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Let's take a look at McKinsey & Co's report 'Reshaping fashion sourcing: speed and flexibility at the forefront*', which presents the results of a survey of apparel sourcing managers from 38 global brands and retailers, in November 2021.
The COVID-19 crisis is having a serious impact on the supply chain in the textile sector as it is experiencing major disruptions, particularly on the price of transport and raw materials...
Procurement managers face many challenges: shipping disruptions, volatility of demand, COVID-19 constraints, raw material limitations and rising costs, increasing online sales.
Shipping costs and the price of raw materials are increasing and not getting any better. This is a major concern for procurement managers.
These major constraints challenge the fashion industry and internal organisational processes.
The supply chain has become one of the most important priorities of leaders to move towards a flexible, fast, durable model, consumer-centric and digital-focused.
There is a profound change in sourcing and design processes, working patterns and business priorities are changing.
The report states that 50% of companies have undertaken a major transformation to achieve speed and flexibility.
A new model is emerging to move towards :
Supply chain transformation is becoming a key success factor in meeting the challenge of a more flexible, rapid and sustainable supply model, especially in decision making and operational processes. Investments are still needed.
With our e-SCM solution, we have been working for 15 years with fashion and luxury brands on the digitalisation of the inbound supply chain. In the current context, our customers are equipped to face these major changes thanks to e-SCM.
1. Supporting the digital transformation of your supply chain
In order to successfully digitise, procurement managers will need to focus on building internal skills and deploying integrated, high-performance technology tools.
In our project approach, we favour thechange management and the training of supply chain actors for a good appropriation of the new tools and a commitment of the users. We focus on proximity with the business referents in order to help them get to grips with the e-SCM solution, to involve them in all decisions and to assist them in making decisions.
2. Optimize the management of your supply chain: costs / deadlines / quality
In order to secure your supply strategy, it is necessary to define key performance indicators and clarify the roles and responsibilities of the supply actors.
e-SCM allows you to monitor your indicators thanks to the supervision module. It is possible to prevent any break, delay or problem identified in the supply cycle. In this way, solutions can be put in place and anticipated to compensate for production hazards and avoid disputes with suppliers.
The aim is to remain agile in the process and to adjust its 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 the establishment of partnerships with suppliers and service providers throughout the supply chain. Stakeholder integration enables end-to-end supply management of the cycle: from raw materials, product orders, production and delivery.
The e-SCM collaborative tool will centralise all information and thus strengthen the collaboration and transparency within the supply chain. The creation of this digital ecosystem will improve the speed and flexibility of the process and ensure the brand's sustainable and ethically produced products.
4. Align your strategy with your organisational objectives
The definition of key indicators common to the supply chain actors is necessary to align its strategy with its organisational objectives. It is important not to focus only on the best cost price and to review the responsibilities of the supply teams.
e-SCM allows to focus on the added value of the supply chain manager by facilitating these daily tasks, giving it a 360° vision the productions in progress and the points of vigilance to be dealt with as a priority in order to meet the objectives set.
As a result, supply teams will save time and be more efficient and responsive to supply chain contingencies. This can be leveraged through better supplier relationship management and the development of digital and analytical skills of the teams.
e-SCM, a tool for supply chain managers
To achieve their transformation with agility, brands will have to accelerate their digitalisation, rethink their procurement process and their internal/external organisation model.
Supply chain managers will be able to rely on the e-SCM solution to secure supplies, manage production planning and guarantee product traceability, in consultation with suppliers.
See the McKinsey & Co report: "Revamping fashion sourcing: Speed and flexibility to the fore".
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