Diversification of Suppliers to Ensure Continuity of Wholesale Apparel Supply

This paper examines systematic supplier diversification as a key mechanism for ensuring the continuity of wholesale apparel supply under conditions of high volatility in global markets and escalating logistical and geopolitical risks. The study aims to develop and substantiate an integrative multi-sourcing strategy that combines traditional supply-chain optimization methods with advanced digital tools, enabling prompt response to disruptions. The relevance of this work is dictated by the concentration of over 70% of global apparel exports in Asia, a sharp rise in spot rates and an increase in transit times by 3–4 weeks, which have driven logistics costs up by as much as 20% and threatened disruptions during the golden quarter of sales. The novelty of the research lies in the combination of risk-pooling and postponement with formal segmentation methodologies and the digital-twin and control-tower platforms, as well as the introduction of financial models for evaluating the economic efficiency of diversification scenarios. The methodology is based on the analysis of 17 sources: UNCTAD statistics, McKinsey and Bain reports, industry case studies, and proprietary data from the Fashion Atlas Group, together with a quantitative assessment of key KPIs. The main findings demonstrate that a comprehensive approach—including geographical, structural, model-based, and logistical diversification—allows for reduction of safety stocks and smoothing of demand fluctuations, reduces Time-to-Recovery by 20%, and that the application of a digital twin plus control tower enables operational switching of supply flows in the digital circuit and shortens Time-to-Switch to 7 days. A practical case study of the Fashion Atlas Group, which has integrated over 600 factories and 40 brands, confirms the feasibility and significance of the proposed strategy for the fast-fashion industry. This paper will be useful to supply-chain managers, strategists, and researchers in the fields of logistics and fast fashion.

Authors

Institutions

Publication Details

Journal
Universal Library of business and economics.
Published
2025-06-30
DOI
https://doi.org/10.70315/uloap.ulbec.2025.0202007
Primary Topic
Supply Chain Resilience and Risk Management
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Diversification of Suppliers to Ensure Continuity of Wholesale Apparel Supply

Kostiuchenko Kyrylo
Universal Library of business and economics.
Supply Chain Resilience and Risk Management
article

Diversification of Suppliers to Ensure Continuity of Wholesale Apparel Supply

Kostiuchenko Kyrylo
article en

Abstract

This paper examines systematic supplier diversification as a key mechanism for ensuring the continuity of wholesale apparel supply under conditions of high volatility in global markets and escalating logistical and geopolitical risks. The study aims to develop and substantiate an integrative multi-sourcing strategy that combines traditional supply-chain optimization methods with advanced digital tools, enabling prompt response to disruptions. The relevance of this work is dictated by the concentration of over 70% of global apparel exports in Asia, a sharp rise in spot rates and an increase in transit times by 3–4 weeks, which have driven logistics costs up by as much as 20% and threatened disruptions during the golden quarter of sales. The novelty of the research lies in the combination of risk-pooling and postponement with formal segmentation methodologies and the digital-twin and control-tower platforms, as well as the introduction of financial models for evaluating the economic efficiency of diversification scenarios. The methodology is based on the analysis of 17 sources: UNCTAD statistics, McKinsey and Bain reports, industry case studies, and proprietary data from the Fashion Atlas Group, together with a quantitative assessment of key KPIs. The main findings demonstrate that a comprehensive approach—including geographical, structural, model-based, and logistical diversification—allows for reduction of safety stocks and smoothing of demand fluctuations, reduces Time-to-Recovery by 20%, and that the application of a digital twin plus control tower enables operational switching of supply flows in the digital circuit and shortens Time-to-Switch to 7 days. A practical case study of the Fashion Atlas Group, which has integrated over 600 factories and 40 brands, confirms the feasibility and significance of the proposed strategy for the fast-fashion industry. This paper will be useful to supply-chain managers, strategists, and researchers in the fields of logistics and fast fashion.

Universal Library of business and economics.Vol. 02(02)
University of North Carolina at Charlotte (US)
Openalex Percentile: Top 77%
Supply Chain Resilience and Risk Management
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.