New Technology Acceptance in the Global Fashion Industry

Fashion ERP (Enterprise Resource Planning), SCM (Supply Chain Management), and CAD (Computer-Aided Design) Systems

Jennifer Kyungeun Lee

Business Case
Source: Bloomsbury Fashion Business Cases
DOI: 10.5040/9781474208772.007
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Abstract

Laura & K Fashion is a well-known global sportswear company with excellent brand recognition that was established in the 1980s and is based in the United States. The company currently includes 21 private-label brands and 17 imported brands that are domestically distributed as well as globally, to 23 countries worldwide. Laura & K Fashion has been working with over 100 global supply-chain partners, including original equipment manufacturing (OEM) companies, mainly located in Asian countries, to produce fashion products such as apparel, bags, and accessories. Laura & K is one of the fashion industry’s leaders in incorporating advanced technologies, such as enterprise resource planning (ERP), supply chain management (SCM), and computer-aided design (CAD) systems, which enhance efficiencies in product development and global sourcing processes. Last year, the company reestablished its IT infrastructure and updated its ERP and SCM systems to the latest versions to fit new product development and global sourcing processes suggested by IT specialists from an outside consulting firm. Six months after adoption, many system users at Laura & K did not want to use the new systems anymore due to associated inconveniences and inefficiencies caused by multiple system issues. Global supply-chain partners also complained that Laura & K’s new technological systems caused problems that reduced their own manufacturing efficiencies. Laura & K must now make a decision on how best to respond to the company system users and global supply-chain partners in the face of the claimed inconveniences and inefficiencies, all of which could continuously occur and will potentially decrease the company’s profits and product quality for next year


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