If you are in this article, it means that you have read the article about Modern Fashion Supply Chain Pt.4, right? Or not yet? If not, we recommend you to read the previous article to understand the flow of the information! So that you also understand from beginning to the end about the modern part of the fashion supply chain! Let’s get started to discuss data for fashion demand forecasting and how modern fashion supply chains facilitate apparel inventory planning.
Using Data for Fashion Demand Forecasting
Both established and emerging fashion brands can use data to piece together a clearer picture of what fashion shoppers need and want over time. In Chapter Two, we highlight the access fashion brands now have to digital tools that rely on historical inventory and sales data to make more accurate apparel inventory forecasts. Today, fashion brands also have access to trend-tracking data outside of business, which can add texture to their predictions. Adopting the right mix of these data tools within the fashion business, outside the fashion business, and working with fashion business suppliers enables forward-thinking brands to:
Predict customer demand better.
Fashion brands can use digital tools like Google Trends, Google Ads and social media to track online search trends near their top-selling retail locations. This allows them to secure timely information on the clothing products most sought after by most of their customers and record whether or not those desires match seasonal expectations over time.
A reliable best selling spot with the potential to become a label staple.
Apparel designers can easily do this by modeling the volume and frequency of reorders over time using data collected in collaboration with their garment manufacturing partners.
Find opportunities to test new fabrics or product colors. These experiments were best informed by the reorder data mentioned above and were carried out in collaboration with experienced and trusted manufacturing partners, especially those with experience in small-scale apparel manufacturing.
Plan lead times more accurately.
Comparing clear, visual data on sampling, production, quality assurance, and delivery schedules across various product, design, and manufacturing partners will help fashion houses standardize their own unique product cycles – whether they fall within the traditional Spring/Summer or Fall or no / Winter.
Learn how to use historical data to estimate inventory demand
Tracking and analyzing manufacturing history and sales data using technology tools works best with tools that enable a unified view of the complete fashion supply chain, as well as sales and overstock, across a fashion business. That’s because fashion brands have to evaluate the effectiveness of each fashion forecast.
Is the stock sold out? How much excess stock is left? Do certain clothing products over or underperform? Was there a major supply chain disruption? If so, why?
Asking questions like these, giving them honest answers, and modeling the results over time encourages fashion businesses to see the forest from the trees, see changes over time, and plan instead of react. It usually takes fashion labels at least 2 years to do this homework before they can begin to find key patterns that inform inventory needs.
While data analysis plays an important role in fashion demand forecasting, solid planning does require more than just data. It also demands a responsive, reliable and modern apparel supply chain.
How Modern Fashion Supply Chains Facilitate Apparel Inventory Planning
Fashion brands and retailers must constantly balance what their customers want with what their fashion supply chain can provide. Relying on a digital, diverse, transparent, predictive and partnered modern fashion supply chain gives the business distinct advantages in terms of clothing inventory planning:
The more your fashion supply chain partners use digital tools to enable production, back-order, and lead-time data tracking, the clearer you’ll have on-time sampling, production, shipping, and marketing and promotions, regardless of season.
The more agile and diverse your supply chain is, the better your fashion brand can rise to meet changing demands in inventory planning. That’s the case even if you source overseas with a higher quality manufacturing partner. Also, when you begin to structure your sourcing network taking into account the location of manufacturers and the diversity of specialties, your supply chain response time will be faster as you will not have to repeatedly go through the lengthy process of vetting new vendors.
Working with them
Working with transparent supply chain partners makes your data reporting honest and reliable. This is important because small differences in lead times can throw off your plans to present samples to fashion buyers or retailers on schedule. Also, the more variables your data describes, the more complete your inventory estimates will be.
Partnering with an apparel supplier that prioritizes predictive metrics and tracks fashion trends yourself lets you stay ahead of emerging trends in apparel fabric, production, and design. The systems mentioned above work best when done in collaboration with expert-level partners who have built a reputation and value your brand’s success just as much as you do.
Now that you know a little more about how to qualify your fashion supply chain partners, plan your logistics, and forecast your demand, we’ll look at the evolution of fashion supply chain management, and how to build and leverage modern models. forward approach.