Summary: Today, with increased globalization, the exchange of goods between businesses and consumers is quick and economical. As a result, companies have to invest into advance innovations and strategies while distributing products worldwide and remaining competitive.
The apparel industry is no different from any other industry: it relies heavily on logistics and supply chain management.
But with the emergence of fast fashion and a limitless supply of textiles, logistics and supply chain management calls for the right strategies to handle risks. Let's understand a few reasons why logistics and supply chain management is important.
Businesses of all sizes are adjusting everything from innovation to evolution to stay competitive. Every firm invests in managing its supply chain and logistics to succeed.
We've compiled a list of top reasons why logistics and supply chain management are so critical in today's world.
Efficient logistics and supply chain management allows businesses to optimize organizational and operational processes—whether related to inventory management, manufacturing, or distribution—by integrating them through technology solutions like mobile eCommerce apps or cloud computing platforms.
Process flexibility is crucial for businesses to work feasibly and seamlessly. It ensures cost-cutting in several supply chain levels and a time-saving factory-to-home method.
Most of the textile business relies on the nations where the resources are sourced. Fabric accounts for 50% to 80% of the cost of a garment, making it the single biggest cost driver in the business.
But due to the rise in fast fashion and online fashion retail, efficient logistics and supply chain management fine tunes all the processes from procuring raw materials to warehousing capacity and packaging to transportation.
This helps industries to reduce dependence on backward linkages and promote sustainable practices within the company's processes.
Many customers care about getting their products and services delivered on time. Delays are considered unprofessional, and companies can be deemed with poor reviews. What makes a brand lucrative is its transparency in the services they offer.
Though it's difficult for young brands, selecting proper methodologies, systems, and partners to provide efficient logistics and supply chain management can skyrocket brand loyalty.
Businesses thrive on good logistics and supply management strategies. By properly assessing supply chain management, one can foresee any upcoming hurdles and take proactive measures to combat them.
Efficient logistics and supply chain management reduces the possibility of any incumbent problems causing a hole in the pocket. It reduces costs by reducing waste due to inefficient inventory management practices or poor distribution systems, which result in unnecessary transportation costs.
Quality control is a crucial aspect of the apparel business. Quality control mostly tends to occur at the source when businesses focus on logistic operations and supply chain management. That's where the product's sustainability is improved in terms of quality, following customer preferences, reducing the use of fossil fuels, and embracing renewable energy.
Online fashion retail businesses have proliferated, leading to increasing demands for cross-border collaborations. With transparent and sustainable supply chains, businesses can identify their customer base and trading partners globally. And with innovative technologies, one can develop a robust communication system that boosts network control and improves business legitimacy.
Supply chain management strives to enhance the entire distribution system by managing several procedures. It enables the business to manage the task and finish the orders ahead of schedule or on time.
All sectors are given an equal share of the labor, and the management monitors every stage of the process, from raw materials to manufacturing to delivery.
Recently, textile businesses were held in a frenzy for increased carbon emissions. Though their impact is obvious, businesses can reduce the impact on the environment with the right sustainable logistics and supply chain management practices.
Many businesses are targeting millennial audiences because they are more likely to buy sustainable fashion. Effective logistics and supply chain management helps organizations showcase their sustainable practices in inventory management and reduced resource usage.
A business can even build a sustainable procurement network to have a competitive advantage in the industry.
Freight jobs have spiked in the industry recently. Intriguingly, the numbers show that the proportion of women working in the logistics sector is also rising quickly, from 5% ten years ago to 21% now.
Several job roles like consignment booking assistant, e-documentation assistant, and courier delivery executive are open in the logistics and supply chain industry.
Many businesses support and promote gender diversity. And as a result, women are assuming leadership roles in potential areas of the industry.
A modern world calls for logistics and supply chain upgradation, like incorporating automated processes, to foster timely distribution, prioritize customer demands, and enable sustainable procurement to make a brand successful in every aspect.
Neglecting logistics and supply chain management could be the biggest drag for businesses today. Especially with immense globalization, companies must adapt to the recent trends and innovations in logistics and supply chain management. Fashinza is one such platform that helps brands, manufacturing industries, and logistic partners to connect seamlessly.
Connect with Fashinza today to imply the latest supply chain innovations in your business!