B2B for Apparel Retailers

I am from B2B industry so thought of sharing this interesting topic of ‘B2B for Apparel Retailers’ which I read sometime back published in McKinsey Quarterly.

B2B marketplaces are exploding onto the scene, signaling a transformation of the procurement landscape. This expansion is producing a land grab by new entrants who seek to revolutionize supply chains and by incumbents who are determined to halt disintermediation.

The retail industry is no stranger to these trends – more and more apparel segment business-to-business (B2B) marketplaces have emerged in recent years. In response, both retailers and branded manufacturers are scrambling to determine what procurement or supply-chain benefits marketplaces are offering and how they can capture those benefits.

Apparel retailers and branded manufacturers can gain significant value from employing the right combination of B2B marketplaces. The opportunity to increase earnings could range to 70 percent over time for some apparel retailers and brands. This opportunity reflects the sector’s historically slim net margins and the critical importance of supply-chain efficiencies to margins. The magnitude of the opportunity will depend on an apparel retailer or branded manufacturer’s sophistication, scale, automation, and degree of collaboration with suppliers.
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