Let's take a look at the report "Redesigning Fashion Sourcing: Speed and Flexibility at the Forefront*" by McKinsey & Co, which presents the results of a survey conducted among apparel sourcing managers from 38 international brands and retailers in November 2021.
The COVID-19 crisis has had serious consequences for the supply chain in the textile sector, as it is experiencing significant disruptions, particularly in the price of transport and raw materials…
Procurement managers face numerous challenges: disruptions to shipping, volatile demand, constraints related to COVID-19, limited raw materials and increased costs, and increased online sales.
Shipping costs and raw material prices continue to rise, and the trend is not expected to improve. This increase is a major concern for procurement managers.
These major constraints call into question the fashion industry and internal organizational processes.
The supply chain has become a priority for leaders to move towards a flexible, fast, sustainable, consumer-centric and digitally focused model.
A profound change is underway in sourcing and design processes, and working methods and business priorities are evolving.
The report states that 50% of companies have begun a major transformation to achieve speed and flexibility.
A new model is emerging, aiming towards:
Supply chain transformation is becoming a key success factor in meeting the challenge of a more flexible, faster, and more sustainable supply model, particularly in decision-making and operational processes. Further investments are still needed.
With our e-SCM solution, we have been working with fashion and luxury brands for 15 years on the digitalization of their upstream supply chain. In the current context, our clients are equipped to face these major changes thanks to e-SCM.
1. Supporting the digital transformation of your supply chain
To succeed in their digitalization, procurement managers will have to focus on strengthening internal skills and technological tools integrated and efficient
In our project approach, we prioritizechange management and training for supply chain stakeholders to ensure successful adoption of the new tools and user engagement. We emphasize close collaboration with business stakeholders to support them in implementing the e-SCM solution, involve them in all decisions, and assist them in making informed choices.
2. Optimize your supply chain management: costs / lead times / quality
To ensure your supply strategy is successful, it is necessary to define key performance indicators and clarify the roles and responsibilities of supply actors.
e-SCM allows you to manage your key performance indicators (KPIs) using the monitoring module. It's possible to anticipate any disruptions, delays, or problems identified in the supply chain. This enables you to implement and plan ahead to mitigate production risks and avoid disputes with suppliers.
The goal is to remain agile in the process and to adjust one's trajectory according to the objectives set.
3. Create a digital ecosystem with your suppliers
The key to facilitating agility and transparency in the supply chain will be establishing partnerships with suppliers and service providers throughout the entire supply chain. Integrating stakeholders enables end-to-end supply management of the entire cycle : from raw materials and product orders to production and deliveries.
The e-SCM collaborative tool will centralize all information , thereby strengthening collaboration and transparency within the supply chain. The creation of this digital ecosystem will improve the speed and flexibility of the process and guarantee the brand sustainable and ethically manufactured products.
4. Align your strategy with your organizational objectives
Defining key performance indicators (KPIs) common to all supply chain stakeholders is necessary to align strategy with organizational objectives. It is important not to focus solely on the lowest cost price and to review the responsibilities of supply chain teams.
e-SCM allows you to focus on the added value of the Supply Chain manager by facilitating their daily tasks, giving them a 360° view of ongoing production and the points of vigilance to be addressed as a priority in order to meet the set objectives.
This will allow supply teams to save time and be more efficient and responsive to unforeseen events that may occur in the supply chain. This can be leveraged for improved supplier relationship management and the development of the teams' digital and analytical skills.
e-SCM, a tool for supply chain managers
To successfully transform with agility, brands will need to accelerate their digitalization, rethink their supply processes and their internal/external organizational model.
Supply chain managers will thus be able to rely on the e-SCM solution to secure supplies, manage production planning and guarantee product traceability, in consultation with suppliers.
Consult the Mc Kinsey & Co report: “Revamping fashion sourcing: Speed and flexibility to the fore”.
