As a world trade Recovered from Covide-19, clothing quest still experiencing storms of volatile demand, logistical congestion, inflation and more. The supply chain has reached the top of the executive agenda more than ever. And supply chain disruptions – especially ship prices and raw material prices and capacity pressures.

50% of companies have started big changes to get faster and more flexible.

A fundamental change to the source model is needed to be flexible, fast, sustainable, digitally enhanced and consumer-centric. Our 2021 Clothing CPO Survey — Reflected by Major Purchasing Officers (CPOs) by 38 International Brands and Retailers — The industry assesses progress on this journey, looks forward to 2025, and offers some strategies to stay on course.

Our findings confirm that dramatic changes are taking place. Half of the companies surveyed made organizational changes by updating their supply and design processes, workflows, and business priorities.

Supply chain failure

But the path ahead will not be easy. There are many obstacles in the way of today’s information source executives.

  • Transportation disruption; Port closure, port congestion, container shortages and capacity problems have all contributed to delays.
  • Variability of interest; After Covider-19, we see irregular recovery and increased interest. Consumer spending has been reduced, production and transportation capacity is declining.
  • Kovid-19: As a result of CVD-19, the overall production base is still rising or falling. Unbalanced global recovery rates will continue to affect the business for at least the next year.
  • raw materials: Due to the slowdown in the flow of raw materials from China, the industry is overwhelmed by supply problems. Restrictions to the coast have been hampered by limited supply of raw materials and drastic price increases.
  • Online sales; During CVD-19, there was a significant increase in online sales — unprepared for the pre-epidemic stages. At the same time, competition from the new generation of fast-growing fashion players is growing.

Costs are increasing.

The end of the manufacturing-cost deficit has never been clearer. For the first time in ten years (since the initial cost of the costume CPO survey), shipping costs are a major concern for executives (Exhibit 1). This will not be lost in the near future.

Raw prices are rising, and further increases are expected. Pricing in coastal markets is contributing to the trend. Many companies plan to accelerate the transition to sustainable fiber – but this will increase the instability of fodder supply.


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He joined the change in speed and flexibility

These are not short-term disruptions, and are challenging the fashion industry. Adjustments will be high, and internal barriers to organizational change will continue (Exhibit 2).

Internal barriers to speed and flexibility
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Inspired by clothing companies to increase efficiency, reduce lead time, and supply chain-based supply chains are moving in a new direction.

Simplification of classification; Most companies plan to make dramatic changes to their category plans and design decisions, which will lead to product complexity. Many adopt the “less is more” approach, with more responses and fewer options.

71% of the surveyed CPOs plan to increase their proximity.

Focusing on design and product development efficiency Fabric reinforcement, platform and pre-ordering have continued to grow. Virtual design is a technology that facilitates speed and flexibility, saves development time and increases cost efficiency.

Source: Determining Country Mix Clothing companies are consolidating their supply chain, relocating and, especially to the coast, to maintain the supply chain. There must be a right balance between reliability and variability.

Creating partnerships; Companies are strategically partnering with trusted suppliers — especially those who invest in digitalization and knowledge and are fast and flexible in terms of product cycles and group sizes. Long-term, committed relationships are growing with stronger and more sophisticated suppliers, clear winners are coming. About half of the companies in the study plan to reduce their supply base by up to 25 percent, and old-fashioned suppliers are struggling.

Developing Digitization Supply chain digitalization has emerged as an integral part of success by enabling speed and flexibility in both analysis and process. The epidemic has changed dramatically with the use of virtual samples, digital interfaces, analytical decision-making, and improved process and design processes. As companies embark on global digital transformation, more investment is needed.

Going to a new operating model Source teams are taking on more roles and developing different skills. At the same time, many companies are planning to increase the number of surging offices. What is clear from this change is the growing need for Hong Kong as a resource center.

End-to-end (E2E) product-development processes have been focused. Successful organizations are rethinking internal structures, tools, capabilities, and processes. With the emphasis on total sales and net product margins, companies are beginning to adapt to their targets.

Accelerate for success

These trends are synonymous with new ways of working for product teams and suppliers. Demand for internal talent and more competent suppliers; Change in the role of source offices; And a general change in organizational structures to meet the needs of customers. The main obstacles are quiet structures, a tendency to spend more money than product margins, and a lack of digital tools and skills.

We offer strategies to help the industry overcome the input barriers ahead and achieve a new success.

1. Turbocharge digital tools and capabilities

Source executives are at the forefront of digital transformation, developing driving skills and ensuring ownership of these devices within the organization. It is important to invest in digital growth, new technological advances and other capabilities. Fully integrated configuration is important We urge all garment companies to work on digital and analytical transformation rather than focusing on selected devices.

2. Optimize the starting strategy for the net margin

Future organization identifies calendars that allow healthy margins: Many calendars are too vague or inadequate. Investing in the role of a calendar manager and clarifying the roles and responsibilities opens up valuable value.

It will be important to develop strategic boundary capabilities. A clear vision is essential for the requirements of different product types as well as for the potential development of each source country. Developing the right guidelines and KPIs for organizations will help not only cost but also drive change and net profit margins.

3. Create a (virtual) ecosystem

Collaborating with a group of major providers is critical to achieving flexibility and supporting transparency. In a product life cycle management (PLM) system, suppliers pay faster, and achieve greater transparency in production and delivery schedules. At the same time, it is becoming more and more important to build an environment beyond level 1 to ensure adequate and flexible supply of raw materials. In addition to improving speed and flexibility, creating a digital environment ensures that products are sustainable and ethical.

4. Balancing the organization with new incentives and roles

Many organizations struggle with the wrong incentives and priorities. We strongly believe that in order to achieve the desired E2E alignment, it is necessary to develop joint KPIs on a case-by-case basis. Aside from financial issues, lack of process and planning attention, including poor calendar discipline, has long-term consequences. We recommend that you include these factors in organizational targets.

Successful resource management will not only focus on the best cost and rethink the responsibilities of finding offices. As resources spend less time on traditional tasks such as command management, they will improve in other areas, including provider-communication management and digital and analytical skills.


Achieving a new direction based on speed and flexibility requires a complete change of clothing source. Organizations need to focus on internal and external factors to elevate the main line while meeting the needs of buyers. The keys to success will be a complete process-model upgrade, including a digitalization turbocharger, as well as an improved calendar discipline and integrated, E2E thinking. They are radical changes that will help jump the brand and drive it to 2025 and beyond.

take down “Renew the fashion source for the speed and flexibility of the forehead”The full report on this article (PDF – 7MB).