As we all know, the crisis caused by the Covid-19 pandemic is impacting the clothing and apparel industry like nothing we have witnessed before. While we do not know when this crisis will end, there is one thing we are certain of, the industry will see seismic changes on how it operates in the ‘new normal’ of the post Covid-19 world.
We believe the clothing and apparel industry will have to change and adapt in a number of ways to come to terms with three new realities:
- The level of physical interaction that has been the norm until today, is unlikely to return.
- Trust between brands and retailers on the one side, and manufacturers and suppliers on the other, has been severely damaged and is likely to take years to rebuild.
- Reducing inefficiencies, and staying lean and cost effective will become even more pressing.
We are partnering with Coats Digital and Res.Q to re-shape the apparel industry and address the specific challenges along the supply chain
Leveraging our unique combined strengths, this partnership will provide companies with access to a range of inter-connected digital solutions over a single trusted platform. These solutions will not only provide real-time data and end-to-end transparency across the apparel supply chain, it will also boost efficiencies leading to cost savings, as well as reducing the reliance on face-to-face contact. Read the full press release here.
KEY CHALLENGES FACING THE APPAREL INDUSTRY
The apparel industry can and must emerge stronger from the current crisis. This will require participants through the supply chain - individually and collectively - to become more agile and more efficient.
There are three challenges that must be addressed to improve agility and efficiency:
- Low digital adoption, especially amongst smaller manufacturers and suppliers. A large part of the industry does not have access to or does not use digital tools and solutions that facilitate the tracking of efficiency and productivity, reducing material waste and unproductive labour.
- The inability to use data effectively due to a lack of connectivity across the supply chain. Existing digital solutions do not talk to each other, and consequently most information exchange relies on analog processes and standalone systems. This has resulted in an ability to benefit from the information available, leading to the higher operational costs, a lack of transparency and reduced flexibility and speed in business.
- Duplication of efforts across the industry. Engagement and information exchange between participants in the industry is typically bilateral. One such example is the multiple, often repetitive, audits manufacturers have to complete.
HOW WILL COATS DIGITAL, RES.Q AND SERAI TOGETHER SOLVE THESE CHALLENGES?
Coats Digital, Res.Q and Serai share a common vision for how the adoption of technology and the use of data can help transform the apparel industry. We believe that a concerted effort across the industry is required to successfully respond to the inevitable changes post Covid-19. By working together we will help create a transparent and sustainable apparel industry.
- Coats Digital, Res.Q and Serai bring a unique set of complementary capabilities. We have a deep understanding of the industry today and are able to radically challenge the status quo.
- By providing real-time data, end-to-end visibility from the factory to shop floor on a neutral platform that brings all participants of the industry together, Coats Digital, Res.Q and Serai will be able to reduce inefficiency, use data effectively and address the duplication of efforts on the brand and manufacturer side.
- We firmly believe that will strengthen relationships between brands and manufacturers, reduce operational costs and improve the ease and speed of decision making on both sides of the relationships.
- The access to Serai’s core functionality will be free. The digital solutions that enable users to reduce costs and streamline processes are offered by Coats Digital and Res.Q on a software-as-a-service basis.
WHAT DOES THIS COLLABORATION MEAN FOR BUYERS AND SELLERS ON DAY 1?
As of today, buyers will be able to search, find and connect with new suppliers, to help them diversify their supplier risk, both product and geographic. Suppliers will be able to show off their unique capabilities, certifications and product range and connect with new buyers.
On Day 1 of the collaboration sellers will be able to share real-time information with buyers, proving their trustworthiness and reducing existing duplication of work, such as conducting multiple audits for each of their existing buyers. Buyers will gain additional insight into their supply chains and reduce costs.
HOW QUICKLY CAN THESE SOLUTIONS BE IMPLEMENTED?
Coats Digital, Res.Q and Serai have already started working together and working towards having an integrated solution ready for customers before year end.
Access to Serai is currently invite-only. If you’re interested in becoming an early adopter of our platform then click here to join.