Technology Could Help with New Regulations - Nygård Expands into US
As apparel importers weed through the red tape created by heightened security issues, a broader global supply network and other factors, many are turning to automation to pick up the slack.
President Bush, recently touring a trucking center in Texas, said technology will be a key ingredient in maintaining security going forward as well as enhancing global trade. Indeed, the move toward automation is coming, though slowly. As companies are finding, they are only going to save so much in labor and the cost of goods, so they’re looking to becoming more efficient in operations.
Peter Nygård has also employed the latest in technology to quicken the logistics of getting product to the market. Nygård, a maker of high-end women’s fashions, is set to open a 300,000-square-foot shipping center in Gardena, California on Aug.15. The center, called Nygård 8U, has a holding capacity of 2 million units and features slick rail logistics able to provide flexibility of Garments On Hangers (GOH) and flat packs with real-time tracking of each process. The complex can scan over 300,000 garments on a weekly basis and guarantees to its customers a total accuracy in every carton, same-day shipping on repeat and CR product.
The company has invested more than $50 million in technology and has a goal of becoming a totally paperless operation. Peter Nygård said since upgrading his warehouse systems three years ago, he has been able to reduce costs from 46 cents per unit to 8 cents per unit. The efficiency allows for taking new steps such as stricter documentation and security, he said, adding that the new Gardena facility should reduce the cost to 4 cents per unit.