Abstract:
The fast fashion industry in Sri Lanka has grown rapidly driven by shifting consumer
trends and increasing demand for affordable trendy apparel. Despite this growth,
effective inventory management remains a critical challenge, directly influencing
operational efficiency, profitability, and sustainability. This study examines the key
challenges faced by fast fashion businesses in managing inventory within the Sri
Lankan context. A mixed-methods approach was employed, combining surveys of
retail operators with in-depth interviews with supply chain managers. Accordingly,
47 respondents from fast fashion industry in the Kandy District were interviewed.
The findings reveal that inaccurate demand forecasting, prolonged lead times,
technological gaps, and logistical inefficiencies are major obstacles to effective
inventory control. Moreover, evolving consumer expectations and the rise of e commerce further intensify these challenges, necessitating agile and responsive
inventory practices. The study highlights the importance of adopting advanced
forecasting techniques, integrating digital solutions, and streamlining supply chain
processes to optimize inventory management. Addressing these challenges will
enable fast fashion retailers in Sri Lanka to reduce operational costs, improve service
quality, and enhance competitiveness in the global market. This research contributes
to the literature on inventory management in emerging markets and provides practical
insights for industry practitioners.
