Categories
Business

Sustainable Fashion: A fad or the future?

Our global fashion industry has been heavily criticized for causing irreparable damage to the environment. A recent study, April 2020, published in the Nature Reviews Earth and Environment, states the annual impact from the fashion industry is over 92 million tonnes of waste, 79 trillion litres of water consumption alongside chemical pollution and CO2 emission. The glossy facades of fashion stores hide a huge environmental cost we are paying to set them up which is life-threatening and cannot be ignored now. 

Gone are those days when clothes were made by hand and fashion was for the richest in society. With the mechanization of the industry, manufacturing clothes became faster and cheaper, and fashion was introduced to the masses. The use of cheaper synthetic fabrics became abundant and the industry transitioned from a circular economy, producing no waste, to a linear model where only 1% of textile waste is recycled into new clothing. The luxury brands produce a fine quality style, which is copied in fast fashion at a lower quality. Each year more than100 billion garments are made and $450 billion worth of fabric is thrown away, globally.

Where there used to be two seasons, Spring-Summer and Autumn-Winter, now there are fifty. There is an over-supply of fashion where companies have gone from offering two collections per year in 2000 to five in 2011. Brands like Zara and H&M put out 24 collections per year and 12 to 16 respectp. Some fashion brands have taken the route to sustainability in sourcing and supply chain, but 85% of textile still ends in dump every year. 

Managing fashion inventory is a challenge because products have a large width and low depth. Since planning becomes difficult, the stock ends up piling due to wrong buying, and to get rid of it brands liquidate sales, leading to margin losses and stuck working capital. 

What can Brands do under these circumstances to help the industry become more environmentally friendly? 

  • Transition from fast fashion to slow fashion by optimizing manufacturing volumes. Analyze true demand potential to prevent stock-outs and increase customer satisfaction, and use smart-tech merchandising and WMS tools to ensure proper oversight on merchandise from the moment it enters the warehouse. 
  • Expose 100% inventory to ensure all channels increase the visibility of long-tail merchandise and no piece is left behind.   
  • Build sustainable partnerships in the supply chain for higher efficiencies.  
  • Donate unsold good-quality clothes for a cause to the needy

What can we do as Fashion consumers?

  • Buy good quality clothes so they last longer
  • Open to buy pre-owned good quality clothes 
  • Donate used good-quality clothes to the needy

INCREFF’s sustainable cloud-based solutions are built for inventory optimization for both online and offline channels. While ASSURE allows simultaneous 100% live inventory-order sync for online brands, IRIS analyses, as recent as, yesterday’s sales data to determine the right product assortment and demand-wise allocation of merchandise for optimum sales and maximum revenue.

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Categories
Business Smart Merchandising

Do you know what Zara and H&M do to be on the best-in-class Supply Chain list?

An efficient Supply chain streamlines everything from sourcing of raw material to delivery of the final product, adjusting and adapting to unexpected situations on the way. It not only gives brands the ability to diagnose an operational glitch and address it at the right time but also be more responsive towards societal needs. In the current scenario when the competition is high, a sustainable supply chain is a source of competitive advantage to boost customer service, reduce operating costs, and improve cash flow. 

Gartner’s Supply Chain top 25 list is the distinguished ranking of brand leaders, recognized for their achievement and advancement in supply chain capabilities. For this list, brands are evaluated on business health (ROPA, Inventory turns, Revenue) and Social responsibility metric (environmentally responsible supply chain). 

Only 2 Fashion brands have made it to the list so far, they are Inditex or Zara, and H&M. Zara has been on the list since 2010 and H&M since 2012

What makes them a class-apart? 

Their innovative demand-driven business model is centered around the customer’s decision-making process. The specialized real-time, demand shaping, and demand sensing tools help them immediately respond to market changes, increase flexibility, and speed of bringing innovative designs to the market. Zara offers 24 new clothing collections and H&M offers 12 to 16 collections each year.

Zara’s RFID technology ensures accurate inventory count and faster deliveries to the end consumer, while H&M through Treadler, its B2B service, helps clients accelerate sustainable change by overcoming internal barriers and accessing benefits of its global long-term supply chain partnerships for viable growth. Businesses today are not only implementing best-in-class technology to meet true customer demand, but also building sustainable partnerships for Industry and environmental benefits. 

How can you join the leader’s pool?

INCREFF’s sustainable, cost-effective SaaS solutions, ASSURE, WaaS, and IRIS are built for inventory optimization for both online and offline channels. Our cloud-based platforms are extremely easy to learn and use, without supervision. The best part is, we can get you started in less than 7 days. 

Increff ASSURE allows simultaneous 100% inventory exposure across all sales channels, so no piece is left behind. Its live-inventory sync feature captures instant sales even during peak time so your potential buyers know the exact availability and there are fewer cancellations. Low cancellations deliver a better customer experience, add value to the brand and build trust. 

While ASSURE is a fully automated and scan-based tool in itself, Increff’s Cloud warehousing service that runs on ASSURE lets brands have on-demand access to warehouses in multiple cities. There is no use of paper & pen and no human decision-making to minimize errors or delay in execution. Each piece is assigned a fully trackable unique piece barcode (UPB), which is more accurate than RFID. Once scanned, the location of a piece is recorded and referred to when pick-paths are defined at the time of order picking. Pick-paths are linear so there is no back and forth, and the picker’s time is most efficiently utilized. Return processing is fast and strict as the rejected piece is immediately moved out of circulation and its UPB is tagged with the reason of rejection. 

Increff IRIS is a cloud-based intelligent merchandising, buying and distribution platform that enables merchandisers to take pre-season and in-season decisions like what, when and how much to buy and where to showcase inventory via 100+ customizable patent-pending algorithms designed specifically for fashion and lifestyle business. For online sales, it analyses order location and distributes stock to ensure fulfillment from the local warehouse, reducing air shipments and logistics costs by nearly 70%.

The Global fashion industry has been heavily criticized for causing irreparable damage to the environment. Luxury fashion brands prefer to burn millions of dollars worth of clothes to prevent counterfeiting and protect intellectual property. We can help you protect the environment through our initiative of donating unsold inventory to the needy who cannot afford to buy good quality clothes.  

If you are sitting on a large pool of inventory and looking for a smart tech-tool that can help your brand realize its true demand potential, then you have reached the right place. Contact us today!

Categories
Business

Increff Insights #1 – ‘Buy First, Experience Later’

Steve Jobs once said, “You’ve got to start with customer service and work back on the technology – not the other way around”. This ‘experience first‘ approach of addressing customer needs still holds true for retailers but for customers, it has flipped to ‘Buy first & Experience later’.

With an increase in internet penetration and local campaigns like ‘Make In India’ and ‘Vocal for Local’ gathering momentum, a large number of National players are competing with Global brands on the same platform. With a world of choices at their disposal, customer loyalty is always at stake. As infinite brands chase a finite measure of customer attention, demonstrating skilled supply chain competencies is an ideal way of creating a competitive advantage. A terrific post-purchase experience is a great source of brand recall.  

As e-commerce becomes part of daily life, its unsaid expectations are set in every shopper’s mind, which are; variety, trust in quality, efficient delivery, and payment security. While brands are known for their products, they are always remembered for their service. As brands take care of the on-portal experience, INCREFF ensures a smooth post-purchase journey. 

INCREFF is the leader in retail technology innovation. With cutting edge solutions for boosting both offline and online sales of Fashion Brands, INCREFF assures immediate order processing, inventory updation across multiple channels, and efficient fulfillment.  

Their leading software, ASSURE is designed to handle flawless ecommerce order fulfillment journeys.

A recent classic example is LIBAS’s spectacular performance in Myntra EORS this year. Within 15 days of onboarding, LIBAS powered by ASSURE inwarded ~500 K pieces across 2 warehouses and dispatched ~170 K orders within 3 days achieving 99.9%+ SLA. It earned the esteemed fAssured quality badge from Flipkart and an Amazon Prime status for perfect delivery. 

Want to experience the world’s most simplest and accurate warehouse management and fastest order management cloud based platform, click here.

Contact us today to start your INCredible, upward journey!