The International Trade Centre (ITC) and the International Apparel Federation (IAF) have announced a partnership to stimulate innovation towards “full supply chain profitability” for apparel manufacturers and brands.
- The first phase of collaboration would be research that would be previewed at the 38th IAF World Fashion Convention to be held in Philadelphia, US, on October 23–24.
- The theme of the Convention is ‘Our industry in transition: Building stronger, smarter and more sustainable supply chains’.
Being Flexible: Applying learning in autos and electronics, the joint study articulates how material suppliers and garment manufacturers create ‘smart flexibility’ by postponing production commitments closer to actual demand, unlocking capital from unneeded inventory and excess production.
- Smart Flexibility is a new approach that uses a mix of process and data tools enabling suppliers to create additional value for brands and manufacturers alike that supersedes the benefits of lowest cost global sourcing.
The Backdrop: The Sustainable Terms of Trade Initiative (STTI), published and co-initiated by the IAF, placed ‘full supply chain profitability’ as a research priority in 2021.
- The STTI, addressing improvement of purchasing practices, sees smart flexibility, or shared risk, as a highly productive alternative to the predominant imbalance of sourcing relationships.
- Smart flexibility elevates purchasing practices beyond seasonal, transactional contracts to deliver mutual goals for sustainability.
- Conventional, often adversarial bargaining, need not define industry culture as new technology with AI injects fresh insight across one of the world’s oldest, most globalised supply chains.
The Preview: IAF Secretary-General Matthijs Crietee will moderate a panel session including the main contributor to the study, John Thorbeck of Chainge Capital; Brad Ballentine, CEO of MAS ACME, the US subsidiary of giant manufacturing group MAS Holdings; and Scott Walton of Kornit Digital, a major supplier of digital printing equipment.
- The official publication, titled, “Under the Banyan Tree: Buyers and Suppliers in Fashion,” will be announced in joint timetable and events by the ITC and IAF.
