Italy’s largest fashion brands pledge to Detox their supply chains
During a recent press conference, 20 companies from Italy’s Prato fashion district pledged their commitment to Greenpeace’s fashion Detox. The district is home to some of Italy’s oldest textile manufacturers and is Italy's most extensive fashion supply chain, exporting 2.5 billion euros of clothing annually to retailers such as Burberry, Valentine, Armani and Gucci.
Greenpeace is calling for brands across the world to implement the Detox solution that aims to eliminate the use of all hazardous chemicals from their global supply chain by 2020. This is based on taking the right precautions to keep chemicals out of the supply chain, acting with transparency on behalf of communities living in areas that could be affected by pollution from these chemicals and, finally, eliminating all releases of these chemical from the supply chain.
The agreement from the companies within the Prato district will affect 13 thousand tons of yarn and 13 million metres of fabric each year. These companies have already removed several hazardous chemical groups from its production as required by the Detox campaign. These include brominated and chlorinated flame retardants, organotins compounds, and amines associated with azo dyes that can have negative effects on human reproductive systems and cause cancer.
The Greenpeace Detox campaign demands that fashion brands commit to eliminate the use of all hazardous chemicals by 2020 and requires their suppliers to disclose the releases of toxic chemicals from their facilities to communities on an online independent platform. The Prato region’s commitments will be added to the growing list of companies choosing to Detox their fashion by 2020 including 35 international fashion and textile brands and retailers, representing more than 15% of global textile production in terms of sales. Among the companies joining Detox are Miroglio and Inditex as well as major international brands such as Valentino, Adidas, H&M, and Burberry.
Click here to find out more about the first group of Prato companies committed to Greenpeace’s Detox campaign (in Italian).
5 Minutes With: Jim Bureau, CEO Jaggaer
What is data analytics, and why is it important for organisations to utilise?
Data analytics is the process of collecting, cleansing, transforming and analysing an organisation’s information to identify trends and extract meaningful insights to solve problems.
The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions. Spend analysis and other advanced statistical analyses eliminate the guesswork and reactivity common with spreadsheets and other manual approaches and drive greater efficiency and value.
As procurement continues to play a central role in organisational success, adopting analytics is critical for improving operations, meeting and achieving key performance indicators, reducing staff burnout, gaining valuable market intelligence and protecting the bottom line.
How can organisations use procurement analytics to benefit their operations?
Teams can leverage data analytics to tangibly improve performance across all procurement activities - identifying new savings opportunities, getting a consolidated view of spend, understanding the right time for contract re-negotiations, and which suppliers to tap when prioritising and segmenting suppliers, assessing and addressing supply chain risk and more.
Procurement can ultimately create a more comprehensive sourcing process that invites more suppliers to the table and gets even more granular about cost drivers and other criteria.
"The main benefit for procurement teams that adopt analytics is that they’re equipped to make faster, more proactive and effective decisions"
Procurement analytics can provide critical insight for spend management, category management, supplier contracts and negotiations, strategic sourcing, spend forecasting and more. Unilever, for example, used actionable insight from spend analysis to optimise spending, sourcing, and contract negotiations for an especially unpredictable industry such as transport and logistics.
Whether a team needs to figure out ways to retain cash, further diversify its supply base, or deliver value on sustainability, innovation or diversity initiatives, analytics can help procurement deliver on organisational needs.
How is data analytics used in supply chain and procurement?
Data analytics encompasses descriptive, diagnostic, predictive and prescriptive data.
Descriptive shows what’s happened in the past, while diagnostic analytics surface answers to ‘why’ those previous events happened.
This clear view into procurement operations and trends lays the groundwork for predictive analytics, which forecasts future events, and prescriptive analytics, which recommends the best actions for teams to take based on those predictions.
Teams can leverage all four types of analytics to gain visibility across the supply chain and identify optimisation and value generating opportunities.
Take on-time delivery (OTD) as an example. Predictive analytics are identifying the probability of whether an order will be delivered on time even before its placed, based on previous events. Combined with recommendation engines that suggest improvement actions, the analytics enable teams to proactively mitigate risk of late deliveries, such as through spreading an order over a second or third source of supply.
Advanced analytics is a research and development focus for JAGGAER, and we expect procurement’s ability to leverage AI to become even stronger and more impactful.