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Al in Fashion: Innovative and Improved Supply Chain Management of the Fashion Industry

The pace of innovation has increased more than ever and obviously, the fashion industry is not lagging behind. From online shopping to workplace practices, people working in the fashion industry have witnessed a lot of changes and upgrades in the past couple of years. With a net worth of over three trillion dollars, the fashion industry accounts for 2% of the global GDP. Whether you are looking into the eCommerce sector or the traditional sewing machines used for manufacturing, everything is now undergoing major technological innovation. 

And if you ask me, logistics or supply chain management has seen the most changes. In today’s digitalized world, AI in fashion has saved the supply chain which was otherwise disrupted by the pandemic, ongoing geopolitical tensions, and various other factors. This has not only helped in lifting the halt in productions and facilitating the product flow but also exposed both suppliers and brands to an improved scale than they have encountered ever before. 

Restructuring of Supply Chain With AI in Fashion

As the situation of the pandemic is slowly improving, retail is reopening with certain restrictions across different parts of the world. But, as far as I can see, the biggest burden in the fashion industry still remains. That is, excess inventory in terms of brand reputation and lost revenue potential. Well, if you are wondering how that can happen, let me tell you this. According to statistics, over 350,000 tonnes of clothing are found in the UK landfills every year. This wastage is equal to £140 million worth of share market stocks. Hence, it is a waste for both the environment and the brands that are creating them. 

Al uses the Original Design Manufacturing Model for producing stocks only when they are sold, facilitating a smart manufacturing process. That way, retailers have the opportunity to rethink their manufacturing methods and processes that would completely avoid the requirement of creating an inventory for the future market sell. Using such autonomous solutions like Al-powered insights and robotics, manufacturers are empowered with precise and better knowledge in forecasting and preparing for their supply requirements depending upon certain factors such as weather, road construction, trends, and others. Using artificial intelligence, fashion businesses have also automated their supply chain and logistics processes for finding alternate routes and faster deliveries. 

Various brands have incorporated Al-powered supply chains to increase their level of efficiency. It is believed that Al-enabled supply chains have an effectiveness of over 65%, lowering overall costs and reducing any unforeseen risks. For instance, 22 Factor, a lifestyle start-up by Cobalt Fashion, provides designers with an augmented sample of their potential garments, which shortens the process from sketching to marketing by almost 92%. This way, when retailers migrate from conventional formulas and techniques to new, innovative manufacturing models, they can forecast effective top-selling items. 

Different Ways of Innovating Supply Chain Management

Al Supply Chain Management Fashion Industry

Technological advancements in data science and artificial intelligence have optimized the supply chain management of the fashion industry in various ways. That is, from order management to the last stage of last-mile fulfillment, everything can now be taken care of by artificial intelligence. 

For instance, brands are implementing user-friendly and interactive mobile interfaces so that they can provide their customers with improved browsing and shopping experience. Other than that, they also use efficient and fast online payment mechanisms that enable them for hassle-free checkouts. Nonetheless, there are also other ways in which Al in fashion has impacted its supply chain management, and here’s how: 

  • Route Planning 

Fashion brands also use different software for intelligent route optimization. This helps them to plan out their day-to-day deliveries beforehand, ensuring timely delivery of packages, and proper allocation of tasks to the riders. This entire process facilitates a fulfilling buying experience for the consumers. 

  • Fleet Tracking Solutions 

Artificial intelligence has brought along with itself various supply chain tracking solutions that help both brands and their customers to keep track of their packages. That is, one can track their order at every point right from their placement to delivery. 

  • Smart Analytics 

There are various tools that provide customers with valuable insights such as wishlisted items, browsing data, and previous purchases. This also helps retailers to offer more personalized product options, seasonal deals, and discount offers to their customers. 

Final words

Hence, there are multiple ways in which machine learning technologies and artificial intelligence have impacted the global fashion industry. They have not only increased the business potential of the overall fashion industry but also smoothened out its different processes. 

Hence, just like many, Fashinza uses artificial intelligence to streamline its supply chain management and connecting brands to the right suppliers. 

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