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UK start-up aims to address inefficiencies in the fashion supply chain

Written by: Supply Chain Online
Published on: 22 Nov 2016
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FABACUSUK start-up aims to address inefficiencies in the fashion supply chain

A new technology company is aiming to help fashion retailers and manufacturers improve their margins by improving their supply chain efficiency.

Founded by British entrepreneur Andrew Xeni, and Ray Noppe who is the current CTO of Fabacus, and backed by Tom Singh, founder of the UK fashion brand New Look, Fabacus claims to help retailers save on retail prices by around 15 per cent.

The start-up offers a suite of data management and business software that allows manufacturers to streamline the ways that they manage complex supply chains, and some of their savings can then be passed on to retailers.

Xeni said: “There is a huge opportunity for retailers to drive significant cost savings to consumers through better understanding how their products are made. By using living data uploaded onto the cloud, manufacturers have the potential to grow and become far more efficient.”

Singh stated that inefficient procurement and a lack of access to real-time data had impacted on high street retailers’ margins in the face of strengthening online competition.

“Online shopping has been a double-edged sword for the fashion industry. It’s put some traditional retailers under pressure but unlocked a massive wealth of opportunity for those able to modernise and benefit from digital technology,” he said.

Singh went on to add that though some consider “big data” and “lean production” to be buzzwords, with the correct software in place, manufacturers can gain a clearer understanding of what is happening in their businesses and can thereby create more potential and reap major benefits.

He continued: “Fabacus has been created from the ground up inside a clothing manufacturer, and the point is to replace a culture of sticky notes and Excel sheets with digital processes that have the potential to really help companies grow and become more efficient.”

Fabacus has attracted the interest of a number of private equity houses, and Xeni and Singh said that they are in the advanced stages of contracting with both traditional and e-commerce retailers.