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Present and IBM help one of the country's biggest cotton-wear manufacturers grow a size larger

Founded in 1984, the Montréal-area fabric manufacturer Textiles Gildan inc. has become an industry leader on a national scale.

In 1994, the organization began concentrating its resources on the manufacture and sales of active wear for distribution to wholesalers. In 1995, the company changed its name to Les Vêtements Sports Gildan inc./Gildan Activewear inc. in order to better reflect its mission.

Today, the company makes superior quality, 100% cotton t-shirts mainly for the North American market. Following a change in direction made in 1992 wich allowed the company to expand in the American active wear market. Gildan Activewear is now setting its sites on carving out a larger share of the international market.

Remarkable growth, major challenges

In the spring of 1998, Gildan Activewear employed 1,700 people. By the autumn of the same year the number of full-time personnel had grown to more than 2,300. The company's remarkable progress is also reflected on their balance sheet; between 1993 and 1997, sales rose from $30.9 million to $120.1 million. Naturally, such impressive growth posed a number of challenges for the company.

The biggest challenge for Gildan Activewear was directly connected to one of its defining characteristics; the fact that its production activities are spread over a broad geographic base.

In fact, while the company's production sites for fabric weaving, dyeing and cutting are located in Montréal and surrounding area, dozens of sub-contractors in Central America and the islands are contracted to complete the finished products.

So whether it's production units in Montréal, Canada or Malone, New York or sub-contractors in Nicaragua, Salvador, Mexico, Honduras or the islands, the company had to find a computerized solution that could be adapted to its need for the communication of vital information on a daily, if not hourly, basis.

"We consider our business relations with Present and IBM to be an efficient way to achieve our objectives." François Vinette, Vice-President, Information Technologies, Gildan Activewear.

Until recently, on-going business developments as well as the geographic diversity of the various production centers meant that the company had to invest enormous amounts of resources and energy to maintain accurate inventory and production up-dates. It became a priority to reduce communication lags and to improve data integrity.

When the company contacted Present in 1998, it was looking to create a special business relationship with a team that could be involved in both advisory and service roles. They were also hopeful that the team could propose a technological solution that would include their sub-contractors.

Finally, Gildan Activewear were in the market for a powerful, fast, flexible platform that would allow them to monitor inventory both on site and in transit.

The solution proposed by Present and IBM now allows the company to take inventory, maintain constant links with sub-contractors and manage stock during shipment. Using the new computerized system, the company can intervene at any stage and exercise total data control. Now, it's as if all production units are local.

As a result, the three factors governing the return on investment for the company are: complete and quicker data access, reliable data integrity and conformity across time and space. In summary, the Present/IBM solution has reduced costs, time and errors in operations at Gildan Activewear.

"This solution allows us to maintain a direct link with our partners and production units.", says François Vinette, Vice-President, Information Technologies, Gildan Activewear.

Technical profile

The computer infrastructure uses Lotus Notes 4.6 and the Internet in order to link sub-contractors in Latin America with the Domino server on IBM AS/400, model 170 in Montréal. The sub-contractors use this application in conjunction with bar code readers to record inventory and develop precise delivery schedules.

The platform developed by the experts at Present has contributed to a considerable reduction in the number of errors and facilitated the company's dramatic growth.

The new Lotus-Domino computer solution coupled with the IBM AS/400 allows Gildan Activewear to retrieve complete inventory data at any time. In other words, it has created a truly efficient communications network linking the company with its far-way partners.

The Present team

"From the technology point of view, Present and IBM allow us to meet our goals. We looked for assistance from a partner like Present because we placed a great deal of importance on products of superior quality", says Mr.Vinette.

"The Present team is made up of innovative professionals who really understand the technology; they listen to their clients and they work constructively to achieve the goal without loosing sight of either their objectives or those of their client.

In order to grow our sales, broaden our product range and increase our production capacity, we're focusing on the technology of the next millennium", Carole Lauzon, MIS Director, Gildan Activewear.

At Gildan Activewear, there are other projects on the horizon

The marketing plan envisions an increase in sales, additions to the product line as well as growth in production capacity. To achieve those goals, Gildan Activewear can count on dependable partners such as Present supported by IBM technology.