The clothing and footwear industry has managed
to slash its delivery lead times by almost half since 2020.
Digitisation, nearshoring and reducing the number of
options in stock have helped clothing, footwear and accessories brands cut lead
times by almost half in the last two years, according to industry experts.
Figures from Unleashed’s Product
Lead Time Index show the sector managed to slash its
delivery lead times – from the purchase of an order to when it hits the
warehouse – by 49.86% since the start of the pandemic in March 2020.
“Apparel brands have achieved shorter lead times through a number of ways,
like digitisation (e.g. virtual sampling) and nearshoring, as well
as reducing the number of options they stock and shifting towards a
demand-driven buying process,” Chloe Collins, head of apparel for GlobalData
tells Just Style exclusively.
“Rapidly changing trends as a result of Covid led to heavy markdowns, so
brands are now trying to reduce risk by moving away from heavy initial buys on
stock they don’t know will sell. Now with the cost-of-living crisis, brands
will continue acting cautiously and being more careful with their orders as
they assess what impact inflation has on the industry.”
Other industries, including food (56.14%), electronics and
telecommunications (54.9%), health, medical supplies and equipment (53.71%),
and office equipment and supplies (51.73%), also managed to cut their lead
times substantially.
Many
manufacturers and logistics firms stepped up their digital strategies in
response to the crisis.
Stephen Jones, head of UK & EMEA at Unleashed, said: “Global supply
chains are complex, and while the market has been more uncertain than usual,
our data suggests that suppliers are working hard to build resilience. In fact,
for many, the crises have only strengthened their resolve. Given how much lead
times have dropped in some sub-sectors, their efforts are clearly paying off.
“Keeping a tight rein on inventory is essential at any time but particularly
during periods of disruption. When product lead times are fluctuating, the
right technology can quickly show you the actual vs expected lead times which
allows you to manage customer expectations, or look for alternative suppliers
who can deliver faster.”
Jordan Westley, ecommerce and order management system (OMS) expert at Mintsoft, added: “As well as keeping a
tight rein on inventory, it’s just as important to ensure that warehouse
operatives are picking, packing, and shipping orders as accurately and
efficiently as possible.
“It’s impossible to express the importance of fulfilment and the overall
effect it has on customer experience. With such a large shift to online
shopping because of the pandemic, customer expectation has exploded and this is
where keeping these delivery lead time figures to a minimum is key. Customers
take for granted the effort that goes into fulfilling an order and
unfortunately, is only really noticed when their delivery is delayed or
contains the wrong item(s).”
By Just Style