Most people talk about Peter J. Nygård, Chairman of NYGÅRD (International), in terms of his classic rags-to-riches story – the Finnish immigrants' son, who stitched up an empire out of women's clothing and is now the quintessential self-made man. This story overlooks another side of Peter Nygård – a hard driven man who has created a standard of excellence for the Canadian Women’s Fashion Industry
Peter Nygard's Technological Ingenuity
It’s a fascinating look into the bricks and mortar setup that contributed to fashion mogul Peter Nygard’s success, as we continue with an inside look at a poor boy turned multi-millionaire.
NYGÅRD International was said to be such a success in its use of technology that their inventory and warehouse fulfillment systems created an additional logistics business for Nygård. Other clothiers have contracted NYGÅRD for order fulfillment.
Peter Nygard explains the source of his motivation for the technological innovation in his company in the Women’s Wear Daily 35th anniversary feature of NYGÅRD:
“I always marveled how well Fedex tracked their parcels. I walk by an airport and see all those screens, this huge system that tells people where they should be and at what time. I look at the stock market ticker tapes, can order a piece of a stock and see it actually happening before my eyes. That’s what I wanted. With Vcom, everything we do is at the speed of thought.”
After goods are sewn, affixed with proper hangtags, hung on hangers and bagged, they are scanned into the Vcom system, allowing the computer to track them as they are loaded into containers and shipped to the California distribution center.
“It is virtually like an air traffic controller knowing which containers are coming in and which priorities we should deal with based on the color of the screens,” Chaves said. [Ernie Chaves, VP of Logistics]
Once at the distribution center, Vcom lets employees know how much time they have to scan the garments. It inspects their quality: 65 percent of suppliers are certified and can bypass a quality audit but the computer automatically triggers a sampling on every 10th shipment or so, and guides them on what and how many pieces should be picked, packed and, finally, shipped.
Audits keep track of how fast goods are wending their way through the system.
Peter Nygard was said to have sat with computer developers for hours and hours working with them to design this system to his specifications. Well, it all paid off since NYGÅRD is the standout in the industry with its logistics and other technological innovations.
Such streamline of processes and improved efficiencies no doubt contributes greatly to Peter Nygard’s multi-million-dollar success.