Segura’s visibility, mapping and reporting capabilities, not only drive ethical and sustainable supply chains, they also create exciting and proven commercial opportunities. These opportunities can be harnessed through
Therefore SCV, an initiative that is required to meet stakeholder and legislative pressure, can not only be self-financing but positively drive margin gains and bottom line improvement.
Segura sits centrally within the supply chain management function, acting as the authorative point for data collection and reporting. This provides a consolidated operational view (a single view of the ‘truth’) and in doing so, provides new supply chain insight. To this end, major UK retailers are using Segura to provide a consolidated scorecard for all of their suppliers.
This single operational view promotes better strategic management of the supplier base, e.g. what is the geographic distribution of both tier 1 suppliers and importantly, tier 2 to 5 sub-suppliers; where are there potential threats to supply chain security; where are there proportionately greater failings against agreed service level agreements?
Segura provides the visibility necessary to identify and mitigate supply chain risks.
A single user-friendly view of detailed supplier information provides the ability to pro-actively manage order activity and in doing so, also encourage suppliers to adopt best practice, creating efficient and cost-effective processes.
The visibility of supplier orders carries through to components (packaging, trims, fabrics, threads) providing new opportunities to consolidate the supplier base and benefit from more robust commercial negotiation, potentially creating millions of annual cost savings. This visibility also provides an opportunity to pro-actively manage rebates that might otherwise be lost.
In addition, SCV technology enables managers to track and trace orders in progress in real-time. This visibility can help planning, to predict and reduce risks to supply chain logistics, and in case of disruption, flag if new procurement is required.
The single view of the ‘truth’ provided by Segura is increasingly important as production cycles and timelines shorten and allows for alignment with ERP and PLM systems.
The transparency provided can also positively impact wastage by reducing overruns and bill of material inaccuracies; averting the risk of being ‘caught out’ by poorly performing suppliers and spreading the use of best practice, where key suppliers are exhibiting weakness.
Debenhams introduced a nominated supplier program for its branded packaging and used Segura to access real time compliance reporting - to see which of the suppliers had, or had not been adhering to the new policy. Within the first year of using Segura, Debenhams were able to increase compliance of packaging ordering from 40% to over 80%.
There was also an efficiency saving for the suppliers, who rather than buying packaging from multiple nominated sources, and filling in multiple order forms, could now buy the packaging from one source and have it delivered from multiple nominated suppliers. During Segura’s second year we had improved compliance to above 98%.
SCV helps create a culture of openness, holding suppliers to account, driving up compliance, preferring the best performing suppliers, and maintaining successful long-term relationships.
Customers want transparency from their favourite retailers and brands, but research in McKinsey's State of Fashion 2019 report showed declining trust. Provenance information and legal compliance are key parts of fostering that trust and reputation.
"We expect the critical dimensions in which fashion players will be most scrutinized include creative integrity, sustainable supply chains, value for money, treatment of workers, data protection, and authenticity."
The first step towards supply chain transparency for consumers is supply chain visibility within the business.
This is where supply chain mapping tools, like Segura, create a competitive advantage. Collecting and analysing your supply chain data is part of proving your committment to ethical production and sustainable fashion. The end goal is to build brand loyalty with your shoppers. Sharing positive information about your brand values and commitment to transparency, without greenwashing, is likely to bring a commercial advantage.