Market Shift to Nearshoring Helps Manufacturers Focus on Real Time Visibility
and Increased Productivity – Driving Rapid Adoption of Company’s Production Management System
CGS, a global provider of business applications, enterprise learning and outsourcing services, announced the continued success of its aggressive expansion efforts with new BlueCherry Shop Floor Control customers in the Latin America region.
The company adds Confetex – an international textile manufacturer and premium manufacturer of denim products for leading brands such as Levi Strauss & Co., Ariat, and OGGI jeans – headquartered in Puebla, Mexico; Personal Brands (PB) Group – a Mexico-based, luxury menswear start-up; and Diltex Brands – a 70-year-old leader in women’s fashion, based in Naucalpan de Juárez, México – to its roster of leading brands and manufacturers in the region. The new Shop Floor Control customers bolster the company’s aggressive growth plans and acquisition of new customers across all of Latin America – a rapidly emerging hotbed for apparel manufacturing.
Read More: Opkey Secures $8 Million Funding Round Led By Vertica Capital Partners
“Confetex prides itself on being a technology-driven manufacturer – digitalization of our entire operation ensures we can deliver the highest-quality product in the most efficient and environmentally-friendly manner possible,” said Fernando Galan, CEO for Confetex. “Not only did we find BlueCherry Shop Floor Control to be the ideal solution, but once we met with their implementation and customer success teams, the decision was easy! We look forward to a long and successful relationship with the CGS BlueCherry team.”
“We did a deep analysis of the leading solutions in the market for production floor modernization, and we found BlueCherry Shop Floor Control and the greater CGS organization to be the best solution, along with the most dedicated, ambitious, and ethical team in the industry, both in the United States and Mexico,” said Gerardo Morera, CEO for PB Group. “We are eager to implement Shop Floor Control and have high expectations for its long-lasting impact on the business.”
According to a recent report by Nicole Bivens Collinson from international trade law firm Sandler, Travis and Rosenberg (ST&R), brands are looking at rebalancing their sourcing to ensure they are not “overexposed” in one geographical area; are considering a “hub and spoke” sourcing model to manufacture in geographical proximity to the target market; are looking at vertical manufacturing locations either as an individual country or as a close geographical region of countries; are looking at sustainable production to meet growing consumer demands; and are looking at nearshoring suppliers as it helps to meet several of the sourcing restructuring objectives.
Read More: SalesTechStar Interview With Catherine Blackmore, GVP of Customer Success & Renewals at Oracle
“Over the past few years, a myriad of recent economic and political factors, especially in regard to China, have had significant impact on the fashion, apparel and home goods industries,” said Paul Magel, President, Application Solutions Division for CGS. “With customers in Europe, Africa, the Middle East, and Central America, international expansion has always been key to our leadership position in the industry – so we are well poised to capitalize on the burgeoning Latin America market as major brands shift production to countries closer to their North American stores and base of operations.”
Industry analysts see continued increases in apparel sales as U.S. buyers engage in near sourcing and seek competitive places such as Mexico, which is only 24 hours away by truck. For Mexico specifically, shipments are trending to hit $7 billion by late 2022.