Reasons why manufacturers need apparel inventory management

I would say that apparel manufacturing is a challenge, especially in the current climate of ever-changing customer demands. In a very short time, manufacturers must knit fabric, cut and sew, dye or print, complete the finishing touches, and ship the finished product to retailers. This process needs constant updating to meet market quality standards. Managing this entire process is complex and requires extensive cooperation among employees and different companies.

The apparel market size is projected to increase to USD 918.71 billion by 2028 (Research and Markets), driven by the increasing penetration of social media, growth of e-commerce, and evolving customer needs. Major trends in the market include fast fashion, sustainable fashion, recycling, and upcycling.

However, alongside industry development and diverse customer needs, this places high pressure on designers and manufacturers. Managing the complexity of the production process, and operating costs (including rent and labor), is already challenging. Additionally, apparel inventory management is crucial for manufacturers. They must focus on how to speed up responses to rapidly changing customer needs, accurately diagnose problems throughout operations, and promptly resolve them to avoid disruptions to production schedules.

The reasons why manufacturers and designers need apparel inventory software?

1. Adaptable to fluctuation of trends

Due to the specific nature of this industry, customer needs are always fluctuating. They are not based on any pattern or matrix but are determined by current trends in the market. That is why forecasting customer demand for clothing and fashion is the most challenging aspect of the apparel industry, especially for businesses pursuing fast fashion. Demand and designs are constantly changing, so for manufacturers and designers in this field, inventory management is crucial for their profit margins. It can be very risky to stock too much inventory, only to find that customers change their preferences or follow new trends, making all the stocked inventory obsolete.

The same challenges apply to inventory shortages. It is always difficult to predict fashion trends and consumer choices. Many times, companies produce small batches of clothes for safety reasons, but when a TikTok influencer wears a particular outfit, it sells out instantly, necessitating more materials to meet customer demand.
For instance, in the Chinese apparel market, popularity fluctuates. Zhao Lusi, a famous actress, consistently sells out every e-commerce platform whenever she debuts a new outfit. Therefore, for manufacturers, especially in the fashion industry, having inventory management software can be a valuable tool to help them control and adapt to seasonal trends and market demands.

2. Reduced holding cost

Excess inventory in the apparel manufacturing industry costs a lot of money. Some valuable fabrics like silk, cashmere, or leopard fur have very high holding costs for manufacturers. If these fabrics are surplus in your warehouse, the fees you have to pay will be substantial. Not to mention the possibility that trends may forget these types of clothes made from such materials. Therefore, establishing safe quantities of these raw materials is important in apparel inventory management. This helps manufacturers control inventory and prevent overstocking.

Reorder points in apparel inventory software are a solution to reduce inventory costs for these expensive raw materials. Based on the initial setting of the reorder quantity, it will be automatically repurchased when the inventory falls below the reorder quantity. Moreover, this feature in apparel inventory software can prevent overstocking. This ensures that you only repurchase in case of stock outs instead of ordering out of control.

3. Data-driven insight

The outstanding advantage of using apparel inventory software is the successful control of your inventory operations. Clothing inventory software provides valuable data on customer purchasing behavior, sales trends, and product performance for specific product lines.
Nowadays, fast fashion is popular; some manufacturers pursue it while others do not. For those interested in sustainable fashion, successful inventory management is a must because a single wrong decision can lead to significant issues later, with customers refusing to buy the product. Therefore, tracking inventory and its data can assist manufacturers and designers in making the right decisions in manufacturing, selling, and developing product lines.

4. Optimized production

Overproduction and underproduction are two concerns for apparel manufacturers. No matter how good your product is, producing the right quantity is essential. However, this is not easy, especially when predicting and evaluating customers’ consumption habits is increasingly challenging. And we haven’t talked about influencer sentiment, seasonal trends or any changes from the market.

Of course, just one apparel inventory software cannot successfully optimize all production results. But we cannot deny the benefits of valuable data when your apparel inventory management efficiency brings when participating in the decision-making process. Such as the accuracy reports for Product trends, where you can look at and see the performance of your product list. By then, deciding on continually producing the certain product is more objectively and minimizing risks.

5. Risk minimization

In apparel inventory management, successful stock level management can prevent the risk of stockouts or excess inventory which can cost manufacturers a lot of money. Excess inventory after the season forces them to sell the products or write them off. On the other hand, lack of inventory can lead to significant loss of revenue for the company. As a manufacturer, if you do not have the products available for your customers, they will find another supplier and forget about you. This can lead to significant losses both immediately and in the future. Therefore, maintaining safety stock levels will somehow keep your business in the safe zone.

Apparel inventory software is a great assistant that helps bosses effectively manage their warehouses. By utilizing barcodes and RFID (Radio Frequency Identification) support, the software speeds up processes while maintaining accuracy for manufacturers. Apparel inventory management is complex due to the variety of colors, sizes, and numerous variations and SKUs.

6. Increasing customer satisfaction

You can achieve valuable things just by when your apparel inventory management is effective. It is about meeting customer needs. To achieve this, your product must first be available. Second, your product must keep up with trends, meaning the developed product must follow market trends and not be outdated.

The effectiveness of garment inventory software is undeniable. In the garment industry, especially for global companies with warehouses in different countries and regions, effective inventory management is becoming increasingly important. Inventory levels across different warehouses need to be accurately aligned and synchronized. Sometimes, when one of your warehouses is out of stock, in order to keep the customer’s order, you need to transfer the goods to the nearest warehouse. In these cases, a lot of errors will occur. To maintain the accuracy of the quantity between warehouses, using garment inventory software is the best way to flexibly adjust and edit the inventory quantity between different warehouses.

Furthermore, integrating with various sales channels simplifies apparel inventory management and the sales process. This integration improves accuracy by centralizing all information in real-time, which is especially critical in apparel inventory management due to the omni-channel nature of the industry.

What makes a successful apparel brand and prevents it from being purged by fast fashion?

Fast fashion has really brought a lot of problems to manufacturers and designers due to the short life cycle of clothes. With new clothes being released every day, many manufacturers basically don’t have enough time to update their designs, produce the right quantity, and end up turning over like a clown.

To address this challenge, there are three important strategies to follow:

• Create unique brand concepts and identify the right customer base for your brand.
• Focus on product sustainability and quality.
• Collaborate with third parties to reduce costs and enhance progress.