Resilience, Regulation and Robotics: Changing the Fashion Supply Chain for 2026
The fashion supply chain in 2026 will no longer be defined solely by speed and costs, but rather by its resilience, precision and compliance with increasing regulatory standards. The prevailing operational reality is one of volatility, driven by geopolitical turmoil, trade tariffs and climate-related shocks. Executives cite responses to trade disruptions and rising tariffs as the most significant issue shaping the industry in the coming year. This environment requires a fundamental shift in strategy that transforms the supply chain from a reactive cost factor into a proactive, technology-driven competitive advantage.
Digital backbone ensures operational precision
The cornerstone of a future-proof fashion supply chain is a connected digital backbone. Fragmented data blocks true transparency and hinders effective ESG reporting and rapid decision-making. By connecting enterprise resource planning (ERP), product lifecycle management (PLM), procurement, production and logistics into a unified view, brands can unlock the full potential of artificial intelligence. According to McKinsey’s State of Fashion report, more than 35 percent of fashion and luxury executives are already using AI in key operational areas – a clear signal that planning is moving from hindsight to foresight. AI-powered planning allows brands to:
This technological integration is visible across the entire value chain, from design to final delivery. In logistics German provider DHL Supply Chain is accelerating its AI strategy, in English through a partnership with AI startup HappyRobot. This collaboration introduces AI agents to automate high-volume communications, handling hundreds of thousands of emails and millions of voice minutes annually for critical workflows such as scheduling and driver follow-up calls. Sally Miller, chief information officer at DHL Supply Chain, explained that integrating AI agents “promotes greater process efficiencies for customers while making operational roles more engaging and rewarding for employees by automating repetitive and time-consuming tasks.”
Similarly, Netherlands-based outlet platform Otrium uses AI both in its warehouse logistics and for generative content creation. Co-founder Milan Daniels noted that implementing robotics and AI in the warehouse reduced the workforce by seventy percent and delivered huge efficiency gains, bringing the company closer to profitability. Otrium also uses generative AI to cost-effectively create model photos for the five million items of remaining inventory it receives annually. This improves product presentation and conversion rates where professional photography was previously unprofitable.
Procurement options and nearshoring
Concentrating sourcing networks in too few regions is a major vulnerability, especially as trade rules and tariffs change. According to Paul Magel of CGS, nearshoring and multi-sourcing have evolved from a trend to key resilience strategies.
Effective procurement in 2026 relies on geographically balanced networks and close collaboration between planning and sourcing, supported by a unified digital backbone. This optionality allows brands to avoid hasty, expensive policy changes that squeeze margins.
This change is actively demonstrated by the Spanish fashion group Tendam. The company operates a network powered by its new, highly automated logistics center in Illescas, in EnglishSpain, as well as a location in Mexico and its physical stores that act as “mini-hubs”. The Illescas center, equipped with Dematic automation solutions, processes 85 percent of all online orders and has the capacity to scale its operations 30 to 50 percent beyond current capabilities. Manel Jiménez, Chief Operating Officer of Tendam, explained that the integration of digital inventory from the stores and warehouse in Illescas allows an internal “order management system” to decide in real time the most optimal way to process each online order. As an example: an order from Women’secret for collection in a branch will be prepared directly in the branch, if stock is available, instead of in the center in Illescas.
The trend towards a more local and manageable economy is also supported by Dr. Natascha van der Velden, a Dutch expert in sustainable textiles and life cycle analysis (LCA). Dr. van der Velden is a firm believer in a more local economy, explaining: “The shorter and more manageable the supply chain, the more control you have,” which can even lead to cost savings. She also advises companies to “do less but better” and produce smarter, pointing to on-demand production systems that closely align material inventory, demand and production.
Compliance is turning into a competitive advantage
Compliance, particularly with regard to environmental, social and governance (ESG) metrics, has transformed from a mere reporting requirement to a structural advantage. New mandates, including the European Union’s Digital Product Passport (DPP) and the Corporate Sustainability Reporting Directive (CSRD), require product-level traceability that goes beyond simple supplier documentation. This transparency eliminates blind spots, strengthens supplier responsibility and is resilience in practice.
The Spanish multinational Mango, for example, is expanding its collaboration with the Netherlands-based company TextileGenesis, a specialist in traceability solutions. The Spanish company began testing solutions in 2023 and has already tracked over six thousand tons of sustainable fibers and more than 40 million finished product units. By formalizing the partnership, Mango is implementing a comprehensive set of digital tools, including the ‘Fiber-to-Retail’ module for tracing sustainable fibers and the ‘Supply Chain Discovery’ module for backward traceability from the end product to the material origin.
Amit Guatam, founder and CEO of TextileGenesis, explained that achieving transparency is a “significant challenge for brands like Mango, given the complexity of their global supply chains.” However, this type of verifiable transparency is necessary to meet rising consumer expectations – with 66 percent of customers actively incorporating sustainability into their purchasing decisions – and to reduce regulatory risks.
A focus on ethical behavior in the supply chain is also crucial. Amnesty International has called on global textile companies to protect labor rights in their supply chains in India, Bangladesh, Pakistan and Sri Lanka, detailing “widespread violations of freedom of association in the garment industry.” This pressure, coupled with the weakening of the EU Sustainability Due Diligence Directive, highlights the need for brands to pursue an active sourcing strategy that rewards suppliers who respect freedom of association.
Looking to the future, Japanese clothing giant Fast Retailing Co., Ltd. increased its goal of reducing greenhouse gas emissions in its supply chain from 20 percent to 30 percent by the end of fiscal year 2030. Koji Yanai, senior executive officer of Fast Retailing Group, noted that this increase was possible because the company was “ahead of schedule” due to close collaboration with manufacturing partners. This includes initiatives such as sourcing wool from designated Australian farms with test audit programs for animal welfare and environmental standards. In a complex year marked by volatility, fashion supply chain winners in 2026 will be those that invest in transparency, AI-driven planning and structural ESG integration to maintain agility and accelerate with confidence.
This 2026 outlook is based on more than 20 articles, interviews and reports published on FashionUnited. It was written using AI.
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This article was created using digital tools translated.
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