The Future of the Fashion Supply Chain Is Fully Connected

While many fashion retailers and brands had initially expected to digitize their supply chains over a five- to 10-year period, the COVID-19 pandemic accelerated these timelines for many companies to as short as five to 10 weeks. To compete and thrive in the changing marketplace, fashion and brands must fully connect and digitize their supply chain, top to bottom. This means moving away from analog processes, gaining greater visibility across the supply chain and blending offshore, onshore and nearshore manufacturing.

Like the industry behaviors, consumer behaviors and tastes were already changing but accelerated with the pandemic as well. Some of these changes will remain even as the pandemic subsides. Consumers want products that are more customized, personalized, sustainably and ethically produced and delivered rapidly. Previous production and distribution processes cannot meet these demands.

Analog vs. Digital

While “analog” may impress musicians and audiophiles, it isn’t the most efficient and effective way to do business. Outdated supply chain processes simply cannot compete in today’s fast-paced global market.

In place of millions of runs with one style, more customized and unique products require shorter runs, tighter timelines and better quality. The speed and accuracy required in fashion leaves little room for errors or delays. Everyone in the supply chain must always have access to up-to-date information to make faster and better-informed business decisions. This can only be accomplished when all supply chain processes and teams are fully and digitally connected.

Agility in all operations is most needed today—especially in getting goods into the marketplace. Greater agility and visibility are needed to operate faster and more efficiently in meeting changing demands and getting closer to the consumer.

To digitally transform your operations, the right technologies and implementation make all the difference.

Technology = Agility and Visibility

Virtually every company can benefit by smartly implementing more technology. Depending on its current technology maturity level, a company may focus on readily available solutions, such as Enterprise Resource Planning (ERP), Product Lifecycle Management (PLM) or warehouse management. For others, emerging technologies, such as machine learning and artificial intelligence, can enhance real-time decision-making. Regardless of technology, retailers must attack their highest-priority needs first and seek out solutions that are more agile in delivery and open in connectivity to achieve a much faster ROI.

Each of these technologies can help you achieve the agility and visibility required in today’s retail lifecycle:

Enterprise Resource Planning

Solutions like BlueCherry® ERP software are used by leading fashion and footwear brands across the globe to plan, manage, synchronize and optimize supply chain and distribution activities. The powerful capabilities of an enterprise-class ERP will allow you to manage:

• Order-to-Cash Management
• Financial Management
• Credit/Factor Management
• Purchasing and Receiving
• Production/Import Management
• Predictive and Actual Costing
• Robust Reporting

Learn more about ERP and why it’s important.

Product Lifecycle Management

The best PLM tools, such as BlueCherry Next® PLM, can power collaboration, improve speed-to-market and control costs. A highly configurable, no-code PLM solution provides total visibility, control and compliance in your supply chain. Product design, development and sourcing present opportunities for improved lead time and cost reduction. Look for solutions that include:

• Accessibility: Work anywhere, on any device, in any browser
• Configurability: Deployable as SaaS, hybrid and on-premises; no-code configuration; easy onboarding and multi-device compatibility
• Suitability: Suitable for SMEs and scalable for global enterprises
• Omnichannel: Establish a seamless route from PLM to eCommerce, online and brick-and-mortar storefronts
• Integrated: All your systems should talk to one another, sharing data and insights
• Design-ready: 3D and digital product creation, as well as integration with Adobe Creative Suite® for single sign-on and data sharing
• Collaborative: Connect with a community to share best practices and approaches to modernizing your processes

Learn more about PLM and what it can do.

Shop Floor Control (SFC)

A modern SFC solution, like BlueCherry Shop Floor Control Enterprise, can offer unparalleled visibility into your factory floor. The software and smart devices equip production workers with on-demand feedback on individual and team performance. Supervisors and factory managers receive actionable intelligence on:

• Order tracking
• Production line balancing
• Performance monitoring
• Quality control
• Machine maintenance

The best SFC tool can transform your production management to improve productivity, efficiency and product quality, while controlling costs. It also helps you meet sustainability and compliance requirements. Learn more about SFC and how it can drive ROI.

Business Intelligence (BI)

A world-class BI solution like BlueCherry Business Intelligence helps leaders and managers in fashion, apparel and footwear understand the most important issues, trends and opportunities.  An innovative database reporting tool provides concise, aggregate views of performance and business health. BlueCherry BI transforms volumes of data into actionable information. Leaders and managers can review charts, graphs, and summary reports that are easy to understand. Reporting updates are delivered by web browser, email inbox or through text messages. With the right BI, you can:

• Increase inventory turns
• Optimize product allocation
• Establish more effective pricing and promotions
• Improve vendor score-carding

Shores Near and Far

The right technology solutions provide the insight and data needed for agility, but success in a modern supply chain relies on the best sourcing partnerships, as well. The pandemic is driving rapid and significant changes in sourcing strategies to share risk across the supply chain.

To meet today’s consumer demand, companies should form flexible supply chain partnerships to get the most visibility, agility, speed and collaboration out of their operations. A low-cost offshore manufacturing model is no longer enough, especially in hindsight of a global disruption. A better supply chain strategy includes offshore, onshore and nearshore partnerships.

In-store and Online

While elevated eCommerce sales continue, we can expect to see something of a recalibration in consumer behavior. Some shoppers will return to brick-and-mortar stores to satisfy pent-up demand. Newly popular customer service options—such as buy online, pick up in store (BOPIS), curbside delivery, rapid deliveries and shipping-from-store inventory—will continue to be essential aspects of fashion fulfillment.

Regardless of how many sales occur in-store, curbside or online, the most crucial requirement for all fashion companies is to be positioned to sell across multiple platforms seamlessly.

Fashion Past and Future

In an environment where consumer behavior is changing rapidly, many companies require smarter and more advanced planning, inventory and distribution solutions. With retailers experiencing rapid changes in cash positioning, planning based on evaluating historical demand may not be as effective as it was in the past. With less visibility into the future, companies need planning systems to achieve and maintain inventory balance quickly.

For example, a retailer may buy smaller stock levels to preserve cash, but it still needs to be agile enough to scale production and meet demand. So, companies must be smart about holding the right products and levels in warehouses. Retailers also need to have real-time visibility of all inventory, including stock held in their stores, which can be used to fulfill online customer orders quickly and efficiently.

Between shifting consumer behaviors and the logistics behind production and distribution, companies ultimately need the best technology and partners to connect their supply chains from the shop floor to the showroom.

For more on the latest technology and trends around fashion and footwear, get your copy of the 2021 Supply Chain Trends Report today.