Wednesday, 10 July 2013

New Supply Chain Models in Fashion

It is necessary for the fashion industry to pay close attention to their own supply chain capabilities. The movement of clothing and accessories is fast paced and it needs to be able to adapt quickly to the latest trends in the market. The changes constantly have to be monitored and catered for; failing to do so can lead to the decline of a business. 

Over the next few days we shall be looking at these changes that are affecting supply chain models:

1.   Unstable demand – unpredictability of future sales causes issues with the stock keeping unit level. These are caused by the fast changes in trends and the increased number of SKUs in the brands themselves.
2.   Globalisation and off shoring has made the world smaller opening up brand new markets all over the world. Therefore production locations and distribution is necessary for any firm looking to expand their market.
3.   The industry as a whole has needed to become more flexible than ever, causing a rise in the use of third party logistics companies. These logistics providers provide methods of being more flexible in all parts of the supply chain.
4.    Garments are now becoming very outdated very quickly which again causes problems at SKU levels.

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