Students in FASH455 have proposed the following discussion questions based on the readings about the US textile and apparel industry and fashion companies’ sourcing strategies. Everyone is welcome to join the online discussion. For FASH455 students, please address at least two questions and mention the question number (#) in your reply.
#1 As a developed country, should the US prioritize further strengthening highly capital-intensive yarn manufacturing, or should we rebuild a vertically integrated textiles and apparel supply chain (e.g., yarns, fabrics, and garments) at home? What is your recommendation, and why?
#2 In FASH455, we discussed how the US textile industry has experienced a decline in employment despite increasing production volumes, largely due to advancements in technology. However, why is import competition often cited in the media as the single largest threat to the US textile industry?
#3 While studies show that US fashion companies are reducing “China exposure,” measured in quantity, China still accounted for 36.1% of US apparel imports in 2023, even higher than 34.7% in 2022. How can we explain this phenomenon? What factors have made US fashion companies hesitant to move away from China?
#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement? Please provide your thoughts.
#5 Will the growing demand for supply chain transparency and traceability reduce the incentives or add additional burdens for fashion companies to diversify their supply chain further? What are the benefits of pursuing sourcing diversification other than mitigating the potential sourcing risks?
#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
FASH455 Global Apparel & Textile Trade and Sourcing 
#2 In FASH455, we discussed how the US textile industry has experienced a decline in employment despite increasing production volumes, largely due to advancements in technology. However, why is import competition often cited in the media as the single largest threat to the US textile industry?
Although technological advancements have eliminated the need for a human touch in a large portion of the textile and apparel industry, competition from cheaper overseas imports is usually cited by the US media as the largest threat to the industry. Taking the blame away from where it truly lies allows these textile and apparel companies to hide the fact that they are deliberately looking to cut down on costs so that they can increase their profit margins. Machines don’t need breaks and don’t need to be paid wages, therefore overhead becomes much lower. However, if it looks like other countries are at fault for American jobs going away, the general public won’t go blaming the companies for wanting costs cheaper. Diverting attention away from the true cause allows these companies to get off relatively scot-free with their decisions.
#3 While studies show that US fashion companies are reducing “China exposure,” measured in quantity, China still accounted for 36.1% of US apparel imports in 2023, even higher than 34.7% in 2022. How can we explain this phenomenon? What factors have made US fashion companies hesitant to move away from China?
We can explain the phenomenon involving an increase in US apparel imports of Chinese origin despite a stated desire by companies to “reduce China exposure” as a result of lip service by these companies. China’s human rights violations in Xinjiang have been reported several times in the past few years as well as the on-going US-China trade war. Due to this, publicly acknowledging relations with China isn’t too favorable for the public image of many companies so they denounce China in their press releases and in interviews while still continuing their relationships with Chinese factories behind the scenes. The fact of the matter is that China has the infrastructure, technical know-how and the prestige that many other countries with apparel manufacturing capabilities lack. While lower costs are still a primary concern for many companies, they still need to make product that will look like way they want it to and have it done in a way that meets their timeline. This is why China is still such a popular manufacturing source for fashion companies.
Hi Matea! I like how you mentioned that companies get off scot free when people blame certain countries for their issues. Companies never-ending need to increase profit margins have led to questionable decisions being made regards the supply chain. Also, I believe the increase in imports will continue as long as fast fashion dominates the industry. Overall, great comment!
Good thought! For Question #2: Your comments just recall what we discussed in class about all the measures US textile mills took to stay competitive—from capitalization to mergers and acquisitions. The common goal of these measures is to reduce production costs and make “Made in the USA” price-competitive in the global marketplace. However, politically, it is challenging to attribute job losses to technological advancements.
question #1! the US should focus on strengthening the domestic textile manufacturing industry because of its highly capital-intensive nature which the US has an advantage in already. Currently, the US’s exports in the textile and apparel industry mainly consist of textile products, however textile exports make up only a small percentage of the US’s total exports across all industries. Right now, the textile manufacturing industry in the US is mainly focused on niche markets and innovative or highly technical products, and has found success among global competition through this. With access to advanced technologies and a lot of capital already, strengthening the domestic textile manufacturing industry could prove to be extremely successful for the US and catering to niche markets will help them to provide unique offerings and stand out from competition.
#4 As sustainability becomes more and more important not only for fashion businesses but also for fashion consumers, many companies will look to making changes in their sourcing and supply chains in order to ensure the most sustainable and ethical business practices. As consumers demand more transparency from brands in terms of where their products are coming from across every stage of the supply chain, it is likely that many fashion companies will begin to source from more developed countries and move away from developing countries. This is because of the countless labor issues often present in labor abundant countries where wages are often low and working environments subpar. However, with inflation still present in the economic environment companies are unable to completely move out of sourcing from such developing countries due to high costs associated with doing so. Unfortunately, many consumers are very price sensitive and if companies alter their supply chains to adhere to sustainability concerns, they may lose customers and ultimately their business could suffer. Therefore, there must be a complex balance between keeping costs low and ensuring sustainable and ethical sourcing practices. In turn, both more developed as well as developing countries will remain players in the global textile and apparel supply chain.
Hi Hannah! I like how you talked about the positives and negatives of sustainability. On one hand, brands want to adhere to customer concerns about sustainability practices in developing countries. But on the other hand, sourcing from more developed countries would result in higher product costs. Great comment!
Excellent comments! After reading your comment on question #1, I was thinking about whether indicators like the value of output and the size of employment should be used to measure the health of the US textile industry. Other indicators such as companies’ profitability might be more relevant; however, obtaining such data is more challenging.
For question #4, you may find this recent study relevant. For “sustainable fashion products” like those using recycled textile materials, developed countries such as the US may enjoy a comparative advantage considering the capital-intensive nature of many production processes. https://shenglufashion.com/2022/12/20/new-study-explore-u-s-retailers-sourcing-strategies-for-clothing-made-from-recycled-textile-materials/
Hi Hannah, great response! I agree with your comments in regards to strengthening our textile export industry. The United States has a lot of advantages in our levels of technology and capital. It would be a good idea to continue to expand our offerings in niche textile markets which do not have much competition but do have quite a lot of profit potential. This gives the United States an option to continue to bring back the concept of “Made in America”.
#1 As a developed country, should the US prioritize further strengthening highly capital-intensive yarn manufacturing, or should we rebuild a vertically integrated textiles and apparel supply chain (e.g., yarns, fabrics, and garments) at home? What is your recommendation, and why?
Although it isn’t common for a country to dominate both the textile and apparel sectors, a vertically integrated supply chain would benefit Americans. It would create more jobs for the American workforce and boost our economy. There is a lot of work to be done in order to achieve vertical integration. Based on the U.S. textile and apparel manufacturers in OTEXA’s database, only one-third of the manufacturers make more than one product type. One of the main reasons for this is the small number of fabric mills in the US. Pursuing a vertically integrated supply chain offers the US much room for growth. With growing concerns over supply chain practices, ethics, and environmental concerns, the USA should take control of this production.
#6 – What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
I believe that AI will become an integral part of the supply chain when it comes to apparel sourcing. The software can be utilized by fashion brands, vendors, and almost all other aspects of the supply chain. It can generate ideas, forecast, plan, manage, and more. Even though I don’t want people to lose their jobs to technology, AI has the capability to increase productivity and sales if utilized effectively. AI can assist with labor shortages in the supply chain. If jobs require scheduling, allocating resources, assigning people tasks, etc., AI can handle that. Also, when choosing between multiple vendors to source from, AI can analyze the provided information about the options and generate a summary of what aligns best with the company. There are also AI softwares that can create sales predictions, potential delays in the supply chain, monitor current stock levels, and more. Trends change so often, it is likely hard to keep up with all the changes. AI can help monitor that, as machine don’t need to take breaks or be paid, it can almost do an unlimited amount of work.
Hello Ms. Abigail, wonderful responses! I am very much in agreement regarding your comments on the inclusion of AI into textile and apparel sourcing. There are a lot of gaps and structural issues within the supply chain and AI is definitely capable to help solve them. If companies are aware of potential shortcomings or stock market problems before they happen, they can create contingency plans and avoid delays and customer dissatisfaction, which leads to loss in profits.
#5: While there will likely be both positives and negatives to this growing demand for transparency and traceability, I believe that it will ultimately encourage fashion companies to make more sustainable and ethical sourcing decisions. We can see this occuring in the EU, with their push for circularity and introduction of standards and innovations like Digital Product Passports. These promote supply chain transparency, with the ultimate goal of seeing a shift towards sustainable and ethical production and consumption, though that is not a guaranteed result of these initiatives. Meeting these standards can push companies to diversify their supply chain, or make drastic changes altogether, as regulations may not recognize existing vendors or manufacturers as fit. Alternatively, companies may see positives like improved brand reputation among consumers if they were to diversify their supply chain to address transparency. If traceability is an important factor to consumers, ensuring that a company’s partnerships reflect this is key to maintaining/improving their reception among shoppers. Additionally, there is the possibility of improving quality and processes by diversifying, though it may come at the cost of more expensive sourcing. Finding new suppliers/manufacturers could push companies to seek those that produce a higher quality than those they are currently sourcing from, which would prove to be beneficial both in terms of transparency and brand reception.
#6: AI is a rapidly expanding tool that has infiltrated countless industries on a global scale. With that in mind, I anticipate that AI will be used, initially at least, as a means to mitigate potential human oversights and to streamline processes whenever possible. AI and automation have been heavily discussed both in and out of our classroom, and it is clear that it will be heavily integrated into the future of fashion along the entire supply chain and PLC. In terms of sourcing specifically, we can apply AI to current issues that we’re seeing pop up both on the macro and micro levels. Political tensions and shifts in the global landscape may directly impact a brand’s sourcing decisions, and AI can be used to make more sound and informed decisions, as data from all corners of the world can be used to analyze different choices and potential outcomes. Another way AI can be utilized is to use their vast resources to approach consumer needs and demands. As many of us know, the fashion industry is a rapid and ever-changing sector, and while forecasting can be done at the human level, AI can streamline this process and arguably produce more reliable results that are based on historical data and current trends. I personally do not believe AI will completely remove the human touch from these decisions, but I do believe that it can lead such processes and humans can make further tweaks that take human nature into account more accurately.
#1 As a developed country, should the US prioritize further strengthening highly capital-intensive yarn manufacturing, or should we rebuild a vertically integrated textiles and apparel supply chain (e.g., yarns, fabrics, and garments) at home? What is your recommendation, and why?
In addressing whether the United States should prioritize strengthening highly capital-intensive yarn manufacturing or reconstructing a vertically integrated textiles and apparel supply chain domestically, many factors should be considered. Firstly, focusing solely on enhancing highly capital-intensive yarn manufacturing may overlook some of the benefits of rebuilding a vertically integrated supply chain. While investing in advanced machinery and technology for yarn production can potentially improve efficiency and output, it might not fix the weaknesses we saw because of the COVID-19 pandemic, such as supply chain disruptions and too much of a reliance on foreign manufacturers. My recommendation leans towards prioritizing the reconstruction of a vertically integrated supply chain within the United States. While further strengthening highly capital-intensive yarn manufacturing is definitely beneficial, it should be viewed as part of a broader strategy aimed at renewing the entire textiles and apparel ecosystem domestically. By rebuilding a strong and self-reliant supply chain, the U.S. can improve its ability to handle economic challenges, protect national security, and encourage environmentally friendly manufacturing methods.
#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
When I think about how artificial intelligence can help in sourcing clothes, I see that it can solve a lot of problems for fashion companies. AI can predict what customers will buy better than before by looking at past sales and what people like. This means companies can make the right amount of clothes and not have too much left over or run out. Also, AI can help choose the best places to get clothes from by checking things like how good the factories are and if they follow the rules. This makes sure companies work with the right partners and can trust them. It can also help companies be more environmentally friendly. By looking at how things are made and used, AI can find ways to save energy and reduce waste, which is environmentally friendly and can save fashion companies money as well. Plus, AI can make planning and shipping clothes more efficient. By figuring out the best times to make and send clothes, companies can save time and money, and react quickly to changes in the market. Overall, AI has the potential to make sourcing clothes easier and better for fashion companies, helping them save money, be more sustainable, and stay competitive.
Question #3: I believe we can explain this phenomenon of China still accounting for a good chunk of the United States’ apparel imports because although our country has said that we are reducing our China exposure, it is still a work in progress. I think that since the percentage of apparel imports from China has risen between 2023 and 2022, it shows that the U.S. is not trying hard enough to cut back their China exposure. I think the main reason the U.S. fashion companies are hesitant to move away from China is because of the Chinese market being a majority of their consumers. Exporting to and importing from China has shown to work very well for many companies, and although they see the harm, many still see the good.
Question #5: I believe that the growing need for transparency plays a role in the consumers’ growing want for responsibility. I think it may add additional burdens to the companies and brands, but they will pay off in the long run and these companies will not regret making shifts in their supply chain. Diversifying supply chains have a number of benefits, such as how it shows that the company/brand cares about doing the right thing, and it shows consumers that they are buying from a reputable brand that cares about their image.
#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement? Please provide your thoughts.
Because of US fashion companies’ growing interest in carrying more sustainable textiles and apparel, they may move more of their sourcing destinations into developed countries. Consumer interest in sustainable practices are growing by the day and this is pushing brands into demanding higher ethical standards. In developing countries such as Bangladesh, that many US companies source from, there is extremely low pay and unfair working conditions for the workers. This does not hold up to these standards which is a reason why moving sourcing to countries who provide fair labor and a livable wage is something companies may do. This is why developing countries with cheap labor are not the winners in the sustainability movement. Unless a big change is made by US fashion brands to help workers within these countries get the pay they deserve, the ethical practices are not up to par. However, a big issue that will be found with moving supply chains to developed countries with the correct capital and technology is the price of this being higher for both brands and consumers. For the most part, neither of these parties are willing to pay the price that sustainability will cost to move sourcing into developed countries that do not provide cheap labor.
#5 Will the growing demand for supply chain transparency and traceability reduce the incentives or add additional burdens for fashion companies to diversify their supply chain further? What are the benefits of pursuing sourcing diversification other than mitigating the potential sourcing risks?
The growing demand for supply chain transparency will most likely add additional burdens for fashion companies to diversify their supply chain further. Sourcing from countries who offer cheap labor is an easy way out of having to pay higher prices for sustainable clothing and practices. Therefore, helping to make change within these countries or moving to source in other, more developed countries is something brands need to do if they want to be transparent and ethical for their consumers. This can be a burden while making the change considering it will take extra work and efforts. However, it will be a very positive change in the long run for reasons such gaining a positive reputation, improving the quality of their products, etc. These benefits will make the brand stand out and encourage consumers to purchase from them which will override the potential challenges that comes from diversifying the supply chain.
#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement? Please provide your thoughts.
As sustainability has become a major interest within the fashion industry it has forced brands to reassess their sources destinations and supply chains and take a deeper dive into them. It is important for them to do as much research on them as possible and ensure they are executing tasks using ethical practices. It will also be important that the companies grow their relationships with the factories to allow for stronger and more transparent communications. When looking more into the sourcing destinations and supply chains they might find that these factories aren’t meeting the level of sustainability they are hoping to see which in turn could lead to changing where to source from. Possibly moving to more developed countries with better capital and technology. These countries will ultimately be the winner of this sustainability movement because they have the resources and funding to carry out these tasks ethically and will have more options for sustainable practices.
#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
I believe the use of AI within apparel sourcing will provide a lot of different benefits. It can allow for real time information and better data-analytics. Some problems faced within sourcing and supply chains is the lack of supply chain transparency also inventory management. Using technology such as AI — different AI platforms like Google Cloud Platform can provide immense amount of information about analytics, data, inventory management. All of this will give brands more information about different aspects of their supply chain to have more transparency of what is going on along with being up to date with their products and inventory.
3. Even though some US retailers have started to pull away from China as a sourcing destination, the percentages of US apparel imports are still so high because that is how much US apparel brands have been relying on China. Such a high percentage of imports have been coming from China for so long, that 36.1% is actually making progress toward pulling away from China. While there is motivation for retailers to scale back from China, some factors that may make them hesitant to do so are the low costs and reliability aspects as they have been a steady source for us for so long.
4. US Fashion companies growing interest in carrying more sustainable textiles and apparel will greatly affect their sourcing destination decisions and supply chain operations. In developing countries such as China and Bangladesh, labor is cheap and the quality of clothing is not their top priority. These countries also do not have the capital or the technology to produce sustainable apparel on such a large scale. While brands and retailers usually turn to these countries due to their lower prices, when looking for suppliers who can produce products ethically and sustainably, we will see a shift and US brands will turn to developed countries with more capital and the right technology to do the job.
#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement?
As US fashion brands increasingly prioritize sustainability, they may shift their sourcing to developed countries. Growing consumer demand for ethically produced clothing drives this trend, prompting brands to seek higher ethical standards in their supply chains. On the other hands, many developing countries, such as Bangladesh, where US companies often source from, offer low wages and poor working conditions, failing to meet these standards. Consequently, moving sourcing to countries with fair labor practices and livable wages becomes a consideration for companies aiming to align with ethical principles. However, transitioning supply chains to developed countries is more expensive, which poses a challenge for both brands and consumers. Despite the benefits in ethical standards, the increased expenses associated with sourcing from developed countries may deter adoption due to reluctance from both brands and consumers to bear these additional costs.
#5 Will the growing demand for supply chain transparency and traceability reduce the incentives or add additional burdens for fashion companies to diversify their supply chain further? What are the benefits of pursuing sourcing diversification other than mitigating the potential sourcing risks?
As the demand for transparency and traceability in the fashion industry grows, it’s likely to bring about both positive and negative outcomes. However, I believe that overall, it will push fashion companies towards more sustainable and ethical sourcing practices. This trend is evident in the European Union, where initiatives like promoting circularity and implementing standards such as Digital Product Passports aim to enhance transparency in the supply chain. While these measures don’t guarantee a shift towards sustainability and ethics, they incentivize companies to reconsider their sourcing strategies. Meeting new standards may require a more diverse supply chain or making significant changes, potentially improving brand reputation among consumers who prioritize transparency. Although diversification may lead to higher sourcing costs, it could also result in better quality and processes, as companies seek out suppliers and manufacturers with higher standards. In essence, prioritizing traceability and transparency can lead to positive shifts in sourcing practices, benefiting both companies and consumers alike.
Question #1: The United States has a strong advantage in capital-intensive textile manufacturing and currently focuses on niche markets and innovative products. Strengthening the domestic textile industry could be highly successful, leveraging advanced technologies and capital. Catering to niche markets allows for unique offerings, standing out from global competition.
Question #4: As sustainability becomes crucial for both fashion businesses and consumers, sourcing and supply chains are undergoing changes. Consumers demand transparency, leading companies to consider sourcing from developed countries. However, challenges such as labor issues and inflation persist, making it difficult to entirely shift away from developing countries. Balancing low costs with sustainable practices is essential, ensuring both developed and developing countries remain players in the global textile supply chain.
Question #4. US fashion companies’ growing interest in more sustainable textiles and apparel will increase transparency in their sourcing processes. They will have to invest more money and resources in facilities that prioritize sustainability, resulting in increased costs for the end consumer. I think that developed countries with the right capital and technology will be winners in the sustainability movement. Although the purchasing costs of garments may be higher, customers who value sustainability will feel more inclined to shop from these companies who are transparent in their sourcing processes, despite the higher prices. Companies with high capital and technology will have the capacity to conduct overall operations more efficiently than developing countries who lack these resources and technology.
Question #5. I do not think the growing demand for supply chain transparency and traceability will reduce the incentives for fashion companies to diversify their supply chain further; if anything, I believe this will incentivize fashion companies to further diversify their supply chain to meet the changing needs of their consumers. This may seem burdensome for fashion companies, but diversification in the supply chain can provide companies with several benefits. First, fashion companies won’t have to rely on a single region for sourcing, decreasing the risk of having all of their eggs in one basket. Another benefit includes optimizing product quality by utilizing all the different strengths of different suppliers. Therefore, there are a lot of lasting benefits of fashion companies diversifying their supply chains.
while reading your comment on question #5, I am thinking How do the ‘benefits’ you mentioned relate to supply chain transparency and traceability?
#5 There is always the possibility that the growing demand for supply chain transparency will add additional burdens or reduce incentives for US fashion brands. For fashion brands to be completely transparent, that usually requires an increase in further investments such as technology and other manufacturing systems, which some brands may not be able to afford. Along with that, many brands who try to increase their transparency may also come across increased judgement from consumers and key stakeholders to make sure they are constantly in compliance with these ethical standards. However, I believe that the main benefit to diversification among the supply chain is how a company becomes better equipped for global supply chain disruptions. Since the company would not be dependent on just one region for sourcing, if something where to happen like a war or natural disaster, they would be able to continue sourcing from their other suppliers not in that affected region.
#6 I am extremely interested to see how AI is able to improve apparel sourcing in the future, since it’s still a new concept. One way that I would like to see it grow is in terms of sustainable sourcing practices. In order to help companies achieve their environmental goals and adhere to consumer preferences, AI would analyze the current environmental impact of what US textile and apparel brands are currently doing, and then suggest different sourcing options for their specific needs such as energy consumption and co2 emissions.
#2 In FASH455, we discussed how the US textile industry has experienced a decline in employment despite increasing production volumes, largely due to advancements in technology. However, why is import competition often cited in the media as the single largest threat to the US textile industry?
Import competition is often cited as the single largest threat to the US textile industry due to its immediate and measurable impact on domestic manufacturers. While advancements in technology have contributed to the declining employment in the US textile industry, import competition heightens the challenges faced by these producers by undercutting prices and eroding their market share. On top of this, import competition often involves countries with lower labor costs and fewer regulatory constraints. This allows these countries to offer products at lower prices. As a result, US textile manufacturers are not able to compete on a level playing field, leading to job losses and factory closures, such as the ones mentioned in the NCTO hearing with Kim Glas. Import competition represents a growing concern for the US textile industry leading to policy measures to try to address unfair trade practices and promote domestic manufacturing competitiveness.
#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
AI in apparel sourcing has the potential to completely revolutionize the way that fashion brands and retailers manage their supply chains. AI-powered algorithms are able to analyze large amounts of data in order to optimize sourcing decisions, predict demand, identify cost-saving opportunities, and much more. I recently wrote an essay for FASH490 about how Gap, Inc. could implement technology similar to Michelin, North America’s Cosmo Tech AI-simulation technology in order to improve their supply chain. AI also has the ability to enhance supply chain visibility and transparency, both important subjects as of recent years, by tracking inventory levels, production schedules, and logistics. AI-driven predictive analytics are even able to predict trends, consumer preferences, and market demand. If used correctly, this technology has the potential to save companies both time and money. AI is an important tool that brands and retailers can have at their disposal in order to stay competitive in today’s fast-paced market.
#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement? Please provide your thoughts. In a short paragraph:
The growing interest of US fashion manufacturers in sustainable textiles and apparel is likely to have an effect on the locations of their suppliers of materials and the structure of their supply chains. Developed nations with advanced technology and capital are likely to come out on top because of their capacity to satisfy strict sustainability criteria, even while developing nations with inexpensive labor may experience pressure to improve sustainability policies. A thorough plan is necessary since effective sustainability initiatives will call for collaboration among sourcing locations and the adoption of cutting-edge techniques to meet objectives related to social responsibility and the environment.
#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
AI has potential in the sourcing of garments, providing answers to major problems that fashion designers and retailers encounter in their supply chains. One idea is to use AI to improve the efficiency and visibility of the supply chain. Large volumes of data can be analyzed by AI algorithms to improve sourcing choices, such as choosing suppliers based on criteria like cost, lead time, and sustainability records. Predictive analytics driven by AI can also predict demand more precisely, reducing overstock and stockouts.
The blog post highlights some of the students’ best questions regarding US fashion companies’ evolving sourcing strategies and the future of the US textile and apparel industry. I believe all the questions were thoughtful and reflected well on Dr. Lu for teaching us so well. To comment more on this blog post I decided to answer one of the questions, number six. I believe that AI will be used in many ways in sourcing. AI can write orders, come up with statistical graphics, and report on current events around the world. I think there is so much happening in the world whether it’s the US-China tariff war or the Red Sea attacks, AI constantly giving updates on trade routes could be very beneficial for sourcing and supply chains.
#4 How will US fashion companies’ growing interest in carrying more sustainable textiles and apparel affect their sourcing destinations and supply chains? Will developing countries with cheap labor and/or developed countries with the right capital and technology be the winners in the sustainability movement? Please provide your thoughts
The growing interest of US fashion companies carrying more sustainable textiles and apparel will have major impacts on their sourcing destinations and supply chains. As more companies find ways to be more sustainable, I think they are finding that the root of their problems comes from sourcing. A lot of companies choose their sourcing locations based off of the prices, rather than sustainability, but now there is a shift. Companies are now looking for sourcing destinations and supply chains that offer sustainable options and practices. Specifically, from a video that I watched earlier and commented on in another post, companies like Unavailable are taking huge steps in the sustainable/conscious direction and focus more about the journey rather than the destination, which is the goal for a lot of fashion companies who are interested in taking the step to becoming sustainable. I think the winners are sourcing destinations/supply chains who are focusing on every step of the supply chain. With time and more education, I think retailers and brands will realize that these are the places where they need to be sourcing.
#6 What is your vision for the use of AI in apparel sourcing? What key sourcing and supply chain problems facing fashion brands and retailers can AI potentially solve?
I believe AI will be useful for many way when it comes to sourcing. I think overall, AI will simplify the sourcing process. First, AI can help analyze the demand based off of previous demand and help forecast for the future. This can help companies prepare by having inventory management and also making sure they are hitting that demand head on. A sourcing issue it can help solve is helping chose what suppliers will be the best fit. It can provide information like price, quality, sustainability, flexibility, etc. All of the important things that need to be know about the supplier, AI can generate very quickly, saving the brands and retailers a lot of time. A supply chain problem it can help solve is the supply chain visibility. With AI, it can help track orders, show the inventory, and production process. Overall, AI can help pick simplify apparel sourcing while also helping choose suppliers and creating a transparent supply chain.