Strong collaboration and data-driven systems are key to building resilient and adaptable supply chains. That says Marian Temmen, Senior Director of Supply Chain Transformation and Innovation at PHV Crop, the US fashion group behind the Calvin Klein and Tommy Hilfiger brands.
Speaking at the PI Apparel Supply Chain Forum, held May 30-31 in Amsterdam, Temmen said that companies need to adopt holistic, integrated and sustainable supply chains if they want to thrive and adapt to rapidly evolving fashion trends
“We have this traditional way of doing things that goes back 20, 30 years. But that won’t work in the future, it won’t get us anywhere,” says Temmen. The “traditional” mindset with a “brilliant marketing object at the top” and the supply chain as a “back office function that only delivers and focuses on cost, margin, availability and inventory” is no longer effective. Better communication, more transparency and “strong relationships” with the sales team and delivery companies beyond the first level are now fundamental, the expert said.
In addition, one needs to focus more on the education and training of employees so that they understand the dependencies between the different business areas. “Education is key,” said Temmen. “I think it will be very helpful and beneficial to have experts from the supply chain venture into the commercial side of the business and vice versa, so that there is real collaboration and an exchange of ideas and thoughts.”
Data drives sustainability
Temmen also highlighted the importance of building sustainability into the cornerstones of supply chains. He emphasized that it is a long-term investment that will eventually pay off. “It’s not an either/or,” he said – or to put it another way: sustainability and profitability can coexist. “I think in the past it was more about the supply chain and a little bit about sustainability,” says the expert, “but in a few years it will probably be an intertwined area.”
Nearshoring was one of the examples he gave where companies produce closer to home. This makes them more agile and responsive as production takes place closer to the point of consumption, thereby reducing the carbon footprint.
Temmen also believes that artificial intelligence will play an important role in improving efficiency within supply chains while promoting sustainability. For example, AI-based tools for predictive needs assessment could make more accurate predictions based on historical data, ultimately reducing the massive overproduction in the fashion industry.
This article was published on FashionUnited.com. Translation and editing: Barbara Russ