Levi's to transform its supply chain under new operating model
Levi Strauss & Co. (LS&Co.) is to roll out a “transformative new operating model” that will create a more sustainable supply chain and a cleaner jean.
Called Project F.L.X. (future-led execution), this new model replaces manual techniques and automates the jeans finishing process, allowing the company to reduce the number of chemical formulations used in finishing from thousands to a few dozen.
Traditionally, denim finishing – which creates worn, faded design elements on jeans – has been a highly manual, labour-intensive and chemical-reliant process.
Levi’s digitization enables a responsive and sustainable supply chain at an unparalleled scale.
“Thirty years ago, jeans were only available in three shades: rinsed, stonewashed and bleached. Today those three shades have exploded into endless variations, all produced with very labour-intensive jobs and long lists of chemical formulations,” said Bart Sights, vice president of technical innovation at Levi Strauss & Co. and head of the company's Eureka Innovation Lab.
“We're designing a cleaner jean for the planet and the people who make Levi's jeans, and we're doing it on a scale that no one else has achieved to date.”
The company said the commitment is a major step to achieving zero discharge of hazardous chemicals by 2020 and accelerates the elimination of many chemical formulations that the company's Screened Chemistry program identified as "phase outs."
Among the chemicals that will be eliminated is potassium permanganate, an oxidizer that is used industrywide to replicate authentic vintage finishes.
“This is a significant win for the industry,” said Robert Strand, executive director for the Berkeley-Haas Center for Responsible Business.
“It's inspiring to see how LS&Co. used constraints to drive innovation, paving the way for a more sustainable apparel industry. This is an important step forward that I hope others will follow."
Beyond eliminating many chemicals, Project F.L.X. is expected to reduce textile waste by more accurately making what the market needs and may also provide the opportunity to save water in the future.
The company has already proved it can use nearly 100% recycled water in the final manufacturing stages with Project F.L.X. and is exploring the possibility of rolling out this water recycling capability more broadly over time.
To help unlock the benefits of digitally enabled design and development, LS&Co. turned to long-standing partner Jeanologia, a leader in eco-efficient solutions for fabric and garment finishing.
Since 1993, Jeanologia has operated with the ambition of advancing sustainable apparel manufacturing by delivering disruptive technologies, including ozone, laser and e-flow finishing systems. The company's like-minded focus on scalability was essential to supporting LS&Co.'s end-to-end, transformative vision.
Pandora and IBM digitise jewellery supply chain
Pandora has overhauled its global supply chain in partnership with IBM amid an ecommerce sales boom for its hand-finished jewellery.
The company found international success offering customisable charm bracelets and other personalised jewellery though its chain of bricks and mortar retail destinations. But in 2020, as the COVID-19 outbreak forced physical stores to close, Pandora strengthened its omnichannel operations and doubled online sales.
A focus on customer experience included deploying IBM’s Sterling Order Management, increasing supply chain resiliency and safeguarding against disruption across the global value chain.
Pandora leverages IBM Sterling Order Management as the backbone it its omnichannel fulfilment, with Salesforce Commerce Cloud powering its ecommerce. Greater automation across its channels has boosted the jeweller’s sustainability credentials, IBM said, streamlining processes for more efficient delivery. It has also given in-store staff and virtual customer service representatives superior end-to-end visibility to better meet consumer needs.
Jim Cruickshank, VP of Digital Development & Retail Technology, Pandora, said the digital transformation journey has brought “digital and store technology closer together and closer to the customer”, highlighting how important the customer journey remains, even during unprecedented disruption.
"Our mission is about creating a personal experience and we've instituted massive platform changes with IBM Sterling and Salesforce to enable new digital-first capabilities that are much more individualised, localised and connected across channels and markets,” he added.
Pandora’s pivot to digital
The pandemic forced the doors closed at most of Pandora’s 2,700 retail locations. To remain competitive, it pivoted to online retail. Virtual queuing for stores and virtual product trials via augmented reality (AR) technology went someway to emulating the in-store experience and retail theatre that is the brand’s hallmark. Meanwhile digital investments in supply chain efficiency was central to delivering on consumer demand.
“Consumer behaviour has significantly shifted and will continue to evolve with businesses needing to quickly adapt to new preferences and needs,” said Kareem Yusuf, General Manager, AI Applications and Blockchain, IBM. “To address this shift, leading retailers like Pandora rely on innovation to increase their business agility by enabling and scaling sustainable supply chain operations using AI and cloud.”
Yusuf said Pandora’s success was indicative of how to remain competitive by “finding new ways to create differentiated customer experiences that protect their enterprises from disruptions to help mitigate risk and accelerate growth”.