Introduction

Did you know? According to IBIS world, the global apparel manufacturing marketed size is estimated to be $886.8 billion and is expected to increase by 2.9% in 2023.

In today’s competitive era, markets are becoming increasingly dynamic and customer-driven. Apparel Industry is one such market which is growing at a fast pace. With increasing customer demand for higher quality, more varieties and faster delivery, the need for efficient and transparent supply chain has become a crucial and decisive aspect in Apparel industry.

Defining Supply Chain

In simple terms, Supply Chain can be defined as the network of all organizations, individuals, partners, resources, activities and technologies involved in the creation and distribution of products.

With a large pool of players involved in the apparel industry, it is quite important as a business owner to lay priority towards supply chain management to gain productivity and efficiency.

Supply Chain Management in Apparel Industry

The supply chain of the apparel industry spans from raw fibers to textiles, textiles to fabrics, accessories elements to garments and merchandising to marketing.

Thus, we can define apparel supply chain management as the ” process of mapping and carefully tracing steps of apparel manufacturing process, right from sourcing new material to production facilities where the fabrics are converted into garments, and distribution network through which the finished clothes are delivered to the retailers and wholesalers.”

Curious about What are the stages of Apparel Supply Chain?

Stages of Apparel Supply Chain

1. Designing

It is the first phase of the apparel supply chain where details of fabrics, trims, silhouettes and finishes are established. Designers are often the key players who are responsible for creating their own iteration of the latest trend or the ones that they prefer to replicate.

2. Textile Manufacturing

The production of textiles comprises of complex process of sourcing various raw textile materials, spinning into fiber, weaving fiber into fabrics and dyeing those fabrics. Fabrics are the finished product of the textile industry which are then ready to be converted into apparels.

3. Apparel Manufacturing

The Apparel manufacturing phase involves the cutting, sewing, and finishing of a garment. Following the blueprints and designer’s instructions, garment manufacturers cut the fabrics and stitch it into wearable pieces.

4. Distribution

After the clothes are manufactured, they are transported to various wholesalers, retailers or individual customers in the local market or overseas. With customers increasing demand for fast shipping, shipping and logistics has become a competitive aspect in Apparel Industry.

5. End-User Purchase

Buyers purchase the item at the end of the supply chain. They may purchase it from a physical store or choose to shop online. Alternatively, buyers may also prefer” buy online, pick up in store” (BOPUS) option. For online retailers, logistics and transportation management becomes crucial while emphasizing good sales floor and store management becomes crucial for physical stores.

Now let’s take a look at three Strategies that Apparel brands can take to manage the Supply chain. Depending upon nature of the demand and supply, there are 3 strategies apparel supply chain strategies. Lets take a look at each of them.

Push Supply Chain Strategy

In Push Supply chain strategy, market forecasting and predictions are used to drive the supply chain. The apparel pieces are created by producers and designers in anticipation of future demand. The products are then subsequently “pushed” to end consumer retailers or wholesalers.

For instance, summer clothing first appears on store shelves near the end of the cold season, anticipating greater demand as the weather warms. Similarly, white t-shirts are seen in the market with the arrival of Holi festival in Nepal, anticipating sales.

Pull Supply Chain Strategy

Rather than forecasting demand, the pull strategy waits for the demand to rise. Manufacturers only engage in new product development when they are confident that consumers will buy them. This lowers the risk of inventory becoming overstocked and risk of not being able to fulfill sudden surge in demand.

Hybrid Supply Chain strategy

The hybrid Supply chain or Push/Pull Strategy allows the apparel business to combine both supply chain tactics. This allows businesses to save money on inventory while also reducing the risk of fluctuating demand. This is a quite prevalent in fashion and clothing sectors.

The supply chain begins with Push strategy, with textile makers consistently creating various types of fabrics in anticipation of new clothing designs. Then the demand for new fashion items drive these materials into the manufacturing units.

Supply Chain Issues and Solution Apparel Industry

Demand Volatility

Let’s say you buy a substantial inventory of the latest fashion fad, but by the end of the week, an influencer has slammed it and the world has moved on. You’re left having to pay for inventory that you’ll almost inevitably have to sell at a reduced price.

Solution:

Ask yourself!! Can your supply chain strategy react to the volatile demand? One way of dealing with such issues is to implement hybrid supply chain strategy. It enables you to produce inventory cost as well as minimize the risk of fluctuating demand.

The Popularity of Fast Fashion

There are examples of various brands which have been embracing slow fashion. However for many apparel manufacturers, fast fashion is reality they cannot ignore as it is aligns with general consumer behavior and is crucial for survival in the long run.  However, this has placed a tremendous pressure supply chain across the apparel industry.

Solution

Opting for a hybrid supply chain by reducing lagging product lines can be a great strategy to adapt competitively to fast fashion.

It provides time and enough resources to capitalize the trend in the market and reduce susceptibility to fast moving product life cycle.  According to various research product life cycle is 10-12 week in fashion life cycle and 20-24 weeks in seasonal lifecycle.

Lack of Transparency

Lack of transparency in the supply chain is a critical supply chain risk that many businesses face. It can be extremely difficult for businesses to track the development of their products and connect with suppliers throughout the manufacturing process, particularly when the production is outsourced.

Solution

Digitalization can prove to be a game changer in terms of efficient overseeing of business operations. Opting for an inventory and  Supply chain management system can be quite beneficial for apparel business.

Companies that invest in digitalization can significantly reduce the effort of supply issues and be informed of all ongoing actions. It promotes transparency, reduces stress, encourages apparel companies to manage less and create more.