"The CPSIA Is Coming–Is Your Company Ready?"

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"The CPSIA software allows retailers and manufacturers to easily manage the process of requesting, tracking, approving and sending the General Certificate of Conformity (GCC) and Certificate of Compliance (COC) documents that are mandated by the CPSIA."
Source : New Generation Computing, Inc.

Resources Related to The CPSIA Is Coming–Is Your Company Ready?:

• Consumer Product Safety Improvement Act (Wikipedia)

The CPSIA Is Coming–Is Your Company Ready?

The new Consumer Product Safety Improvement Act (CPSIA) regulations were introduced earlier this year, and the future impact of these measures has sent shock waves through apparel and retail. Apparel and footwear brands and retailers, who are reeling from the recession and have slashed jobs in response to the weak economy, must now meet these burdensome, labor-intensive regulations with far fewer people – a scary prospect for an industry in turmoil.

CPSIA: “A Nightmare Scenario”

The new CPSIA regulations are intended to reduce lead content, particularly in children’s goods, by establishing new product safety and testing guidelines for children’s products, along with footwear and apparel. In practice, however, CPSIA is akin to “using a bazooka to kill a lead-free gnat,” wrote University of Chicago law professor Richard Epstein in a column in Forbes.com. Few issues in recent years have caused as much uproar among apparel and children’s retailers and manufacturers. Grassroots organizations have formed to protest the CPSIA, and anti-CPSIA rallies have been held in New York and Washington, D.C.

The scope and punitive nature of CPSIA is breathtaking and affects both retailers and manufacturers alike. Manufacturers must have certified test results to prove that their goods comply with CPSIA – or the products must be pulled from retailer shelves and destroyed – “a nightmare scenario,” according to the American Apparel & Footwear Association. Even though the U.S. Consumer Products Safety Commission granted a one-year stay on testing and certification requirements for some products, retailers and manufacturers are scrambling to comply.

Summing up the impact of this legislation, the Vendor Compliance Federation (VCF) and Trade Promotion Management Associates (TPMA)stated, “The continued roll-out of third party testing requirements…has increased demand for supply chain synchronization and communication. CPSIA has changed the retail landscape by holding retailers and importers now accountable for unsafe products, along with their manufacturer.”

The scope and punitive nature of CPSIA is breathtaking and affects both retailers and manufacturers alike. Manufacturers must have certified test results to prove that their goods comply with CPSIA – or the products must be pulled from retailer shelves and destroyed.

CPSIA Adds to Supply Chain Complexity

CPSIA compliance adds huge new layers of complexity and expense to the global apparel and retail supply chain. Each Certificate of Compliance document must include:

• Identification of the product lot covered by the COC
• Citation to each CPSC safety regulation
• Identification of the U.S. importer or domestic manufacturer
• Contact information of the individual maintaining records of test results
• Date and place where the product was manufactured
• Date and place where the product was tested for compliance
• Identification of the third-party laboratory that did the testing

Currently, most companies manage their COCs manually, sending scores of emails around the world to track testing results for every component of a garment, such as painted buttons. However, multiply that by dozens of components per garment, hundreds of styles, and the many other tests that garments are subjected to (shrinkage, colorfastness, etc.) and the process quickly becomes unmanageable. Complexity isn’t the only issue, either. With a price of $200 to well over $500 per test, producing COCs results in huge cost increases for retailers and manufacturers – further eroding margins for an industry that’s trying to stay afloatrecover.

NGC Software Streamlines CPSIA Management

In response to the CPSIA, NGC® (New Generation Computing®) introduced its new CPSIA Compliance Software in April. The software is designed to streamline the management of all testing processes and help companies deal with the complexities of CPSIA compliance. The software integrates CPSIA compliance as part of a comprehensive supply chain strategy, and can be implemented as a standalone product or as part of NGC’s e-PLM® software for Product Lifecycle Management and e-SPS® for global sourcing and visibility.

NGC’s CPSIA Compliance Software is designed to streamline the management of all testing processes and help companies deal with the complexities of CPSIA compliance.

NGC is the first apparel-specific software company to offer a solution tailored specifically for managing CPSIA compliance, with features that include:

• Enabling brands and retailers to streamline the process of requesting, tracking, approving and sending General Certificates of Conformity and Certificates of Compliance – all at the click of a button
• Providing comprehensive visibility into the compliance and testing process so that responsible parties can view the status of tests and documentation at any time
• Streamlining the entire testing process, including the dozens of third party lab tests that brands and retailers typically perform on styles, components and materials

NGC’s CPSIA Compliance Software can also help companies manage the requirements of compliance with California’s Proposition law. The software is a web-based solution that includes a complete set of management features such as workflow calendars, collaboration, exception management, and email alerts.

With its CPSIA software, NGC is providing retailers and manufacturers with a supply chain solution that streamlines the entire testing process, which eases the burden of meeting these regulations and saves companies valuable time and resources – benefits that are more important than ever in today’s turbulent economy. And because the CPSIA software integrates with NGC’s e-PLM and e-SPS solutions, companies can also reap the traditional benefits of these solutions, which include:

• Improved profit margins. Companies that invest in PLM systems report significant gains in their profit margins due to continued savings through productivity improvements and reduced costs in product development. Even a small lift in profit margin can have a big impact foron brands and retailers.
• Reduced cycle times. e-PLM and e-SPS enable a high degree of collaboration and visibility at every step of the product lifecycle, allowing companies to get their product from design concept to the retail floor in the shortest possible period of time. Companies that implement these systems also have the opportunity to analyze their business processes and streamline their workflow, further improving efficiency.
• Rapid response to fast-moving trends. By shortening the product lifecycle, NGC’s PLM and global sourcing software solutions enable companies to design much closer to the fashion trends. This helps brands and retailers deliver the merchandise their customers expect, increasing full-price sales and minimizing markdowns.
• Increased sourcing agility. The ability to quickly shift the sourcing mix has become increasingly important, given the supply chain instabilities that have resulted from the recession. Companies that have integrated their PLM software with global sourcing operations can make rapid adjustments, like changing manufacturers as needed in order to lower the costs of production, reduce shipping costs, ensure on-time deliveries and a host of other benefits.
• Better product quality. NGC’s PLM and global sourcing systems can help companies improve their product quality – providing a level of consistent quality that protects brand reputation and builds long-term customer loyalty. The quality software can help companies detect problems at remote factories, allowing manufacturing defects to quickly be resolved before goods leave the factory. The result is significant savings in time and money.

In summary, NGC’s CPSIA compliance software, coupled with the company’s PLM and global sourcing solutions, can play a key role in helping companies to succeed not only in the current downturn but also when the economy rebounds. Ultimately, that can help struggling retailers and apparel brands become more competitive – an unintended consequence of CPSIA, perhaps, but one that is welcome nonetheless.

NGC: Best-in-Class Solutions for PLM and Global Sourcing

NGC’s e-PLM and e-SPS form the industry’s first, most widely installed and most comprehensive solution encompassing the entire product lifecycle for apparel, footwear and accessories. e-PLM and e-SPS cover every step of the complex design/production process – from design concept through sourcing and product quality, to receipt at the DC – with a web-based solution that centralizes information, enhances collaboration, and streamlines workflows to transform the product lifecycle.

NGC’s CPSIA compliance software, coupled with the company’s PLM and global sourcing solutions, can play a key role in helping companies to succeed not only in the current downturn but also when the economy rebounds.

NGC has won a number of industry awards in recognition of the company’s innovative solutions for PLM and global sourcing:

• NGC received a “Strong Positive” rating in Gartner’s “MarketScope for PLM in Apparel, Footwear and Accessories, 2008.”1 NGC was one of 15 PLM (Product Lifecycle Management) vendors evaluated in the report and received the highest possible rating, “Strong Positive.”
• Inbound Logistics Magazine selected NGC as one of the Top 100 Logistics IT Companies for 2009 and 2008 and 2009. This prestigious recognition is designed to provide supply chain and logistics executives with a complete guide to the industry’s best-in-class technology and service providers.
• NGC was honored by Global Logistics & Supply Chain Strategies (GL&SCS) magazine as one of its “100 Great Supply Chain Partners” for 2008. NGC was selected as a Top 100 company out of 1,500 nominations for the prestigious awards, which recognize the industry’s best and most reliable supply chain vendors.

NGC customers make up a “who’s who” of leading brands and retailers such as VF Corporation®, A|X Armani Exchange®, Carter’s®, Casual Male Retail Group®, Maggy London, R.G. Barry, Hugo Boss®, Dick’s Sporting Goods, Isda & Co., Jerry Leigh, Tristan & America®, Parigi Group, and many others.

To learn more about NGC’s CPSIA Compliance Software and our integrated PLM and global sourcing solutions, visit us at www.ngcsoftware.com or call:

• Miami headquarters: (305) 556-9122 (Miami headquarters)
• New York: (212) 768-0101
• Los Angeles: (323) 497-4200