The move to build factory and local sourcing is essential in the countries with more restrictions on trading. Also, the vertical integration is a long term investment that H&M needs to start from now. In the fast fashion industry, speed and cost are key successful factors. Thus, innovation on supply chain efficiency that reply to consumer’s changing needs is the thing the company need to concern about today.
It’s a huge opportunity for traditional industry like agriculture to go digital. It can significantly raise supply chain efficiency. Moreover, leveraging on digital tools, the company can control inventory effectively. Besides, the company can utilize the digital tools to respond to customers needs by predicting demand and managing supply. It will be an competitive edge for the company to grow sustainable.
It’s a significant and essential move to go e-commerce. Moreover, digitalization is important to retail business nowadays. With strong information system, retailers can collect shopper’s data efficiently. With e-commerce site, retailers can even trace shopper’s action and journey effectively. Thus, Walmart should keep investing in digital analysis to upgrade their supply chain efficiency and inventory control.
What I learned about was that other players in the market also implemented sustainability practices. For example, Mr. Brown Cafe passed Rainforest Alliance Certificate for its retail coffee product. Rainforest Alliance Certificate focus on environmental sustainability, food safety and worker’s wellbeing. It is a very strict rule offered by NGO. It is a good news that key players in the market are concerned about the impact of climate change and manage to improve the status quo with Corporate Social Responsibility investment.
I agree that demand is certainly an issue. Nowadays, people don’t trust “lab food” especially meat. People care about healthiness and are willing to pay more for food with premium quality. Also, traditionally people think “real meat” can bring natural proteins while the lab ones are “fake” even they deliver same nutrition. Thus, for the market to grow, the company need to invest abundant marketing resources to educate consumers.
I agreed NIKE’s strategy to go lobbying, integrate supply chain vertically, and the effort of hiring more skillful labors. What NIKE can do more is to extent its sustainable practice. Not only focus on product raw materials but also on how to make overall supply chain more efficient and sustainable, which lower the cost at the same time to cover the complexity post by regulations.