The Next Big Frontiers in Fashion Supply Chain: How New Production Models are Changing the Game

The Next Big Frontiers in Fashion Supply Chain: How New Production Models are Changing the Game

The shift to newer methods like circular and on-demand will be a good thing for not just making the whole industry more sustainable but also increasing overall quality and customer service. A conscious consumer is always looking for eco-friendly brands, so companies have to make significant changes to their production processes.

Did you consider that 8-10% of carbon dioxide emissions are caused by the fashion sector on its own? This is more than the international flights and the marine shipping industry together. It is worth $1.5 trillion, and it is projected to reach $2 trillion by 2026. But, despite its size, the fashion industry faces many significant issues that require urgent attention. Fashion has been based on traditional production models for a long time.

Conventional production hubs like India, Bangladesh, and Vietnam have been well-known for their production methods built on cheap labor, the ability to access raw materials as well as low-cost manufacturing. Furthermore, several nations have free accession agreements with different countries. This permits them to export their products at a lower price. However, these conventional production methods can cause ethical and sustainability issues. In the midst of constantly evolving fast fashion, the depressing realities of sweatshops can’t be left unnoticed. Because of the bleak working conditions being exposed and the rise of conscious consumption, we are witnessing the rising popularity of conscious consumption. This means that these countries are under increasing pressure to fix these problems.

The current challenges facing the Fashion industry

 

A lot of traditional production methods aren’t suited to the constantly changing global standards and demands of consumers. Some of the challenges they have to overcome include:

The lack of sustainability The Fashion industry uses 93 billion cubic meters of water annually, which is sufficient to meet the needs of 5 million people. This adds to the water shortage in certain regions. Additionally, 85 percent of all textiles are recycled every year. In addition, there is a huge quantity of microplastics released into the ocean, and you’ll be able to see how the industry is a huge environmental threat.

The absence of actual-time production information Traditional clothing factories rely on previous performance and guesswork to predict production output because of the lack of big data and business analytics. Therefore, owners of factories must take a reactive approach to demand from consumers, leading to a mismanagement of inventory.

Zero accountability for workers The reason for this is that in (sometimes dim) manufacturing lines, one item is passed through multiple hands and leads to no liability for the suboptimal result. Quality of production is often severely compromised when this happens because mistakes are not traceable to one worker. Therefore, the efficiency of production can be slowed, and the resulting organization’s culture is not supportive.

Insufficient technological advances and poor digitization render the traditional methods of production ineffective in managing large-scale production, which limits the ability of the industry to expand and grow. Conventional systems and processes might not be able to attain the exact level of precision or accuracy that is offered by modern manufacturing methods, which can cause problems with quality.

Lengthy lead times Quality-assured manufacturing personalization, as well as supply chain deficiencies, can cause delays in lead times. This hinders fashion companies from reacting rapidly to changes in demand or trends, as well as different market trends. This could limit their ability to adapt and respond to opportunities.

 

 

The epidemic had a significant impact on the supply chain of fashion as well as forced the fashion industry to reconsider how they source, manufacture, distribute, and sell.

A change in the supply chain is long overdue in order to secure the future of manufacturing. Let’s look at some of the options to put fashion in the direction of development sustainability, innovation, sustainability, and style.

Game-changing fashion models for production in 2023

A variety of new production models within the fashion industry seek to tackle the issues that are caused by traditional production methods.

1. Circular style

A circular economy that is based on the principles of regenerative and restorative is the basis of an eco-friendly fashion economy. The objective is to ensure that resources remain used for the longest time possible. This approach focuses on creating clothes that are easily fixed, reused, or reused. This will help reduce waste while creating additional revenue sources. This can also provide transparency and traceability for the buyer, providing them with an understanding of the lifecycle of the clothing they purchase.

For instance, fashion retailer H&M has set itself a target of 100 percent circular fashion and climate-friendly operations in 2030. The company is working hard to reach this goal with initiatives such as its “Clothes Collecting’ program. Customers are encouraged to donate their unwanted clothes to be reused or reused.

2. Manufacturing on-demand

The model of on-demand, in which the item or apparel is made only when the order is made, is growing in speed. It proved particularly beneficial during the outbreak, providing an effective solution to the problem of unsold forecast models and inventory failings. This can help reduce production waste and boost efficiency. Production, since there’s no need to create massive quantities of clothes that might not be sold. This model also enables fashion firms to be flexible and adapt swiftly to changes in demand from consumers.

Brands such as Zara as well as ASOS have already embraced manufacturing on-demand to great success. In actual fact, Zara has been able to cut production times by reducing them from months down to two weeks, which allows the company to react quickly to shifts in demand from consumers.

3. Effective track and trace

Blockchain technologies are being investigated to improve efficiency and transparency in transformative supply chains. With blockchain technology, fashion companies can establish an independent and unalterable document of their entire existence, from the beginning of raw materials through the production stage and then sale. This allows customers to track the origins of a particular product and to ensure it’s ethical and sustainable in its fashion. In addition, blockchain technology can facilitate secure and reliable communication and transactions between various actors in the supply chain, including suppliers, manufacturers, and retailers.

4. Nearshoring

By utilizing nearshoring, companies are able to reap cost- and environmental advantages. By moving production facilities closer to consumer markets, many businesses are benefiting from shorter lead times, a reduction in transportation and import tax expenses, as well as less risk associated with inventory management.

Nearshoring could soon become the preferred logistics option of fashion because of its numerous advantages. Turkey is now one of the most important nearshoring centers in Europe, with 85 percent of Western European respondents expecting to increase their imports from the country in the coming years. Spanish brand Mango is planning to move certain production facilities in China as well as Vietnam into Turkey, Morocco, Portugal, and Portugal. At the same time, US footwear company Steve Madden has relocated the majority of its operations from Vietnam in Vietnam to Brazil.

5. 3-D printing

3D printing is already making its way into manufacturing industries and is expected to be a revolutionary technology in fashion manufacturing, too. Modern digitalization techniques employing 3D design software enable speedier prototyping and more efficient and cost-effective production, as well as the development of unique exclusive clothing.

One of the main advantages that comes with 3D printing is its ability to produce prototypes quickly and efficiently. This speeds up the design and development process, allowing fashion brands to bring their new products to market faster. Furthermore, 3D design software allows more customization since designers can create a variety of designs without the need for additional tools or molds.

The largest manufacturer of sportswear in Europe, Adidas, is experimenting with 3D printing for the production of shoe soles as well as other components of footwear. Adidas announced it had created the first 3D-printed shoe using an exclusive process known as “Speed factory,” which aims to increase the efficiency of production and cut down on production waste.

Wrapping up

The fashion industry affects millions of people around the globe and has a major impact on the planet that we are living in. The shift to more modern models, such as circular and demand, can be a great way to make the sector more sustainable and increase overall production quality as well as the overall customer experience. A conscious consumer is always looking for eco-friendly companies, so they have to make significant changes in their production methods in order to ensure their success.

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