LEGAL ISSUES &

REQUIREMENTS
IN FASHION
SUPPLY CHAIN

A CA SE S TU D Y
WHAT IS SUPPLY CHAIN IN
FASHION?
 Supply chain refers to the process via
which a business is conducted.
 The manner in which the supply chain is
managed is termed as supply chain
management (SCM)
 SCM is the most volatile and dynamic
aspect of any industry as there are multiple
elements that are involved in the entire
process. This Photo by Unknown Author is
licensed under CC BY-SA-NC
ESSENTIAL ELEMENTS OF SCM

Marketing

Logistics Payment

Manufacturing

Quality Packaging

Procurement
 PROCUREMENT OF RAW
MATERIAL
The legal issues concerning Procurement of Raw Materials are listed
below.

International Market
Delay Quality Workers Strike Custom Duty
Dispute Inflation
 QUALITY CONTROL
 What Is Quality Of A Garment?
A Product's Quality Is Determined By Comparing
It To A Comparative Item Or Prototype And
Quality Control Is A Method Used In Factories To
Ensure The Highest Quality Is Maintained At All
Times During The Production Of Goods.
 
 Quality Control Procedures
Inspecting Materials For Flaws And Errors
Making Sure That Colours Are Accurate
Clean And Robust Seam And Stitching
Size Standards Compliance With Apparel Industry
Assessing The End Product's Strength
 Legal Regulations
1. Australia: The "Modern Slavery Law" becomes
effective in December 2018. Structure, activities,
and supply chains of a business must be discussed
in these modern slavery declarations, as well as
any steps taken to address the dangers of modern
slavery and the success of those steps.
2. France: It is against the law for fashion
merchants and sellers to throw away, burn, or
otherwise dispose of unsold clothing since 2019.
They are also obligated to collect unsold clothing
and are not permitted to dispose of it in regular
landfills.
 MANUFACTURING
 Manufacturing includes altering the raw
material into goods that can be further
worked upon to convert the same into a
better version of product that when
introduced in the market shall seek
humongous success and deliver profits to
the creator.
 It’s a very flexible part and therefore does
not require stringent rules to be abided by
the people involved in the process rather it
can be formulated by the personnel
concerned as per the requirements of
precision needed to create a desired product.
 Legal Requirements:-
1. Providing humane working conditions
2. Not employing minors and women in
dangerous working premise.
3. Providing the minimum wage to workmen
as per the prevailing statutory provisions.
4. Ensuring that environment is not degraded
by procedures used
5. Providing safety gears in order to ensure
utmost safety of the workmen and all the
equipment and machinery be regularly
checked and serviced.
 PACKAGING
 Packaging covers the process to design,
evaluate and produce the package.
 Labels are like the identity cards of the
logistics and helps in tracking of the same. It
also provides various information about the
product to the customers like its price,
direction to use, ingredients use etc.
 Legal requirements :-
1. Verify that the product details are presented
truthfully and clearly;
2. To safeguard the contents;
3. To make sure that the material used for
packaging does not have any negative effect
on the product;
4. To safeguard the customers from false
remarks;
5. Support the communication of the product
contents;
6. Encourage environmental awareness.
 PAYMENTS
 Supply Guarantee Deposit Payments
1. In exchange for a deposit that includes interest,
the clothing manufacturer guarantees to the
fashion store that it will deliver the item on
schedule.
2. In exchange, the clothes manufacturer wants a set
minimum order quantity in the contract (MOQ).
3. We find that the SGDP system can synchronise
scores for the fashion supply chain in the case of a
disruptive incident.
4. From the POV of the retailer, the manufacturer,
and the complete supply chain, with uniformly
and normally distributed wants, further deduce
the value of supply chain coordination under
SGDP.
 B2B Payments In Supply Chain
1. Many of the biggest issues could be resolved by
digitalizing B2B payments.
2. For instance, Fashinza in the US, it will be
essential to understand the unique challenges
encountered by US business rivals.
3. Achieving supply chain openness through
digitization may boost effectiveness and resilience.
4. When the Covid-19 outbreak first surfaced, Nike
was able to relocate products intended for brick-
and-mortar shops right away to e-commerce
fulfilment centres in China thanks to its digitalized
supply chain.
 DELIVERY AND LOGISTICS
 Legal Issues:-
 The main role of logistics in supply chain
management is primarily to increase the 1. A few legal issues that plague this
arrangement range from misaligned global
overall value of each delivery.
laws, disclosure and customs, security and data
protection, irregular paperwork, insurance,
accidents and dissatisfaction.
 Logistics in the fashion business must be
2. Legal issues in this area are not just a stain
adaptable to new trends and seasonal highs on your reputation, but a severe hindrance to
the operations of the business.
and lows
 MARKETING AND PROMOTION
 Marketing is the process of promoting a Legal Issues & Solutions:-
product whereas Promotion is the process of
communicating the product offering with 1. Misrepresentation in terms of quality and
the consumers. impact of product. This creates distrust amongst
the consumers which fails the entire purpose of
 Marketing and Promotion play a pivotal role marketing i.e., increase in selling power of the
as they manage the most volatile element of product by developing a stronger customer
a business i.e., Consumers. base.
2. Consumers do not expect that marketers stop
 Marketing & promotion increase the advertising or restrict catering to their
efficiency of a business by ensuring preferences they merely request sincerity.
optimum demand & supply of the product & 3. Accurate representation of products &
also minimize the risks by increasing the dialogue with the consumers can solve this
brand value. issue.