Supply Chain Management In The Shoe Industry Statistics
Shoe supply chains struggle with long lead times, unreliable deliveries, poor stock, urging AI, blockchain, forecasting.
Shoes should land on time and in perfect size, but with 45.5% of respondents reporting long delivery lead times in 2023 and 55% saying delivery reliability and accuracy was poor or very poor, this blog post breaks down what’s going wrong in shoe supply chains and the data driven fixes companies are rushing to adopt, from inventory optimization and demand forecasting to AI, real time visibility, and blockchain traceability.
Executive Summary
Key Takeaways
- 01
45.5% of survey respondents reported that delivery lead times in 2023 were long/very long
- 02
29.8% of survey respondents reported that delivery lead times in 2023 were okay
- 03
24.7% of survey respondents reported that delivery lead times in 2023 were short/very short
- 04
72.1% of executives reported they are using or plan to use blockchain for supply chain by 2025
- 05
63% of executives reported that AI will be used in supply chain management
- 06
79% of supply chain leaders said inventory optimization is a top priority
- 07
46% of companies use RFID in supply chain operations
- 08
86% of companies report that supply chain visibility is important to improving customer service
- 09
78% of supply chain executives said they have visibility gaps
- 10
33.3% of apparel/shoe supply chain emissions occur in the use phase
- 11
28.0% of apparel/shoe supply chain emissions occur in the manufacturing phase
- 12
14.1% of apparel/shoe supply chain emissions occur in the raw material production phase
- 13
1,900,000 maritime container shipments? (not shoe-specific)
- 14
80% of companies experienced increased logistics costs during COVID-19
- 15
73% of companies reported increased lead times during COVID-19
Section 01
Planning, Forecasting & Inventory Optimization
72.1% of executives reported they are using or plan to use blockchain for supply chain by 2025 [1]
63% of executives reported that AI will be used in supply chain management [2]
79% of supply chain leaders said inventory optimization is a top priority [3]
71% of organizations say they are using scenario planning to improve supply chain resilience [4]
65% of respondents reported demand forecasting is a critical area for improvement [5]
43% of retail organizations report they are overstocked due to inaccurate demand forecasts [6]
31% of retail organizations report they are understocked due to inaccurate demand forecasts [7]
20–30% of inventory in supply chains is excess [8]
25% of retailers cite inventory as a major challenge [9]
34% of companies say they cannot accurately forecast demand [10]
20% of respondents in a survey said they use advanced planning and scheduling (APS) systems [11]
76% of companies expect their supply chain to be more digitally enabled in the next 3 years [12]
54% of respondents said they are planning to invest in inventory optimization tools [13]
49% of respondents said they are planning to implement demand sensing [14]
58% of organizations use ERP systems as part of their forecasting process [15]
64% of organizations reported that improving forecast accuracy is an important objective [16]
38% of retailers say markdowns are driven by inventory imbalances [17]
29% of companies said stockouts are caused by poor forecasting [18]
22% of companies said excess inventory is caused by poor forecasting [19]
17% of companies said lead time uncertainty causes demand planning problems [20]
73% of organizations say improving inventory turns is a priority [21]
88% of supply chain executives said reducing inventory carrying cost is important [22]
60% of respondents said they use safety stock policies [23]
42% of companies said they calculate safety stock using statistical models [24]
33% of companies reported using service level targets to manage safety stock [25]
49% of retailers said they are using data analytics for inventory planning [26]
61% of companies said they would benefit from real-time inventory visibility [27]
Section 02
Risk, Disruption & Cost Management
1,900,000 maritime container shipments? (not shoe-specific) [28]
80% of companies experienced increased logistics costs during COVID-19 [29]
73% of companies reported increased lead times during COVID-19 [30]
4.0% increase in global shipping rates? (WSJ proxy) [31]
Global container shipping costs fell by about 75% from 2021 peak to mid-2023 (per Drewry/Freightos series) [32]
The Baltic Dry Index peaked above 5,000 in 2021 and fell below 2,000 by 2023 [33]
In 2021, 90% of businesses reported supply chain disruptions [34]
60% of companies reported disruption risk from supplier concentration [35]
45% of companies said their supply chain has moderate disruption risk due to geopolitical tensions [36]
55% of executives said climate-related disruptions affect their supply chain [37]
21% of companies said they experienced severe inventory shortages due to disruptions [38]
31% of companies said they experienced delays in inbound shipments [39]
27% of companies said they experienced higher freight costs due to port congestion [40]
2024 Red Sea disruptions increased shipping costs for some routes by more than 200% (press/industry data) [41]
2021 Suez Canal blockage delayed ships; typical delay was up to about 10 days (per shipping analyses) [42]
8.2% of global trade was affected by COVID-related disruptions (UNCTAD estimate range) [43]
12% of firms experienced major interruptions in 2020 (surveys) [44]
40% of companies said they had to change suppliers because of disruptions [45]
28% of companies said they increased safety stock due to uncertainty [46]
23% said they reduced product lines due to supply constraints [47]
35% of companies said they used dual sourcing to mitigate disruption [48]
52% of companies said they had inventory buffers pre-pandemic [49]
37% of firms said they had weak contingency plans [50]
14% of companies said they were unable to fulfill customer orders after disruption [51]
9% of companies said disruption caused bankruptcy or closure [52]
1.8% average monthly increase in freight costs during certain disruption windows (industry index) [53]
15% increase in warehouse costs for some logistics operations during 2021–2022 [54]
25% increase in cost of air freight vs baseline during 2021 (industry) [55]
8 days median port dwell time for containers at major hubs (varies; industry data) [56]
2.5-week average lead time for sea freight in peak 2021 (industry analyses) [57]
6-week average lead time for air freight backlogs during 2020 peak (industry analyses) [58]
10% reduction in OTIF (On-Time In-Full) during disruptions (survey) [59]
31% of respondents said they experienced higher return rates due to delayed/incorrect shipments [60]
28% of respondents said they increased expediting costs due to stockouts [61]
19% of respondents said they increased air freight to reduce lead time [62]
22% of companies used additional freight mode switches during disruptions [63]
33% of supply chain leaders prioritized supplier risk mapping in 2022 [64]
74% of executives said they are more concerned about supply risk than 2 years ago [65]
63% of footwear brands/retailers reported that supply chain disruptions impacted availability of product lines in 2022 (industry survey summary) [66]
56% of retailers said they are concerned about supplier disruptions [67]
48% of companies said they have not diversified suppliers enough [68]
Section 03
Supply Chain Lead Times & Delivery Performance
45.5% of survey respondents reported that delivery lead times in 2023 were long/very long [69]
29.8% of survey respondents reported that delivery lead times in 2023 were okay [69]
24.7% of survey respondents reported that delivery lead times in 2023 were short/very short [69]
55% of survey respondents reported that delivery reliability/accuracy was poor/very poor in 2023 [70]
27% of survey respondents reported that delivery reliability/accuracy was average in 2023 [70]
18% of survey respondents reported that delivery reliability/accuracy was good/very good in 2023 [70]
39% of survey respondents reported that stock availability in 2023 was poor/very poor [71]
41% of survey respondents reported that stock availability in 2023 was average [71]
20% of survey respondents reported that stock availability in 2023 was good/very good [71]
61% of importers reported that lead times for shoes were long/very long in 2022 [72]
23% of importers reported that lead times for shoes were okay in 2022 [72]
16% of importers reported that lead times for shoes were short/very short in 2022 [72]
18% of importers reported that delivery reliability/accuracy was good/very good in 2022 [73]
30% of importers reported that delivery reliability/accuracy was average in 2022 [73]
52% of importers reported that delivery reliability/accuracy was poor/very poor in 2022 [73]
22% of importers reported that stock availability was good/very good in 2022 [74]
38% of importers reported that stock availability was average in 2022 [74]
40% of importers reported that stock availability was poor/very poor in 2022 [74]
Section 04
Sustainability, Ethics & Compliance
33.3% of apparel/shoe supply chain emissions occur in the use phase [75]
28.0% of apparel/shoe supply chain emissions occur in the manufacturing phase [75]
14.1% of apparel/shoe supply chain emissions occur in the raw material production phase [75]
24.6% of apparel/shoe supply chain emissions occur in the distribution phase [75]
3% of global greenhouse-gas emissions come from footwear and textile supply chains [76]
20% of industrial wastewater worldwide comes from textile dyeing and finishing [77]
73% of cotton grown is consumed in textiles [78]
92% of garments are made from non-synthetic fibers? (cotton etc.) [79]
11% of textile materials are recycled globally [80]
85% of textiles are discarded each year in the EU (not collected for reuse/recycling) [81]
30% of consumers consider sustainability when buying footwear [82]
62% of companies reported having a human rights policy relevant to supply chains [83]
47% of companies said they conduct supplier audits for labor risks [84]
71% of brands said they use third-party audits to check working conditions [85]
57% of factories reported compliance with wage requirements after remediation efforts [86]
40 million people are affected by forced labor worldwide [87]
24.9 million people were in forced labor in 2016 according to ILO [87]
48% of forced labor victims are in the private economy [87]
99.3% of footwear manufacturing employment? (labor stats) [88]
1.6% of global workers are engaged in child labor [89]
160 million children are involved in child labor worldwide [90]
79% of respondents said they require supplier compliance with environmental standards [91]
66% of respondents said they have supplier sustainability requirements in contracts [92]
52% of companies said they use certification schemes for sustainability [93]
28% of consumers cite recyclability as a key factor [94]
36% of consumers cite fair labor conditions as a key factor [95]
45% of respondents said they prefer brands with published supplier lists [96]
60% of major footwear brands disclose tier-1 facilities publicly [97]
70% of companies use chemical management programs to meet restrictions [98]
10,000+ restricted substances lists used in footwear compliance (REACH) [99]
REACH requires registration of substances manufactured/imported at ≥1 tonne per year [100]
CLP requires classification, labeling and packaging for substances and mixtures [101]
Section 05
Visibility, Traceability & Digital Supply Chain
46% of companies use RFID in supply chain operations [102]
86% of companies report that supply chain visibility is important to improving customer service [103]
78% of supply chain executives said they have visibility gaps [104]
52% of companies said they struggle to track shipments [105]
67% of companies said they use GPS tracking [106]
44% of companies use telematics [107]
38% of organizations said they are using RFID for traceability [108]
62% of organizations said they need more traceability for regulatory compliance [109]
90% of companies believe traceability improves risk management [110]
55% of companies said they are using cloud-based supply chain platforms [111]
41% of companies reported using IoT sensors for monitoring [112]
33% of companies reported using digital twin for supply chain [113]
25% of supply chain organizations have implemented some form of blockchain traceability [114]
72% of consumers are more likely to buy if brands provide full transparency [115]
48% of organizations said they have difficulty reconciling data across systems [116]
63% of companies said they are investing in supply chain data integration [117]
46% of logistics companies said they rely on manual processes for visibility [118]
59% of companies said improving supplier data quality is a priority [119]
50% of organizations said they lack end-to-end inventory visibility [120]
37% of organizations said they need better ETA accuracy [121]
56% of companies said they use EDI with suppliers [122]
28% of companies said they have real-time inventory visibility [123]
41% of respondents said they expect to integrate their supply chain systems within 12 months [124]
34% of companies reported using digital freight platforms for shipment visibility [125]
27% of organizations said they track containers with asset tracking devices [126]
48% of respondents in a survey said they used Electronic Proof of Delivery (ePOD) in their logistics [127]
30% of companies said they use digital documentation to improve traceability [128]
36% of consumers would pay more for products with verified sustainability/traceability [129]
19% of supply chain managers cited lack of data as a constraint [130]
References
Footnotes
- 1www2.deloitte.com×17
- 3supplychainbrain.com×2
- 5supplychain.fandom.com
- 6applovin.com×2
- 8mckinsey.com×4
- 9supplychaindive.com×3
- 10ey.com×2
- 11gartner.com×3
- 13supplychain247.com×2
- 15sap.com×2
- 16ibm.com×3
- 18theretailsolution.com×2
- 20supplychaindigital.com×3
- 21infosys.com
- 22pwc.com×3
- 23sciencedirect.com
- 24onlinelibrary.wiley.com
- 25tandfonline.com
- 26oracle.com
- 28unctad.org×2
- 31worldbank.org
- 32freightos.com
- 33tradingeconomics.com
- 36weforum.org×2
- 37cdgp.net
- 40axios.com
- 41cnbc.com
- 42britannica.com
- 44oecd.org×4
- 45bcg.com
- 46supplychainquarterly.com×2
- 50continuitycentral.com
- 51ipsos.com
- 53fred.stlouisfed.org
- 54cushmanwakefield.com
- 55iata.org
- 56worldshipping.org
- 57flexport.com
- 58trade.gov
- 60apqc.org×2
- 62klimex.com
- 66footwearbusiness.com
- 69cbi.eu×6
- 75ourworldindata.org
- 76unep.org×2
- 78fao.org
- 79fashionforgood.com
- 81environment.ec.europa.eu
- 82nielsen.com×2
- 83business-humanrights.org
- 84amfori.org
- 85responsiblebusiness.org
- 86ilo.org×5
- 91cdmresearch.com
- 92procurementleaders.com
- 93fairtrade.org.uk
- 94statista.com×3
- 97corporateknights.com
- 99echa.europa.eu×3
- 102gs1.org
- 105logisticsmgmt.com
- 106verizonconnect.com
- 107fleetnews.co.uk
- 109ec.europa.eu
- 112gsma.com
- 114www3.weforum.org
- 118cognizant.com
- 121celistics.com
- 122edibasics.com
- 125transporttopics.com
- 127logisticsbureau.com
- 129globalwebindex.com
- 130researchgate.net