The textile industry has undergone rapid change in recent years, particularly due to changing consumer preferences and the growth of e-commerce. This has created numerous challenges for companies in the sector, and one of the areas most affected is logistics.
In a context where efficiency and agility are paramount, the logistics sector is facing new demands to adapt to the changing needs of the textile industry. Online shopping has experienced exponential growth, leading to increased pressure on delivery times and the need for logistics efficiency in the last mile.
These are some of the key challenges.
A new, more demanding consumer
The emergence of a new consumer profile has reformulated the purchasing model, redefining both the structure of physical stores and the manufacturing model and stocking requirements, making it essential for all the players in the textile industry to work together to ensure full adaptation and to respond comprehensively to the new demands.
In this transformation, specialised logistics companies must become increasingly important partners in the supply chain in order to respond to the new challenges. The textile and fashion sector already requires complex and very specific logistics characteristics:
- A truly global supply chain
- Products with very short lifecycles
- Constant changes in product range
- Volatility of trends
Now, on top of these requirements, new needs are emerging. For example, it is no longer necessary to have a physical store, and new models of on-demand production with shorter runs are coming into play, forcing us to be even more agile, flexible and transparent.
On the other hand, there is the issue of sustainability. The textile sector is no stranger to this reality and consumers are increasingly demanding more in this regard, not only wanting clothing and footwear to be environmentally responsible, but also the entire supply chain.
The evolution of logistics 4.0
We are in the midst of a technological revolution and logistics companies must adopt new tools to respond to the new needs of the textile market.
Consumers in this sector are increasingly demanding more information, more added value and a more personalised offer from the industry, and all these demands are forcing logistics operators to face an integral transformation of all their processes. It is therefore necessary to constantly evaluate how to improve efficiency, testing multiple solutions on a global scale, collaborating with technology centres, investing in new projects, all with the aim of identifying the best logistics technology and implementing it successfully.
Managing the last mile
In reality, distribution to the point of sale is usually a major challenge for any sector, and in the case of the textile industry, it has a major impact. In any case, there is no standard solution for this type of company, as each one has its own specific conditions depending on the type of business, location, etc.
In any case, one system that tends to give very good results is night-time distribution, as it is currently a very competitive option for speeding up traffic, reducing costs and pollution, and an increasingly valued alternative as urban regulations add complexity to last-mile operations.
In this context, it is also worth highlighting sustainability as an increasingly important factor in defining the last-mile strategy, as this is the operation with the highest impact on the carbon footprint. For this reason, it is highly recommended that textile companies work with logistics providers to identify best practices that will directly reduce their emissions.
Returns and reverse logistics
Reverse logistics continues to be one of the industry's biggest problems, as it is one of the sectors with the highest return rates. Efficient returns management is therefore a high value-added activity in the industry.
The faster returned goods can be processed and put back into circulation, the greater the opportunities for companies in the sector to sell these products again. In an industry such as fashion, where trends change so quickly, these margins need to be even tighter, as a week's turnaround time can be excessive.
In these cases, it is imperative to design a returns management model tailored to each customer, with a high level of coordination to minimise response times and optimise returns processes.
Automation and robotics
It is essential to make a firm commitment to the automation of machinery for warehousing activities where standardisation is possible, as well as to the latest innovations such as powerful autonomous forklifts, robotic storage and picking systems, optimisation of storage systems based on big data, and so on.
In addition, it is extremely important to make progress in the development of predictive models, a key area for the competitiveness of the textile sector and of particular interest to companies that want to be prepared for the new consumption model.
All this will result in the optimisation of delivery times, real-time tracking of shipments, better transport planning based on peaks in activity, etc.
The offshoring of the sector
It is no secret that the sector is heavily offshored to reduce production costs. It is often said that Asia is the garment factory of the rest of the world. The obvious consequence of this is the long distances between production areas and points of sale, which is why logistics and transport are so important in this sector.
And it is precisely here that the need for logistics partners with an international dimension, who have a strategic vision of the major supply chain patterns, arises. And, above all, who have extensive experience in importing textiles from Asia to Spain. But that's not all: even if the logistics operator has these characteristics, it's important to continue working with the industry in a constant search for the best sourcing markets in this continent.
This article adapts part of the interview given to Logística Profesional by Andreu Gutiérrez (Country Sales Director Rhenus Logistics Road).