Friday, 19 July 2013

The Lead Time Gap in Fashion Industries

The fashion industry has to deal with the problem known as the lead time gap.  This is the time it takes to source all materials, produce ideas and designs, convert them into products and get them onto the market place. The lead time is often much longer than the customer is comfortable with. The lead time gap is the time between the order cycle from the consumer time and the logistics pipeline.

Long lead time gaps cause losses in revenue and often results in large mark downs on price tags being made at the retail level. These forced markdowns account for more than 14% of the total losses in retail. As a result the fashion logistics services have had to adapt in order to assist the fashion industry with reducing the losses they make and speeding up the lead time with quick response times.

The lead time gap can only be shortened if the fashion industry is able to move quickly and jump on trends as they happen – turn around the production of products and ship them out quickly. Without fashion logistics this speed couldn’t be maintained and the job of satisfying customer demands would be impossible.

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