Up Close is Sourcing Journal’s regular check-in with industry executives to get their take on topics ranging from personal style to their company’s latest moves. In this Q&A, Dennis Lau, CEO of packaging, labeling and trims solutions company Rudholm Group, discusses how fashion could model its supplier relationships after the automotive industry and why he prefers in-store shopping.
Name: Dennis Lau
Title: CEO
Company: Rudholm Group
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Which other industry has the best handle on the supply chain? What can apparel learn?
The automotive industry is often recognized for its advanced supply chain management and offers several practices that could significantly benefit the apparel sector. Just-in-time (JIT) manufacturing, a strategy focused on increasing efficiency and decreasing waste by receiving goods only as needed, could help apparel companies reduce the costs associated with unsold inventory. Additionally, the close integration of suppliers into production processes, a common practice in the automotive industry, could enhance the apparel industry’s responsiveness and shorten lead times through better supplier relationships and resource sharing.
Lean manufacturing techniques, which aim to minimize waste while maximizing productivity, could be adopted to improve material usage and labor efficiency. Furthermore, implementing advanced planning and scheduling systems (APS) could align production schedules more closely with market demand, thus minimizing overproduction and reducing markdowns. By adopting these methodologies, the apparel industry could enhance its supply chain efficiency and overall productivity.
What should be the apparel industry’s top priority right now?
As consumer demand for fashion that is not only stylish but also sustainable and ethically produced grows, the apparel industry is under increasing pressure to prioritize these aspects. This shift is further driven by tightening global regulations on environmental and labor practices, prompting us at Rudholm Group to continue the adoption of sustainable and ethical sourcing to avoid fines and adapt further to market changes.
The resource-intensive nature of textile production including the packaging and labeling aspect, reliance on scarce resources and vulnerabilities in global supply chains—as highlighted by the Covid-19 pandemic—underscore the need for more sustainable practices and resilient supply chain strategies. Moreover, focusing on sustainability enhances brand reputation, appeals to conscious consumers and may allow for premium pricing. Innovating with eco-friendly materials and production methods not only caters to these needs but also ensures long-term viability. By prioritizing sustainability and ethical practices, the apparel industry can meet current demands and strategically position itself for future success in an eco-aware global market.
What innovation or development holds the greatest potential to improve operations in the apparel and textile industries?
Digital technologies like artificial intelligence (AI) and automation are at the forefront. Automation technologies, including robotics and automated sewing and cutting machines, can enhance production efficiency and consistency by reducing labor costs and allowing continuous operation. AI plays a crucial role in demand forecasting, supply chain management and personalization, enabling more precise inventory management, optimized logistics and tailored customer experiences.
Rudholm Group offers 3D printing and 3D design that is revolutionizing product development by facilitating rapid prototyping, which reduces the time and costs associated with producing new designs, especially when it comes to packaging, trims and generally hardware elements on garments.
Another big topic is the digital product passport (DPP) to enhance transparency and traceability, providing a tamper-proof record of the garment lifecycle, crucial for verifying ethical sourcing and sustainability claims.
Then there are sustainable manufacturing practices, like waterless dye technologies and material recycling, that not only reduce environmental impact but also lead to cost savings through decreased resource consumption. By leveraging these technologies, the apparel and textile industries can achieve higher efficiency, meet consumer demands for sustainability and personalization, and ensure a competitive edge in the global market.
Where do you look for personal style inspiration?
I’m a bit old fashioned and prefer to explore and shop in person. When I’m in the U.S., I like to visit places like New York or Los Angeles, and when traveling abroad, I enjoy browsing through markets in cities like Hong Kong, Tokyo or Copenhagen. I’ve never had the patience for online shopping; I much prefer the experience of seeing and touching things firsthand.
How do you shop for clothing? How would you describe yourself as a fashion consumer?
Many people find that e-commerce has simplified shopping, but I often feel overwhelmed by the choices and unsure about what to buy and where to look. Thankfully, my wife is an incredible help in this area. She’s not only my biggest supporter but also my best stylist that is usually guiding me through the selection process.
How would you describe your corporate culture?
At Rudholm Group, our corporate culture is deeply rooted in Scandinavian values of innovation, sustainability and family-led principles. We are committed to making a positive impact through continuous innovation and eco-friendly practices. Our team is dedicated to building long-term relationships with our clients, ensuring exceptional service and quality in every aspect of our work. We believe that businesses can act as a force for good, contributing to a better tomorrow by promoting ethical practices and sustainability throughout our operations.
What’s the best decision your company has made in the last year?
One of them was expanding our operations in the United States by opening a 20,000-square-foot manufacturing plant. This strategic move has significantly increased our production capacity and allowed us to better serve our North American clients. The new facility has been a resounding success, enhancing our ability to deliver high-quality packaging and labeling solutions efficiently and sustainably. This expansion underscores our commitment to growth and innovation in the global market.
What keeps you up at night?
The global political situation that is beyond my control. The ever-changing geopolitical landscape presents uncertainties that can impact supply chains, international trade and economic stability. Navigating these complexities requires constant vigilance and adaptability, ensuring that our business remains resilient and prepared for any challenges that may arise. While we strive to mitigate risks, the unpredictable nature of global politics remains a significant concern that demands our continuous attention and strategic planning.
What makes you most optimistic?
My naturally positive outlook. I am fortunate to have a supportive network of family and friends who bring balance to my life. Additionally, the dedicated and talented team at Rudholm Group continuously inspires confidence. Their hard work and innovative spirit are key drivers of our success. This combination of personal and professional support fuels my optimism and keeps me motivated for the future.
Tell us about your company’s latest product introduction:
Our latest product introduction is ShareLabel, a digital product passport solution designed to enhance transparency and traceability. With ShareLabel, customers can access detailed product information with a simple scan, helping them make informed choices and extend the product’s lifecycle. This innovative solution reflects our commitment to sustainability and empowering consumers with vital product data.
