Through the years, fashion has adapted to suit the needs of the times. To stay current, the industry must always evolve to keep pace with the seasonal changes of collections, styles, and trends. But this has only been possible with efficient supply chains.
Technological advancements and consumer behaviour shifts, such as the rise of e-commerce and mobile shopping, are the drivers for the accelerating growth of the logistics industry today.
What are the challenges facing fashion companies when it comes to supply chains?
In terms of customs, retailers and fashion brands globally are facing challenges and pressures due to enhanced complexities of imports and exports. These could be materials delayed in transit, which then lead to damaged reputations and punches to annual revenue.
In fashion, sales are focused on cyclic rotations throughout the year, from jumpers in winter and shorts in summer. But when there is a sudden change in weather conditions, such as a heatwave in spring across Europe during Covid 19, the production of summer clothes would have had to increase.
Due to the unprecedented nature of the pandemic, customs data may have lagged, with products getting stuck at the borders and remaining stock may have had to be heavily discounted.
How could this be improved?
The quick movement of goods through the supply chain, including the passing of customs checks, is essential to accommodating to these seasonal shifts.
Subsequently, there is a strong demand for specialist customs support to simplify processes and save money for the retailers so that they can gain unique broadcasting of their brand, by being able to control their supply chains.
Centralisation is key to optimising transit speed times, as it would provide a consistent customs process, with less delays and disruptions to consumer demand and business needs.
Warehouse worries?
Make cost savings through better stock management with bonded warehouses. They can store stock that is not in season, as well as deferring duty payments.
Some specialists can help retailers claim back all the overpaid duty on shipments, working back up to three years, potentially providing them with instant funds.
Digital tools like warehouse management software organises inventories so that stock can be found efficiently and without complications. This gives retailers the opportunities to control revenues and wait for the stock to become ‘on trend’ once again.
Value of expertise in fashion supply chains
As the fashion industry is tumultuous and thrives off competition, the margin between succeeding and failing is small. So, a unique selling point in terms of the efficiency of their transportation of cargo or continuing to modernise stock in every circumstance, is vital to be the brand that stands out.
Here at Cardinal, our in-house team analyse your customs records to ensure all classifications are correct and amend the ones that aren’t.
We give insight wherever you need it, helped by our award-winning supply chain platform, Leda, giving constant updates on the status of your cargo, shipments, and client documentation wherever you are.
The world of fashion can be stressful, so why not have peace of mind when it comes to customs, so that you’re able to dedicate more time to areas of the business that generate the most impact.
If you have any questions or queries, please do not hesitate to contact a member of the team.
