Cloud Computing For Managing Apparel and Garment Supply Chains
Cloud Computing For Managing Apparel and Garment Supply Chains
Cloud Computing For Managing Apparel and Garment Supply Chains
International Journal of Computer Science Issues, Vol. 7, Issue 6, November 2010
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Cloud Computing for Managing Apparel and Garment Supply Chains - an
Empirical study of Implementation Frame Work
Prof. K. Ravindranath,
Department of Mechanical Engineering,
S.V. University College of Engineering,
SriVenkateswara niversity,Tirupati.517502.A.P.
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It is a style of computing where massively and electronic storage resources, as services
scalable IT-related capabilities are provided over the network.
“as a service” using Internet technologies to As a Platform as a Service (PaaS), includes
multiple customers. Cloud Computing, a key tools and environments to build and operate
differentiating element of a successful cloud applications and services;
information technology (IT) is its ability to As a Software as a Service (SaaS), enables
become a true, valuable, and economical on-demand use of software over the internet
contributor. It implies a service oriented and private networks; and
architecture, reduced information technology As a Business as a Service (BaaS), includes
overhead for the end-user, greater flexibility, application functionality coupled with physical
reduced total cost of ownership, on- demand and human resources required to perform a
services and many other things. broader set of business activities – typically a
major module of activity in a roader business
While there is no arguing about the process (e.g., a call center module, as part of
staying power of the cloud model and the the customer service process), or in some
benefits it can bring to any organization, cases the complete business process itself
mainstream adoption depends on several key (e.g., fully cloud-based supply chain
variables falling into alignment that will management).
provide users the reliability, desired outcomes, These models of computing are being
and levels of trust necessary to truly usher in a driven by the confluence of several changes in
“cloud revolution.” Until recently, early the business environment and IT landscape.
adopters of cloud computing in the public and From the business perspective, the trend
private sectors were the catalyst for helping towards consumer-driven innovation and
drive technological innovation and increased partnership ecosystems is accelerating
adoption of cloud-based strategies, moving us software development timeframes.
closer to this inevitable reality. Today, driven Simultaneously, from the IT perspective,
in large part by the financial crisis gripping the several trends focused on increasing the
global economy, more and more organizations efficiency of software distribution and
are turning toward cloud computing as a low- hardware utilization have converged to enable
cost means of delivering quick-time-to-market a cloud computing model, notably early
solutions for mission-critical operations and adoption of Software as a Service,
services. The benefits of cloud computing are proliferation of Hardware Virtualization, and
hard to dispute: the advent of Utility Computing.
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impact in this by reducing the footprint of IT stop investing in IT because IT is what helps
operations by taking out the upfront capital them gain and maintain a competitive
investments needed for hardware and software advantage. The Cloud offerings will help
licensing. It enables a Use what you Need and enterprises to continue to invest in IT without
Pay for what you Use cost model. This will having to take up big budget and long term IT
enable businesses to invest on innovative projects. Investment in IT changes from being
solutions that will help them address key a Capital Expenditure to Operating
customer challenges instead of worrying about Expenditure. Enterprises can become agile and
operational details. Even though IT budgets harness the power of Information Technology
are being slashed, enterprises cannot afford to to drive unprecedented customer value.
2. What technologies constitute cloud The textiles and clothing sectors can be seen
computing? as a supply chain consisting of a number of
discrete activities. Increasingly the supply
Cloud Computing is a paradigm that is chain from sourcing of raw materials via
composed several Strata of Services. These design and production to distribution and
include services like Infrastructure as a marketing is being organized as an integrated
Service, Storage as a Service, Platform as a production network where the production is
Service and Software as a Service. Different sliced into specialized activities and each
Cloud Providers have developed various activity is located where it can contribute the
access models to these services. The access to most to the value of the end product. When the
these Services are based on standard Internet location decision of each activity is being
Protocols like HTTP, SOAP, REST, XML and made, costs, quality, reliability of delivery,
the infrastructure is based on widely used access to quality inputs and transport and
technologies including Virtualization, hosting. transaction costs are important variables.
Cloud Computing is the maturation and
coming together of several prior computing Apparel and Garment manufacturing industry
concepts like Grid Computing, ASP, Server environment is characterized by:
Hosting, Utility Computing and Virtualization.
Entire demand for a given season/style
3. Supply chain of Apparel / Clothing/ order must be fulfilled by one lot
Garment sector
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Demand and pricing for seasonal flows for product returns, servicing,
and/or fashion items is uncertain and and recycling;
time-sensitive Information flows, which represent
Multi-tier, disaggregated suppliers, order transmission and order tracking,
due to specialization/cost and which coordinate the physical
structures/quota constraints, erode flows; and
loyalty and make supply chains fragile Financial flows, which represent
and dynamic credit terms, payment schedules, and
Moderately high set up or changeover consignment and title ownership
costs, so cost is lot size dependent arrangements.
Distributed, global suppliers; most
with little infrastructure These flows are supported by three pillars:
Plans based on rules of thumb for Processes, which embed the firm’s capabilities
production and transit lead times, in logistics, new product development, and
cumulative rollups/padding very
inaccurate—low confidence in on- knowledge management; Organizational
time delivery creates buy and sell side structures, which encompass a range of
date padding relationships from total vertical integration to
Delays in determining status and no networked companies as well as management
easy mechanism to notify downstream approaches, and performance measurement
suppliers or participants and reward schemes; and Enabling
Lack of documented accountability
technologies, which include both process and
and genealogy of communications
Externally imposed finite capacity, information technologies for every
e.g. time-dependent quotas, with no organization’s supply chain. However, in
visibility over other competitor’s service organizations there is usually no flow
shipments for same quota category of materials, but rather a flow of documents
Supply chain cycle time is 2-3X total containing the valuable information for
season cycle times and 6-9X profit decision making. Regardless of the type of
season cycle times for many styles.
organization, it is necessary to coordinate all
Consequently, consumer demand for
popular styles is frequently not the above flows among all parties involved in
satisfied and margin opportunities are the supply chain using appropriate and
lost adequate
4.1 Supply Chain Management; The supply chain in the textile and
clothing sector is illustrated by Figure 1. The
Supply chain management is collaborative dotted lines represent the flow of information,
process and project management to meet the while the solid lines represent the flow of
goods. The direction of the arrows indicates a
needs of the end customer efficiently and
demand-pull-driven system. The information
effectively. One of the key requirements of flow starts with the customer and forms the
successful management of supply chains is basis of what is being produced and when. It is
Collaboration. It should be noted, in general, also worth noticing that information flows
that there are three flows that occur in supply directly from the retailers to the textile plants
chains: in many cases. The textile sector produces for
the clothing sector and for household use. In
Material flows, which represent the former case there is direct communication
physical product flows from suppliers between retailers and textile mills when
to customers as well as the reverse decisions are made on patterns, colors and
material. In the second case textile mills often
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deliver household appliances directly to the Indian Apparel & Textile Industry is one of
retailers. The Indian Textile industry adds 14% the largest sources of foreign exchange flow
to the industrial production and 8% to the into the country with the apparel exports
GDP of India. It provides employment to 38 accounting for almost 21% of the total exports
million people and thus, is the second largest of the country.
employment provider after agriculture. The
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7. Adaption of Cloud Computing - Does this a reality - meaning, significant adoption in the
mean the end of IT departments in Apparel Enterprises even for critical Line of Business
and Garment Enterprises? applications. So we have developed a maturity
model for how Cloud Computing will be
Cloud Computing won’t make IT adoption in different phases. Today the
redundant; IT won’t be defined as the way we adoption has started with small and
know it today. Instead of the CIO's core focus departmental applications experimenting with
being the infrastructure and keeping it running, Cloud Services. In the next phase this will
Cloud will truly empower the CIO to focus on move to a Hybrid model, where the Cloud
Information management. IT departments will Services will integrate with Data Center
have to focus on developing solutions and applications or services for infrastructure
supporting business functions’ rapid use capabilities like Security. This will mature to
information to react and develop new integrating with other Data Center based
offerings, instead of managing servers and business applications. And in the final phase
infrastructure. Information Technologists of model, Line of Business applications will
Enterprises will need to build architecture migrate to the cloud tipping the adoption of
roadmaps and develop information strategy Cloud platforms. From a client perspective as
that IT can step up to handle. In essence, IT as well, the application models will mature from
we know will change to more business focused today where they are only Web based
than being infrastructure focused. applications to a combination of Web and rich
Cloud Computing will also allow CIOs to client applications and finally reaching the
focus on translating the business metrics end- state where Rich, Internet, Mobile or any other
to-end and map that to technology metrics - future applications types are all first class
meaning translating business goals into application models.
application and architecture goals. CIOs can
have revenue goals instead of cost 7.2 Is Cloud Computing Enterprise Ready?
management goals. ROI of the application
portfolio will become a key metric, and this is As highlighted in the Cloud Maturity
an area in which Cloud Computing will have a Model, Enterprises will start with small new
direct and pronounced impact. departmental level applications or web
applications that need to scale over time for
7.1 What is a Cloud Maturity Model? Cloud adoption. These will also include a class
of applications that are already external
Cloud Computing is in its infancy focused. The key requirements of these
today and it will take 5-10 years for this to be applications are abilities of rapid application
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development and the elastic nature of the B2B solutions had a positive impact on
Cloud. There are hurdles that need to be scaled companies’ performance, as is evident from a
for the successful adoption of Cloud at a level study which was published in early 2007.
where it can be declared mainstream. At the Although some companies were successful in
base level, it is winning the mindshare and implementing the B2B infrastructure
driving businesses to even experiment in this themselves, others found in-house
area. Issues like lack of Control, Security and implementation too difficult to manage and
Data Privacy, Service Level Agreements, principally burdensome for those trying to
Compliance, Data Loss and new application concentrate on their core competencies. To
model costs/adoption are some of the overcome this problem, some companies
requirements that need to be addressed. While started handing over portions of their noncore
it might seem that these are large and hairy IT capabilities to external service.
issues, Cloud Providers are working to address Advancement in IT and acceleration of
these in collaboration with the eco-system. globalization has created another problem for
And there are already some shining examples business communities: supporting inter-
of Cloud adoption within the Enterprise that operation of various data formats and
can help set the tone for the future. communication protocols used by different
trading partners. Business communities
understand the importance of standard
8. IT and Apparel/Garment Industry: communication protocols and unified data
format which not only automate and speed up
The value of information has been information transactions, but also enrich the
well established over the past 20 years. quality of information flow.
Businesses have long recognized that flawless
information flow and knowledge processing 9. Functional Framework for Cloud
streamline business objectives and execution Computing Adoption.
plans, thereby enhancing overall business
performance. As businesses entered the era of 9.1 Business Priorities
Information Technology (IT), they began to
utilize advanced technologies, such as ERP First of all, companies in India should
and CRM systems, to automate information prepare the business objectives and priorities
flow and business processes within the for adopting Cloud Computing for supply
company. While up until 5-10 years ago the
chain management. Majority of the companies
focus of information dissemination was
internal, such a strategy was not a panacea in are focusing on the priorities most effective
the growing global marketplace; globalization and useful aspects of supply chain parameters
has forced businesses to work closely with for attaining maximum benefit from the
suppliers and other business partners—many implementation of Cloud Computing for SCM.
of them located in other countries or The most common priorities are supply chain
continents—to serve customers around the collaboration to attain collaboration among the
world.
supply chain partners. Information sharing
Lee et al. (1997) observed that capabilities and prospective information
information across different stages of supply reliability is the next priority for some
chains tends to be distorted, and such companies where collaboration information is
distortion leads to poor inventory and vast and confidential. In addition to this Indian
production decisions, a phenomenon known as companies are aiming at cost reduction and
the bullwhip effect.3 Naturally, the need for saving in all aspects of operation of supply
more data transactions and frequent
technology upgrades evolved, and companies chains. And in the light of globalization forces
started using Business-to-Business (B2B) of emerging economy, Indian companies are
solutions to automate information exchange focusing at achieving greater customer
between trading partners and collaborators in satisfaction through faster deliveries.
their business networks. Adoption of such
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9.2 Cloud Computing Adaption Frame collections, and partly also to the short life
work: cycle of a typical garment. The entire sector is
affected by these complex interactions, which
The textiles and apparel sector has long been have repercussions on the strategies adopted
characterized by an elevated degree of by firms seeking to defend a competitive
complexity, which is an inevitable part of the position, as it can be difficult to create and
framework in which firms have to operate. maintain a sustainable competitive edge in an
This complexity can partly be traced to environment where, among other things, an
behavioral patterns influencing the final elevated number of production alternatives can
purchaser’s buying and consumption models, be found.
which cause considerable difficulty in
forecasting demand when defining apparel
Business priorities
Online Benefits
Collaboration Manage
Increased Customer
24X7 Support
Value
Information Reliability,
Sharing Scalability and Design Agile Deployment
Sustainability
Secure Storage an d
Pay as You Use Management
Lower Costs Implement
Lower Capital
expenditure
Evaluate
Faster
Deliveries
This framework is further complicated textile and apparel firms, most of which are
by the process of modernization of the fairly small, often bound by local aggregations
distribution network that has taken place in corresponding to the model of the industrial
recent years. With regard to industrial district. Also, as regards the structure of
organization, in fact, in the Indian context a distribution, independent and traditional
striking feature is the considerable number of retailing maintains the largest market share, in
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contrast to the typical model in the other important character for adaptability in
European countries, where one finds an emerging economic perspective.
increasing predominance of large distribution
chains and specialized chains. The frame work The principles, practices, and methods
suggested here is to be implemented with a required to raise employee awareness about
strategic approach through the following basic information security and train
modules viz., Selection, Manage, Design,
individuals with information security roles to
Implement and Evaluate.
increase their knowledge, skills, and abilities.
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9.2.4 Implement Assess and evaluate the Cloud
Computing security awareness and
Perform a needs assessment to training program for compliance with
determine risks and identify critical corporate policies, regulations, and
needs based on mission requirements laws (statutes), and measure program
Develop new—or identify existing— and employee performance against
improvement opportunities that are objectives
appropriate and timely Review Cloud Computing security
Communicate management’s awareness and training program
commitment, and the importance of materials and recommend
the Cloud Computing enablement and improvements
implementation to the workforce. Assess the awareness and training
Ensure that Cloud Computing systems program to ensure that it meets not
operations and maintenance enables only the organization’s stakeholder
day-to-day business functions needs, but that it is effective and
Collaborate with technical support, covers current Cloud Computing
incident management, and security issues and legal requirements
engineering teams to develop, Ensure that information security
implement, control, and manage new personnel are receiving the appropriate
Cloud Computing enabled SCM level and type of training
administration technologies Collect, analyze, and report
9.2.5 Evaluate performance measures.
10 Benefits
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