José Ferreira and Ricardo Tadashi of Sao Paulo based Ábaco Consulting, an SAP partner company, on the role of AI and ML in management technology for the fashion industry.
In the fashion universe, whether in the production of the textile, clothing or footwear sector, dealing with the trends of each season and the growing personalization of consumers are aspects that further expand the traditional challenges of this market, which involve the diversity of products – covering sizes, colors and models – seasonality and rapid obsolescence cycles.
Added together, this whole scenario requires precise and agile decisions to avoid waste, excess inventory or lack of strategic products.
Planning in this environment goes beyond the practices rooted in this industry, which involve creativity and product innovation. Short and inconstant cycles, mass customization and products that go in and out of line quickly are current complexities, in which technology has increasingly proven to be an ally of the sector.
When we think about management software, they help with issues such as controlling production versions and product inventory, as well as monitoring and costing production orders.
More mature systems cover these demands in a complete way, promoting the registration and control of product sizes, colors, and versions without the need to create numerous SKUs (in Portuguese, Stock Keeping Unit), reducing the difficulty of managing product grids, in addition to promoting real-time visibility, process automation and customization support.
For this, the management system needs to be integrated with other specialized software, which will ensure greater efficiency and control.
But when we talk about shaping the future of the sector, which is increasingly competitive and dynamic, planning is the key to impacting results. The search for agility, the pressure for sustainability, and the need to serve increasingly demanding consumers bring impasses to managers when it comes to balancing factors that directly affect the profitability and reputation of brands. And the answer to this challenge lies in planning.
The integration of management software with planning applications brings industries leverage that is fundamental in this dynamic market.
Obtaining a strategic and collaborative view between production, sales and logistics through the stratification of historical data is a way that allows companies to ‘design’ the possible future shape of demand – helping to obtain scenarios for a more refined analysis of sales possibilities.
A better vision and accuracy of purchase, production and service plans provide gains in scale in the management of these processes. These predictive analyses allow industries to perceive possible future operational impacts, such as lack of production capacity, or of some material or even finished product to perform retail service.
The assertiveness obtained in the demand projections will directly impact the purchase and sale plan, which reduces inventories of both raw materials and finished products, allowing for more effective control.
Another gain is the reduction of product transfer in companies that have an extensive logistics chain, minimizing environmental issues. This scenario of control and predictability provides financial leverage and is still very attractive from a sustainability point of view.
The gains in the use of a planning system are immediate. The simulation of business scenarios with more profitability to meet demand, the correction of routes in relation to budgets and the strategic visibility obtained are inherent advantages of planning applications.
All this context presented can also be enhanced with the use of AI and ML from the analysis of consumption patterns to refine planning, providing a portrait of the particular taste of consumer groups from the perspective of products, regions, age groups and economic level. This information will allow a holistic and highly refined view of the production chain, ensuring agility, accuracy, and financial gains for companies.
For managers in the fashion industry, integrated management technology and planning is no longer an option, but a strategic necessity. In an increasingly competitive market, where personalization and sustainability are priorities, adopting solutions that support the dynamics of this market means turning challenges into opportunities. The future belongs to brands that, in addition to dictating trends, master the art of planning with data and innovation.
