ASSIGNMENT 2

SUPPLY CHAIN
MANAGEMENT

Under the Guidance of Mr. Joseph Regy

Bachelor of Fashion Technology
5 t h N o v e m
b e r 2 0 2 2
Group Members

Aastha Kumari
BFT/19/91

Annem Ananya Sri

BFT/19/52

Bhumika Pant
BFT/19/113

Shankhadip Das
BFT/19/626

Batch of 2019 - 2023

NIFT, Bengaluru
 TABLE OF CONTENTS

To Do

Introduction to Fashion Supply Chain

Emerging Technologies in Fashion Supply Chain

Conclusion

References & Citation

 To Do
End Module Assignment

Study and report on Emerging Technologies in Fashion Supply Chain

 Introduction to Fashion Supply Chain
The textile, apparel, and footwear industries all require a lot of labor. Tens of millions of
garment workers are thought to be employed by the fashion industry worldwide.

The term "fashion supply chain" describes the process of tracking each stage of the
production of clothing, from the procurement of raw materials through the factories where
those resources are transformed into garments, as well as the distribution system used to
distribute the clothing to consumers. Growing, processing, sewing, and selling raw materials
all in one area is a time-consuming procedure.

There are millions of people working in the worldwide textile supply chain, along with tonnes
of water, chemicals, crops, and oil. Your clothes are able to get to your wardrobe because
of this. There has been an increased push for rapid speed, high volume, and low
consumption over the past 20 years. Fast fashion may be extremely harmful to the
environment, humans, and animals. Tragedies like the collapse of the Rana Plaza factory in
Bangladesh have occurred as a result of the rise of consumption above an open, secure,
and moral supply chain.
Factors controlling the fashion supply chain:

Accelerate speed to market- To meet in-store dates, it is constantly necessary to

shorten all feasible process timescales (planning, design, development, sourcing,
production, and distribution). Optimizing these functional domains is the cornerstone of
a successful product development process.
Effective collaboration- The reliability of the end result is increased by ensuring the
appropriate amount of communication. Both the internal cross-functional teams
(planning, design, development) and the external partners (sourcing, production,
distribution) involved in creating the products depend on collaboration.
Single source of truth- For the purposes of the fundamentals of product development,
visibility to the existing product and pertinent data at the specific time-slice is
necessary. Teams will always be working with the pertinent information if physical
document exchange is replaced with system-based data management.
Cost reduction- A simplified process uses fewer cycles and iterations, which decreases
the likelihood of problems. Finding geographically positioned vendors to minimize
delivery costs is another option, as is advising cost-effective product modifications.
Alignment to seasonal timelines- To guarantee alignment with the seasonal calendar, a
strong connectivity is necessary not just between internal processes but also between
other SCM, ERP, etc. systems. Brand managers must continually monitor their product
lines and be able to take preventative or corrective action.
Compliance management- Today, it is commonly acknowledged that CSR is a key
component of fashion design. Brands today need to appeal to environmentally
conscious consumers, for whom compliance is a key purchasing consideration in
addition to corporate regulations.

A breakdown of the Fashion Supply Chain :

 Major Challenges in the Supply Chain
The global, complex and multi-step nature of modern supply chains creates several
challenges for supply chain managers.

Lack of Transparency in the Supply Chain

Legacy supply chains are often opaque and difficult to understand. This makes it hard to
track and plan for how goods are moving through the supply chain. Without transparency,
optimization and effective demand management are almost impossible. This issue is
heightened by fragmented, legacy software and systems that do not allow for the
consistent capture, reporting and transferal of information.

Goods That Are Lost or Delayed

An effective supply chain depends on streamlining the movement and processing of goods.
Without proper tracking, authenticating the sending, receiving and location of goods is a
big challenge. This creates unnecessary delays and holdups, damaging upstream and
downstream operations throughout the supply chain.

Increased Waste and Insufficient Planning

Small reductions in supply chain efficiency can have a significant overall impact on
productivity and profitability. Without proper status updates and reporting, supply chains will
waste effort, resources and time. This makes it difficult to manage expectations and plans.

Poor Relationships and Unhappy Consumers

Supply chains need to be as fast as possible to meet the demands of modern consumers. A
complex, legacy supply chain often relies on the goodwill and established norms to work
well. When these areas are challenged by increased demand or outside disruption,
relationships can suffer, together with the quality and timeliness of supplying products.
 Evolution and Digitization of Supply Chain
Technological innovation and an increased focus on SCM are driving changes that will
benefit all supply chain stakeholders.
Internet of Things (IoT) devices that will monitor, track and report on the location of
goods, wherever they are
Blockchain technology that creates a public, distributed and secure ledger for greater
transparency and easy access to information
Common software that all stakeholders can use to update important supply chain
information
Real-time visibility of inventory and stock levels
Automation of common supply chain activities to reduce errors and rework and enhance
productivity
Deep reporting and analysis to identify bottlenecks, streamline SCM steps and reduce
waste
Machine learning and artificial intelligence that uses algorithms to gain insight into your
supply chain and provide recommendations for efficiency improvements

Supply Chain can be digitized in all the below stages and improve production efficiency:
1. Original sourcing or extraction of raw materials
2. Refining or manufacturing materials into basic parts
3. Assembling basic parts into finished products
4. Selling finished products to end users
5. Delivering finished products to end users or consumers

Effective supply chain management relies on everyone involved in the supply chain network
providing timely, accurate and consistent information to identify issues and streamline the
process.
 Product Design
Over the last several decades there have been quantum leaps in terms of advancements in
software. Today there’s literally an “app” for everything, and I mean that in the most literal
sense. In the past few years, however, it’s been breakthroughs in hardware that have
dominated the headlines with lots of media momentum around tech trends, such as 3D
printing, wearable technologies, and the Internet of Things.

Software giant Autodesk just today announced the Spark Investment Fund, which will
provide up to $100 million in seed money for 3D printing companies over the next several
years. Earlier this year the company announced a new open-software 3D printing platform
called Spark that will make it easier to connect digital information to 3D printers.

Earlier this week, HP announced the debut of its Sprout PC, which combines a desktop PC
with a 3D scanner that can digitize physical objects and a projector with a 20-inch, touch-
sensitive mat. Both the 3D scanner and the projector point at the touch mat, creating a
workspace that enables the “physical” manipulation of digital objects.

Despite the great strides on both sides of the equation, product design has yet to benefit
from many of these emerging trends. Gaps still exist between the left hand (software) and
right hand (hardware) of technology that prevent the seamless connection that will provide
designers with a truly intuitive design experience.

These technologies include:

Touch experiences – Today, this is the most mature non-keyboard and mouse user
experience out there. When the iPhone was introduced in 2007, Sutherland’s SketchPad
vision from 1963 came to life. You can express yourself digitally faster and easier, like you
would with pen and paper, thanks to apps like Autodesk Sketchbook and FiftyThree Paper.

Motion Sensing – Using your body as a user interface and controller seems like science
fiction, but after Microsoft introduced Kinect to the world, this idea has come closer to
reality. Leap Motion took this approach further and focused specifically on hand
movements. It still takes time to understand and adjust to this kind of experience, but it has
the potential to become an easy way to demonstrate your ideas and make it more
collaborative to work on 3D designs.
The Leap Motion Controller senses how you naturally move your hands and lets you use your
computer in a whole new way.

Augmented Reality – Although we know very little so far, quite a bit has been written and
speculated about MagicLeap. According to some resources, MagicLeap’s new hardware
technology could project 3D models in front of us, without the need for any accessories.
Similar to Oculus Rift, this could change the way we interact with displays and how we
experience 3D design today.
 Product Design
Virtual Reality – Our entire digital design world exists only in a 2D environment, far away
from our real-life design experience, like sculpturing, construction, and other design
experiences. What if we could actually live as a 3D presence in our digital design world?
Oculus Rift brings this experience to life with a headset that makes you feel like you’re in
different world. Imagine designing a new house in a 3D space while being able to walk
through your newly decorated house. Take a look at this cool 3D sculpture app using the
Oculus Rift headset.

Computer Vision – New devices equipped with 3D depth-sensing and scanning

technologies will help us work and iterate on existing real-life objects far more easily,
making review process on 3D designs much simpler. There are already large 3D scanners,
and you can watch Google Project Tango in action to understand how the experience
works.

Artificial Intelligence – As human beings, we know that we’re imperfect and that we have
limitations. While software may have some flaws, it has the potential to produce highly-
detailed designs in a matter of seconds, something that would otherwise takes us days,
weeks or months to produce. Take a look as Autodesk’s “Dreamcatcher” project generates
multiple options of a chair design. Just define the area you want to be designed, and the
software will take care the rest.
 Raw Material Procurement
Just as technology is touching every stratum of development to make a simple effort a major
success, Automation and Industry 4.0 are the buzzwords driving the apparel industry today.
It’s all about simplifying processes, optimising raw materials and processes and bringing in
higher transparency with improved timelines.

Supply chain can benefit from reduced lead times, reduced inventory levels leading to
reduced operational costs and decreased product obsolescence at retail level. To develop
such smart supply chains which are fully automated and interconnected, significant amount
of efforts and long-term investments are required, along with the comprehension of the
latest tools, but the payoffs can be significant. Sourcing teams of brands and retailers not
only need to understand these latest trends but also adopt them with their partners.

The advent of technology and the openness of industry stakeholders to imbibe the same in
the smallest of operations has led to the achievement of strategic goals with optimised cost
and time. Sukumaran, Managing Director, Star Sri Lanka, talks about the changing sourcing
trends and the effect of technology on the same, “From manufacturer focus and customer
demand for ethical sourcing and manufacturing to international geopolitics and trade
negotiations, micro and macroeconomic factors play a critical part in influencing sourcing
trends.”

On the other hand, Wicrant Gambhir, Head of Sourcing, Jockey India, discusses the trends
that are prevailing and are bound to dictate the market for sourcing, “The trends that are
directing the processes of sourcing are speed to market, capacity underwriting with the
vendors, captive manufacturing units, having vertical vendors in the fold and an agile
manufacturing setup suited for short runs/staggered deliveries.”

The world has moved beyond looking at IT as an independent function within an

organisation. Information technology is now embedded at the core of every single
functional area within any organisation. As Sukumaran avers, “From 3D sample design to
automated planning to the use of AI to stay ahead in the game, it is important that the
organisations explore the limitless possibilities of technology to make its processes more
efficient across the board.”

Wicrant renders Industry 4.0 as a revolution in the industry, which is bringing in a tectonic
shift in the world of business, enumerating digitisation, digitalisation, artificial intelligence,
cognitive computing, internet of things and other innovations as the key parts of Industry
4.0. Talking about the need of software that will enable better sourcing practices by
managing the product lifecycle, he says, “The ideal software should be able to create a
product mix from the market demand and further create a buying plan from the mix,
simplifying manufacturing allocation or vendor costing keeping multiple variables in focus;
have smooth interface between the sourcing and vendor teams, and manage TnA and the
performance of manufacturers on real time basis while enhancing warehouse
management.”
 Raw Material Procurement
A pioneer in the industry for providing IT solutions is Blue Kaktus, and Gunish Jain, CEO,
sheds light upon the effectiveness of their technological innovations: “Our unique tools
enable brands and garment manufacturers to peak the market and react quickly to
changing fashion trends. Through our AI and machine learning-based technology, we
enable industries to become nimble and agile, thereby helping them to reduce their
inventory by 25-30 per cent as well as reduce cost by 7-10 per cent.

Sukumaran concludes by emphasising on the significance of technology, calling

organisations that leverage the opportunities presented through technological innovation
and transform them to create value-added services, “As the ones that will survive and
grow.” While Wicrant chimes in, “The brand owners, retailers need to be customer-centric,
the manufacturers need to be a lot more efficient and flexible, the entire apparel value
chain needs to be agile in today’s world.”

Take, for example, the procurement of raw materials in any business. The complex process
involves managing a large number of documents, suppliers and other elements. It is also
prone to inefficiencies creeping in and certain vital details being missed. Integrated
automation in raw material with AI / ML-enabled technology can dramatically transform
communication and collaboration by reducing and consolidating communication channels.
It can optimise stock management and vendor management. IoT-enabled integrated
automation and visibility of capacities in real-time will help sourcing of material in JIT (Just
in Time) methodology, thereby improving the overall bottom line.

The digitally-enabled automation platform will help the quick discovery of multiple aspects
like price, quantity, quality and lead time for any raw material across physical borders. There
are dozens of MSMEs that have started adopting these systems.

Moreover, this is only the beginning. With time, this automation will become more advanced
and a lot more capable, with the end goal of not replacing humans but rather empowering
them like the next tool in your toolbox.

Transforming MSMEs into “smart manufacturing” units is the need of the hour, as connected
devices and sensors offer granular visibility that can drive better decision-making
capabilities for businesses.

It is expected that Industry 4.0 will be fuelled with new-age business models that are driven
by real-time data analysed by AI and ML and feed into the digitally-enabled automated
process of MSMEs. It will result in production efficiency, lower time to market and most
importantly, better customer service.
 Emerging Technologies in Fashion Supply Chain
1) Indoor Robotic Transport

Indoor robotic transport solutions, which include autonomous guided vehicles (AGVs) and
autonomous mobile robots (AMRs), provide great opportunity for automation in the
warehouse. Autonomous forklifts have the capability to be used anywhere to move pallets
through a facility, using robotics technology to increase efficiency, achieve greater
reliability and enhance labor utilization.

2) Wearable Devices

Wearable technology such as glasses and ring scanners are being used commercially in
many warehouses around the world. Use cases range from glasses using augmented reality
to enhance equipment service calls to hands-free devices providing audible and visual
cues/directions to help workers perform picks faster and safer.
Smart glasses have become a standard feature with today’s workforce, supporting the
vision picking process in warehouse operations in most geographical regions. Augmented
reality in the warehouse is driving a more accurate, productive and efficient picking
process. The user-friendly and intuitive, hands-free picking process provides a positive
experience and high approval ratings among employees.

3) Blockchain Tools to handle Information

Supply chain visibility remains a top concern for most companies today, so it’s not surprising
that more businesses will be looking to integrate blockchain technology into their supply
chains. Blockchain technology can help make the entire supply chain more transparent to
minimize disruptions and improve customer service (Blockgeeks). Through blockchain, all
components of the supply chain can be integrated into a single platform.
Carriers, shipping lines, forwarders, and logistics providers can use the same platform to
update companies and customers of the product journey. Invoicing and payments can be
made from the same system, too. This integration streamlines the entire supply chain and
helps supply chain managers to identify issues before they occur.
Blockchain also provides unparalleled protection for information, as the technology’s
decentralization methodology protects data from being edited. All users must agree to
updates or edits to the data before they’re implemented.

4) Connecting with Millennials Through Your PLM

Millennials today find purpose in assisting others. They tend to have a progressive attitude
on life, are trend-spotters, and follow social media news. As a result, they appreciate firms
whose principles coincide with their own.
Millennials want to know where and how a thing was manufactured, thus they expect this
information.
Additionally, they take note of how supply chain workers are handled. Through their Product
Lifecycle Management (PLM) and supply chain systems, apparel firms may fulfil this need for
equity and transparency among millennials.

5) Asset Tracking & Monitoring

More supply chain managers are beginning to understand that nothing short of end-to-end
supply chain visibility – from the supplier, through the distribution center, to the end
destination – will provide the agility needed to deal with unforeseen risks and unexpected
disruptions. One of the most common examples of this greater visibility is shipment tracking.
However, while this is the most consumer-facing piece of the puzzle, it is just one aspect of
achieving complete visibility.
The proprietary MySupplyChain portal from DHL Supply Chain brings together data from
various platforms to provide visibility and highlight the data needed to reach objectives and
achieve a complete view of the supply chain. The platform allows customers access to
track-and-trace data, inventory, operational performance and reporting, business analytics,
customer service and more to identify insights that drive continuous improvement and
competitive advantage.
Automation and digital technology represent the next frontier in supply chain optimization.

6) Enhancing Capabilities with the Cloud

As the Baby Boomer generation gradually ages out of the workforce; losing institutional
knowledge becomes a growing concern. Cloud systems enable employees to document and
share critical information, preserving invaluable expertise held by key staff and reducing the
effects of turnover on the enterprise.
But there are numerous other benefits of Cloud services for apparel, including:
Improved collaboration with suppliers
Condensed administrative functions
Reduced goods costs
Increased profitability
Cloud-based technology solutions trim infrastructure outlays and can equip smaller
organizations with the capabilities of larger enterprises at a significant cost savings. With
fewer resources consumed by time-intensive tasks, improved workflow will add value to your
operations across the board.

7) RFID technology

The logistics processes where RFID technology is most frequently used in the fashion supply
chain are shipping, tracking of raw materials, semi-finished components, and finished
garments, collection of finished goods, handling procedures, tracking containers, tracking of
products from factory to store, receiving operations, monitoring, and merchandise sorting.
Tag reading typically takes place at distribution centers or storefronts, with the tagging
operation taking place at some point throughout the production process.
Interoperability issues have been cited as the biggest obstacle to the adoption of RFID. The
biggest drawback cited by the businesses is the price of the technology.

8)Transparency in Supply Chain

A number of transformative technologies are helping to reshape supply chain processes and
streamline raw material origin. initiatives across the industry where brands, and even big
tech companies have harnessed either Artificial Intelligence (AI), which can be used to
enhance the accessibility of data, IoT data from machinery, or blockchain, a digital record-
keeping technology which can track chain of custody.
These technological advancements help fashion firms increase the efficiency of their supply
chain procedures. They do, however, assist the business to be open about their practices.
When it comes to attracting younger customers, this is very crucial. Customers from
Generation Z and millennials value ethical actions more than earlier generations. 54% of
millennials and 50% of generation Z buyers are willing to spend extra money on sustainable
and ethical products.

9) Smart Pricing

Smart pricing is a strategy where you set dynamic pricing rules based on changing market
conditions. It involves monitoring competitor prices and consistently offer competitive prices
while maintaining profit margins. This is why industry experts have had to move forward from
the age-old pricing models. They have to probe deeper into the prospective customers’
minds to explore what exactly would persuade them to buy a product.
The brand maintains a lean supply chain which eventually means lower costs. Supply chain
efficiency along with speed and agility contribute towards streamlined retail processes and
impact pricing. This can have a positive trickle-down effect and eventually enables
businesses to pass on the savings to its shoppers in the form of lower, competitive prices.
To keep prices down, these organizations collect and analyze data to ensure that they
produce clothes that most people want to buy. Companies can make better forecasts of
which fashions will sell by combining client purchasing data with artificial intelligence and
machine learning. They can also use low-cost final purchase orders to maintain pricing low
enough that consumers will purchase on impulse and spend more frequently as a result.
 Conclusion
Fashion brands all over the world are using technology to provide clear and transparent
supply chain reports. This is advantageous to both the company and the ethical buyer.
The fashion industry is able to upgrade its supply chains and stay consistent with ever-
increasing consumer expectations by utilizing technology in new and innovative ways. More
effective, transparent, and ethical supply chains are expected in the coming years than ever
before.

Customers in the apparel and home furnishings industries now have more brand and
product options than at any time in history. To capitalize on tastes and trends, brands must
be able to supply the right things at the right moment. Both the consumer experience as
well as the bottom line are affected by the supply chain. Hence, these are a few ways in
which the technology will impact the supply chain management in the upcoming fashion
industry, in a positive direction. Also, thereby avoiding some basic supply chain problems.

The industry is concerned about fashion standardization, and some claim that modern
digital systems limit the industry’s ability to innovate and create unique designs.
However, rather than avoiding technology, the industry must be in charge of it. The RCA
aspires to prepare the next generation of fashion designers to adopt new technologies and
recognize the possibilities for innovation in the system and process design.

Fashion is in desperate need of a technological makeover, and unless it embraces

innovation with great enthusiasm, its rapidly expanding supply chain will suffer. Smaller
specialist enterprises that look at fashion with new perspectives and new views may be
inspired to reform their individual supply chains if the larger industry looks at them.
 References & Citation
https://fashinza.com/textile/tips-for-fashion-brands/how-technology-will-impose-
better-supply-chain-management-in-the-fashion-
industry/#:~:text=The%20Blockchain%2D,sector%20with%20lower%20customer%20cos
ts.

https://www.cgsinc.com/blog/7-technology-trends-transforming-fashion-supply-
chain-process

https://techpacker.com/blog/design/top-9-fashion-technology-trends/

https://www.qimaone.com/resource-hub/top-3-technology-trends

https://www.cbinsights.com/research/fashion-tech-future-trends/