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Interview with William E Connor

William E Connor
William E Connor
CEO
William E Connor and Associates Ltd
William E Connor and Associates Ltd

Speed to market a major agent of change in sourcing
The Connor Group offers a complete transparent supply chain with no hidden costs, encouraging clients to visit factories, consolidators and material suppliers. Headquartered in Hong Kong, Connor is a provider of wholly transparent logistics framework that formed the foundation of long-term sourcing partnerships. William E Connor, CEO of the William E Connor and Associates Ltd, discusses the pros and cons of digitising the entire supply chain of textiles in an interview with Fibre2Fashion.

Which three major international political factors currently have a major impact on textile sourcing?

Setting aside any outbreak of hostility between nations, the three greatest political factors affecting textile sourcing are protectionism, protectionism and protectionism. The textile industry has historically been a stepping stone to development in newly industrialising countries going back nearly two centuries. Legacy interests in fully industrialised economies have a habit of not going away and remain politically powerful. For as long as I can remember, protectionism has remained a threat. One hopes universality of the World Trade Organisation (WTO) ultimately prevails.
 

How has textile sourcing evolved from what it was a decade back? What will be the impact of digitisation on the sourcing industry by 2030?

The focus on price, quality and speed to market is stronger than ever. Private brand penetration is, however, increasing as retailers compete for customers both in stores and online. Retailers need differentiated products. With e-commerce has come data. Customer analytics play a critical role in the supply chain. Data helps determine what is being produced and when. There is a trend to place more orders in smaller quantities and to do it faster. 

Without a crystal ball, it is difficult to predict what the face of sourcing and retail will be in 2030. Things are changing at the speed of light. By 2030, however, certainly a new brick and mortar-e-commerce equilibrium will be in place. Sourcing will need to include seamless digital platforms to link trade partners together for better communication and management of the supply chain. By digitising the supply chain and leveraging collaboration, automation, analytics, and  achieving flexibility, a robust and comprehensive global trade management platform creates value by not only providing sourcing options, but also improving margins, speed, agility and risk management. 

At Connor, we have developed a proprietary supply chain management tool that delivers a secure and transparent platform to manage the production supply chain. We continue to enhance our digital platform to stay at the forefront of supply chain technology. This includes virtual samples, virtual showrooms and other technologies that allow faster and better decision making. Technology is being leveraged to a greater extent to deliver price, quality and speed.

What are the emerging sourcing markets?

China, India, Africa, Middle East and South America represent the biggest long-term growth opportunities for sourcing. In China, worker migration to the main coastal cities has slowed considerably while industry has itself migrated away from the coast. This opens up new sourcing opportunities in China. 

The need for contingency plans in an era of geopolitical risk and rising protectionism augers in favour of developing a production footprint in multiple markets. Large dependence on a single country for production may be fine when everything goes well, but many of our clients are taking a very strategic view of sourcing and diversifying their production base.
What are the emerging sourcing markets?

From which countries has sourcing increased and decreased? Which new geographies are being explored?

It remains impossible to ignore China with its combination of productivity, inherent efficiency, and continuously improving infrastructure. India has a long-term potential, with a population of over a billion and excellent demographics. Regulation and lack of infrastructure hold it back. Bangladesh and Vietnam continue to be seen as the two sourcing markets most likely to grow in importance in the next five years. We worry a little about stability in countries like Bangladesh, which is very important as an exporter to both Europe and the United States.

Which are the top sourcing countries for sustainable apparel, home textiles, footwear and leather items?

China, with its serious effort to tackle environmental threats, is top of mind. India, Vietnam and Bangladesh remain top choices, but health and safety issues can be challenges. The series of tragic accidents in Bangladesh's garment factories have led apparel players to explore new sourcing markets, actively seeking alternatives. Still, Bangladesh as a nation has prioritised the textile industry as a key to its future, which should fuel a greater move toward sustainability.

How does your supply chain network work? What regions of the world are part of your supply chain?

While we are headquartered in Hong Kong, a global footprint is essential if global sourcing is to be optimised. Connor needs a physical presence in all production areas that translates to a big investment in people, training, and premises. This is why we have over 30 offices worldwide. Flying people to remote locations simply doesn't work well. We have teams dedicated to particular clients in all markets. 

We act as our client's alter ego. For our clients, we provide a wholly transparent supply chain framework that forms the foundation of long-term sourcing partnerships. These partnerships enable clients to source directly from factories and bypassing middlemen. This framework remains the cornerstone of Connor's philosophy to this day.

How has speed to market affected sourcing?

Clearly, speed to market is a major agent of change. Omni-channels, e-commerce, the rapid growth of technology and communication platforms are putting tremendous pressure on vendors to adapt. Those that don't adapt cannot expect to survive. Speed to market is imperative today and is not slowing down.

What parameters do suppliers/manufacturers need to comply with to be on-board with you?

With offices in 20 countries working with thousands of factories, sustained training and auditing are essential. We have a huge investment in this. Ethic and good governance is the cornerstone of what we do. We have clear standards, we communicate them assiduously and we take action when necessary. We are the only sourcing firm in the world to be included in Ethisphere's World's Most Ethical companies ranking. We maintain complete supply chain transparency. Our clients are among the most demanding in the world. We work hard to uphold their integrity and reputation. A rigorous programme of ongoing audits helps ensure that all suppliers with whom we work are in complete compliance with the most stringent social, labour, human rights, environmental and technical standards. All suppliers must sign and abide by our code of conduct, the strictest in the industry.

What are the current trends in sourcing?

Speed to market is of great importance with the need for a responsive supply chain driven by consumers with a rapidly changing demand and newness. Social media can quickly spread news and trends affecting fashion and demand. 

Raw materials, social and environmental compliance costs and labour will continue to rise, presenting new challenges to the sourcing environment in the coming years. 

How have Brexit and Trump affected business?

It is not just Brexit or Trump, but many economic changes and rising trade tension that not only jeopardise business operations in the supply chain, but negatively impact the economic growth and competitiveness of all countries. That said, the impact of Brexit and Trump are prospective impacts. One hopes that reason and common sense in trade policy will prevail. There is too much at stake for everyone.

How do you plan to further refine your supply chain offering?

Our clients are vastly different from each other. It is essential for us to identify the right strategy for each, building trust and working in partnership with our clients and vendors to assure a given client's needs are met. 

For a supply chain partner such as Connor, a true global presence is essential. In the face of prospective new tariffs, protectionism and the need to keep costs down, production venues continue to shift. We deal with this by ensuring we have a robust global footprint that spans all major global production venues. 'Boots on the ground' remain essential in an otherwise digital age that includes increasing demand for social and environmental compliance.

What are the top three challenges that you face ensuring a sustainable supply chain with minimum carbon footprint?

The main challenges are to identify the bigger carbon sources within the supply chain and the need to do it with a multitier approach as everyone is involved, from vendors to consumers. We need to work closely with our clients and vendors to understand and provide guidance on efficiency and renewable options that will eventually lead to lower the impact of the carbon footprint. At the end, sustainability-oriented companies can be inspiring and prompt other companies to follow.

What is the annual budget allocated towards research and development (R&D)? How big is the team?

We continuously invest in R&D enhancing and extending our technology platforms to our clients and to the vendors we work with. The investment is significant and increasingly involving the collaboration and support of our partners.

What is your growth strategy for the next five years?

Connor's growth strategy is to continue to expand our client relationship both with existing clients and with new prospective clients. We will continuously adapt to client requirements and market trends while maintaining reliability, transparency trustworthiness and integrity to the point of each client coming to view Connor as its own. (RR)
Published on: 16/06/2018

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.