Excellence in Apparel - Digital Sourcing

A webinar conducted in association with BLUE KAKTUS

This video is an excerpt from the webinar held on July 9th 2020, in association with BLUE KAKTUS where Anindya & Gunish discuss how fashion companies should digitise their sourcing functions to move it to the next generation

Digitisation is the key to the future of fashion retail. Many brands & retailers have been making immense efforts towards adopting a successful digital backend and create an agile supply chain.

In this article I will discuss

  • Why we should go digital
  • Benefits of digitisation
  • Challenges faced in digital transformation 
  • How to overcome the challenges
  • Vendors & digitisation

These topics are further elaborated & discussed in the video.

Let’s start with the first & foremost question that comes to anyone’s mind:

WHY SHOULD BRANDS GO DIGITAL?

In the past 3-4 years the focus has been on romancing the customer through digital platforms in the front end. While the front end has leaped forward in digital transformation, the backend is still playing a catch up game. Even today, the back end is dependant on excel sheets transferred over emails, phone calls, written notes etc. Can an analog backend support a digitally driven front end?

The apparel supply chain, with its disaggregated players is highly dependant on transparency & trust for smooth functioning. Seamless flow of information is the only way this can be built into the supply chain.

Digitisation bridges this gap making it possible for information to flow at the click of a button.

The core promises of any sourcing function are; OTIF, Cost & Quality. Today, these are managed by different teams on different platforms making it difficult for the information to be transparent and the process seamless. Digitisation creates a unified platform to manage this data & creates a single source of truth, thereby enabling thr backend to be able to service a digitally driven front end.

Apart from the broader goal of servicing a digitally driven front end, digitisation of the backend has many benefits which help the organisation in its end goals of top/bottomline too.

WHAT ARE THE BENEFITS OF DIGITISATION?

  1. Sourcing takes care of two kinds of activities; basic clerical work & value add work. Digitisation automates many of the basic activities thereby reducing the sourcing merchandisers workload drastically. This allows the sourcing team to focus on value addition in terms of getting better costs, more innovations & product re-engineering, thus adding value to the organisation as a whole.
  2. Better governance is another key benefit of digitisation. For e.g in any sourcing function data is maintained across multiple platforms, sometimes on emails, sometimes on excels residing on different laptops of different merchandisers. With no single source of data available, there is data loss & overlaps leading to inefficient functioning & lack of transparency. Digitisation creates a single platform which efficiently is able to track the information flow seamlessly and leads to better governance of all processes & data points.
  3. With the change in consumer behaviour, more and more brands are shifting to a demand based model of supply chain. This calls for a tremendous improvement in speed to market. Digitisation not only helps tracking, but also in understanding the go to market cycles & the time taken for manufacturing the goods.With better understanding brands are able to switch to a demand based model & segregate their supply chain as well.
  4. In any organisation, a lot of time is mis spent on petty issues between different teams. We all have witnessed such discords between internal teams leading to delays in the overall functioning of the supply chain. With digitisation, information is transparent & available on a single platform. This saves upto 20% of time for everyone engaged in this process.

Clearly digitisation has many advantages: better governance leading to a more dependable & predictable delivery cycle, better committed brands & delta improvement in sales. This directly impacts the top/bottomline of the organisation.

Digitising Fashion Sourcing

Digital transformation is not easy. It requires an overhaul of the processes & large scale change across the organisation and its stakeholders.

In a large organisation it is a mammoth task, one which cannot be done in one go. It’s very important to break down the project into multiple smaller projects & start the implementation of digitisation one step at a time. This helps in slowly transforming the organisation & allowing it to iron out any creases.

SOME OF THE OTHER CHALLENGES FACED IN DIGITAL TRANSFORMATION ARE;

  1. Cost vs Benefit : Many organisations look at digitisation as a cost. It’s important that they clearly define the purpose & measure the benefits that the organisation is getting against the costs incurred.
  2. Building conviction in an organisation: understanding why it needs to digitise & the benefits it will derive from it.
  3. Top management drive: Digitisation calls for a complete overhaul of processes. In many cases multiple stakeholders getting connected on a single platform; from vendors to designers to quality etc. For a change at this scale, top management drive is very important. A rigorous review process, one driven by top management is very important for an organisation to successfully manage this change.

Any change is difficult, but not impossible. These challenges can be overcome by following simple techniques in managing this change;

  1. Define a clear vision and articulate the vision clearly to the stakeholders. Once the stakeholders understand what you are doing & why you are doing it, the digitisation journey becomes easy.
  2. The right technology partner, who understands the business is the key to a successful digital journey.
  3. Have clearly defined, measurable & short term milestones. This helps in understanding the business impact timely & keeps the team energised and moving.
  4. Digitisation cannot be done by one person, identify leaders within the team who drive this change at different levels in the organisations. These leaders should be recognised & rewarded for their efforts too.
  5. Celebrating the achievement of every milestone is vey important. This motivates the team & keeps them moving forward.

Digitisation of the supply chain needs keen participation from the vendors & suppliers too. With digitisation coming into play, more & more activities will shift to the vendors. From quality audits to deliveries, it will become the sole responsibility of the vendor. Digitisation will allow for transparency in data, and building of a trust based supply chain. Vendors who have their own dashboards & allow companies to log in and check status of orders will be at a benefit here. This makes them transparent & dependable, in turn leading to more orders & higher business.

In conclusion, I would say digitisation is the future. While the change requires a top management drive, the responsibility lies on each and every stakeholders shoulder.

 

RELATED TOPICS:#Apparel,Fashion,Virtual Merchandiser,Supply Chain,brands,fashion industry,Anindya,Brand Categorisation,supply chain strategy,fashionbrands,digital,digitisation,segmentation,Sourcing Strategy,Cost Strategy,Co-Create,Virtual Sourcing,Distance Quality,Digital Strategy,Anindya Ray,Going Digital Articles

With 30+ years in the fashion industry leading diverse functions like Buying & Merchandising, Design, Marketing, Sales, Sourcing & Quality, being associated with premium brands like US Polo Assn, Flying Machine, Arrow, Calvin Klein, Allen Solly etc. This collaborative blogspot is Anindya's effort to contribute back his thoughts and to provide a medium to industry's other like-minded professionals like him to share their experiences with a larger interested audience.

21 Comments

Anindya, Fantastic article that not only highlights the 'benefits of the digitization of the fashion supply chain' process but also importantly talks about the 'must haves' in any change management scenario >> 1) setting a clear vision for change and communicating it to rank and file, 2) senior management focus on implementing this change (top down approach), 3) constant review and a reward mechanism that celebrates small wins and important achievements along the journey of change and transformation, motivating BU teams involved in the rollout/ adoption of new tech (change). My thinking is that in addition to this, it is critical to make change 'all inclusive' and thus all pervasive in the organization. In line with this thought, upskilling folks/ end users on new platforms usage only helps adoption by end user of the platform in time- for e.g. data entry, cost / order reconciliation, tracking production journey and order status etc etc. Identifying Use cases at the very beginning- at change management blue print stage; helps identify upskilling challenge that the program will require to address to achieve adoption of new platforms @ scale. Huge learning from this article.

Your webinar on "Excellence in Apparel-Digital sourcing" was a hit, where you well spoken on the importance of digital transformation of sourcing function. Agreed that businesses are still managing procurement with spreadsheet stitched together haphazardly across the business and human error inevitably brings the whole thing toppling down every so often. As competition in the digital economy increases and margins are getting tighter, it's not an area that organization are wiser to ignore for much longer.You very well explained the challenges and benefits of digital transformation. It was a good read Mr. Anindya.

Anindya, It was an absolute privilege to conduct the webinar with you. your insights were great. Digital is EXTREMELY important. Its the way companies will be able to meet the changing needs of customers, reduce costs as well as quickly reach to changing market trends. Apart from this, through digitization one can seamlessly connect with your supply chain in order to reduce bottlenecks in decision making and providing 360 degree transparency.

After reading these articles I could really correlate how digitization is transforming the working style for us and of course this will become bench-marking for various other industries who are looking forward for such initiatives. Well thought on all the lines of digitization

Hi sir, very well said, digitization is essential for present conflict world, it is a new vision for profit and trust. For surviving in industry business digitization is must. The word single source of Truth covers all points.. Thanks.

The very idea of taking digitization in bits and pieces is the key rather that looking it at one single piece .The webinar was really an eyeopener for the ones who are really looking this side of improvement. Glad to hear the various aspects of digitization.

Hi Anindya , various aspects of garment activities were covered and one interesting point you made was 3D. How is arvind looking this aspect as most of the road shows can go digital and of-course reduce sampling cost and followup.

With more companies adopting the digitization platforms, Its important that the manufacturer's also look this as a scope of there journey. Post covid this becomes the need and a right time to initiate.

The hurdles of implementing system is not a cakewalk. It really needs a vision with stringent supervision. Digitization is a journey , you keep unlocking yourself on every move, This is actually a team building effort. Well pointed by anindya, that milestone achievements must be targeted and celebrated.

Hi Shipa , Thanks for adding up a video and the look of the page is different and nice compared to last editions. Well designed Thanks for taking up the ideas and implementing.

Am proud that quality audits are no more a manual record. For 12 years I have made numerous reports manually either on paper or excel. Now with Arvind going digital its a matter of minutes to generate a report. Adding to this I have a huge ranges of analysis. This thought process itself is a great changeover in a matter of months of implementation. Thanks Anindya.

Anindya, well spoken on how technology would help digitize many activities. The point made on people change and how the knowledge is kept within the organization. Very valid point on data security and data lost.

Many companies ask the ROI of Digitization , it was nicely put in perspective . There would be a benefits top-line and bottom-line with having transparent data of flow. Also the capacity handling of number of styles a sourcing can handle.

Interesting facts Anindya on Sourcing team being Predictable and Dependable so that the business teams takes the benefit and commit to the customer. The key is to measure g our-self's to what is being done so that prediction becomes easy.

Hi Anindya I was part of the webinar and found interesting points you have mentioned. One Point especially on the Supply chain where front end is gone digital and Back end is still Analog. Bridging this gap is very important

Digitalization is Very powerful tool to analyzing the various data with in a platform, this is really very interesting article use ful.

It's very insightful. Digitalazation is useful for automation and data analytics. It's help to bridge the gap in various place an organization with collecting data from various sources.

This topic was debated at length in your "Editorial" comments between Ravi Ravuri and myself.

Digitization is the requirement and ease of use is the tool to mitigate the fear of change. A Digital tool which can adapt to the DNA of the company is the need of the hour. Sir, you have captured the problems and solutions very well. Having worked in sourcing extensively and now into Digitization, you come across similar fear of the unknown (first instinct)which has to be tackled with care and a vision of bridging the gap in various silos in an organization and company will have to do if it wants to survive in changing world.

Very interesting topics, but it's important how the vision of digitization is taken across supply chain and top management reviews and provides feasible solutions The very fact that how this change management is driven? 1. Does digitization means the same across cross-functional team 2. Do they align and see the benefits? 3. How long will it take this vision in order to adapt and becomes a part of DNA? It must take a real passion to make this overall conglomeration and its not an individual task but a team effort. Very few leaders can create this opportunity, amid setting up of investment and building logics and envision this transformation

Hi Anindya, you have covered almost every point on why there is need for digitisation of backend. It is the need of the hour. Front end optimization is transforming in a quicker pace but backend is not even thinking about it. To be successful backend digitisation completes the circle. One main bottleneck for continued conventional operation is the mindset of the management, who still thinks backend digitization is not necessary. Young minds should get into management or present management should be educated on the benefits of digitisation.

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