31 May, 2022

Why denim retailers need better order mgm

Denim retailers and the importance of order management systems

The global fashion market is worth over $3 trillion dollars, and 2% of that market is made up of denim retailers. Massive denim companies like Levi Strauss & Co. have recently realized they could be saving huge amounts of money with better order management software  — so they’ve decided to upgrade. Here’s why great order management software makes a massive difference for denim retailers — and why it might make a massive difference for your company, too.

Understanding top denim companies’ market value

What’s the market value of Levi’s and others, and what kind of sales are they doing? Let’s explore the top 5 denim companies in the world:

  • Levi’s
    • Market Value: USD $7.6 billion
    • Sales: USD $4.75 billion
  • DIESEL
    • Market Value: USD $4.4 billion
    • Sales: USD $2.1 billion
  • GStar Raw
    • Market Value: USD 1.65 billion (market value) –
    • Sales: USD 810 million (sales)
  • Pepe Jeans
    • Market Value: USD $1.1 billion
    • Sales: USD $575 million
  • True Religion
    • Market Value: USD $925 million
    • Sales: USD $470 million

 

With these kinds of numbers, even the smallest inefficiencies can make a huge difference. Let’s see why Levi’s might have decided to make a change in their order management systems.

Analyzing the denim fabric market through 2025

Let’s take a look at some numbers, according to the Global Denim Market Report:

 “The global consumption of denim fabric increased from 5.5 billion meters in 2012 to 6.6 billion meters in 2016, at a CAGR (compound annual growth rate) of more than 4.77%. In 2016, the global denim fabric market was led by China, India, Europe, and North America. Today, the major manufacturers of denim fabric are concentrated in China and India.

In terms of volume, the global denim fabric market moved 6.6 billion meters in 2016 and is predicted to reach 9.1 billion meters in 2023, with a CAGR of 4.7% from 2016 to 2023.

Denim fabric is used in various types of clothing, household items, cowboy accessories, and more. However, the global denim fabric market is mainly driven by a growing demand for clothing. 

The global denim fabric market was valued at $19.7 billion in 2017 and will reach $25.4 billion by the end of 2025, growing at a CAGR of 3.2% during 2019-2025.”

The key suppliers of denim who are associated with denim giants like Levi Strauss & Co. are from all around the globe. Here’s a list of some of the biggest ones:

  • Vicunha, Canatiba, Isko, Arvind, Aarvee, Nandan Denim Ltd, Santana Textiles, Weiqiao Textile, Partap Group, Black Peony, Orta Anadolu, Jindal Worldwide, Etco Denim, Raymond UCO, Bhaskar Industries, Sangam, Oswal Denims, Suryalakshmi, Xinlan Group, Artistic Fabric Mills, Foshan Seazon Textile and Garment, Cone Denim, Zhejiang Sitong Textile Fashion, Weifang Lantian Textile, Bafang Fabric, and KG Denim.

Since these companies are from all over the world, it’s important that the supply management system of these retailers remains resilient. With so many players, and such massive quantities, it’s very important to be as precise and transparent as possible.

On top of that, denim retailers also divide fabric into multiple categories: light denim fabric, medium denim fabric, and heavy denim fabric. This means that order management systems need to help keep track of product type, product development stage, and varying processing techniques. So, how do these companies keep track of all kinds of stock levels, replenish their warehouses in a timely fashion, and make sure everything runs smoothly? That’s where fantastic order management software is extremely beneficial. 

Reducing waste with textile circularity

Historically, fashion companies have been very wasteful. Recently, Levi Strauss & Co., along with many other large denim companies, have started to emphasize sustainability. Concepts like textile circularity cut down on waste by using recycled materials.

The term ‘textile circularity’ is closely related to “circular economy” – where inefficiencies and waste are greatly reduced. Essentially, textile circularity allows denim to be reused, giving clothing a ‘second life’. However, In order to have true textile circularity, it’s very important to be organized. Once again, that’s where great record keeping and fantastic order management software is necessary.

So, why did Levi Strauss & Co. switch management systems?

“The previous order management system for Levi’s was reducing the company’s customer service options. The limitations of the system meant that Levi’s often couldn’t help a customer until post-shipment, which is potentially problematic for customers that wanted to alter their order or payment before it shipped,” says Chane Steiner, CEO of Crediful.

Steiner further added, “With the need to reach global markets, Levi’s needed a system that would allow for global integration. Third-party retailers, distributors, and shipping companies needed to be compatible with Levi’s in order to address their fulfillment needs.”

What order management software did Levi’s choose?

Ultimately, Levi’s chose an order management software called Manhattan, Still, however, there are many questions as to whether this software will be able to fulfill their requirements. Manhattan doesn’t offer as many features as Cin7, and they also don’t offer a free trial — so it would be hard to tell whether or not it would be the right order management software for you.

With Cin7, you can add automation to your most complicated processes and seamlessly operate your online selling business. We offer real-time updates and order synchronizations — so you’ll always have precise and actionable data at your fingertips. Plus, we provide a number of vital integrations (shipping, orders, supply chain, accounting, customer support, etc.) to make sure everyone in your company is always on the same page.

Should Levi’s have gone with Cin7? We might be biased, but we definitely think so! Get a demo of Cin7 today and see how a partnership with us can help save you money, time, and effort.

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