Over the past few years, the apparel sourcing business has experienced a rollercoaster of change. It often appears to be on track, but occasionally it is still off course, and that is a situation that lasts for a while. Many in the business are currently facing financial uncertainty or, to be more accurate, actual financial suffering as a result of order volatility, reduced order volumes, extended payment terms, shipment delays, political unrest in key industrial hubs, and increased consumerism. Effective risk management and a plan for suppliers to adapt to withstand upcoming disruptions should be included in sourcing strategy!
It’s majorly the combination of Cost, Capacity, Stability, Sustainability and Overexposure which the apparel supply chain is trying to find a right balance between. There are so many things one needs to be mindful of, amidst pandemic, recognising there’s been issues and things changed so drastically that it didn’t even take a second to disrupt the decades-long sourcing practices in the apparel industry. The geo-political environment, US-China relations and Ukraine-Russia war are only adding to the woes. Therefore, the industry needs to constantly re-invent itself and start thinking differently about contingencies and back-ups.