Challenges In Apparel and Fashion Industry Supply Chain

Despite the dampening effect of the pandemic on various industries, the apparel industry in India continues to thrive. Reports from the Ministry of Commerce and Industry revealed that in FY22, India’s apparel sector hit a record growth of 40.55% in its exports. The road ahead certainly looks bright for companies in this sector. But complications in supply chain sourcing need to be tackled in time to ensure they do not hamper the industry’s projected growth. 

Here are 4 of the main challenges the Indian apparel industry faces today, and how they can be tackled.  

Demand volatility  

The rising popularity of fast fashion has led to dynamic demand from customers. This ever-changing shift in demand needs to be met by competent suppliers who can keep pace with evolving customer needs. Securing reliable suppliers who meet these criteria can be a major challenge for apparel companies. 


Extensive market research to shortlist the best suppliers who have a track record of prompt delivery can help.  

Lack of supply chain sustainability and transparency

Transparency is crucial in the supply chain, and sustainability is fast becoming a necessary box to tick. Unfortunately, many suppliers in the apparel supply chain fail to communicate vital information about logistical delays on time. They may also use unsustainable supply chain practices without disclosing them.  


Apparel companies can choose to partner with suppliers who offer updates at every stage of the supply chain. They must also look into the sustainability of the logistics before choosing suppliers.

Shorter lead times 

Lead times have increasingly become shorter because of reducing product cycles and the rising preference for fast fashion. This makes it tough for apparel companies to obtain delivery of their supplies in a timely manner.  


The solution to tackling shorter lead times is supply chain optimization. Companies need to choose suppliers with the resources to handle bulk orders swiftly and without any delay.

Missing or damaged shipment 

While perishability may not be a big issue for the apparel industry, transportation issues can often plague its supply chain. As a result, shipments may go missing or products could reach the end user in a damaged condition, leading to a loss of credibility for the apparel company.  


Some of the causes of damaged shipments may be inevitable. But real-time monitoring of shipments can help companies take corrective measures in a timely manner.  

Bridge the gaps in your supply chain today  

If your business operates in the Indian apparel and fashion industry, you may be familiar with some or all of the challenges outlined above. Moglix can help you close these gaps and make your supply chain more robust and efficient. Visit our website to know more

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