Which problems does a fashion brand face alog its supply chain?
The supply chain is the backbone of any business, especially for a fashion brand.
A navigation map that guarantees an experienced sailor to have an eye on the product and on the steps it will have to face.
Many studies suggest that 79% of companies with high-performing supply chains earn above-average revenue growth for their industry.
What if the supply chain is inefficient, ineffective or fragmented?
How can you predict the problems that may arise and the relative impact on turnover?
Let’s look together at the 3 most important problems that a fashion brand may face within its supply chain and the possible solutions.
Where do these materials come from?
Every brand has an endless number of suppliers that are divided into Tr1 and Tr2 (first and second level).
If we take for example the creation of a leather shoe, we will have the shoe factory as a first level supplier and the soles / leather supplier etc. as second level suppliers.
Most of the second tier suppliers are selected directly by the brand. It’s easy for the Brand to choose it according to the materials processing and their quality.
In this way, wanting those raw materials directly, he instructs the factory to buy directly from them.
What if the factory doesn’t?
It may happen that the factory is not acting properly! Whenever it decides not to source from the supplier selected by the brand but from other suppliers of raw materials that have a reduced cost.
How can the brand know if the factory has bought the raw material from the selected tannery?
Main solution: Qr code and blockchain! Each product must have a blockchain QR code that certifies its history and chemical and physical characteristics.
In this way, any disputed product that must be replaced – corrected or returned always passes through the QR code control.
Why is my goods always late?
In the journey of our pair of shoes, but it can be a tie or a shirt, any product, there may be delays that affect the timing of the finished product:
- Delays due to lack of material
- delays in loading documents
- delays in payments from factories
Main solution: More information and check! The brand must know in real time the orders that have been placed from the factory to the material suppliers
Within the supply chain software there must be this dashboard.
When was the material requested? When was it really shipped? Did it arrive by ship, plane? etc.
If you can find the answer to these and more questions you will be able to know the delivery times of the goods and calculate any delays and problems.
No excel sheets, no pieces of paper that can be lost! every order must be tracked, with maximum transparency in a supply chain platform.
Evaluation of my suppliers and sustainability
Each brand should have systems for evaluating its players within the supply chain, rewarding the best performing ones and identifying suppliers who use polluting and non-transparent products.
Main solution: It might be useful to have a supplier ranking within the platform, a ranking of the brand’s suppliers based on established parameters such as Sustainability, Service, Quality and Cost.
There can certainly be other problems but by starting to solve these you will be able to have a more transparent fashion supply chain – data driven and Sustainable.
“It is not the companies that compete. It is the supply chains that compete” Martin Christopher
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