CARGOCONNECT-MAY23 - Flipbook - Page 21
Besides, with the acceptance and proliferation of alternate retail channels such
as e-commerce, there is now a heightened
need for collaboration. E-tailing offers a
host of advantages to apparel brands and
thus has the power to transform traditional
retailing economics. Thus, with the rise and
acceptance of apparel e-tailing, there is a
need for collaboration and strategic alliances
between manufacturers, retailers, logistics
and distribution service providers.
Beyond doubt, the T&A industry stands
out as one of the most globalised industries in
the world, with a supply chain spread across
the globe, which includes retailers, contractors,
merchandisers, buyers, suppliers, logistics
players, warehouses, and customers, each with
an important role to play. The entire supply
chain needs to be integrated, as managing
logistics requires close coordination across
the network of suppliers, manufacturers, copackers, distribution centres, transportation
providers, and stores. Traditional supply
chains generate sequential and isolated plans
for inventory, production, distribution, and
procurement. Retailers across the world are
attempting to implement various supply
chain practices in order to efficiently manage
their key goals, including reducing slow
moving inventory and thereby improve
stock turnover, reduce clearance inventory,
improve the process of ordering, receiving,
packing out from receiving, improve the
process of product markdowns, improve the
sales per footfall, sales per employee, reduce
out-of-stock inventory, guarantee accurate
store sales or inventory data, and improve
merchandise availability.
Global buyers increasingly prefer suppliers who can provide end-to-end solutions
rather than just manufacture garments. In
order to gain a competitive edge, most buyers
and suppliers are looking at consolidation
and are exploring strategic partnerships
with each other. Further, T&A businesses
everywhere are trying to develop a customer
focussed business model. They enter into
long-term strategic partnerships with their
buyers in order to have total control over
the supply chain and create economies of
scale. For manufacturers, capacity blocking
ensures volumes and better production planning due to end-to-end visibility. Building
a long-term relationship with buyers also
helps establish supply chain excellence.
For buyers, strategic partnerships ensure
a faster turnaround, closer-to season decision
making, lower out-of-shelf time and lost
sales, fewer markdowns, reduced inventory levels, and an opportunity to focus
on the core business of retailing rather
than on sourcing activities. Suppliers can
contribute to reducing supply times by
setting up a vertical supply chain from
fibre to garment, as this will shrink the
time spent on transportation. Further, the
time spent on approvals and couriers can
be saved through a closer collaboration
with buyers. Thus, increasingly, the visible
trend is towards consolidation and forging
strategic partnerships across the value
chain. Players are integrating activities from
design development, vendor management,
and manufacturing, to supply chain.
In recent times, the industry has witnessed various forms of strategic partnerships covering diverse business issues.
Many retailers and brands are looking at
partnerships involving upstream integration
to better control the value chain. At the same
time, many players are relying on strategic
tie-ups for research and development, and
innovation. Dye manufacturers are working
closely with fibre players to launch coloured
fibres targeted at specific markets. Fabric and
apparel manufacturers, as well as retailers,
are collaborating with pure-play logistics
players to focus solely on their areas of
competency and maximally leverage their
expertise and experience. Of late again,
many fibre players, which have managed
to establish themselves as fibre brands,
have entered into collaboration directly
with apparel brands to launch fibre-specific
programmes in specific markets.
Most importantly, for brands and
organisations, it is now all about how to
be sustainable and engage stakeholders
effectively and efficiently. Building a sustainable economy will require prompt change
and approach by thought leaders. Businesses
with sustainable supply chains incorporate
sustainability into their day-to-day operations and decisions at every level. Progressive
T&A companies are competing to address
extant issues and create more sustainable
businesses. The strategic approach to sustainability involves developing a philosophy
of sustainability within the organisation,
creating goals, implementing workable
projects to meet these goals, educating
employees and stakeholders, and regularly
auditing the entire supply chain to correct
any abnormalities. The industry needs
to be proactive in finding ingenious and
innovative ways of designing and developing
fashion instead of looking at sustainability
as a constraint or a limitation.
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