A shift in sourcing and demand-based supply chains are the key apparel sourcing challenges faced by US companies due to an impending economic downturn. Driving end-to-end process efficiency and cross-functional collaboration is crucial for companies to address such challenges. The US and China have embarked on a trade war that has seen them impose tariffs on a combined $360 billion worth of tariffs on imports, causing turmoil for financial markets and concern in sourcing circles.
The key economic indicators point towards an economic downturn in the United States. Companies need to prepare themselves better and develop cost-effective strategies to address sourcing challenges. Creating a centralised supply chain platform could help companies gain a comprehensive understanding of the end-to-end operations. Due to rising uncertainties, apparel sourcing has become a major challenge for many companies. Local sourcing is gaining popularity and companies are compelled to improve their transportation efficiency to address changing customer preferences. Nearshoring could increase, thereby, increasing the proximity of manufacturing operations to customers. Consumers today shop the latest fashions, creating pressure on businesses to keep shaving time off production and transit. Businesses need to integrate product line management with the supply chain strategy to improve the apparel sourcing process and reduce the time to market.