Executive Summary
A thorough analysis well-structured analysis of the operational issues within the global fast- fashion retail industry has been identified. Some of the major resources of the operational challenges have been analysed which has affected different levels of operations in the industry. However, the application of different types of operational management frameworks like Six Sigma, JIT, and many more appropriate and sustainable approaches can be implemented within the companies.
1.0 Introduction
The industry of fast fashion has been identified as involving different types of affordable pricing strategies along with time management approaches which help increase the global fashion retail industry. Several brands in this sector are producing and distributing new collections of fashion rapidly based on the current trends of the runway and the preferences of the customers (Peters et al., 2021). This quick change of fashion has been identified as involving important logistics and operational approaches within which the presence of efficiency management protocols is important for the further maintenance of sustainability.
Figure 1: Fast Fashion Market Value Forecast
(Source: Statista, 2024)
Some of the best fashion retail companies are Zara, H&M, Uniqlo, and many more with an increased range of sales between USD 33.7 billion to USD 22 billion (Statista, 2024). Through
this analysis, the appropriate involvement of the frameworks and practices will be identified within the industry of fast fashion which can further help in managing operational approaches as well.
2.0 Operational Challenges in the Fast Fashion Industry
2.1 Operational Disruptions Source
Several operational challenges are faced by the industry of fast fashion while affecting the main activities of this industry. Some of the disruptions mainly develop because of the increased presence of shortages of raw materials and also issues involving the reliability of the suppliers (Zanjirani Farahani et al., 2022). For example, the presence of cotton shortages mainly happens because of the involvement of poor environmental and harvest factors which can further decrease the production schedules along with the costs of the materials. All the brands of fast fashion mainly depend on the suppliers for maintaining the speed of production along with the maintenance of the levels of consistency.
Figure 2: Major Operational Challenges
(Source: Fibre2Fashion, 2019)
As an example, the band H&M has also been identified to be facing criticism for its operational impact on the practices of sustainability while printing the use of organic materials (Sawant, 2023). This has indicated that increased maintenance of different ethical and environmental concerns can develop more challenges like analysing appropriate sustainable practices. Some other sources of disruptions involve customer service and quick control approaches.
Delays in the products and material distribution at the time of the peak seasons can often decrease the appeal of the brands as fashion trends change quickly (Martino et al., 2017). Furthermore, the issues related to quality control mainly increase because of the presence of poor services or not developing alignment with the identified business models.
2.2 Impact on the Customer Services
The overall impact of the challenges related to sustainability, customer behavioural shifts, and digitalisation has affected the overall experiences of the customers as well within the industry of fast fashion. Along with affecting the experiences, the challenges have affected the reputation of the brand while creating more pressure on the service teams (Wen et al., 2019).
Furthermore, among customer services, an increased level of quality concerns have also been seen which has affected the satisfaction rates of the customers as well. Boohoo being a well-known brand faced increased levels of criticism because of the provision of decreased quality garments mostly because of operational issues (BBC News, 2023).
Overall, the maintenance of the operational issues within the fast fashion industry needs to be done by developing a balance within turnover rates and maintaining low costs while meeting customer expectation levels.
3.0 Application of Theoretical Concepts and Frameworks
3.1 Quality Management Techniques
The maintenance of quality management is important in the fast fashion industry as it helps meet the expectations of the customers while managing the speed of production (Piippo et al., 2022). The use of Total Quality Management or TQM model can help in maintaining the approaches involving customer-centric expectations within all departments in the industry.
Some of the fast fashion brands such as Zara involve TQM for managing the quality standards of their products while enhancing the processes of production (Costa et al., 2017). On the other hand, the presence of the Six Sigma framework in the industry helps in managing any kind of defects while planning to achieve appropriate decision-making criteria.
Figure 3: Six Sigma Model of the Fast Fashion Industry
(Source: Self-created)
Some of the global fast fashion brands like H&M through adopting this Six Sigma model are capable of increasing the level of efficiency in their operational functions while targeting to decrease waste and issues related to quality (Tubic and Von Jutrzenka, 2024). On the other hand, the presence of lean management approaches as part of the quality management techniques can help in managing the operations while focusing on involving better resources for cost savings and also for utilisation.
3.2 Supply Chain Management Models
Some of the important supply chain models like risk management frameworks, agile supply chain, and Just-In-Time or JIT have been identified to be providing most of the support within all the fast fashion brands for achieving better responsiveness and flexibility. The use of the JIT model help in decreasing the overall holding costs of the inventory while focusing on receiving different types of goods based on the requirement (Pisch, 2020). Some of the brands like Uniqlo have incorporated JIT for managing their inventory levels while focusing on the management of all the main operations. On the other hand, the use of agile supply chain models can help in managing responsiveness while allowing brands like Zara and others to adapt to current trends in fashion (Alam, 2022). Lastly, the use of frameworks related to risk management approaches can help in maintaining the issues related to the supply chain within the brands of the fast fashion industry. Moreover, as per Rokhzad (2023), the use of Minimum Quantity Replenishment or MQR has also been identified as an important component of the fast fashion industry for managing inventory and flexibility within the operational services.
3.3 Impact of Globalization and Technology
Technology and globalisation have helped transform the industry of fast fashion while focusing on the inclusion of faster and more efficient approaches to the supply chain. The increased use of technologies involving artificial intelligence or AI along with the Internet of Things or IoT has helped brands in predicting current fashion trends while optimising the logistic functions (Rathore, 2019). Furthermore, the use of the algorithms developed by the use of AI can help in analysing the preferences of the customers while tracking the approaches of the supply chain along with the reduction of the delivery times. As per Préau and Ecole (2019), globalisation, on the other hand, is also capable of managing challenging situations among suppliers while managing all the associated risks.
3.4 Sustainability and Ethics
For the management of environmental impact, the brands of the fast fashion industry are planning to adopt more effective economy practices along with ethical sourcing so that the choices of involving eco-friendly materials can be made. As, in the company, H&M the development of the garment collection programme has helped in encouraging all the customers to return their used clothes while supporting the idea of a circular economy and it can also help in reintroducing the materials within the cycle of production (H&M, 2024). Through the incorporation of appropriate sustainability practices the ethical responsibilities among the customers can be maintained along with the efficiency levels of the operations.
4.0 Proposed Solutions
For the development of better operational management approaches in the fast fashion industry, there is a requirement to develop a strong relationship with the customers while focusing on the management of sustainable practices and resource allocations. Through collaborating with the suppliers increased dependency on any single supplier can be mitigated along with the maintenance of appropriate sustainable practices to maintain the expectations of the customers (Hedrich et al., 2021). For example, the sustainability efforts taken by the brand H&M involved different types of recycling initiatives as well for encouraging the practices of sustainability.
On the other hand, in brands like Zara the incorporation of an agile supply chain has helped in developing a quick response for understanding current fashion trends (Sinha, 2024). Moreover, it is recommended to include different types of distribution networks for increasing the quality management approaches and the inclusion of customer-centric strategies can help in the provision of better services like fast delivery and many more. As per Rejeb et al. (2019), the inclusion of different predictive analysis technologies can help in maintaining automation approaches in the fast fashion industry while increasing transparency levels for the supply chain processes.
5.0 Conclusion
The overall analysis has helped in the identification of the presence of different types of unique intersection approaches that are capable of making changes in the quick production areas within the fashion industry along with the maintenance of cost efficiency levels. By focusing on the management of the quality and supply chain approaches the fast fashion industry needs to focus
on the implementation of different types of advanced technologies for further mitigation of the operational challenges. Some of the operational challenges have been identified to be related to the issues of sustainability and changes within the needs of customers along with the changes in the digitalisation. By focusing on sustainability approaches taken by some brands like H&M and Zara further mitigation strategies for decreasing operational issues can be developed.
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Reference List
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