When it comes to jeans, there’s a lot of intricate information that goes into crafting one pair. From where the cotton was grown to how it was dyed and sewn together, there are numerous details that go into crafting an item of clothing.
That is why brands like Livid have taken steps to be transparent about where their jeans come from. By identifying every step of their supply chain, they can make improvements that address the problems inherent in today’s denim supply chain head-on.
1. Get to Know Your Suppliers
In order to prevent suppliers from leaving you, it is essential that you get to know them and build strong relationships with them. This involves monitoring their performance, bargaining with them, and communicating your requirements clearly and concisely.
Establishing a successful relationship with your suppliers will save time and money while increasing the productivity of your team. Furthermore, it allows for the formation of partnerships that support and propel your business growth.
Suppliers can assist you with a number of tasks, such as developing new ideas, assessing the viability of products and services, and monitoring competitors’ activities. Furthermore, these professionals provide invaluable sources of data that allow you to reduce expenses, enhance product designs, and boost sales.
2. Invest in Technology
Investing in technology is an integral component of optimizing your denim supply chain. Not only will it boost efficiency levels, but it can also enhance customer service standards.
The denim industry is a hub for innovation, so it’s no surprise that companies are looking to take advantage of the most advanced technologies available. Finding the right technological solution can help your business become more efficient and effective, ultimately leading to higher profits.
One of the most impressive technology innovations in this category is a digital inventory management system, which can be utilized by all levels of your organization. This software helps optimize stockroom efficiency by tracking products and updating stock status in real time. Furthermore, it helps create better inventory reports which save money and boosts productivity levels.
3. Invest in Inventory Management
Inventory management is an essential element of the denim supply chain. Companies use it to keep tabs on their products, from raw materials to finished goods, so that they can make informed decisions about purchasing and shipping.
Additionally, this reduces the risk of overstocking or shortages that could result in lost revenue and unnecessary expense. Furthermore, it protects against theft, loss, obsolescence, and spoilage.
Good inventory management can help companies reduce their warehousing expenses and guarantee customers are always content with their purchases. Additionally, it helps them spot sales trends quickly so they don’t overstock on items that won’t sell quickly enough.
4. Focus on Supply Chain Collaboration
Supply chain collaboration is the ability to pool knowledge and resources between organizations engaged in raw material sourcing, manufacturing, distribution, sales, and marketing. This enables businesses to enhance their supply chains through greater flexibility, innovation, and cost reductions.
However, companies often struggle to achieve effective collaboration due to the disparate perspectives and skill sets among supply chain partners. For instance, a Tier-1 supplier manufacturing auto parts possesses vastly different expertise than a 3PL, shipping carrier, or warehouse operator.
Collaboration teams often face difficulties when trying to resolve potential conflicts between objectives. For instance, two manufacturers or retailers might both strive for reduced logistics costs but have different views on what metrics should be used as a gauge for success.
5. Focus on Sustainability
Sustainability is the practice of using natural resources responsibly so they remain accessible for future generations. Investing in sustainable practices throughout your denim supply chain management will not only give you a marketing advantage but also reduce its environmental impact over time.
In addition to protecting the environment, it’s essential to consider your supplier’s ethical and legal standing. This includes confirming they don’t use hazardous chemicals and that their operations are transparent to both employees and customers.
Cotton production, in particular, can be highly exploitative and water-intensive. Brands must trace their cotton sources to guarantee it’s grown with humanity and sustainability in mind.