Supply Chain Analysis of Fashion Industry

Fashion supply chain outlines the complete method and process of developing fashion designs and styles, production and manufacturing, and distributing the fashion products and accessories to the retailers and the end consumers. Every link, stage, and channel in the supply chain plays a key role in developing and delivering the finished goods to the end consumers. Today, we’ll discuss the supply chain analysis of Fashion Industry; it focuses on various SCM elements like sourcing, procurement planning, production, inventory management, warehousing, automation, transportation, and distribution.

Types of Fashion Industry Supply Chain

• Linear Supply Chain: employs the fixed order of production, sourcing, and designing
• Fast Fashion Supply Chain: short production cycle and quickly responding to the changing market trends
• Lean Supply Chain: focuses on decreasing waste with limited inventory.
• Sustainable Supply Chain: socially responsible and environmentally sustainable production, sourcing, labor management, and other processes
• Luxury Supply Chain: promoting craftsmanship, top quality, and exclusive products
• Agile Supply Chain: quickly responding to the changing customer demands and market trends
• Circular Supply Chain: decreasing waste and promoting recycling and reuse of the products
• Collaborative Supply chain: promoting collaboration and coordination among various stakeholders

Benefits of Supply Chain in Fashion Industry

• Collaboration and open communication among various stakeholders in the supply chain process
• Decreases waste and limited consumption of resources in the sustainable supply chain
• Helping fashion brands to stay relevant
• Fashion supply chain is operating its business in the global market
• Optimized production and manufacturing processes to achieve efficiency

Supply Chain Analysis of Fashion Industry

Let’s discuss the main elements of the supply chain analysis of Fashion Industry as follows;

Designing

Design is the very first stage in the fashion supply chain process and it comprises of drawing unique, innovative, and creative fashion designs and styles on paper. Every fashion brand has a team of creative fashion designers, and they employ multiple strategies and approaches for the development of new designs and styles. In fact, the creative designing process of every fashion designer is different.

Sourcing

The sourcing stage of fashion brand focuses on procuring raw supplies, materials, parts, and components like zippers, buttons, trims, fabric, production tools, parts, and equipment. The sourcing stage also comprised of developing relationship with multiple suppliers to ensure the smooth availability of raw supplies and material for production without any delays and disruption.

Production and Manufacturing

The production and manufacturing process in the Fashion Industry comprises cutting, sewing, and finishing the apparel and clothes. Asian countries have been manufacturing clothes and garments of the world’s leading brands for the past 30 years.

However, the dark side of fashion production factories in developing countries is employing forced child labor due to limited control and no regulatory compliance. According to an estimate, approximately 21 million people are doing forced labor in the clothing and garment industry; out of which, 11.4 million people are women and girls.

Warehousing

Warehousing and inventory management of fashion products is highly time-sensitive. They receive finished goods, temporarily store them, and then move the finished fashion products to retail stores relevant to the customer market demands. In order to keep up with the growing market trends, fashion brands employ a fast fashion strategic approach to quickly respond to the latest and trending fashion designs and styles.

Logistics and Distribution

Businesses and companies employ multiple transportation and 3rd party logistics service providers for the transportation and distribution of products and goods to the retailers and the end consumers. The drawback of worldwide transportation and distribution channels is that they cause significant air and water pollution and increase the carbon emission rate. However, the world’s leading fashion brands are employing sustainable transportation methods to decrease the negative environmental impact.

Since most of the production and manufacturing operations are in Asian countries. It doesn’t matter what type of products and goods you are developing, you would have to transport and deliver it from the other side of the world.

Retailing

Retail stores are at the bottom of the supply chain network, where the end consumers buy the finished products and goods. Some fashion brands have developed their e-commerce platforms along with retail chain stores. Customers could check the latest fashion designs online and they would deliver the finished goods to the doorsteps of customers.

From the environmental sustainability point of view, the rate of recycling in the clothing and garments industry is very low. Despite this fact, most of the products and reusable and recyclable.

Conclusion: Fashion Industry Supply Chain Analysis | Fashion Industry Supply Chain Management

After an in-depth study of the supply chain analysis of fashion industry; we have realized that fashion industry is the world’s top-growing business. If you are learning about the Fashion Industry supply chain analysis; then you should keep in mind the abovementioned SCM elements; procurement, planning, transportation, automation, inventory management, and sortation.