How to Chart a Path for Supply Chain Transformation

Abstract

This chapter explains how to design a path for supply chain transformation and discusses two frontier markets, Ethiopia and Myanmar. With a textile and garment industry dating back to 1939, Ethiopia’s government is keen to see the apparel industry reach exports of one billion dollars by 2016, and invites other countries and major industry players to invest. Similarly, when compared to major sourcing locations in South Asia, Myanmar has a small readymade garment industry with high ambitions. However, the industry is also facing significant labor and environmental challenges. Vast pockets of potential productivity gains—economic, social, and environmental—remain largely untapped. A still timid green transformation of the global economy is in process, and the resulting savings potential is considerable in an industry with such low total resource productivity. How exactly the path forward looks like requires explanation. Blueprints for supply chain transparency do not yet exist, but important foundational work is under way. This chapter explains the approach of the Apparel Innovation Consortium, using innovative financing to raise resource efficiency and improve working conditions.