How AI and machine Learning can optimise garment production

There has been much talk about Artificial Intelligence (AI) and machine learning (ML) in recent times. At times these tools have been a source of controversy, with some concerned they will lead to job losses. Some people have even said they should be regulated – or banned.

For now, however, it would seem they are here to stay so my own view is that we must embrace them or risk being left behind.

But what are they? AI and ML are transforming industries worldwide, and the textile sector is no exception. These technologies could be particularly beneficial for Bangladeshi garment manufacturers, but they are not yet being deployed to any meaningful degree at present. That needs to change.

By utilising AI and ML, domestic garment manufacturers could significantly enhance demand forecasting accuracy, reduce excess inventory, and optimise production schedules.

As well as helping them to maintain their competitive edge in an increasingly dynamic market, these tools could also have sustainability benefits by cutting down on waste, in line with the requirements of fashion brands and retailers.

For Bangladeshi garment manufacturers, AI and ML offer a myriad of advantages. One of the primary benefits is improved demand forecasting. Traditional forecasting methods often rely on historical sales data and are limited by their inability to adapt quickly to market changes. AI and ML algorithms, however, can process vast amounts of data from various sources, including sales records, market trends, social media activity, and even economic indicators.

This data-driven approach can enable more accurate predictions of future demand by identifying patterns and trends that might be overlooked by human analysts. For instance, AI can analyze how different demographic groups respond to marketing campaigns or product launches, providing insights that help manufacturers align their production with actual market demand.

AI and ML also enable real-time analytics, a major upgrade from static data reliance. This capability allows manufacturers to adjust their forecasts based on the latest market information, ensuring they can respond swiftly to changes in customer behavior. Real-time data analysis means manufacturers can reduce the lag between data collection and decision-making, which is crucial for staying ahead in the fast-paced fashion industry. This agility is especially important for Bangladeshi manufacturers competing on a global scale, where the ability to quickly adapt to new trends can make a substantial difference to a company’s competitive edge.

Reducing excess inventory is another critical advantage of using AI and ML. Excess inventory not only ties up capital but also incurs storage costs and risks markdowns, which can erode profit margins. AI and ML can provide precise inventory management solutions by accurately forecasting demand and ensuring that manufacturers produce only the necessary amount of each product. This precision minimizes the likelihood of overproduction and helps maintain optimal inventory levels. Dynamic replenishment systems, powered by AI, can further enhance inventory management. These systems adjust inventory levels based on real-time sales data and demand forecasts, automatically reordering stock when inventory falls below a certain threshold. This approach ensures popular items are always available while reducing excess stock, in the process optimizing inventory turnover and reducing carrying costs.

AI and ML also play a crucial role in optimizing production schedules. Adaptive production planning, enabled by these technologies, allows for continuous adjustment of manufacturing schedules based on real-time demand forecasts and inventory levels. This flexibility is essential for the textile industry, where demand can fluctuate significantly from season to season. By aligning production rates with current market needs, manufacturers can reduce the risk of overproduction and underproduction.

Additionally, AI can synchronize various components of the supply chain, from raw material procurement to finished goods distribution, ensuring all parts are aligned with the production schedule. This synchronization reduces lead times, improves overall efficiency, and allows manufacturers to respond quickly to changes in demand.

Resource optimization is another area where AI can make a major impact. AI can schedule production runs to maximize the utilization of machinery and labor, minimize downtime, and reduce waste. This optimization enhances efficiency and lowers production costs, giving manufacturers a competitive edge. For example, AI can predict maintenance needs for machinery, allowing for timely interventions that prevent unexpected breakdowns and production delays.

Many fashion brands and retailers are already successfully integrating AI and ML in their operations, and it is time for garment manufacturers to follow suit. Zara, the Spanish fashion retailer, uses AI and ML for demand forecasting and inventory management. By using sales data and market trends, Zara has been able to identify which products are in demand and adjust its production and inventory levels accordingly. This agility allows Zara to bring new designs to market rapidly and reduce excess inventory. The company continues to invest heavily in this area.

Similarly, H&M uses AI-driven algorithms to optimize its supply chain operations. These algorithms analyze vast amounts of data to predict demand accurately, ensuring the right products are available at the right time and place. By optimizing inventory levels and production schedules, H&M has been able to reduce costs and improve customer satisfaction.

In fact, when one looks right across the fashion space, inventory levels have in the main been better managed in recent years. Use of AI and ML are playing an important role in this.

In short, I believe Bangladeshi garment manufacturers, adopting AI and ML technologies can lead to significant improvements in efficiency, cost reduction, and competitiveness. By enhancing demand forecasting accuracy, reducing excess inventory, and optimizing production schedules, these technologies enable manufacturers to respond more effectively to market changes and consumer demands.

As the global textile industry continues to evolve, embracing AI and ML will be crucial for Bangladeshi manufacturers aiming to maintain their position as leaders in the apparel market.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).