Textile Insight

ontemporary sourcing strategies increasingly reflect an "in with the new, out with the old" approach as executives contend with industry- wide disruption. With consumers shopping every hour of every day, the need for speed to market is top-of-mind and managers are keen on transitioning to agile supply chains built on strong relationships with key suppliers designed to keep pace with market shifts. Heightened efforts that focus on collaboration, innovation and communication throughout global sourcing channels also signal fresh thinking about how to create faster, better models for the future. Sustainability, too, plays a role going forward. New technologies that enhance transparency, tracking and data, in tandem with comprehensive corporate responsibility programs that have broader eco and social impact than previous initiatives are coming to the forefront, as it becomes clear that doing "the right thing" is also the right thing for business success. "Agility is the future, it's all about speed and flexibility," said Jose Suarez, founder and CEO, Impactiva, a quality assurance company in the leather, footwear and apparel industry. "Our supply chain is still in the 1950s despite all the changes in the world. You need to take an innovation perspective. The challenge is to transfer from traditional to advanced manufacturing." In recent conversations with adidas execs, Suarez said he learned that "in the next three years, 80 percent of adidas product will be produced in less than 45 days." New tech enables this. "Global trade is evolving dramatically and it's causing companies to change to a digital world and this is so important in sourc- ing," said Gary Barraco, director, global product marketing, Amber Road, a trade management software provider. "Using tech in the digital world can enhance speed to market." Suarez and Barraco par- ticipated in panel discussions during the recent AAFA Sourcing Conference in New York City. The two-day event, titled, "Supply Chain Innovation: The Right Course," provided an over- view of the state of sourcing, an update on the latest trade developments and analysis. The event drew a good crowd of high-level execs from a range of brands including: L.L.Bean, New Balance, VF Corp, Spanx, Under Armour, Ralph Lauren, Renfro and several supply chain specific software tech firms. Changing the Mindset In a panel discussion on "New Horizons in an Innovative World," Suarez told the audience, "Today it is a 'pull/push' chain, not a 'push/pull' model. A paradigm shift is occurring." He encour- aged people to work with fewer factories and deepen those relationships. "More volume per factory gives leverage and creates a more agile supply chain that is built on a relationship, not a transactual arrangement." According to Despina Papdopoulous, founder and CEO of Principled Design, today's complex systems require an "open innovation" model that fosters collaboration within the company itself and the company's supply chain. She said, "We need to change the mindset. Traditionally the model has been for everything to be in its own silo. That is not innovative." To make her point, Papdopoulous, added: "Culture eats strategy for breakfast." Pano Anthos, founder and managing director, XRC Labs, acknowledged the need for change and that these days, "the customer is the chan- nel. And that requires a mind-shift." XRC Labs is a New York City based innovation accelerator for the next generation of businesses in the retail and consumer goods sector. Athos and others maintain that brands need to re-think the design cycle to become more agile and flexible, as well as to generate ways to reduce the decision-making process. "Using new software tech in the digital world leverages itself for increased speed to market," said Barraco during the panel on "Trends, Shifts & Looking Ahead." Barraco's Amber Road business spe- cializes in supply chain management software. Panelist Marcus Chung noted that Stitch Fix, where he is director of vendor relations, doesn't even have designers. "We are client focused to be nimble. At Stitch Fix we under- stand supplier capabilities, and know what a supplier is good at, as well as what it is not good at." Stitch Fix is enjoying market success with VALUE $3 TRILLION EMPLOYS 75 MILLION WORLD'S GDP ESTIMATED 2% SUPPLY CHAIN | AAFA CONFERENCE Agility & Sustainability Re-Define Supply Chain Model. By Emily Walzer 46 • Textile Insight ~ July/August 2017 textileinsight.com Sourcing's New Dimensions C THE GLOBAL APPAREL INDUSTRY STATS

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