digitalization of the supply chain overview march 3 2017 · pdf filepotential to reduce that...

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DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Digitaltechnologiesaretransformingtheapparelsupplychainbychallengingoldoperatingmodelsandunleashingnewopportunities.Thisisthefirstinaseriesofreportsthatwillinvestigatethedifferentaspectsofthedigitalizationofthesupplychain.Astheintroductiontotheseries,thisreport:

1) Providesanoverviewofhowtheapparelsupplychaincanbetransformeddigitallyandtheadvantagesthatdigitalizationbringstothevaluechain.

2) Looksatthevariousstagesoftheapparelsupplychain—design,manufacturing,distributionandsales—andillustrateshowdigitaltechnologycanbeappliedtoeachstage.

3) Highlightstheimportanceofaholisticapproachtodigitalization,whichshouldincreasethesynergiesandinteractionbetweenthedifferentstakeholdersalongthesupplychain,sothattheefficienciesreachedateachstagewillbereflectedpositivelyonthesupplychainasawhole.

Deep Dive: An Overview of

the Digitalization of the Apparel

Supply Chain

Deborah Weinswig

Managing Director,

Fung Global Retail & Technology

[email protected]

US: 917.655.6790

HK: 852.6119.1779

CN: 86.186.1420.3016

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TableofContents

ExecutiveSummary.........................................................................................................................................3

Introduction....................................................................................................................................................4

AHolisticDigitalSupplyChain.........................................................................................................................4

ALeanerandFasterDigitalProcess.................................................................................................................6

HowtoDigitallyTransformtheApparelSupplyChain.....................................................................................8

ProductDesignandDevelopment:3DSimulationSavesTimeandMoney...........................................................8

Production:DigitalTechnologyIncreasesPrecisionandEfficiency.......................................................................9

Distribution:SmootherOperationsThankstoAutomation.................................................................................10

Sales:In-StoreTechnologyHelpstoIncreaseSalesConversion..........................................................................11

AfterSales:DigitalTechnologyEncouragesBrandEngagement..........................................................................13

KeyTakeaways...............................................................................................................................................14

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ExecutiveSummaryDigitaltechnologiesaretransformingtheapparelsupplychainbychallengingoldoperatingmodelsandunleashingnewopportunities.Theapparelsupplychainiscomposedoffourmainstages—design,manufacturing,distributionandsales—allofwhichcanberadicallytransformedbydigitaltechnology.Digitalizationcanbeappliedinthedifferentstagesofthesupplychaininvariousways:

• Thedesignstagecanmovefromapaper-basedprocesstoafullydigitalprocessthroughtheuseof3Dfashiondesignsoftware.Suchashiftwouldminimizetheneedfordesignerstoshipphysicalsamplestoproducersandreducethelengthoftimeneededtomoveanitemfromdesigntomanufacturing.

• Intheproductionstage,manufacturerscanemploymachinerythatusesdigitaltechnologytoincreaseprecisionandefficiency.

• Inthedistributionstage,companiescanuseInternetofThings(IoT)androboticstechnologiestorunsmootherpickingandpackingoperationsandcoordinatedeliveryofitems.

• Inthesalesstage,retailerscanusein-storetechnologysuchassensorsystemstotrackandanalyzeconsumers’behaviorinordertoimprovesalesconversionrates.

Thedigitaltransformationofthesupplychainhelpsimproveefficiencyateachstage,resultinginaleanerprocessoverall.Digitalizationprovidesseveraloperationaladvantages,includingincreasedspeed,flexibilityandtrust,andbetteruseofresources.Theapplicationofdigitaltechnologieshasthepotentialtoreducethetimeittakestomoveanitemthroughthesupplychainby48%,accordingtoindustryexpertsatsourcinggiantLi&Fung,asistercompanyofFungGlobalRetail&Technology.

However,giventheinterconnectednatureofthesupplychain,inordertomaximizethebenefitthatdigitalizationbrings,companiesmustensurethatthevariousphasesofthesupplychainworkinsynergy.

Thisreportisthefirstinaseriesofreportsthatwillinvestigatethedifferentaspectsofthedigitalizationofthesupplychain.Astheintroductionto

theseries,thisreportprovidesanoverviewofhowtheapparelsupplychaincanbetransformeddigitallyandtheadvantagesthatdigitalizationbringstothevaluechain.Thereportanalyzesthefourmainstagesoftheapparelsupplychainandillustrateshowdigitaltechnologycanbe

appliedtoeachstage.

Thedigitaltransformationofthesupplychainhelpscreatealeanerprocessbyimprovingefficiencyateachstage.

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IntroductionInapparel,asinmanyotherindustries,thesupplychainiscurrentlyundergoingadigitaltransformationthankstotheriseofnewtechnologies.Acrosssectors,digitalizationischallengingoldoperatingmodelsandunleashingnewpotential.

Thetraditionalapparelsupplychainconsistsoffourdifferentstagesthatoftenoperateinsilos.Buttomaximizethebenefitsofdigitalization,thedifferentphasesmustbewellconnectedandwellcoordinated,sothatanyincreasedefficiencygainedatonestagecanbereflectedinsmootheroperationsinthefollowingstage.Digitalizationitselfcanimprovecoordinationbyfacilitatingcommunicationbetweendifferentstakeholdersalongthesupplychain.

Thisreportisthefirstinaseriesthatwillinvestigatethedifferentaspectsofthedigitalizationofthesupplychain.Itprovidesanoverviewofhowtheapparelsupplychaincanbetransformeddigitallyandtheadvantagesthatdigitalizationbringstothevaluechain.Thereportanalyzesthevariousstagesoftheapparelsupplychain—design,manufacturing,distributionandsales—andillustrateshowdigitaltechnologycanbeappliedtoeachstage.

AHolisticDigitalSupplyChainAdigitalsupplychainintegratesandconnectsthestakeholdersinvolvedinthedifferentstagesoftheprocessthroughdigitaltechnology.Anumberofdigitaltechnologiescanbeappliedtothevariousstagesoftheapparelsupplychain,assummarizedbelow.

Figure1.DigitalizationoftheApparelSupplyChain:StagesandDigitalSolutions

Stage SolutionsDesign Digitaldesignsoftware,cloudcomputing,virtualsampling,

predictiveanalyticsand3Dprinting

Manufacturing IoTtechnology,sensorsanddigitalprinting

Distribution Robots,autonomousvehicles,blockchaintechnology,radio-frequencyidentification(RFID)andnear-fieldcommunication(NFC)

Sales Multichanneltechnology,in-storetechnology,cloudcomputing,IoTtechnologyandsocialmedia

Source:FungGlobalRetail&Technology

Toreapthemaximumbenefitsofdigitalization,thedigitaltransformationmustinvolvethevaluechainasawhole,notjustsomeofitsparts.Thestagesofthesupplychainarehighlyreliantoneachother,soaproblematonestagewillinevitablyhavenegativeconsequencesontherestofthechain.

Similarly,theincreasedefficiencybroughtbythedigitalizationofonestageofthesupplychainwillnotimprovetheoveralloperationsignificantlyifthereisnotsufficientcoordinationwiththeotherstages.Digitalizationitselfcansupportcoordinationwithinthevaluechainbyfacilitatingcommunicationbetweendifferentstakeholders.Forexample,store

Tomaximizethebenefitsofdigitalization,thedifferentphasesofthesupplychainmustbewellconnectedandwellcoordinated.

Theincreasedefficiencybroughtbythedigitalizationofonestageofthesupplychainwillnotimprovetheoveralloperationsignificantlyifthereisnotsufficientcoordinationwiththeotherstages.

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managerscanusein-storesensorstotrackinventorylevelsinrealtimeandtoprocessordersmoreswiftly.

Anintegrateddigitalizedsupplychainenablesstakeholderstorunthroughtheprocessinbothdirections:

• Forwardfromdesigntosales:Digitalizationcanimprovetheefficiencyofdesign,productionanddistributionandenablestakeholderstorespondappropriately,andmorequickly,whenadjustmentsareneeded.Forexample,theuseofvirtualsamplesallowsdesignersandproducerstointeractmorequicklyandefficientlywhensamplesneedtobeamended.

• Backwardfromsalestodesign:Digitalizationenablesconsumersandretailerstotracebackwhathappensinthesupplychain,andtoseewhereaproductcomesfrom.Itprovidesclarityonwhetheraproductissustainablyorethicallysourced,andhelpsretailersandshoppersavoidcounterfeitproducts.

Thiscancreateavirtuouscirclethatfurtherenhancesthesynergiesamongthedifferentpartsofthevaluechain.

Figure2.TheDigitalCircleWithintheSupplyChain

Source:FungGlobalRetail&Technology

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ALeanerandFasterDigitalProcessDigitalizationhelpstocreatealeanerprocessateachstageofthesupplychainandbetweenstages.Adigitalsupplychaincanbringsignificantadvantages,including:

• Speed:Digitalizationcanhelpcutproductdevelopmenttimesignificantly.Forexample,headquartersandsupplierscansenddigitalsamplesbackandforthratherthanshippingphysicalprototypes,therebysavingtime.

• Flexibility:Digitalizationimprovescommunicationamongthestakeholdersinthedifferentstagesofthesupplychainandspeedsupprocesses,givingstakeholdersmoreflexibilitytoadjustquicklytochangingconsumerdemands.

• Riskminimization:Manufacturerscanusedigitaltechnologiestorespondtopossiblemanufacturingissuesmuchmorerapidlyandefficiently.Sinceanyneededchangescanbedonevirtually,nophysicaladjustmentoftheblueprintisneeded.

• Trust:Automatinginteractionswithsuppliersbuildstrust.Forexample,digitalizingpaymentsmakesiteasierforstakeholderstopayontime,andstoringinvoicepaymentsdigitallyinthecloudmakesiteasiertotracetransactions.

• Improvedefficiency:Digitalizationsmoothstheinteractionsbetweenthedifferentstagesofthesupplychain,makingsupplychainmanagementmoretimeandresourceefficient,whichresultsinreducedoperatingcosts.

• Environmentalsustainability:Digitalsamplingand3Dprintingcannegatetheneedtoshipphysicalitemsupanddownthesupplychain,whichhelpsdesignersandmanufacturersreducetheiruseofresourcessuchasmaterialsandfuel.

•

Digitalizationhelpstocreatealeanerprocessateachstageofthesupplychainaswellasbetweenstages.

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Thegraphicbelowshowsthestagesandtypicallengthoftimeneededforeachstageinatraditionalapparelsupplychain(notethatmanyofthesestagescanoverlap).Itcouldtakeabout40weeksforanapparellinetogothroughthesupplychainfromdesigntosales.Digitalizationhasthepotentialtoreducethattimeby48%,accordingtoindustryexpertsatLi&Fung.

Thatmeansdigitalizationcouldcutupto19weeksofftheprocess.Shorteningthelengthoftimeittakestomoveanitemfromdesigntostoreiscrucialinapparelbecausefashionitemstendtobeverytime-sensitiveandretailersneedtorespondquicklytochangesinconsumerpreference.(OurreportSpeedtoMarketinFashionexploresthetopicinmoredepth.)

Figure3.TheTraditionalApparelSupplyChain:StagesandDuration

Thefigurereferstoatraditional,non-fast-fashionapparelsupplychainwithproductioninChinaandanendmarketintheUSorEurope.Stagestendtooverlap.Thedurationofthestagescanvarysubstantiallyindifferentcompanies.Source:FungGlobalRetail&Technology

Digitalizationhasthepotentialtoreducethetimeittakestomoveanitemallthewaythroughthesupplychainby48%.

Design/ProductDevelopment(8–16weeks)

Purchasing/Producgon(8–18weeks)

Shipping(5–8weeks)

Distribugon/Replenishment(1–6weeks)

Sales/HandlingReturns

(12–24weeks)

https://www.fbicgroup.com/sites/default/files/Speed to Market in Fashion by FBIC Global Retail Tech Dec 2015.pdf

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HowtoDigitallyTransformtheApparelSupplyChainProductdesignanddevelopmentcanmovefromapaper-basedprocesstoafullydigitalone.Aspectsofproductionandpurchasingcanalsobedigitalized,forexample,withtheuseofIoTtechnology.Inthissection,weexamineinmoredetailhowthestagesoftheapparelsupplychaincanbedigitalized.

ProductDesignandDevelopment:3DSimulationSavesTimeandMoneyIntheproductdesignanddevelopmentstageofthesupplychain,digitalizationallowsdesignerstohavealltheinformationtheyneedinoneplaceandenablesthemtodesignanitemvirtuallyusingsoftware.Allthepatternsavailabletodesignerscanbecollectedandeasilyaccessedinadatabaseoffabrics,whichcanalsohouseinformationsuchastestingresultsofthematerials.

3Dsoftwarecanbeusedindigitaldesigntosimulatehowagarmentwouldbehavewhilewornonthebody,while3Dsimulationreducesthetimeandcostassociatedwithcreatingmultipleiterationsofasamplegarment.3Ddesignandcommunicationtechnologiescanalsoreducetravelexpensesandthenumberofprototypesandsamplesusedintheprocess,whileminimizingfabricwasteandsavingtime.Timeiscrucialforapparelmanufacturersandretailers,giventhegeneralmovetowardfastfashioninretail.

Examplesof3DfashiondesignsoftwareincludeMarvelousDesigner,OptitexandBrowzwear,whichfeature3Dclothingsimulationforgarmentdesigning.Thegraphicbelowillustrateshow3Dfashiondesignsoftwareworks:

• 3Dproductcreationincludesthesimulationandfittingofsamplesonvirtualavatars.Designerscancreatedatabasesoffabricsandsampletextures,andcustomizeaseason’sstyletopromptlymeetconsumertrendsanddemand.

• Digitalpatternmakingenablesdesignerstodraftandadjustpatternsizingquicklyandeasilythroughdigitalprocessesthateliminatehundredsofmanualsteps.

• Digitalcollectionsoftwareenablesuserstoproduceavirtualcollectionthatcanbeviewedin3Dthroughphotorealisticrendering.Viewerscanzoominandout,andthecollectioncanbesharedwithvariousstakeholders,suchassuppliers,productdevelopers,merchandisers,andmarketingandsalesteams.

Productdesignanddevelopmentcanmovefromapaper-basedprocesstoafullydigitalone.

Savingtimeiscrucialforapparelmanufacturersandretailers,giventhegeneralmovetowardfastfashion.

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Figure4.3DFashionDesignSoftware

Source:Optitex

3Dprintingisanothertechnologythatcanbeusedinadigitalsupplychain.Essentially,a3Dprinterisamachinethatcanproducephysicalitemsfromdigitaldesignfiles.3Dprintingcouldpotentiallyeliminateallthestagesinmanufacturing.However,thetechnologyisstilllimitedbytherangeofmaterialsthatcanbeused,so3Dprintingiscurrentlyconfinedtothedesign/samplingstageofthesupplychain.Weanalyze3DprintingtechnologyinmoredetailinourreportEnterDesign,ExitSweater:3DPrintingintheFashionIndustry.

Production:DigitalTechnologyIncreasesPrecisionandEfficiencyDigitalizationisveryimportantintheproductionstageofaresource-intensiveindustrysuchasapparel.AnexampleofdigitalizationinapparelproductionisillustratedbyDigitex.Inabidtoapplydigitaltechnologytoapparelproductioninordertoimproveefficiencyandsustainability,aconsortiumof28EuropeanorganizationsrepresentingtheapparelindustrylaunchedtheDigitexinitiativetodevelopdigitalfinishingtechnology,whichappliesdigitalandinkjettechnologytoapparelmanufacturing.TheDigitexprojectwascompletedin2010.

Figure5.DigitexDigitalFinishingTechnology

Source:Digitex

3DProductCreagon 2DPaiernMaking DigitalCollecgon

3Dprintingcouldpotentiallyeliminateallthestagesinmanufacturing.

Digitalizationisveryimportantintheproductionstageofaresource-intensiveindustrysuchasapparel.

https://www.fbicgroup.com/sites/default/files/Quick Take on 3D Garment Printing by FBIC Global Retail Tech Aug. 20 2015.pdf

https://www.fbicgroup.com/sites/default/files/Quick Take on 3D Garment Printing by FBIC Global Retail Tech Aug. 20 2015.pdf

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Digitalfinishingappliesdigitaltechnologytodifferentphasesoftheproductionstage,includingprinting,coatinganddyeing.Thisdramaticallyimprovestheefficiencyofresourceusageandtheprecisionandqualityofthemanufacturingprocess.ThetechnologydevelopedbyDigitexenablestheproductionofsmarttextilesandfabricsthatemploynanotechnology,whichcannotbeproducedwithtraditionalmanufacturingmachinery.Digitalfinishingtechnologycanbeintegratedwithsensorsthatmonitortheresourcesusedandthewasteproducedduringmanufacturinganditcanconnectproductionfacilitieswitheachother,enablingamorerapidresponsewhenadjustmentsareneeded.

Distribution:SmootherOperationsThankstoAutomationIoTtechnologycanbeusedindistribution.Forexample,RFIDandNFCtagscanbeusedtotrackinventoryandproductmovementswithinthesupplychain.Byenablingtheaccuratetrackingofgoods,RFIDcansupportthelogisticsofmultichannelmodels:servicessuchasreserve-and-collectandclick-and-collectrelyonhavingaclearviewofinventory,whichRFIDcanprovide.

US-basedpackagedeliverycompanyUnitedParcelService(UPS)providesanexampleofhowlogisticscanbedigitalizedinordertoimproveoperationalefficiency.UPSdriverscarryhandheldcomputersequippedwithbuilt-inglobalpositioningsystem(GPS)chipsthatenablemanagerstogivethedriversreal-timeinstructions.UPSalsodevelopedanappthatenablescustomerstomanagetheirparceldelivery.Forexample,customerscanusetheapptochangeorupdatetheirpreviouspackagedeliveryinstructions.

Myrmex,aCalifornia-basedtechcompanywemetatLondonTechWeek2016,providesafurtherexampleofdigitalizationofthedistributionstage.Thecompany’sCurbsidePickupSystemconsistsofconnectedrobotsandautonomousvehiclesthatminimizeoperationalfrictioninlogistics.Thesystemisconceivedtoimprovethelogisticsofverytime-sensitiveitemssuchasperishablefood,butitcanbeusedbycompaniesinotherindustrieswheretimingisimportant—includingapparel—tomakedeliverymoreefficient.

Thesystemcombinesafullyautomatedloadingsystemandaninnovativeclick-and-collectterminal.Onlineorderloadingisfullyautomatedthroughasystemofroboticgearthathandlesthegoods.Thislowerscostsandminimizeserrors,makingoperationsfasterandmoreefficient.Theroboticgearplacestheordersintherightsequenceinwhichtheyneedtobedelivered.

Digitexenablestheproductionofsmarttextilesandfabricsthatemploynanotechnology.

UPSdriverscarryhandheldcomputersequippedwithbuilt-inGPSchipsthatenablemanagerstogivethedriversreal-timeinstructions.

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Figure6.BenefitsDeliveredbyMyrmex’sCurbsidePickupSystem

Source:Myrmex-inc.com

Smartpackagingisanotherdigitalsolutionthatcanbeusedindistribution.Suchpackaginghasembeddedtagsandcodesthatcontaininformationsuchasproductprovenanceormessagestocustomersorlogisticsmanagers.Thetechnologycanbeusedtotrackpackagesthroughoutthesupplychainandtopreventcounterfeiting.

Sales:In-StoreTechnologyHelpstoIncreaseSalesConversionInthesalesstageofthesupplychain,digitalizationcantaketheformofin-storetechnology,e-commerce,m-commerceandsocialmedia.Companiescanusesocialmediatointeractwithcustomers,promoteandsellproductsandservices,provideafter-salesservicesandassistance,andmanagereturns.Geolocationandinventory-trackingtechnologiescanalsobeusedtoexpeditetheprocessingofreturns.Forexample,retailerscanusethesetechnologiestotrackitemsthatarereturnedtoastoreandthensenttoadistributioncenter.

Wehavecoveredhowdigitaltechnologyisappliedin-storeinanumberofreports.Inour2016reportLettingOnlineApparelShoppersTryBeforeTheyBuy:NewMultichannelModels,wehighlightedanumberofexamplesofdigitalizationinthesalesstageofthesupplychain,including:

• Lincherie:Thislingerieretaileruses3Dmirrorsinitsstocklessstorestohelpshoppersidentifytherightsizebeforetheyplaceanonlineorder.

• Bonobos:Atthisretailer’sstock-freestores,customerscantrypiecesofthecollectiononbeforeshoppingonline.

• Try.com:Thistechcompanyplacesa“Try”buttononretailers’portals.Whenashopperclicksthebutton,Try.complacestheorderwiththeretailer,sotheshopperpaysnothingupfront.Theretailershipstheitemtotheshopper,whocanthenphysicallytryitonbeforedecidingtokeepitorreturnit.Try.comchargesthecustomerforwhateverheorshedecidestokeep.

• Sears’ReserveIt:Thisserviceallowscustomerstoreserveitemsonlineandtrythemonin-storebeforepurchasingthem.

Smartpackagingisanotherdigitalsolutionthatcanbeusedindistribution.

https://fungglobalretailtech.com/research/deep-dive-letting-online-apparel-shoppers-try-buy-new-multi-channel-models/

https://fungglobalretailtech.com/research/deep-dive-letting-online-apparel-shoppers-try-buy-new-multi-channel-models/

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• Zeekit:Thisappallowsshopperstouploadafull-bodypictureandthenvirtuallytryonanitembyoverlappingthephotowithaphotoofaselectedgarment,toseehowthegarmentwouldlookandfittheirownbody.

Thesesolutionshelpretailersminimizeshippingandreducein-storeinventoriesbymakingiteasierforcustomerstoidentifytherightsizeofanitemwithouthavingtotryondifferentsizesinastore.

Smartrac,aDutchtechcompany,providesaretailstoreoptimizationsystemthatusessensorstotrackstoredata,whicharethengatheredinthecloudinordertoprovidethesamelevelofanalyticsavailableinane-commerceenvironmenttoexecutivesandemployees.Smartrac’ssolutioncangatherkeyperformanceindicatorsthatcanbeusedtohelpmanagersimprovesalesconversionrates.Forexample,thesystemcantrack:

• Howlongittakestoreplenishthesalesfloor.

• Howlongittakestostockanitemthatisreceived.

• Howmanyitemsaremisplacedinthestore.

• Therateofconversionfrombrowsing.

Smartrac’ssystemcanalsoshowstoremanagerswhathappenswhenanitemistakentothefittingroomandhowwellemployeesareengagingwithcustomers.Thesystemprovidesbrick-and-mortarretailerswithawealthofinventoryinformationtoimprovestockkeeping,displaysandsalesconversion.Li&Fung’sretailtechcompany,Catalyst,hasanewRFIDpartnershipwithSmartractoofferin-storeproducttracking.

Source:Smartrac-Group.com

Otherexamplesofdigitalizationinthesalesstageofthesupplychainincludetheuseofsensorstomonitorlightingandtemperatureinstoresinordertouseenergymoreefficiently.Sensorscanalsobeusedformanualtaskssuchastrackingin-storeinventoryorchangingpricesviasmarttagsthatcanbeusedtoadjustpricinginrealtimeduringpromotions.Thisenablessalesassociatestospendmoretimeinteractingwithcustomersandmayreducetheneedforextrapersonnel,therebyreducingoperationalcosts.

Source:Zeekit.co

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Digitalizationalsoenablestraceabilityinthesupplychain.Inthesalesphase,itenablescustomerstotracebackthehistoryoftheitemtheyarebuying.Thisisimportant,asconsumersarebecomingmoreawareofissuesregardingproductprovenance,environmentalsustainabilityandethicalsourcing.

Blockverify,aLondon-basedtechstartup,developedtheuseofblockchaintechnologytotracebackthejourneyofanitemthroughthesupplychain.Thetechnologyassignsauniquecodetoaproduct,whichcanbetrackedonaregisterandmonitoredatallstagesalongthevaluechain.Thisenablestheidentificationofdivertedproducts,stolenmerchandise,fraudulenttransactionsandcounterfeitgoods.Suchtechnologyhasbeenusedtomanagethesupplychainofhigh-valueitems,includingpharmaceuticals,luxurygoods,diamondsandelectronics.

AfterSales:DigitalTechnologyEncouragesBrandEngagementLastly,technologycanextendbeyondthesaleoftheproduct,intothecustomer-usestage.Notably,NFCtechnologycanbeembeddedinapparelitemstoprovidecustomerswithapersonalizedexperienceandencouragebrandengagement:

• FashionbrandBabyghostpartneredupwithtechfirmBitSEtolaunchafashion-techlinethatembedsNFCtechnologywhichenablesgreaterinteractionwithcustomerswhowearthegarments.TheNFCtagembeddedinthegarmentsendsinformationabouttheitemtothewearerthroughanappinstalledonhisorhersmartphone;thiscanincludeinformationsuchaswhomodelledtheitematitslaunchduringfashionshows.ThecollectionwaspresentedatShanghaiFashionWeekinOctober2016.

Source:Mybabyghost.com

SPYDER,incollaborationwithLi&FungandSMARTRAC,launchedaUSSkiTeamcollectionofNFC-enabledgear.

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• Skiandperformance-wearbrandSPYDER,incollaborationwithLi&FungandSMARTRAC,launchedaUSSkiTeamcollectionofNFC-enabledgear.Theline,unveiledinOctober2016,consistsofitemsthatcanconnectwithconsumerdevicesthankstoembeddedNFCtags.Thetechnologyenablesuserstoaccesslocation-basedinformationincludingweatherandsnowconditionsandtointeractinrealtimeonsocialmedia.

Source:Spyder.com

KeyTakeawaysDigitalizationofthesupplychainbringsmanyadvantagestoapparelretailersandmanufacturers.Adigitalsupplychainhelpscompaniesrunsmootheroperations,useresourcesmoreefficiently,bettercoordinatethevariousstagesintheproductlifecycle,andbetterrespondtounforeseencircumstancesandchangingconsumertrends.

However,giventheinterconnectednatureofthesupplychain,inordertotakeadvantageoftheopportunitiesthatdigitalizationbrings,companiesneedtomakesurethatthedigitaltransformationoccurswithinandthroughthedifferentstagesofthevaluechain.Thiscanbeachievedthroughacleverimplementationofdigitalstrategiesthatfacilitatecommunicationandcoordinationamongthedifferentstakeholdersinvolved.

Companiesneedtomakesurethatthedigitaltransformationoccurswithinandthroughthedifferentstagesofthevaluechain.

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DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:[email protected]

FilippoBattaini ResearchAssociate

HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017

FungGlobalRetailTech.com

digitalization of the supply chain overview march 3 2017 · pdf filepotential to reduce that...

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