Denim Sourcing: Diversifying Mill and Brand Strategies

Like the rest of the fashion business, the denim category has experienced a wakeup call on the pitfalls of putting all their sourcing eggs in one basket. Relying too heavily on one part of the world puts companies one Covid outbreak, geopolitical disturbance or port labor shortage away from missed or delayed orders. Unlike narrow sourcing maps that can create bottlenecks, geographically diverse supply chains leave companies with a backup plan when disruptions occur. Additionally, moving more production closer to the end consumer can speed up development timelines and streamline collaboration.

While a widespread sourcing map is strategic, diversification is not solely about finding Tier 1 suppliers in new locations and countries. It’s also imperative to safeguard the entire supply chain back to raw materials. This is particularly important in denim, since part of the product differentiation comes from material choices. Picking innovative fibers that offer new performance, comfort or sustainability benefits can elevate a classic five-pocket jean’s consumer appeal. Often, emerging fiber offerings are limited by scant supply chains, but partnerships and investments could support broader adoption of these materials.

• The top trends in nearshoring for denim production
   
• What companies should know before relocating or geographically expanding their manufacturing map
   
• How mills and brands weigh factors like sustainability, pricing and reliability when making material and manufacturing sourcing decisions
   
• What developments could raise the availability of emerging and eco-friendly fibers
   
• How sourcing has been impacted following natural disasters in major cotton and denim producing nation
   
• Why diversification is not an independent endeavor, and best practices for value  chain collaboration