified and results were formulated in a set of application portfolio to minimum stock out and increase stock turn over for the Enterprise
The IE methodology proved to be useful in studying the complex supply chain with its enterprise-wide approach.