Insider Tips | Efficient B2B Approaches to Fashion Sourcing Costs
Research reveals significant challenges for B2B fashion sourcing, including shipping issues (74%), shifting demand (66%), pandemic concerns (61%), problems with material supply (53%), geopolitical risks (50%), and an increase in online sales (40%). In order to address these issues, we provide these proven sourcing practices that must be understood by fashion leaders in 2024.
Invest in Technology
Investing in technology is a game-changer for saving resources in the fashion industry. A prime example of this is Shein’s collaboration with Queen of Raw, leveraging the Materia MX software to source unused fabrics from other brands. This strategy aligns with Shein’s goal for a circular textile industry by 2050 and shows a powerful shift towards sustainability.
This approach conserves valuable resources and sets a benchmark for the industry, showing the tangible benefits of technology investment in achieving eco-friendly goals.
Re-Strategize Negotiation Technique
Effective negotiation techniques can significantly cut costs, a crucial strategy during financial challenges like those posed by the COVID-19 pandemic. A key insight from a web portal focused on procurement efficiency suggests that moving negotiations online can streamline procurement processes, reducing costs with minimal effort by fostering competition among suppliers.
This approach is supported by Warren Buffett’s wisdom, emphasizing the importance of efficient procurement in the survival of industries. Sapeap highlights that a mere 10% saving in procurement can potentially boost profits by 50%, a goal far more attainable than equivalent gains through increased sales or pricing. Major industries, including Tata and BHEL, have adopted online negotiations, proving their effectiveness in reducing procurement expenses and reinforcing the logic that smart, strategic negotiation is a pivotal resource-saving tactic.
Build Trust Through Transparency
Building trust and transparency is all about getting buyers and sellers to work together openly and honestly. This method is very important for making sure that ethical practices are followed, quality is checked, and communication is clear throughout the sourcing process. ORYX Bangladesh is a good example of this strategy because it makes it easy for French buyers to talk to each other directly and provides full merchandising services.
Honesty, responsibility, and teamwork set ORYX apart, building strong supplier relationships. This streamlines the sourcing process and ensures it meets the highest global ethical and sustainable standards.
Final Words
The Fashion sourcing industry dynamics are going through a major transformation. Although we have covered the most effects, every fashion brand has its unique B2B fashion sourcing challenges. It could be Cost-effectiveness, Quality assurance, or Supply chain management. It also means your fashion and apparel brand needs expert consultation to overcome those challenges.
You can learn more about this with expert guidance from Moglix to resolve your sourcing issues.
