Know why new business models are pushing towards customer-driven supply chains.

1. How emerging economies are affecting
supply chains

2. • Supply chain management: not about technology, it’s about the
economy.
• Recently we have seen a shift in the global economic mass to the
emerging economies.
• It is driven by the weak performance of the developed economies.
• Simultaneously, new business models are pushing towards
customer-driven supply chains.

3. • The garment industry is facing the same fate as emerging economies are
getting a lot of attention from the big brands in the business
• Emerging economies offer cost advantages and strategic locations.
• Logistics and freight transportation are the backbones of international
trade.
• The performance is affected by the country’s legislation, carrier and
shipper performance and technology, and their international agreements
(FTAs, etc.)

4. Asia:
The Game
Changer
• The global center of economic activity is
shifting towards Asian countries.
• GDP growths, Population and growth in
disposable incomes are also affecting their
production capabilities and consumption
patterns
• This calls for the need of improvements in
their freight infrastructures and system
compliances.

5. Logistics
Performance
• Transportation and logistics infrastructures have a
direct impact on the delays, thus making them a
prominent cost factor.
• Other cost factors: unpredictable border crossings,
market access restrictions, system corruption, and
custom and compliance complexities.
• These restrictions become further problematic in the
garment industry, as fast fashion has and is still
shrinking lead times.
• Improvement in the logistics performance of an
apparel exporter/manufacturer can considerably
boost business bottom-line.
• An OECD study has actually concluded that a 10%
growth in logistics performance, results in 70%
increase in bilateral imports.

6. • Simple standardization of processes across
the supply chain can actually reduce overall
supply chain costs as effectively as
infrastructure development might.
• For example, the development of the Single
Window Customs system, in Indonesia has
facilitated in smoother movement of goods
across their borders.
• Combining all their customs information,
while increasing their system’s transparency
and accountability, has benefitted their
trade significantly.
Process
Standardization

7. Big Data
• Around 20% of the supply chain actors today
have the necessary information needed to run
their businesses effectively and efficiently.
• Big data has the potential to improve supply
chain efficiency, by enabling businesses to
identify the weak links where intervention is
needed.
• The power of information is not even limited to
that. Information is the tool that can help supply
chain actors to counter system corruption, by
enabling data access and transparency across
the supply chain.

8. Sustainable
Development
• The millennial user is the future of apparel industry.
• They have the power to influence global buying
patterns due to their powers of social media identities
and connectivity.
• This target group of millennial customers is extremely
conscious about the consequences of their actions and
social variables drive their buying decisions.
• Apparel brands need to re-think their supply chain’s
collective impact on environment and society to keep
millennial consumers engaged with the brand.
• Carbon savings in logistics is one area where a lot of
work can be done. Proper carbon saving reporting and
better monitoring will not only affect the brand image
but will also contribute to the company’s bottom line.

9. Conclusion
• Till now, logistics industry was a neglected area
when skill and process improvement efforts were
made.
• But with the importance, the “last mile” delivery is
getting, we need much more skilled labor than ever
before in logistics.
• Moreover, trade unions, companies, and
government all need to work together to manage
the needs of supply chains of the future.
• COLLABORATION and COOPTATION are keywords
that are going to drive apparel supply chains of the
future.

10. For more insight on this topics, visit
www.stitchdiary.com