The Business of Fashion Podcast Building Smarter, More Sustainable Supply Chains | Retail Reborn Episode 2
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Sep 22, 2020 In this discussion, John Thorbeck, Chairman of Chainge Capital, and Dio Kurazawa, co-founder of The Bear Scouts, delve into the urgent need for more sustainable supply chains in the fashion industry. They advocate for innovative strategies and the integration of eco-friendly materials to combat environmental degradation. The conversation highlights the challenges faced by garment workers and the industry's transparency issues compared to the food sector. Ultimately, they stress the importance of rethinking capitalism to prioritize both people and the planet.
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Fashion's Pre-Existing Condition
- The fashion industry's pre-existing condition is a supply chain focused on lowest-cost sourcing, long lead times, and high volume.
- This system, normalized over time, prioritizes minimizing incoming costs to offset uncertainties.
Reimagine Supply Chains
- Reimagine supply chains for outcomes beyond lowest cost to unlock significant upside, potentially 30% of market capitalization.
- Focus on mitigating uncertainty, which outweighs labor, material, and manufacturing costs.
Nike's Arbitrage
- Nike gained a cost advantage by moving production to Asia before competitors. This arbitrage has shrunk, necessitating a new source of advantage.
- The new arbitrage lies in speed and flexibility, not just total cost.
