McKinsey & Co has outlined three essentials that can make or break apparel supply chains in 2025.

McKinsey & Co says over 2025, apparel brands that are deemed successful will be ones that remain in tune with their sourcing footprint and tweaking their supply chains as needed. Brands and suppliers that have a “partnership” model in place as opposed to a transactional relationship will also succeed as well as ones whose vision around sustainability aligns with that of their stakeholders.

Just Style’s industry experts share their views on McKinsey & Co’s suggestions for what makes a successful supply chain in 2025.

In 2025, successful supply chains will be the ones that…

1. Regularly assess and optimise sourcing footprint

• Regularly perform footprint assessments to identify priority regions for reconfiguration based on manufacturing costs and capabilities, considering potential supply chain disruptions that may impact both (e.g. conflicts, climate change).

• Leverage analytics to examine cost breakdowns, improve unit costs and conceive more competitive sourcing processes with both existing and new vendors. This may require detailed supplier information to model costs based on a range of inputs and trade agreements.

• Assess cost competitiveness on a net margin basis when making sourcing decisions, taking into account not just input costs but final margin and cash benefits from faster speed-to-market and increased supply chain flexibility.

• Develop an understanding of supply chain disruptions across the footprint, actively managing and minimising the implications on their operations, such as cost and speed-to-market.

Steve Lamar, president and CEO of the American Apparel and Footwear Association comments: “Knowledge and partnership will be key. Companies need to foster greater collaboration with their supply chain partners, who will be responsible for managing new diligence and responsible and diverse sourcing programmes.”

2. Develop strategic relationships with manufacturers and suppliers

• Rethink the approach to manufacturers and suppliers, with an emphasis on developing long-term strategic partnerships to increase the efficiency and resilience of supply chains. Historically, fashion brands and suppliers have been more cautious in making joint investments compared to other industries, given the highly competitive nature of the apparel market. However, the increased disruption and volatility in brands’ sourcing footprints requires more effective and closer collaboration to ensure efficient operations.

Rick Horwitch, chief of sustainability and supply chain strategy, Bureau Veritas Consumer Products Services notes: “To be successful in 2025 (and beyond) the time for incremental change, and transactional thinking, is over. The moment for transformative action is now. Sustainability, transparency and innovative thinking are no longer a choice – they are a collective responsibility and a significant business opportunity. We must all leap forward with courage, innovation, and a commitment to creating a more sustainable, resilient, and economically viable future.”

Adopting digital solutions to enable efficiency and collaboration is also important. To unlock the full value of these tools, fashion brands and manufacturers will need to not only embrace digital tools across their value chain, but also prioritise process redesign, data quality enhancement and the integration of planning systems to provide visibility for all parties across the value chain.

Bob Antoshak, partner at Gherzi Textil Organisation, says: “In 2025, the apparel industry’s winners will likely be those who have successfully combined digital transformation, agile and diversified supply chains, and a proactive approach to sustainability.  

“Firms that can efficiently adopt new technologies, ensure transparency and traceability in sourcing and demonstrate their commitment to environmental and social governance will stand out. Those unable to adapt to new consumer expectations and regulatory landscapes may struggle to remain competitive.”

3. Shape trade flows with industry stakeholders

• Proactively shape the future of apparel and textile trade flows by engaging manufacturers, regulators and sustainability bodies to align on industry targets and co-invest in decarbonisation projects at scale.

• Work closely with manufacturers and upstream suppliers to achieve sustainability goals and reduce apparel emissions. This remains a competitive imperative for suppliers and fashion brands are unable to tackle these issues alone.

• Adopt a collaborative planning process to align on short- and long-term business objectives, mutual targets and strategic plans, which can formalise industry affiliations and arrangements. Multiple brands, suppliers and regulators can also partner to launch large-scale sourcing excellence programmes.

Stanley Szeto, CEO of Lever Style comments: “Ultimately, the brands that succeed in 2025 will be those that adapt quickly and build operational resilience. This involves prioritising diversified sourcing options, leveraging innovative high-mix, low-volume production capabilities, and adopting streamlined, cost-efficient models. By aligning with the right partners, brands can gain a competitive edge —not only in navigating tariffs and economic uncertainties but also in reducing time-to-market and minimising waste.  This is a moment of transformation for the industry. Brands that align with agile and expert partners today will set the standards for success in 2025 and beyond.”