Saturday, November 24, 2007
VAR virtual manufacturing network
Does outsourcing create opportunities for Value-Added Resellers (VARs), retailers and independent contractors (ICs)? What outsourcing leaves behind is a vacant facility, unemployed workers, VARs, and. . .customers. Essential components and players toward startup of a manufacturing facility. Conventional wisdom dictates workers re-deploy to other employers or enter new industries. Resellers and retailers may opt to continue with the overseas manufacturer or work with domestic suppliers to fill their system and component requirements.
A wealth of resources
However, unconventional wisdom sees a wealth of resources outsourced companies leave behind. These resources consist of the Knowledge, Skills and Experience (KSE) workers acquire and accumulate over their years of employment. These resources are overlooked by those who once depended on that company, namely, workers and retailers. Something else that is much overlooked: The difference between a name-brand computer or server at any major electronics retailer and one at an independent VAR? Other than price and location: None. What if VARs and resellers leveraged their experience with suppliers where they themselves took on the role of supplier for these ICs? What if these ICs could extend a VARs sales, service and support market reach through a VAR manufacturing network?
VAR virtual manufacturing
That is, the individual who supports the assembly process of a system on the production floor as an employee builds the same, at home, as an IC with a wealth of KSE, an entreprenuer, for VARs and retailers. These individuals may include non and certified computer technicians, software and electrical engineers, hobbyists and others. It's their choice to make whether to focus on service (build) or support (installation) or both. Effectively, VARs become suppliers to their own manufacturing force, independent contractors, not employees. These ICs represent a VAR virtual manufacturing facility.
Compensation
An area of opportunity between ICs and VARs that is quite common with other areas involving ICs is compensation. It stems from a mutual tendency to mis-apply employer/employee compensation structures. Assuming, for the moment, a fair compensation of ICs by VARs. It's been said individuals with vast KSE resources would not be content or satisfied with nothing less than a hefty fee for their services. Right. So, don't go there. There are, on the other hand, more than a few people who would not pass on the opportunity to create a constant source of income as ICs, at their own pace, in their own home.
Networks
A vital difference between actual versus virtual manufacturing is the virtual can be expanded endlessly through networks. Networks may start locally, but they can expand regionally, state and nationwide. They generate income for network members, both, Independent Contractors and VARs. The opportunity exists for VARs and mom & pop businesses to network the wealth of KSE resources in the tech community left behind by the corporate practice of outsourcing.
Thursday, November 22, 2007
Making a cool dress hot
Whoa, there! Rein it in, ladies and gentlemen। That is, I like the sight of a dress. . . with a woman in it.
The overall comment I hear out there is that women like them, too. Typically, those comments revolve in differing order around style, color, size, fabric, fit and price. The presence of all these in a dress, so as to ensure customer satisfaction, is nigh to implossible. Retailers buy from suppliers who buy from manufacturers. It's about quantity and expediency with price being the modifier. On one hand, large quantity purchases versus small quantity purchases on the other, but price is the determining factor and how well its affect is managed around the sale margin of profit. Quality issues are turned over to the expertise of alterations boutique owners.
So, how does an independent apparel retailer take a cool dress and make it hot?
A customer shops your boutique for a dress while her friend tags along। It's a great day! Your customer finds the only (or last?) "cool" dress on the rack that's "just right", she says, for her. Her friend lavishes her with joyful compliments.
Now, she decides she would really love a dress just like that, but she has just seen the only (the last?) one taken by her friend.
"If I could only change the color from green to red that would be great" she cries aloud.
"I can do that" you tell her.
You note her measurements, color, fabric and quote her a price।
No need to bore your customer with what she does not know। Namely, you have the capability for such delivery because of your local, direct model network of dressmakers। There's no inventory to stockpile. There's no supplier stockpiling large amounts of your cash in his bank account, also.
"You may pick up your hot dress in three days" you say to your excited customer.
You either post the order on the web for your local network to access or a network contractor picks up the order at your boutique later that day।
Happy Holidays!
Thursday, November 15, 2007
Brainstorming facility in Texas
What if "manufacturers", or "contractors", that is, the individual(s) who bring workers together, revised the way in which they obtain their compensation?
Manufacturers commonly rely on big ticket orders from retailers for mass production of apparel items. When the volume, or specialization, is beyond their capability
they turn to contractors, those once-upon-time countless, tiny "workshops" whose lifeline attached directly to the manufacturer. Both, take their lion's share of
of money received for goods made then dole out meager wages to those who did most of the work.
Yes, that is the traditional and conventional way of business and one I reject. If manufacturers' and contractors' compensation expectations included their workers
first, the workers themselves would be their best agents to attract an expanding workforce. Hence, manufacturers and contractors could service so many more
clients.
Alas, the above is not a good fit in the present conventional apparel manufacturing model in Texas or anywhere.
What if retailers looked more closely at their advertising dollar to sales ratio?
Retailers spend huge bucks on advertising. Even independent retailers' smaller advertising costs weigh heavily on their accounts ledger. The Internet is here. Where are you? If, as my friend says, and I have written the same, buyers are shopping for "Made in USA" or "Made in Texas" they can find it readily without you spending precious dollars on advertising.
Akeen to the Internet is word-of-mouth. That, folks, is the original social internet even before MySpace. IF, you could sell less, but without the cost of advertising, know you have an expanding awareness of your business driven for you by your customers and end up with higher margins for yourself, which would you prefer?
Alas, the above is not a good fit in the conventional apparel retailing model in Texas or anywhere.
What if an interested party were to buy up old factories and refurbish them with modern technology and well-paid workers?
I do not know this is being done. I do know the jury verdict is pending on those old factories which went into full refurbishing mode even while laying-off excess workers.
Those were workers not necessary in the operation of the new, modernized, technologically, reborn factory. I have not checked how many of those continue, still. I do know a look at Texas state job market projections as near as 2008 and 20 years down the road show no signs of apparel life in the future. No, do not be alarmed. This is opportunity!
Even if the wonders of a modernized factory were to result in considerable worker wage increases one should bear in mind the number of those fortunate workers
would be a far cry from those employed in that same factory, formerly. Clearly, I am neither an economist nor a venture capitalist, but I see a very steep climb
for the investor's dollar before he could expect a return and a good one at that in this kind of deal.
Alas, the above is not a good fit in the conventional manufacturing model in Texas or anywhere.
I do not take credit for the phrase, but I think the consumer turned-up-nose attitude, "One size fits none" to ready-to-wear is manufacturing' s karma come back on them.
The Independent Contractor Network model is driven by the expectations members place on themselves. The costs of apparel production and retail are intimately
connected between member contractors and retailers. The vision is one of esteem and value, not just of business, but of the business of people. The benefits follow.
Sunday, November 04, 2007
Apparel: Uncompromising quality?
Ford is not the only one with that goal. Local independent apparel retailer owners want to hold a tight-rein on uncompromising quality. But, how accurate is the reality, really?
Retailers rely on manufacturers and suppliers for merchandise to stock their boutique inventory. Typically, this results in retailers stockpiling more inventory than they care. The hope is for a complete sale of all inventory in right size, fit, color, fabric and style to satisfied customers.
So, if quality is defined as the complete presence of size, fit, color, fabric and style are these elements within the control of the local retailer?
I do not wish to disparage manufacturers, but can local retailers fare better in their control of quality with local production?
I have often posed the question:
What's the difference between an upscale dress on the rack at Neiman-
Marcus or Nordstroms and the local independent apparel retailer?
Except for the location and price, none. The same individual who
assembled the Neiman-Marcus dress on the manufacturing floor assembles
the same dress as an at-home independent contractor/entrepreneur for the
local retailer.
Who makes up such a local production core? You can count displaced, experienced apparel production workers among the over 40 million the Home Sewing Association
who sew in their homes. The HSA cannot say whether it is for profit or leisure.
How many of those 40 million people do you think live in your city?
How many do you suppose would enter into a profitable at-home enterprise that allows them to utilize their resources and be creative?
Do you suppose there may just be the number of quality contractors you need for your local dress production?
Do you operate with a 7 to 14 day customer fulfillment window because that's what it takes for your supplier to fill and ship your order?
How much smaller a window would your local contractor enable for your business delivery to your customers?
TSR, Inc. is committed to the development of Independent Contractor Networks together with Independent Apparel Retailers. IC-Networks are local, regional,
state and nationwide. They are more than a social club. They consist of a membership with a wide variety of resources, that is, Knowledge, Skills and Experience
in apparel. They generate income for all members.
Tuesday, October 30, 2007
A tale of two retailers
Scenario One
You close shop for the day.
1 You travel to Dallas.
2 You spend the day shopping supplier for the right item and price for your boutique.
3 Among your purchases: one dress at $50 to resell at $120, a 140% markup to yield a $90 profit.
4 Once back at your boutique you drive sales to recover your investment with a a profit.
If number 3 above before you count on that $90 profit take into account a day's closed shop, expenses (fuel and food, plus the $50 out-of-pocket) and number of days the dress is on the rack before it sells.
Scenario Two
You determine to have your dresses made locally:
1 You create your own dress pattern, or
2 You retain a contract service provider (independent contractor) to create your pattern you, or
3 You deliver the dress (whether from a thrift shop, mom's attic or discount store) to a skilled pattern-maker or seamstress who disassembles the dress and creates a pattern with whatever modifications you wish to include.
4 You make a choice of two or three different fabrics.
Leverage your tax-free, resell and discount purchase power on fabric buys. Different fabric choices allow for price choice. Additionally, because the finer the fabric the more challenging to work with you turn certain fabric jobs over to those individuals you know can handle it. You, and your other asemblers, can do quite well with the other fabric choices, still.
5 You retain a contract service provider (or do it yourself) to cut dresses segments for at-home assemblers.
6 At-home contractors assemble your dresses as you receive orders.
If you choose 2 or 3 above you compensate the individual upfront or agree to share sales profit percentage.
If you choose number 5 and compensate the assembler between $30 and $50. You may ask, "What have I saved by not shopping a supplier?"
The difference is you are not stockpliling inventory and you have a quick return on your investment because you have a customer need to fulfill.
You are able to offer the same supplier's dress for considerably less with a considerable profit margin in your accounts ledger, still.
You may also say, "A highly skilled, experienced dressmaker is not going to make a dress for that kind of money." You're right. So, don't go there. There are other highly skilled, experienced individuals who will assemble, in the comfort of their home, at their pace for that kind of money, not minimum wage or cash employees.
If number 6 consider your own local, regional, state and nationwide network of independent contractors. They are not your employees. It is more than a social "dressmakers club", but a source of income for the individual contractors as well as yourself, a pool in ever increasing numbers of others with the Knowledge, Skills and Experience anyone in the network may need to meet their contract expectations, and, yes, the priceless opportunity of an enviroment to interact with your peers.
We know where America's manufacturers have gone and they continue to turn to in the face of labor costs and operating expenses. Where do you go? Who do you turn to that will ensure not only that you survive, but thrive because you acted wisely together with others?
Friday, October 26, 2007
Corporate Lessons for Independents
http://www.associatedcontent.com/user/122866/gilbert_torres.html
Regards,
WM
Saturday, October 20, 2007
Army Store Closing
The Round Rock Army Store (@ 2001 N Mays St & Texas Ave) is closing.
Come checkout the wide variety of military apparel and related items.
Discounts at register.
Carmen, store owner, wants to explore new avenues and areas in apparel.
Carmen
1100 Peachtree Cove Circle
Round Rock, TX 78681
(512) 246-7033 store
(512) 748-9560 cell
Carmen will retain the store number after closing the Army Store.
Tuesday, October 09, 2007
Devuskha apparel - - dresses
It is their apparel line. It's dresses.
It's about a need and an opportunity.
Got KSE?
Give Jenny a call and ask her about "cut and sew".
512.507.9176
Jennybean_13@yahoo.com
All arrangements and agreements regarding service and compensation are between you and Jenny and partner.
WM
Tuesday, September 18, 2007
Whitebox, whitebook markets
Who says there's no room or money in the white-box market for private enterprise? Only the naysayers (oh, I'm sure there's more) who read my message I posted on Dellideastorm a while back.
Dell expects the same low cost components which enhanced the company's 2nd quarter profits will hurt its profitability with slow costs declines in the second half of the year. It's not like Dell to sit still and be overrun or to let opportunity pass. The recent opportune acquisition of Silverback puts Dell in the role of virtual IT department for small business. So, why wait, given low-cost component prices? The opportune moment for Dell to take on the role of white-box component supplier for private enterprises is ripe for the taking.
Mere months after Dell abandoned its 2 year foray into the white-box its own team recommended the following in pages 47:
Since white boxes increasingly use the same components as brand computers, their functionality differs little from those sold by the Tier 1 and 2 vendors (Graham-Hackett, 2005). The recent trend towards consolidation and the decreases in component prices has led to the intense competitive pricing now facing the industry. Given the long-term downtrend in PC pricing, vendors will need to continue to cut costs from their operations. The growing ‘white box’ market will require the Tier 1 and Tier 2 vendors to maintain competitive prices. Companies with more favorable cost structures increase their chance of profitability.
http://www.google.com/search?hl=en&q=Strategic+analyses+and+recommendations+for+dell
And page 50
Race and age is also a factor in computer usage, according to the U.S. Census Bureaureport. Blacks and Hispanics have the lowest rates of computers at home of any U.S. racial group—providing a market opportunity for computer hardware companies which target these groups. Further, people 65 and older had the lowest rates of computer (28%) and internet (25%) use of all age groups. As the baby boomers age, this demographic is likely to increase its use of both technologies, partially due to exposure at younger ages. However, the current 65 and older population is also a market opportunity for computer hardware companies.
(Note: Dell, like HP and Acer [who just acquired Gateway] is Tier 1.)
Check out what Equus is doing with whitebooks thanks to Intel's push for standardization. I have urged Dell do much the same as Equus _ for resellers_ by stepping into the role of components supplier to white-box builders.
http://www.crn.com/white-box/201807253;jsessionid=MXTCSQHG3HH1KQSNDLPCKH0CJUNN2JVN
Bottom line is you don't have to wait for Dell, HP or any of the major manufacturer. Contrary to common perception it's the hundreds or thousands of mom&pop, resellers and solution providers who have the lion's share of the white-box market, not the mega manufacturers. Next best thing to you going it alone as a white-box custom builder, whether desktops, notebooks, (or servers) is going in with and building your own Independent Contractor Network.
Regards,
GT
Monday, September 17, 2007
A real poetic piece of work
Letters are to words what words are to poetry what poetry is to God.
Little things make big things. Big things make little things.
What you do is not important, but it is important that you do it.
It is written, "You are the workmanship of God created for good works". That big word, "workmanship" is a translation of a small greek word which is variously translated in english as "poem", "poet", "poetry", "poetic". ("works" is "energy")
It's fair to say poetry, whether or not we are versed in it or is not for us, is a putting together of many letters to create a few words which can say so much. No less, the spinner who spins cotton to make yarn to create a piece of cloth.
Certainly, no less did God spin in his hands to create a piece of work, a "poem" when he created man. No wonder, then, that we discover such great joy with the work, the creation, the poem, the tapestry woven by our hands. It's not that it's big or small that makes it important. What is important is that you do it, because thereby you reflect the image and glory of our maker.
Truly, we are a real poetic piece of work.
Be of good cheer.

