The role of the CFO has changed dramatically over recent times and will continue to do so. The modern CFO is now emerging as a key enabler in creating a more ‘dynamic’ finance function that can react to ever changing demands from both internal stakeholders and external customer, suppliers and partners. In addition to the traditional responsibility of ‘managing the finances’ of the organisation, the CFO is now increasingly engaged with activities such as strategy formulation and business transformation projects. 

Business transformation projects are increasingly being undertaken to facilitate growth, reduce costs and increase competitiveness in a harsh global marketplace where only the organisations who continually evolve and innovate prosper. The finance function is not immune to this transformation process and can play a key role in its development and adoption.

Chief Financial Officers need to play a leading role to ensure data security within an organisation. Potential threats are proliferating and the financial impact of a breach of data security can be substantial. Consider how your turnover and profitability would be impacted due to a data security breach which could potentially hold your organisation to ransom or prevent users from performing their day to day activities.

At a recent Footwear Workshop organized by the American Apparel & Footwear Association (AAFA), industry leaders and experts discussed key themes and supply chain challenges in the footwear market. At this event, industry leaders highlighted the need for brands to address multiple challenges like supply chain visibility, traceability, compliance, and sustainability. Here are some other key themes:

Behind all the glitz and glamour fashion brands still have a business to run. It’s clear that in 2023 the back-office and supply chain is in the spotlight when it comes to delivering new and improved customer experiences and meeting expectations around sustainability and product provenance.

Smart factories represent the next frontier in operational performance, combining human ingenuity, advanced technologies, and data-driven insights. At the heart of this transformation lies data and its analysis. Data is the lifeblood of a smart factory, and its exponential growth necessitates a viable conduit to ensure seamless flow. 

The fashion industry thrives on innovation. It’s what the consumer wants from us—something new, not just clones or replacements for worn-out items. New product introductions are critical to business success, but only half of them achieve the profit objectives set before launch. To improve the ratio of hits to disappointments, it is essential to listen to the consumer and collaborate with the supply chain.

The consumer sets the bar for value and the supply chain determines whether you meet or miss it. The next decade will call for significant materials and process innovations at both the micro (product) and the macro (enterprise, supply chain, and industry) level. If shorter, more frequent product introduction cycles were the only challenge… but they’re not. At strategic planning levels, the industry must figure out how to convert to more sustainable ways of doing business, starting with raw materials and research and development and expanding product lifecycle management practices to include recycling. At the operational level, rethink the way you work internally and collaborate with supply chain partners to eliminate waste throughout the value chain. If a process doesn’t add value for the consumer, don’t do it. Optimize the entire value chain and focus it on value creation. Innovations arise at every stage, when all the partners can see the value chain as a whole.

As fashion organizations grow to introduce new products or clothing lines, acquire other companies, shift priorities, and change channels to market, key stakeholders can be left out of the conversation. A networked approach to running your company can solve these problems. Collaborative networks work because they engage internal and external partners, workers, and stakeholders, helping to incentivize and execute supply chain processes more effectively than ever before.

New insights will continue to emerge as consumer behaviors shift and production opportunities evolve, but a continuously synchronized and updated network can keep you agile from sketch to store by making critical information accessible to colleagues, organizations, suppliers, and customers. Collaborative networks work to improve customer service, maximize margins, and minimize loss attributed to miscommunications such as missed inventory targets, downtime, spoilage, and other challenges. 

As industry attitudes and consumer behaviors change, so does the challenge of sustaining a business in the fashion industry. The global health crisis has accelerated the need for fashion and retail brand owners to reconsider their current business models to satisfy their digitally native consumers while maintaining omni-channel supply and ensuring sustainable production.

Whether large or small, fashion brands can turn these challenges into opportunities by transforming their business models. How does your organization meet the expectations and desires of today’s digital consumers? Are you still using old technology that might have served you well in the past but is now beyond its shelf life? If you already have an ERP system in place, there’s a good chance it’s no longer able to keep up with your business needs and growth aspirations.