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The New Look contract marks the initial adoption of Teamcenter for retail applications. Teamcenter software provides a digital enterprise backbone, uniting product knowledge with process innovation to deliver business value. Under terms of the contract, which EDS PLM Solutions secured in conjunction with A.T. Kearney, EDS' management consulting subsidiary, New Look will use Teamcenter to share product design and production data in real time among more than 300 users, including up to 250 suppliers, throughout its global supply chain.
"To stay ahead in the highly competitive and cost sensitive fashion market, we needed to reduce the time it was taking us to get an idea from the design stage and into the stores through a complex supply chain, while at the same time containing or reducing our costs and improving our "time-to-profits," said Janet Biggs, director of trading for New Look. "With its successful track record in providing PLM solutions to the manufacturing industry, EDS was able to demonstrate to us that Teamcenter has the scalability, the breadth of applications and the flexibility required to provide us with the speed of communication and control of information we were looking for."
New Look is rolling out its new Teamcenter system within its buying team and supply chain. Users are able to send and receive design information as well as information on production schedules and critical events in an interactive environment, while the system manages the workflow from design sketch to manufactured item. As a result, the time needed to take a design from initial sketch to finished item -- excluding shipping times -- will be reduced by up to 30 percent.
"The prototype implementation that we ran proved our estimates in terms of time-savings and the potential business benefits," said Biggs. "We are confident that, following the full implementation of Teamcenter, we will be looking at an increase in sales of some 6 percent annually, which would bring an additional £13 million in profits. This will be as a direct result of our ability, through the use of Teamcenter, to reduce stock shortfalls and overruns."
Future New Look plans for the EDS Teamcenter PLM system include interfacing it to its RETEK merchandising system and using EDS' Teamcenter Community.com visual portal technology. This latter step would enable designs, in the form of 2D sketches, 3D images, photographs and videos, to be viewed simultaneously in different locations around the world, replacing the current use of fax and e-mail with Web-based, online conferences in order to further cut time-scales and reduce ambiguity caused by language difficulties during the development process."This contract highlights the suitability of our Teamcenter software for im proving collaboration and data management in a geographically dispersed environment," said John Hurley, president, UK operations, EDS PLM Solutions."It also reflects the value of EDS' ability to draw together the expertise that exists in its consulting and software development businesses and to work as a team with the client."
EDS PLM Solutions is aggressively pushing into new industries with Teamcenter playing the key role. Most recently, EDS on March 25 announced the new releases of its industry solutions built on Teamcenter, including enhanced versions of Teamcenter Aerospace and Defence, Teamcenter Automotive Supplier and Teamcenter High Tech Electronics, and the launch of a new industry solution, Teamcenter Consumer and Packaged Goods. Each of the four packaged industry solutions can be deployed quickly and cost effectively for fast time-to-value.
"New Look is a good example of the value EDS PLM Solutions can bring to the consumer industries and retail sector," said Kevin Eustace, vice president, Teamcenter Business Strategy and Marketing. "Teamcenter is already the de facto standard in manufacturing because it brings together the collective knowledge and insight of the enterprise in an open collaborative environment, so clients can make smarter decisions that lead to better and more cost effective results. That capability has been tailored to a variety of industries, including automotive, aerospace and defence, high tech electronics and consumer packaged goods, and is helping us deliver innovative solutions in emerging markets like retail that are only beginning to realize the benefits of PLM."
The contract, terms of which were not disclosed, was signed in the fourth quarter of 2002 and was included in the total for fourth quarter business signings ann ounced along with the company's annual results on February 6, 2003.
New Look is a retail fashion brand sold only in New Look stores in the UK and encompassing clothing, accessories and footwear. The first New Look store was open ed in Taunton, in the UK's west country, in 1969. Today, the company has some 500 stores throughout the UK, as well as a 51% stake in the French fashion chain, Mim. With an 8-9% share of the UK high street fashion market for females aged 9 to 45, New Look is one of the UK's fastest growing retailers.F inancial results for the year to April, 2002 show sales up 21.8% at £572 million, with profits up 88.6% at £57.7 million.
EDS, the leading global services company, provides strategy, implementation, business transformation and operational solutions for clients managing the business and technology complexities of the digital economy. EDS brings together the world’s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers’ trust and continuously seek improvement. EDS, with its management consulting subsidiary, A.T. Kearney, serves the world’s leading companies and governments in 60 countries. EDS reported revenues of $21.5 billion in 2002. The company’s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Teamcenter is a registered trademark of EDS or its subsidiaries in the United St ates and other countries. All other trademarks, registered trademarks or service marks belong to their respective holders.