NGC in Footwear News: How Digital Supply Chains Can Reduce Waste and CostsDecember 6, 2019
Footwear brands are at a crossroads: consumers want to receive shoes faster but also in a way that is environmentally sustainable. “These Tools Help Brands Reduce Supply Chain Waste and Costs” in Footwear News reported on this dilemma with insight from Mark Burstein, president at NGC, into to how retailers can resolve this challenge.
The Sustainability Challenge at Hand
This year, Amazon announced that it would begin implementing same-day delivery on millions of products, putting pressure on footwear manufacturers to meet this demand. At the same time, consumers are becoming more aware of the impact speedy delivery has on the earth.
In addition, brands must reckon with shifts in global politics such as Brexit and the U.S.-China tariff wars. These shifts are increasing the need for brands to implement solutions that allow them to continue offering products at quality and speed.
How Digital Supply Chains Can Reduce Waste
Footwear News outlined the current state of supply chain management for many retailers, which are “using legacy systems or simple tools such as spreadsheets to track production. While this can work for small operations, when done on a larger scale, holes in communication between factory and brand become apparent. If a brand doesn’t catch and resolve an issue at the source, they risk losing money and also damaging their reputation with retail partners.”
Burstein agreed, “Without a digital supply chain, brands are making decisions too late and using outdated information. Companies that have siloed systems that rely on email and Excel are not quickly identifying problems. And it’s not just problems; they’re not quickly identifying opportunities that can improve their businesses.”
Footwear News believes that companies that react quickly are rewarded by customers demanding shorter production times. “Through a platform such as NGC,” it reported, “brands can link all of their supply and production partners within one database and communicate with each facility within that interface. That ensures all parties have access to the latest information and can respond to new developments in real time; if one market is understocked, the brand can reroute an order from the factory.”
Learn More About Implementing a Digital Supply Chain
NGC’s Andromeda platform helps retailers implement digital supply chains that meet these shifts in consumer demand. “There are three [vendor] considerations: speed, quality and price — in that order,” said Burstein. “Customers want the right product with good quality at the right price.”