Since the world realized that there may come a moment when we all have to stay at home, there has been no disputing that every business has experienced huge adaptations and revisions. Fashion is no exception, and it has evolved dramatically since the epidemic. As a result, all non-essential companies were compelled to close in order to slow the spread of the epidemic. With all shopping malls, streets, and retail stores shuttered globally, the circumstance caused fashion businesses to go out of business for months. This resulted in a massive increase in online sales as more and more individuals began to use eCommerce during the quarantine. That being said, this made the apparel supply chain more complex which led to the need of artificial intelligence in the warehouse and supply chain management in the fashion industry.
On the contrary, this year, the value of the fashion sector is forecast to be $1.7 trillion. According to figures for the global fashion business, in 2022, the sector might grow by between 103% and 108% from its size in 2019. No wonder why the trend in the fashion industry is changing too. Companies are being forced to create year-round, multi-seasonal collections due to the need to make fashion more sustainable as well as shifts in consumer preferences brought on by the pandemic. Contrary to the rapid fashion trend, more and more shoppers are choosing timeless pieces that will last for multiple seasons. Additionally, they are choosing their outfits more deliberately, with capsule wardrobes being one well-known example. The supply chain in the fashion industry is also affected and accelerated massively!
Key Takeaways:
- What are the alterations in Fashion Industry Supply Chain?
- What is an AI-powered supply chain?
- How is AI revolutionizing the fashion supply chain?
- How AI facilitates advantages for businesses?
- Conclusion
Alteration in Fashion Industry Supply Chain
In order to remain competitive in this evolving industry, a significant change in the supply chain is essential. The fashion industry is always growing, and both brands and businesses affiliated with it must keep up with the newest technological breakthroughs in order to keep up with the ever-increasing demand. By 2025, more than half of the world's largest corporations plan to use technology breakthroughs such as advanced analytics, artificial intelligence, and the Internet of Things (IoT) in their supply chain operations. The Importance of AI-based Solutions in the Fashion Supply Chain. Artificial intelligence has played a critical role in transforming the way the fashion supply chain operates today. One of the significant developments brought about by the use of AI in the fashion business is the ability of organizations to handle massive volumes of data.
AI-Powered Supply Chain
AI-powered supply chains are undoubtedly the future of manufacturing and are regarded as the driving element in keeping up with the swings and unpredictability of the outside world. However, it goes without saying that AI and data science have the ability to improve the fashion supply chain in a variety of ways, beginning with order management and ending with last-mile order fulfillment. This is accomplished through the deployment of interactive and user-friendly mobile interfaces; as a result, businesses in the sector may significantly improve browsing and purchasing experiences for their consumers. In the supply chain, AI offers a wide range of possible applications. Chatbots may handle purchase requests, intelligent warehouses could manage inventory, and self-driving cars could help with deliveries
According to research, the majority of organizations that used AI observed an increase in sales: respondents typically identify expenditure analytics and sales and demand forecasting as supply-chain management use cases that result in revenue.
AI Revolutionizing the Fashion Supply Chain
When designing rapid fashion trends in the past, the colors, patterns, materials, and cuts seen on the runways in Paris, the streets in Berlin, the red carpet in Hollywood, and the dive pubs in Brooklyn must be considered. It was vulnerable to the Baader-Meinhof Phenomenon, which describes how a buyer's brain shows confirmation bias and selective attention. Computers today are far more adept at obtaining and organizing data. Brands are understanding the need of using the power and promise of the Internet of Things and Artificial Intelligence to evaluate real-time data from a variety of streams. In addition, such insights will be translated into automated decision-making for demand planning
Natural Language Processing and deep learning are used across community platforms to forecast the next viral trend and maximize dissemination. When it comes to the effectiveness of the AI-enabled supply chain, it is reported to be more than 65% successful in limiting risks and lowering total costs.
AI facilitates a range of advantages to businesses:
- Smart Analytics -
Smart analytics systems can provide important insights from past data, such as surfing history, previous purchases, and wish list items. This enables shops to provide customized product alternatives, price offers, and seasonal details to their clients, enhancing their entire experience. Today's issue is how organizations may exploit the vast volumes of data generated in their supply chain networks. In 2022, a typical supply chain accessed 70 times more data than it did merely five years before. However, only around 25% of this data was analyzed. Furthermore, whereas 20% of all supply chain data is organized and easily analyzed, the other 80% is unstructured or black data. Organizations are seeking the best supply chain orchestration solutions for evaluating dark data today.
- Routing Planning -
The availability of sophisticated route optimization software aids in the planning of day-to-day deliveries, assigning duties exactly to riders, and ensuring that deliveries are swift and punctual. This is done to guarantee complete client pleasure. However, there are some depressing facts associated with this. Poor weather is responsible for around 22% of automobile accidents. Or that the typical American driver idles their vehicle for more than 16 minutes every day, squandering 3.8 million gallons of gasoline. The shortest path between two points is not always the fastest, safest, or most fuel-efficient. Poor weather forecasts, traffic bottlenecks, driver idle time, and no-entry time windows are just a few of the factors to consider while routing.
Route planning software may be quite useful for creating routes that take these concerns into account. Routing and scheduling software with AI assistance may enhance last-mile deliveries by assigning work effectively, saving your fleet important time. It enables delivery organizations to collect Electronic Proof of Delivery (ePoD) information such as a picture, signature, or timestamp, as well as customer comments.
- Fleet Tracking Solutions -
It goes without saying that technology has advanced significantly, and customers will be able to follow their goods at every stage with the aid of supply chain tracking technologies. The delivery fleet's lack of real-time visibility makes tracking operations challenging. The product will be monitored from the time the order is placed and will be covered during shipment and transit until it is delivered. The benefits of delivery driver routing software listed below will assist you in improving fleet management and productivity. Automated route planning, real-time tracking, route planner applications, dynamic rerouting, intelligent allocations, and the previously mentioned ePOD are all examples.
Conclusion
Digitization has emerged as one of the most important business requirements for retailers today. It has acquired enormous popularity since the commencement of the COVID-19 epidemic and has undoubtedly changed the way people purchase fashion items. If you work in the fashion business, you must ensure the integration of optimal supply chain consulting solutions. H&M, the Swedish fashion conglomerate, employs around 200 data scientists to analyze and anticipate trends. To identify fashion trends, its AI systems collect data from blogs and search engines. This information is used to determine what people buy, when they buy it, and where it should be placed in the store. Zara, a Spanish clothes shop, has employed artificial intelligence to further its goals, as has its competitor.
The organization employs AI robots in a number of ways, including retrieving requested orders for customers via the company's Buy Online, Pick-Up in Store (BOPIS), or Click and Collect choices. AI tracks online client behavior trends to deliver a more personalized purchasing experience. Machine learning is used to collect data on consumer preferences, purchase trends, and frequency. Using its predictive technology, the corporation may then offer comparable items to clients by predicting their needs and desires. It detects even when online shoppers are more open to testing a new brand. AWL being one of the leading 3PL/4PL logistics solutions provider it can enable you to get your hands on the best supply chain solutions based on artificial intelligence. We place a strong focus on adapting our existing supply chain procedures in response to technology advances in the area.
As a consequence, AWL India assures that the industry's retailers and enterprises are on top of their online selling and Omni channel development initiatives. AI may be used in this manner to push bloated inventory and establish trends, as well as introduce consumers to new brands and designs.
Depreet Singh
Warehouse Manager