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The savvy shopper today selects a number of flattering garments from a separates collection. Likewise, apparel retailers and brands should choose several business-to-business (B2B) marketplaces from the many that exist to tackle their particular procurement needs.
B2B marketplaces are exploding onto the scene, signaling a transformation of the procurement landscape. This expansion is producing a land grab by new entrants who seek to revolutionize supply chains and by incumbents who are determined to halt disintermediation.
The retail industry is no stranger to these trends - more than 40 apparel segment business-to-business (B2B) marketplaces have emerged in the last two years. In response, both retailers and branded manufacturers are scrambling to determine what procurement or supply-chain benefits marketplaces are offering and how they can capture those benefits.
In this article, we identify how B2B marketplaces can create value for apparel retailers and brands - by improving overall supply-chain effectiveness and efficiency through new technologies. Next, we describe the three kinds of marketplaces that have emerged. Then, we explain why apparel retailers should utilize a portfolio of marketplaces - not just one or two - to meet their procurement needs. Finally, we outline the challenges that lie ahead in this uncharted territory and suggest some basic principles for getting started.
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