Friday, 12 July 2013

New Supply Chain Models in Fashion Part Two

Manufacture to Customer

All fashion brands that have a good level of control over their supply chain using fashion logistics are seeing the biggest growth rates.  To do this is it essential to be able to have complete control of the customer and the manufacturer. Third party logistics companies can help any brand achieve this level of control.  Those firms that work this method of operating into their everyday business will be the most successful and find themselves in much stronger positions compared to those that only focus on one area of the supply chain.

As a result of the complete management of the supply chain it is possible to:

•     Shorten lead times – the transition from manufacture to delivery is now tighter than ever. This is good news in fashion logistics as the uncertain SKUs can be tailored for.
•     The use of a double supply chain is on the increase. There are two supply chains, one driven by the cost which is used for basic products that are frequently required. The second chain is more trends focused and concentrates of short production times, flexibility and speed – a must for fashion.
•     Quality control is an aspect that has to be paid attention to when lead times are so short. Outsourcing the quality control or managing it in-house will ensure that despite the speed of the manufacturing the end client will receive a good quality product. Due to globalisation the quality control is now often done at the point of manufacture as problems can be dealt with quickly.
•     Logistics operations are also increasingly being arranged at the point of origin of the products. For example fashion brands in America and Europe are producing their goods in China. In the past these goods would be sent to distribution centres but now the operations take place in China who deal with quality control, value added services and distribution to ot her countries.

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