Why the denim retailers still need a better order & supply management system?

Denim giants like Levi Strauss & Co. have recently been out fishing for a better order management system. Did they find one? Well, even if they did, there are a trillion possibilities to say, “Yes, there are better order management systems available that they could’ve chosen!”

The overall fashion market, globally, is making over 3,000 billion dollars out of which only 2 percent is covered by denim retailers or industries. Let’s talk about what number of sales have the top companies roughly done…

1. Levi’s – USD 7.6 billion (market value) – USD 4.75 billion (sales)
2. DIESEL – USD 4.4 billion (market value) – USD 2.1 billion (sales)
3. G-Star Raw – USD 1.65 billion (market value) – USD 810 million (sales)
4. Pepe Jeans – USD 1.1 billion (market value) – USD 575 million (sales)
5. True Religion – USD 925 million (market value) – USD 470 million (sales)

Let’s take a sharp turn towards the ones that are on the top of the list when it comes to supplying fabric to the denim retailers, and how the supply chain is managed here…

How is the denim fabric market expected to be an integral part of the entire supply chain and deliver dynamic progression until 2028 and beyond?

“The global consumption of denim fabric increases from 5493.7 million meters in 2012 to 6618.1 million meters in 2016, at a CAGR (compound annual growth rate) of more than 4.77%. In 2016, the global denim fabric market is led by China, India, Europe, and North America. At present, the major manufacturers of denim fabric are concentrated in China and India.

In terms of volume, the Global Denim Fabric market sales were 6618.1 million meters in 2016 and are predicted to reach 9130.1 million meters in 2023, with a CAGR of 4.70% from 2016 to 2023.

Denim Fabric downstream is wide and recently denim fabric has acquired an increasing significance in various fields of clothing, household items, cowboy accessories, and many other fields. Globally, the denim fabric market is mainly driven by the growing demand for clothing. The global Denim Fabric market is valued at 19700 million US$ in 2017 and will reach 25400 million US$ by the end of 2025, growing at a CAGR of 3.2% during 2019-2025.”

~ As per the Global Denim Market Report.

The key suppliers from all around the globe (Vicunha, Canatiba, Isko, Arvind, Aarvee, Nandan Denim Ltd, Santana Textiles, Weiqiao Textile, Partap Group, Black Peony, Orta Anadolu, Jindal Worldwide, Etco Denim, Raymond UCO, Bhaskar Industries, Sangam, Oswal Denims, Suryalakshmi, Xinlan Group, Artistic Fabric Mills, Foshan Seazon Textile and Garment, Cone Denim, Zhejiang Sitong Textile Fashion, Weifang Lantian Textile, Bafang Fabric, KG Denim, etc.), that are associated with global denim giants like Levi Strauss & Co. are all widely spread across the supply management system of these retailers. They have to, because the quantity they supply is not small, and there are tons of methodologies involved, tons of automated ways to bring in the replenishments, stock, etc.

How can a better order & supply chain management system help the denim retailers to ease-off their business execution?

The denim retailers have their fabrics and suppliers divided point by point – Light Denim Fabric, Medium Denim Fabric, Heavy Denim Fabric – which helps them with the product type, development, and all the distinctive techniques that could be applied to the supply management system.

 

Following the concept of Textile Circularity…

Levi Strauss & Co. and many other denim giants have started following the concept of textile circularity. Segregating their suppliers in a way – keeping the ones that accept used fabrics on one side and the ones that don’t on another.

 

It’s simply like giving the used types of denim a ‘second life’. The term ‘textile circularity’ is closely related to “circular economy” – just to make sure that nothing ends up waste, and there is always enough room to find a dollar from every bit.

 

Why Levi Strauss & Co. planned to have another order management system? Did Levi’s find what they had been hunting for?

“The previous order management system for Levi’s was stalling the company’s customer service options. The limitations of the system meant that Levi’s often couldn’t help a customer until post-shipment, potentially problematic for someone that wanted to alter their order or payment before it shipped,” says Chane Steiner, CEO of Crediful.


He further added, “With the need to reach worldwide, Levi’s needed a system that would allow for global integration. Third-party retailers, distributors, shipping companies needed to be compatible with Levi’s in order to address fulfillment needs.”

Levi’s got its hands on Manhattan, an order management software. But will this software be able to fulfill the requirements of this denim giant, is still questionable. There are tons of features that Manhattan misses, or probably none can understand because it provides no trial of the order management software. There are many other systems that offer real-time updates or synchronizations of their orders, automation to seamlessly operate their online selling business, an ample number of vital integrations (shipping, orders, supply chain, accounting, customer support, etc.); better inventory, order & supply chain management systems out there which could have been chosen. Well, it’s better late than never, Levi’s!