US, UK fashion executives cite major supply chain gaps: Survey

A major survey of 250 senior retail executives across the US and UK reveals alarming gaps in fashion supply chain visibility, efficiency, and compliance readiness, according to the ‘Boosting Margins’ whitepaper by Avery Dennison.

Only 22 per cent of respondents rated their supply chain as ‘efficient and responsive.’ In contrast, 30 per cent described theirs as ‘highly problematic with regular disruptions,’ with C-level executives expressing this view most strongly (41 per cent).

Visibility remains a core challenge. Just 24 per cent of brands report full item-level visibility within factories and distribution centres, while 50 per cent claim only partial visibility. One in four fashion leaders (25 per cent) admit to limited or no supply chain insight.

Technologies remain underutilised—42 per cent in the UK and 38 per cent in the US still rely on spreadsheets for inventory tracking, and 20 per cent of all respondents continue to use manual data entry, as per the report.

Raw material traceability and provenance emerged as the most pressing challenge, cited by 24 per cent of all respondents. This was followed by labour and resource shortages (22 per cent), customs and compliance issues (20 per cent), and inventory loss or shrinkage (19 per cent).

Regional trends show UK brands are more concerned with labour shortages (27 per cent), while US brands prioritise raw material traceability (24 per cent).

The lack of item-level visibility has direct business impacts. Around 30 per cent struggle with last-minute garment labelling changes, and 25 per cent face compliance risks due to insufficient traceability. In the US, 33 per cent report difficulties identifying disruptions in real-time, compared to just 20 per cent in the UK.

Despite these challenges, 65 per cent of all respondents believe that greater collaboration with suppliers and investment in visibility technologies—such as RFID tags, blockchain, and IoT sensors—would significantly improve efficiency. Yet, readiness for regulatory compliance remains weak.

Nearly half (49 per cent) of all fashion retailers are unprepared for the EU’s incoming Digital Product Passport (DPP) regulations, with only 19 per cent of US and 14 per cent of UK companies saying they are ‘very well prepared.’

ALCHEMPro News Desk (HU)