As we head into 2026, the supply chain conversation in apparel isn’t academic anymore. It’s urgent. After a year dominated by tariffs, stubborn inventory issues and growing pressure from investors, it’s getting harder to rely on the old formula of squeezing first cost and forecasting demand a year and a half in advance. That model is under real strain. It’s time to take a hard look at whether fashion can finally move beyond a purely transactional, price-driven mindset and build a system that’s actually more profitable and resilient.
In this HGI Now video, Brad Ballentine, CEO of supply chain solutions company MAS ACME USA; James Theuerkauf, Co-Founder & CEO of Syrup Tech, which is now part of Anaplan, which offers an AI-based scenario planning and analysis platform; and John Thorbeck, Chairman of strategy firm Chainge Capital have a candid conversation about what’s irrevocably broken in the current fashion model and, more importantly, how to fix it.
“The traditional apparel system is still trying to guess what the demand is going to be, you know, in some cases, 12 to 18 months out. And it’s kind of like trying to forecast the weather for next year’s vacation… So then trade volatility and geopolitical issues just adds another dimension to it,” Ballantine said. “Essentially we need to set up systems that allow us to delay final SKU decisions or final ship to location decisions until the very last minute.”
This conversation builds on the ideas first laid out in the report “Under the Banyan Tree,” which examined how buyer–supplier relationships fractured during Covid and why they need to be rebuilt around smarter processes and better data, not just tougher negotiations. The core point is pretty direct is excess inventory isn’t just a symptom of the problem; it is the problem. Yes, shorter lead times help. But the bigger opportunity is reducing the amount of capital tied up in goods by delaying decisions, positioning materials strategically and aligning suppliers and brands around shared outcomes instead of seasonal cost targets.
“The trend cycles are becoming so fast that if you have the kind of order cycles and supply chain timelines that Brad referred to of six to 12 months, you’re just left out of the business of trend. And if you’re not in the trend business, you’re not in fashion,” Thorbeck said.
At the same time, AI and connected planning platforms are starting to make it possible to link demand signals, operational decisions and financial performance in a much more integrated way. For executives dealing with slow growth, trade volatility and new platform competitors, the real question isn’t whether change is needed. It’s how deep that change has to go.
For those struggling to understand where to start with AI, Theuerkauf said, “I would look at which processes are you currently doing in an Excel spreadsheet or which decisions are using LY [last year] over LLY [last last year] and use that as a starting point to figure out how can you upgrade your technology stack — and particularly, where could AI be really powerful in helping you make those decisions.”
Here, HGI founder Edward Hertzman leads a discussion about postponement, the true meaning of collaboration, investor expectations and whether legacy players can evolve fast enough — or whether a new generation of lean, tech-enabled brands will end up reshaping the industry for them. Watch now.
