The response from textile sourcing to the omnichannel model.

Retail and the textile labels are transitioning to a supply chain that can efficiently react to the omnichannel model. New and exciting challenges are being discovered along the way.

The omnichannel feature is an important source of innovation in the textile supply chain, but establishing the model requires multiple changes that are forcing textile companies to rethink the way they design, build, implement and manage their supply process, as well as their relationship with key providers.

The transition has started and the goal of each textile company is to reach a successful outcome. The strategy has already given rise to a series of innovative approaches that benefit the companies’ results. They include two areas of fundamental change. One of them relates to operational activities, such as inventory management, shifts in logistics that make the company more flexible and agile. The second area relates to the redefinition of relationships with the customers and the way they shop.

The omnichannel model and textile sourcing.

The current business network can be divided in a number of main channels, such as stores, franchises, department stores, e-commerce, new points-of-sales, etc. As each sales channel generates its own logistics and presents new challenges, the shift towards the omnichannel model impacts other processes and system management directly, especially the place of origin and production cycles of the product.

The shift towards an omnichannel model is a direct result of the strategy of each textile company to be a consumer-centered brand. But be careful, this may be an effective way for the streamlining processes to divert attention to other areas, such as marketing and customer service, without noticing that these changes are transcendentally connected to the relationship with suppliers and the planning of productions.

The customer demands, textile supply responds.

The shifting customer demands redefine traditional practices in terms of purchase and how clients relate to labels, especially as a result of the spectacular growth of digitalization. Customers expect the purchasing process to satisfy their needs of service, to be faster because of the increased dynamics of contemporary life, and many of them are unable or unwilling to wait for the garment or accessory they want. When the speed variable is tied to the product, the supply must provide an adequate response.

For that reason, this strategy within the textile sector successfully improves the brand image. Currently, it is normal for most fashion labels to update their products more frequently (up to four times per season) with the purpose of meeting consumer demands. The supply chain throughout the company’s channels must be able to support the inventory restocking systems for the different combinations of sales –both online and off-line—as well as to provide support to achieve full customer satisfaction with the purchase process.

Bottom line.

The omnichannel model is a strategy that normally comes from within the organization, with support from senior management, with a team specialized in omnichannel that is involved with and committed to all departments and with close and direct contact with the office of sourcing/purchase in origin.

This organization-wide approach is essential to the development of an overall view of the different markets, a key requirement for the international textile brands that want to remain relevant, respond to changes in consumer demand and obtain an efficient reply from the supply chain.

From the position of supply in origin, we must provide a response to each and every one of these needs.

We can certainly do it!

Article also posted in my Opinion Column of América Retail