In this blog post, Sharon Lim, Chairwoman of Browzwear, shares her insights on sustainable venture-building and the critical balance of fashion inventory in creating a resilient, eco-conscious supply chain—topics that will be increasingly important for the fashion industry in 2025 and beyond.  

Balancing Fashion Inventory: A Critical Industry Challenge  

In the fashion industry, balancing overstock and stockouts is a persistent challenge. Traditional planning methods—relying on historical data, store capacity, contractual obligations, and supply chain constraints like minimum order quantities (MOQs)—are often static and unable to adapt quickly to shifting market conditions. This rigidity becomes particularly problematic when long lead times—typically 100 to 200 days from factory orders to in-store delivery—create significant risks due to gaps between planning and actual delivery.  

External disruptions, such as pandemics, geopolitical events, and logistical failures, further exacerbate these challenges. Many brands respond by overstocking to cushion against uncertainties, but this leads to the irreversible environmental cost of unsold inventory and waste.  

Additionally, brands often shift financial risks onto supply chain partners by extending payment terms or, as seen during the COVID-19 pandemic, canceling orders. These practices result in environmental harm and social injustices within the supply chain. In response, the International Apparel Federation (IAF) advocates for ethical purchasing frameworks to address environmental and social costs.  

Avoiding Stock Imbalances and Improving Profitability  

Fashion companies must adopt more agile, data-driven inventory management strategies to avoid costly stock imbalances and improve profitability. Brands like Resonance and Hanin have achieved greater agility by leveraging AI-driven demand signals, real-time data, and smart manufacturing technologies. These tools enable a shift from static planning to dynamic, responsive systems that can quickly adapt to changing demand and logistics disruptions.  

A notable example from outside the fashion industry illustrates this potential: a major supermarket chain uses AI models to analyze global news alongside internal data to anticipate disruptions in shipping routes. This approach allowed them to proactively adjust their sourcing strategy before the predicted disruption occurred. While this level of sophistication is still emerging in fashion, it highlights the power of real-time data and AI in optimizing supply chains. Fashion brands can adopt similar strategies to predict demand better and minimize the risks of overstocking.  

Improving Demand Forecasting Strategies  

Fashion brands looking to improve their demand forecasting should focus on utilizing real-time data and AI models to enhance their responsiveness. By integrating cloud-based platforms and data analytics, brands can dynamically adjust their strategies and avoid relying on outdated, static forecasts. These AI models can help merchandise teams, designers, and production departments align more closely with actual consumer demand, reducing waste and improving profitability.  

Although some brands have yet to fully embrace sustainable practices, those adopting data-driven approaches to their operations are seeing significant benefits. The key to better forecasting lies in leveraging real-time insights to create smarter, more efficient supply chains. 

Digital Transformation: Reducing Overstock Through Technology  

Digital transformation has proven to be a powerful system & process overhaul for reducing overstock and improving supply chain efficiency. Fashion companies like Hanin and Resonance have embraced digital product development, data-driven collaboration, and smart manufacturing technologies to achieve greater operational agility.  

By shifting from static to dynamic inventory planning, these brands can scale more sustainably, minimize waste, and enhance profitability. Integrating digital strategies is no longer optional—it’s essential for fashion businesses striving to thrive in an increasingly competitive and environmentally conscious market.  

Implementing Sustainable Practices in Fashion Supply Chains  

As sustainability regulations become more stringent, fashion companies must adapt to new requirements in eco-design, carbon footprint reduction, waste management, and ethical labor practices. Emerging technologies, such as digital passports, lifecycle assessments, and sustainability indices, are helping brands navigate these complexities. New regulatory frameworks, including carbon border adjustments and textile labeling requirements, will soon influence how fashion companies design, manufacture, and dispose of their products.  

While these regulations pose significant challenges, they also offer opportunities for brands to lead in sustainability. The path to a sustainable supply chain may be demanding, but every step forward is a step in the right direction. As I often say, "A journey of a thousand miles begins with a single step." Fashion companies must act now, collaborating with partners to accelerate sustainability efforts and leveraging technology as a key enabler.  

Common Sustainability Misconceptions  

One of the biggest misconceptions about sustainability is that it’s a one-off fix or a simple process. In reality, it’s an ongoing journey of transformation that requires commitment, resources, and the right partnerships.  

Companies are increasingly aware that embracing sustainability is challenging, but the journey must begin with that first step and keep moving forward. At Browzwear, we are committed to supporting our partners in this transformation, offering technological solutions & services that make the heavy lifting easier and more manageable.