In 2012, Risks in Apparel Supply Chain Become More Complex

The complex range of risks and variables likely to face the international apparel supply chain in 2012 are detailed in a new report from just-style, providing buyers and suppliers with an important tool to help evaluate the potential impact on their business.

The report, "Risk analysis of the apparel supply chain in 2012," offers a detailed analysis of how cultural, linguistic, climatic, political and economic factors impact on global sourcing. It was compiled in response to a "perfect storm" of cost elements that confronted the supply chain in late 2010 and early 2011, including record cotton prices, large-scale wage increases and soaring shipping costs.

Using six supply chain cost models to illustrate the many variables, the report looks at how various factors will impact on typical sourcing decisions. These variables may be created by the sourcing country chosen, the decision on whether to use local materials, and then the effects of cost increases.

As part of the analysis, regions are given a risk assessment score based on a variety of factors such as ease of doing business, political stability and the prevalence of corruption. Further variables and considerations are also considered, especially the balancing of cost, time and risk, and the increasingly important area of CSR (corporate social responsibility) and the environment, as well as supply chain finance.

Other factors impacting sourcing and supply chain decisions are also covered. These include time factors and the demands of "fast fashion," which have helped Spanish apparel retailer Zara to bring a product to market in as little as eight weeks.

The result is an overall picture of a complex, fast-changing apparel supply chain subject to a large number of risk factors and variables - making it ever more important for apparel retailers and sourcing companies to maintain close scrutiny of the supply chain, all the way from research and design to delivery of the final garment.

just-style's "Risk analysis of the apparel supply chain in 2012" report is an essential resource for anyone involved in managing supply chains, sourcing apparel garments and materials, managing business costs in the apparel industry, and analysing and forecasting risk scenarios and trends in their business.
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