Is Your Supply Chain Healthy?

In June 13th, China is located at 12 East Chang'an Avenue, Beijing.

Who is more dominant in individual business?

From the perspective of individual enterprises, the definition of supply chain should come from the core enterprises. It means that through the control of information flow, logistics and capital flow, the intermediate products and final products will be made from the purchase of raw materials, and finally the products will be delivered to consumers through the sales network.

It is a functional network chain mode that links suppliers, manufacturers, distributors, retailers to end users.

Miao Hongbing, the head of the white-collar worker, once positioned his enterprise in the supply chain as a leading enterprise. He thought that in the supply chain management, the white collar should operate according to the rules of the core enterprise.

For example, the design of white-collar workers is made by Italians, the fabric of white-collar workers is made by the French, and the marketing of white-collar workers is made by global planning companies, including advertising, including models, which make use of the best people and the best companies in the world.

White collar clothing is expensive because he believes that white-collar workers have a strong supply chain support.

There is no doubt that in the point to point supply chain, core enterprises are theoretically dominant.

Sun Ruizhe believes that from a good point of view, the core enterprises in the supply chain can maximize the value through supply chain control.

From a harsh perspective, interest tends to concentrate on the leading parties, and risks are easily pferred to the other side.

That is, who is strong, who can dominate the supply chain, who can control the interests, and shift the risk to others.

In the supply chain, the leading Party is usually the terminal brand. Of course, some upstream enterprises are the leading providers of the supply chain because of their core resources and technical strength, such as DuPont.

To some extent, the global textile and Apparel Supply Chain Conference tends to create a win-win relationship between brands and suppliers.

Reporter survey found that this win-win relationship in the success of the core enterprise supply chain management practice has reached a consensus.

Miao Hongbing described the win-win situation in this supply chain management process as a kind of well matched cooperation. White-collar workers can not cooperate with the world better than white-collar workers and better companies, nor can they cooperate with people and companies in the world who are not as good as white collar workers. Only when they are equal to each other can they make a profit in supply chain management, otherwise the supply chain built up may be unhealthy.

Industry category slow cycle coping fast fashion

With such a set of data, the general garment enterprises release the fashion trend 6 months ahead of time. The fabric enterprises should release the fashion trend in advance of 12 months or so, while the yarn enterprises should publish the fashion trend 18 months ahead. Why is that so?

Sun Ruizhe believes that the longer the industry chain is, the longer the cycle it needs to organize and produce. The term is called "planned production mode", and the higher the downstream demand, the higher the demand for the market or the quick response of the order.

He called this phenomenon the contradiction between slow cycle and fast fashion in textile and apparel supply chain.

How to solve these contradictions, reporters found that some enterprises tried to control the entire supply chain.

Among them, the whole industry chain model of YOUNGOR is represented.

In just a few years, YOUNGOR has built a complete industrial chain from cotton planting to spinning, weaving, printing and dyeing, fabrics, garments manufacturing, designing and retailing through joint ventures or wholly foreign-owned businesses.

In the words of economist Lang Xianping, YOUNGOR not only did not go to sheep, but also other clothes related industries.

In this regard, YOUNGOR boss Li Rucheng's explanation is that the future competition is not only the competition of brand and product, but also the competition between industry chain and supply chain.

In the future, manufacturing enterprises are scarce resources, especially those with R & D capability and quick response capability.

Of course, let the industry take delight in the discussion, besides the case value of the whole industry chain model of YOUNGOR, there is also a discussion about progress or regression at the level of supply chain management. Although no one has given the exact answer, it is obvious that YOUNGOR can not eat it in the huge textile and garment supply chain.

Then, under the background of the whole industry, what is the healthy supply chain mode?

Sun Ruizhe gave reporters a basic analysis of the basic experience of the international textile and apparel supply chain: first, the mode of the front shop and the factory; the core enterprise set design, production and sales as one; then the separation of production and retail links, and the core enterprises outsourcing the production process; later, some brands pferred the design links, represented by Apple's socialized design service, and of course, the fast fashion enterprises dominated by buyers could also be included; and then the establishment of the third party quality inspection and inspection institutions.

From this perspective, every link in the supply chain is more and more subdivided and more specialized, and the corresponding supply chain optimization management becomes more and more important.

On the optimization of supply chain, some enterprises choose to integrate resources, while some strong enterprises choose to control resources. YOUNGOR obviously belongs to the latter.

Of course, the integration and optimization of the whole industry chain is undoubtedly a problem that the global textile and Apparel Supply Chain Conference (or even the whole industry) should solve.

Four shifts in supply chain management from a global perspective

In the research of textile and apparel supply chain management, there is a very typical globalization case ZARA.

Although we have seen different versions of the ZARA supply chain system with many data decomposition, what is the supply chain management of ZARA? Only ZARA herself knows.

What we can see is the rapid response of ZARA worldwide. She has made fast fashion a benchmark. But more and more people recently believe that ZARA is also likely to fall into fast fashion. Especially after 7 consecutive quality gate events, ZARA fans are puzzled: what is the matter with ZARA?

But the discerning eye could see that the supplier of ZARA had problems.

The theme of the upcoming global textile and apparel supply chain conference, which will be held in Shaoxing in July, happens to be: supplier selection and optimization.

Fu Guangwei, deputy director of China Textile Information Center, believes that the global conference on textile and apparel supply chain aims to solve one problem in one year.

This year, we will discuss how to strengthen supplier management around the selection and optimization of suppliers. We can select the right suppliers, ensure the quality of procurement, reduce the cost of procurement, and create the core competitiveness of enterprises.

He also stressed that competition in the future is supply chain competition, and every country is part of the supply chain. Both developed and developing countries, both poor and rich, are among them.

How can we achieve the healthy and sustainable development of the supply chain globally?

Sun Ruizhe thought that several pformation of supply chain management should be completed: one is from the past point to point supply chain management to the system management system, the chain to the chain management system pformation; the second is to pform from the relatively closed business relationship to the open platform resource sharing; the third pformation is the pformation from tangible internal quality control to invisible sustainable development; and another change is from the disorderly enterprise competition behavior to the orderly enterprise to undertake social responsibility voluntarily.

One thing is certain: China's textile and garment enterprises have long been an important part of the global textile and apparel supply chain. This may be the original intention of the global textile and apparel supply chain conference, and what will happen in the future?

Perhaps we can find the answer at the conference site in July.