Avery Dennison research: many US and UK fashion retailers are shrouded in supply chain fog

A new Avery Dennison report flags many fashion retailers struggling with serious item level visibility limitations.

The findings are based on a survey of 250 senior fashion retail supply chain leaders in the UK and US.

While half of those surveyed say their company has ‘visibility into most items’, 25% have ‘limited or no visibility’ at the item level in factories and distribution centres. The research also reveals that the supply chain is ‘highly problematic with regular disruptions’ for 30% of respondents, while only 22% categorise it as ‘efficient and responsive’.

Six in ten of the smaller companies, those with annual revenue between $1 million and $9.99 million, feel they have full visibility. Surprisingly, larger companies appear to be impacted the most by a lack of visibility, with only four in ten of firms with annual revenue above $1 billion believing they have a complete view.

Full visibility was found to be most challenging for medium sized retailers with only one in ten of the $250 million-$499 million revenue cohort saying they had achieved this. Only six out of the 250 companies surveyed (which were split into six different revenue categories) had ‘no visibility’.

“Trying to operate without clear visibility into your supply chain - essentially operating in a supply chain fog - makes it impossible to track the movement of inventory and deploy data analytics to reduce waste,” says Delia Glover, Vice President of Product, Innovation, and Solutions Development at Avery Dennison.

“Technologies such as RFID for item tracking help companies create a reliable data foundation. This will be essential for keeping up with fast changing sustainability regulations and improving efficiency across the board. Right now though, many fashion brands and retailers are finding it tough and costly to deliver the level of transparency that’s becoming increasingly mission critical.”

Recording last minute production changes and supply chain movements at the batch or pallet level constrains the precision of traceability and accountability. When decision makers were invited to select (up to four) challenges they face, due to a lack of item  level visibility in their supply chain, 30% cited last minute changes to garment labelling, rising to 42% for firms in the $500 million and $999.99 million revenue size bracket. 

Other top challenges selected include:

• Difficulty identifying supply chain disruptions in real time (26%)

• Reduced agility in diverting orders to alternative suppliers or destinations (25%)

• Inability to meet compliance requirements on materials traceability (25%)

Achieving more granular data is therefore a major opportunity for the industry. The survey found that two thirds of respondents see value in increasing collaboration with suppliers to this end. This would allow both parties to connect to data sharing and visibility in the sourcing and production process.

The same amount (65%) think investment in better supply chain visibility tech, (e.g. RFID tagging) would maximise supply chain improvement. This rises to 72% of vice presidents, the most senior executives questioned.

Glover says: “The report makes clear that improving supply chain transparency and visibility isn’t just about reducing waste or minimising profit loss, it’s also about building stronger relationships with partners and earning the trust of consumers.”

“With a portfolio of solutions like Optica, Avery Dennison helps businesses take control of their supply chain by providing item level data transparency from source to retail. By combining innovative hardware, RFID labels, and software including our atma.io connected product cloud - supported by in-field label printing technology, technical expertise, and global coverage - brands can navigate challenges and set themselves up for lasting success.”

2025 RTIH INNOVATION AWARDS

Supply chain technology will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which will open for entries in March, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.