Apparel Logistics in 2016: Managing the Transportation costs

The demands surrounding the fashion and apparel industry has been erratic and quite unpredictable in most cases and as a result the fashion industry is always required to battle through these difficult times to predict situations and volatile problems. The companies involved in constant upgrade of apparel technology and manufacturing and also running the retail business in the fashion market have seen dull days when profitability had been suffering a big blow due to the mismatch in demand and consequent supplies.

 Earlier it was observed and hence assumed that the roots of the problem lie in the forecasts which are usually done in an inaccurate way and working really hard on the forecasts can actually be the harbinger of good times.  But with so much of improvements achieved in the technology and sophisticated software being employed, forecasts have undergone improvement but accuracy is something which has still not been achieved.  So finally the apparel industry has decided to not depend on forecasts so much in order to reduce the complications in managing warehouse and primarily the logistics. Through improved integrated supply chain management and through efficient lead time management better days can be enjoyed certainly.

In apparel industry integration of full logistics not only saves money but brings about freedom with associated ease in operations and good maintenance. Integration has to be done in such a way so that information is disseminated at the right hour, transportation is taken care of, and inventory is managed in a green and logical way with good care taken in material handling and packaging with assured security. With the integration of logistics more value can be added in terms of time and place utility. With the help of the most modern and state of the art IT technology very complicated and various layered production logistics can be modeled, it can be effectively analyzed with options of visualizing and optimizing it. Simulation software has come up in a big way to cater to the dynamic changes prevalent in apparel demands.

There are numerous stages involved in the apparel industry starting from production of raw materials to final finished good and then make it available to customers via retail channels and all need to be aimed at within a stipulated period of time or else everything changes and there is no more value added in the fashion item. Logistics ensure that the whole business cycle is profitable giving maximum happiness to end users and the sincere producers.

Each and every stage of logistics adds value to the apparel industry. The main fields are procurement logistics, production logistics, distribution logistics, after sales logistics and disposal logistics. Yes, every stage is equally important to maximize profits and have a smooth winged operation system for apparel industry in place. Even the management of logistics is very important. Nowadays apart from 3PL logistics even 4PL logistics have come up to behave as appendages for the ever growing apparel industry where activities like customs, forwarders, agents and 3PL and many more activities are taken care of for the end user.

Even emergency logistics cannot be ignored since delays in launching of some brand of clothing line can seriously affect the image of a company. In such case if emergency logistics strategy and resources are kept handy then materials and products can be moved very quickly during the time of unseen circumstances.

Inventory however has always been a challenge to manage in practically most of the industries and apparel industry is no exception to that rule. But the debate goes in seeking the answer whether inventory is an asset or liability. However it proves to be futile since in order to operate in any retail industry, inventory is a must have and cannot be avoided. And apparel industry needs to propel itself and move forward by going hand in hand with the retail business. In fact a very major apparel industry stalwart once expressed that he is ready to suffer the blow of lesser sales rather than coping with risky inventory.

A model needs to be embraced for the total apparel industry that can share the commitment of inventory all throughout the value chain. And success can be ensured when delivery can be facilitated from the point closest in the value chain with respect to the purchaser. As per latest updates on apparel logistics the focus of the entire value chain is now shifting gradually from reducing the production costs to actually being able to meet the demands and expectation of the end consumers.  It has been slowly realized that profits are not dependent on how well the store shelve are kept crowded but it is only dependent on how well have the clothes filled up the space in the closets and shelves of end customer.

The items have to be made quickly available to customers whenever they require and desire it the most and for that intelligent segmentation of products system needs to be in place. This shall allow the constant monitoring of the fast track trendy items that are expected to make it to the shelves as quickly as possible.  Along with this logistics for replenishment and processes has to be introduced. Even processes and cycles that can significantly bring down the costs by employing basic product processes which are usually present in normal conditions. Usually these products and materials are only updated or undergo replenishment and further refreshed at periodic interval, this is something which is required to be changed and managed.

Once the segmentation of products have been achieved, the apparel companies can decide and fix the quantities and numbers of the items that must be produced in a certain period of time with some information drawn on demand forecasting.  This is also achieved by interlinking the lean supply network with the lean retail environment- which is basically the system which can aid in the replenishment of the inventories as and when required. But of course in textile industry the key factor which should ideally make way for all process flow is the demand experienced from the consumers. Only after hearing it out from the consumers can supply chain be collaborated at the right stage and further development, followed by efficient manufacturing can be ensured.

 

ShippingExchange is world’s largest online marketplace for Sea Rates which helps exporters/importers worldwide to get best ocean freight rates for their shipments from widest range of service providers at absolutely NO COST.