This webinar examines a white paper, authored by John S. Thorbeck of Chainge Capital, which calls for sustainable and systemic change in the global fashion industry through a reimagination of the buyer – supplier relationship in a bid to improve mutual profitability, productivity, and sustainability.
Key points raised in this webinar from the International Apparel Federation (IAF) include:
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Why the fashion industry relies heavily on a low-cost system of worldwide sourcing that is unequal in risks and rewards between retailers/brands and manufacturers.
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The paper proposes “Shared Risk” as an alternative to the current transactional and adversarial bargaining model, emphasising supplier-led innovation and supply chain flexibility.
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It highlights the potential of unlocking financial capital from excess production and unneeded inventory in the upstream supply chain.
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The author introduces the concept of the “Zara Gap,” demonstrating how improved supply flexibility can significantly increase operating income and market capitalization for fashion companies.
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The paper argues for a systemic approach to industry transformation, integrating profitability and sustainability goals aligned with UN Sustainable Development Goals for 2030.
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It emphasises the need for process innovation and new data applications to achieve superior productivity and profitability in the fashion industry.
The white paper can be downloaded after completion of a short questionnaire.
