KLIM CLIMBS STEADILY UPWARD WITH CENTRIC PLMTM

THE MOTORSPORTS APPAREL AND GEAR COMPANY PAVESTHEIR PATH FORWARD WITH TECHNOLOGY© 2021 Centric Software Inc. All rights reserved.

“We work on such a wide variety of products that it’s just so complex
to manage. Our offerings range from carbon fiber helmets, tosnowmobile boots, to GoreTex outerwear pieces, to motorcycle
airbags. There’s no way we could have handled it all just with Excel
files and emails”.
Ryan Harris, Vice President of Product gives his observations onmanaging their products without PLM. KLIM recognized early on thatthey needed to have a single source of the truth for all product dataso that critical information was accessible at all times. Years ago, thenumber of products was smaller. Of those times, Harris says, “Theactual product development process was more involved because
there were a lot of emails and so many shared Excel files. You had tospend a bunch of time making sure the information you were sharing
was correct.” Now, there is a detailed, centralized database fromwhich everyone pulls the same, accurate information.
Since then, how else has KLIM scaled and adapted to both businessgrowth and change?

WORLD LEADERS IN RIDERPROTECTIONKLIM was an early adopter of PLM—2009—in their search for‘a single source of the truth.’ Their approach was practical; startgradually and get different part of the business on board. Harris
says, “All of design and development is run through Centric PLM. By
automating different parts of the process like lab dips for example,
we were able to cut that time down by about two weeks.” This held
true for other instances such as reducing sample turn time by 25%.

“I THINK STRONG,

EVERLASTING COMPANIESARE WHAT YOU BUILD IN
CHALLENGING TIMES TOSET YOURSELF UP FOR
THE FUTURE.

“KLIM, based in Rigby, Idaho is a global leader in designing andmanufacturing advanced powersports apparel for the demanding
snowmobile and motorcycle rider from head to toe. Founded as
Teton Outfitters in 1994, the company became known as KLIM in1999 initially producing customized snowsuits for back-country
skiers and snow resort workers, then moved on to making protective
snowmobiling apparel. In 2004, KLIM parlayed their expertise inriding gear into making motorcycle gear, nicely spanning all theseasons. KLIM’s mission is to enhance the rider’s experience throughwell-made, high quality gear able to protect the rider throughchallenging circumstances. Each product goes through an intensive
R&D phase as well as rigorous testing to meet their high standards
for protection. The company is continuing to grow at a rapid pace.

— Ryan Harris, Vice President of Product at KLIMPANDEMIC PANDAMONIUM		

As a wholesale company, KLIM had to scramble like everyone else
when retail stores were shut down in the spring of 2020, exclusively
leaning on e-comm for a period of time. KLIM had had the foresightto establish their online site through data housed in PLM prior to thepandemic. Circumstances had people eager to embrace outdoor
sports. Harris says, “We are definitely seeing growth in our direct
sales which has been a smaller portion of our business. And weended 2020 about 30% up in DTC, year over year. The spring was alittle bit rough for our wholesale accounts but they made up for it inthe summer, ultimately growing from the year prior, as did we. Andwe typically see that as we improve our direct sales, our wholesalechannel usually comes with us. It’s not one or the other. The wholebrand grows.”
Still, there were adjustments to be made to their usual way ofworking. Most of their vendors are overseas. Says Harris, “Whatchanged a little in our development process—which I hope makes
us stronger— was losing the ability to jump on a plane and go fix© 2021 Centric Software Inc. All rights reserved.

CHALLENGES+ E-comm channel under-utilized+ Sample turn time was messy andunknown+ Lab dip process took too long
+ No formal way to advance innovation+ Regional Quality inspections relied onemail to convey informationsome of the things that are not finalized earlier on in the project stages. So
it really forced our design and development team to be more thoughtful
in some of their decisions and to stick more strictly to the timelines. It
modified the way our team works internally. I think our biggest challenge
was not being able to see and talk to each other at the office every day tobuild on ideas and have that face-to-face communication.” Centric PLM
assisted in this effort, facilitating collaboration among team members
by giving everyone up-to-date product data and transparency to thedevelopment process no matter where they were.

TECHNICAL TRACKRESULTS+ E-comm channel sales up 30%		
year-over-year+ Decreased sample turn time by 25%+ Streamlined and automated lab dip		process, cutting it down by two weeks+ Weekly focused innovation meetings
implementedUnlike some apparel brands, much more than fashion is at stake with KLIM’s+ Regional quality inspection data to begear. It provides a degree of protection that motorcycle and snowmobile
accessible in real-timeriders expect. There are other considerations too—like making sure themotorcycle jackets are breathable so the rider doesn’t get too hot, which
can be a dangerous distraction on the road. Harris discusses their flagshipjacket. “Our Badlands Pro is a GoreTex pro laminate, waterproof jacket, with YKK zippers, Scotchlite 3M reflective. It has ceramic-infusedsuper fabric that, if you ever go down, you’ll slide across the road leaving the jacket still intact. It has a kidney belt and armor in all thelimbs that solidifies on impact. On the flip side, I get a few contacts each winter from customers who tell me their machine broke down
so they had to spend two nights in a freezing ravine before anyone found them, and that our gear saved their life.” Harris explains thatthe tech pack for the Badlands jacket is 30 pages long with over 200 items in the BOM and 5 colorways. “You’re managing 1000 different
things in that style to make sure production is done correctly. Something that would be impossible to manage without Centric PLM.”CONSISTENCY IS KEY											PLM allows KLIM to be consistent in how information is presented to the factories. Harris says, “You have complex products that havepages and pages of information, and then there is a simple polo shirt with a lot less information, but the info is all consistent. The format
of it is the same whether it’s from designer A or designer B; how we communicate is really consistent and our factories and suppliers
are used to that. And that is made possible by Centric PLM.”QUALITY TEAM GETS A BREAK									Much of KLIM’s quality team is based overseas and typically meets with teams at headquarters a couple of times a year. Harris says,“We’re rolling out a module with our QC team. They’ll access the information and do their quality checklists, identify problems andmanage the whole thing right through PLM. We’re excited to get our QC auditors going through the factory with their iPad, take pictures,
make comments on the spot.” He continues, “Their QC counterparts back here in the States have instant access to that information
instead of having to wait for their overseas colleagues to recall what they observed and find time to write up an email after the fact. With
the new module, live data gets entered during the inspection, significantly ramping up efficiency.”

GETTING EVERYBODY ON BOARD			 					Product management, all of line planning, all financial reports for margin analysis and revenue growth is done through PLM. Harris
lists the functions that are fully using Centric PLM, “Our design team are designing in their own systems and software, but all of thatcollaboration comes into Centric. Our development team probably spends the vast majority of their day in the system. Production,sourcing, logistics, purchasing, marketing, and accounting. So almost everyone!”

Onboarding new employees is also easier, since Centric PLM is so user friendly. Even remote onboarding is possible in just a few hours
to give new hires what they need to get going.

ENCOURAGING INNOVATION			 						With the emphasis KLIM places on innovation, their people are constantly thinking about how to improve the products. Harris says, “We
don’t have a dedicated innovation team. We believe it comes from everywhere.” But PLM has allowed them to take it a step further. For
two years, KLIM has held their weekly project status meetings in PLM. It was working so well, that they decided to transfer the process
to running innovation meetings. This carves out time during the busy development season and provides rigor around innovation, using
the tool right inside Centric, giving clarity to what innovations are slated for which season.

THE OUTLOOK							 					The future looks bright for KLIM. Harris notes, “We’re seeing that people are still looking to go out and experience outdoor activities.
It should be a good financial year. Our teams are motivated and happy. I think strong, everlasting companies are what you build inchallenging times to set yourself up for the future.”© 2021 Centric Software Inc. All rights reserved.

KLIM (www.klim.com)												KLIM is a relatively young company with a rich history built on the values of hard work, sacrifice, and determination. KLIM has risen against
all odds to become one of powersport’s most recognized brands and a global leader in designing, developing and manufacturing the mosttechnically advanced motor sports apparel. Utilizing the world’s highest technologies in waterproof, breathable, durable and comfortablematerials, KLIM builds gear for the most demanding riders. Driven by the continual feedback and input from dedicated test pilots and passionate
customers, KLIM strives to do one thing above all—improve your riding experience without compromise. Our story is one of an ambitious
dreamer who refused to quit and the family of people who helped him change an industry. At KLIM, our dreams and passions fuel our brand,
and our employees and clients are the driving force behind our success.

ABOUT CENTRIC SOFTWARE (www.centricsoftware.com)					From its headquarters in Silicon Valley, Centric Software® provides a Product Concept to Consumer Digital Transformation Platform for fashion,retail, footwear, luxury, outdoor and consumer goods including cosmetics and personal care and food and beverage. Centric’s flagship Product
Lifecycle Management (PLM) platform, Centric PLMTM, delivers enterprise-class merchandise planning, product development, sourcing, quality
and product portfolio optimization innovations specifically for fast-moving consumer industries. Centric SMB focuses on core tools and industry
best practices for emerging brands. Centric Visual Innovation Platform (CVIP) offers highly visual digital board experiences for collaboration anddecision-making. Centric Software pioneered mobility, introducing the first mobile apps for PLM, and is widely known for connectivity to dozens
of other enterprise systems including ERP, DAM, PIM, e-com, planning and more as well as creative tools such as Adobe® Illustrator and a host of3D CAD connectors. Centric’s innovations are 100% market-driven with the highest user adoption rate and fastest time to value in the industry.
All Centric innovations shorten time to market, boost product innovation and reduce costs.
Centric Software is majority-owned by Dassault Systèmes (Euronext Paris: #13065, DSY.PA), the world leader in 3D design software, 3D digital
mock-up and PLM solutions.
Centric Software has received multiple industry awards and recognition, including being named by Red Herring to its Top 100 Global list in 2013,2015 and 2016. Centric also received various excellence awards from Frost & Sullivan in 2012, 2016, 2018 and 2021.

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