Fashion Supply Chain: Why it Matters and How to Optimize

In this blog, we'll delve into the intricacies of the fashion supply chain and explore how Viindoo SCM can help businesses build a sustainable, efficient, and profitable supply chain.

The Fashion Supply Chain Unveiled: A Look Behind the Scenes

According to Intrado, the fast fashion industry generated $31.4 billion in revenue globally in 2020, a slight decrease from the $35.6 billion in 2019. The main reason for this decline was the COVID-19 pandemic and subsequent economic shutdowns across the world. Despite this, millions of people continue to buy clothing online every day without considering the environmental and ethical impacts. The supply chain in fashion industry encompasses all stages of commercial item production and distribution, from material supply to product manufacturing.

fashion supply chain unveiled

The Supply Chain in Fashion Industry Unveiled: A Look Behind the Scenes

What is the The Fashion Supply Chain

The production of fashion involves a multi-stage supply chain starting with the cultivation of natural resources and raw materials to create fibers, which are then woven or knitted into fabric, dyed, cut, and fashioned into garments. These garments are then sold in retail stores for consumers to purchase. However, the fashion industry is labor-intensive and uses significant amounts of water, chemicals, and oil, making it one of the most polluting industries, as reported by Business Insider. It is surprising to learn that clothing production contributes significantly to our carbon footprint, with the World Wildlife Fund estimating that a single cotton t-shirt can require up to 2,700 liters of water to produce. Additionally, based on a CNBC report, the fashion industry is the second-largest consumer of water.

What is fashion supply chain

What is The Fashion Supply Chain?

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Why we must pay attention to the Fashion Supply Chain

The success of a fashion business relies heavily on its supply chain. Fast fashion, for example, involves the rapid production of trendy and inexpensive clothing for the mass market. These brands frequently take designs from the runway and release new collections every few weeks, while luxury brands typically release new collections each season. However, the widespread popularity of fast fashion has resulted in numerous issues for the fashion industry.

One of the issues associated with fast fashion is the use of synthetic fibers and polyester in the production of cheap garments. These materials are not biodegradable and are harmful to the environment. The short lifespan of these clothes often leads to them being discarded, ultimately ending up in landfills and polluting the planet.

Another significant problem in fast fashion supply chains is the exploitation of labor. Garment workers are often overworked, underpaid, and subjected to terrible working conditions. This includes the use of slavery, prison labor, and child labor, which raises concerns about the safety and well-being of workers in developing countries. These issues also raise questions about the integrity and ethics of purchasing from popular fashion brands.

fashion supply chain

Why Fashion businesses must pay attention to the  Supply Chain

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The Ramifications of an Inefficient Fashion Supply Chain

Garment workers worldwide are a crucial component of the supply chain in fashion, manufacturing items ranging from luxury handbags to low-cost t-shirts and accessories. The environmental and ethical costs associated with producing these items are in high demand, and many well-known brands like ASOS, Nike, and Disney have faced criticism for allegedly using sweatshops to make their products. This has prompted ethical concerns among these brands and calls for change from their consumers.

Fast fashion is particularly popular among many in the Gen Z demographic. One of the most popular fast fashion brands, Shein, sells a wide range of low-cost clothing, accessories, and home decor items and has gained immense popularity on the social media platform TikTok through "haul" videos featuring purchases from the website. Shein is one of the largest fast-fashion brands based in China and recently surpassed Amazon in app downloads in the United States, according to Tech Times. The company keeps prices low by producing all of its clothing in overseas factories.

fashion supply chain

The Ramifications of an Inefficient Supply Chain

Fashion Supply Chain Software

The fashion industry's supply chain management can be an overwhelming task due to the many processes involved, from sourcing materials to delivering products to the end-users. However, software solutions like Viindoo SCM can simplify the process and optimize the entire supply chain.

Viindoo SCM is top supply chain management software that helps businesses manage their supply chain more efficiently. The software provides a standardized process and automated rules to connect every aspect of the supply chain, from purchasing and manufacturing to inventory and sales management.

One of the main benefits of using Viindoo SCM is that it helps businesses build an optimal and efficient supply chain by collecting and analyzing customer data to design an overall strategy that meets their customers' needs. It also enables businesses to build a network of suppliers and evaluate their supply capacity to select those with competitive prices, ensuring an uninterrupted supply chain.

Viindoo SCM offers an all-inclusive solution for supply chain management and integration, enabling businesses to standardize their supply chain operations with automated rules and optimize operations to improve efficiency across the supply chain. Additionally, it provides an open system that integrates and manages every app in one platform, helping businesses coordinate operations across departments and enhance logistics control and collaboration efficiency.

Using Viindoo SCM can also have a significant impact on businesses' bottom line by reducing operating costs across the supply chain, minimizing risks, and responding quickly to changes in the market and consumer needs. Ultimately, Viindoo SCM can improve customer service and increase business competitiveness in the fashion industry.

fashion supply chain

Viindoo supply chain management software

In conclusion, the fashion supply chain is a complex and multi-stage process that has significant environmental and ethical impacts. It is crucial that consumers pay attention to the clothing they buy and the supply chain behind it, as well as for businesses to prioritize sustainability.

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Fashion Supply Chain: Why it Matters and How to Optimize
Viindoo Technology Joint Stock Company, Monica Nguyen April 21, 2023