Interviews
Apparel brands enter new era of supply chain collaboration
06 Apr '12
5 min read
In real terms the year-on-year growth in clothing expenditure is slowing from an all time high of 13.7 % in the mid 1980s to 1.2% in 2012. Many retailers are increasing their volume spend by increasing their selling space in “big shiny shopping centres” but this is unsustainable as exemplified in the recent demise of several value retailers including Peacocks. She advises: “Prices of clothes have to go up” and urges delegates to justify the price by creating unique, aspirational brands with 'made in the UK' global appeal.
She suggests retailers should revisit the menswear and the 45 years+ markets in a bid to encourage consumers to spend more. She explained: “Just another £6.00 per head per month would add another £1 billion to spend in the clothing market.” She concludes: “It's tough out there but there are opportunities and we have to be more innovative. UK retail is one of the most professional sectors in the world. If you're a winner in this market you can be a winner in any market but you have to have a unique offer.”
On a similarly optimistic note Ian Burns, senior international business manager, trade & supply chain for HSBC Bank plc declares: “Banks are looking to lend” and with current interest rates it is: “ridiculously cheap borrowing in the UK.” He explained the bank's supplier invoice finance scheme, whereby the bank agrees to finance pre approved invoices for its customer's named suppliers. This scheme provides benefits for both parties: “Suppliers can access cheaper finance, lighten credit control workloads…and reduce need for bank facilities as the risk is on the buyer.”
In short it minimizes risks and boosts confidence in supply chain partnerships. He see's the bank as playing a key role in the supply process and as fostering partnerships within the supply chain: “We now wish to be included early in discussions with our customers to really understand the trade cycle and provide a finance option which suits the client and bridges the gap between paying a supplier and receiving proceeds from a sale.”
Sara Honeywell, supplier relationship manager-brand with the UK's largest e-tailer Shop Direct Group, deals with over 750 product brands. She showed how a new collaborative approach to SDG's supply chain has reduced risk and improved the supply of hundreds of product lines to its online department store and printed catalogues.
As she admits: “We have not been good at this in the distant past but in the last three years we have worked hard at working more collaboratively with our suppliers…we now talk openly and candidly with our supply base and have dramatically reduced supplier failures in the last 18 months as a result.”
Click here to read more details:
She suggests retailers should revisit the menswear and the 45 years+ markets in a bid to encourage consumers to spend more. She explained: “Just another £6.00 per head per month would add another £1 billion to spend in the clothing market.” She concludes: “It's tough out there but there are opportunities and we have to be more innovative. UK retail is one of the most professional sectors in the world. If you're a winner in this market you can be a winner in any market but you have to have a unique offer.”
On a similarly optimistic note Ian Burns, senior international business manager, trade & supply chain for HSBC Bank plc declares: “Banks are looking to lend” and with current interest rates it is: “ridiculously cheap borrowing in the UK.” He explained the bank's supplier invoice finance scheme, whereby the bank agrees to finance pre approved invoices for its customer's named suppliers. This scheme provides benefits for both parties: “Suppliers can access cheaper finance, lighten credit control workloads…and reduce need for bank facilities as the risk is on the buyer.”
In short it minimizes risks and boosts confidence in supply chain partnerships. He see's the bank as playing a key role in the supply process and as fostering partnerships within the supply chain: “We now wish to be included early in discussions with our customers to really understand the trade cycle and provide a finance option which suits the client and bridges the gap between paying a supplier and receiving proceeds from a sale.”
Sara Honeywell, supplier relationship manager-brand with the UK's largest e-tailer Shop Direct Group, deals with over 750 product brands. She showed how a new collaborative approach to SDG's supply chain has reduced risk and improved the supply of hundreds of product lines to its online department store and printed catalogues.
As she admits: “We have not been good at this in the distant past but in the last three years we have worked hard at working more collaboratively with our suppliers…we now talk openly and candidly with our supply base and have dramatically reduced supplier failures in the last 18 months as a result.”
Click here to read more details:
Association of Suppliers to the British Clothing Industry (ASBCI)
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