Transparency and Traceability:
With the demand for sustainable fashion supply chains, transparency & visibility across the whole supply chain has become incredibly valuable. Everyone, from vendors, factories, to auditors, and end consumers, is beginning to look beyond the outfits on a mannequin. The focus on transparency is becoming the cornerstone of the real commitment towards strategic collaborations. Although establishing visibility across the supply chain in the fashion industry will not be without difficulty, it has become essential to form strategic partnerships with the vendors already investing in digitized solutions.
Given the post-pandemic disruptions, retail, apparel, and fashion businesses faced many operational challenges and a significant shift in consumer demands. According to a study, “The State of Fashion”, conducted by the Business of Fashion (BoF) and McKinsey in December 2021, supply chain, inventory management, and logistics were the most pressing challenges, as stated by 30% of the participants, with 14% mentioning sustainability and 10% referring to COVID-19 recovery as their major concern. This analysis of the industry’s vulnerabilities and fashion supply chains clears the notion that digitization is the key to business success.
Sustainable fashion supply chains are a source of concern for businesses and consumers. Many fashion companies are revamping their supply chain management, making difficult ROI decisions, and experimenting with omnichannel offerings. This is where digital technology comes into play.
Not only is digitization becoming an important component of distribution channels, but it also has the potential to help firms adapt cost structures while making the fashion industry's value chains more transparent, speedier, and traceable.
By 2025, 68% of respondents plan to grow their suppliers using digitized solutions.
Source: McKinsey Apparel CPO Survey 2021
At a time when customers' interest in transparency (from production to retail floor) is at an all-time high, digital solutions help boost process transparency at every step of the fast-fashion supply chain. Designers leverage the advanced AI /ML technologies to remotely strategize and share ideas, making cooperation easier and more efficient.
Suppliers and manufacturers benefit from real-time data integration to make flexible and intelligent inventory decisions. It helps them decrease bottlenecks, minimize waste, and free up time for other critical sourcing tasks. Furthermore, retailers can utilize the latest data and experience fewer returns, which in turn helps them provide customers with faster and more precise delivery.
By 2025, 55% of respondents will invest in supply chain transparency and traceability solutions as key investment areas for digitizing their sourcing process and order management.
By identifying process inefficiencies, fashion companies can proactively improve supply chain processes and boost productivity. Transparency in fashion supply chain management also helps businesses win the trust of the customers who are keen to know how their clothes are being made and if sustainable measures are taken while making them. Joseph Phi, Group Chief Executive of Li & Fung, in a report by BoF and McKinsey, adds more to this, stating,
“It’s going to be game-changing because inventory [waste] is the biggest cost to the brand owners and retailers as well as [one of the] biggest negative impacts on the environment.”
Businesses must search for solutions that employ intelligent EDI processing and revolutionary field-mapping technology to solve the rising difficulties, enabling smooth communication across all key channels. This will necessitate a comprehensive overhaul of their technological and operational infrastructure and exploring a vertical solution, meticulously designed for fashion supply chain management. To meet all these disruptive sourcing requirements, HauteLogic developed an end-to-end cloud solution that will help fashion companies reconstruct the new paradigm of fashion supply chains by leveraging the following four essential dimensions:
HauteLogic empowers your fashion brand with complete transparency over your supply chain through:
Our resilient digital sourcing solution acts as a fundamental enabler of transparency, control, and integrity across your fashion supply chain by leveraging the following features:
We enable seamless digital growth for fashion companies and allow them to unify operations, channels, customers, and partner ecosystems by leveraging the following features:
Our omnichannel solution optimizes your fashion supply chain management with real-time data analytics via the following capabilities:
Investment in resilient supply chain solutions, consumer insights, and a sustainable environment is incomplete without investments in strategic cross-tier relationships. HauteLogic understands this challenging notion. With our end-to-end cloud and ML technology, we commit to ensuring greater transparency throughout the supply chain management clothing industry and help build trust across all channels. Get in touch with one of our experts to learn how to achieve digitization and transparency across your supply chain.