1. The Struggle Is Real: Challenges Of Traditional Inventory Management
Conventional inventory management in fashion is fraught with challenges. Typically, brands predict demand and produce in bulk, often partnering with a single supplier to create large quantities of a collection. The industry standard for minimum order quantities (MOQ) can range from 1,000 to 2,500 items, leading to a significant commitment of resources upfront (source: What is MOQ? Everything you need to know about it | Zega Apparel). This inflexible approach can result in excessive inventory, as the time-consuming production process may not align with rapidly changing consumer trends. By the time a collection is complete, the fashion zeitgeist may have shifted, leaving brands with a surplus of unsellable stock. This issue of overproduction is not exclusive to smaller players; even prominent brands such as ASOS and GAP face the dilemma of managing excess inventory, which is a costly and unsustainable burden in the fast-paced retail environment (source: 7 Big Brands Battling Excess Inventory - including GAP, Kohl’s and Funko Pop - and why this matters to retailers).
Fashion waste is a big issue to the environment.
2. On-demand Manufacturing: The Solution For A Modern Fashion World
The solution to fashion inventory is on-demand manufacturing. This concept of manufacturing is probably no longer alien to you if you have read our blogs on on-demand manufacturing, but when it comes to managing fashion inventory, how does it help?
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Minimizing deadstock: Produce only what sells
Deadstock refers to unsold inventory that accumulates over time due to inaccurate forecasting, changing trends, or sizing issues. This stock becomes difficult to sell and often ends up discounted or discarded, leading to wasted resources and financial losses. By producing garments based on actual orders, on-demand manufacturing eliminates the risk of deadstock. Brands only produce what has already been sold, minimizing waste and maximizing profitability.
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Embrace agility and meet market demands
On-demand production typically involves smaller batches of garments compared to traditional bulk manufacturing. This allows brands to:
- Test New Designs: They can experiment with a limited run of a new design to gauge customer reaction before committing to a larger production.
- Respond to Trends: If a particular style suddenly becomes popular, brands can quickly adjust production plans to meet the demand.
- Faster Turnaround Times: With smaller batches and streamlined processes, on-demand manufacturing often boasts faster turnaround times. This allows brands to get new designs to market quicker, capitalizing on current trends and capturing customer interest before it fades.
3. Benefits Beyond Efficiency: The Ripple Effect of On-Demand Inventory Management
Enhanced Sustainability: Embracing on-demand manufacturing allows fashion brands to significantly reduce waste by only creating garments that have a guaranteed buyer. This not only fulfills environmental responsibilities but also aligns with the increasing consumer demand for sustainable practices within the fashion industry. It's a strategic move that underscores a brand's commitment to the planet while still catering to style.
Consistent Customer Satisfaction: The modern shopper expects availability and immediacy. On-demand manufacturing directly addresses this by ensuring popular items are never missing from the inventory. This approach enables brands to respond to consumer purchases in real time, effectively eliminating the frustration of stockouts and fostering brand loyalty through consistent product availability and faster fulfillment.
Dedicated Resources for Core Innovation: Traditional inventory practices can burden a brand with overstock and the complexities of demand forecasting. By adopting on-demand manufacturing, fashion brands can reallocate their precious resources—time, budget, and creative energy—away from managing surplus inventory towards fostering innovation and design. This strategic resource distribution allows brands to focus on their core purpose: creating fashion that inspires and leads trends, rather than simply managing it.
4. Partner with Inflow: Your On-Demand Manufacturing Experts in Vietnam
Usually, for fashion brands to be able to produce in smaller quantities, they will have to find smaller scale manufacturers with fewer production lines. While this can guarantee that fashion brands benefit from a lower MOQ, which is suitable for the on-demand manufacturing approach, it can be a challenge for them when they want to upscale. Specifically, if a design suddenly becomes loved by the customers and they come in with many orders, how can fashion brands deal with that large order number when the manufacturer they work with can only produce a certain amount? This is why it is highly recommended for fashion brands to collaborate with multiple manufacturers at the same time so that when a design blows up, they can easily upscale.
But, how to deal with 10 manufacturers simultaneously, you deal with one and it's already a hassle. Well, Inflow's got you covered. With over 150+ verified Vietnamese manufacturers, Inflow's network of suppliers will definitely come in handy when your brand decides to go for the on-demand model. When you collaborate with us, we will make sure our manufacturers are used effectively so you can upscale easily without compromising time.
Inflow's wide supplier network will come in handy for the on-demand manufacturing model.
Read more about Inflow's network of suppliers: Exploring Inflow's Diverse Supplier Network: Revolutionizing Fashion Brand Partnerships
Or, explore some top names in our network: Our Manufacturers - Inflow Fashion Supply Chain Solutions
Now the bigger question is, you got the manufacturers ready, how do you manage them? How can you know which manufacturer is producing what design? Inflow offers a platform that comprises all the details you need to know about your on-going orders. You can track whether the design you send out is now in sample making phase, bulk producing phase or is already being delivered to you.
Inflow's dashboard helps manage the production process smoothly.
So, choose Inflow for a smooth transition to on-demand manufacturing and effective inventory management. Sign up today!
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