How to build efficient, flexible and resilient supply chains

Infor Nexus

Fashion brands and retailers face multiple challenges, including ongoing supply chain disruptions and shifting consumer behavior as a result of economic uncertainty. At the same time, companies must meet growing demands for sustainability and transparency, driven by consumer expectations and increasing regulations. The rapid evolution of AI is adding pressure as businesses strive to stay competitive, alongside rising costs in materials, transportation and tariffs that are all squeezing margins.

For supply chain network Infor Nexus, which connects more than 95,000 brands, retailers, manufacturers, suppliers, logistics providers and banks, the key to success in these turbulent times is building resilient supply chains.

Heidi Benko, Infor’s vice-president of product management and strategy, shares how fashion brands and retailers can achieve this.

Heidi Benko

Navigating today’s evolving challenges requires a connected supply chain network. Why is this important?

Most supply chain data and processes exist across a company’s partner network, making a connected network essential. It provides real-time visibility, helping businesses to quickly adapt to disruptions, manage risks and optimise decisions.

A connected network also enables seamless data sharing across suppliers, manufacturers and logistics providers, helping to make the supply chain more resilient.

Businesses can achieve a connected supply chain network by leveraging digital supply chain platforms that improve accuracy, response times and streamline processes.

How can fashion businesses build resilience into their supply chains?

Fashion brands and retailers can build resilience by diversifying their sourcing strategies and embracing flexibility. Working with multiple suppliers across different regions reduces dependency and enhances adaptability.

Investing in digital supply chain platforms with real-time visibility and AI-driven alerts can also help businesses respond to issues, and optimise operations.

Additionally, supply chain financing ensures suppliers have the working capital to meet demand and avoid disruptions, further strengthening resilience.

What is your advice for dealing with – and avoiding – delays?

Some delays are inevitable, but responding quickly to minimise their impact is crucial. Continuous supply chain visibility and predictive alerts are key. By connecting to a digital platform, businesses can gain end-to-end visibility, enabling proactive identification and response to delays. Early alerts provide more options to resolve issues, preventing late deliveries and stock shortages.

How important is data when it comes to building strong supply chains?

Data is essential for building resilient supply chains. It drives decision making, improves efficiency and helps businesses adapt quickly to disruptions. Real-time insights and predictive capabilities allow companies to optimise processes, minimise risks and identify opportunities, ultimately strengthening the entire supply chain. A data-driven approach provides a competitive advantage, and over time, companies without it will struggle.

What impact is AI having?

AI is revolutionising supply chain operations. For example, machine learning predicts demand, helping companies stock the right products, minimise waste and improve efficiency. It also improves supply chain reliability by providing accurate ETAs (estimated times of arrival), reducing stock-outs and minimising buffer inventory. Generative AI digital assistants and agents streamline processes and boost productively by accelerating insights generation and automating routine tasks, accelerating decision making and enhancing overall productivity.

A raft of sustainability regulations and legislation is coming into action around the world. How will compliance impact fashion supply chains?

Sustainability regulations are forcing fashion companies to rethink how they source, design, manufacture, transport, re-use and dispose of products. They also need to manage more data, including environmental impact metrics such as carbon emissions, water usage, waste and product lifecycle information. Information is essential not only for compliance, but also for making more informed, sustainable decisions across the supply chain.

Multi-tier transparency and traceability will be an important factor in this. How can businesses make their supply chains more transparent?

To improve supply chain transparency, businesses must connect their multi-tier supplier network and trace the manufacturing of products. While mapping is a good start, it’s not enough. Tier 1 suppliers must be connected first. Once tier 1 suppliers are on board, they can invite their suppliers, expanding the network. True transparency comes from tracing every step of the supply chain and ensuring visibility at every stage.

Why is it important to manage both physical and financial supply chains?

Physical and financial supply chains are tightly interrelated. The same documents used to order, manufacture and ship goods also drive the financial side. Streamlining these processes ensures seamless hand-offs, improves on-time delivery and accelerates invoice approval, enabling timely payments to suppliers.

Supply chain financing is crucial for maintaining a steady flow of goods. Ensuring suppliers have access to the necessary capital helps prevent disruptions and late deliveries, while also improving supplier relationships.