CARGOCONNECT-MAY23 - Flipbook - Page 16
COVERSTORY
APPAREL SUPPLY CHAIN
T
he apparel industry
stands out as one of the most globalised
industries in the world and it is a supply
driven commodity chain led by a combination of buyers, suppliers, contractors,
subcontractors, merchandisers, retailers,
service providers, vendors, distributors
each playing an important role in a network
of supply chains that spans from fibers to
yarn, to fabrics, to accessories, to garments,
to trading, and to marketing.
Today, with markets becoming more
global, dynamic, and customer driven, where
customers are demanding more variety, better
quality, and service, including reliability and
faster delivery, it has become mandatory for
the apparel industry to be more participative
and adaptive to ensure growth.
In a competitive, fast-paced industry
like textile and apparel (T&A), supply chain
management can never be more critical
than it is today. It’s the driving force behind
a successful fashion season and a brand’s
GLOBAL APPAREL MARKET
PROACTIVE SUPPLY CHAIN MANAGEMENT INCREASES PRODUCTIVITY AND IMPROVES
ORGANISATIONAL COHESIVENESS GIVING WAY TO BENEFITS SUCH AS:
Operational and
Organisational
Flexibility
Clothing brands that want to
remain trendy need to work
with designers and manufacturers to change their operations
for a new product line. Managing a diverse supplier network
and staying in close contact
with key suppliers across that
network helps companies do
this more effectively. They can
quickly identify the right designers and manufacturing partners
to take on particular projects,
and those team members can
adapt just as quickly. This flexibility leads to a more cohesive
organisation overall.
16 | CARGOCONNECT MAY 2023
Minimised Inventory
Costs
Better Resource
Management
Fashion retailers who work
well with a diverse supplier
network can minimise costs in
many ways. First, they can get
samples and quotes from several
suppliers before committing to
new orders. Next, by effectively
forecasting needs, retailers can
order less safety stock. They
can place new orders based on
current demand, giving them
more confidence that they can
sell the inventory they’re buying.
This strategy lets retailers keep
enough stock to meet customer
demands without overstock
to clear out at the end of the
season.
Transparency, sustainability
and ethical supply chains are
becoming more critical to
consumers. Better SCM leads
to better resource management.
Logistics chain leaders can analyse the raw materials that go
into their products and work
directly with suppliers to adopt
more sustainable practices.
This has tremendous business
impacts since less material goes
to waste, and manufacturers
can reduce their energy and
water consumption.
Increased
Productivity and
Better Logistics
Management
Better communication and
collaboration with all tiers of
suppliers help clothing brands
continue producing goods in
all circumstances. They’re less
likely to face disruptions related
to supplier delays and wider raw
materials shortages. They can
quickly find out about potential
concerns long before they affect
the market. By diversifying their
supplier networks, they can
more easily pivot to different
suppliers amid logistical hiccups.