Fashion has always been a complex and fascinating intersection between culture, necessity, technology, and human expression. From the days of simple animal garments to feudal artisan guilds, to the invention of the Spinning Jenny in 1764, Haute Couture, the advent of the Industrial Revolution and the dawn of the internet, the fashion industry has always been evolving.
To keep up with the times, a well-managed supply chain continues to be crucial for fashion brands to thrive. But what does that entail?
What is the supply chain in the fashion industry?
One could argue that the fashion industry supply chain is the modern fashion industry, in the sense that the supply chain and fashion itself have grown and intertwined so much over hundreds of years that they are inseparable. There is the concept of fashion – clothing, style, cultural expression – and there is the machinations, logistics, and movement of the fashion industry, i.e., the supply chain. In a nutshell; it is the chain that runs from ideation and design to raw material sourcing, to manufacturing, distribution, marketing, selling the product, and delivery. It’s a complex system of designers, manufacturers, suppliers, retailers, distributors and even customers themselves. The supply chain is an inevitable by-product of something that produces and delivers goods en masse, but without a robust and interconnected supply chain, the modern, global fashion industry would not exist in its present form.
Why Fashion Businesses Need a Well-Managed Supply Chain
The modern fashion supply chain is more than simply getting garments and products from point A to point B (although that certainly has its own complications as well). It is a crucial pillar in the industry, and is essential in glueing together many aspects of the modern fashion industry – let’s cover some of them now.
Cost Optimisation: Reducing waste and streamlining processes lowers inventory costs and thereby enhances profits for UK brands. When a supply chain is well-managed and efficient, it can lower production costs, free up investing in other areas, or offer more competitive prices.
Rapid Trend Response:Another hallmark of the fashion industry is keeping up with ever-changing UK consumer preferences. Fashion companies and their supply chains need to be agile so that they can continue to adapt, manage stocks, and keep their finger on the pulse.
Quality Assurance: A brand’s reputation rests on consistent product quality. This means regular and robust quality checks at several points of the supply chain ensure that products meet UK safety standards, consumer expectations, and brand longevity
Ethical Transparency: Consumers don’t just want brands to claim transparency and sustainability, they need to see it. When a supply chain is transparent it shows people their commitment to ethical sourcing, manufacturing, and labour practices.
Risk Mitigation: Natural disasters, political upheaval, pandemics, and climate change can and do all cause disruptions in something as interconnected as a global supply chain. When the supply chain is diversified and has contingency plans, there is a lower risk of unsettling the entire process.
Inventory Efficiency:Managing stock levels efficiently prevents over or understocking. Products need to be available when UK consumers want them, and it also reduces waste and maximises potential sales.
Integrated Collaboration:With data coming from everywhere in today’s digital age, sharing of data among supply chain partners is crucial. A robust supply chain makes sure there is better coordination, smooth operations, and more accurate decision-making. Better information means better service.
What Are The Different Types of Fashion Supply Chains?
Within the fashion industry supply chain at large there are several distinct models that each cater to different needs and market segments. Some brands focus on one niche, while others have elements of all of them.
Fast Fashion Supply Chain:Owing to modern trends, fast fashion focuses on speed, lower prices, and responsiveness. It usually utilises offshore manufacturing and complex global sourcing networks to keep up with changes.
Luxury Fashion Supply Chain:A big drawcard for many is the exclusivity, craftsmanship, and high-quality materials of established luxury brands. It uses meticulous quality control with longer lead times and smaller production runs.
Sustainable and Ethical Fashion Supply Chain:A modern change in the supply chains in answer to climate change and needed sustainability. It is built around eco-friendly materials, fair labour practices, and transparent sourcing throughout the entire chain.
Vertically Integrated Supply Chain:This means a company owns and controls many more aspects of the supply chain itself, with the idea that they have more control over elements like quality, sourcing, and costs.
Outsourced Supply Chain: A more ‘traditional” avenue, this supply chain makes use of third-party suppliers, manufacturers and sometimes even designers. It relies more on relationship management and quality control.
Omni-channel Supply Chain: This involves complex inventory management, combining online and offline sales channels across platforms.
Made-to-Order Supply Chain: Usually smaller in scale and means production starts only after receiving a customer order – mostly bespoke and unique items.
What Are The Key Stages In The Fashion Supply Chain?
There are distinct stages to the supply chain, each needing to run effectively from one to the next in order for the whole supply chain to work together.
1. Design and Product Development:It starts with an idea. Designers create concepts, technical drawings, and prototypes. This stage involves brainstorming, sketching, and planning the details of the garment, including fabric choices, colours, and styles. The design process also includes creating digital or physical samples to perfect the product before it moves to production.
2. Raw Material Sourcing:To make the designs, materials like fabrics, trims, and accessories are sourced from suppliers globally or locally. This stage requires finding reliable suppliers who can provide high-quality materials. Brands may source organic or sustainable materials to meet consumer demand for eco-friendly products. Negotiations on price, quantity, and delivery timelines are also crucial parts of this stage.
3. Manufacturing:This is when the garments and items are cut, sewn, assembled, produced, and finally packaged as products. Manufacturing can take place in factories locally or overseas. Quality control is critical here to ensure the finished products meet the brand’s standards. This stage also involves coordinating with multiple teams to ensure production schedules are met and addressing any issues that arise during the process.
4. Distribution and Logistics:The finished products are then transported to warehouses or storage facilities and then to either where they are sold or directly to customers. Effective logistics management ensures that products are delivered on time and in good condition. This stage involves selecting the best transportation methods, managing inventory levels, and handling any customs or regulatory requirements for international shipments.
5. Retail and Sales:Whether in a physical brick-and-mortar shop or via online platforms, goods are marketed, displayed, and sold. This stage focuses on creating an appealing shopping experience for customers, both in-store and online. It includes activities such as merchandising, setting up attractive displays, marketing campaigns, and customer service. Sales data is also analysed to understand consumer preferences and adjust inventory accordingly.
6. End-of-Life:Until recently, an oft-missed but crucial element of modern supply chains is the eventual responsible disposal or potential recycling and up-cycling of the products. Brands are increasingly adopting sustainable practices to address this stage. This includes offering recycling programs, designing products for easier recycling, and promoting second-hand markets. Proper end-of-life management helps reduce environmental impact and meets consumer demand for sustainability.
What Are Current Issues for the Fashion Supply Chain in the Modern Age?
As with many aspects of our lives and economics, the modern era poses unique challenges for the fashion industry and its supply chains. While age-old issues like material shortages and logistics are ever-present, they are now intertwined with new technology and a new world.
Sustainability and Ethical Sourcing
One of the more prominent and pertinent issues is balancing customer needs, the realities of climate change, ethical business practices, and sustainability and longevity. Environmental impact and growing consumer awareness mean modern supply chains need an overhaul of sorts. Every step of the current supply chain needs to pivot towards more sustainable materials, relationships with trusted suppliers, ethical production, and transparency in their methods.
Digital Transformation and Technology Integration
As with the many changes that the fashion industry has undergone since we began making clothes at scale, at the centre of change are technological advancements. Technology has driven many aspects of the industry, from how things are made to what customers want. Today we have blockchain, cryptocurrency, data analytics, social media, e-commerce, and AI all influencing digital transformation and integration. Keeping up to date with changes and successfully integrating them into existing systems is an ongoing and inevitable challenge.
Agility and Responsiveness
With faster technological changes, trends, and cultural shifts, fashion companies need to be able to adapt rapidly. From marketing to manufacturing, inventory management, and collaborative networks, agility, and responsiveness is key. If one of these aspects is neglected, brands could be left in the dust or face irrelevance.
Omnichannel Distribution and Reverse Logistics
Since we have been able to buy things online, industries have had to employ online and offline channels to integrate sales, last-mile delivery, and streamlined returns processes to meet customer expectations. Logistics need to be considered in multiple directions and at multiple stages of the supply chain.
Circular Economy and Closed-Loop Supply Chain
The complexity of the supply chain, the textile recycling process, and consumer demands make a shift towards a circular economy and a closed-loop supply chain (one that doesn’t end in clothes in a landfill) a tricky one in modern times. However, change is happening, and more brands are embracing the recycling of garments either in repairing and reselling or in second-hand markets. For a circular economy and closed-loop supply chain to work brands need to design clothes and items with longevity in mind, reduce waste throughout the lifecycle, and implement new technologies and processes.
Risk Management and Resilience
The Covid-19 pandemic and its consequences showed how unpredictable world markets, infrastructures, and economies can be. Globalisation also feeds into the domino effect of supply chain disruption. This means that diverse sourcing, contingency plans, and adaptable strategies are needed to mitigate risks and ensure companies are resilient against upsets.
Collaboration and Partnerships
As industries, technologies, and trends change, so does the need for strategic collaborations with suppliers, manufacturers, and technology providers. Fashion companies need to not only maintain existing relationships and build on old ones but potentially also form new ones. For example, if a company wishes to stop using Polyfluorinated substances (PFAS) – which are toxic to humans and the environment – they need to find a supplier that offers an alternative and then integrate them into the supply chain.
Conclusion
As you can see, and have most likely experienced personally when purchasing new or recycled clothing, the fashion industry and its supply chains are complicated and ever-evolving. It is perhaps a testament to our human ingenuity, adaptability, and need for novelty that something like the fashion industry has existed and flourished for as long and with as much influence as it has. Modern problems require both modern and traditional solutions. The fashion industry supply chain is a great example of the marriage of old and new, and how human collaboration, technology, cultural forces, creativity, and resilience come together to weave a well-fitted web.
If you own or are thinking of starting a fashion business but are overwhelmed by the complexities, we at Zedonk are here to help. Our fashion ERP solutions are trusted by thousands of brands and showrooms across 45 countries, so we know a thing or two about staying connected – get in touch with us today!