GMPC’s Post

The apparel industry is reimagining its value chain to address ongoing volatility and rising complexities. McKinsey's latest survey of apparel CPOs highlights the need for brands to enhance efficiency, resilience, and sustainability. Key themes include optimizing sourcing processes, rebalancing the global supply footprint, forging strategic supplier partnerships, and leveraging digital solutions. By focusing on these areas, brands can turn supply chain challenges into competitive advantages. #SupplyChain #ApparelIndustry #Sustainability #DigitalTransformation #Resilience #Efficiency #McKinseyInsights #FashionIndustry #StrategicPartnerships Read more: https://ow.ly/BEl550S6Cvh

The apparel industry is reimagining its value chain to address ongoing volatility and rising complexities. McKinsey's latest survey of apparel CPOs highlights the need for brands to enhance efficiency, resilience, and sustainability. Key themes include optimizing sourcing processes, rebalancing the global supply footprint, forging strategic supplier partnerships, and leveraging digital solutions. By focusing on these areas, brands can turn supply chain challenges into competitive advantages. #SupplyChain #ApparelIndustry #Sustainability #DigitalTransformation #Resilience #Efficiency #McKinseyInsights #FashionIndustry #StrategicPartnerships Read more: https://ow.ly/BEl550S6Cvh

The apparel industry is reimagining its value chain to address ongoing volatility and rising complexities. McKinsey's latest survey of apparel CPOs highlights the need for brands to enhance efficiency, resilience, and sustainability. Key themes include optimizing sourcing processes, rebalancing the global supply footprint, forging strategic supplier partnerships, and leveraging digital solutions. By focusing on these areas, brands can turn supply chain challenges into competitive advantages. #SupplyChain #ApparelIndustry #Sustainability #DigitalTransformation #Resilience #Efficiency #McKinseyInsights #FashionIndustry #StrategicPartnerships Read more: https://ow.ly/BEl550S6Cvh

Compared with industries such as consumer packaged goods, where disruptions are usually felt within days or weeks, demand signals in apparel may not reach tier-two and -three suppliers for months. At the peak of consumer demand during pandemic lockdowns, suppliers struggled to add capacity fast enough. When consumer demand dropped over the past year, retailers and wholesalers found themselves with massive excess inventory, while suppliers faced order cancellations and struggled to deal with low utilization. McKinsey’s latest State of Fashion report suggests the industry could endure the peak impact of ongoing demand shifts this year. This delay heightens the risk of potential supply shortages and disruptions when demand rebounds. https://lnkd.in/ez-RSuD7

Our latest apparel CPO survey highlights five themes shaping the industry. Brands embracing selected best practices can turn their supplier base into a competitive advantage.

🚀 McKinsey's latest apparel CPO survey highlights five key themes shaping the industry's future! Brands that adopt these best practices can transform their supplier base into a powerful competitive advantage: 1️⃣ **Aiming for efficiency amid demand volatility**: With fluctuating consumer demands, efficiency is more critical than ever. Top brands are optimizing operations to stay agile and responsive. 2️⃣ **Rebalancing the footprint**: Companies are reevaluating their global manufacturing footprints, balancing cost, risk, and proximity to key markets for a more resilient supply chain. 3️⃣ **Restructuring strategic relationships with manufacturers and suppliers**: Strengthening partnerships and fostering closer collaborations with key suppliers ensures better alignment and mutual growth. 4️⃣ **Reaching sustainability ambitions and pressures**: Meeting sustainability goals is no longer optional. Leading brands are integrating eco-friendly practices and materials, responding to increasing environmental and regulatory pressures. 5️⃣ **Enabling efficiency and collaboration through digital solutions**: Digital tools and technologies are revolutionizing the supply chain, driving efficiency, transparency, and enhanced collaboration. By embracing these themes, brands can navigate the complexities of today's apparel market and secure a competitive edge. 🌟 #ApparelIndustry #SupplyChain #Sustainability #DigitalTransformation #Efficiency #McKinseyInsights

For the 7th time since 2011, we have conducted our comprehensive survey involving leading chief procurement officers (CPOs) from the fashion industry, assessed sourcing behaviors, and synthesized our own observations from organizations we work with, to distill the key themes shaping the fashion value chain.   In this year’s report, we identified five major themes shaping sourcing in the industry, including efficiency, supply chain resilience, sustainability, leveraging technology, and building closer supplier relationships. The report also lays out actionable strategies to improve sourcing operations towards cost reduction, sustainability, and digitization.   You can read the full report here: https://lnkd.in/g5kPC_kD

Headache for Apparel Brands: 30% Return Rate! Unexpected returns can cripple profitability, especially when returned items are damaged and can't be restocked. Here's where refurbishment comes in as a hero! Swiftly restoring returned clothes minimizes inventory gaps and keeps those sales flowing. ️ But it's not just about efficiency. Fast turnaround times for refurbishment also mean a better customer experience. Nobody wants to wait ages for their new favorite outfit! The bottom line? Integrating refurbishment into the supply chain is key for apparel brands to optimize stock turnover, minimize losses, and keep customers happy. ✅ What are your thoughts on the role of refurbishment in managing apparel returns? Have you seen any innovative approaches to this challenge? #fashion #retailefficiency #customerservice

🌎 Thank You for Participating in The 4th cycle of the TIWW’s purchasing practices metric! A heartfelt thank you to everyone who took the time to complete the Better Buying Partnership Index™ survey which powers the TIWW purchasing power metric for 2025. Your valuable input is helping to build a future where purchasing practices across the garment and footwear industries are more fair, transparent, and sustainable. Together, we’re shaping the way brands and manufacturers collaborate, ensuring that both sides are held accountable and that supply chains operate on principles of shared responsibility and mutual respect. The findings of this survey will have a real impact, and TIWW purchasing practices metric will be unveiled at the OECD Forum on Due Diligence in the Garment and Footwear Sector in February 2025. 🔗 Learn More https://lnkd.in/d5vK5s7U Thank you again to and let’s continue to push for positive collaborative change! Follow us for more updates or head to our website to learn more: https://lnkd.in/erkq7ri Cascale Fair Wear Foundation Ethical Trading Initiative #TIWW #PurchasingPractices #SharedResponsibility #SustainableSupplyChains #BetterBuying #OECDForum #FairerFutures #SupplyChainInnovation #Partnerships

One of the common concerns for apparel brands is the unexpected surge in return rates, which can sometimes reach as high as 30%. Upon receiving returns, the apparel items are often found in a crumpled or damaged state, rendering them unfit for restocking. Swift refurbishment becomes crucial for replenishing stock efficiently. Moreover as a consumer, how you receive your favorite clothing, forms a big part of the experience your brand is delivering. The faster the turnaround time, the higher the throughput, leading to reduced inventory holding costs. Failure to address this revenue leak can result in significant losses for brands. Therefore, having refurbishment capabilities integrated within the supply chain is essential for optimizing stock turnover and minimizing financial impact.