Sourcing Journal Radio

If one proposed piece of legislation passes, fashion brands could soon encounter a harsh reality that could cost millions if their supply chain isn’t up to snuff.

While brands have already had to wade through significant and often confusing legislative changes in 2022 via the Uyghur Forced Labor Prevention Act, they may need to freshen up on the terms of the recently introduced Fashion Sustainability and Social Accountability Act, commonly referred to as the New York Fashion Act.

Despite the locality its informal name implies, the bill carries vast global implications, Mark Burstein, executive vice president and industry principal at supply chain software provider Logility, explained in a conversation with Sourcing Journal founder Edward Hertzman.

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When it comes to moving fashion goods around the world, the logistical challenges are not easing up. Zero-tolerance Covid measures have parts of China under a prolonged lockdown. Labor shortages and conflicts are grinding the gears on the West Cost of the U.S., as negotiations with the port workers get off to a slow start. on top of it, capacity, congestion, and pricing continue their uncertain dance. Any one of these issues would be challenging on its own, but collectively, it’s a perfect storm of chaos.

Vincent Iacopella, executive vice president growth and strategy at freight forwarder Alba Wheels Up, sat down with Sourcing Journal founder and president Edward Hertzman to discuss the issues and uncertainties, and help chart a path forward.

 Watch the fireside chat to learn: 

·      If there is any reprieve on the horizon regarding dealing with China.

·      How geopolitical conflicts like the war in Ukraine is impacting the global flow of goods.

·      What’s happening domestically regarding negotiations between the International Longshore & Warehouse Union (ILWU) and Pacific Maritime Association (PMA)

·      What inflation and a cooling off of consumer demand means for the push-pull of congestion and capacity, and where to go from there.

·      How technology can help companies alleviate some of today’s most pressing logistics issues.

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The supply chain bottlenecks that have persisted over the past year have led many brands to worry about delivery delays and rising freight and raw material prices. And while getting the shopper the product swiftly is a top priority, brands can’t afford to ignore quality assurance issues that can occur from the source to the store.

Throughout the Covid-19 pandemic, footwear brands in particular have wrestled with this problem, as more orders are delivered with the incorrect soles, the wrong color or even a different upper material than expected.

In a recent chat with Sourcing Journal founder and president Edward Hertzman, Paul Bridge, deputy vice president of global footwear services at testing, inspection and certification company SGS, identified the three major issues in footwear production today.

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Fashion brands and retailers might use stylish products, hip branding and slick marketing to set themselves apart to consumers, but on the supply chain side of things, differentiation excellence takes a logistical turn. Here, seamless technology and scale economics have emerged as major competitive differentiators, and it’s often where brand and retail successes are won or lost.

 In this Fireside Chat, Chirag Patel, president of supply chain technology company Bamboo Rose, joins Shaker Natrajan, chief supply chain officer at American Eagle Outfitters, to discuss the role technology plays in driving supply chain agility and resilience and why it's worth the investment.

Watch the video to learn:

·      How retailers can shift the perception of the supply chain organization from a cost center to a strategic differentiator

·      The role technology plays in driving supply chain transformations and economies of scale

·      How American Eagle Outfitter’s partnership and collaboration with its supply chain partner community via its Edge Network drives supply chain visibility and agility 

·      How supply chain synchronization (i.e., 2nd and 3rd tier suppliers and international logistics partners) supports great customer experiences even amid an optimized domestic distribution network

·      How supply chain agility and responsiveness across domestic and international networks enabled American Eagle Outfitters to introduce new products and brands to market at record speed to keep pace with consumer trends and expectations 

·      How retailers can surmount their old mindsets to adopt robust software for managing supply chain fluidity

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Fashion companies have not typically had full visibility into their supply chains. But in response to increasing calls from consumers for transparency, the apparel industry is aiming toward more oversight of each step in the production process.

“The textile supply chain is inherently filled with opacity because that provided the flexibility and cost advantages that manufacturers could leverage to gain business and do volume. That is changing,” said Marc Lewkowitz, president and CEO of Supima.

One of the forces currently pushing business on this path is the need to verify the provenance of raw materials to demonstrate ethical labor and environmental practices. Another incentive is the desire to tell an authentic Made in America brand story.

In a recent conversation with Sourcing Journal president Edward Hertzman, Lewkowitz and apparel brand Save Khaki United’s creative director David Mullen discussed how both their companies’ Made in America foundations allow for greater transparency.

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“If you can't measure it, you can't improve it,” said Paul Magel, president, application solutions group of software solutions company CGS. “And if you don't have the visibility, you don't even know what you're measuring.”

Even a fully transparent supply chain has so many moving parts and independent “bubbles” that need to be digitalized and linked for visibility and real-time tracking. It’s all about collecting data—and using it effectively.

The urgency doesn’t stop with direct suppliers, either, as vendors increasingly sub-contract out work, putting overall compliance at risk. When it comes to visibility, from tracking worker efficiencies across the world to inventory allocation across DTC and wholesale channels, a solid cloud-based software system will be the backbone of any enterprise for 2022 and beyond.

Watch the fireside chat to learn:

·     How supply chain visibility can better manage product quality and costs 

·     How one of CGS’ clients reduced non-productive “off-standard time” by 90 percent

·     How companies can prioritize where to focus their dollars when aiming for visibility

·     What area of the supply chain is often overlooked but can reap rewards if better tracked 

·     Why saying ‘what we don’t know can’t hurt us’ is no longer an excuse

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With so much “haziness” in today’s apparel supply chain, Sorona® is determined to give brands and consumers alike the confidence that they are getting high-performance fabric backed by true sustainability claims.

In launching the Common Thread Fabric Certification Program for Sorona® in 2020, DuPont Biomaterials made this a reality. Those interested in certification must submit fabric swatches to a laboratory for testing in order to gain a certificate for a minimum level of Sorona® bio-based content, as well as quality and performance, which then results in access to approved logos, marketing materials and more.

For supply chain partners, the program goes back to one imperative, according to Alexa Raab, global brand and communications leader at Sorona®—educating the consumer.

Raab spoke with Sourcing Journal founder Edward Hertzman about Sorona's Common Thread Fabric Certification Program.

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Apparel demand has reached a new level of unpredictability. During the pandemic, the purchasing behavior pendulum has swung from weak sales amid early lockdowns to revenge spending in 2021. Historical data is therefore no longer a strong predictor of market performance.

Retailers are also contending with supply chain disruptions, including expanded lead times and shipping schedules that threaten on-time arrivals of goods. The major risk has shifted from overstocks to understocks, and retailers have adjusted their buying strategies accordingly. In AlixPartners and Sourcing Journal’s recent “2021 Fashion in Focus” survey report, industry executives said they were planning for delays by buying earlier and ordering larger volumes of goods. But buying far out essentially means “buying blind,” explained Joe Schmitt, a managing director at AlixPartners.  

As the industry adapts and learns from pandemic pressures, there are still uncertainties in how to navigate planning.

“I don't think anyone has a clear game plan moving forward around what exactly they need to do,” Schmitt told Sourcing Journal founder and president Edward Hertzman in a recent podcast conversation. “I think the theme is really, ‘How can we be as flexible as possible while still being differentiated in the market?’ And that balancing act is what everyone's trying to figure out right now.”

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Part of the appeal of producing garments in Peru comes from the homegrown natural fibers, including cotton and alpaca. And while these raw materials are attractive for their quality, they also boast strong sustainability credentials.

As Rizal Bragagnini, executive director of the Peru Textiles Exporters Association, explained, these fibers have the added benefit of durability. For instance, in tests, extra-long staple pima cotton retains its color through at least 140 wash cycles. If garments can last and look better for longer, their impact to the environment is lessened.

This is the message of Peru Textiles’ latest marketing campaign. With the tagline “Find the true value behind Peru Textiles,” the promotion invites buyers and shoppers to explore Peru’s sustainability and quality.

Peru Textiles is aiming to make its production even more sustainable. In 2020, the exporters association set out to make Peru the most sustainable apparel production market in the world. Bragagnini noted that this quest to be the leader in sustainability is a work in progress. During a recent discussion with Sourcing Journal founder and president Edward Hertzman, Bragagnini and Mario Ocharan, director of export promotion at tourism and trade agency PromPeru, detailed the efforts underway to move Peru’s apparel sector in this direction, including renewable energy sources and carbon reduction.

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Following a challenging pandemic period for the global garment industry, Peru’s apparel sector is bouncing back. Exports are up over 2020, and according to Mario Ocharan, director of export promotion at trade and tourism organization PromPeru, the nation expects shipments to meet or exceed 2019 levels.

In a chat with Sourcing Journal founder and president Edward Hertzman, Ocharan and Rizal Bragagnini, executive director, Peru Textiles Exporters Association, spoke to the state of Peru’s textile trade and the role that the garment industry is playing in Covid-19 recovery.

While the U.S. remains a significant export market for Peru, representing about half of all trade, Peru has increased its business in other parts of the Americas such as Canada, Colombia, Chile and Mexico. Nearshoring has been gaining ground for some time, but the South American nation has become even more appealing amid transportation disruptions.

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