This website does not support Internet Explorer. Please, switch to Edge, Chrome, or Firefox browser to view this page.

Learn about IE support
o9 video

Watch next

December 1, 2023

Profitability and Sustainability: Transforming the Apparel Supply Chain

— Traditional apparel supply chains must give way to a sustainable, 'Supply Lattices' model that prioritizes proactive initiatives and leverages legislation, fostering an environment where profitability coexists with waste reduction, according to former CSCO at PVH Bill McRaith.

The following are the main takeaways from his talk at aim10x London.

Recognizing the Flaws of Traditional Supply Chain Models:

Bill highlighted the flaws in the hierarchical apparel supply chain model, where retailers sit atop the chain. He emphasized the need for collaboration and understanding between retailers and suppliers to address inefficiencies and reduce waste. By fostering a collaborative environment and aligning objectives, stakeholders can streamline operations, minimize costs, and enhance profitability.

Aligning Sustainability and Profitability:

Contrary to popular belief, Bill stressed that sustainability and profitability are not mutually exclusive. He emphasized that sustainable practices can lead to increased profitability and improved long-term financial performance. However, businesses must shift their focus from short-term gains to embracing sustainable business models that drive operational efficiency and reduce waste. Bill encouraged leaders to recognize the business benefits of sustainability and integrate it into their strategic decision-making processes.

Prioritizing Responsiveness in Supply Chain Planning:

Traditional supply chain planning models often prioritize cost optimization, which can result in excess inventory and waste. Bill advocated for a shift in focus towards responsiveness, particularly in extended supply chains where visibility and control are challenging. By adopting planning technologies that emphasize responsiveness, businesses can minimize waste, enhance efficiency, and improve overall supply chain performance.

The "Supply Lattices" Model for a Reactive Supply Chain:

Bill introduced the concept of "Supply Lattices," a new supply chain model that leverages offshore, nearshore, and onshore capabilities for the same product. This approach enables businesses to create a more reactive supply chain, reduce waste, address social issues, and drive profitability. However, the implementation of this model is hindered by the current toolset, as existing planning systems often prioritize cost over time and fail to consider all variables. The challenge lies in transitioning to this new model while optimizing planning systems to manage multiple locations and recognize all relevant factors.

Proactive Measures Over Consumer Demand:

Bill cautioned against waiting for consumer demand to drive sustainability initiatives in the apparel industry. Instead, he emphasized the importance of legislation as a catalyst for change and collaboration among retailers in a pre-competitive environment. By working together to solve sustainability challenges, businesses can proactively address industry-wide issues. However, the complexity arises from differing legislation in various countries, necessitating a centralized approach. Bill suggested embracing the European approach, as the EU is currently at the forefront of driving the sustainability agenda.

o9 ebook ibp mockup

Your blueprint to Sales and Operations Planning (S&OP) excellence

Transform your supply chain operations and navigate complex challenges with ease. Download the informative E-book.

I agree to the privacy policy.


View our related articles, white papers, use cases & videos

video2 min

The Aftermovie: aim10x live Singapore

The aftermovie: aim10x live singapore thumbnail
video59 min

Setting up for Next-Generation Planning Success

Setting up for next generation planning success thumbnail

Transformative IBP - Driving consequential decision-making across functions

O9 ibp white paper directors mockup
video3 min

If Forecasting Is Never 100% Accurate, What’s the Point?

If forecasting is never 100% accurate, what’s the point? thumbnail
video7 min

The o9 Cybersecurity Advantage: Unlocking the Secrets of Top-Ranked Security

Auto draft thumbnail
video21 min

Transforming End-to-End Planning with AI/ML

Transforming end to end planning with ai/ml thumbnail
video37 min

Integrated Planning: Interactions between Commercial and Supply Chain

Integrated planning: interactions between commercial and supply chain thumbnail
video11 min

o9 Mobile: Better, Faster Decisions from Anywhere

O9 mobile: better, faster decisions from anywhere thumbnail
video4 min

What Is Your Demand Planning Model Structure?

What is your demand planning model structure? thumbnail
video15 min

The Future of Data: A Fireside Chat with Filippo Passerini

The future of data: a fireside chat with filippo passerini thumbnail

aim10x Magazine - 2024 E1

Aim10x magazine 2024e1 mockup
video17 min

The Case for Optimism on the Climate Crisis

The case for optimism on the climate crisis thumbnail