Austin Business Journal
May 26, 2000

Local Software Assists in Sports Jersey Ordering

By Tom Fowler

The same people who put jerseys on the backs of the Dallas Cowboys are using Austin's Factory Logic Inc. to put the "e" into e-commerce.

Philadelphia-based Boathouse Sports Inc. will use Factory Logic's software to directly connect it's Web-based ordering system with its manufacturing line. The move lets customers order as few as one customized article of clothing with an accurate projection of when the order will be completed and shipped.

John Strotbeck, president of Boathouse, says Factory Logic's software lets his company bridge the gap between the customer and the factory.

"Ultimately, it improves customer service and reduced our order processing costs," he says. "It fits exactly what the promise of the Internet is all about - buying exactly what we want to buy, not what we're told we can buy."

The software, which costs between $150,000 and $200,000, will pay for itself in 12 to 18 months through more orders and an expected 20 percent increase in margins, Strotbeck says. Order processing costs are expected to drop by 90 percent, projected savings of $270,000 in the first year.

Up until just a few years ago, even Dell Computer Corp. had manual processes separating customer orders coming in via the Web from its manufacturing processes. Very few companies have been able to make that connection, says Factory Logic CEO Richard Lebovitz.

"Everyone is focused on the front end of [business-to-business] and [business-to-consumer] solutions, but no one has really looked at the back end of e-commerce," Lebovitz says. "We're trying to offer an off-the-shelf product that essentially 'Dell-izes' the rest of the world."

Gene Lowenthal, a Factory Logic advisor and investor, says the company is riding the wave of change that has customers expecting the full benefits of the Internet - convenience, ease-of-use and customized ordering.

"People are moving to the Burger King model, where they want to get it the way they want it," Lowenthal says. "Once you accept that premise, that mass customization is the way everyone is going, Factory Logic is a no-brainer."

For 11 years, Boathouse has provided National Football League teams and hundreds of college sporting teams with customized clothing, including the University of Texas football team, Strotbeck says.

Richard Lebovitz and Henry Peres formed Factory Logic in 1993-then known as Scintellect Systems Inc. - to help companies ride the wave of just-in-time manufacturing.

The company went into the Austin Technology Incubator and, shortly after graduating in 1998, landed Unilever Corp.'s Elizabeth Arden cosmetics operation.

The company has raised about $800,000 in seed funding from Lowenthal, Sanchez Capital Partners, former Dell exec Harvey Ring, and Infoglide Corp. CEO Jay Valentine.

"The goal of Streamline is to provide information about actual orders in the pipeline - moving production closer to a make-to-order model. The intended result: up to 90 percent manufacturing cycle time reductions."

Laurie Joan Aron
Supply Technology News

Factory Logic Software featured in "Flow Techniques And Software Gain Ground In Manufacturing."


Wall Street says the economy is headed for recession. Can Demand-Driven Manufacturing (DDM) help your company navigate the treacherous waters of fluctuating demand? Find out in: The Power of DDM in a Down Economy: Software Strategies for Efficient Production Systems.