Gerber PLM White Paper

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    www.gerbertechnology.com

    GERBER TECHNOLOGY INSIGHT

    A Process for Successful Selection,Planning and Implementation

    of a PLM Solution

    A Process for Successful Selection,Planning and Implementation

    of a PLM Solution

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    Table of Contents

    Despite the current economic malaise ........................................................................................................2Phase One: Discover ..................................................................................................................................3Human Resource Considerations .............................................................................................................3Cross-Functional Project Team .................................................................................................................3Determine Business Objectives and Requirements; Set Realistic Expectations ......................................4Process Requirements ................................................................................................................................4Functional Requirements ...........................................................................................................................5

    User Requirements .....................................................................................................................................5

    Document Requirements .......................................................................................................................5

    Technical Requirements .............................................................................................................................5Training and Implementation Requirements ............................................................................................6Budgets: The Chicken and the Egg .............................................................................................................6Phase Two: Design ....................................................................................................................................7Phase Three: Develop ...............................................................................................................................8

    Easy Does It .............................................................................................................................................9

    Phase Four: Deploy .................................................................................................................................9

    Roll Out Functionality .............................................................................................................................9

    Phase Five: Drive and Extend ..................................................................................................................9

    Implementation Evaluation and Analysis ..............................................................................................9

    Sustaining the Solution and Preparing for the Next Initiative ............................................................10

    Summary ...............................................................................................................................................10The Human Factor ................................................................................................................................10Keep it Simple .......................................................................................................................................10Look for Best Practices and Rely on External Professional Services .....................................................11

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    nent, which connects and enables the collaboration of

    all business stakeholders functional, procedural and

    technical.

    All elements from process needs, technical needs,

    equipment needs and even corporate culture and

    change management are key elements to success-

    ful implementation. Each must be considered as an

    integral part of all others.

    Product lifecycle managements three primary bene-

    fits, according to companies participating, are faster

    time to market, lower product costs and improved

    design.

    -AMR Research

    Gerber Technology recommends companies follow a

    five-phased approach to identify, implement and sus-

    tain a successful PLM solution. These phases are:

    - Discover

    - Design

    - Develop

    - Deploy

    - Drive and extend

    As it relates to the time and resources required during

    each of these phases, its important to note that there

    is no standard. However, some retail and apparel

    companies that already have adopted the discipline of

    lean manufacturing and a culture of continuous

    improvement may be able to leverage this to expedite

    the Discovery and Design phases. For others forwhom this realm of business process is a newer con-

    cept, it may take a bit longer upfront, but certainly will

    pay off in a successful implementation, and the find-

    ings within the phases can be applied across other

    disciplines within the company for continuous

    improvement and enhanced efficiencies.

    Despite the current economic

    malaise, apparel and footwear

    manufacturers and retailers still

    see product innovation as a

    strategic investment.

    - Jeffrey Hojlo and Janet Suleski,

    AMR Research

    Even though the apparel and retail industry continues to

    contract amidst current economic and geopolitical condi-

    tions, planned investments in Product Lifecycle

    Management (PLM) systems remain strong.

    Now more than ever, companies are embracing the ben-

    efits that a PLM system can provide across the business

    enterprise. Designers, manufacturers and retailers rec-

    ognize that some type of PLM solution will protect and

    enhance their competitiveness by enabling them to

    become more efficient and more nimble.

    However, identifying which solution is best and then how

    to implement it are critical the devil is in the detail.

    Successful implementation is the result of many factors

    working interdependently.

    The secret to success is for the companys different dis-

    ciplines to work upfront collectively, yet precisely, to

    define requirements based on expectations. What is the

    PLM solution expected to provide in terms of efficiencies

    as well as functionalities? Once a solution is identified,

    careful and methodical implementation can make or

    break the success of even the best solution. Leveragingan industry expert from outside the company helps to

    efficiently guide and mediate the process. As it relates to

    PLM systems and the processes to select and imple-

    ment them, one size does not fit all. Moreover, the PLM

    software is not the solution in and of itself. The PLM

    system is the common thread. It is the central compo-

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    Companies that have adopted the culture of continuous

    improvement are well-positioned to take action. For

    those companies, there is less of a learning curve as it

    relates to PLM selection and implementation. Like any

    new undertaking, however, it can be easy to get wrapped

    up in the initial excitement and ascribe unreasonable

    expectations as it relates to time, effort and outcomes.

    Additionally, management can exert pressure to rapidly

    realize ROI. Expecting radical change in short order

    runs the risk of establishing unrealistic expectations in

    which case any improvements realized will be deemed

    insufficient.

    Phase One:Discover

    This first phase is where all of the groundwork is laid to

    ensure success during subsequent phases and

    beyond. The outcomes of the Discover phase will be

    leveraged throughout the process to ensure the pro-

    gram and its deliverables stay on track.

    Human Resource Considerations:

    Senior Level Program Champions

    Be sure that a program sponsor (champion) remains

    involved throughout the (PLM) implementation.

    - Mark Harrop, Director, Product Development

    Partnership, Limited.

    Successful selection and implementation of any

    Product Lifecycle Management solution requires buy-in

    and support from all levels of the company. One way to

    ensure success is to have a company executive as

    program champion. This enables top-down program

    visibility to ensure that all functional areas are being

    considered accordingly, and can help to drive the

    process through inevitable stumbling blocks.

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    Cross-Functional Project Team

    A cross-functional team is important to success. It

    ensures that various stakeholders provide input and

    feedback to needs requirements and facilitates pro-

    gram buy-in. It also works to avoid the risk of tripping

    over blind spots. These are roadblocks/hindrances

    that may be significant such as computer hardware

    needs or lacking interoperability of systems, or simply

    groups of people who may struggle with an us versus

    them mentality. Leverage the cross-functional team

    to ensure transparency of business processes, effi-

    ciencies, best practices and areas for improvement.

    Identify all functional areas of the company which will

    either actively use or be affected by a new system and

    what their business requirements are. These areas

    include:

    - Planners

    - Designers & Technical Designers

    - Merchandisers

    - Information Technology

    - Business Management/Administration/Finance/

    Accounting- Sourcing & Production

    - Vendors/Partners

    Once stakeholders are identified, then roles and

    responsibilities can be defined and assigned.

    Determine Business Objectives and

    Requirements; Set Realistic Expectations

    Although lofty sounding, its critical to define and

    agree on the business objectives. Well-articulated

    business objectives will answer questions such as:

    What will a PLM system achieve for the company?

    How do we measure success? How long will this

    take? How much of peoples time and financial

    resources can we realistically dedicate to a program?

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    Will there be a team dedicated full-time to selecting

    and implementing a new system, or will these team

    members also be required to fulfill some or all of their

    current deliverables? Which responsibilities will take

    priority? Also important is to look into the longer term.

    Identifying future needs will ensure that a solution or

    system will have scalability. It can be designed and

    implemented with the necessary infrastructure that can

    accommodate anticipated needs.

    Some goals to consider include:

    - Revenue growth

    - Geographic expansion

    - Product line expansion

    - Changes in channels to market (ex. Adding e-busi-

    ness or adding brick-and-mortar)

    - Technological or IT upgrades

    - Anticipated industry advances (ex. Improved or more

    accessible point-of-sale data capture)

    Defining and communicating expectations at the outset

    can be critical to successful selection and implementa-

    tion. Once expectations are defined, its time to build a

    project team.

    Process Requirements

    In the discipline of continuous improvement, waste is

    defined as a process or operation that consumes

    resources but does not create value. (Lean Horizons,

    LLC)

    When defining process requirements, it can be helpfulto follow the lean manufacturing tools such as process

    and value stream mapping. Identifying key processes,

    key process participants, critical paths and interdepen-

    dencies will help to identify critical functional needs.

    In some cases, companies may not have a document-

    ed or consistent process for every activity. Is there a

    process? If so, is it adding value? Identifying the gaps

    and understanding what does or does not make sense

    to implement is important.

    Although it is important to document and standardize

    key processes, it may not make sense to automate

    every process. Determining that should be easy once

    requirements of the PLM solution to be implemented

    are well-defined.

    Key questions to ask when mapping out process

    requirements include:

    - Where are the integration points? At what point does

    one participant or function end its task and pass it on

    to the next?

    - Where are the bottlenecks?

    - Where are mistakes being made?

    - Where are there duplications of efforts or opportuni-

    ties to streamline?

    - Are there tasks that are more flexible than others,

    whether it be within the context of time constraints,

    process constraints or task owner?

    - What is the critical path? Are there some tasks that

    can be conducted in parallel, while others must wait

    for another task to be completed?

    This last point is particularly poignant for the apparel

    industry. More so than in many other manufacturing

    industries, design and development often are happen-

    ing simultaneously, with design changes continuing

    right through to production. Rapid and efficient bidirec-

    tional flow of information is critical.

    Once key processes have been mapped and improve-

    ment opportunities identified, its important to prioritize.

    What improvements will be the easiest to implement?

    Which will offer the most impact?

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    Functional Requirements

    Once business requirements have been well defined,

    the team can use them as a basis to get to a level of

    greater specificity and flesh out the functional require-

    ments.

    Examples of functional requirements include:

    - Data sharing

    - Single entry of reusable data

    - Reporting capabilities

    - Eliminating bottlenecks

    Looking ahead to future needs is also critical to long-

    term success. PLM solutions by nature, no matter how

    large or small, pose long-term business implications.

    This is yet another area where a program champion can

    provide insight to longer-term requirements to which

    team members may not be privy.

    User Requirements

    This is where a team comprised of stakeholders from

    across the business can be leveraged well. Each

    member should work with his or her department to

    develop and prioritize a list of requirements. When the

    PLM solutions team convenes, each member is able to

    represent what his/her functional needs are. This

    uncovers the many overlaps, which can rapidly identify

    the big hitters improvements that will add great

    value across the company yet are relatively easy to

    deploy. It also can identify conflicting priorities. This is

    where a senior level program champion may need to

    intervene to help prioritize accordingly.

    Document Requirements

    With the high level goals and the functional require-

    ments identified, the project team can proceed again

    to the next level of specificity. What types of docu-

    ments will the PLM system manage and/or process?

    How many documents or even how many styles will

    be managed? Some examples might include:

    - Merchandise plans

    - Design Plans/Storyboards

    - Tech packs

    - Reports

    - Purchase orders

    - Vendor scorecards

    - Customs documents

    Will existing documents or data be imported to the

    new system? What metadata (database fields) will be

    tracked with each type of document? Is there a need

    to access historical documents?

    Technical Requirements

    Understanding technical requirements cannot be

    understated. A great process and a great solution can

    be inhibited if the systems architecture or hardware

    capabilities cannot accommodate the solutions

    requirements for data storage, volume or speed. This

    would be analogous to the case of the major universi-

    ty, which built a beautiful library, but did not calculate

    the structural requirements to accommodate the

    weight of the books. This was a well-publicized snafu

    that cost millions of dollars and years to rectify.

    Examples of hardware requirements to consider

    include:

    - Servers

    - Network/infrastructure: Both internal and external.Will the company be working with suppliers or partners

    in countries that may not have advanced IT infrastruc-

    ture available to them?

    - Internet speed and bandwidth

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    Software requirements to consider include:

    - Image management tools

    - Workflow

    - Supply chain

    - Data integration applications and requirements

    - Sufficient database licenses

    How will the system leverage partner/supplier collabo-

    ration? Which legacy systems and/or data does the

    company want to preserve? With what other systems

    will the solution need to communicate?

    Training & Implementation Requirements

    Other key elements to ensure success during the go-

    live event and beyond are to determine and articulate

    training and implementation requirements. Its impor-

    tant to consider what approach will work best for

    training users on the system and to keep in mind that

    it does not end after user acceptance training. As

    new employees join the company, as new enhance-

    ments and system upgrades are added and as new

    vendors come on board, ongoing training is important

    to maintain an effective PLM solution.

    Each approach presents benefits and drawbacks, each

    with different requirements. Often, the best implemen-

    tations are comprised of a combination of approaches.

    These approaches include:

    - Train-the-trainer, where internal power

    users are empowered to train other users

    - Internal training administered by the IT department

    - External consultants

    Comprehensive implementation requirements must

    include specific actions and timetables to map out the

    rollout process. Examples of requirements to define

    include:

    - Determining test environments

    - Defining the number and duration of dry runs

    - Clearly defining the disaster recovery procedures

    Budgets: The Chicken and the Egg

    Setting and managing expectations for a PLM solution

    and its implementation also requires careful considera-

    tion of all of the costs associated with it. Beyond the

    purchase of the software, there are other elements,

    which can be both time consuming and expensive.

    Anticipating and planning for these can help to avoid

    the gotchas which put projects over budget and

    behind schedule. These include:

    Consulting costs:

    - Business

    - Systems

    - Project management

    - Administrative services

    Implementation and Training costs:

    - Administration

    - End-user

    Training manuals and/or sessions:

    - Initial set-up and configuration

    - Customization- Integration

    Ongoing support & software maintenance:

    - Guaranteed access to support

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    Technology infrastructure:

    - Back-end client/server database

    - Operating system upgrades

    - Image management tool upgrades

    - Bandwidth

    - Storage

    - Security

    Phase Two:Design

    The design phase is akin to developing blueprints orpatterns and tech packs for a garment. It is the process

    of taking the stakeholder input from the discover phase

    and developing a comprehensive, specific project plan

    to map out how to meet the needs that were defined. In

    short, its a project plan.

    Once the business and its teams have defined goals,

    expectations, budget, timelines and the requirements,

    the next step is to design the solution. In the Design

    phase, a comprehensive and specific project plan is

    developed which maps out how to achieve the required

    results.

    Having all of the needs well-defined upfront facilitates

    clear communication of the requirements of a systems

    design and functionality. It also enables a project to be

    mapped out with specific tasks and timelines.

    During the Design phase, the specific processes and

    day-to-day actions across functions are mapped out to

    provide a comprehensive view of the current state.

    From this point, it is important to identify specific exam-

    ples of waste or gaps in the process, which must be

    eliminated or mitigated.

    These include:

    - Wasted effort

    - Mistakes

    - Waiting time: Where are the bottlenecks?

    - Redundancy and duplication of efforts: Two different

    groups entering the same data, or the same group

    required to enter data in more than one location

    - Inefficiencies in cycle time

    - Global capabilities/Scalability: Does the system need

    to accommodate anticipated future global expansion?

    Does the system need to accommodate different lan-

    guages or different types of operating systems?

    The project plan evolves as processes are mapped and

    improvements identified. Flow charts clearly identify

    and assign roles and tasks based on workflow. What is

    the critical path? Where are the process dependencies

    and where is there flexibility? Are there opportunities to

    streamline by reallocating process steps to enable par-

    allel paths?

    At this point, it is helpful to re-examine specific process

    owners, roles and responsibilities and renegotiate them

    if needed. It is common for redundancies and inefficien-

    cies to be identified. It is important that the team com-

    municate single points of ownership and accountability.

    As the process map evolves, key milestones are identi-

    fied. Clearly defined milestones are keystones to the

    design of the PLM solution. A well-designed solution

    will incorporate system architecture and workflow

    requirements that will enable efficiency throughout the

    process and across stakeholders regardless of func-tion or physical location around the world. Exception

    management and dashboard visibility are becoming

    increasingly critical.

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    When selecting and designing a solution, seek to pre-

    serve existing investments wherever possible.

    Unnecessarily starting from scratch can be expen-

    sive, time-consuming and difficult to implement. In

    addition to the hardware, software and process ele-

    ments of radical change, the human element cannot

    be underestimated. Its more likely that stakeholders

    will remain engaged and effectively embrace solu-

    tions that build upon systems and processes to which

    they already are accustomed.

    At the culmination of the Design phase, the team will be

    armed with a well-defined roadmap for the rest of the

    program, including specific project plans and sched-ules. At this time, system architecture and design

    including initial system configuration requirements

    will be defined. Other key items to define in order to

    ensure that a fluid and scalable PLM system is imple-

    mented include:

    - Quotation management

    - Tech pack management

    - Artwork management

    - Sample tracking

    - Line management

    - Hierarchy of data and tables

    Phase Three:Develop

    This stage is the bridge between planning and imple-

    mentation. During this period of the process, the PLM

    application and its components are developed, built,

    configured and installed based on the requirements

    defined in the Design phase.

    This includes elements such as:

    - Configuring the solution to meet the process require-

    ments

    - Configuring and populating data tables such as labor

    and operation codes, contacts, partners, points-of-

    measure and raw materials

    - Configuring tracking and reporting capabilities

    - Setting up user groups and defining user roles and

    responsibilities

    - Setting up milestones and workflow process and

    establishing templates to enable tracking

    - Integrating to external systems including enterprise

    resource planning (ERP)

    To provide consistency and ensure that the PLM imple-

    mentation moves smoothly from concept to delivery, its

    important that the company and its vendor continue an

    ongoing partnership and dialogue. The company

    should expect ongoing communication and collabora-

    tion with technical experts as well as process experts

    and those who are well versed in the companys spe-

    cific processes, requirements and expectations.

    It is important to leverage the knowledge of best prac-

    tices gained from experience with other industry-spe-

    cific businesses. Anyone in the fashion industry

    knows that it presents its own set of unique challenges

    and opportunities. Just like a design must move swift-

    ly and efficiently from concept through delivery, so too

    must a PLM solution.

    Easy Does It

    During the system installation, the out-of-the-box

    functionality is configured and the data is populated.

    Just as it is important to leverage a companys existing

    best practices to mitigate radical change, it is also use-

    ful to leverage the configurable capabilities of a system

    whenever possible.

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    By configuring capabilities versus customizing

    them, the company will be more easily able to adapt

    the solution as processes evolve or the companys

    needs evolve. Especially in the fashion industry,

    needs and requirements change as often as the

    fickle desires of the trend-driven consumers change.

    Often times, changing configurations is something the

    company can do itself whereas customization can be

    both time-consuming and expensive should the vendor

    be required to reevaluate and make customized

    changes.

    Phase Four:Deploy

    The Deployment phase tests and validates the applica-

    tion with a pilot group. During this phase, not only are

    the systems configuration, integration and functionality

    validated, but so too is the plan design. This is to ensure

    that the solution is accomplishing the goals laid out in

    the discovery section. At this point, end users are

    trained to ensure that they understand their roles and

    how to perform them.

    It is important in this phase to ensure that change man-

    agement plans are in place. In the event that some-

    thing needs to be modified, there must be a clearly

    defined process to quickly develop, approve and imple-

    ment it.

    Roll Out Functionality

    Just as the solution itself may best be separated into a

    modular approach, so too becomes the implementation

    of the solution no matter how many or how few mod-

    ules/functionalities are involved.

    By taking a phased approach and using a pilot group to

    roll out the solutions functionalities, a company is able

    to validate and test the new system in a more manage-

    able environment. This reduces the resources required

    to monitor implementation and keep it on track. It also

    enables teams to more readily identify and rectify any

    potential glitches. Measuring success is faster and eas-

    ier, and affords the pilot team the time to acclimate to a

    new system and to internalize new processes.

    Success breeds success and helps to build momen-

    tum. Realizing benefit from a well-defined and con-

    tained group helps to prove out the system and works

    to develop early adopters and system evangelists.

    Participants with functional knowledge and a positive

    experience will spread their enthusiasm and be eager

    to help and share that knowledge as the implementa-

    tion advances to the next stages.

    Phase Five:Drive and Extend

    At this phase, the focus is twofold to accommodate

    both short- and long-term goals. First is to complete the

    deployment to all sites and portals of the system as val-

    idated and/or modified. The second component

    ensures that a continuous improvement mindset is

    maintained and enables supplementary enhancements

    and/or integration of additional content or functionality.

    Implementation Evaluation and Analysis

    Once the system is in place, the job is still not com-

    plete. Its important to take the time and leverage the

    companys internal and external solutions teams to

    perform post-implementation review. At this point,

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    feedback should be solicited from all users and part-

    ners to ensure that all understand and are benefiting

    from the new processes that are in place. What

    worked? What could have worked better? What

    went wrong? Ensure the process continues to

    evolve by establishing a program for ongoing train-

    ing for system enhancements, software upgrades

    and new employees. Software support should never

    be considered optional as it is an inexpensive and

    valuable way to ensure that all users are working

    with the latest software versions and are made

    aware of changes.

    Make sure there is a mechanism for end user feedback

    and problem reporting. Sometimes a single user can

    identify a function or communicate a tip with potentially

    wide-sweeping benefit. Likewise, quickly identify

    potential improvements to enable proactive feedback

    to the solutions provider as they seek to continuously

    improve and enhance the system. Establish a change

    management process for implementing enhancements

    and upgrades; sometimes it can be as easy as using a

    simplified version of the initial implementation process.

    Sustaining the Solution and Preparing for the Next

    Initiative

    As is the nature of continuous process improvement,

    its important not only to sustain the new PLM solu-

    tion, but also to look for the next opportunity to grow.

    Part and parcel of a comprehensive rollout is to

    include feedback and analysis to complete the cycle.

    This includes reporting on that analysis to identifypotential improvements, refinements or enhance-

    ments.

    Summary

    In summary, there are some key elements and consid-

    erations for successful PLM implementation.

    The Human Factor

    The human factor can never be underestimated; from

    understanding work styles to garnering buy-in, these

    less tangible and measurable elements are as impor-

    tant as the programs, modules and processes that a

    PLM system provides and facilitates. Cultures and

    personalities can vary from company to company, so

    its important to be self-aware. On a broader scale,

    different industries tend to have their own personali-

    ties. Gerber Technology has been focused on the

    apparel and retail industries for more than four

    decades now. The company is part, parcel and prod-

    uct of these industries unique cultures.

    Keep it Simple

    Often, the simplest solution that achieves the business

    objectives may be the best. Gerbers advice for PLM

    selection and implementation is for a company to look

    first to protect and extend its investments. Especially in

    these unsettled times, it can be very risky to undergo

    radical change. Just like building a wardrobe, if you

    have a few great pieces that are well-designed, well-

    made, fit well and work for you, it makes no sense to

    throw away the entire contents of your closet and startover.

    Just like users of home computers, some companies

    may need extremely sophisticated and robust PLM

    solutions. Others eventually may need enhanced func-

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    11

    tionality, and therefore need the platform to accommo-

    date those future needs. Still others will thrive with the

    basics. Measure requirements and success not by all of

    the functionalities the solution provides, but instead

    measure them based on which solution is the best fit.

    At Gerber Technology, we focus on meeting both the

    short and longer term needs and are able to accommo-

    date a phased adoption to PLM that is right-sized for

    requirements.

    Look for Best Practices and Rely on External

    Professional Services

    With so many retail and apparel companies going

    through the same processes, and with so many consult-

    ing and professional resources, dont go it alone all

    together. Look to professional services as partners.

    Expect them to share what theyve learned through past

    implementations. Expect them to recommend best

    practices based on their experience, even if you choose

    to implement your own.

    Remaining competitive depends on ensuring that all

    areas of the business from development through sup-

    ply chain are consistently working in concert. Supply

    chain visibility is important, however supply chain flexi-

    bility is becoming increasingly vital in order to facilitate

    the requirements to remain nimble to get the right quan-

    tities of the right product to the right place at the right

    time and at the right cost to ensure profitability.

    Just as no two companies needs are the same, no two

    vendors are the same. Each vendor offers its unique

    benefits, and selection should be based on careful con-

    sideration of the prioritized list of requirements. Product

    offering, service offering, training and implementation all

    are important considerations.

    One important consideration transcends those of cost

    and capabilities. Company cultures, personalities and

    relationships cannot be underestimated. Of course,

    every vendor must provide a solid solution, and every

    vendor must be knowledgeable and trustworthy its

    business would not survive otherwise.

    During the vendor selection process, consider moving

    beyond standard demonstrations and presentations.

    Take some time to get to know the people who would

    work on your account. Can you relate to them? Have

    they walked in your shoes?

    Whether implementing a full PLM system or extending

    an existing one, these considerations, combined with a

    collaborative approach with an expert vendor, will

    ensure that the process is a positive experience with a

    rapid ROI. Even during the most trying times for the

    fashion industry.

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    www.gerbertechnology.com

    Corporate Headquarters

    Gerber Technology

    24 Industrial Park Road West

    Tolland, CT 06084, USA

    Phone: +1 860 871 8082

    April 2009