Talking strategy: Achim Berg of McKinsey & Company discusses future sourcing trends

The rises in production costs and labour costs in China have resulted in many companies seeking alternative sourcing locations, including Bangladesh, Cambodia, Indonesia and Vietnam. Among these, Bangladesh has emerged as a key contender. Indeed, Bangladesh's textile and clothing industry has contributed greatly to the country's economic development and to its status as one of the fasting growing economies in Asia. Recently, however, the collapse of Rana Plaza in Bangladesh in April 2013 brought the pressing issues of worker conditions and factory safety in the apparel industry to the forefront. Although companies have been quick to set up safety initiatives, it is yet to be seen what impact such initiatives will have on the industry. In "Talking strategy" this quarter, Achim Berg, a partner at McKinsey & Company -- a leading global management consultancy firm with headquarters in the USA -- discusses the key issues affecting sourcing in the global apparel industry. He provides insight into sourcing trends and talks about how compliance is affecting sourcing and what impact this is set to have on the industry. He also discusses how Sub-Saharan Africa and Myanmar have the potential to become new sourcing locations for the industry.

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