From back in the days the supply chain in fashion asks for high margins and for high volumes to produce and because of the oversea locations to produce the clothing it asks a firm planning. Manufactures and agents try to make nice samples for the brands, retailers try to analyse with data, but mainly based on a feeling to buy the right fashion styles and the right sizes for their clients into their store.

Orders in high volume are almost a must to make high margins on their products and build a healthy company. Trying to change something after placing the order is very difficult. If the retailers are making a mistake the goods will go into sale. There is also a possibility that the articles are going back to the manufacturer and will be sold through factory outlets to give the products a second change.

Because of the high competitive market the need of down prizing, big sales and the use of Outlet stores is growing and creating a race to the bottom. Consumers are reacting on this and are waiting to buy. With high buying prizes and low selling prizes the margins are going down. This al asks for a different approach.

The PRICE system:

P Product push: Push driven, Volume driven, Big outlets, Mass production, Sale

R Reactive: No technology, History is leading, Traditional, Trend following, Short term

I Intensive: Labor intense, Global supply chain, Highly competitive market, Exhaustion supply chain

C Cost driven: Low prices, Cost driven, Scale of operations, Authority, Low wages

E Externalities: External cost, Ethical dilemma, Footprint, Throw away consumption

My solution:

S Smart Technology: Breakthrough of technology, new printing methods, computerization

M Market Driven: Pull market driven, Added value, Customize, Glocal, 30% less use resources

A Active: Visionary trend setting, Interaction with chain, Online and offline cooperation

R Responsible: Corporate social responsibility, Goal driven solutions, Compulsory, People, Planet, Profit, back to the people

R Rental: Renting the overstock 100% sell through guarantee

T Timeless: Sustainable consumption, Continuity, long term profits

T Transparency: Transparency in-costprice- Marging of company-Conditions of production, Community ideas-Humans who produce-Where the garments are produced

SMARRTT and sustainable

Advantages from this other direction in the supply chain is that economically there is less over production which has a positive effect on your stock position.

Which means less sale and selling the goods for a lower price and this off course is very positive for the net profits within the company.

Consumers get products which they like to buy because they help to develop the product, which means less returns.

But would like to go one more step further and that is to have a 100% sell through guaranty without losing margin and put it up for sale How?. By bringing the overstock to companies who borrow clothing to other people. f.i. de kleding bibliotheek through this way you are able to earn back your invested money from production and you have 100% sell through without losing money on the items.

On the other site this way of using the supply chain is very important how we treat the environment. Waist of raw materials and resources are reduced and also the logistics are being reduced. And because of the use of more technology within the production process the use of energy and water can be reduced also. Painting and printing technics without the use of any water are more often used to produce garments.

Important is that the use of technology into the fabrics is being developed more and more to reduce washing and drying of the clothes and which also should reduce the wear and tear of the garments to keep the lifecycle longer from the products and this all will make the ecological footprint smaller

Also the ethical site of doing business in the SMARRTT way, this because computerizing the fashion business it will prevent that people are being used and are under paid. The downside is that poor countries are growing less rapidly.

This is also the reason that TSHARED is donating 5 euro of every sold item to the honest clothing foundation because TSHARED believes education can make a hudge difference in the lives of these children in development countries.

‘Fashion is about going ahead, not about Memory’

(Quote Karl Lagerfeld. )

Please let me know in the comment box below what you think about this new way of doing business the smarrtter way.

I'm very curious about your contribution to this blog.

On our way to Zero Waste,

Jeroen van der Heide

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