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Sourcing in fashion 2026
Guessing what consumers will want nine months from now is practically impossible. The brands winning right now are not the ones with the cheapest product, they are the ones with the least amount of deadstock sitting in their warehouses.
We are seeing a massive shift away from blind bulk orders and towards agile, small-batch production. But you cannot simply email your factory, cut your order volume by 80%, and expect them to maintain your pricing. Making small batches work requires a completely different operational playbook.
Rule 1: Stop looking at unit cost in a vacuum When you switch to small batches, your initial unit cost will go up. There is no way around it. Factories have setup times, and smaller runs mean less efficiency on the sewing floor.
However, looking only at the Free On Board (FOB) price is a mistake. You have to factor in the cost of what you don't sell. With the EU’s strict regulations against destroying unsold apparel now fully in play, holding onto deadstock is a financial liability.
If you buy 1,000 units at €10 and sell them all at full price, you are in a much better financial position than buying 5,000 units at €6 and having to heavily discount or store half of them. Small batch production is about buying shallow to test the market, reading the early sales data, and only reordering the proven winners.
Rule 2: Book capacity, not specifics Factories historically prefer bulkl orders because they create unpredictable gaps in their production lines. If you want them to support a small-batch strategy, you have to offer them stability in return.
Instead of negotiating specific purchase orders months in advance, smart brands are shifting to capacity booking. As highlighted in a recent Sourcing Journal analysis on agile manufacturing, you commit to buying a certain number of hours or lines on the factory floor for the season, rather than committing to a specific style.
The factory receives a financial guarantee, offering you the flexibility to finalize production details weeks before sewing. This allows you to test small runs of, for example, three trouser styles, identify the most popular one online, and quickly use your reserved capacity to restock the winner.
Rule 3: You cannot run this on manual spreadsheets Shifting from bulk purchasing to a small batch "test and react" model demands speed and real-time collaboration. Manual processes—like three-week spreadsheet updates, lab dip approvals, and email-based reorders—kill this model, as market trends pass before goods arrive.
Small batches increase administrative complexity (e.g., more purchase orders), which tools like Excel cannot handle, overwhelming buyers.
Success hinges on sourcing teams and suppliers operating in a single, real-time system. When a batch sells out, reorders must be instant, with the factory immediately confirming capacity and updating lead times via a unified portal.
Ultimately, replacing large bulk orders with smaller, frequent ones requires establishing a rapid, collaborative supply chain that genuinely responds to market demand.
