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Fashioning Resilience: 5 Tech-Driven Strategies to Navigate Tariffs and Mitigate Potential Risk
In the fast-paced world of fashion, uncertainty is a constant companion. From sudden tariff impositions and currency fluctuations to supply chain disruptions and shifting consumer demands, the ability to adapt swiftly and strategically is a hallmark of successful brands. The good news? Technology offers a powerful ally in building resilience, and Centric Software is at the forefront of this transformation.
Here, we explore the top five ways fashion brands can leverage technology to weather uncertainty, illustrated through real-world examples.
1. Harness Real-Time Cost Visibility for Smarter Decisions
Unpredictable tariffs and transportation costs can disrupt carefully calibrated budgets. Having a clear, real-time view of landed costs (the total cost of getting a product to its destination, including tariffs, duties and freight), is crucial for making swift decisions.
Example:
A major fashion retailer faced a 25% tariff hike overnight due to a policy change. Leveraging Centric PLM, the brand recalibrated its landed cost models in real-time. This enabled the team to identify alternative sourcing options from countries with lower tariffs and align supply chain strategies with profitability goals — all before executives finalized their operational response.
How Centric PLM Helps:
Centric PLM’s cost modelling capabilities allow brands to simulate various tariff scenarios and adjust sourcing, pricing and product design strategies accordingly. By integrating landed cost insights into decision-making, brands can adapt proactively, safeguarding margins and mitigating risks.
2. Optimize Supplier Networks with Data-Driven Diversification
The pandemic taught fashion brands the importance of supplier diversification, yet many remain reliant on a limited number of suppliers. Centric PLM empowers brands to analyze and optimize their supplier networks using advanced data insights.
Example:
A contemporary fashion label, known for its sustainable collections, faced supply chain delays due to a regional crisis. Using Centric PLM, they swiftly identified alternative suppliers from regions unaffected by the disruption, ensuring product timelines stayed on track without compromising quality or sustainability commitments.
How Centric PLM Helps:
The platform centralizes supplier information, including certifications, lead times and cost comparisons. Its multi-source quoting tools allow brands to pivot sourcing strategies rapidly, ensuring agility in responding to global uncertainties.
3. Improve Inventory and Demand Forecasting with AI-Driven Insights
Forecasting demand accurately is a perennial challenge, especially in volatile markets. Overproduction leads to waste, while underproduction results in missed opportunities. Centric Software solutions integrate AI-driven forecasting tools to balance this equation.
Example:
A global luxury fashion house struggled to predict demand for its seasonal collections in the wake of fluctuating consumer spending. By implementing Centric’s demand planning features, the brand analyzed historical sales data, regional trends and price elasticity. This enabled them to produce the right quantities for each market, reducing inventory holding costs and avoiding markdowns.
How Centric Solutions Help:
Centric Software’s integrated platform leverages AI to provide actionable insights into market trends and demand patterns. By connecting this data to product development and production processes, brands can better align supply with demand, boosting both profitability and sustainability.
4. Streamline Product Development with Agile Collaboration
In times of uncertainty, speed and flexibility are critical. Traditional product development processes, often bogged down by inefficiencies, need to adapt to rapidly changing conditions. Centric PLM provides a collaborative digital workspace that connects teams, suppliers and stakeholders.
Example:
A fast-fashion brand known for launching weekly collections used Centric PLM to cut development time in half. When a sudden material shortage threatened a product line, the platform enabled designers to quickly adjust specifications, collaborate with alternative suppliers and keep production on schedule, all within days.
How Centric PLM Helps:
With tools that digitize workflows and enable real-time collaboration, Centric PLM ensures that every team member is aligned, regardless of location. Its flexibility supports agile adjustments to designs, materials, or production schedules, empowering brands to respond to disruptions without delays.
5. Leverage Data for Informed Pricing and Profitability Strategies
Price elasticity (how demand for a product changes with price fluctuations), is a critical factor in navigating uncertainty. Understanding this dynamic helps brands determine whether to absorb cost increases or pass them on to consumers. Centric Software solutions integrate pricing analysis tools that guide such decisions.
Example:
An international footwear brand faced rising material costs due to currency fluctuations. Using Centric tools, they analyzed price elasticity for their product lines. For high-demand products with low elasticity, the brand adjusted prices slightly, while for highly substitutable items, they absorbed costs to maintain competitiveness. This strategic approach preserved both customer loyalty and profitability.
How Centric Solutions Can Help:
By linking cost data to pricing strategies, solutions from Centric Software allow brands to simulate various scenarios and make data-backed decisions. The platform’s integration of pricing, margin and market trend data ensures that every pricing adjustment aligns with overarching business goals.
Building a Resilient Future with Centric Software
In an era defined by volatility, the ability to adapt is no longer optional — it’s a business imperative. The Centric solution portfolio equips fashion brands with the tools they need to navigate uncertainty, offering end-to-end visibility, agility and control. From dynamic cost modeling and supplier optimization to demand forecasting and agile collaboration, Centric empowers brands to turn challenges into opportunities.
Key Takeaways: Why Centric Is Your Strategic Advantage
- Proactive Adaptability: Quickly respond to tariff changes, supply chain disruptions and shifting market conditions.
- Sustainability Alignment: Meet evolving consumer expectations and regulatory demands while maintaining profitability.
- Strategic Decision-Making: Leverage integrated data to make informed choices about sourcing, pricing and production.
With Centric Software as a partner, fashion brands can face the future with confidence, no matter what uncertainties lie ahead, whether it’s tariffs, supply chain challenges or shifting consumer behaviors. By investing in technology today, brands can safeguard their operations and position themselves not just to survive but to thrive in an unpredictable world.