AI, Demand Planning are Top Priorities for Fashion Supply Chains

CGS has released its 10th annual BlueCherry State of Supply Chain & Technology Report, offering a look at how fashion supply chains have changed over the past decade and what’s coming next. The 2025 report highlights two major focus areas for apparel and retail brands this year: using AI to make smarter decisions and improving merchandise demand planning.

More than 300 executives from fashion, footwear, accessories, and consumer lifestyle brands contributed to the report, which shows just how much has shifted in the last 10 years.

According to the findings, 91% of companies say AI insights are now critical to their growth. Another 77% say demand planning tools are a top priority in 2025 — the highest level of interest in the past four years. Executives say they’re focused on better planning to avoid surprises in the supply chain.

The report also shows a sharp rise in nearshoring and reshoring strategies. Forty-five percent of respondents are moving production closer to home, compared to just 14% on average over the past four years.

Despite major changes in consumer habits and the economy, some strategies have remained unchanged. Customer acquisition, e-commerce, and making operations more digital have been top priorities every year for the past decade.

BlueCherry also asked about key concerns. More than three-quarters of respondents (76%) said economic and political uncertainty is a serious or moderate challenge. That’s up from 68% in 2024. Meanwhile, 85% of leaders say visibility is still one of the biggest supply chain problems they face.

“Our annual State of Supply Chain & Technology Report has helped fashion and apparel brands navigate a decade dominated by tech-driven disruption,” said Paul Magel, President of the Business Applications and Technology Outsourcing Division at CGS. “Our findings underscore the importance of better demand