In this context, European Union, and other global authorities, are preparing to introduce a so-called digital product passport (DPP). Therefore, by 2030, all textiles sold in the EU should be recyclable and manufactured in compliance with environmental rules and social rights. The European Union 3 wants to fight waste and overproduction. Ultimately, this should help to prevent the destruction of unsold clothing. This allows for better decision-making about production and supply-only producing and supplying what you need. More specifically, real-time stock visibility data from stores shared with supply chain partners enable better insights into what is selling in stores. Having better insights about inventory status and location enables eliminating the "guess inventory" and producing and supplying only what you need. Improving your ability to manage your inventory in real-time is a must if you're going to keep up with the demands of today's consumer market. They include e.g., processors, mills, factories, 3PLs, distribution centers, warehouses, marketplaces, and retail stores. Creating real-time insights and eliminating the silosįashion supply chains are still complex and often siloed. With these crucial insights, they can question if they need that additional safety stock to achieve their overall sales targets. In addition, real-time inventory data can help retailers learn more about their business and consumer needs and wants. For example, real-time inventory data could better predict demand and reduce excess stock. But retailers can improve visibility into their supply chains to enhance their planning capabilities and meet legal requirements. The cost of storing aged inventory and discounting is high. Unfortunately, this often leads to over-production and waste since retailers want to avoid the risk of stock-outs and disappointing the consumer.Įven with industry-leading planning tools and processes, guess inventory within the apparel supply chain is challenging to eliminate. In this model, the production and supply chain departments estimate how much each item is needed for their next sale. There is no scientific definition of "guess inventory," but specifically in the fashion industry, this is referred to the number of goods produced based on expected demand and the merchandise retailers keep on hand based on the hope they'll sell it, commonly known as safety stock.
As a result, consumer awareness and communication are improving, standardizing bodies aim to bring clarity and guidance, brands have begun experimenting with new materials, and suppliers are improving their production practices.
Data inventory definition full#
The warehouses of industry and trade are also full of surplus new goods and returns.Īt the same time, more and more consumers want to know where garments and accessories come from and under what conditions they were produced. It's not just consumers' wardrobes that are overflowing. Still, the desire to fill one's closet with new styles is unbroken for most people. At the same time, there has been a 40% drop in the time clothing is actually worn. According to the Ellen MacArthur Foundation, the last 15 years have seen a doubling in production. Did you know how many fashion products are produced every year? Recent studies say that more than 150 billion garments are manufactured worldwide yearly.
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