In an innovative stride towards reshaping the fashion industry, the International Trade Centre (ITC) and the International Apparel Federation (IAF) are set to unveil the research phase of their AI-driven fashion supply chain project at the IAF World Fashion Convention in Philadelphia on 23rd-24th October.
Partnering with the Sewn Products Equipment Suppliers Association of the Americas (SPESA), the joint study applies insights from the automobile and electronics sectors to demonstrate how material suppliers and fashion manufacturers can achieve ‘smart flexibility.’ This approach enables businesses to postpone production commitments closer to actual demand, unlocking capital tied up in excess inventory and overproduction.
Termed ‘smart flexibility,’ this methodology combines process optimisation and data tools, including AI, to empower fashion suppliers to add substantial value for both brands and manufacturers. This approach aims to surpass the advantages offered by conventional low-cost global sourcing, marking a paradigm shift in the industry’s sourcing landscape.
The Sustainable Terms of Trade Initiative (STTI), an enterprise advocating for fair purchasing practices, identified full supply chain profitability as a research priority in 2021. Smart flexibility, or shared risk, emerges as a promising alternative to the often imbalanced sourcing relationships prevalent in the industry. According to STTI, this approach fosters mutually beneficial sustainability goals and elevates purchasing practices beyond traditional, transactional contracts.
The study, titled Under the Banyan Tree: Buyers and Suppliers in Fashion, will be unveiled during the IAF World Fashion Convention.
