Strategies for Minimizing Overstock in the Fashion Supply Chain
September 12, 2023
Tens of millions of workers are employed everyday in the labor-intensive fashion business. The tracking and location of each stage of the materials or apparel in the clothing production process is referred to as the supply chain management procedure. The first step in the procedure is to purchase the fabric from the manufacturers that prepare the fabric for clothing. The next step is the distribution procedure, which entails giving the goods to the customers. It takes a lot of time.
Breaking down the supply chain process in the fashion Industry
Designing
- The design phase of the garment manufacturing process is when the trimmings, fabrics, silhouettes, and finishes are decided upon.
- If we take a global view, we will notice that several patterns are shifting swiftly.
- The garment business has developed into a fast-fashion sector that produces several product lines.
- Many companies are attempting to change the course of things, moving away from the fast-fashion rhythm and more likely to take a long-term, sustainable strategy.
- Additionally, a handful of manufacturers adhere to the cradle-to-cradle design framework, which must suit one of two cycles.
Production of Materials
- The creation process, which is part of the manufacturing phase, entails gathering the raw material, processing it into the fiber, and then transferring the fabric to the subsequent stages of dyeing, washing, screen printing, and finishing.
- Due to the harmful gas emissions that pollute both the fresh air and water, the textile production phase is a key contributor to and the cause of environmental pollution.
- The fact that various chemicals transform clothing into textiles is one of the major problems of the clothing business.
- The discharge of these substances into the water contaminates and harms aquatic life. Additionally, this water is utilized in agriculture and for irrigation.
Production of Clothes
- This is the first stage in the production of fabric. The garment is cut, stitched, and finished using the fabric created in the preceding phase. The manufacture of clothing has moved to Asia during the past 30 years.
Production of Clothes
- After being produced, the clothing is shipped to the retailers, where they are then shipped on to the customers, or the consumers purchase the clothing directly from the merchants.
- As these garments are carried to the merchants and wholesalers, which results in the production of carbon emissions, this phase also has a negative effect.
- This sort of air pollution has the drawback of being inevitable. Only well-known brands and large apparel corporations can make a difference by taking action to lessen this impact.
Consumer Reach out
- The target market where the final product is intended to be delivered is the consumer base.
- At the consumer level, supply chain management compromises and encounters several difficulties.
- Here, a successful supply chain management strategy is useful along with fallback plans to make up for losses.
How to manage the supply chain
Customer-Driven Production
The pull method involves anticipating rising customer demand before acting on it. In this case, the producers will only produce the goods if they anticipate customer demand.
Another way to put it is that end users and customers go to retailers and place orders, and merchants either source the orders or manage the supply chain. It’s an excellent practice that aids in managing the inventory and lowers the likelihood of overstocking.
Push Supply Chain Forecasting
Forecasting the market and subsequently making forecasts in the supply chain is the method utilized in push supply chain management. By researching forthcoming trends, the designers or producers create the clothes items and designs.
For instance, swimwear makers start marketing their brand, demand items, and push them into the market and retail outlets when customers are more inclined to buy summer clothing. Similar to how warm clothing appears on the rack when the cold weather arrives.
Hybrid SCM: Balancing Push and Pull
Hybrid supply chain management refers to the fusion of push and pull strategies. With the use of this technique, businesses and brands may reduce their inventory expenses as well as unforeseen client demand.
For textile businesses, hybrid supply chain management helps them produce the newest styles and apparel goods. While the demands and requirements of the new items draw all of these materials into the garment production phase, the supply chain initially operates as a push mechanism.
How fashion brands can cut down overstock risks
A startling 30 to 40% of all clothing is produced too quickly in any one season. The imperfect alignment of supply and demand is a significant weakness in the conventional fashion system. It’s long past time for the $2.5 trillion fashion business to reconsider how it manufactures and stores its goods. The conventional fashion system is not only environmentally destructive but also financially wasteful.
Products might take up to a year to develop and sell due to their drawn-out and ineffective design and production procedures. The great majority of well-known companies produce their goods in underdeveloped nations. The minimum order quantity for each style is tens of thousands, and the manufacturers normally take several months to provide the clothing.
1. Discount Dominance in Clothing Sales
Today, discounts are used in the sale of 75% of all clothes. At some established merchants, discount stores are now more prevalent than full-priced ones. Unfortunately, the thrill of finding a great deal does not ensure that everything is sold.
One of the main benefits of switching to a new manufacturing model is avoiding the manufacture of goods that you’d have to virtually pay clients to accept.
2. Global Deadstock Resale: A Solution Needed
For instance, deadstock from European companies is frequently rebranded and sold to Australia. While this is fantastic for Australians, it still doesn’t address the issue of how to prevent selling more than 70% of your goods at deeply discounted rates.
3. Challenges of Donated Unsold Apparel
While on paper this would sound like a good idea, the local businesses and people of low-income nations may suffer if unsold apparel is donated and discarded there.
In addition, demand for these organizations is declining, in part due to the poor quality of donated goods from fast-fashion merchants.
Conclusion
Tens of millions of workers are employed everyday in the labor-intensive fashion business. Many companies are attempting to change the course of things, moving away from the fast-fashion rhythm and more likely to take a long-term, sustainable strategy. Few sectors make a stronger case for their commitment to sustainability than the fashion sector.
While yoga mats made from mushrooms and sneakers manufactured from sugar cane are commonplace on shop shelves, products ranging from swimmers to wedding gowns are advertised as carbon positive, organic, or vegan. Recycling, resale, leasing, reuse, and repair are a few new business concepts that are marketed as saving the environment.
Products might take up to a year to develop and sell due to their drawn-out and ineffective design and production procedures. The great majority of well-known companies produce their goods in underdeveloped nations. For instance, deadstock from European companies is frequently rebranded and sold to Australia.
