ECONOMYNEXT – Tech units of thread maker Coats, HSBC Bank have teamed up with Res.Q, a technology firm backed by Sri Lanka’s Hirdramani group to cut costs and boost efficiency as the apparel industry is hit by Coronavirus.
The firms will create a single platform to provide real-time data and view the apparel supply chain, helping boost efficiencies leading to cost savings, as well as reducing the need for face-to-face contact.
“The apparel industry has been devastated by knock-on effects of Covid-19 and requires a reset,” Vivek Ramachandran, chief executive of Serai, a unit of HSBC Bank which helps buyers and suppliers to interact through a secure platform said in a statement.
“The industry must rebuild relationships and respond to new demand patterns that will emerge as part of the new norm.
“This will require retailers, brands, manufacturers and suppliers to increase their digital engagement, make new connections, share more information, and systematically address pockets of inefficiency across the supply chain.”
Serai provides a neutral platform open to all industry participants to connect and access services offered by Coats Digital’s and Res.Q, which provides data driven insights for decision-making.
“The industry now has to rethink its practices and invest in technology to survive in the new normal,” Adrian Elliott, President, Apparel and Footwear, Coats.
The increased transparency is expected to increase trust between buyers and sellers and improve efficiency, reducing operating costs for participating companies.
“..[W]e are seeing a demand for systems that speak to each other to create transparency and eliminate duplication of work between Brand and Vendor,” Samath Fernando, CEO Res.Q said.
Coats Digital, Res.Q and Serai hope to strengthen relationships between buyers and sellers in the apparel industry and cut inefficiencies by connecting multiple standalone systems that companies currently use to manage their processes. (Colombo/May21/2020)