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23,367 articles · latest first · 19,033–19,056

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Insight15 Oct 2014

Addressing hidden supply chain costs

Hidden costs in the textile and clothing supply chain and managing risk were key topics at yesterday’s Association of Suppliers to the British Clothing Industry conference held in Leeds, UK. While securing suppliers that can deliver the required quality at the right time and price is the goal of most buyers, being too focussed on achieving the lowest price in negotiations can have unintended consequences. These include missed opportunities to sell due to long delivery times from distant manufacturing destinations, quality and compliance issues. Lack of trust between buyer and seller can lead to corners potentially being cut with the resultant effect on quality, which can undermine customer satisfaction, leading to further lost sales. Non-compliant factories may be exposed by the media leading to undermining of customer trust in the retailer and lost sales. It is of concern that some retail buyers are proud of the fact that they regularly change supplier, possibly even annually. While it is important to review suppliers to ensure efficient running of the retail business and maximise margins, such a strategy or regular change means suppliers are unlikely to build a collaborative relationship and go the extra mile. As competitive pressure grows for faster and faster delivery times, a good relationship with suppliers and other stakeholders in the textile and clothing supply chain can be vital in achieving these. Technology also has an important part to play in improving efficiency of the supply chain. It is increasingly possible to monitor where a consignment of goods is in the world and more accurately forecast delivery time. Software is available that covers aspects of the supply chain including yarn development, product planning and design, production and sales promotion. Virtual sampling, for example, has the potential to significantly cut sampling times, facilitating faster delivery of product to market. As labour costs rise, there is also a school of thought that investment in textile machinery, particularly ways to automate processes currently done manually, will grow and textile manufacturing could become more akin to automotive manufacturing, for example. In an increasingly competitive market, retailers undoubtedly need to look at their hidden costs and with an increasingly complex global scenario, software seems increasingly necessary in order to be able to do this. Where suppliers have the technology and know-how, they could also communicate these to retailers, emphasising where they add value, as part of their marketing strategy.

YarnsFilamentManufacturing Technology
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