Liz's Paul Charron Headlines at Bobbin World - Brief Article

Bobbin, May, 2001 by Susan S. Black

Critical priorities in technology...Sourcing...Retail value...Life after 2005...China's new role...The evolution of B2B...Collaboration... Replenishment programs... Cycle time reductions... The new business environment...

If you're typical of today's apparel or sewn products manufacturing executive, these issues and more likely stay on your radar. They're on Paul Charron's radar too. As chairman and CEO of Liz Claiborne Inc. -- one of the world's most successful brands -- Charron is constantly looking out beyond the horizon to strategize for tomorrow.

If you haven't heard Charron talk about his view of the future, make plans to. As a keynote headliner at this year's Bobbin World show, Charron promises to be relevant, memorable and inspiring. He'll be the featured speaker at the annual Technical Advisory Committee (TAC) Breakfast of the American Apparel & Footwear Association. Co-sponsored by Bobbin World, the program is set for 8:00 a.m. on August 16 at the Orlando County Convention Center.

I spoke with Charron recently about the challenges of the global environment in which Liz Claiborne operates. For starters, compared to five years ago, the company is producing about double the number of units, has moved to 100 percent full package and is using 200 fewer contractors. The idea was not only to be more efficient with fewer parties, but also to reduce the costs of carrying materials inventories and to push responsibility into the hands of those manufacturing the products. "We now have total accountability with our contractors," says Charron, "and a result of that, we wind up with a far better product and a far reduced price."

Liz Claiborne uses a configuration of about 30 countries in its sourcing mix, and Charron and his team are keeping a close eye on trade developments that might behoove a shift in its matrix. China, for example, which has been among the company's top five sourcing locales, could become even more important in a quota-free environment. Says Charron: "In a real quota-free environment, such as might exist within the next three to 10 years, a country such as China could end up with a lion's share of the business because it has been capable of turning out a pretty good product at reasonable prices."

Charron predicts that as China wins a larger share of the market for commodity products, other countries, such as those of the Caribbean Basin Initiative region, will need to focus on fashion-type merchandise and offer quicker turns. And factories everywhere will be required to have product development capabilities, as well as technology and communication skills that mirror the sophisticated brands with which they'll do business.

For big and small players alike, Charron says technology can help power one of the driving objectives of the industry -- that of reducing process cycle time. "We must have real time connection to our customers and suppliers and ultimately we must have a supply chain which is essentially a glass pipeline, one in which the components are visible to all of the partners," says Charron.

While Liz Claiborne and hundreds of other companies have been busy searching for solutions in creating a glass pipeline, dozens of B2B providers have stepped onto the scene offering answers. Charron believes this profusion of vendors has only served to confuse the market. "As much as we believe there is something to be gained from Internet connectivity, we also know there could be a tremendous amount of confusion with all of the different approaches. We knew we had to step back and get order."

Charron says companies of Liz Claiborne's size are most likely to develop their own B2B resources in conjunction with their vendors and customers, while smaller producers will discover more universal applications. "There's no real value in some of the simplistic solutions being offered," concludes Charron. "The real value is in using the Internet as an integrator to bring all of us together in managing the process of value creation."

One can't sum up Paul Charron's insight in a space as short as this. But I, for one, am left wanting to hear more from this astute and well-respected industry player. On any given day, Charron is in a unique position to share a most meaningful dialogue. I know August 16 at Bobbin World will be such a day.

Susan S. Black is group publisher of Bobbin.

Editor's Note: To register for the TAC Breakfast, please visit www.bobbinworld.com or contact the American Apparel & Footwear Association at 800-520-AAMA.