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What You Need To Know About Fashion And Apparel Supply Chain Management by riturajpankaj(m): 11:40am On Apr 20, 2022 |
In the apparel industry, there is cutthroat competition - the industry is insanely fast-paced, demanding, and volatile. For such an industry, having streamlined supply chain management is a necessity. It gives the main thrust into a brand's capacity to rapidly produce and deliver the most recent styles. And this keeps the apparel brand still relevant and on top of the competitors. Since in the apparel industry, the products have short life cycles and high consumer requests, every business within the industry requires a solid supply chain process. It is simply a prerequisite to having an apparel business that fulfills its customer demand on time. Why Do We Need Supply Chain Management in the Apparel Industry? A smooth supply chain management is required by every industry. However, in the apparel industry, where there are quick design changes, ever-changing patterns and styles, and high consumer demand, the need for an efficient supply chain is even superior. The customer’s tastes are continually in motion. Last year's most sweltering patterns may look old and out of fashion soon enough. Today, the consumer wants to keep up with the trends. Therefore, apparel businesses need to foresee stock supply and overloaded products. They need to keep their inventory updated with the latest styles. Running out of a product at a time when it’s demand is high can seriously affect the season's deals. Having an excess of products in the warehouse might cause space issues and problems at the distribution center. A viable supply chain guarantees a consistent stock of items, showing up with perfect timing to fulfill current demands. Without a high level, supply chain management structure, apparel businesses and retailers battle to address consumer demands. Common Problems Within the Apparel Supply Chain Customer Trends The industry demands that the design retailers convey a wide assortment of apparel to fit consumer interests, which can change at lightning-high speed. Since the apparel business is continually anticipating what’s to come in the following season, getting recent trends into production and getting them to the customer before the momentum goes down is quite challenging for apparel businesses. Inventory Problems In the apparel industry, businesses also struggle to manage their inventory network. Since the raw material sourcing, production, and delivery can happen at different locations, apparel businesses require more than a single inventory to store their products. The inventory network is more complicated than just that. Incorporating the manufacturers who produce, take care of the raw materials and completed pieces of clothing, there are three connections to the supply chain prior to including wholesalers and retailers of apparel. Production Problems The production network begins with new plans, which are then executed, delivered and sold. This additional intricacy requires coordinated, proficient operations to drive new items through the store network and oversee stock streams all through. Transparency On top of this, today, customers demand more transparency in the store network. Because of many mishaps in apparel manufacturing globally, numerous customers question where their apparel is created and under what conditions. Since clothing brands tend to have high demand from the customers for the clothing pieces, they often work with numerous apparel manufacturers to make such trendy styles in a brief time frame. And the trend for this “fast fashion”, as it is called, dies out Demand Forecasting Demand forecasting is also difficult in the apparel business. Since trends go back and forth so rapidly, every item is difficult to sell once its trend has died out. Consequently, retailers can't take a guess at the previous year's forecasting projections to decide how an item will perform in the current season. Today, the apparel lifecycle is short, and that implies your business should plan for the following season well in advance and search for the upcoming trends well in advance. Types of Apparel Supply Chain Here are some of the popular types of apparel supply chain: Push Supply Chain In a Push Supply Chain, you analyze the market and forecast the demand based on it to drive the production network. Designers make clothing pieces fully expecting them to sell. They then "push" these items to end-customer retailers. For example, towards the end of summer, you see winter clothes in stores already up on display because there is a certainty that the products will sell. This is a Push Supply Chain. Pull Supply Chain In the Pull Supply Chain, you have to trust that the demand of the product will rise instead of creating it. The manufacturers produce new items just when they realize purchasers will get them. All in all, end-clients and customers get their clothing by first requesting the retailers through the inventory network. Push-Pull Supply Chain The Push-Pull Supply Chain is a mix of some push supply chain features and some pull supply chain features. In this network, a producer may keep products that are finished at a distribution center and use them when the demand for it arises. Likewise, a manufacturer may keep a store of raw materials to quickly fulfill demand in case it arises in the future. Advantages of Supply Chain Management in the Apparel Industry Since the apparel supply chain is so complicated, it requires a cohesive supply chain. Here are some benefits of having an apparel supply chain that is efficient at every step: 1. Reduces Inventory Costs It is possible for retailers to reduce their inventory costs by working with a diverse supplier network. When you have more than one supplier, you can get quotes from them both and then work your way with the one whose rates are more reasonable. You can also limit your safety stock - saving both your money and the space in your warehouse. In case the need for more stock arrives urgently, you will not be dependent on just one supplier. You will always have backup. You can reduce your overstock and your costs using this simple strategy. 2. Flexibility in Organizational Operations Clothing brands that need to stay popular need to work with designers and makers to change their stocks for other relevant stocks. Remaining relevant in the fast-fashion market requires an inconceivable measure of accuracy and adaptability. Dealing with an assorted organization and a network of relevant suppliers can help the business in acquiring the stock that matters and sells. They can rapidly recognize the right creators and suppliers and get the trendy stock from this. This adaptability prompts a more firm result in apparel business. 3. Improved Resource Management By having an improved supply chain, your resource management is also bound to improve. The businesses need more transparency now and a better SCM prompts better results. You can identify the exact areas within the supply chain that require work and allocate resources in those areas for proper management. This also leads to saving resources because with transparency in the supply chain, you will know the potential of resources going to waste. 4. Improved Productivity and Better Logistics Coordinated effort with all levels of suppliers helps clothing brands keep creating products in all conditions in order to meet the customer demands. They're less inclined to come across interruptions connected with supplier delays and other such problems. In case a problem arises, they can turn to their other suppliers and meet their demand. They are also likely to meet raw material shortages better. All in all, their are more likely to be able to adapt to changes. Conclusion Apparel supply chain management is a big deal and many businesses within this industry have the potential of improving their business by simply putting in measures that will optimize their supply chain. In the current items, as the buyer trends are changing and there is a fast-paced demand, having an efficient supply chain is a necessity, and supply chain management companies like AWL India have the perfect technology and resources to help apparel businesses optimize their supply chain like a pro.
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