Monday, 29 July 2013

Fashion Logistics’ Time to React


The ability to meet customer demand is important in any market. You need to be able to provide the goods as and when they are required. Time to market and time to serve adds problems to the time the companies are able to react and these needed to be shortened in order to increase the time it takes your company to react.

The challenge in fashion is to be able to spot the trends and discover what the real demands are. When it comes to supply chains orders are key, the batch orders that are placed are created by the short lifecycle forecasts and the speed of inventory replenishment and this can cause companies to lose sight of the final market.  Inventory can be misleading when it comes to demand because of the multiple inventories on the shelf all the way to the suppliers and wholesalers the demands are lost and it is not possible to create a system that will alter with the customer.

Lead time gaps are the difference between the time it takes to source the materials, make products and get them to the customer in a suitable time scale. Forecasting was used in the past but wrong inventory orders can be placed resulting in lost revenue. Lost revenues, often in the form of forced mark downs, result in more than 14% of retail losses. Need help reducing your lead time gaps? Email us on inquiries@royaleinternational.com

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