Inventory at the brands’ and retailers’ end and the decisions of their buying professionals have a close relationship as poor buying decision leads to unsold stock and poor planning leads to stock out or unsold inventory. In this changing scenario of the global apparel trade, which is undoubtedly quite unpredictable, small orders are unavoidable. Rather than going for commitment to full-year sourcing, buyers are now exploring newer and different options. In fact, in some of the good international sourcing events, various manufacturers or stakeholders in the apparel sourcing supply chain highlighted that they are eager to do small orders as they know that to survive and grow, these smaller orders are now a must. To control excess inventory, brands, buying communities are on their toes, so the manufacturers are also aligning themselves accordingly. Apart from all this, more thrust on e-commerce sailing is also increasing the focus on small order quantity.
As far as the number of pieces or order size is concerned, there is no such set standard or common figure but all stakeholders of the industry, right from leading exporters to micro-level firms agree that there is a significant reduction in their order size by most of their buyers and now it is like a set pattern that there will be more number of styles with less number of pieces per order.
Buyers are under pressure
Rather than going for state-of-the-art technology for analysis, a large segment of buyers (including some big companies also) are still depending on their traditional ways, and a few of them are banking on software like Excel.
With the growing number of styles and several orders (not the overall business volume), buying experts believe that there is no other way. Test and learn, buy and react is their mantra when they have the opportunity to get things quickly and work with MOQs.
Indeed one has to understand that by the time the buying professionals or backend planners realise that style x is working in one region of the country and not the other, almost half the season is over. Once the stock is shipped and sent to the store where the style sells, it’s often too late and it anyways ends up getting discounted.
Buying professionals also suggest that being bullish is very pivotal to being a buyer because if a buyer is not courageous enough to expose his customers to a new trend, buyers are denying them an opportunity to ride the wave and thereby falling back in the game.
Changing Manufacturers’ Mindset
On the manufacturers’ front, things are improving with small orders, having grey (in few cases ready fabric also) fabric in stock, separate lines for small orders, insisting on more price for smaller orders, and the most important thing, the mindset to do small order size. Earlier good prices for small orders used to be a mandatory condition as apparel manufacturers who were comfortable doing small orders used to insist on comparatively high prices. But now as their regular buyers, who usually place volume orders or comparatively reasonable size orders, are also banking on small orders and are not giving any extra price, the previous notion of higher prices for smaller orders is gradually receding.
This entire scenario is conducive for smaller order quantities as things are becoming easier with dedicated companies now serving smaller orders and providing support of all kinds right from sourcing to execution. Various B2B Marketplaces are also having their focus on such orders as they have all kinds of buyers and suppliers as well. As this business of small orders is comparatively more consistent, small and medium-level manufacturers are now tilting more towards this prolific option.
