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Tough challenges ahead for supply chain managers
21
Jan '11
Recession has caused disruptions in the global supply chain activities during 2008 and 2009. During 2010, economies gradually recovered from the impact of the financial crisis. 2011 & 2012 will witness better growth in the apparel industry. Despite all rosy hopes, global supply chain is likely to face some constraints.

Short life cycle of apparels and the unpredictability in fashion trends make the functioning of supply chain complex. Companies need to have good business monitoring, proactive decision making abilities, and the flexibility to adapt changes in order to sustain their slice of the pie.

Transparencies of the market and price fluctuations have deteriorated customer loyalty. Apparels are becoming more commoditized in today's competitive market and consumers have developed a tendency to shop based on prices only.

Fluctuations in currencies create havoc with global supply chains. Buyers spread the risk and hold back on their commitments. This results in smaller orders, more styles, and short lead times, which poses a threat to the supply base.

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