AAFA Executive Summit 2025: A Glimpse into the Future of Adaptability and Agility in Supply Chains

The AAFA Executive Summit has long served as a cornerstone event where apparel and footwear industry leaders gather to tackle timely challenges and share forward-thinking strategies. This year’s summit, held in Washington, D.C., was no exception—centering on a theme that couldn’t be more relevant: adaptability and agility in the face of global trade disruption and evolving consumer expectations.

The Rising Importance of Adaptability and Agility

“Adaptability and agility” echoed throughout the summit—not just as buzzwords but as the new foundation of supply chain strategy. Gone are the days when static sourcing models and cost-driven decisions were enough. Those models make sense only when supply chains are stable and predictable. But in today’s trade-policy whiplash, brands are realizing that real-time flexibility is critical.

A keynote by Tapestry’s CEO painted a clear picture of this shift: the company is moving beyond pure efficiency to prioritize resilience. This means rethinking long-standing assumptions about sourcing and making room for margin trade-offs in exchange for greater continuity and risk mitigation.

The unpredictability of U.S. trade agreements—especially the U.S.-Mexico-Canada Agreement (USMCA)—has only added fuel to the fire. With executive actions constantly reshaping what seemed like stable deals, fashion brands are pivoting toward long-term sourcing strategies that enable them to make agile and proactive—not merely reactive—decisions.

Inspectorio’s Perspective: Reshaping Risk into Opportunity

At the heart of this transformation is a redefinition of risk itself. Inspectorio and other thought leaders at the summit emphasized that risk should not be feared—but understood, measured, and transformed into opportunity through performance, transparency, and data.

Strategic partnerships—not merely transactional relationships–with factories, logistics providers, and digital platforms are now non-negotiable. Businesses are looking deeper—not just at the countries where they source, but at factory-level ownership, ethical practices, and real-time operational integrity. Countries like the Dominican Republic stood out as promising nearshoring options, while India and Vietnam remained strong contenders—albeit with new layers of tariff-related complexity.

Balancing Sustainability with Operational Realities

Sustainability continues to matter, but the conversation has matured. Tapestry introduced the SPI framework—Style, Performance, Impact—to describe the balancing act brands must master. While cost pressures and trade instability have made sustainability harder to prioritize, companies are integrating it into broader agility strategies rather than treating it as a standalone initiative.

Notably, sessions on Extended Producer Responsibility (EPR) and circular supply chains saw less engagement compared to discussions on compliance and cost management. This shift doesn’t signal a retreat from sustainability—it reflects a reframing. In today’s climate, agility is the vehicle through which impact goals are more realistically achieved. And leaders recognize that the opportunity to improve their non-financial impact depends on remaining financially sustainable.

The Reality of Sourcing Diversification

Another hard truth discussed at AAFA: having one or two contingency sourcing options is no longer enough. The new normal requires robust, multi-layered diversification strategies. When your backup to the backup becomes subject to tariffs or labor scrutiny, the only true defense is a highly agile sourcing model.

Forced labor remains an ongoing issue—diversifying out of China hasn’t eliminated scrutiny, as Vietnam and Indonesia now face the risk of similar scrutiny. It’s not just about geography anymore; it’s about trust, transparency, and choosing partners that uphold rigorous standards.

From Tariff Shock to Strategic Action

Tariffs were arguably the hottest topic at this year’s summit. Many attendees shared concerns about the industry being “caught in the crossfire” of political decision-making. Trade wars are no longer temporary hurdles—they’re strategic roadblocks, stalling M&A efforts, delaying brand evolution, and driving up costs.

T-shirts moving from $18 to $25 due to tariff hikes may seem like a small shift, but when scaled across supply chains, the financial impact becomes seismic. Beyond pricing, the ripple effect includes dampened consumer demand, reduced profit margins, and even workforce reductions. This underscores the need for platforms that empower brands to pivot sourcing and production swiftly—adapting to new trade realities without sacrificing competitiveness.

AAFA CEO Steve Lamar’s call for “smart tariff approaches” encouraged the industry to look beyond crisis management. Promoting domestic production, negotiating temporary tariffs, and engaging in sustainable policy dialogues are now seen as essential to creating long-term stability.

The Path Forward: A Collective Push for Agility

The collective sentiment from the summit was clear: no company is immune from disruption, but those that embed agility into their DNA will lead the next era of growth. Inspectorio remains committed to helping organizations not only navigate complexity but thrive within it—transforming data into decision-making power and risk into readiness.

As the global landscape shifts, success won’t hinge on avoiding change, but on owning it. The brands that will endure are the ones who treat adaptability not as a response, but as a strategy—building supply chains that are dynamic, ethical, and ready for anything.