Today’s customers are conscientious and want to know more about the products they purchase, especially for health and personal care items.

According to a Forbes article, a recent report by Label Insight found that 94 percent of consumers would be more loyal to brands that practice transparency, while 56 percent claim that brand transparency would make them “loyal for life.”

Read on to learn more about the importance of transparency for building brand trust.

Keep it clean: ethical sourcing and sustainable practices

When consumers demand “clean” products, they’re not just talking about product ingredients. They want to see transparency in the supply chain—from the origins of ingredients to the ethical practices behind them. Key issues include:

• Clean beauty movement: There’s a growing desire to see transparent ingredient lists and “clean” formulations.
• Ethical practices: The conditions under which items are produced matter, including Information about labor practices, animal testing and sourcing.
• Sustainability: Green initiatives are driving demand for eco-friendly products and sustainable practices, including packaging, sourcing and production.

Companies who offer transparency in their sourcing practices boost consumer trust. When brands openly share where and how they source their ingredients, they also demonstrate a commitment to ethical practices.

Brands who can share information about sustainable practices throughout the supply chain also elevate their credibility as conscientious, trustworthy companies.

Provide clear information: safety through traceability

Health and personal care suppliers rely on traceability to ensure product safety and quality, but the complexity of global supply chains makes it challenging to keep track.

To modernize, suppliers are replacing manual processes with digital solutions for everything from tracking raw materials to fulfillment and transportation logistics.

Innovations such as blockchain technology and the Internet of Things provide real-time, end-to-end tracking, allowing every step of the supply chain to be recorded and monitored.

These digital solutions can not only enhance efficiency, visibility and accountability, but also ensure the safety and quality of products and improve the ability to manage recalls.

Be proactive: effective recall management

The way a company manages a recall can make or break consumer trust in their brand.

While a poorly managed recall can damage a reputation, a well-managed recall not only demonstrates a commitment to safety and transparency but also encourages loyalty.

Key strategies for a proactive recall include:

• Develop a process: Plan a clear and efficient recall process to ensure that any issues can be addressed swiftly and effectively.
• Communicate openly: Provide all necessary information and updates openly and honestly, including detailed information about the recall process and what consumers need to do.
• Be visible: Use multiple channels to reach consumers, including social media, email and company websites.

Being proactive not only mitigates the risks of immediate harm to your reputation but also reinforces consumer confidence that they can trust your products in the future.

Authentic transparency builds success

In an era where consumers demand access to complete product information, transparency in the supply chain is not just a nice-to-have; it’s essential. Brands that can provide clear, detailed and honest information will be the ones that thrive.

By prioritizing ethical sourcing, embracing digital traceability and implementing proactive recall management strategies, you can build and maintain consumer trust.

SPS Commerce is ready to be your partner in building a more robust and transparent supply chain, with our team of experts offering the people, processes and technology to not only make you more efficient, but support trust in your brand to maximize your success.

Fashion suppliers are dealing with the complexity of global supply chains, rapidly evolving regulations, economic uncertainty and consumer shifts in behavior and preferences.

Building supply chain resilience requires tackling these challenges to mitigate disruptions, reduce costs and improve customer satisfaction.

Challenges to building a resilient fashion supply chain

Suppliers in the fashion industry need strategies to deal with several key challenges.

Global supply chain complexity: Many fashion and apparel manufacturers’ supply chains are global—where materials might be sourced from one country, manufactured in another and distributed worldwide. By its nature, a global supply chain adds layers of complexity and vulnerability to disruptions, including:

• Geography-specific issues – Natural disasters can impact the availability and costs of key materials, while environmental concerns may affect how goods are sourced.
• Geopolitical tensions or events – Issues in one region can have world-wide effects, from disruptions in key trade routes to global pandemics.
• Transportation issues – Port congestion, accidents or labor disputes can result in shipping delays, putting brands in danger of missing critical sales seasons.

Regulatory compliance: Global brands may need to follow both US laws and EU regulations that protect workers and consumers and ensure environmental sustainability.

• Industry regulations – Suppliers need to keep up with and meet ever-changing standards—from product safety, to labeling, environmental and import/export regulations.
• ESG – Retail trading partners may have required standards for company practices that impact the environment, society and corporate governance (ESG).

Economic uncertainty: Suppliers are being pressured to adapt their operations to the economic downturn realities of reduced demand and price sensitivity. After years of high inflation and fluctuating exchange rates, the threat of proposed tariffs and how to handle their impact is a particularly tricky issue to navigate.

• Likely tariffs – Because countries like China are a major source for textiles, fabrics and clothing, and Mexico and Canada may provide raw materials like cotton and leather, proposed tariffs could hike productions costs for many brands.
• Antiquated supply chains – Suppliers need to look at not just the immediate cost impact of tariffs, but how they can restructure inefficient supply chains to be more agile and able to pivot quickly when costs rise.
• Sourcing challenges – For sustainable fashion brands and retailers with higher ethical standards, switching to new suppliers that meet strict standards can take time and effort.

Shifting consumer demands: Suppliers need to adapt to changing consumer behaviors to continue to inspire and meet demand.

• Omnichannel availability – Post-pandemic, consumers continue to prefer online shopping as a sales channel, expecting both e-commerce and brick and mortar options for both sales and returns.
• Demand for sustainability – Consumers increasingly demand transparency and ethical behavior from brands, including wanting to know clothing sources, requiring sustainability and a reassessment of fast fashion practices and the resulting waste.

Digital transformation obstacles: A critical roadblock to improved supply chain agility is difficulty managing and analyzing data. Suppliers need actionable data, but often struggle with:

• Siloed or disparate systems with unclear data
• Difficulty gaining insight into retailers’ sales and inventory data
• Demand forecasting accuracy

Best practices to build a better supply chain

Solutions for building a more agile and responsive supply chain in the fashion and apparel industry focus on technology adoption and integration, sourcing strategies and strategic collaborations.

Technology integration: Modern supply chains rely on the integration of technology into not only order-to-cash processes, but data analytics for demand forecasting and future planning. Ideally, all seamlessly integrated into your existing ERP, WMS, TMS and eCommerce tech stack.

• Process automation – Update manual processes for routine tasks such as order processing and inventory management with an automated fulfillment solution to ensure faster response times to changing conditions, reduced disruptions and improved supply chain resilience.
• Data analytics – Gain access to more complete and accurate supply chain data to enable more informed decision-making, efficient inventory management and accurate demand forecasting for a more transparent and responsible supply chain.
• Demand forecasting – Predictive analytics and data-driven tools can better align production schedules and inventory with consumer demand, mitigating risks of stockouts or overstocks, forecasting trends and potential disruptions.

Sourcing strategies: To build a resilient supply chain, suppliers need to think about how they can navigate risks to maintain agility when necessary.

• Localize sustainability – For sustainable fashion brands, work with local suppliers to reduce your reliance on global shipping and minimize environmental impact.
• Supplier diversification – Diversify suppliers and manufacturing locations to reduce dependency on a single region and mitigate the impact of regional disruptions while balancing the strengths of various sourcing regions.
• Nearshoring Strategies – Reshore production and source materials domestically if it cuts costs and the supply chain risks of the import tariffs.  Regionalizing production also reduces transportation times and costs while addressing sustainability goals.

Strategic partnerships and collaborations: Establishing strong, collaborative relationships is an essential strategy for successful management in times of disruption.

• Stronger collaboration – Close collaboration with suppliers ensures a seamless flow of information, enabling rapid adjustments in production schedules. When you prioritize building long-term partnerships, suppliers are more likely to offer flexibility in times of crisis, whether by providing alternative materials or adjusting production timelines. SPS solutions enable suppliers to stay up to date on trading partner requirements with real-time communication about order and ship updates, while analytics strengthens partnerships by providing data-driven recommendations.
• Collaborative initiatives – Opportunities to collaborate across the industry are available in various forms, such as sustainability alliances to share best practices, advocacy and standards, and communication platforms such as the Conscious Fashion Collective.
• Collaboration tools – If your trading partners require you to share emissions data or you’re looking for insights to improve your sustainability performance, the partnership between Optera and SPS Commerce helps you demonstrate your commitment to sustainability.

Successful navigation of challenging times

While it’s never been more challenging to build a resilient supply chain in the fashion and apparel industry, you can take proactive steps to address issues and mitigate risks.

SPS Commerce is ready to be your partner in building a more robust and adaptable supply chain, with our team of experts offering the people, processes and technology to streamline your processes to future-proof your supply chain and not only survive rough times, but maximize your success.