Is Supply Chain Visibility Impacting Brands’ Inventory Ops?

A lack of visibility into supply chains is deeply impacting how businesses approach new technologies, ultimately leading to a drop in warehouse operations.

2025 started with great strides in warehouse management and inventory operations, but there also were reports of customers showing disappointment and frustration with some of the leading retailers across the globe. Many of these giants have cited errors in warehouse operations as the primary hurdle behind these failures. 

These incidents raise the question of identifying what really causes these customer experience damages. Not only do these lead to customer churn, they also indicate the current state of inventory operations – which is inefficient and untracked. 

In fact, latest research by Avery Dennison, a global materials science and digital identification solutions company, shows that many fashion brands are operating in the dark, leaving themselves open to waste, inefficiency, delayed shipping, lost sales, and shrinkage.

The report, titled Boosting Margins – The Power of Enhanced Fashion Supply Chain Visibility, presents findings from a survey of 250 senior fashion retail supply chain leaders in the UK and US.

Lack of Item-Level Visibility Hampers Operational Efficiency

Here’s an overview of the research: while half of those surveyed (50%) say their company has ‘visibility into most items’, a quarter (25%) say they 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% categorize it as ‘efficient and responsive’.

Six-in-ten (61%) of the smaller companies, those with annual revenue between $1m and $9.99m, feel they have full visibility. Surprisingly, larger companies appear to be impacted the most by a lack of visibility, with only four-in-ten (44%) of firms with annual revenue above $1bn believing they have a complete view. 

Full visibility was found to be most challenging for medium-sized retailers with only one-in-ten (11%) of the $250m-$499m 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.”

ALSO READ: CX Fatigue is Real, Try Smarter Engagement

Supply Chains and Traceability

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, almost a third (30%) cited last-minute changes to garment labelling, rising to 42% for firms in the $500m and $999.99m 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 (65%) 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 maximize supply chain improvement. This rises to 72% of vice presidents, the most senior executives questioned.

Glover concludes, “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.” 

ALSO READ: 35 Must-Read Books on Customer Experience