The fashion industry has totally transformed since the mid-19th century with the introduction of mass production in the clothing industry. Today, the industry is a trillion-dollar industry and contributes a significant percentage to the global GDP. However, the industry has not made significant strides in the adoption of digital and technological solutions. Companies still seem to be following manual practices and not utilizing data-driven insights. Therefore, the product development and manufacturing processes of these organizations have not become efficient. However, the organizations that have adopted technology have already benefited from it. They have understood the importance of AI solutions and have realized the importance of the flow of data through the supply chain.
What are they doing differently now? They are using fashion PLM software. What is PLM? PLM stands for product lifecycle management. It is an enterprise solution that manages all aspects of product development from conceptualization to completion. Having access to all product data provides you with clarity in conceptualization, design, development, manufacturing, and vendor management, to name a few. Using an efficient PLM solution for your business ensures that your production process is streamlined, and your new products are ready to be taken to market in record time. Hence, it is worthwhile to look at this solution for your business, which can be of immense use to your fashion brand in so many ways.
Fashion brands, be it small or big, are known for their seasonal collections. There should be proper targets and a well-planned line. It may turn out to be successful if you have chalked out all the details well, from designs to merchandising, pricing to margins, and so on. A proper plan can be created easily using a reliable PLM solution for your business. It is then easily disseminated to all departments of your business to avoid any kind of confusion.
However, effective collection planning is more than just determining the products to be created. It is the holistic view of the entire product portfolio, including colorways, fabric selections, sizing specifications, and more. A PLM system allows all this information to be contained within a singular platform, where every level within the company can contribute to the planning process. If the designer makes changes to the color palette or the merchandiser makes changes to the pricing model, all relevant parties are immediately aware.
In addition to this level of coordination and integration, there is also the added value of historical analysis. Rather than relying on the results from previous collections—what sold well, which fabric selections were problematic, and so on—a company can use this as a means of informing future decision-making. This type of constant feedback loop is perhaps the greatest advantage of moving from a more antiquated system to a singular digital platform.
The success or failure of a fashion brand depends on the design. If one is doing it manually, there is a great chance of errors and delays because of the sheer number of emails, spreadsheets, and files involved. However, with the help of PLM software, one can develop precise design briefs hassle-free. There is no need to worry about minute details like construction information, labels, callouts, etc. Since the changes in the product's information happen in real-time, there is no confusion at all. Thus, everyone is on the same page and is providing feedback wherever required.
The design phase is the point at which creativity meets commerce. Fashion designers have the responsibility of designing something that is not only creative but also commercially viable and sustainable. PLM software can help the designers in this regard as they will have access to approved materials in real-time. Instead of waiting for days for the costing team to reply to the email, the designer will be able to know the real-time cost implications of changing the fabric used in the garment.
Significant improvements have also been noted in the integration of digital design into the workflow. The latest PLM systems can be easily integrated with CAD design tools and other 3D visualization tools. This has allowed design teams to generate digital prototypes and conduct virtual fit sessions, as well as share photorealistic images with stakeholders prior to the making of any physical samples. This has reduced the number of samples, the waste generated, and the design cycle duration significantly. In the fashion industry, which is dynamic and competitive, the speed to market is crucial to success.
Collaboration between design teams based in different parts of the world has also become much more efficient. Fashion brands with international recognition often have design teams based in different cities, manufacturing partners based in different continents, and sourcing teams based in different parts of the world. The PLM system is the glue that brings all these teams working in different parts of the world into harmony with each other, eliminating the confusion that could result due to issues such as version control and lack of communication through email.
The total cost of the entire set must be computed with accuracy. In addition, it must consider both buying and landing costs. This is because you must set your margin, your selling cost per region, and the currencies you will be using. Manual methods involving the use of spreadsheets can be tiresome and difficult to understand. In addition, there is a higher chance that you will make mistakes, which will eventually render your effort useless. However, you can avoid these risks by using PLM software. Only the required information about the component's cost is available to the teams, while the vendors can input the information.
Costing is not just about the financials; it is also strategic in nature. A brand that knows its costs with accuracy is in a better position to negotiate with its vendors and set prices that will not compromise its margin without losing its customers in the process. PLM software can be used to support the strategic aspect of the business.
One other factor in costing that is often not taken into consideration is compliance costs. Sustainability regulations are increasingly being implemented in the global industry. It has become necessary for fashion brands to prove the environmental impact of the products they are producing and pay fees for extended producer responsibility schemes. A PLM software can be very useful in including such costs in the calculation of the total cost. If such costs are ignored, it can result in unpleasant surprises.
Another level of intricacy is added in the calculation of the costing in the fashion industry because of the exchange rates. Companies dealing in the purchase and sale of products in various regions of the world need to take into consideration the exchange rates. A PLM software including currency management software would be very useful in this regard in changing the calculations according to the prevailing rates.
The number of products that need to be purchased beforehand has to be ascertained. This depends on the analysis of the budget and the capacity and quality of the vendors and the demands of the customers. It has to be sorted out properly so that enough time can be saved.
The manual process can be a time-consuming affair. Vendor relations are one of the most prized possessions for a fashion brand, and vendor relations management is a critical aspect that requires transparency, consistency, and communication. PLM software plays a vital role in vendor relations management as it creates a framework in which the specifications, timelines, and quality requirements are clearly documented and accessible to the vendor. If the vendor is aware of the requirements and has a platform through which they can ask queries and get the answers, the entire product development process can be made efficient.
Buyer management is as important as vendor relations management. Retail buyers from different stores, whether physical or online stores, expect consistent delivery schedules and product quality from the fashion brand. PLM software plays a vital role in buyer management as it keeps the buyer informed about the production timelines. If there is a delay at the manufacturing stage, the system can immediately inform the relevant people so that the buyer can be managed before the situation goes out of control.
The quality management capabilities of PLM software also play a vital role in vendor and buyer relationships. Brands can use quality management to keep all relevant parties informed of quality issues by digitizing quality control checklists, inspection reports, and defect tracking records. Not only does this help resolve any issues between buyers and vendors quickly, but it also facilitates a culture of continuous improvement by easily identifying quality issues and their causes.
The global fashion supply chain is arguably the most intricate in any industry in the world. It comprises raw materials suppliers, fabric manufacturers, trim suppliers, cut and sew contractors, finishers, logistics providers, and distributors, all of which need to work in concert to deliver products to market on time and within budget. PLM software facilitates this by providing a digital framework that brings all these disparate groups together and provides brand teams with the visibility needed to manage this intricate web of relationships effectively.
Supply chain disruption is something that has become very common over the last few years. From raw material unavailability to factory closures, shipping issues, and port issues, fashion brands have learned the hard way that a supply chain without visibility is like a supply chain without any flexibility to adapt to changes and disruptions that may occur. PLM software can help solve this problem by providing real-time information on the status of the supply chain at every stage of the production process.
It is very important to choose the right PLM solution that can help streamline all the stages of the apparel production process. If you can get access to category management software through the PLM solution you choose, you can be in complete control of your entire supply chain, which is very crucial to the success of your brand in the market. New PLM solutions now have built-in analytics that can help you forecast and even suggest strategies based on historical data and market conditions.
Today, sustainability is at the very heart of the fashion industry. Consumers are demanding that the fashion brands they support demonstrate a commitment to environmental and social responsibility. Governments in the European Union, the United States, and other nations are introducing legislation that requires fashion brands to provide detailed information about their supply chain and the environmental impact of their products. PLM software is now a key tool in the industry to support these requirements.
PLM software can provide fashion brands with the ability to monitor their own sustainability at the product level. This allows them to understand the exact products or processes that have the greatest environmental impact and set meaningful targets to improve these. It can also provide the detailed information required by governments, retailers, and institutional investors.
Social compliance is yet another important facet of sustainability where the role of PLM software can be leveraged. Brands can use the software to maintain all the necessary documentation related to factory audits and worker welfare certifications and prove the compliance of their supply chain with the labor standards they are committed to upholding. In today’s world of increased scrutiny and transparency, this is not only good business; it is good ethics.
In the apparel industry, time is of the essence. A style that is totally in sync in February can be totally out of sync in April. Brands that are able to accelerate the time it takes from concept to product on the shelf are at a huge competitive advantage. This is where the PLM software comes in and solves the problem by eliminating the inefficiency in the product development cycle.
One of the most significant time savings comes from reducing the number of sample rounds required before a design is approved. By enabling virtual prototyping and digital approval workflows, PLM software allows teams to resolve many design and fitting issues before a physical sample is ever made. Each physical sample round that is eliminated can save anywhere from several days to several weeks, depending on the complexity of the garment and the geography of the supply chain.
Automated workflows and approval routing also contribute to faster development cycles. In a manual process, a technical pack might sit in someone's inbox for days while they are traveling or focused on other priorities. PLM software ensures that approvals are routed automatically, deadlines are tracked, and reminders are sent when action is required. This systematic approach keeps the entire development process moving forward without the delays that inevitably occur in manually managed workflows.
Perhaps the greatest long-term advantage offered by PLM software is its potential to help a fashion brand become a truly data-driven business. When a fashion brand’s product information is stored in a variety of different locations, including emails, spreadsheets, and individual hard drives, it is impossible to draw meaningful information from it. When this information is stored in a PLM software solution, it can be a powerful tool for decision-making at all levels within a fashion brand.
The analytics available in a modern PLM software solution can often uncover information that would never be visible through a more manual approach. What designers consistently offer the highest-margin designs? Which suppliers consistently deliver on time? What markets perform best at certain price points? The answers to these types of questions can be incredibly powerful in changing a fashion brand’s approach to business, from how resources are allocated to how decisions are made about a variety of different aspects of a fashion brand.
However, as AI and machine learning abilities continue to be integrated into PLM systems, the level of analysis that will be at the fingertips of fashion brands will continue to increase. Predictive analysis software that can forecast demand based on style, color, and size with incredible accuracy is now available in some PLM systems. This type of analysis has the potential to solve one of the most vexing issues facing the fashion industry: overproduction.
The fashion industry is at a digital inflection point. The fashion brands that will be at the forefront of the industry in the coming decades will not be the ones with the best creative staff or the most recognized brand logos; they will be the ones that can combine creative excellence with operational precision and analysis. PLM software is the key on which this combination is based.
From collection planning and design through costing, vendor management, supply chain visibility, and sustainability compliance, PLM software impacts all aspects of the product lifecycle. In fashion brands of all sizes, from emerging independent brands to established global fashion brands, a strategic decision to invest in a PLM solution is no longer a discussion about technology—it is a declaration of a commitment to operating at the highest level in a more competitive and demanding world.
The discussion is no longer about whether fashion brands need PLM software. The reality is that fashion brands who have made this investment are redefining the standards for efficiency, agility, and sustainability in fashion. And for those who have yet to make this investment, the price of inaction is no longer measured by efficiency gains alone—it is now measured by the price of lost ground in a competitive marketplace where the future of fashion is digital, data-driven, and connected, and where PLM software is the key that unlocks this potential.