The apparel industry has been one of the hardest-hit sectors in retail the past few years. However, an important new research study from McKinsey & Co. provides clear direction on how to thrive in today’s tough business climate – embrace the digital supply chain.
In its study, “Digitization: The Next Stop for the Apparel-Sourcing Caravan,” McKinsey surveyed 63 chief purchasing offices (CPOs) from leading apparel companies and found that digitization is a major priority despite its low maturity rate in the apparel sourcing industry. These results are no surprise to NGC, and they validate our vision of the digital supply chain as the key to business transformation.
As the McKinsey study makes clear, apparel executives are laser-focused on change, and they’re looking to technology as the key enabler. McKinsey found that, “More than 80 percent of CPOs in our survey expect digitized end-to-end process management—including centralization of product-development and procurement processes in one cloud-based system. More than two-thirds of sourcing executives expect to have digitally enabled capacity planning in place, helping them to allocate production capacity more efficiently and spot bottlenecks earlier. A similar number expect to have digital portals up and running to foster transparency and collaboration both with external suppliers and internal colleagues.”