Tailor-made solutions for the fashion industry

The internationality of the fashion industry can be seen on the label of a dress. But the production country, which can be anywhere in the world in today’s global market, reveals only a small portion of the logistics effort that goes into the fast-paced business of fashion. Contract logistics companies that can manage the entire supply chain for companies possess the know-how and develop tailor-made solutions that pay off for customers.

Supply chain management in the fashion industry

Tough competition, differing customer requirements and complex distribution channels repeatedly create new challenges for the supply manager in the fashion business. The retailers’ tight profit margins exert additional pressure on logistics service providers.
Contract logistics companies that want to offer excellent service to their fashion-industry customers must consider all of these factors when they design the supply chain Supply chain . In this work, global logistics service providers offer all links in the supply chain - from the global procurement of material through transport to distribution centers and warehouses in the destination countries to delivery to store shelves.
To run a first-class global supply chain for the fashion industry, speed, flexibility and transparency are needed. Speed is particularly important because product cycles are becoming shorter and shorter. In the past, there were two seasons each year - spring/summer and fall/winter - and each had its own core collection. Today, the customer expects new clothes and designs every time he or she enters a store. This requirement puts the supply chain under tremendous pressure, and the timing of the supply chain assumes a particularly important role. If a retailer misses out on a trend and does not have the product in stock, the customer will look for the product somewhere else and may even alter his or her long-term shopping habits. For this reason, a contract logistics service provider must reduce the delivery times for products in such a way that the lead time for some items is only four to six weeks and that on-demand deliveries can be flexibly provided.
Fashion companies frequently demand further valued-added assistance from their logistics service providers to go along with the core services. For instance, every individual handling step in the supply chain must be closely monitored to stop counterfeit goods. Services like stitching inspections, quality controls as well as ironing and washing services are also offered. For top-quality dresses that must be transported on hangers, special packaging solutions are used. Products that must be transported in vacuum packing in order to reduce transport volume and, thus, costs, must be returned to their original condition through the use of various treatment methods.

Recommended reading

Textil-Beschaffungsmärkte China und Indien im Vergleich | Pfohl / Gomm / Costa 2006

Textil-Beschaffungsmärkte Türkei und China im Vergleich | Pfohl / Gomm / Frank 2005

Supply Chain Management in der Bekleidungsindustrie | Bruckner / Müller 2003

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