A recent survey involving 250 senior retail executives from the US and UK has uncovered significant shortcomings in the fashion supply chain, particularly in terms of visibility, efficiency, and compliance preparedness. The findings, detailed in the ‘Boosting Margins’ whitepaper by Avery Dennison, paint a concerning picture for the industry.
Only 22% of respondents described their supply chains as “efficient and responsive,” while 30% labeled theirs as “highly problematic with frequent disruptions.” This perspective was especially prevalent among C-suite executives, with 41% identifying significant issues in their operations.
Visibility within the supply chain remains a pressing challenge. A mere 24% of brands reported full item-level visibility in their factories and distribution centers, with half indicating that they only have partial visibility. Alarmingly, one in four fashion leaders admitted to having little or no insight into their supply chains.
Technology adoption appears to be lagging, with 42% of UK respondents and 38% of US respondents still relying on spreadsheets for inventory management. Furthermore, 20% of all executives reported continuing to use manual data entry, highlighting a reluctance to embrace more efficient technological solutions.
The survey identified raw material traceability and provenance as the top challenge, cited by 24% of participants, followed closely by labor shortages (22%), customs and compliance issues (20%), and inventory loss (19%). Notably, UK brands expressed greater concern over labor shortages, while their US counterparts emphasized the importance of raw material traceability.
The lack of visibility translates into tangible business challenges. Approximately 30% of respondents struggle with last-minute garment labeling changes, and 25% face compliance risks due to inadequate traceability. In the US, 33% reported difficulties in identifying disruptions in real-time, compared to just 20% in the UK.
Despite these setbacks, 65% of respondents believe that enhanced collaboration with suppliers and investment in visibility technologies—such as RFID tags, blockchain, and IoT sensors—could substantially boost efficiency. However, readiness for upcoming regulatory changes remains low, with nearly half of the surveyed fashion retailers unprepared for the EU’s Digital Product Passport regulations. Only 19% of US firms and 14% of UK firms felt “very well prepared” for these impending requirements.
