Blog October 9, 2025

How Do Apparel Supply Chains Work?

It’s More Than Just Fashion

By: Jeremy Rotenberg

Updated: October 9, 2025 | 3 Minute Read

The t-shirt you plan to buy for next summer’s vacation was likely designed last summer and is being manufactured right now. We rarely think about the complex journey our clothes take before they reach our closets, but the reality is that apparel supply chains are some of the most intricate and challenging logistics networks in the world. Unlike the steady, predictable flow of groceries, the apparel industry operates on a volatile “boom and bust” cycle driven by seasons, trends, and long-range forecasting.

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The Long Road to Your Closet

The journey begins long before a garment is made. Fashion trends that appear in mass-market retail for summer 2026 were likely inspired by high-fashion runway shows from as far back as 2024. This long planning cycle—often 12 months or more—means companies are making huge bets on inventory long before they know what will be a bestseller.

This lengthy lead time is necessary due to global complexity. The fabric, buttons, zippers, and thread for a single jacket might come from several different countries before being assembled in a factory far from North America. That finished product then has to travel by sea, land in a port, and arrive at a distribution center months before the season even begins.

The “Boom and Bust” of Warehouse Operations

The seasonal nature of fashion creates intense peaks and valleys in warehouse activity. The typical lifecycle for a season’s inventory follows three main steps:

  1. Inventory Buildup: For months, warehouses receive containers from overseas manufacturers, steadily building up a massive inventory for the upcoming season. This is similar to how frozen turkeys are stockpiled for months ahead of Thanksgiving—you can’t produce everything at the last minute.
  2. The “Boom”: Mass Distribution: When the season officially flips, a huge portion of this inventory—often up to 70%—is shipped out to retail stores all at once. This is how a store can look like a spring collection on a Sunday and be completely transformed into a summer collection on Monday morning.
  3. Replenishment and Reaction: The remaining 30% of inventory is held back at the warehouse. This stock is used to replenish stores based on what’s selling well, allowing brands to react to regional trends. For example, they can send more of a popular item to New York if it isn’t selling as well in Ohio.

Designing for Extremes

The unique demands of apparel supply chains require specialized warehouse design.

  • Sizing for the Peak: Winter clothing like coats and boots takes up significantly more space than summer clothing like shorts and dresses. Warehouses must be designed to handle the bulkiest winter inventory, which means that during the summer season, the facility can appear underutilized.
  • Handling Two Different Worlds: Garments are stored in two primary ways: folded in boxes (“flat pack”) or on hangers (“garments on hangers,” or GOH). While flat pack goods are handled like any other boxed product, GOH systems require specialized equipment like industrial-scale monorails, similar to what you’d see at a dry cleaner.

From year-long planning cycles to the challenges of e-commerce returns, apparel supply chains are a masterclass in managing complexity, forecasting risk, and executing with precision. The next time you pick up a sweater, take a moment to appreciate the incredible global journey it took to get to you.


The consultants at LIDD work with organizations across the supply chain to build more efficient, sustainable, and resilient operations. If you’re looking to turn your business into a powerhouse of operational excellence, reach out to LIDD today.

 

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