The Main Problems of Clothing Procurement

Which are the risks that a fashion brand faces when it comes to clothing procurement? In this article we see the main problems and a few solutions to deal with this situation.

If there is one thing in common between all the major fashion brands, it is the complexity of their supply chains and all the risks that may occur.

Risks in clothing procurement in the fashion supply chain

The number of processes a garment undergoes is manifold, from the extraction of the raw material to its end of life.

All in a context of delocalization of production chains, which generates an enormous lack of visibility.

Over the past two years, the apparel procurement industry has witnessed a roller coaster ride. Here you are the most frequent problems in clothing procurement:

• Order fluctuations
• Reduced order volumes
• Deferred payment terms
• Shipping delays
• Political instability in the main production cities.

How to best deal with these situations?

Technology, your evergreen best friend

Anyone who thinks technology does not play a role in the textile and clothing industry today is probably living in an old world.

Factories still using excel fail to drive positive change in the apparel supply chain.

You have to make decisions based on real-time data.

Factories that do not report on supplier performance and process visibility will always be at a disadvantage.

Rely on a platform where you can see your main KPIs and have all the order management and communication with your suppliers in real time.

Transparency Information comes from your supply chain

87% of customers want to support brands that care about a positive impact on the planet and people. They want to know how the product was made and if unethical practices were followed during production and clothing procurement.

On the other hand, fashion brands and retailers are demanding transparency as the complex nature of apparel product manufacturing has led to a lack of trust along the supply chain partners.

Sharing your commitment to promote more honest and more socially responsible supply chains goes a long way in creating trust.

This is why tracing credibility at every stage of the fashion supply chain is becoming a crucial necessity. 

It is something that has always been an urgent need of the fashion industry but has gone unnoticed due to a lack of technology and pressure from the consumer.

The Vietnamese case

The textile industry in Vietnam is adapting to the new demands of international customers related to the traceability of raw materials, as companies are facing many difficulties with the increase in such demand.

Nguyen Thi Tuyet Mai, Deputy Secretary General of the Vietnam Textile and Apparel Association (VITAS), said at a recent conference in August that Vietnamese companies must meet transparency requirements regarding the origin, use of domestic materials, work, and environmental commitments.

The ID Factory solution

Although the management of a fashion supply chain can be complex and clothing procurement risks may occur, it is clear that a supply chain management is a good strategy to fight or, at least, avoid them.

If your company is considering adopting such technology and you have any questions about it, please book a free 30-minute call with us.

We will introduce you to our solution, how our digital product passport works and how it can help you take the next necessary step to solve criticalities you’re facing.