Amidst the continued supply chain challenges, the fashion industry as a whole has struggled to keep products moving. As in all sectors, not being able to get their product in a reasonable amount of time can make a big difference in profits. Consequently, finding ways to keep products moving and overcome the supply chain challenges is a top concern. There are a few steps the fashion industry can take to help keep the supply chain moving and ensure products are available to their customers.
Manufacture for Consumers
Prior to the supply chain disruptions, the fashion industry, in general, has been focusing on increasing profit margins by decreasing production costs. This has led to a lot of outsourcing of production, making cheaper products, and otherwise trying to cut costs as possible while still meeting consumer demands. This model is unrealistic in light of current challenges. Companies need to shift their mindset to be more consumer-centric to keep products moving. Making products that consumers want, using the most readily available textiles, and other similar steps will allow companies to ensure they are focusing on products that will sell well and consumers might be willing to pay a higher price for.
Move Production Closer
This is a big step and not something that can be done quickly. However, many companies have found success moving their production efforts closer to their business’ home base. While this may increase production costs, it can also drastically reduce shipping costs as the product won’t have to travel nearly as far. One of the prohibitive factors in the supply chain right now is the severe inflation of shipping costs. Paired with delays in ports, companies that have moved their production locations have found that it actually decreases their overall supply chain costs.
Consider Different Shipping Methods
Similar to moving production locations, different shipping methods can be more expensive and won’t work for every company. However, utilizing air freight instead of standard shipping has been faster and more reliable, especially for high-value items. It does come with a high price tag, but since fashion products are generally small, it can be worth the cost to move large amounts of critical products, especially during the holidays when demand for products is high.
The supply chain challenges won’t go away any time soon. However, for the fashion industry, these are some significant steps companies can take to help keep products moving and maybe even reduce production costs at the same time. Additionally, these steps can help set your fashion business up to better sustain issues like these in the future.
Doaa Dashoush is an experienced businesswoman in the fashion industry. She currently serves as the President and CEO of GFASHION, a global luxury brand currently based in New York City. GFASHION prides themselves on their unique approach to the industry. They don’t follow trends set by others. The Luxury brand focuses on innovative design through their work with the top designers on collections that reflect the company’s craftsmanship.