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Industry Digital Progress
The oldest industry in the world has been operationally automating unnoticed by many over the years since the beginnings. From spinning to weaving to cut & sow, some degree mechanization has historically been adopted including in the 20th century use of numerically controlled processes as well as some electronics for cut & sow operations as wellas in knitting and weaving ( e.g., jacquards) as well as rudimentary production control processes. But it was really after the coming of the internet that digital transformation really started in earnest.
In any industry, including textiles, digital maturity can be measured along four dimensions: How well are firms (i) internally digitized and connected? (ii) digitally connected to their customers? (iii) digitally connected to their global supply chains? And (iv) how well do firms use these connections through predictive and other analytics to improve their competitive position (I.e., improve customer experience and value) and increase profitability?
Along the lines of the WEF analyses for consumer goods, the single largest transformation in textiles has been on the customer facing side, to omni-channel retail, yielding massive cost savings and productivity improvements for consumers and society. From time saved shopping online, fewer car trips, to alternative last-mile delivery options such as drones, the shift to e-commenrce has had a significant impact on the textile industry. Ecommerce in textiles has in turn driven automation in order processing, fulfillment, transport and logistics, not to mention in payment systems as well. Textiles, which drove industrialization in the 17th to the 19th centuries is actually also now driving the 4th. industrial revolution.
On the supply chain side progress has been slower. Offshore, where most textile manufacturing now takes place, the supply chain is highly fragmented and geographically diverse and labor-intensity has
been slow in giving way to technology especially in garment manufacturing with slow improvements in production speed, precision, and quality. But supply chain visibility, and standardization of sourcing and selection processes have been even slower to digitize although some online partnership platforms (such as Foursource) are now beginning to appear.
Overall, while the customer side of the textile industry (B2C) has advanced to digital in a big way, the supply chain has been slower to catch up resulting in a sort of digital imbalance in the industry with the B2B side remaining slower to catch up. Overall our assessment of digital maturity of the textile industry is of the order of 68%
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Case Studies
Digital Transformation in the Textile Industry - CASE STUDIES
The Yield is an Australian agricultural technology company on a mission to transform food and farming practices by building secure, scalable digital technology to sense, analyse and predict on-farm growing conditions, and then deliver information in a usable format to help increase yield, reduce waste, mitigate the risk and cost associated with soil and weather and inputs. Partnering with Microsoft (Azure) and Bosch, Yield has received several innovation awards from Government and International organizations. Learn More..
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