2014年3月30日 星期日

TAL - Q&A Session

APEX

1. TAL relies heavily on the advanced information systems and the IS involve in most of the TAL’s operations to help TAL gains competitive advantages. However, does TAL have any contingency plan if the information systems go down in one day? Does TAL have any manual procedures to maintain normal operation if it really happens?

Supposing not to experience government-scale hacking, the most potential source of hacking is company-scale by competitors for sales data only. However, data sensitivity is really low and the information systems contain very limited personal information of customers.While the information systems going down, TAL have multiple IT back up plan for precaution. For instance, they are able to extract information and data 7 days ago.Just in case, excel spreadsheet is a last resort.


2. We would like to know if TAL is going to have the RFID tags on its products as multiple RFID tags can be read at the same time. This may help to save the time and cost in the inventory management. If RFID tags are used in the products, how will TAL solve the possible privacy matter that might be encountered?

In fact, RFID is a powerful technology tool for tracking but it still hassome limitations. The major limitations are: Physical limitations like reading through liquid or metals still exist. Accurate read rates on some items can be very low. In addition, the cost of RFID tag is expensive, especially for washable tolerance tag with about US$1 for each. It is too difficult to apply RFID on TAL, as its production process is divided into different parts for assembly. Moreover, the smart tag technology is yet to be perfected, Thus, TAL applies this on some small-scale testing now until the industry or technology to be mature enough. Todays, TAL think barcoding is enough for their internal process. TAL also proposes to reuse RFID for internal usage or transfer the cost to the price of final products if customer request to add RFID. However, it also have privacy problem as customers do not like being tracked.


Morning

3. What are the reasons that make TAL believe that the IT systems they have been adopting are the right tools for their company?
• ERP : Failure due to incompatibility; outsource to ERP solution
• Made to measure: higher operating cost, setup cost
• VMI : Risk of bearing the liability of stock out

Above all, TAL signs the agreement with partners to ensure the confidentiality of client information. TAL’s IT teams encrypt the information for transaction. There is no sensitive customer data involved in the system, only basic transaction data. The most important is that EDI already secured system


4. As an international company, how does TAL resolve the problem related to cultural differences or uncertainties?
• Political situation in Thailand
• Women in workplace (South Asia)

TAL recruitssome local experts to management level on each branch to achieve local management. TAL also sends the team from other countries to new countries in order to ensure the corporate culture is cohesive. For example, team from Thailand will be sent to Vietnam to collaborate with local teams.


Smarties

5. What is the outlook of apparel industry in the coming future?

TAL insists to be an innovator in supply chain services andprovide sophisticated quality for product. As large scale cooperation, TAL hopes to follow its own disciplines in the future. Although it is difficult not to have defects for large company, TAL endeavors to enhance product reliability. Besides, fashionable goods havevery short life cycle. TAL would like to spent time for understanding customers’ need and government strategyin order to look forward market trend. Last but not least, TAL focus on people, thus they provide proper and superior training to their staff and recruit the right team for TAL.


6. VMI & MTM system help to offer great services to customers. How does TAL turn these innovations to a sustainable competitive advantage in a long run in order to avoid competitors’ replication?

Even though TAL is the first corporation to offer the supply chain management service, TAL still keep researching and testing. TAL keeps on fulfilling customers’ needs. So far TAL hasinvented more than 30 innovative technologies. TAL provides staff training to make sure workers have multi-skills. TAL’s has first mover advantagein whole supply chain management service including good relationship with retailers, human resource, quality control, system and etc.TAL also continueon their R&D. All in all, it is impossible for later movers to duplicate all the things.For example, TAL’s MTM system improved from long toshort production line. In U.S, suits will be arrived 3weeks after receiving the order. It is hard for others to compete.

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