Wednesday, 24 July 2013

How to Manage the Fashion Logistics Pipeline

In many businesses pipelines are managed with the creation of accurate forecasts. When it comes to fashion the market is extremely volatile. It is hard to forecast as demand changes quickly, trends move on and evolve so the products often have very short life cycles. All of these factors mean it is very hard to apply the forecasting management technique into fashion retail.

Those in the fashion industry need to find ways of reducing the amount that they rely on forecasting and focus on reducing the lead times as much as possible. By reducing the forecasting horizon you can effectively reduce the risks of making mistakes that can be costly for any company. The period needs to include the time it takes to design the goods, make them and ship them out. The three critical lead times are:

  • Time to Market – The time it takes for a business to see an opportunity and create a product to sell
  • Time to Serve – How long it takes to get an order and deliver the goods quickly to keep the customer happy
  • Time to React – How long you can adjust in response to a volatile demand. You need to either increase the flow or reduce it depending on demand.
By focusing on these core elements and reducing the time it takes to complete each step, you increase the chances of keeping up and surviving in fashion retail. Return to learn more about each element in fashion logistics lead times.

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