The role and functions of apparel buying houses are also evolving to reflect the changing needs and expectations of fashion retailers and brands. While traditionally acting as intermediaries between manufacturers and retailers, they were tasked with identifying and vetting suppliers who meet certain environmental and social criteria, as well as providing guidance on compliance and regulatory issues. They were also responsible for negotiating the price, checking quality, ensuring timely deliveries and managing crises of any kind.
But now the fashion industry is experiencing a paradigm shift in sourcing with the advent of technology. These buying houses are expected to undertake many chores which were earlier either not possible or practical.
Use of digital tools and platforms to streamline procurement processes
The process of identifying and selecting suppliers for raw materials, fabrics, trims and finished goods followed by negotiations for pricing and terms and ordering process has been made more transparent. Similarly, the use of technology in production planning tools to schedule, coordinate and check quality of the product manufacturers ensures timely delivery.
Increased focus on sustainability, ethics and transparency in the supply chain
Consumers are becoming more conscious of the environmental and social impact of their purchasing decisions, leading fashion companies utilise various technology tools to ensure that their products are sustainably and ethically sourced.
One important technology being used is supply chain management software, which allows companies to track products through the supply chain and identify potential issues that could impact sustainability and ethical sourcing practices. Several Indian companies are creating blockchain-enabled software solutions for supply chain management in the fashion industry.
Forecasting fashion trends; consumer preferences and creating fashion collections have to be an integral part of buying operation
Artificial intelligence and machine learning are being integrated into fashion buying operations to help customers choose the right products based on fashion trends and consumer preferences. Augmented and mixed reality technologies are being used to showcase fashion collections and reduce delivery times. These technology tools are helping fashion companies to streamline their operations, improve communication with suppliers and customers and ensure that their products meet the sustainability and ethical standards demanded by consumers.
Adoption of circular economy principles
Another important trend in fashion apparel sourcing is the adoption of circular economy principles. This involves designing products with longevity in mind, using recycled materials and implementing closed-loop systems for materials and products. Brands and retailers are investing in research and development to find innovative solutions to environmental and social challenges, partnering with suppliers and manufacturers to develop more sustainable and ethical supply chains. There is a growing focus on ethical sourcing practices, such as fair labour standards and living wages for workers, as well as on the use of sustainable materials and production methods. By adopting these principles, retailers and brands can build trust with consumers, reduce their environmental impact and contribute to a more equitable and sustainable future for the industry.
Overall, the fashion industry’s shift towards sustainable and ethical sourcing practices is a positive step towards a more sustainable and equitable future. As consumers become increasingly conscious of the impact of their purchasing decisions, it is important for fashion companies to prioritise sustainability and ethics in their supply chains. By utilising technology tools and adopting blockchain and the circular economy principles, fashion companies can meet the demands of consumers while also reducing their environmental impact and contribute to a more sustainable and equitable future for the industry.
Some of the commonly used or expected to use tools include Product Lifecycle Management (PLM) software, Enterprise Resource Planning (ERP) software, 3D design software, virtual fitting and try-on tools, digital sourcing and procurement tools. These tools can help streamline processes, improve collaboration, reduce costs and enhance overall efficiency and transparency in the apparel buying process.
Evaluating the manufacturing capability data of the suppliers
Historic data is a valuable resource that can be used to evaluate suppliers and make informed decisions regarding supplier selection and management. By collecting data from various sources such as procurement systems, financial reports and supplier performance metrics, organisations can gain insights into suppliers’ performance and identify potential risks and opportunities.
Data analytics can also be used to evaluate apparel manufacturers’ manufacturing capability and value-addition techniques. Manufacturing capability is often based on the kind of technology used such as automated sewing machines, automatic fabric cutting machines and spreaders. By collecting data on the types of machines used and their performance, organisations can gain insights into manufacturers’ capabilities and identify opportunities for improvement.
Similarly, value addition on garments often requires specific equipment such as embroidery machines, laser machines and digital printing machines. By collecting data on the types of value-addition equipment used and their performance, organisations can gain insights into manufacturers’ value-addition capability and identify opportunities for improvement.
By documenting this data and using it to evaluate manufacturers, organisations can identify the best suppliers based on their manufacturing capability and value-addition techniques.
In addition to evaluating current suppliers, documenting manufacturing capability and value-addition techniques can also be useful for identifying new suppliers. By creating a database of suppliers with such capabilities, organisations can easily identify potential new suppliers and evaluate them based on their performance against established criteria.
Before analysing the data, it is important to clean the data to remove any errors or inconsistencies and ensure accuracy. Once the data is cleaned, statistical methods such as data mining and machine learning algorithms can be used to identify trends, patterns and outliers.
To evaluate suppliers, key performance indicators (KPIs) such as delivery time, quality, cost, and responsiveness can be used. Suppliers can be segmented based on their performance to identify the best and worst performers. The best-performing suppliers can then be selected for future procurement activities.
Supplier performance scorecards can be used to evaluate supplier performance against KPIs. Spend analysis tools can also be used to track spending patterns and identify cost-saving opportunities. Risk assessment tools can be used to identify potential risks associated with suppliers.
By using data analytics to identify the best suppliers, organisations can make more efficient and objective decisions. Continuously monitoring supplier performance and identifying opportunities for improvement can lead to improved efficiency and cost savings.
