Brands Face Supply Chain Issues, Possible Inflation

The retail industry is constantly changing, and it can be difficult to keep up with the latest trends. The retail landscape will continue to evolve as the market adapts to new economic conditions. One of the biggest challenges for brands has been understanding supply chain problems and possible inflation that will affect their business.

Some changes in apparel production are driven by increases in commodity prices which have increased costs for cotton, leather, oil-based dyes and other raw materials used in manufacturing clothes. These factors may have a negative impact on sales and bottom line revenue. So the question we ask ourselves is how do we come out of this better/stronger and far more positive? Well for one we need to start focusing on what we can control , which is our own inventory. By reducing the amount of time it takes to produce new garments, you will be able to minimize production errors and make more accurate forecasts of future demand. To do this, start with developing a manufacturing schedule that aligns with your production capabilities, then establish guidelines for suppliers that help reduce delivery times on specific types of orders. Another good idea is to consider adding more inventory-type SKUs in each style because they are less costly than special order items. This will also help in reducing port congestion, as we are currently experiencing, and we can plan out a longer lead time and flow in our deliveries. Working with our retailers, and planning their business and needs well in advance, will also help reduce this supply chain risk. We are all in the same boat ( we just need to plan smarter and partner better with our supply chain and partners) even though this could seem very challenging through these times.

Will be really interesting to see what 2022 brings, Thoughts ???