Shared Risk and Reward in the Fashion Supply Chain

Shared Risk and Reward in the Fashion Supply Chain

by Dunja Hoejenbos

Session 2 - Shared Risk and Reward in the Fashion Supply Chain

Creating a better retail margin, at less risk, requires investment in process innovation. What investment should retailers and suppliers make, and how can it create value both upstream and downstream? How does a faster, leaner and more agile sourcing relationship help to balance risks and rewards? Is our industry business model capable of overcoming its low profit, low growth and low tech reputation? Isn’t the balancing and sharing of risk ánd reward among buyers and suppliers one of the keys to unlocking a better overall performance of the supply chain?  

This is the 2nd in a series of three webinars that IAF is organizing together with e-learning specialist MOTIF.


John Thorbeck

John S. Thorbeck is Chairman of Chainge Capital, a firm focused on retail industry transformation via speed and agility. He is a former CEO of GH Bass & Co (PVH), and Rockport (Adidas), and senior executive for Timberland Co and Nike.

Liz Simon

Liz Simon joined Fashion3 in 2017 to catalyze change and position the Fashion3 Brands for future growth. Fashion3 is an ecosystem of 6 European fashion brands, with 2400 stores across 50 countries and part of the large group AFM, which also contains Decathlon and Auchan. She has held senior positions at Primark, C&A and Marks & Spencer.

Anne Patricia Sutanto

Anne Patricia Sutanto has played a vital role in turning PT. Pan Brothers Tbk. into Indonesia’s largest garment manufacturers. The company makes apparel for international well-known brands, has approximately 38,000 employees across Indonesia.


  • Too much stock, too much pollution, the high costs of the low cost sourcing model. The industry faces a capital crisis and a talent gap.
  • Foundation for the transition to an industry that is more sustainable in the broadest sense of the word (better for people, planet and profit) is a full transition to a sourcing model based on flexibility and the reduction of uncertainty. Market value gains of companies successfully reducing uncertainty through flexibility regularly are 30%-40%.
  • What is needed for a transition is ‘architectural innovation’, a reconfiguration of processes within companies and within supply chains. The current adversarial relations in the supply chain are a barrier to change.
  • Partnering strategically is how to move the needle. Going upstream to solve downstream issues, co-solving supply chain issues. Pushing on innovation and not on price.
  • ‘De-risking the supply chain requires a wholistic approach, involving the entire company, the entire supply chain.
  • Working together beyond tier 1, also with fabrics suppliers is a practical way to increase flexibility and control. Brands and manufacturers develop fabric libraries to have available fabrics as a starting point for design. As in the car industry, certain fabrics can form a ‘platform’ to develop multiple finishes from.
  • Mindset is key, being real, open and authentic at any step. Planning and working on in the supply chain on the future together, tightly coupled in trust and transparency.
  • Sustainability only works if it is woven through every component of the business.
  • The system is important, but people make the system; it’s about continuous learning.