Before Covid, we had begun seeing changes within the fabric industry.
The increasing use of digital printing was the major driver of change at that time. Then, Covid hit. And like all industries, the fabric companies had to make adaptations to not only their supply chains, but also to how their companies were run.
As we came out of Covid, the fabric companies continued to morph. Digital printing became the norm, not the exception, for printed fabrics. But, another facet of the industry also has changed, partially driven by digital printing, and partially due to lessens learned during Covid. And that is how companies inventory fabric.
It used to be that fabric companies would inventory vast amounts of goods. Production runs were large, and as long as an item was running, availability was pretty much guaranteed.
That is no longer the case. Digitally printed fabrics can be printed very quickly, production times have been cut. And while the transportation times remain the same as they always have been, the shortened production time makes for a much shorter time from ordering to delivery. The lead time has been cut.
But there has not been any changes to how woven fabrics are produced. The production time and transportation time have remained the same.
As opposed to always having stock on hand, many companies, not all, but quite a few, only run a fabric when enough orders have been placed to make it worth while. The process is to get enough orders prior to an order placed with a mill, so that by the time the fabric is landed, it is all allocated, except for a few yards here or there. This means a company is not sitting on inventory, and not paying for storage.
We are seeing more and more of this. This is one of the lessons learned during Covid. Basically either people will wait for the goods, or… tough. And many companies are embracing the idea. Small runs, with the majority of the fabric being presold, and with less storage needed, all cut costs, which is beneficail for a company.
But, for the consumer, just as there were issues during Covid when the supply chains were an issue, this creates problems.
When a company gets enough orders to run a pattern, they place the order. Let’s say the lead time is eight weeks. So, the order gets placed with the mill, with a specific percentage of it being allocated before the order is placed. More orders might come in before it has landed. If they do, and if the company can fill those orders with their current order placed at the mill, then there isn’t a problem.
But, if a new order comes in, and if all the fabric has already been allocated, or it is the only new order, then the buyer has to wait. And, who knows how long they might have to wait until other orders get placed with the company, so that the company will place their order with the mill. And, there in lies the problem. Unless one’s order goes in with a currant order that has not been totally allocated, one might be waiting weeks or months.
This is the new norm. Do we like it? No… but, it is the way some, not all, fabric companies are handling their inventory. And, I do not see it going back to the old model.