Logistics is no longer solely about moving goods from one point to another. Supply chain orchestration has a direct impact on revenue, sustainability and customer experience, and the companies that recognize this are improving their position in the highly competitive fashion industry.

In a fireside chat with Sourcing Journal’s logistics editor Glenn Taylor, executives from transport and logistics firm DSV spoke about the wider implications of how goods flow from production to end consumers. As brands navigate challenging times, it has thrust this aspect of operations into the limelight.

“The only good thing that came out of all the disruptions we have found over the last years is that supply chain—not logistics, but actual supply chain—has become a boardroom topic, and that’s where it should be,” said Ronald Poort, executive vice president of the consumer vertical at DSV. “This is the distinction between you being successful in the fashion world or not.”

Working with a partner can help retailers overcome disruption, which could come in the form of weather events, geopolitical upheaval or trade changes like tariffs. Earlier this year, brands were faced with a conundrum: How would they access the valuable Middle Eastern market as ports in the region closed and flights were grounded? DSV was able to leverage its presence in the region to help partners continue to get goods into the area.

“The true nature of a partnership comes in when you have the disruptions, because everyone expects that everything always goes as planned,” said Lene Dalsgaard, chief commercial officer of air & sea at DSV. “But how you act, the alternative solutions, your business continuity plans that you put in place when you have the disruptions, that’s where we come in and show our value to our customers.”

Disruption is often associated with upheaval, but sometimes it can come from a business positive, like a sudden spike in demand from an influencer mention. To help customers navigate turbulence, DSV turns to visibility tools and real-time data. “How we act in a crisis and how agile we can be is also where visibility really makes a difference,” said Dalsgaard. “The IT side, the tech side, is going to be super critical for the next many years to come.”

Fashion’s tough-to-sense demand, wide range of channels, high SKU counts and seasonality make omnichannel fulfillment complex. To provide the best possible flexibility, Poort suggested that companies first view their inventory as a whole rather than allocating goods to particular channels too soon. This allows them to react and be able to serve customers—whether they are shopping in store, picking up at a locker or having goods delivered to their home.

“At the end of the day, product is made somewhere and needs to be delivered to the consumer somewhere else,” said Poort. “Make sure that you have all the options available.”

Also complicating operations is fashion’s high return rate, requiring firms to focus not only on the outward flow of goods, but the inbound as well. To make reverse logistics smoother and more cost effective, Poort suggested keeping salable product—especially evergreen goods—closer to the delivery market rather than sending it back to the original distribution center, preventing unnecessary shipping. Fashion can also take a page out of consumer electronics’ playbook and recoup value from returned merchandise through repair and reconditioning.

“Our fashion customers face a high percentage of returns,” said Poort. “We have to do everything within our capabilities to reduce that, but when you have them, treat it as an opportunity.”

Watch the video to learn more about building resilient supply chains.

Logistics is also on the agenda for Sourcing Journal’s Fall Summit on Sept. 29. Join us live to meet DSV and hear mainstage discussions on improving supply chain management.

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