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How resilient supply chains will define fashion’s winners in 2026

For years, fashion and apparel brands have measured supply-chain performance by two metrics: speed and cost. But as we head into 2026, the brands that outperform won’t be the fastest or the cheapest. They’ll be the ones built to absorb whatever comes next. As one of my favorite quotes from Rocky Balboa puts it: “It’s not about how hard you hit. It’s about how hard you can get hit and keep moving forward.”

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Written by Paul F. Magel, President, Computer Generated Solutions, Inc. (CGS).

And here’s the shift many still miss: resilience isn’t at odds with speed or cost efficiency. It’s what makes both possible. When your data is fragmented, your sourcing network brittle, or your compliance foundation shaky, you’re not set up to move fast or operate efficiently. But when those fundamentals are strong, you gain the precision and clarity that make true agility achievable.

The stakes are rising quickly. According to the World Economic Forum’s latest Global Risks Report, which ranks disruptions to systemically important supply chains among the world’s top short-term risks, the message heading into 2026 is clear: volatility isn’t a one-off event anymore. It’s the operating reality.

The risk landscape fashion needs to navigate in 2026

The industry isn’t dealing with one disruption. It’s managing the collision of several at once. The biggest vulnerabilities heading into 2026 include:

  • fragmented, outdated data that blocks true visibility and clean ESG reporting;
  • sourcing networks concentrated in too few regions as tariffs and trade rules shift;
  • rising compliance demands — including the EU’s Digital Product Passport (DPP), Corporate Sustainability Reporting Directive (CSRD), and tightening U.S. climate-disclosure frameworks;
  • climate-driven shocks affecting materials, freight routes, and inventory positions; and,
  • geopolitical volatility creating new cost and sourcing pressures.
  • Too many brands still try to simply “move faster” when these pressures hit. The leaders are building systems that make them less exposed in the first place.

    The three pillars of a future-proof fashion supply chain

    1. Precision starts with connected data and AI

    You can’t move fast on bad data or run efficiently on guesswork, and you can’t build resilience without the ability to see and predict where risk is forming.

    It starts with a connected digital backbone linking enterprise resource planning (ERP), product lifecycle management (PLM), sourcing, production, and logistics into a single, trusted view. Without that foundation, AI can’t deliver meaningful insights -- and decisions remain reactive instead of precise.

    According to McKinsey’s new 2026 State of Fashion report, more than 35% of fashion and luxury executives are already using AI in key operational areas. It’s a clear signal that visibility and decision-making are shifting from hindsight to foresight. Brands investing in clean, connected data are unlocking the full value of AI-driven planning, using it to:

  • model sourcing scenarios before costs spike;
  • anticipate demand shifts and adjust production with confidence;
  • avoid overproduction and margin erosion;
  • simulate tariff, climate, and geopolitical variables in seconds; and,
  • connect sustainability and compliance goals to real operational decisions.
  • This isn’t about predicting every disruption. It’s about using AI to stay ready for all of them.

    2. Sourcing optionality: the agility advantage for 2026

    Nearshoring and multi-sourcing have moved well past trend status. They’re now core resilience strategies that let brands navigate disruption without scrambling. In 2026, the most effective sourcing strategies will rely on:

  • geographically balanced networks that avoid over-concentration;
  • partners who operate on shared, real-time data and aligned performance metrics;
  • scenario modeling that stress-tests tariff, cost, and lead-time impacts before choices are locked; and,
  • tight collaboration between planning and sourcing, powered by a unified digital backbone.
  • The real power of optionality is how it streamlines decisions. When brands have multiple viable paths, they avoid the rushed, expensive pivots that drain margin and momentum. Optionality becomes the engine behind both agility and cost discipline.

    3. ESG: from compliance to competitive advantage

    Compliance used to be a reporting task. In 2026, it’s becoming one of the most powerful structural advantages a brand can have.

    With DPP, CSRD, and tightening sustainability rules, brands now need product-level traceability, not just supplier documentation. That transparency isn’t bureaucracy. It’s resilience in action. It eliminates blind spots, strengthens supplier accountability, and accelerates decision-making when conditions change. ESG-ready brands will be able to:

  • verify materials and supplier data in real time;
  • meet rising customer expectations for transparency;
  • reduce operational and regulatory risk before it becomes costly; and,
  • build deeper trust across partners, regulators, and consumers.
  • The companies that weave ESG into their resilience strategy -- not as a regulatory chore -- will be the ones that move faster, adapt sooner, and operate with far greater clarity in 2026 and beyond.

    What it takes to lead in 2026

    The reality heading into 2026 is simple: disruption isn’t the exception. It’s the environment. The brands that come out ahead will be the ones building supply chains that can absorb the next shock, adapt to it, and keep moving.

    Resilience delivers that edge, turning data into clarity, clarity into precision, and precision into the kind of speed and efficiency that actually holds up under pressure.

    This is the new playbook: build systems and partnerships that flex when the world doesn’t. Invest in the visibility and AI-driven planning tools that give you choices, not bottlenecks. And treat ESG not as a mandate, but as a structural advantage that sharpens how decisions get made.

    The companies that embrace this mindset now won’t just weather 2026; they’ll lead it. Because in a year defined by volatility, the strongest performers will be the ones prepared to bend, adapt, and accelerate with confidence.


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