Threads that bind: Transforming the fashion supply chain through digitalisation and transparency

Trends in the fashion supply chain

Fashion companies have long taken a consumer-centric approach when it comes to marketing and product, and rightly so. However, it is also important to pay attention to the ever-changing demand shifts of consumers, which in turn, create a ripple through fashion and retail supply chains. These trends in consumer demand can include geographical shifts, the need for diverse sales channels, and the change in consumers' spending behaviour.

The second trend we see is the growth in multi-sourcing. Over the years, brands have been shifting out of conventional sources like China. Brands are now utilising support from a broader range of countries such as Vietnam, Bangladesh, and Cambodia for the eastern side of the globe. Meanwhile, Turkey and Morocco are growing as sourcing locations for Europe. Other significant trends include prioritising sustainability and adjusting to the effects of COVID-19.

Challenges in the fashion supply chains

Research done by The Economist’s Intelligence Unit and Maersk, indicates that the three biggest challenges that fashion supply chains face are fluctuations in customer demands, lack of flexibility, and customer expectations. To this there are measures that an organisation can take to mitigate the impact, such as improving the operations and business focus and utilising technology for change.

In a recent agenda poll by Gartner, technological enablement was on the top of many business leaders’ minds. However, relying on technology alone to gain visibility is not the solution. One must make sense of the data to gain actionable insights and to make more informed decisions. However, thanks to the rapid advancement of technology, companies no longer struggle to create monthly forecasts. They can now produce more accurate data daily.

With the pace at which technology progresses, logistics practitioners should also start equipping themselves with a new set of skills like data science and engineering as we can expect traditional roles to be automated.

Companies need to adopt a more holistic approach driven from the top that combines strategy, execution, and the genuine desire to collaborate with other functions in the supply chain. Logistic technology is not the be-all and end-all solution for visibility and transparency. Adopting logistics technology as an enabler, along with business integration, is what brings fundamental transformation power through.