Monday, 15 July 2013

New Supply Chains in Fashion Part Three

When looking at the new supply chains in fashion logistics it’s necessary to pay attention to the downstream as it has a direct influence on the chains.

The costs of having garments in store are high. Therefore it is necessary for stores to have low stock amounts of the goods that are turned around quickly. Any items that are not selling or which have become outdated need to be removed quickly. This along with difficulties at the SKU level is why a distribution center is now more important than ever.

Reverse logistics therefore plays a high role in fashion. In the past reverse logistics would only take place at the end of a season but because trends move so quickly they now take place all year round.  Reverse logistics in poor selling garments often involves moving the items to new geographic locations where they can sell better – this is often a preferred system as it doesn't involve reducing prices in a bid to sell poor performing stock.

The supply chain in fashion has to be controlled from manufacture to the consumer. This requires proper tools, excellent management and real time inventory management in each section of the supply chain.

No comments:

Post a Comment