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October 8, 2020

How On-demand Apparel Production is Helping Wholesale and Retail Fashion

by Shahrooz Kohan

Apparel Software for On demand Production

Right now, clothing is being produced using on-demand apparel production by utilizing AIMS360’s powerful apparel software to sell omni-channel for both wholesale (B2B) and direct to consumer (B2C)While this is not the traditional method (especially, in direct to consumer B2C), it has become a successful niche for many fashion companies. With many customer orders (wholesale or retail), goods are produced ‘on-demand’ vs. producing in advance. The process is simple: orders are taken, on-demand production is immediately created, the goods are allocated, shipped, and inventory is updated to all channels. 

Apparel Software for on-demand omni-channel 

When orders are taken in a variety of channels like b2b e-commerce, Shopify DTC, and even fashion department store e-commerce through EDI dropship, AIMS360 can work with clients to do sewing and printing of t-shirts on demand, this happens in a fashion omni-channel scenarioThe customer order arrives, on-demand production is immediately created, the goods are allocated for the ordersand inventory is updated to all channels. Once production finishes, the t-shirt is shipped out and the system automatically finishes out the process. 

Traditional apparel manufacturing vs apparel manufacturing on-demand (MOD) 

Manufacturing on demand (MOD) in fashion has multiple advantages including allowing companies to stay lean on inventory. The disadvantage is manufactures are producing large quantities of fashion styles and keeping it stored until shipment, which makes it difficult for apparel manufacturers because it requires forecasting, and inventory to be held. 

Producing excess products that do not sell can consume valuable dollars that could be used elsewhere and lead to dangerous discounting and  inventory becomes a bigger problem.  Discounting to sell off inventory lowers margins and destroys brand equity. It promotes discount savvy shoppers that will continue to hold out for cheaper options. 

Using an apparel software for on-demand helps sustainability  

More than 15 million tons of used textile waste is generated each year just in the United States. Consumers are more concerned about sustainability of what they buy. In a recent study by Vogue Business gen z age group answered they would pay 50% more for a sustainable t-shirt.  Manufacturing on demand is highly sustainable as most of the product is not produced until it is ordered. 

Made in USA clothing factories  

Many brands are setting up in-house factories and are experiencing cost savings using manufacturing on demand where most of their fashion production can be brought back to the USA.  

Recently AIMS360 setup multiple customers to do on-demand production. What these companies realized is that on-demand manufacturing is very flexible. It can be isolated to certain products or even certain processes. For example, a clothing manufacturer may produce only non-core styles on demand. Since core styles are always selling, the non-core styles are the ones at risk of not being sold.  

How does a fashion business get started with an apparel software? Is it complex?  

AIMS360 can show you automations that facilitate the whole process from order to production and delivery. Because a lot of the process is automated it will reduce the complexity of manufacturing on demand.   

Contact AIMS360 for a demo today. 

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