People
This week has been pretty bruising for the fashion retailer Boo Hoo, with more than £2bn evaporating from its £5bn market valuation. It is an example of hitting the headlines for all the wrong reasons - with allegations about treatment of the workers who make their clothes and possible links to the Covid-19 surge in Leicester.
Related brands, influencers and customers have responded negatively. However, there is some investor support and clearly a view from some that the longer term value of the business remains sound. It seems that in fashion, shoppers can have very short memories - the continued issues arising from factories in Bangladesh is an ongoing example of consumer 'blind spots' when it comes to fast fashion.
The lesson for companies who have been unexpectedly caught up in supply chain issues arising from Covid-19 is that visibility of provenance for your products is essential. Supply chain resilience is only possible with a genuine understanding of how ingredients, materials and parts are sourced and the labour credentials associated. Digital technology will play a vital role in enabling this, with blockchain solutions underpinning supply chain and logistics for high performing businesses.
Whether you are a restaurant chain, bank, consumer goods firm or energy giant - intelligent supply chains and associated risk and compliance frameworks will be essential to take control. Not being aware is no longer an excuse and, as we have seen with Boo Hoo, is proving an expensive and potentially damaging exercise.
