upply Chain
Efficient supply chains are a crucial element within fast fashion. The selection of a merchandising vendor is a key part in the process. Inefficiency primarily occurs when suppliers can't respond quickly enough, and clothing ends up bottlenecked and in back stock. Two kinds of supply chains exist, agile and lean. In an agile supply chain the principle characteristics include the sharing of information and technology. The collaboration results in the reduction in the amount of stock in the megastores. A lean supply chain is characterized as the correct appropriation of the commodity for the product. The combination of the two supply chains is called "leagile".
Efficient supply chains are a crucial element within fast fashion. The selection of a merchandising vendor is a key part in the process. Inefficiency primarily occurs when suppliers can't respond quickly enough, and clothing ends up bottlenecked and in back stock. Two kinds of supply chains exist, agile and lean. In an agile supply chain the principle characteristics include the sharing of information and technology. The collaboration results in the reduction in the amount of stock in the megastores. A lean supply chain is characterized as the correct appropriation of the commodity for the product. The combination of the two supply chains is called "leagile".
Vendor Relationships
The companies in the fast fashion market also utilize a range of relationships with the suppliers. The product is first classified as "core" or "fashion". Suppliers close to the market are used for products that are produced in the middle of a season, meaning trendy, "fashion" items. In comparison, long-distance suppliers are utilized for cheap, "core" items that are used in collections every season and have a stable forecast.
Internal Relationships
Productive internal relationships within the fast fashion companies are as important as the company's relationships with external suppliers, especially when it comes to the company's buyers. Traditionally with a "supermarket" market the buying is divided into multi-functional departments. The buying team uses the bottom-up approach when trend information is involved, meaning the information is only shared with the company's fifteen top suppliers. On the other hand, information about future aims, and strategies of production are shared downward within the buyer hierarchy so the team can consider lower cost production options. The buyers also interact closely with merchandising and design departments of the company because of the buyer's focus on style and color. The buyer must also consult with the overall design team to understand the cohesion between trend forecasting and consumer's wants. The close relationships result in flexibility within the company and an accelerated response speed to the demands of the market.
No comments:
Post a Comment