**London**: A recent Avery Dennison report indicates that a quarter of U.S. and U.K. fashion retailers struggle with item-level visibility, raising concerns over operational efficiency and sustainability. The survey highlighted significant gaps and the need for advanced technologies like RFID to improve the situation.
A recently released report from Avery Dennison (AD) highlights significant gaps in item-level visibility among U.S. and U.K. fashion retailers, raising potential concerns for operational efficiency and sustainability objectives. The report, titled “Boosting Margins – The Power of Enhanced Fashion Supply Chain Visibility,” is based on a survey involving 250 senior supply chain leaders in the fashion industry across both countries.
The findings show that a quarter of the surveyed retailers lack complete visibility at the item level in their factories and distribution centres. This limited visibility is often coupled with operational issues, as half of the respondents reported having visibility into most items, while 30% described their supply chains as highly problematic, marked by regular disruptions. Only 22% categorised their operations as efficient and responsive.
Delia Glover, vice president of product, innovation, and solutions development at Avery Dennison, commented on the report, stating that many fashion brands are “operating in the dark,” which exposes them to inefficiencies, waste, shipping delays, lost sales, and shrinkage. Glover noted, “Trying to operate without clear visibility into your supply chain — essentially operating in a supply chain fog — makes it impossible to track the movement of inventory and deploy data analytics to reduce waste.”
In terms of solutions, the survey indicated that 65% of respondents identified the need for enhanced collaboration among suppliers to improve data sharing and visibility during the sourcing and production processes. An equal percentage expressed that investment in advanced visibility technologies, such as RFID tagging, would significantly enhance supply chain operations—this belief increased to 72% among vice presidents, who were the highest-ranking executives surveyed.
“Technologies such as RFID for item tracking help companies create a reliable data foundation,” Glover said, emphasising the necessity of such technologies for keeping pace with rapidly evolving sustainability regulations and improving overall efficiency. However, many fashion brands and retailers are currently facing difficulties and considerable costs associated with providing the level of transparency that is increasingly seen as essential.
The report further revealed that visibility levels differ by company size. A notable 61% of smaller firms indicated they possess full visibility, contrasted with only 44% of larger companies feeling the same. Medium-sized retailers, particularly those with revenues between $250 million and $499 million, reported the greatest challenges, with only one in ten achieving full visibility. The survey noted that just six out of the 250 companies reported having no visibility whatsoever.
When asked about the challenges stemming from a lack of item-level visibility, 30% of decision-makers highlighted last-minute changes to garment labelling, a figure that rose to 42% among businesses with revenues between $500 million and $999.99 million. Other challenges included difficulty in real-time identification of supply chain disruptions and reduced agility in redirecting orders to alternate suppliers or locations.
Glover stresses that enhancing transparency and visibility within supply chains transcends merely reducing waste or profit loss. She stated, “It’s also about building stronger relationships with partners and earning the trust of consumers.” By integrating innovative hardware, RFID labels, and software, brands can navigate the complexities of the supply chain landscape, setting themselves up for future success.
Source: Noah Wire Services
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